senate Bill S2607D

Signed by Governor

Amends various provisions of law relating to implementing the education, labor, housing, and family assistance budget for the 2013-2014 state fiscal year

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Bill Status


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

  • 22 / Jan / 2013
    • REFERRED TO FINANCE
  • 13 / Feb / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 13 / Feb / 2013
    • PRINT NUMBER 2607A
  • 22 / Feb / 2013
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 22 / Feb / 2013
    • PRINT NUMBER 2607B
  • 11 / Mar / 2013
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 11 / Mar / 2013
    • PRINT NUMBER 2607C
  • 24 / Mar / 2013
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 24 / Mar / 2013
    • PRINT NUMBER 2607D
  • 26 / Mar / 2013
    • ORDERED TO THIRD READING CAL.277
  • 27 / Mar / 2013
    • PASSED SENATE
  • 27 / Mar / 2013
    • DELIVERED TO ASSEMBLY
  • 27 / Mar / 2013
    • REFERRED TO WAYS AND MEANS
  • 28 / Mar / 2013
    • SUBSTITUTED FOR A3007D
  • 28 / Mar / 2013
    • ORDERED TO THIRD READING RULES CAL.46
  • 28 / Mar / 2013
    • MOTION TO AMEND LOST
  • 28 / Mar / 2013
    • MOTION TO AMEND LOST
  • 28 / Mar / 2013
    • PASSED ASSEMBLY
  • 28 / Mar / 2013
    • RETURNED TO SENATE
  • 29 / Mar / 2013
    • DELIVERED TO GOVERNOR
  • 29 / Mar / 2013
    • SIGNED CHAP.57

Summary

Amends various provisions of law relating to implementing the ELFA budget for the 2013-2014 state fiscal year; relates to school district eligibility for an increase in apportionment of school aid and implementation of standards for conducting annual professional performance reviews to determine teacher and principal effectiveness; amends the education law, in relation to contracts for excellence, school census in school districts, New York state school safety improvement teams, accountability of school districts, the financing of charter schools, annual professional performance review plans, apportionment of school aid, calculation of the gap elimination restoration amount, establishment of a community schools and extended learning time grant program, duties of school districts and the costs of certain tuition maintenance and transportation; amends the general municipal law, in relation to the employee benefit accrued liability reserve fund; amends the education law, in relation to transportation after 4 pm; amends chapter 121 of the laws of 1996 relating to authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to extending certain provisions; amends chapter 756 of the laws of 1992 relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to apportionment and reimbursement; and in relation to extending the expiration of certain provisions; amends chapter 169 of the laws of 1994 relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; amends chapter 82 of the laws of 1995, amending the education law and certain other laws relating to state aid to school districts and the appropriation of funds for the support of government; amends chapter 147 of the laws of 2001 amending the education law relating to conditional appointment of school district, charter school or BOCES employees; amends chapter 425 of the laws of 2002 amending the education law relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; amends chapter 101 of the laws of 2003 amending the education law relating to implementation of the No Child Left Behind Act of 2001, in relation to extending the expiration of certain provisions of such chapter; amends chapter 472 of the laws of 1998 amending the education law relating to the lease of school buses by school districts, in relation to extending the provisions of such chapter; relates to school bus driver training; relates to the support of public libraries; provides special apportionment for salary expenses; provides special apportionment for public pension expenses; relates to suballocation of certain education department accruals; relates to purchases by the city school district of Rochester; repeals subdivision 17 of section 1950 of the education law relating thereto; repeals section 3627 of the education law relating to transportation after 5 pm and provides for the repeal of certain provisions upon expiration thereof (Part A); amends the education law and the public authorities law, in relation to the acquisition, design, construction, reconstruction, rehabilitation, improvement and financing of dormitory facilities for the state university of New York (Part B); amends chapter 57 of the laws of 2005 amending the labor law and other laws implementing the state fiscal plan for the 2005-2006 state fiscal year, relating to the New York state higher education capital matching grant program for independent colleges, in relation to the New York state higher education matching grant program for independent colleges and the effectiveness thereof (Part C); amends the education law, in relation to establishing the Next Generation NY Job Linkage Program Act (Part D); amends the social services law, in relation to increasing the standards of monthly need for aged, blind and disabled persons living in the community (Part E); amends the executive law and the social services law, in relation to consolidating the youth development and delinquency prevention program and the special delinquency prevention program; and to repeal certain provisions of the executive law relating thereto; and providing for the repeal of such provisions upon expiration thereof (Part G); amends the real property tax law, in relation to providing for the registration of recipients of STAR exemptions, and eliminating waste, fraud and abuse in the STAR program and relating to the powers of the state board of real property tax services (Part J); utilizes reserves in the project pool insurance account of the mortgage insurance fund for various housing purposes (Part M); relates to the powers of the commissioner of labor and repeals subdivision 17 of section 100 of the economic development law relating to the operation of the state data center (Part N); increases unemployment insurance benefits and contributions, to entitlement and eligibility criteria, to work search requirements, to relieving employers of charges for separations caused by misconduct and voluntarily leaving employment without good cause, to reduction of benefits based on pensions and dismissal pay, to enhanced penalties, in relation to fraudulently obtained benefits and new penalties for employers who cause overpayments by failing to timely and accurately respond to information about claims, to approving employer shared work benefit plans, and to the interest assessment surcharge; amends chapter 62 of the laws of 2003, amending the state finance law and other laws relating to authorizing and directing the state comptroller to loan money to certain funds and accounts, in relation to the effectiveness thereof; repeals certain provisions of the labor law relating thereto; provides for the repeal of certain provisions upon expiration thereof (Part O); amends the labor law, in relation to the minimum wage and making technical corrections relating thereto (Part P); amends the racing, pari-mutuel wagering and breeding law, in relation to labor peace agreements (Part R); amends the education law, in relation to dental health certificates for students (Part S); amends the education law, in relation to the performance of medical services (Part T); amends the education law, in relation to creating the graduation, achievement and placement program (Part U); amends the education law, in relation to charges for non-resident students (Part V); amends the tax law, the state finance law and the executive law, in relation to gifts for honor and remembrance of veterans, the establishment of the veterans remembrance and cemetery maintenance and operation fund, repeals certain provisions of the executive law relating thereto (Part W); amends the public service law, in relation to strengthening the oversight and enforcement mechanisms of the Public Service Commission; amends the general business law, in relation to increasing fines for violations relating to the protection of underground facilities (Part X); relates to the repowering of existing power generation facilities (Part Y); amends the labor law, in relation to the self-employment assistance program; amends chapter 413 of the laws of 2003 amending the labor law relating to the self-employment assistance program and other matters, in relation to the effectiveness thereof (Part Z); amends chapter 420 of the laws of 2002 amending the education law relating to the profession of social work; amends chapter 676 of the laws of 2002 amending the education law relating to the practice of psychology; amends chapter 130 of the laws of 2010 amending the education law and other laws relating to the registration of entities providing certain professional services and the licensure of certain professions, in relation to reporting requirements and expiration dates; amends the education law, in relation to licensure of social workers and mental health counselors (Part AA); amends the retirement and social security law, in relation to stable pensions; amends the education law, in relation to a stable contribution option for participating educational employers (Part BB); relates to contracts for services and expenses of pay for success initiatives to improve program outcomes in the program areas of health care, early childhood development, childhood welfare and public safety (Part CC); amends the private housing finance law, in relation to establishing the rural and urban community investment fund program (Part DD); amends the state finance law, in relation to increasing state assistance to eligible cities and eligible municipalities in which a video lottery gaming facility is located (Part EE); amends the penal law, in relation to making technical changes to such law relating to licensing of firearms; amends chapter 1 of the laws of 2013 amending the criminal procedure law and other laws relating to suspension and revocation of firearms licenses, in relation to the effectiveness thereof (Part FF); amends the workers' compensation law, in relation to changing the composition of the board's practice committees and to permitting a single arbitrator process; amends the workers' compensation law, in relation to the collection of assessments for annual expenses and the investment of surplus or reserve; relates to the representation of funds, in relation to closing the fund for reopened cases; relates to administration expenses for the state insurance fund; relates to requiring self-insured municipal groups and county treasurers to provide certain financial information to the workers' compensation board; amends the workers' compensation law and the public authorities law, in relation to authorizing the workers' compensation board and the dormitory authority to enter into a self-insured bond financing agreement; amends the volunteer firefighters' benefit law and the volunteer ambulance workers' benefit law, in relation to the payment of benefits and to the assessment of expenses; amends the public officers law, in relation to indemnification of state officers and employees; repeals certain provisions of the workers' compensation law, the volunteer firefighters' benefit law and the volunteer ambulance workers' benefit law relating to assessments for expenses, and relating to the location of the workers' compensation board (Part GG); provides for the administration of certain funds and accounts related to the 2013-14 budget; authorizes certain payments and transfers; amends chapter 59 of the laws of 2012, relating to providing for administration of certain funds and accounts related to the 2013-2014 budget, in relation to the effectiveness thereof; amends the state finance law, in relation to school tax relief fund; amends chapter 60 of the laws of 2011, amending the state finance law relating to disbursements from the tribal-state compact revenue account to certain municipalities, in relation to the availability of moneys; amends the New York state medical care facilities finance agency act, in relation to the deposit of certain funds; amends the state finance law, in relation to the issuance of revenue bonds; amends the public authorities law, in relation to the number of directors required for approval of a resolution authorizing the issuance of bonds or notes; amends the New York state urban development corporation act, in relation to funding project costs for certain capital projects; amends chapter 61 of the laws of 2005, relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; amends chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; amends the private housing finance law, in relation to housing program bonds and notes; amends chapter 329 of the laws of 1991, amending the state fiance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; amends the public authorities law, in relation to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; amends chapter 61 of the laws of 2005, providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to issuance of bonds by the urban development corporation; amends the New York state urban development corporation act, in relation to projects for retention of professional football in western New York; amends the public authorities law, in relation to the cleaner, greener communities program; amends the state finance law, in relation to establishing the sales tax revenue bond tax fund and providing for the deposit of revenues therefrom, establishing the sales tax revenue bond financing program; amends the tax law, in relation to deposit and disposition of revenue; amends the state finance law, in relation to establishing the New York state storm recovery capital fund; amends the New York state urban development corporation act, in relation to authorizing the urban development corporation to issue bonds to fund project costs for the implementation of a NY-CUNY challenge grant program; amends chapter 260 of the laws of 2011 amending the education law and the New York state urban development corporation act relating to establishing components of the NY-SUNY 2020 challenge grant program, in relation to the effectiveness thereof; amends the public authorities law, in relation to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; amends chapter 81 of the laws of 2002, providing for the administration of certain funds and accounts related to the 2002-2003 budget, in relation to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; amends the public authorities law, in relation to financing of New York works transportation capital projects; provides for the repeal of certain provisions upon expiration thereof (Part HH).

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Bill Details

See Assembly Version of this Bill:
A3007D
Versions:
S2607
S2607A
S2607B
S2607C
S2607D
Legislative Cycle:
2013-2014
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 2607--D                                            A. 3007--D

                      S E N A T E - A S S E M B L Y

                            January 22, 2013
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and recommitted to said committee -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee  on  Ways  and  Means -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee --  again  reported  from
  said  committee  with  amendments,  ordered  reprinted  as amended and
  recommitted to said committee -- again reported  from  said  committee
  with  amendments, ordered reprinted as amended and recommitted to said
  committee

AN ACT in relation to school district eligibility  for  an  increase  in
  apportionment  of  school  aid  and  implementation  of  standards for
  conducting annual professional performance reviews to determine teach-
  er and  principal  effectiveness;  to  amend  the  education  law,  in
  relation   to  contracts  for  excellence,  school  census  in  school
  districts, New York state school safety  improvement  teams,  account-
  ability  of school districts, the financing of charter schools, annual
  professional performance review plans, apportionment  of  school  aid,
  calculation  of  the gap elimination restoration amount, establishment
  of a community schools  and  extended  learning  time  grant  program,
  duties  of  school  districts and the costs of certain tuition mainte-
  nance and transportation; to  amend  the  general  municipal  law,  in
  relation  to  the  employee benefit accrued liability reserve fund; to
  amend the education law, in relation to transportation after 4 pm;  to
  amend  chapter  121  of  the  laws of 1996 relating to authorizing the
  Roosevelt union free school district to finance deficits by the  issu-
  ance  of serial bonds, in relation to extending certain provisions; to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12572-09-3

S. 2607--D                          2                         A. 3007--D

  amend chapter 756 of the laws of 1992 relating to  funding  a  program
  for work force education conducted by the consortium for worker educa-
  tion in New York city, in relation to apportionment and reimbursement;
  and  in relation to extending the expiration of certain provisions; to
  amend chapter 169 of the laws of 1994 relating to  certain  provisions
  related  to  the  1994-95 state operations, aid to localities, capital
  projects and debt service budgets; to amend chapter 82 of the laws  of
  1995,  amending  the  education law and certain other laws relating to
  state aid to school districts and the appropriation of funds  for  the
  support of government; to amend chapter 147 of the laws of 2001 amend-
  ing  the  education  law relating to conditional appointment of school
  district, charter school or BOCES employees; to amend chapter  425  of
  the  laws of 2002 amending the education law relating to the provision
  of supplemental educational services,  attendance  at  a  safe  public
  school  and the suspension of pupils who bring a firearm to or possess
  a firearm at a school, to amend chapter 101 of the laws of 2003 amend-
  ing the education law relating to implementation of the No Child  Left
  Behind Act of 2001, in relation to extending the expiration of certain
  provisions  of such chapters; to amend chapter 472 of the laws of 1998
  amending the education law relating to the lease of  school  buses  by
  school  districts,  in  relation  to  extending the provisions of such
  chapter; in relation to school bus driver training; in relation to the
  support of public libraries;  to  provide  special  apportionment  for
  salary  expenses;  to provide special apportionment for public pension
  expenses; in relation to suballocation of certain education department
  accruals; in relation to purchases by  the  city  school  district  of
  Rochester;  to  repeal subdivision 17 of section 1950 of the education
  law relating thereto; and to repeal section 3627 of the education  law
  relating  to transportation after 5 pm and providing for the repeal of
  certain provisions upon expiration thereof  (Part  A);  to  amend  the
  education  law  and  the  public  authorities  law, in relation to the
  acquisition,  design,  construction,  reconstruction,  rehabilitation,
  improvement  and  financing  of  dormitory  facilities  for  the state
  university of New York (Part B); to amend chapter 57 of  the  laws  of
  2005  amending  the  labor  law  and other laws implementing the state
  fiscal plan for the 2005-2006 state fiscal year, relating to  the  New
  York  state  higher education capital matching grant program for inde-
  pendent colleges, in relation to the New York state  higher  education
  matching  grant program for independent colleges and the effectiveness
  thereof (Part C); to amend the education law, in  relation  to  estab-
  lishing  the  Next  Generation NY Job Linkage Program Act (Part D); to
  amend the social services law, in relation to increasing the standards
  of monthly need for aged, blind and disabled  persons  living  in  the
  community (Part E); intentionally omitted (Part F); to amend the exec-
  utive  law  and  the social services law, in relation to consolidating
  the youth development  and  delinquency  prevention  program  and  the
  special   delinquency   prevention  program;  and  to  repeal  certain
  provisions of the executive law relating thereto;  and  providing  for
  the repeal of such provisions upon expiration thereof (Part G); inten-
  tionally  omitted  (Part  H); intentionally omitted (Part I); to amend
  the real property tax law, in relation to providing for the  registra-
  tion  of  recipients  of STAR exemptions, and eliminating waste, fraud
  and abuse in the STAR program and relating to the powers of the  state
  board  of  real  property tax services (Part J); intentionally omitted
  (Part K); intentionally omitted (Part L); to utilize reserves  in  the
  project  pool  insurance  account  of  the mortgage insurance fund for

S. 2607--D                          3                         A. 3007--D

  various housing purposes (Part M); to amend the labor law, in relation
  to the powers of the commissioner of labor and to  repeal  subdivision
  17  of  section  100  of  the economic development law relating to the
  operation  of  the state data center (Part N); to amend the labor law,
  in relation to increasing unemployment insurance benefits and contrib-
  utions, to  entitlement  and  eligibility  criteria,  to  work  search
  requirements, to relieving employers of charges for separations caused
  by  misconduct  and voluntarily leaving employment without good cause,
  to reduction of benefits based  on  pensions  and  dismissal  pay,  to
  enhanced  penalties, in relation to fraudulently obtained benefits and
  new penalties for employers who cause overpayments by failing to time-
  ly and accurately respond to information about  claims,  to  approving
  employer  shared  work  benefit  plans, and to the interest assessment
  surcharge; and to amend chapter 62 of the laws of 2003,  amending  the
  state finance law and other laws relating to authorizing and directing
  the  state comptroller to loan money to certain funds and accounts, in
  relation to the effectiveness thereof; to repeal certain provisions of
  the labor law relating  thereto;  and  providing  for  the  repeal  of
  certain  provisions  upon  expiration  thereof  (Part O); to amend the
  labor law, in relation  to  the  minimum  wage  and  making  technical
  corrections relating thereto (Part P); intentionally omitted (Part Q);
  to  amend  the  racing,  pari-mutuel  wagering  and  breeding  law, in
  relation to labor peace agreements (Part R); to  amend  the  education
  law,  in relation to dental health certificates for students (Part S);
  to amend the education law, in relation to the performance of  medical
  services (Part T); to amend the education law, in relation to creating
  the  graduation,  achievement and placement program (Part U); to amend
  the education law, in relation to charges  for  non-resident  students
  (Part  V);  to amend the tax law, the state finance law and the execu-
  tive law, in relation to gifts for honor and remembrance of  veterans,
  the establishment of the veterans remembrance and cemetery maintenance
  and  operation fund, and to repeal certain provisions of the executive
  law relating thereto (Part W); to amend the  public  service  law,  in
  relation  to strengthening the oversight and enforcement mechanisms of
  the Public Service Commission; to amend the general business  law,  in
  relation to increasing fines for violations relating to the protection
  of  underground  facilities (Part X); in relation to the repowering of
  existing power generation facilities (Part Y); to amend the labor law,
  in relation to the self-employment assistance program;  and  to  amend
  chapter 413 of the laws of 2003 amending the labor law relating to the
  self-employment  assistance  program and other matters, in relation to
  the effectiveness thereof (Part Z); to amend chapter 420 of  the  laws
  of  2002  amending  the  education  law  relating to the profession of
  social work; chapter 676 of the laws of 2002  amending  the  education
  law relating to the practice of psychology; chapter 130 of the laws of
  2010  amending the education law and other laws relating to the regis-
  tration of entities providing certain professional  services  and  the
  licensure  of  certain  professions, in relation to reporting require-
  ments and expiration  dates;  and  to  amend  the  education  law,  in
  relation  to  licensure of social workers and mental health counselors
  (Part AA); to  amend  the  retirement  and  social  security  law,  in
  relation  to  stable  pensions;  and  to  amend  the education law, in
  relation to a stable contribution option for participating educational
  employers (Part  BB);  in  relation  to  contracts  for  services  and
  expenses of pay for success initiatives to improve program outcomes in
  the  program areas of health care, early childhood development, child-

S. 2607--D                          4                         A. 3007--D

  hood welfare and public safety (Part CC); to amend the private housing
  finance law, in relation to establishing the rural and urban community
  investment fund program (Part DD); to amend the state finance law,  in
  relation  to increasing state assistance to eligible cities and eligi-
  ble municipalities in which a video lottery gaming facility is located
  (Part EE); to amend the penal law, in  relation  to  making  technical
  changes  to  such  law relating to licensing of firearms; and to amend
  chapter 1 of the laws of 2013 amending the criminal procedure law  and
  other laws relating to suspension and revocation of firearms licenses,
  in relation to the effectiveness thereof (Part FF); to amend the work-
  ers'  compensation law, in relation to changing the composition of the
  board's practice committees and  to  permitting  a  single  arbitrator
  process;  to  amend  the workers' compensation law, in relation to the
  collection of assessments for annual expenses and  the  investment  of
  surplus  or  reserve;  in  relation to the representation of funds; in
  relation to closing the fund for reopened cases; in relation to admin-
  istration expenses for  the  state  insurance  fund;  in  relation  to
  requiring  self-insured  municipal  groups  and  county  treasurers to
  provide certain financial information  to  the  workers'  compensation
  board;  to amend the workers' compensation law and the public authori-
  ties law, in relation to authorizing the workers'  compensation  board
  and  the dormitory authority to enter into a self-insured bond financ-
  ing agreement; to amend the volunteer firefighters'  benefit  law  and
  the  volunteer  ambulance  workers'  benefit  law,  in relation to the
  payment of benefits and to the assessment of expenses;  to  amend  the
  public  officers law, in relation to indemnification of state officers
  and employees;  and  repealing  certain  provisions  of  the  workers'
  compensation  law,  the  volunteer  firefighters'  benefit law and the
  volunteer ambulance workers' benefit law relating to  assessments  for
  expenses,  and  relating  to the location of the workers' compensation
  board (Part GG); and to provide  for  the  administration  of  certain
  funds  and accounts related to the 2013-14 budget; authorizing certain
  payments and transfers; to amend chapter  59  of  the  laws  of  2012,
  relating to providing for administration of certain funds and accounts
  related  to  the  2013-2014  budget,  in relation to the effectiveness
  thereof; to amend the state finance law, in  relation  to  school  tax
  relief  fund;  to  amend  chapter 60 of the laws of 2011, amending the
  state finance law relating  to  disbursements  from  the  tribal-state
  compact  revenue account to certain municipalities, in relation to the
  availability of moneys; to amend  the  New  York  state  medical  care
  facilities  finance  agency act, in relation to the deposit of certain
  funds; to amend the state finance law, in relation to the issuance  of
  revenue bonds; to amend the public authorities law, in relation to the
  number  of directors required for approval of a resolution authorizing
  the issuance of bonds or notes; to amend  the  New  York  state  urban
  development  corporation act, in relation to funding project costs for
  certain capital projects; to amend chapter 61 of  the  laws  of  2005,
  relating  to  providing  for  the  administration of certain funds and
  accounts related to the 2005-2006 budget, in relation to the  Division
  of  Military  and Naval Affairs Capital Projects; to amend chapter 389
  of the laws of 1997, relating to the  financing  of  the  correctional
  facilities  improvement  fund and the youth facility improvement fund,
  in relation to the issuance of bonds; to  amend  the  private  housing
  finance  law, in relation to housing program bonds and notes; to amend
  chapter 329 of the laws of 1991, amending the state  finance  law  and
  other  laws relating to the establishment of the dedicated highway and

S. 2607--D                          5                         A. 3007--D

  bridge trust fund, in relation to the issuance of bonds; to amend  the
  public  authorities  law,  in  relation to courthouse improvements and
  training facilities, metropolitan transportation authority facilities,
  peace  bridge projects and issuance of bonds by the dormitory authori-
  ty; to amend chapter 61 of the laws of 2005, providing for the  admin-
  istration of certain funds and accounts related to the 2005-2006 budg-
  et,  in  relation  to  issuance  of  bonds  by  the  urban development
  corporation; to amend the New York state urban development corporation
  act, in relation to projects for retention of professional football in
  western New York; to amend the public authorities law, in relation  to
  the  cleaner,  greener communities program; to amend the state finance
  law, in relation to establishing the sales tax revenue bond  tax  fund
  and  providing for the deposit of revenues therefrom, establishing the
  sales tax revenue bond financing program; to amend  the  tax  law,  in
  relation  to  deposit  and  disposition of revenue; to amend the state
  finance law, in relation to establishing  the  New  York  state  storm
  recovery  capital  fund; to amend the New York state urban development
  corporation act, in relation  to  authorizing  the  urban  development
  corporation  to  issue bonds to fund project costs for the implementa-
  tion of a NY-CUNY challenge grant program; to amend chapter 260 of the
  laws of 2011 amending the education law and the New York  state  urban
  development corporation act relating to establishing components of the
  NY-SUNY 2020 challenge grant program, in relation to the effectiveness
  thereof;  to amend the public authorities law, in relation to dormito-
  ries at certain educational institutions  other  than  state  operated
  institutions and statutory or contract colleges under the jurisdiction
  of  the  state university of New York; to amend chapter 81 of the laws
  of 2002,  providing  for  the  administration  of  certain  funds  and
  accounts  related  to  the 2002-2003 budget, in relation to increasing
  the aggregate amount of bonds to be issued by the New York state urban
  development corporation; to  amend  the  public  authorities  law,  in
  relation  to  financing  of  New  York  works  transportation  capital
  projects; and providing for the  repeal  of  certain  provisions  upon
  expiration thereof (Part HH)

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

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2013-2014
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through HH. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

  Section 1.  1. As used in this section:
  a.  "base  year" shall mean the base year as defined in paragraph b of
subdivision 1 of section 3602 of the education law; and

S. 2607--D                          6                         A. 3007--D

  b. "current year" shall mean the current year as defined in  paragraph
a of subdivision 1 of section 3602 of the education law.
  2.  Notwithstanding  any  inconsistent  provision  of  law,  no school
district shall be eligible for an apportionment of general  support  for
public  schools  from the funds appropriated for the 2013-14 school year
and thereafter in excess  of  the  amount  apportioned  to  such  school
district  in  the  base  year  unless such school district has submitted
documentation that has been approved by the commissioner of education by
September 1 of the current year, demonstrating that it has fully  imple-
mented  the  standards and procedures for conducting annual professional
performance reviews of classroom teachers  and  building  principals  in
accordance  with the requirements of section 3012-c of the education law
and the commissioner of  education's  regulations.    Any  apportionment
withheld  pursuant  to  this section shall not occur prior to April 1 of
the current year and shall not have any effect on the base  year  calcu-
lation for use in the subsequent school year.
  3.  If any payments of ineligible amounts pursuant to subdivision 2 of
this section were made,  and  the  school  district  has  not  submitted
documentation that has been approved by the commissioner of education by
September  1  of the current school year demonstrating that it has fully
implemented the standards and procedures for conducting  annual  profes-
sional performance reviews of classroom teachers and building principals
in  accordance  with the requirements of section 3012-c of the education
law and the regulations of the  commissioner  of  education,  the  total
amount  of such payments shall be deducted by the commissioner of educa-
tion from future payments to the school district; provided further that,
if the amount of the deduction is greater than the sum  of  the  amounts
available for such deductions in the applicable school year, the remain-
der  of  the  deduction  shall be withheld from payments scheduled to be
made to the school district pursuant to section 3609-a of the  education
law for the subsequent school year.
  S  2.  Paragraph  e of subdivision 1 of section 211-d of the education
law, as amended by section 2 of part A of chapter  57  of  the  laws  of
2012, is amended to read as follows:
  e.  Notwithstanding  paragraphs  a and b of this subdivision, a school
district that submitted a contract for excellence for the  two  thousand
eight--two  thousand nine school year shall submit a contract for excel-
lence for the  two  thousand  nine--two  thousand  ten  school  year  in
conformity  with the requirements of subparagraph (vi) of paragraph a of
subdivision two of this section unless all schools in the  district  are
identified  as  in  good  standing  and  provided further that, a school
district that submitted a contract for excellence for the  two  thousand
nine--two  thousand  ten school year, unless all schools in the district
are identified as in good standing, shall submit a contract  for  excel-
lence for the two thousand eleven--two thousand twelve school year which
shall,  notwithstanding  the  requirements of subparagraph (vi) of para-
graph a of subdivision two of this section, provide for the  expenditure
of  an  amount  which  shall  be not less than the product of the amount
approved by the commissioner in the contract for excellence for the  two
thousand   nine--two   thousand  ten  school  year,  multiplied  by  the
district's gap elimination adjustment percentage  and  provided  further
that, a school district that submitted a contract for excellence for the
two thousand eleven--two thousand twelve school year, unless all schools
in  the  district  are  identified  as  in good standing, shall submit a
contract for excellence for the two thousand twelve--two thousand  thir-
teen  school  year  which  shall,  notwithstanding  the  requirements of

S. 2607--D                          7                         A. 3007--D

subparagraph (vi) of paragraph a of subdivision  two  of  this  section,
provide  for  the  expenditure of an amount which shall be not less than
the amount approved by the commissioner in the contract  for  excellence
for  the  two  thousand  eleven--two  thousand  twelve  school  year AND
PROVIDED FURTHER THAT, A SCHOOL DISTRICT THAT SUBMITTED A  CONTRACT  FOR
EXCELLENCE  FOR  THE  TWO  THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL
YEAR, UNLESS ALL SCHOOLS IN THE  DISTRICT  ARE  IDENTIFIED  AS  IN  GOOD
STANDING,  SHALL  SUBMIT  A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND
THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR WHICH SHALL, NOTWITHSTANDING
THE REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARAGRAPH A OF SUBDIVISION  TWO
OF THIS SECTION, PROVIDE FOR THE EXPENDITURE OF AN AMOUNT WHICH SHALL BE
NOT  LESS  THAN  THE AMOUNT APPROVED BY THE COMMISSIONER IN THE CONTRACT
FOR EXCELLENCE FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL
YEAR.  For purposes of this paragraph, the "gap  elimination  adjustment
percentage"  shall be calculated as the sum of one minus the quotient of
the sum of the school district's net gap elimination adjustment for  two
thousand  ten--two  thousand  eleven computed pursuant to chapter fifty-
three of the laws of two thousand ten,  making  appropriations  for  the
support  of  government,  plus  the  school  district's  gap elimination
adjustment for two thousand  eleven--two  thousand  twelve  as  computed
pursuant  to  chapter  fifty-three  of  the laws of two thousand eleven,
making appropriations for the support of the  local  assistance  budget,
including support for general support for public schools, divided by the
total aid for adjustment computed pursuant to chapter fifty-three of the
laws of two thousand eleven, making appropriations for the local assist-
ance  budget,  including support for general support for public schools.
Provided, further, that such amount shall be  expended  to  support  and
maintain  allowable programs and activities approved in the two thousand
nine--two thousand ten school year or to support new or expanded  allow-
able programs and activities in the current year.
  S  2-a.  Section  2215 of the education law is amended by adding a new
subdivision 17 to read as follows:
  17.  TO DETERMINE THE ADEQUACY AND APPROPRIATENESS OF  THE  FACILITIES
SPACE  AVAILABLE  TO  HOUSE SPECIAL EDUCATION PROGRAMS IN THE GEOGRAPHIC
AREA SERVED BY THE BOARD OF COOPERATIVE EDUCATIONAL SERVICES, CONSISTENT
WITH THE LEAST RESTRICTIVE ENVIRONMENT REQUIREMENT  AND  TO  ENSURE  THE
STABILITY  AND  CONTINUITY OF PROGRAM PLACEMENTS FOR STUDENTS WITH DISA-
BILITIES,  INCLUDING  PROCEDURES  THAT  ENSURE  THAT  SPECIAL  EDUCATION
PROGRAMS  AND  SERVICES  LOCATED  IN  APPROPRIATE FACILITIES WILL NOT BE
RELOCATED WITHOUT ADEQUATE CONSIDERATION OF THE NEEDS  OF  PARTICIPATING
STUDENTS WITH DISABILITIES.
  S  2-b.  Subdivision  17  of  section  1950  of  the  education law is
REPEALED.
  S 3. Section 3242 of the education law, as amended  by  section  2  of
subpart  F  of  part  C of chapter 97 of the laws of 2011, is amended to
read as follows:
  S 3242. School census in school districts. The trustees  or  board  of
education of every school district may cause a census to be taken of all
children  between  birth  and  eighteen years of age, including all such
facts and information as are required in  the  census  provided  for  in
section thirty-two hundred forty-one of this [chapter] PART. Such census
shall  be  prepared [annually] BIENNIALLY for children between ages five
and eighteen who are entitled  to  attend  the  public  schools  without
payment  of  tuition  in duplicate in their respective school districts,
and one copy thereof filed with the teacher or principal and  the  other
copy  filed  with  the  district  superintendent or superintendent on or

S. 2607--D                          8                         A. 3007--D

before the fifteenth day of October. For pre-school students from  birth
to  five  years of age, such census may be prepared and filed biennially
on or before the fifteenth day of October. Such census shall include the
reports  and  information  required  from  cities as provided in section
thirty-two hundred forty-one OF THIS PART.  All information regarding  a
student  with  a  disability  under the age of twenty-one years shall be
filed annually with the  superintendent  of  the  board  of  cooperative
educational services of which said district may be a part.
  S  3-a.  Section 2801-b of the education law, as added by chapter 1 of
the laws of 2013, is amended to read as follows:
  S 2801-b. New York state school safety improvement teams. The governor
shall establish New York state school safety  improvement  teams,  which
may be composed of representatives from the division of homeland securi-
ty and emergency services, the division of state police, the division of
criminal  justice  services,  and  the  department.  Such New York State
School Safety Improvement Teams shall review and  assess  school  safety
plans  submitted,  on  a  voluntary  basis, by school districts having a
population of less than one hundred  twenty-five  thousand  inhabitants,
boards of cooperative educational services, NONPUBLIC SCHOOLS, and coun-
ty  vocational  education and extension boards, and may make recommenda-
tions to improve such school safety plans.
  S 4. Subdivision 2 of section 2116-b of the education law, as added by
chapter 263 of the laws of 2005, is amended to read as follows:
  2. School districts of less than eight teachers, school districts with
actual general fund expenditures totaling less than five million dollars
in the previous school year, or school districts with actual  enrollment
of  less  than [three hundred] ONE THOUSAND FIVE HUNDRED students in the
previous school year shall be exempt from this requirement.  Any  school
district  claiming  such exemption shall annually certify to the commis-
sioner that such school district meets the  requirements  set  forth  in
this subdivision.
  S  5.  Paragraph (a) of subdivision 1 of section 2856 of the education
law, as amended by section 21 of part A of chapter 58  of  the  laws  of
2011, is amended to read as follows:
  (a)  The  enrollment  of  students  attending charter schools shall be
included in the enrollment, attendance, membership and,  if  applicable,
count  of students with disabilities of the school district in which the
pupil resides. The charter school shall report  all  such  data  to  the
school  districts  of residence in a timely manner. Each school district
shall report such enrollment, attendance  and  count  of  students  with
disabilities  to  the department. The school district of residence shall
pay directly to the charter school for  each  student  enrolled  in  the
charter  school  who  resides  in the school district the charter school
basic tuition, which shall be:
  (i) for school years prior to the two thousand nine--two thousand  ten
school year and for school years following the [two thousand twelve--two
thousand  thirteen]  TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN school
year, an amount equal to one hundred percent of  the  amount  calculated
pursuant to paragraph f of subdivision one of section thirty-six hundred
two  of  this  chapter for the school district for the year prior to the
base year increased by the percentage change in the state total approved
operating expense calculated pursuant to paragraph t of subdivision  one
of  section  thirty-six hundred two of this chapter from two years prior
to the base year to the base year;
  (ii) for the two thousand nine--two  thousand  ten  school  year,  the
charter  school  basic  tuition  shall  be  the  amount  payable by such

S. 2607--D                          9                         A. 3007--D

district as charter school basic tuition for the two thousand eight--two
thousand nine school year;
  (iii) for the two thousand ten--two thousand eleven through [two thou-
sand  twelve--two thousand thirteen] TWO THOUSAND THIRTEEN--TWO THOUSAND
FOURTEEN school years, the charter school basic  tuition  shall  be  the
basic  tuition  computed  for  the two thousand ten--two thousand eleven
school year pursuant to the provisions of subparagraph (i) of this para-
graph.
  S 6. Paragraph (a) of subdivision 1 of section 2856 of  the  education
law,  as  amended  by  section 22 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
  (a) The enrollment of students  attending  charter  schools  shall  be
included  in  the  enrollment,  attendance  and, if applicable, count of
students with disabilities of the school district  in  which  the  pupil
resides.  The  charter  school  shall report all such data to the school
districts of residence in a timely manner. Each  school  district  shall
report  such enrollment, attendance and count of students with disabili-
ties to the department. The  school  district  of  residence  shall  pay
directly  to the charter school for each student enrolled in the charter
school who resides in the  school  district  the  charter  school  basic
tuition which shall be:
  (i)  for school years prior to the two thousand nine--two thousand ten
school year and for school years following the [two thousand twelve--two
thousand thirteen] TWO THOUSAND THIRTEEN--TWO THOUSAND  FOURTEEN  school
year,  an  amount  equal to one hundred percent of the amount calculated
pursuant to paragraph f of subdivision one of section thirty-six hundred
two of this chapter for the school district for the year  prior  to  the
base year increased by the percentage change in the state total approved
operating  expense calculated pursuant to paragraph t of subdivision one
of section thirty-six hundred two of this chapter from two  years  prior
to the base year to the base year;
  (ii)  for  the  two  thousand  nine--two thousand ten school year, the
charter school basic  tuition  shall  be  the  amount  payable  by  such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;
  (iii) for the two thousand ten--two thousand eleven through [two thou-
sand  twelve--two thousand thirteen] TWO THOUSAND THIRTEEN--TWO THOUSAND
FOURTEEN school years, the charter school basic  tuition  shall  be  the
basic  tuition  computed  for  the two thousand ten--two thousand eleven
school year pursuant to the provisions of subparagraph (i) of this para-
graph.
  S 7.  Subdivision 2 of section 3012-c of the education law is  amended
by adding a new paragraph l to read as follows:
  L. IN THE EVENT A SCHOOL DISTRICT DOES NOT HAVE AN ANNUAL PROFESSIONAL
PERFORMANCE  REVIEW PLAN APPROVED BY THE COMMISSIONER FOR THE APPLICABLE
SCHOOL YEAR AS  OF  SEPTEMBER  FIRST  OF  THAT  YEAR,  THE  COLLECTIVELY
BARGAINED  PLAN  MOST  RECENTLY  APPROVED  OR THE PLAN DETERMINED BY THE
COMMISSIONER SHALL REMAIN IN EFFECT UNTIL A SUBSEQUENT PLAN IS AGREED TO
BY THE PARTIES IN ACCORDANCE WITH THIS SECTION AND IS  APPROVED  BY  THE
COMMISSIONER.
  S 7-a. Subdivision 2 of section 3012-c of the education law is amended
by adding a new paragraph m to read as follows:
  M. (1) NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION TO THE
CONTRARY,  IF A SCHOOL DISTRICT THAT DID NOT HAVE AN ANNUAL PROFESSIONAL
PERFORMANCE REVIEW PLAN APPROVED BY THE COMMISSIONER ON OR BEFORE  JANU-
ARY  SEVENTEENTH, TWO THOUSAND THIRTEEN, DOES NOT HAVE AN ANNUAL PROFES-

S. 2607--D                         10                         A. 3007--D

SIONAL PERFORMANCE REVIEW PLAN APPROVED BY THE  COMMISSIONER  OR  DETER-
MINED  PURSUANT TO THIS PARAGRAPH IN PLACE FOR THE FOLLOWING SCHOOL YEAR
ON OR BEFORE THE WEDNESDAY   FOLLOWING THE FIRST  FRIDAY  IN  MAY,  SUCH
SCHOOL DISTRICT AND THE COLLECTIVE BARGAINING REPRESENTATIVES REPRESENT-
ING  CLASSROOM  TEACHERS  AND  BUILDING  PRINCIPALS SHALL SUBMIT WRITTEN
EXPLANATIONS OF THEIR RESPECTIVE POSITIONS REGARDING SUCH ISSUES TO  THE
COMMISSIONER BY SUCH DATE.
  (2)  IF  SUCH  A  SCHOOL DISTRICT DOES NOT HAVE AN ANNUAL PROFESSIONAL
PERFORMANCE REVIEW PLAN  APPROVED  BY  THE  COMMISSIONER  OR  DETERMINED
PURSUANT TO THIS PARAGRAPH IN PLACE ON OR BEFORE THE WEDNESDAY PRECEDING
THE  LAST  FRIDAY  IN MAY, THE COMMISSIONER SHALL CONDUCT AN ARBITRATION
PROCEEDING AND SHALL HOLD NO MORE THAN TWO DAYS OF HEARINGS ON THE STAN-
DARDS AND PROCEDURES  NECESSARY  TO  IMPLEMENT  AN  ANNUAL  PROFESSIONAL
PERFORMANCE  REVIEW  PLAN  PURSUANT  TO THIS SECTION. THE PARTIES MAY BE
HEARD EITHER IN PERSON, BY COUNSEL, OR BY SUCH REPRESENTATIVES  AS  THEY
MAY DESIGNATE. THE PARTIES MAY PRESENT, ORALLY OR IN WRITING, STATEMENTS
OF  FACT,  SUPPORTING  WITNESSES  AND OTHER EVIDENCE, AND ARGUMENTS. THE
COMMISSIONER MAY REQUIRE THE PRODUCTION OF SUCH ADDITIONAL EVIDENCE FROM
THE PARTIES AND SHALL PROVIDE, AT THE REQUEST OF EITHER  PARTY,  THAT  A
FULL  AND COMPLETE RECORD BE KEPT OF ANY SUCH HEARINGS, THE COST OF SUCH
RECORD TO BE SHARED EQUALLY BY THE PARTIES.
  (3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION  TO
THE  CONTRARY, AFTER SUCH HEARING, THE COMMISSIONER SHALL RENDER A FINAL
AND BINDING WRITTEN DETERMINATION ON OR BEFORE JUNE  FIRST,  PRESCRIBING
SUCH  STANDARDS  AND PROCEDURES NECESSARY TO IMPLEMENT AN ANNUAL PROFES-
SIONAL PERFORMANCE REVIEW PLAN PURSUANT TO THIS  SECTION  EFFECTIVE  FOR
THE FOLLOWING SCHOOL YEAR FOR A TERM TO BE DETERMINED BY THE COMMISSION-
ER.  SUCH  DETERMINATION  SHALL  BE  LIMITED TO THE REQUIREMENTS OF THIS
SECTION AND CONSISTENT WITH PLANS APPROVED BY THE COMMISSIONER  PURSUANT
TO  PARAGRAPH  K OF THIS SUBDIVISION.  THE COMMISSIONER SHALL SPECIFY IN
HIS OR HER DETERMINATION THE BASIS FOR HIS OR HER FINDINGS, TAKING  INTO
CONSIDERATION  ALL  RELEVANT  FACTORS,  INCLUDING  THE  BEST INTEREST OF
STUDENTS.  SUCH  DETERMINATION  SHALL  BE  DEEMED  TO   CONSTITUTE   THE
SUBMISSION  BY  SUCH SCHOOL DISTRICT OF DOCUMENTATION DEMONSTRATING THAT
IT HAS FULLY IMPLEMENTED THE STANDARDS  AND  PROCEDURES  FOR  CONDUCTING
ANNUAL PROFESSIONAL PERFORMANCE REVIEWS OF CLASSROOM TEACHERS AND BUILD-
ING  PRINCIPALS  IN ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION AND
FINAL APPROVAL OF SUCH SCHOOL DISTRICT'S ANNUAL PROFESSIONAL PERFORMANCE
REVIEW PLAN IN ACCORDANCE WITH PARAGRAPH K OF THIS SUBDIVISION.
  (4) NO LATER THAN TEN DAYS AFTER RECEIPT OF THE COMMISSIONER'S  DETER-
MINATION,  THE  PARTIES  MAY  MAKE  AN APPLICATION TO THE NEW YORK STATE
SUPREME COURT TO VACATE OR MODIFY THE DETERMINATION OF THE  COMMISSIONER
PURSUANT  TO  SECTION  SEVENTY-FIVE HUNDRED ELEVEN OF THE CIVIL PRACTICE
LAW AND RULES. THE COURT'S REVIEW SHALL BE LIMITED TO  THE  GROUNDS  SET
FORTH  IN SUCH SECTION. THE COMMISSIONER'S DETERMINATION SHALL BE DEEMED
TO BE FINAL FOR THE PURPOSE OF SUCH PROCEEDING. IN  NO  CASE  SHALL  THE
FILING  OR  THE  PENDENCY  OF  AN APPEAL DELAY THE IMPLEMENTATION OF THE
COMMISSIONER'S DETERMINATION.
  (5) NOTHING IN THIS PARAGRAPH SHALL RESTRICT THE ABILITY OF  A  SCHOOL
DISTRICT  SUBJECT  TO ARBITRATION PURSUANT TO THIS PARAGRAPH AND COLLEC-
TIVE BARGAINING  REPRESENTATIVES  REPRESENTING  CLASSROOM  TEACHERS  AND
BUILDING PRINCIPALS IN SUCH DISTRICT FROM ENTERING INTO A NEW OR AMENDED
AGREEMENT  TO  IMPLEMENT  AN ANNUAL PROFESSIONAL PERFORMANCE REVIEW PLAN
PURSUANT TO THIS SECTION. ANY NEW OR AMENDED AGREEMENT MUST BE SUBMITTED
TO THE COMMISSIONER PURSUANT TO PARAGRAPH K OF THIS SUBDIVISION FOR  HIS
OR  HER  APPROVAL  AND SHALL BE APPROVED PROVIDED THAT SUCH TERMS OF THE

S. 2607--D                         11                         A. 3007--D

AGREEMENT ARE CONSISTENT WITH THIS SECTION AND THE  REGULATIONS  OF  THE
COMMISSIONER.
  S  8.  The closing paragraph of subdivision 5-a of section 3602 of the
education law, as amended by section 27 of part A of chapter 58  of  the
laws of 2011, is amended to read as follows:
  For the two thousand eight--two thousand nine school year, each school
district  shall  be entitled to an apportionment equal to the product of
fifteen percent and the additional apportionment  computed  pursuant  to
this  subdivision  for the two thousand seven--two thousand eight school
year. For the two thousand nine--two thousand ten through  two  thousand
[twelve]  FOURTEEN--two  thousand  [thirteen] FIFTEEN school years, each
school district shall be entitled  to  an  apportionment  equal  to  the
amount  set  forth  for such school district as "SUPPLEMENTAL PUB EXCESS
COST" under the heading "2008-09 BASE  YEAR  AIDS"  in  the  school  aid
computer  listing  produced by the commissioner in support of the budget
for the two thousand nine--two thousand ten  school  year  and  entitled
"SA0910".
  S  8-a.  The opening paragraph and paragraphs a and b of subdivision 4
of section 3602 of the education law, the  opening  paragraph,  subpara-
graph  1  and  the closing paragraph of subparagraph 2 of paragraph b as
amended by section 6-a of part A of chapter 57  of  the  laws  of  2012,
paragraphs  a  and b as amended by section 26 of part A of chapter 58 of
the laws of 2011, are amended to read as follows:
  In addition to any other apportionment pursuant  to  this  chapter,  a
school  district, other than a special act school district as defined in
subdivision eight of section four thousand one of this chapter, shall be
eligible for total foundation aid equal to the product of total  aidable
foundation  pupil units multiplied by the district's selected foundation
aid, which shall be the greater of five hundred dollars ($500) or  foun-
dation  formula aid, provided, however that for the two thousand seven--
two thousand eight through two thousand eight--two thousand nine  school
years,  no  school district shall receive total foundation aid in excess
of the sum of the total foundation aid base for aid payable in  the  two
thousand  seven--two  thousand  eight  school  year computed pursuant to
subparagraph (i) of paragraph j of subdivision one of this section, plus
the phase-in foundation increase computed pursuant  to  paragraph  b  of
this subdivision, and provided further that for the two thousand twelve-
-two  thousand thirteen school year [and thereafter], no school district
shall receive total foundation aid in excess of the  sum  of  the  total
foundation  aid  base  for  aid  payable in the two thousand eleven--two
thousand twelve school year computed pursuant to paragraph j of subdivi-
sion one of this section, plus the phase-in foundation increase computed
pursuant to paragraph b of this subdivision, AND PROVIDED  FURTHER  THAT
FOR  THE  TWO  THOUSAND  THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND
THEREAFTER, NO SCHOOL DISTRICT SHALL RECEIVE  TOTAL  FOUNDATION  AID  IN
EXCESS  OF THE SUM OF THE TOTAL FOUNDATION AID BASE COMPUTED PURSUANT TO
PARAGRAPH J OF SUBDIVISION ONE OF THIS SECTION, PLUS THE PHASE-IN  FOUN-
DATION INCREASE COMPUTED PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION and
provided  further  that  total foundation aid shall not be less than the
product of the total foundation aid base computed pursuant to  paragraph
j  of  subdivision one of this section and THE DUE-MINIMUM PERCENT WHICH
SHALL BE, FOR THE TWO  THOUSAND  TWELVE--TWO  THOUSAND  THIRTEEN  SCHOOL
YEAR,  one  hundred and six-tenths percent (1.006) AND FOR THE TWO THOU-
SAND  THIRTEEN--TWO  THOUSAND  FOURTEEN  SCHOOL  YEAR  FOR  CITY  SCHOOL
DISTRICTS  OF  THOSE  CITIES HAVING POPULATIONS IN EXCESS OF ONE HUNDRED
TWENTY-FIVE THOUSAND AND LESS THAN ONE MILLION INHABITANTS  ONE  HUNDRED

S. 2607--D                         12                         A. 3007--D

AND  ONE  AND ONE HUNDRED AND SEVENTY-SIX THOUSANDTHS PERCENT (1.01176),
AND FOR  ALL  OTHER  DISTRICTS  ONE  HUNDRED  AND  THREE-TENTHS  PERCENT
(1.003), subject to allocation pursuant to the provisions of subdivision
eighteen  of this section and any provisions of a chapter of the laws of
New York as described therein, nor more than the product of  such  total
foundation  aid  base  and  one  hundred  fifteen  percent, and provided
further that for the two thousand nine--two  thousand  ten  through  two
thousand  eleven--two thousand twelve school years, each school district
shall receive total foundation aid in an  amount  equal  to  the  amount
apportioned  to  such  school  district  for the two thousand eight--two
thousand nine school year pursuant to this  subdivision.  Total  aidable
foundation  pupil  units  shall be calculated pursuant to paragraph g of
subdivision two of this section. For the  purposes  of  calculating  aid
pursuant  to  this  subdivision, aid for the city school district of the
city of New York shall be calculated on a citywide basis.
  a. Foundation formula aid. Foundation  formula  aid  shall  equal  the
remainder  when  the  expected  minimum local contribution is subtracted
from the product of the foundation amount, the regional cost index,  and
the  pupil  need  index,  or: (foundation amount x regional cost index x
pupil need index)- expected minimum local contribution.
  (1) The foundation amount shall reflect the average per pupil cost  of
general  education instruction in successful school districts, as deter-
mined by a statistical analysis of the costs of  special  education  and
general  education  in  successful  school  districts, provided that the
foundation amount shall be adjusted annually to reflect  the  percentage
increase in the consumer price index as computed pursuant to section two
thousand  twenty-two of this chapter, provided that for the two thousand
eight--two thousand nine school year, for the purpose  of  such  adjust-
ment,  the  percentage  increase  in  the  consumer price index shall be
deemed to be two and nine-tenths percent (0.029), and  provided  further
that  the  foundation  amount  for  the two thousand seven--two thousand
eight school  year  shall  be  five  thousand  two  hundred  fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand  eight  through  two  thousand fifteen--two thousand sixteen school
years, the foundation amount shall be further adjusted by  the  phase-in
foundation  percent established pursuant to paragraph b of this subdivi-
sion.
  (2) The regional cost index shall reflect an analysis of labor  market
costs  based on median salaries in professional occupations that require
similar credentials to those of positions in the  education  field,  but
not  including  those  occupations in the education field, provided that
the regional cost indices for the two thousand seven--two thousand eight
school year and thereafter shall be as follows:
          Labor Force Region  Index
          Capital District    1.124
          Southern Tier       1.045
          Western New York    1.091
          Hudson Valley       1.314
          Long Island/NYC     1.425
          Finger Lakes        1.141
          Central New York    1.103
          Mohawk Valley       1.000
          North Country       1.000
  (3) The pupil need index shall equal the sum of one plus the  extraor-
dinary needs percent, provided, however, that the pupil need index shall
not  be less than one nor more than two. The extraordinary needs percent

S. 2607--D                         13                         A. 3007--D

shall be calculated pursuant to paragraph w of subdivision one  of  this
section.
  (4)  The expected minimum local contribution shall equal the lesser of
(i) the product of (A) the quotient arrived at when the selected  actual
valuation  is divided by total wealth foundation pupil units, multiplied
by (B) the product of the local tax factor,  multiplied  by  the  income
wealth  index,  or (ii) the product of (A) the product of the foundation
amount, the regional cost index, and the pupil need index, multiplied by
(B) the positive difference, if any, of  one  minus  the  state  sharing
ratio  for  total  foundation  aid. The local tax factor shall be estab-
lished by May first of each year by determining the product, computed to
four decimal places without rounding, of ninety  percent  multiplied  by
the quotient of the sum of the statewide average tax rate as computed by
the  commissioner for the current year in accordance with the provisions
of paragraph e of subdivision one of section thirty-six  hundred  nine-e
of this part plus the statewide average tax rate computed by the commis-
sioner  for  the  base  year in accordance with such provisions plus the
statewide average tax rate computed by the  commissioner  for  the  year
prior  to  the  base year in accordance with such provisions, divided by
three, provided however that for the two  thousand  seven--two  thousand
eight  school  year,  such local tax factor shall be sixteen thousandths
(0.016), and provided further that for the two thousand eight--two thou-
sand nine school year, such  local  tax  factor  shall  be  one  hundred
fifty-four  ten  thousandths  (0.0154). The income wealth index shall be
calculated pursuant to paragraph d of subdivision three of this section,
provided, however, that for the purposes of computing the expected mini-
mum local contribution the income wealth index shall not  be  less  than
sixty-five percent (0.65) and shall not be more than two hundred percent
(2.0)  and  provided  however that such income wealth index shall not be
more than ninety-five percent (0.95) for  the  two  thousand  eight--two
thousand  nine school year, AND PROVIDED FURTHER THAT SUCH INCOME WEALTH
INDEX SHALL NOT BE LESS THAN ZERO FOR  THE  TWO  THOUSAND  THIRTEEN--TWO
THOUSAND  FOURTEEN  SCHOOL YEAR.  The selected actual valuation shall be
calculated pursuant to paragraph c of subdivision one of  this  section.
Total  wealth  foundation  pupil  units  shall be calculated pursuant to
paragraph h of subdivision two of this section.
  b. Phase-in foundation increase. (1) The phase-in foundation  increase
shall  equal  the  product  of  the  phase-in foundation increase factor
multiplied by the positive difference, if any, of (i) the product of the
total aidable  foundation  pupil  units  multiplied  by  the  district's
selected  foundation aid less (ii) the total foundation aid base for aid
payable in the two thousand  eleven--two  thousand  twelve  school  year
computed pursuant to paragraph j of subdivision one of this section.
  (2)  The  phase-in foundation percent shall equal one hundred thirteen
and fourteen one  hundredths  percent  (1.1314)  for  the  two  thousand
eleven--two  thousand  twelve  school  year, one hundred ten and thirty-
eight hundredths percent (1.1038) for the two thousand twelve--two thou-
sand thirteen school year, one hundred seven and sixty-eight  hundredths
percent  (1.0768)  for  the two thousand thirteen--two thousand fourteen
school year, one hundred five and six hundredths  percent  (1.0506)  for
the  two  thousand  fourteen--two  thousand fifteen school year, and one
hundred two and five  tenths  percent  (1.0250)  for  the  two  thousand
fifteen--two thousand sixteen school year.
  For  the  two  thousand  eleven--two  thousand twelve school year, the
phase-in foundation increase factor shall equal  thirty-seven  and  one-
half  percent  (0.375)  and the phase-in due minimum percent shall equal

S. 2607--D                         14                         A. 3007--D

nineteen and forty-one hundredths percent (0.1941), for the two thousand
twelve--two  thousand  thirteen  school  year  the  phase-in  foundation
increase  factor shall equal one and seven-tenths percent (0.017), [and]
for  the  two  thousand  thirteen--two thousand fourteen school year THE
PHASE-IN FOUNDATION INCREASE FACTOR SHALL EQUAL (1) FOR  A  CITY  SCHOOL
DISTRICT  IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, FIVE AND
TWENTY-THREE HUNDREDTHS PERCENT (0.0523) OR (2)  FOR  ALL  OTHER  SCHOOL
DISTRICTS  ZERO PERCENT, AND FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND
FIFTEEN SCHOOL YEAR  and  thereafter  the  commissioner  shall  annually
determine  the phase-in foundation increase factor subject to allocation
pursuant to the provisions of subdivision eighteen of this  section  and
any  provisions of a chapter of the laws of New York as described there-
in.
  S 9. Subdivision 9 of section 3602 of the education law, as amended by
section 16 of part B of chapter 57 of the laws of 2007,  is  amended  to
read as follows:
  9.  Aid  for conversion to full day kindergarten. School districts may
make available full day kindergarten programs for all  children  wishing
to attend such programs[,].
  A.  For  aid  payable  in  the  two thousand seven--two thousand eight
school year and thereafter, school districts which provided any half-day
kindergarten programs or had no kindergarten programs  in  the  nineteen
hundred  ninety-six--ninety-seven  school year and in the base year, AND
WHICH HAVE NOT RECEIVED AN APPORTIONMENT PURSUANT TO THIS  PARAGRAPH  IN
ANY PRIOR SCHOOL YEAR, shall be eligible for aid equal to the product of
the  district's  selected foundation aid calculated pursuant to subdivi-
sion four of this section multiplied by the positive difference  result-
ing  when  the  full  day  kindergarten enrollment of children attending
programs in the district in  the  base  year  is  subtracted  from  such
enrollment in the current year.
  B.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A OF THIS SUBDIVISION,
SCHOOL DISTRICTS THAT HAVE RECEIVED AN APPORTIONMENT  PURSUANT  TO  THIS
SUBDIVISION  IN  A PRIOR SCHOOL YEAR SHALL BE ELIGIBLE FOR AN APPORTION-
MENT WHERE THE DEPARTMENT GRANTS A WAIVER UPON CAUSE SATISFACTORY TO THE
DEPARTMENT, INCLUDING BUT NOT LIMITED TO, SATISFACTORY DEMONSTRATION  OF
SIGNIFICANT  ECONOMIC  HARDSHIP  THAT WOULD IMPACT THE SCHOOL DISTRICT'S
ABILITY TO PROVIDE FULL DAY KINDERGARTEN FOR  ALL  CHILDREN  WISHING  TO
ATTEND  SUCH  PROGRAMS.  NO SCHOOL DISTRICT MAY BE GRANTED SUCH A WAIVER
MORE THAN ONCE.
  S 10. Subdivision 12 of section 3602 of the education law, as  amended
by section 35 of part A of chapter 58 of the laws of 2011, is amended to
read as follows:
  12. Academic enhancement aid. A school district that as of April first
of  the base year has been continuously identified as a district in need
of improvement for at least five  years  shall,  for  the  two  thousand
eight--two  thousand  nine  school  year,  be  entitled to an additional
apportionment equal to the positive remainder, if any, of (a) the lesser
of fifteen million dollars or the product of the  total  foundation  aid
base,  as  defined  by  paragraph  j of subdivision one of this section,
multiplied by ten percent (0.10), less (b) the positive remainder of (i)
the sum of the total foundation aid apportioned pursuant to  subdivision
four of this section and the supplemental educational improvement grants
apportioned  pursuant to subdivision eight of section thirty-six hundred
forty-one of this article, less (ii) the total foundation aid base.
  For the two thousand  nine--two  thousand  ten  through  two  thousand
[twelve]  FOURTEEN--two  thousand  [thirteen] FIFTEEN school years, each

S. 2607--D                         15                         A. 3007--D

school district shall be entitled  to  an  apportionment  equal  to  the
amount set forth for such school district as "EDUCATION GRANTS, ACADEMIC
EN" under the heading "2008-09 BASE YEAR AIDS" in the school aid comput-
er listing produced by the commissioner in support of the budget for the
two  thousand  nine--two thousand ten school year and entitled "SA0910",
and such apportionment shall be deemed to satisfy the  state  obligation
to  provide  an  apportionment  pursuant to subdivision eight of section
thirty-six hundred forty-one of this article.
  S 11.  The opening paragraph of subdivision 16 of section 3602 of  the
education  law,  as amended by section 36 of part A of chapter 58 of the
laws of 2011, is amended to read as follows:
  Each school district shall be eligible  to  receive  a  high  tax  aid
apportionment  in the two thousand eight--two thousand nine school year,
which shall equal the greater of (i) the sum of the tier 1 high tax  aid
apportionment, the tier 2 high tax aid apportionment and the tier 3 high
tax  aid apportionment or (ii) the product of the apportionment received
by the school district pursuant to this subdivision in the two  thousand
seven--two  thousand  eight  school  year, multiplied by the due-minimum
factor, which shall equal, for districts with an alternate pupil  wealth
ratio  computed  pursuant  to  paragraph  b of subdivision three of this
section that is less than two, seventy percent (0.70), and for all other
districts, fifty percent (0.50). Each school district shall be  eligible
to  receive  a  high tax aid apportionment in the two thousand nine--two
thousand ten through two thousand twelve--two thousand  thirteen  school
years in the amount set forth for such school district as "HIGH TAX AID"
under  the  heading  "2008-09 BASE YEAR AIDS" in the school aid computer
listing produced by the commissioner in support of the  budget  for  the
two  thousand  nine--two thousand ten school year and entitled "SA0910".
EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE A HIGH TAX AID  APPOR-
TIONMENT IN THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR
AND THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR EQUAL TO
THE  GREATER  OF  (1)  THE  AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS
"HIGH TAX AID" UNDER THE HEADING "2008-09 BASE YEAR AIDS" IN THE  SCHOOL
AID  COMPUTER  LISTING  PRODUCED  BY  THE COMMISSIONER IN SUPPORT OF THE
BUDGET FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR AND ENTI-
TLED "SA0910" OR (2) THE AMOUNT SET FORTH FOR SUCH  SCHOOL  DISTRICT  AS
"HIGH  TAX AID" UNDER THE HEADING "2013-14 ESTIMATED AIDS" IN THE SCHOOL
AID COMPUTER LISTING PRODUCED BY THE  COMMISSIONER  IN  SUPPORT  OF  THE
EXECUTIVE BUDGET FOR THE 2013-14 FISCAL YEAR AND ENTITLED "BT131-4"
  S 12. Paragraph (e) of subdivision 17 of section 3602 of the education
law,  as added by section 6 of part A of chapter 57 of the laws of 2012,
is amended and a new paragraph (f) is added to read as follows:
  (e) The gap elimination adjustment  restoration  amount  for  the  two
thousand  thirteen--two  thousand  fourteen  school year [and thereafter
shall equal the product of  the  gap  elimination  percentage  for  such
district  and  the  gap  elimination  adjustment  restoration allocation
established pursuant to subdivision eighteen of  this  section.]  FOR  A
SCHOOL  DISTRICT  SHALL  BE  COMPUTED    BASED  ON DATA ON FILE WITH THE
COMMISSIONER AND IN THE DATABASE USED BY THE COMMISSIONER TO PRODUCE  AN
UPDATED  ELECTRONIC  DATA  FILE IN SUPPORT OF THE ENACTED BUDGET FOR THE
TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN STATE FISCAL YEAR END ENTI-
TLED "SA131-4" AND SHALL EQUAL  THE  GREATER  OF  ONE  HUNDRED  THOUSAND
DOLLARS ($100,000) OR THE SUM OF:
  (I) THE "TIER A RESTORATION" WHICH SHALL MEAN THE AMOUNT SET FORTH FOR
SUCH  SCHOOL  DISTRICT  AS  "GEA RESTORATION" UNDER THE HEADING "2013-14
ESTIMATED AIDS" IN THE SCHOOL  AID  COMPUTER  LISTING  PRODUCED  BY  THE

S. 2607--D                         16                         A. 3007--D

COMMISSIONER  IN  SUPPORT  OF THE EXECUTIVE BUDGET REQUEST SUBMITTED FOR
THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN STATE FISCAL  YEAR  AND
ENTITLED "BT131-4"; AND
  (II) THE "TIER B RESTORATION" WHICH SHALL MEAN FOR A DISTRICT WITH (1)
A  COMBINED WEALTH RATIO OF LESS THAN ONE AND SEVEN-TENTHS (1.7) AND (2)
AN ENROLLMENT PER SQUARE MILE WHICH SHALL BE THE QUOTIENT,  COMPUTED  TO
TWO  DECIMALS  WITHOUT  ROUNDING, OF THE PUBLIC SCHOOL ENROLLMENT OF THE
SCHOOL DISTRICT ON THE DATE ENROLLMENT WAS COUNTED  IN  ACCORDANCE  WITH
SUBDIVISION  ONE OF THIS SECTION FOR THE BASE YEAR DIVIDED BY THE SQUARE
MILES OF THE DISTRICT, AS DETERMINED BY THE COMMISSIONER, OF  LESS  THAN
ONE  HUNDRED  AND  SEVENTY AND (3) A DESIGNATION AS HIGH NEED OR AVERAGE
NEED PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDI-
VISION SIX OF THIS SECTION FOR THE SCHOOL AID COMPUTER LISTING  PRODUCED
BY  THE  COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOU-
SAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR AND ENTITLED "SA0708", OR  IN
THE  CASE OF A REORGANIZED DISTRICT THAT HAD A PREDECESSOR DISTRICT THAT
WAS SO DESIGNATED AND (4) A TIER A RESTORATION WHICH  EQUALS  LESS  THAN
TWENTY  AND  SEVEN-TENTHS PERCENT (0.207) OF THE GAP ELIMINATION ADJUST-
MENT FOR THE BASE YEAR, THE POSITIVE DIFFERENCE IF ANY, OF  THE  PRODUCT
OF  TWENTY AND SEVEN-TENTHS PERCENT (0.207) MULTIPLIED BY THE GAP ELIMI-
NATION ADJUSTMENT FOR THE BASE YEAR MINUS THE TIER A RESTORATION; AND
  (III) THE "TIER C RESTORATION" WHICH SHALL MEAN  FOR  A  DISTRICT  FOR
WHICH  THE  SUM  OF THE TIER A RESTORATION AND THE TIER B RESTORATION IS
LESS THAN THE PRODUCT OF THE GAP ELIMINATION  ADJUSTMENT  FOR  THE  BASE
YEAR  MULTIPLIED  BY  SIX PERCENT (0.06), THE POSITIVE DIFFERENCE OF THE
PRODUCT OF THE GAP ELIMINATION ADJUSTMENT FOR THE BASE  YEAR  MULTIPLIED
BY  SIX  PERCENT  (0.06) MINUS THE SUM OF THE TIER A RESTORATION AND THE
TIER B RESTORATION; AND
  (IV) THE "TIER D RESTORATION" WHICH SHALL MEAN  FOR  SCHOOL  DISTRICTS
THAT  WERE: (1) DESIGNATED AS LOW OR AVERAGE NEED PURSUANT TO CLAUSE (C)
OF SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDIVISION SIX  OF  THIS  SECTION
FOR  THE  SCHOOL  AID  COMPUTER  LISTING PRODUCED BY THE COMMISSIONER IN
SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND  SEVEN--TWO  THOUSAND
EIGHT SCHOOL YEAR AND ENTITLED "SA0708", OR IN THE CASE OF A REORGANIZED
DISTRICT  THAT HAD A PREDECESSOR DISTRICT THAT WAS SO DESIGNATED AND (2)
DESIGNATED AS HIGH NEED PURSUANT TO THE REGULATIONS OF THE  COMMISSIONER
IN THE MOST RECENTLY AVAILABLE STUDY INCLUDED IN THE SCHOOL AID COMPUTER
LISTING  PRODUCED  BY  THE COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET
FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN STATE  FISCAL  YEAR
AND ENTITLED "SA131-4" KNOWN AS THE  2008 NEED RESOURCE CAPACITY CATEGO-
RY  CODE, THE PRODUCT OF (A) THE POSITIVE DIFFERENCE, IF ANY, OF THE GAP
ELIMINATION  ADJUSTMENT  FOR  SUCH  DISTRICT  FOR   THE   TWO   THOUSAND
ELEVEN--TWO  THOUSAND  TWELVE  SCHOOL  YEAR MINUS THE PRODUCT OF SIX AND
EIGHT TENTHS PERCENT  (0.068)  MULTIPLIED  BY  THE  TOTAL  GENERAL  FUND
EXPENDITURES  OF  SUCH  DISTRICT  FOR THE TWO THOUSAND TEN--TWO THOUSAND
ELEVEN SCHOOL YEAR, MULTIPLIED BY (B) THIRTY-FIVE HUNDREDTHS (0.35); AND
  (V) THE "TIER E RESTORATION" WHICH SHALL MEAN FOR DISTRICTS WITH (1) A
QUOTIENT OF THE POSITIVE DIFFERENCE OF THE  GAP  ELIMINATION  ADJUSTMENT
FOR THE YEAR PRIOR TO THE BASE YEAR MINUS THE GAP ELIMINATION ADJUSTMENT
FOR THE BASE YEAR DIVIDED BY THE GAP ELIMINATION ADJUSTMENT FOR THE YEAR
PRIOR  TO  THE  BASE  YEAR  IS  LESS  THAN SEVEN AND FIVE-TENTHS PERCENT
(0.075) AND (2) A COMBINED WEALTH RATIO OF LESS THAN ONE  AND  ONE-TENTH
(1.10), THE PRODUCT OF TWO AND FIVE-TENTHS PERCENT (0.025) MULTIPLIED BY
THE GAP ELIMINATION ADJUSTMENT FOR THE BASE YEAR; AND
  (VI)  THE  "TIER  F RESTORATION" WHICH SHALL MEAN FOR ANY DISTRICT (1)
DESIGNATED AS HIGH NEED PURSUANT TO CLAUSE (C) OF  SUBPARAGRAPH  TWO  OF

S. 2607--D                         17                         A. 3007--D

PARAGRAPH  C  OF  SUBDIVISION  SIX  OF  THIS  SECTION FOR THE SCHOOL AID
COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE  ENACTED
BUDGET  FOR  THE  TWO THOUSAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR AND
ENTITLED  "SA0708",  OR IN THE CASE OF A REORGANIZED DISTRICT THAT HAD A
PREDECESSOR DISTRICT THAT WAS SO DESIGNATED, WITH (2) A  GEA/TGFE  RATIO
GREATER  THAN  FOUR AND NINETY-ONE HUNDREDTHS PERCENT (.0491), WHERE THE
GEA/TGFE RATIO SHALL BE THE QUOTIENT OF THE GAP  ELIMINATION  ADJUSTMENT
FOR  THE  BASE  YEAR  FOR THE DISTRICT DIVIDED BY THE TOTAL GENERAL FUND
EXPENDITURES OF SUCH DISTRICT IN THE BASE YEAR, THE PRODUCT  OF  FIFTEEN
DOLLARS  ($15.00),  MULTIPLIED  BY  THE BASE YEAR PUBLIC SCHOOL DISTRICT
ENROLLMENT, AS COMPUTED PURSUANT TO PARAGRAPH N OF  SUBDIVISION  ONE  OF
THIS SECTION, BUT NOT LESS THAN ONE HUNDRED THOUSAND DOLLARS ($100,000);
AND
  (VII)  THE  "TIER  G  RESTORATION"  WHICH SHALL MEAN FOR A CITY SCHOOL
DISTRICT OF A CITY HAVING A POPULATION IN EXCESS OF ONE HUNDRED  TWENTY-
FIVE  THOUSAND AND LESS THAN ONE HUNDRED AND SIXTY THOUSAND AND FOR CITY
SCHOOL DISTRICTS OF CITIES WITH POPULATIONS IN EXCESS OF TWO HUNDRED AND
FIVE THOUSAND AND LESS THAN THREE HUNDRED THOUSAND, THE PRODUCT  OF  TEN
DOLLARS  ($10.00)  MULTIPLIED  BY  THE  BASE YEAR PUBLIC SCHOOL DISTRICT
ENROLLMENT, AS COMPUTED PURSUANT TO PARAGRAPH N OF  SUBDIVISION  ONE  OF
THIS  SECTION  AND  FOR  A CITY SCHOOL DISTRICT OF A CITY HAVING A POPU-
LATION IN EXCESS OF ONE HUNDRED SIXTY THOUSAND  AND  BELOW  TWO  HUNDRED
THOUSAND  THE  PRODUCT  OF  EIGHT DOLLARS ($8.00) MULTIPLIED BY THE BASE
YEAR PUBLIC SCHOOL DISTRICT ENROLLMENT, AS COMPUTED  PURSUANT  TO  PARA-
GRAPH  N  OF  SUBDIVISION  ONE  OF  THIS  SECTION  AND FOR A CITY SCHOOL
DISTRICT OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, THE PROD-
UCT OF FORTY-TWO DOLLARS AND TWO CENTS ($42.02), MULTIPLIED BY THE  BASE
YEAR  PUBLIC  SCHOOL  DISTRICT ENROLLMENT, AS COMPUTED PURSUANT TO PARA-
GRAPH N OF SUBDIVISION ONE OF THIS SECTION; AND
  (VIII) THE "TIER H RESTORATION" WHICH SHALL MEAN FOR  DISTRICTS  OTHER
THAN  FOR  CITY  SCHOOL  DISTRICTS  OF  CITIES HAVING POPULATIONS OF ONE
HUNDRED AND TWENTY-FIVE THOUSAND OR MORE, THE PRODUCT  OF  THE  POSITIVE
DIFFERENCE   OF   ONE  AND  FORTY-THREE  HUNDREDTHS  (1.43)  MINUS  SUCH
DISTRICT'S REGIONAL COST INDEX PURSUANT  TO  SUBDIVISION  FOUR  OF  THIS
SECTION,  MULTIPLIED  BY FIVE, MULTIPLIED BY THE THREE-YEAR AVERAGE FREE
AND REDUCED PRICE LUNCH  PERCENT,  MULTIPLIED  BY  ONE  HUNDRED  DOLLARS
($100.00) MULTIPLIED BY THE BASE YEAR PUBLIC SCHOOL DISTRICT ENROLLMENT,
AS  COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION;
AND
  (IX) THE "TIER I RESTORATION" WHICH SHALL MEAN FOR ANY DISTRICT WITH A
COMBINED WEALTH RATIO GREATER THAN ONE AND ONE-TENTH (1.1) AND A  THREE-
YEAR   AVERAGE  FREE  AND  REDUCED  PRICE  LUNCH  PERCENT  GREATER  THAN
SIX-TENTHS (0.6), THE PRODUCT OF ONE HUNDRED AND FIFTY DOLLARS ($150.00)
MULTIPLIED BY THE  BASE  YEAR  PUBLIC  SCHOOL  DISTRICT  ENROLLMENT,  AS
COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION; AND
  (X)  THE  "TIER  J RESTORATION" WHICH SHALL MEAN FOR A DISTRICT WITH A
COMBINED WEALTH RATIO LESS THAN ONE AND ONE-TENTHS (1.1), THE PRODUCT OF
(A) TWO HUNDRED DOLLARS ($200.00) MULTIPLIED BY (B) THE POSITIVE DIFFER-
ENCE, IF ANY, OF THE BASE YEAR PUBLIC SCHOOL  DISTRICT  ENROLLMENT  LESS
THE  PUBLIC  SCHOOL DISTRICT ENROLLMENT FOR THE YEAR FOUR YEARS PRIOR TO
THE BASE YEAR, AS COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF
THIS SECTION;
  PROVIDED FURTHER, NOTWITHSTANDING ANY PORTION OF THIS PARAGRAPH TO THE
CONTRARY, THAT A DISTRICT'S GAP ELIMINATION ADJUSTMENT  RESTORATION  FOR
THE  TWO  THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR SHALL NOT

S. 2607--D                         18                         A. 3007--D

EXCEED THE PRODUCT OF FORTY-THREE PERCENT (0.43) AND THE GAP ELIMINATION
ADJUSTMENT FOR THE BASE YEAR FOR THE DISTRICT.
  (F)  THE  GAP  ELIMINATION  ADJUSTMENT  RESTORATION AMOUNT FOR THE TWO
THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR AND THEREAFTER SHALL
EQUAL THE PRODUCT OF THE GAP ELIMINATION PERCENTAGE  FOR  SUCH  DISTRICT
AND  THE  GAP  ELIMINATION ADJUSTMENT RESTORATION ALLOCATION ESTABLISHED
PURSUANT TO SUBDIVISION EIGHTEEN OF THIS SECTION.
  S 13. Intentionally omitted.
  S 13-a. Clause (c) of subparagraph 5 of paragraph e of  subdivision  6
of  section 3602 of the education law, as amended by section 1 of part F
of chapter 383 of the laws of 2001, is amended to read as follows:
  (c) [Periodically, but at least at]  AT  the  end  of  each  ten  year
segment of an assumed amortization established pursuant to subparagraphs
two,  three  and four of this paragraph, OR IN THE TWO THOUSAND FOURTEEN
-- TWO THOUSAND FIFTEEN SCHOOL YEAR IN THE CASE OF ASSUMED AMORTIZATIONS
WHOSE TEN YEAR SEGMENT ENDS PRIOR TO SUCH SCHOOL YEAR, the  commissioner
shall   revise  the  remaining  scheduled  semiannual  payments  of  the
outstanding principal and interest of such assumed  amortization,  other
than the outstanding principal and interest of refunding bonds where the
district  can  demonstrate  to  the commissioner that it is precluded by
state or federal law, rule or regulation from refinancing such outstand-
ing principal and interest, based on the interest rates  applicable  for
the  current  year if the difference of the interest rate upon which the
existing assumed amortization is based minus such interest rate applica-
ble for the current year is equal to or  greater  than  one  quarter  of
one-one  hundredth.    PROVIDED  HOWEVER, IN THE CASE OF ASSUMED AMORTI-
ZATION WHOSE TEN YEAR SEGMENT ENDED PRIOR TO THE TWO  THOUSAND  FOURTEEN
--  TWO  THOUSAND FIFTEEN SCHOOL YEAR THE NEXT TEN YEAR SEGMENT SHALL BE
DEEMED TO COMMENCE WITH  THE  TWO  THOUSAND  FOURTEEN  --  TWO  THOUSAND
FIFTEEN  SCHOOL  YEAR.  THE  DEPARTMENT SHALL NOTIFY SCHOOL DISTRICTS OF
PROJECTS SUBJECT TO THE PROVISIONS OF  THIS  CLAUSE  BY  NO  LATER  THAN
DECEMBER FIRST NEXT PRECEDING THE SCHOOL YEAR IN WHICH THE ASSUMED AMOR-
TIZATION IS SCHEDULED TO BE REVISED PURSUANT TO THIS CLAUSE.
  S 14. The opening paragraph of section 3609-a of the education law, as
amended  by  section  9  of part A of chapter 57 of the laws of 2012, is
amended to read as follows:
  For aid payable in the two thousand seven--two thousand  eight  school
year  and  thereafter, "moneys apportioned" shall mean the lesser of (i)
the sum of one hundred percent of the respective amount  set  forth  for
each  school  district as payable pursuant to this section in the school
aid computer listing for the current year produced by  the  commissioner
in support of the budget which includes the appropriation for the gener-
al  support  for public schools for the prescribed payments and individ-
ualized payments due prior to April first for the current year plus  the
apportionment  payable during the current school year pursuant to subdi-
vision six-a and subdivision fifteen of section thirty-six  hundred  two
of  this  part  minus  any  reductions  to current year aids pursuant to
subdivision seven of section thirty-six hundred four of this part or any
deduction from  apportionment  payable  pursuant  to  this  chapter  for
collection  of a school district basic contribution as defined in subdi-
vision eight of section forty-four hundred one of this chapter, less any
grants provided pursuant to subparagraph two-a of paragraph b of  subdi-
vision  four  of section ninety-two-c of the state finance law, less any
grants provided pursuant to subdivision  twelve  of  section  thirty-six
hundred  forty-one of this article, or (ii) the apportionment calculated
by the commissioner based on data on file at the  time  the  payment  is

S. 2607--D                         19                         A. 3007--D

processed;  provided however, that for the purposes of any payments made
pursuant to this section prior to the first business day of June of  the
current  year,  moneys  apportioned  shall  not include any aids payable
pursuant  to  subdivisions  six  and fourteen, if applicable, of section
thirty-six hundred two of this part as current year aid for debt service
on bond anticipation notes and/or bonds first issued in the current year
or any aids payable for  full-day  kindergarten  for  the  current  year
pursuant  to  subdivision nine of section thirty-six hundred two of this
part. The definitions of "base year" and "current year" as set forth  in
subdivision  one  of  section  thirty-six hundred two of this part shall
apply to this section. For aid payable in the [two thousand  twelve--two
thousand  thirteen]  TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN school
year, reference to such "school aid computer  listing  for  the  current
year" shall mean the printouts entitled ["SA121-3"] "SA131-4".
  S  15.  Paragraph  b of subdivision 2 of section 3612 of the education
law, as amended by section 10 of part A of chapter 57  of  the  laws  of
2012, is amended to read as follows:
  b. Such grants shall be awarded to school districts, within the limits
of funds appropriated therefor, through a competitive process that takes
into  consideration  the  magnitude  of  any shortage of teachers in the
school district, the number of teachers employed in the school  district
who hold temporary licenses to teach in the public schools of the state,
the  number of provisionally certified teachers, the fiscal capacity and
geographic sparsity of the district, the  number  of  new  teachers  the
school district intends to hire in the coming school year and the number
of summer in the city student internships proposed by an eligible school
district,  if applicable. Grants provided pursuant to this section shall
be used only for the purposes enumerated in this section.  Notwithstand-
ing any other provision of law to the contrary, a city  school  district
in a city having a population of one million or more inhabitants receiv-
ing a grant pursuant to this section may use no more than eighty percent
of  such  grant  funds  for any recruitment, retention and certification
costs associated with transitional certification of  teacher  candidates
for  the  school  years  two thousand one--two thousand two through [two
thousand twelve--two thousand thirteen] TWO THOUSAND THIRTEEN--TWO THOU-
SAND FOURTEEN.
  S 16. Section 3641 of the education law is amended  by  adding  a  new
subdivision 6-a to read as follows:
  6-A.  COMMUNITY  SCHOOL GRANTS.  A. WITHIN THE AMOUNT APPROPRIATED FOR
SUCH PURPOSE, SUBJECT TO A PLAN DEVELOPED BY THE STATE COUNCIL ON  CHIL-
DREN  AND FAMILIES IN COORDINATION WITH THE COMMISSIONER AND APPROVED BY
THE DIRECTOR OF THE BUDGET, THE  COMMISSIONER  SHALL  AWARD  COMPETITIVE
GRANTS PURSUANT TO THIS SUBDIVISION TO ELIGIBLE SCHOOL DISTRICTS OR IN A
CITY  WITH  A  POPULATION  OF  ONE MILLION OR MORE AN ELIGIBLE ENTITY TO
IMPLEMENT, BEGINNING IN THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN
SCHOOL YEAR, A PLAN THAT TARGETS SCHOOL BUILDINGS AS COMMUNITY  HUBS  TO
DELIVER  CO-LOCATED  OR  SCHOOL-LINKED  ACADEMIC, HEALTH, MENTAL HEALTH,
NUTRITION, COUNSELING, LEGAL AND/OR OTHER SERVICES TO STUDENTS AND THEIR
FAMILIES IN A MANNER THAT WILL LEAD TO IMPROVED  EDUCATIONAL  AND  OTHER
OUTCOMES.   IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ELIGIBLE
ENTITIES SHALL MEAN THE CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK, OR
NOT-FOR-PROFIT ORGANIZATIONS, WHICH SHALL INCLUDE NOT-FOR-PROFIT  COMMU-
NITY  BASED  ORGANIZATIONS.  AN ELIGIBLE ENTITY THAT IS A NOT-FOR-PROFIT
MAY APPLY FOR A COMMUNITY SCHOOL GRANT  PROVIDED  THAT  IT  COLLABORATES
WITH  THE  CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK AND RECEIVES THE

S. 2607--D                         20                         A. 3007--D

APPROVAL OF THE CHANCELLOR OF THE CITY SCHOOL DISTRICT OF  THE  CITY  OF
NEW YORK.
  (1) SUCH PLAN SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I) THE PROCESS BY WHICH A REQUEST FOR PROPOSALS WILL BE DEVELOPED;
  (II)  THE  SCORING  RUBRIC  BY WHICH SUCH PROPOSALS WILL BE EVALUATED,
PROVIDED THAT SUCH GRANTS SHALL BE AWARDED BASED ON  FACTORS  INCLUDING,
BUT  NOT  LIMITED  TO: MEASURES OF SCHOOL DISTRICT NEED; MEASURES OF THE
NEED OF STUDENTS TO BE SERVED BY  EACH  OF  THE  SCHOOL  DISTRICTS;  THE
SCHOOL  DISTRICT'S  PROPOSAL  TO  TARGET  THE  HIGHEST  NEED SCHOOLS AND
STUDENTS; THE SUSTAINABILITY OF THE PROPOSED COMMUNITY SCHOOLS  PROGRAM;
AND PROPOSAL QUALITY;
  (III) THE FORM AND MANNER BY WHICH APPLICATIONS WILL BE SUBMITTED;
  (IV)  THE  MANNER BY WHICH CALCULATION OF THE AMOUNT OF THE AWARD WILL
BE DETERMINED;
  (V) THE TIMELINE FOR THE ISSUANCE AND REVIEW OF APPLICATIONS; AND
  (VI) PROGRAM IMPLEMENTATION PHASES THAT WILL TRIGGER  PAYMENT  OF  SET
PERCENTAGES OF THE TOTAL AWARD.
  (2)  IN  ASSESSING  PROPOSAL QUALITY, THE COMMISSIONER SHALL TAKE INTO
ACCOUNT FACTORS INCLUDING, BUT NOT LIMITED TO:
  (I) THE EXTENT TO WHICH THE SCHOOL DISTRICT'S PROPOSAL  WOULD  PROVIDE
SUCH  COMMUNITY SERVICES THROUGH PARTNERSHIPS WITH LOCAL GOVERNMENTS AND
NON-PROFIT ORGANIZATIONS;
  (II) THE EXTENT TO WHICH THE PROPOSAL WOULD PROVIDE  FOR  DELIVERY  OF
SUCH SERVICES DIRECTLY IN SCHOOL BUILDINGS;
  (III)  THE  EXTENT TO WHICH THE PROPOSAL ARTICULATES HOW SUCH SERVICES
WOULD FACILITATE MEASURABLE IMPROVEMENT IN STUDENT AND FAMILY OUTCOMES;
  (IV) THE EXTENT TO WHICH THE PROPOSAL ARTICULATES AND  IDENTIFIES  HOW
EXISTING  FUNDING  STREAMS  AND  PROGRAMS  WOULD BE USED TO PROVIDE SUCH
COMMUNITY SERVICES; AND
  (V) THE EXTENT TO  WHICH  THE  PROPOSAL  ENSURES  THE  SAFETY  OF  ALL
STUDENTS, STAFF AND COMMUNITY MEMBERS IN SCHOOL BUILDINGS USED AS COMMU-
NITY HUBS.
  B.  A  RESPONSE  TO  A  REQUEST  FOR PROPOSALS ISSUED PURSUANT TO THIS
SUBDIVISION MAY BE SUBMITTED BY A SINGLE SCHOOL DISTRICT OR JOINTLY BY A
CONSORTIUM OF TWO OR MORE SCHOOL DISTRICTS, OR IN A CITY  WITH  A  POPU-
LATION OF ONE MILLION OR MORE, AN ELIGIBLE ENTITY.
  C.  THE  AMOUNT  OF THE GRANT AWARD SHALL BE DETERMINED BY THE COMMIS-
SIONER, CONSISTENT WITH THE PLAN DEVELOPED PURSUANT TO  PARAGRAPH  A  OF
THIS  SUBDIVISION,  EXCEPT  THAT  NO SINGLE DISTRICT MAY BE AWARDED MORE
THAN FORTY PERCENT OF THE TOTAL AMOUNT OF GRANT AWARDS MADE PURSUANT  TO
THIS  SUBDIVISION;  AND  PROVIDED  FURTHER THAT THE MAXIMUM AWARD TO ANY
INDIVIDUAL COMMUNITY SCHOOL SITE SHALL BE FIVE HUNDRED THOUSAND DOLLARS;
AND PROVIDED FURTHER THAT THE AMOUNT AWARDED WILL BE  PAID  OUT  IN  SET
PERCENTAGES  OVER TIME UPON SUCCESSFUL IMPLEMENTATION OF EACH PHASE OF A
SCHOOL DISTRICT'S APPROVED PROPOSAL SET FORTH PURSUANT TO PARAGRAPH A OF
THIS SUBDIVISION; AND PROVIDED FURTHER THAT NONE OF THE  GRANTS  AWARDED
PURSUANT TO THIS SUBDIVISION MAY BE USED TO SUPPLANT EXISTING FUNDING.
  S  17.  Section  3641  of the education law is amended by adding a new
subdivision 6-b to read as follows:
  6-B. EXTENDED LEARNING GRANTS.  A. WITHIN THE AMOUNT APPROPRIATED  FOR
SUCH  PURPOSE,  SUBJECT TO A PLAN THAT IS DEVELOPED BY THE COMMISSIONER,
AND APPROVED BY THE DIRECTOR OF THE BUDGET, THE COMMISSIONER SHALL AWARD
COMPETITIVE PLANNING AND IMPLEMENTATION GRANTS PURSUANT TO THIS SUBDIVI-
SION TO ELIGIBLE SCHOOL DISTRICTS OR SCHOOL DISTRICTS  IN  COLLABORATION
WITH  NOT-FOR-PROFIT  COMMUNITY  BASED  ORGANIZATIONS THAT PUT FORWARD A
PROPOSAL TO IMPROVE STUDENT OUTCOMES  BY  ADDING  AT  LEAST  TWENTY-FIVE

S. 2607--D                         21                         A. 3007--D

PERCENT  MORE TIME TO THE ACADEMIC CALENDAR BY EXTENDING THE SCHOOL DAY,
SCHOOL YEAR, OR SOME COMBINATION THEREOF,  EITHER  DISTRICT-WIDE  OR  IN
SELECTED SCHOOL BUILDINGS.
  (1) SUCH PLAN SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I) THE PROCESS BY WHICH A REQUEST FOR PROPOSALS WILL BE DEVELOPED;
  (II)  THE  SCORING  RUBRIC  BY WHICH SUCH PROPOSALS WILL BE EVALUATED,
PROVIDED THAT PRIORITY SHALL BE  GIVEN  TO  APPLICANTS  BASED  UPON  THE
SCHOOL  DISTRICT'S  PROPOSAL TO TARGET THE SCHOOLS AND STUDENTS WITH THE
GREATEST NEED AND UPON PROPOSAL QUALITY;
  (III) THE FORM AND MANNER BY WHICH APPLICATIONS WILL BE SUBMITTED;
  (IV) THE TIMELINE FOR THE ISSUANCE AND REVIEW OF APPLICATIONS; AND
  (V) A REQUIREMENT THAT SCHOOL  DISTRICTS  AWARDED  GRANTS  UNDER  THIS
SUBDIVISION  SUBMIT TO AN ANNUAL EVALUATION OF PERFORMANCE AND IMPACT AS
REQUIRED BY THE COMMISSIONER.
  (2) IN ASSESSING PROPOSAL QUALITY IN  ORDER  TO  AWARD  IMPLEMENTATION
GRANT  FUNDING, THE COMMISSIONER SHALL TAKE INTO ACCOUNT FACTORS INCLUD-
ING, BUT NOT LIMITED TO:
  (I) THE EXTENT TO WHICH THE SCHOOL DISTRICT'S PROPOSAL WOULD  MAXIMIZE
THE USE OF THE ADDITIONAL LEARNING TIME THROUGH A COMPREHENSIVE RESTRUC-
TURING OF THE SCHOOL DAY AND/OR YEAR;
  (II) HOW THE ADDITIONAL LEARNING TIME WOULD BE UTILIZED, INCLUDING BUT
NOT LIMITED TO ADDITIONAL TIME SPENT ON CORE ACADEMICS; AND
  (III) THE EXTENT TO WHICH THE PROPOSAL WOULD PROVIDE ADDITIONAL LEARN-
ING TIME FOR STUDENTS IN GRADES SIX THROUGH EIGHT.
  B.  A  SCHOOL  DISTRICT'S SCHOOL-WIDE EXTENDED LEARNING IMPLEMENTATION
GRANT AWARD SHALL EQUAL ITS AVERAGE DAILY ATTENDANCE IN THE  SCHOOL-WIDE
EXTENDED  LEARNING  PROGRAM MULTIPLIED BY THE EXPECTED COST PER PUPIL OF
THE ADDITIONAL LEARNING TIME. FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE
EXPECTED  COST PER PUPIL OF THE ADDITIONAL LEARNING TIME SHALL EQUAL THE
GREATER OF FIFTEEN HUNDRED DOLLARS OR (1) THE QUOTIENT OF (I) THE SCHOOL
DISTRICT'S APPROVED OPERATING EXPENSE PURSUANT TO PARAGRAPH T OF  SUBDI-
VISION  ONE  OF  SECTION  THIRTY-SIX HUNDRED TWO OF THIS ARTICLE FOR THE
YEAR PRIOR TO THE BASE YEAR DIVIDED BY (II) THE DISTRICT'S PUBLIC SCHOOL
DISTRICT ENROLLMENT PURSUANT TO SUBPARAGRAPH TWO OF PARAGRAPH N OF  SUCH
SUBDIVISION  FOR  THE  YEAR PRIOR TO THE BASE YEAR MULTIPLIED BY (2) TEN
PERCENT (0.10), MULTIPLIED BY (3) THE QUOTIENT OF (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
MENT OF LABOR FOR THE TWELVE MONTH PERIOD PRECEDING JANUARY FIRST OF THE
BASE  YEAR,  DIVIDED  BY (II) THE AVERAGE OF THE NATIONAL CONSUMER PRICE
INDEXES DETERMINED BY THE UNITED STATES  DEPARTMENT  OF  LABOR  FOR  THE
TWELVE  MONTH PERIOD PRECEDING JANUARY FIRST OF THE YEAR TWO YEARS PRIOR
TO THE BASE YEAR.
  C. IN EXTRAORDINARY CASES, THE COMMISSIONER MAY  AWARD  A  GRANT  THAT
EXCEEDS  THE  PER PUPIL LIMIT CALCULATED PURSUANT TO PARAGRAPH B OF THIS
SUBDIVISION.
  D. NO DISTRICT SHALL RECEIVE A GRANT IN EXCESS  OF  THE  TOTAL  ACTUAL
GRANT  EXPENDITURES  INCURRED  BY  THE  DISTRICT  IN THE CURRENT YEAR AS
APPROVED BY THE COMMISSIONER.
  E. NO SINGLE DISTRICT MAY BE AWARDED MORE THAN FORTY  PERCENT  OF  THE
TOTAL AMOUNT OF GRANT AWARDS MADE PURSUANT TO THIS SUBDIVISION.
  S  18.  Subdivision  16  of  section  3602-e  of the education law, as
amended by section 19 of part B of chapter 57 of the laws  of  2007,  is
amended to read as follows:
  16. The grant payable to a school district pursuant to this section in
the  current year shall be reduced by one one-hundred eightieth for each
day less than one hundred eighty days that the universal prekindergarten

S. 2607--D                         22                         A. 3007--D

classes of the district  were  actually  in  session,  except  that  the
commissioner may disregard such reduction for any deficiency that may be
disregarded  in  computing  total foundation aid pursuant to subdivision
seven or eight of section thirty-six hundred four of this chapter AND IN
ADDITION  MAY DISREGARD A REDUCTION FOR ANY DEFICIENCY THAT IS CAUSED BY
A DELAY IN THE OPENING OF PUBLIC SCHOOL CLASSES DUE  TO  EXTRAORDINARILY
ADVERSE  WEATHER  CONDITIONS  OR  OTHER  CAUSE CITED IN SUCH SUBDIVISION
SEVEN OF SECTION THIRTY-SIX HUNDRED FOUR THAT RESULTS IN CANCELLATION OF
THE PREKINDERGARTEN PROGRAM OR OF TRANSPORTATION TO SUCH PROGRAM.
  S 19. Clause (b) of subparagraph 3 of paragraph e of subdivision 6  of
section  3602 of the education law, as amended by section 31-a of part A
of chapter 57 of the laws of 2012, is amended to read as follows:
  (b) Such assumed amortization for a project approved  by  the  commis-
sioner  on or after the later of the first day of December, two thousand
one or thirty days after the date upon which this subdivision shall have
become a law and prior to the first day of July, two thousand eleven  or
for  any  debt  service related to projects approved by the commissioner
prior to such date where a bond, capital note or bond anticipation  note
is  first issued on or after the first day of December, two thousand one
to fund such projects, shall commence: (i) eighteen  months  after  such
approval or (ii) on the date of receipt by the commissioner of a certif-
ication  by  the  district that a general construction contract has been
awarded for such project by the district, whichever is later,  and  such
assumed  amortization  for  a project approved by the commissioner on or
after the first day of July, two thousand eleven shall  commence:  (iii)
eighteen  months  after  such approval or (iv) on the date of receipt by
the commissioner of both the final certificate of substantial completion
of the project issued by the architect or engineer and  the  final  cost
report  for  such  project, whichever is later or (v) upon the effective
date of a waiver based on a finding by the commissioner, pursuant  to  a
process  set  forth  by the commissioner, that the district is unable to
submit a final certificate of substantial  completion  for  the  project
and/or  complete  the  final cost report because of circumstances beyond
the control of the district, WHICH SHALL INCLUDE BUT SHALL NOT BE LIMIT-
ED TO THE INABILITY OF THE DISTRICT TO COMPLETE A COMPLEX PROJECT WITHIN
EIGHTEEN MONTHS.   Such assumed amortization  shall  provide  for  equal
semiannual  payments of principal and interest based on an interest rate
established pursuant to subparagraph five of  this  paragraph  for  such
purpose for the school year during which such certification is received.
The  first  installment  of obligations issued by the school district in
support of such projects may mature not later than the dates established
pursuant to sections 21.00 and 22.10 of the local finance law.
  S 20. Section 2556 of the education law is amended  by  adding  a  new
subdivision 15 to read as follows:
  15.  A.  THE  CHANCELLOR  OF A CITY SCHOOL DISTRICT IN A CITY HAVING A
POPULATION OF ONE MILLION OR MORE SHALL  COMPILE  AN  INVENTORY  OF  AND
ISSUE  A WRITTEN REPORT AND DEVELOP RECOMMENDATIONS REGARDING TRANSPORT-
ABLE CLASSROOM UNITS ("TCU" OR ALSO COMMONLY KNOWN AS A "TRAILER"). SUCH
INVENTORY, REPORT AND RECOMMENDATIONS SHALL:
  (I) IDENTIFY EACH TRANSPORTABLE CLASSROOM UNIT  LOCATED  IN  THE  CITY
SCHOOL  DISTRICT.  EACH TRANSPORTABLE CLASSROOM UNIT SHALL BE IDENTIFIED
BY THE COMMUNITY SCHOOL DISTRICT IN WHICH IT  IS  LOCATED,  ITS  ADDRESS
WITH  IDENTIFICATION  OF ANY SCHOOL BUILDING IT IS PART OF OR ASSOCIATED
WITH, ITS APPROXIMATE SIZE, ITS AGE, AND A DESCRIPTION OF  ITS  PHYSICAL
CONDITION;

S. 2607--D                         23                         A. 3007--D

  (II)  IDENTIFY THE NUMBER OF STUDENTS SERVED WITHIN EACH TRANSPORTABLE
CLASSROOM UNIT, INCLUDING THE GRADE LEVEL OF SUCH STUDENTS, IF  APPLICA-
BLE,  THE  AVERAGE  CLASS SIZE WITHIN EACH TRANSPORTABLE CLASSROOM UNIT,
AND A DESCRIPTION OF THE AMOUNT OF THE SCHOOL  DAY  THE  STUDENTS  SPEND
WITHIN EACH TRANSPORTABLE CLASSROOM UNIT;
  (III)  PROVIDE RECOMMENDATIONS TO MINIMIZE THE NUMBER OF TRANSPORTABLE
CLASSROOM UNITS WITHIN THE CITY SCHOOL DISTRICT.
  B. ON OR BEFORE DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  FOURTEEN,  THE
CHANCELLOR  SHALL  SUBMIT THE INVENTORY, REPORT, AND THE RECOMMENDATIONS
TO MINIMIZE THE NUMBER OF TRANSPORTABLE CLASSROOM UNITS WITHIN THE  CITY
SCHOOL  DISTRICT, COMPILED AND DEVELOPED PURSUANT TO PARAGRAPH A OF THIS
SUBDIVISION, TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, THE CHAIRS OF THE SENATE AND  ASSEMBLY  COMMIT-
TEES ON EDUCATION, AND THE DEPARTMENT.
  S 20-a. Section 2590-h of the education law is amended by adding a new
subdivision 53 to read as follows:
  53.  TO  COMPILE  AN INVENTORY OF, ISSUE A WRITTEN REPORT, AND PROVIDE
RECOMMENDATIONS  AS  REQUIRED  BY   SUBDIVISION   FIFTEEN   OF   SECTION
TWENTY-FIVE  HUNDRED  FIFTY-SIX  OF  THIS  TITLE REGARDING TRANSPORTABLE
CLASSROOM UNITS IN THE CITY SCHOOL DISTRICT.
  S 21. Subdivision 6 of section 4402 of the education law,  as  amended
by section 12 of part A of chapter 57 of the laws of 2012, is amended to
read as follows:
  6.  Notwithstanding any other law, rule or regulation to the contrary,
the board of education of a city school district with  a  population  of
one  hundred twenty-five thousand or more inhabitants shall be permitted
to establish  maximum  class  sizes  for  special  classes  for  certain
students  with  disabilities  in  accordance with the provisions of this
subdivision. For the purpose of obtaining relief from any adverse fiscal
impact from under-utilization of special education resources due to  low
student  attendance  in  special  education  classes  at  the middle and
secondary level as determined by the commissioner, such boards of educa-
tion shall, during the school years nineteen hundred  ninety-five--nine-
ty-six  through  June thirtieth, two thousand [thirteen] FOURTEEN of the
[two thousand twelve--two thousand thirteen] TWO THOUSAND  THIRTEEN--TWO
THOUSAND  FOURTEEN school year, be authorized to increase class sizes in
special classes containing students with disabilities whose  age  ranges
are  equivalent  to those of students in middle and secondary schools as
defined by the commissioner for purposes of this section by  up  to  but
not to exceed one and two tenths times the applicable maximum class size
specified  in  regulations of the commissioner rounded up to the nearest
whole number, provided that in a city school  district  having  a  popu-
lation of one million or more, classes that have a maximum class size of
fifteen  may  be increased by no more than one student and provided that
the projected average class size shall not exceed the maximum  specified
in  the  applicable  regulation,  provided that such authorization shall
terminate on June thirtieth, two thousand. Such authorization  shall  be
granted  upon  filing  of a notice by such a board of education with the
commissioner stating the board's intention to increase such class  sizes
and  a  certification  that the board will conduct a study of attendance
problems at the secondary level and will implement a  corrective  action
plan  to  increase the rate of attendance of students in such classes to
at least the rate for students attending regular  education  classes  in
secondary  schools of the district. Such corrective action plan shall be
submitted for approval by the commissioner by a date during  the  school
year  in  which such board increases class sizes as provided pursuant to

S. 2607--D                         24                         A. 3007--D

this subdivision to be prescribed by the  commissioner.  Upon  at  least
thirty  days  notice  to the board of education, after conclusion of the
school year in which such board increases class sizes as provided pursu-
ant  to this subdivision, the commissioner shall be authorized to termi-
nate such authorization upon a finding that  the  board  has  failed  to
develop or implement an approved corrective action plan.
  S 21-a. Paragraph d of subdivision 15 of section 3641 of the education
law,  as  added  by  section 22-b of part A of chapter 57 of the laws of
2012, is amended to read as follows:
  d. Approved additional expenses for  annual  professional  performance
reviews transition grants pursuant to this subdivision FOR THE TWO THOU-
SAND  TWELVE--TWO  THOUSAND  THIRTEEN  SCHOOL  YEAR shall CONTINUE TO be
eligible for reimbursement. Such approved expenses shall be eligible for
payment on or after September first following the end of the school year
in which such expenses were approved.   In the event  the  appropriation
for  purposes of this subdivision in any year is insufficient to pay all
approved claims pursuant to this subdivision, the commissioner shall pay
such claims on a prorated basis among all districts filing  such  claims
until  the appropriation is exhausted. The commissioner shall promulgate
rules and regulations necessary to  implement  the  provisions  of  this
subdivision  within  sixty  days of the effective date of the chapter of
the laws of two thousand [twelve] THIRTEEN  that  [added]  AMENDED  this
[subdivision] PARAGRAPH.
  S 22. Intentionally omitted.
  S  22-a.  Section 3604 of the education law is amended by adding a new
subdivision 7-b to read as follows:
  7-B. NOTWITHSTANDING THE  PROVISIONS  OF  SUBDIVISION  SEVEN  OF  THIS
SECTION, FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR,
THE  COMMISSIONER SHALL DISREGARD SUCH REDUCTION, UP TO TEN DAYS, IN THE
APPORTIONMENT OF PUBLIC MONEY, IF THE SCHOOLS OF THE DISTRICT  WERE  NOT
IN  SESSION  FOR  ONE  HUNDRED  EIGHTY  DAYS  BECAUSE OF EXTRAORDINARILY
ADVERSE WEATHER CONDITIONS, FEDERAL DECLARATIONS OF NATURAL DISASTERS, A
STATE DISASTER EMERGENCY AS DEFINED IN SECTION TWENTY OF THE   EXECUTIVE
LAW,  THE  CLOSING OF TRANSPORTATION ROUTES PURSUANT TO A DECLARED LOCAL
STATE OF EMERGENCY, IMPAIRMENT OF HEATING FACILITIES,  INSUFFICIENCY  OF
WATER  SUPPLY, SHORTAGE OF FUEL, LACK OF ELECTRICITY, OR THE DESTRUCTION
OF A SCHOOL BUILDING EITHER IN WHOLE OR IN PART, AND  IF,  FURTHER,  THE
DISTRICT SUPERINTENDENT CERTIFIES THAT SUCH DISTRICT CANNOT MAKE UP SUCH
DAYS  OF  INSTRUCTION  BY  USING  FOR THE SECONDARY GRADES ALL SCHEDULED
VACATION DAYS WHICH OCCUR PRIOR TO THE FIRST SCHEDULED  REGENTS EXAMINA-
TION DAY IN JUNE, AND FOR THE ELEMENTARY GRADES ALL  SCHEDULED  VACATION
DAYS  WHICH OCCUR PRIOR TO THE LAST SCHEDULED REGENTS EXAMINATION DAY IN
JUNE; AND IF, FURTHER, THE  DISTRICT  SUPERINTENDENT  CERTIFIES  TO  THE
COMMISSIONER  THAT  TO  DO  SO WOULD IMPERIL STUDENTS, FACULTY AND STAFF
WHILE REPAIRS CONTINUE. FOR THE PURPOSES OF THIS SUBDIVISION, "SCHEDULED
VACATION DAYS" SHALL MEAN DAYS  ON WHICH THE SCHOOLS OF THE DISTRICT ARE
NOT IN SESSION AND FOR WHICH NO PROHIBITION EXISTS IN SUBDIVISION  EIGHT
OF THIS SECTION FOR THEM TO BE IN SESSION.
  S 23. Section 3627 of the education law is REPEALED, and a new section
3627 is added to read as follows:
  S  3627.  TRANSPORTATION  AFTER  4PM.  1.  NOTWITHSTANDING  ANY  OTHER
PROVISIONS OF THIS SECTION TO THE CONTRARY, FOR THE TWO  THOUSAND  THIR-
TEEN--TWO  THOUSAND FOURTEEN SCHOOL YEAR, A CITY SCHOOL DISTRICT LOCATED
IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE PROVIDING TRANSPOR-
TATION PURSUANT TO THIS CHAPTER SHALL BE RESPONSIBLE FOR:

S. 2607--D                         25                         A. 3007--D

  (A) PROVIDING TRANSPORTATION FOR THOSE CHILDREN ATTENDING  PUBLIC  AND
NONPUBLIC  SCHOOLS  IN GRADES KINDERGARTEN THROUGH SIX WHO REMAIN AT THE
SAME SCHOOL FOR WHICH THEY ARE ENROLLED FOR REGULARLY SCHEDULED ACADEMIC
CLASSES FROM HALF-PAST NINE O'CLOCK IN THE MORNING OR EARLIER UNTIL FOUR
O'CLOCK  IN THE AFTERNOON OR LATER, ON WEEKDAYS, AND RESIDE AT LEAST ONE
MILE FROM THEIR SCHOOL OF ATTENDANCE FOR GRADES THREE THROUGH  SIX,  AND
AT  LEAST  ONE-HALF  MILE  FROM  THEIR  SCHOOL  OF ATTENDANCE FOR GRADES
KINDERGARTEN THROUGH TWO OR
  (B) REIMBURSING THE COST INCURRED BY LICENSED TRANSPORTATION  CARRIERS
PURSUANT  TO CONTRACTS WITH SUCH SCHOOL DISTRICT FOR PROVIDING TRANSPOR-
TATION FOR THOSE CHILDREN ATTENDING  PUBLIC  AND  NONPUBLIC  SCHOOLS  IN
GRADES  KINDERGARTEN THROUGH SIX WHO REMAIN AT THE SAME SCHOOL FOR WHICH
THEY  ARE  ENROLLED  FOR  REGULARLY  SCHEDULED  ACADEMIC  CLASSES   FROM
HALF-PAST  NINE  O'CLOCK IN THE MORNING OR EARLIER UNTIL FOUR O'CLOCK IN
THE AFTERNOON OR LATER, ON WEEKDAYS, AND RESIDE AT LEAST ONE  MILE  FROM
THEIR  SCHOOL  OF  ATTENDANCE FOR GRADES THREE THROUGH SIX, AND AT LEAST
ONE-HALF MILE FROM THEIR SCHOOL OF ATTENDANCE  FOR  GRADES  KINDERGARTEN
THROUGH TWO.
  2.  NOTHING HEREIN SHALL PROHIBIT THE SCHOOL DISTRICT FROM REIMBURSING
FOR COSTS INCURRED FOR CONTRACTS BETWEEN THE  SCHOOL  DISTRICT  AND  ANY
ENTITY PROVIDING OR CONTRACTING FOR SUCH TRANSPORTATION SERVICE.
  3.  A  DISTRICT  SHALL  NOT BE DEEMED TO HAVE SATISFIED ITS OBLIGATION
UNDER THIS SECTION BY PROVIDING PUBLIC SERVICE TRANSPORTATION.
  4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  ANY
EXPENDITURES FOR TRANSPORTATION PROVIDED PURSUANT TO THIS SECTION IN THE
TWO  THOUSAND  THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND OTHERWISE
ELIGIBLE FOR TRANSPORTATION AID PURSUANT TO SUBDIVISION SEVEN OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS  ARTICLE  SHALL  BE  CONSIDERED  APPROVED
TRANSPORTATION   EXPENSES  ELIGIBLE  FOR  TRANSPORTATION  AID,  PROVIDED
FURTHER THAT SUCH AID SHALL BE LIMITED TO FIVE MILLION SIX HUNDRED THOU-
SAND DOLLARS. AND PROVIDED FURTHER THAT SUCH EXPENDITURES  ELIGIBLE  FOR
AID  UNDER THIS SECTION SHALL SUPPLEMENT NOT SUPPLANT LOCAL EXPENDITURES
FOR SUCH TRANSPORTATION IN THE TWO THOUSAND TWELVE--TWO  THOUSAND  THIR-
TEEN SCHOOL YEAR.
  5.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION TO THE CONTRA-
RY, IN NO EVENT SHALL SUCH CITY SCHOOL DISTRICT, IN ORDER TO COMPLY WITH
THE REQUIREMENTS OF THIS SECTION, BE REQUIRED  TO  INCUR  ANY  COSTS  IN
EXCESS  OF THE AMOUNT ELIGIBLE FOR TRANSPORTATION AID PURSUANT TO SUBDI-
VISION FOUR OF THIS SECTION. IN THE EVENT SUCH AMOUNT  IS  INSUFFICIENT,
THE  CITY  SCHOOL  DISTRICT  OF  NEW  YORK  SHALL PROVIDE TRANSPORTATION
SERVICES WITHIN SUCH AMOUNT ON AN EQUITABLE BASIS, UNTIL SUCH APPORTION-
MENT IS EXHAUSTED.
  6. THE CHANCELLOR OF SUCH SCHOOL DISTRICT, IN  CONSULTATION  WITH  THE
COMMISSIONER,  SHALL PRESCRIBE THE MOST COST EFFECTIVE SYSTEM FOR IMPLE-
MENTING THE REQUIREMENTS OF THIS SECTION, TAKING INTO CONSIDERATION: (A)
THE COSTS ASSOCIATED WITH PARAGRAPHS (A) AND (B) OF SUBDIVISION  ONE  OF
THIS  SECTION,  AND (B) POLICIES THAT ATTEMPT TO MAXIMIZE STUDENT SAFETY
FOR THE STUDENT TO BE TRANSPORTED, WHICH FOR PURPOSES  OF  THIS  SECTION
SHALL INCLUDE WHETHER THE PICK UP OR DROP OFF SITE OF THE TRANSPORTATION
IS:
  (I) NOT FURTHER THAN 600 FEET FROM THE STUDENT'S RESIDENCE; AND/OR
  (II)  AT  THE  SAME LOCATIONS FOR ANY FAMILY THAT HAVE CHILDREN AT THE
SAME RESIDENCE WHO ATTEND TWO OR MORE DIFFERENT SCHOOLS.
  7. (A) IN THE EVENT THE CHANCELLOR  HAS  NOT  SATISFIED  A  DISTRICT'S
OBLIGATION  UNDER  THIS  SECTION,  A PARENT OR GUARDIAN OR ANY REPRESEN-
TATIVE AUTHORIZED BY SUCH PARENT OR GUARDIAN  OF  A  CHILD  ELIGIBLE  TO

S. 2607--D                         26                         A. 3007--D

RECEIVE  TRANSPORTATION  UNDER THIS SECTION MAY REQUEST THE COMMISSIONER
TO ARRANGE FOR THE PROVISION OF THE TRANSPORTATION  TO  SO  SATISFY  THE
REQUIREMENTS OF THIS SECTION.
  (B)  IF WITHIN SIXTY DAYS OF RECEIVING A REQUEST FROM SUCH A PARENT OR
GUARDIAN OR ANY REPRESENTATIVE AUTHORIZED BY SUCH  PARENT  OR  GUARDIAN,
THE  COMMISSIONER  DETERMINES  THAT  THE  CHANCELLOR HAS NOT SATISFIED A
DISTRICT'S OBLIGATION UNDER THIS SECTION, THEN  THE  COMMISSIONER  SHALL
IMMEDIATELY  DIRECT THE CHANCELLOR TO CONTRACT WITH A LICENSED TRANSPOR-
TATION CARRIER TO PROVIDE THE TRANSPORTATION REQUIRED PURSUANT  TO  THIS
SECTION.
  (C)  IN  THE  EVENT  THE CHANCELLOR IS DIRECTED BY THE COMMISSIONER TO
CONTRACT WITH A LICENSED TRANSPORTATION CARRIER TO PROVIDE THE TRANSPOR-
TATION REQUIRED PURSUANT TO THIS SECTION, THE CHANCELLOR  SHALL  PROVIDE
THE  COMMISSIONER  WITH  A  COPY  OF  SUCH  PROPOSED CONTRACT, BEFORE IT
BECOMES EFFECTIVE, AND THE COMMISSIONER SHALL HAVE THE POWER TO APPROVE,
DISAPPROVE OR REQUIRE AMENDMENTS TO SUCH CONTRACT BEFORE IT SHALL BECOME
EFFECTIVE.
  (D) A DISTRICT, DETERMINED BY THE COMMISSIONER TO NOT BE IN COMPLIANCE
WITH THE REQUIREMENTS OF THIS SECTION, SHALL BE RESPONSIBLE FOR THE COST
OF ANY TRANSPORTATION CONTRACT AWARDED BY THE CHANCELLOR.
  8. THE PARENT OR GUARDIAN, OR ANY REPRESENTATIVE  AUTHORIZED  BY  SUCH
PARENT  OR  GUARDIAN,  MAY  SUBMIT  A WRITTEN REQUEST FOR TRANSPORTATION
UNDER THIS SECTION, IN THE SAME MANNER AND UPON THE SAME  DATES  AS  ARE
REQUIRED FOR A REQUEST FOR TRANSPORTATION PURSUANT TO SUBDIVISION TWO OF
SECTION THIRTY-SIX HUNDRED THIRTY-FIVE OF THIS ARTICLE.
  S 23-a. Intentionally omitted.
  S 23-b. Subdivision a of section 5 of chapter 121 of the laws of 1996,
relating  to  authorizing  the  Roosevelt  union free school district to
finance deficits by the issuance of serial bonds, as amended by  section
27-b  of part A of chapter 57 of the laws of 2012, is amended to read as
follows:
  a. Notwithstanding any other provisions of law,  upon  application  to
the  commissioner of education submitted not sooner than April first and
not later than June thirtieth of the applicable school year, the  Roose-
velt  union  free school district shall be eligible to receive an appor-
tionment pursuant to this chapter for salary expenses, including related
benefits, incurred between April first and June thirtieth of such school
year.  Such apportionment shall not exceed:  for the 1996-97 school year
through  the  [2012-13]  2013-14  school  year,  four  million   dollars
($4,000,000);  for  the  [2013-14]  2014-15  school  year, three million
dollars ($3,000,000); for  the  [2014-2015]  2015-16  school  year,  two
million dollars ($2,000,000); for the [2015-16] 2016-17 school year, one
million dollars ($1,000,000); and for the [2016-17] 2017-18 school year,
zero  dollars.  Such annual application shall be made after the board of
education has adopted a resolution to do so with  the  approval  of  the
commissioner of education.
  S  24.  Subparagraphs (i) and (ii) of paragraph c of subdivision 11 of
section 4410 of the education law, subparagraph (i) as amended by  chap-
ter  82  of the laws of 1995 and subparagraph (ii) as amended by chapter
205 of the laws of 2009, are amended to read as follows:
  (i) Each municipality, or, in addition, in the case of a city  of  one
million  or  more persons, the board, may perform a fiscal audit of such
services or programs for which it bears fiscal responsibility in accord-
ance with audit standards established by  the  commissioner,  which  may
include  site  visitation.  THE  DEPARTMENT  SHALL PROVIDE GUIDELINES ON
STANDARDS AND PROCEDURES TO MUNICIPALITIES AND BOARDS, FOR FISCAL AUDITS

S. 2607--D                         27                         A. 3007--D

OF SERVICES OR PROGRAMS PURSUANT TO THIS SECTION. Prior to commencing  a
fiscal  audit pursuant to this subparagraph, a municipality shall ascer-
tain that neither the state nor any other municipality has  performed  a
fiscal  audit of the same services or programs within the current fiscal
year for such program. If it is determined that no such audit  has  been
performed,  the municipality shall inquire with the department to deter-
mine which other municipalities, if any, bear  financial  responsibility
for  the  services or programs to be audited and shall afford such other
municipalities an opportunity to recommend issues to be examined through
the audit.  Municipalities completing audits pursuant to  this  subpara-
graph  shall  provide  copies  to  the  department,  the provider of the
services and programs and all other municipalities previously determined
to bear financial responsibility for the audited services and  programs.
No other municipality may conduct an additional fiscal audit of the same
services or programs during such current fiscal year for such program.
  (ii)  Payments  made pursuant to this section by a municipality shall,
upon conclusion of the July first to  June  thirtieth  school  year  for
which  such  payment  was  made,  be subject to audit against the actual
difference between such audited expenditures and revenues.  The  munici-
pality  shall  submit  the results of any such audit to the commissioner
and the commissioner of social services, if appropriate, for review and,
if warranted, adjustment of the tuition and/or  maintenance  rates.  The
municipality is authorized to recover overpayments made to a provider of
special  services  or programs pursuant to this section as determined by
the commissioner or the commissioner of health based upon their  adjust-
ment of a tuition and/or maintenance rate, PROVIDED THAT FOR PURPOSES OF
MAKING SUCH ADJUSTMENT AND RECOVERY, THE MUNICIPALITY SHALL BE DEEMED TO
HAVE  PAID  ONE  HUNDRED PERCENT OF THE DISALLOWED COSTS.  Such recovery
may be accomplished by withholding such amount from any moneys  due  the
provider  in  the current year, or by direct reimbursement.  THE COMMIS-
SIONER SHALL PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE
PROVISIONS OF THIS PARAGRAPH WITHIN SIXTY DAYS OF THE EFFECTIVE DATE  OF
THE  CHAPTER  OF  THE  LAWS  OF TWO THOUSAND THIRTEEN WHICH AMENDED THIS
SUBPARAGRAPH.
  S 24-a. Notwithstanding any provision of the law to the contrary,  for
a school district with a penalty arising from the late filing of a final
cost  report  pursuant to section 31 of part A of chapter 57 of the laws
of 2012 where such  penalty  exceeds  $4,000,000  and  also  exceeds  30
percent  of  such district's total general fund expenditures for 2010-11
school year, the commissioner shall recover such penalty  in  ten  equal
annual  installments  beginning  the  later  of June 2014 or June of the
school year in which such district is notified of the penalty.  Provided
further that such district may elect to make an initial payment no later
than  thirty days in advance of the first annual installment which shall
reduce the amount of each annual installment.
  S 25.  Paragraph a-1 of subdivision 11 of section 3602 of  the  educa-
tion law, as amended by section 7 of part A of chapter 57 of the laws of
2012, is amended to read as follows:
  a-1.  Notwithstanding  the  provisions of paragraph a of this subdivi-
sion, for aid payable in the school years two thousand--two thousand one
through two thousand nine--two thousand ten, and two  thousand  eleven--
two thousand twelve through two thousand [twelve] THIRTEEN--two thousand
[thirteen]  FOURTEEN,  the  commissioner  may set aside an amount not to
exceed two million five hundred thousand dollars from the  funds  appro-
priated  for  purposes  of  this  subdivision for the purpose of serving
persons twenty-one years of age or older who have not been  enrolled  in

S. 2607--D                         28                         A. 3007--D

any  school  for  the  preceding school year, including persons who have
received a high school diploma or high school  equivalency  diploma  but
fail  to  demonstrate basic educational competencies as defined in regu-
lation  by  the  commissioner,  when  measured  by accepted standardized
tests, and who shall be eligible to attend employment preparation educa-
tion programs operated pursuant to this subdivision.
  S 25-a. Subdivision 8 of section 4401 of the education law, as amended
by chapter 57 of the laws of 1993, is amended to read as follows:
  8. "School district basic contribution" shall mean an amount equal  to
the  total  school district local property and non-property tax levy for
the base year divided by the base year public school district enrollment
of resident pupils of the school district as defined in paragraph  n  of
subdivision  one  of  section  thirty-six  hundred  two of this chapter,
EXCEPT THAT FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN  SCHOOL
YEAR,  FOR SCHOOL DISTRICTS OTHER THAN CENTRAL HIGH SCHOOL DISTRICTS AND
THEIR COMPONENTS, SUCH TAX LEVY FOR THE BASE YEAR SHALL  BE  DIVIDED  BY
THE YEAR PRIOR TO THE BASE YEAR PUPIL COUNT AS DETERMINED BY THE COMMIS-
SIONER  PURSUANT TO PARAGRAPH F OF SUBDIVISION TWO OF SECTION THIRTY-SIX
HUNDRED TWO OF THIS CHAPTER FOR ANY SCHOOL DISTRICT IN WHICH  SUCH  YEAR
PRIOR  TO THE BASE YEAR PUPIL COUNT EXCEEDS ONE HUNDRED FIFTY PERCENT OF
SUCH BASE YEAR PUBLIC SCHOOL DISTRICT ENROLLMENT OF RESIDENT PUPILS.
  S 26. Section 7 of chapter 472 of the laws of 1998 amending the educa-
tion law relating to the lease of school buses by school  districts,  as
amended  by  section  71 of part A of chapter 58 of the laws of 2011, is
amended to read as follows:
  S 7. This act shall take effect September 1, 1998,  and  shall  expire
and be deemed repealed September 1, [2013] 2015.
  S  27.  Subdivision b of section 2 of chapter 756 of the laws of 1992,
relating to funding a program for work force education conducted by  the
consortium  for worker education in New York city, as amended by section
13 of part A of chapter 57 of the laws of 2012, is amended  to  read  as
follows:
  b.  Reimbursement for programs approved in accordance with subdivision
a of this section [for the 2009-10 school year  shall  not  exceed  64.1
percent of the lesser of such approvable costs per contact hour or elev-
en  dollars  and  fifty  cents  per contact hour, reimbursement] for the
2010--2011 school year shall not exceed 62.6 percent of  the  lesser  of
such  approvable costs per contact hour or twelve dollars and five cents
per contact hour, reimbursement for the 2011--2012 school year shall not
exceed 62.9 percent of the lesser of such approvable costs  per  contact
hour  or  twelve  dollars  and  fifteen  cents  per  contact hour, [and]
reimbursement for the 2012--2013  school  year  shall  not  exceed  63.3
percent  of  the  lesser  of  such  approvable costs per contact hour or
twelve dollars and thirty-five cents per contact hour, AND REIMBURSEMENT
FOR THE 2013--2014 SCHOOL YEAR SHALL NOT  EXCEED  62.3  PERCENT  OF  THE
LESSER  OF  SUCH APPROVABLE COSTS PER CONTACT HOUR OR TWELVE DOLLARS AND
SIXTY-FIVE CENTS PER CONTACT HOUR, where a contact hour represents sixty
minutes of instruction services provided to an eligible adult.  Notwith-
standing any other provision of law to the contrary,  [for  the  2009-10
school  year  such  contact  hours  shall  not  exceed one million seven
hundred sixty--three thousand  nine  hundred  seven  (1,763,907)  hours;
whereas]  for  the  2010--2011  school year such contact hours shall not
exceed one million five hundred twenty-five thousand one  hundred  nine-
ty-eight  (1,525,198) hours; whereas for the 2011--2012 school year such
contact hours shall not exceed one million seven  hundred  one  thousand
five  hundred  seventy  (1,701,570)  hours;  whereas  for the 2012--2013

S. 2607--D                         29                         A. 3007--D

school year such contact hours shall not exceed one million six  hundred
sixty-four  thousand  five hundred thirty-two (1,664,532) hours; WHEREAS
FOR THE 2013--2014 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT  EXCEED  ONE
MILLION   SIX   HUNDRED  FORTY-NINE  THOUSAND  SEVEN  HUNDRED  FORTY-SIX
(1,649,746) HOURS.  Notwithstanding any other provision of  law  to  the
contrary,  the  apportionment calculated for the city school district of
the city of New York pursuant to subdivision 11 of section 3602  of  the
education law shall be computed as if such contact hours provided by the
consortium  for  worker  education,  not to exceed the contact hours set
forth herein, were eligible for aid in accordance with the provisions of
such subdivision 11 of section 3602 of the education law.
  S 28. Section 4 of chapter 756 of the laws of 1992, relating to  fund-
ing  a  program for work force education conducted by the consortium for
worker education in New York city, is amended by adding a  new  subdivi-
sion r to read as follows:
  R.  THE  PROVISIONS  OF  THIS  SUBDIVISION  SHALL  NOT APPLY AFTER THE
COMPLETION OF PAYMENTS FOR THE 2013--2014 SCHOOL  YEAR.  NOTWITHSTANDING
ANY  INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION SHALL
WITHHOLD A PORTION OF EMPLOYMENT PREPARATION EDUCATION AID  DUE  TO  THE
CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
TO  THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE ACCOUNT
AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).
  S 29. Section 6 of chapter 756 of the laws of 1992, relating to  fund-
ing  a  program for work force education conducted by the consortium for
worker education in New York city, as amended by section 15 of part A of
chapter 57 of the laws of 2012, is amended to read as follows:
  S 6. This act shall take effect July 1,  1992,  and  shall  be  deemed
repealed on June 30, [2013] 2014.
  S 30. Subdivision 1 of section 167 of chapter 169 of the laws of 1994,
relating  to certain provisions related to the 1994-95 state operations,
aid to localities, capital projects and debt service budgets, as amended
by section 17 of part A of chapter 57 of the laws of 2012, is amended to
read as follows:
  1. Sections one through seventy of this act shall be  deemed  to  have
been  in  full  force  and effect as of April 1, 1994 provided, however,
that  sections  one,  two,  twenty-four,  twenty-five  and  twenty-seven
through seventy of this act shall expire and be deemed repealed on March
31, 2000; provided, however, that section twenty of this act shall apply
only  to  hearings  commenced  prior  to September 1, 1994, and provided
further that section twenty-six of this act shall expire and  be  deemed
repealed  on  March  31,  1997;  and provided further that sections four
through fourteen, sixteen, and eighteen, nineteen and twenty-one through
twenty-one-a of this act shall expire and be deemed  repealed  on  March
31,  1997; and provided further that sections three, fifteen, seventeen,
twenty, twenty-two and twenty-three of this  act  shall  expire  and  be
deemed repealed on March 31, [2014] 2015.
  S  31. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
of 1995, amending the education law and certain other laws  relating  to
state  aid  to  school  districts and the appropriation of funds for the
support of government, as amended by section 18 of part A of chapter  57
of the laws of 2012, are amended to read as follows:
  (22)  sections  one  hundred twelve, one hundred thirteen, one hundred
fourteen, one hundred fifteen and one hundred sixteen of this act  shall
take effect on July 1, 1995; provided, however, that section one hundred

S. 2607--D                         30                         A. 3007--D

thirteen of this act shall remain in full force and effect until July 1,
[2013] 2014 at which time it shall be deemed repealed;
  (24)  sections one hundred eighteen through one hundred thirty of this
act shall be deemed to have been in full force and effect on  and  after
July 1, 1995; provided further, however, that the amendments made pursu-
ant  to  section  one hundred nineteen of this act shall be deemed to be
repealed on and after July 1, [2013] 2014;
  S 32. Section 12 of chapter 147 of the  laws  of  2001,  amending  the
education  law  relating  to conditional appointment of school district,
charter school or BOCES employees, as amended by section 20 of part A of
chapter 57 of the laws of 2012, is amended to read as follows:
  S 12. This act shall take effect on the same date as  chapter  180  of
the laws of 2000 takes effect, and shall expire July 1, [2013] 2014 when
upon such date the provisions of this act shall be deemed repealed.
  S 32-a. Subdivision 10 of section 6-p of the general municipal law, as
amended  by section 30-a of part A of chapter 57 of the laws of 2012, is
amended to read as follows:
  10. Notwithstanding any provision of law to the contrary, the  govern-
ing board of a school district may, during the [two thousand twelve--two
thousand  thirteen]  TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN school
year, authorize a withdrawal from this fund in an amount not  to  exceed
the  lesser  of:  (a)  the dollar value of excess funding in the fund as
determined by the comptroller pursuant to section thirty-three  of  this
chapter  or (b) the amount of the school district's remaining gap elimi-
nation adjustment as calculated by the commissioner of education  pursu-
ant  to  subdivision  seventeen of section thirty-six hundred two of the
education law. Funds withdrawn pursuant to this subdivision may only  be
used  for  the purpose of maintaining educational programming during the
[two thousand twelve--two thousand thirteen] TWO THOUSAND  THIRTEEN--TWO
THOUSAND FOURTEEN school year which otherwise would have been reduced as
a result of such gap elimination adjustment. Governing boards which make
such a withdrawal shall submit, in a form prescribed by the commissioner
of  education,  relevant  information  about the withdrawal, which shall
include but not be limited to, the amount of such withdrawal,  the  date
of withdrawal, and the use of such withdrawn funds.
  S  33.  Section  4  of  chapter  425 of the laws of 2002, amending the
education law relating to  the  provision  of  supplemental  educational
services,  attendance  at  a  safe  public  school and the suspension of
pupils who bring a firearm to or possess  a  firearm  at  a  school,  as
amended  by  section  21 of part A of chapter 57 of the laws of 2012, is
amended to read as follows:
  S 4. This act shall take effect July 1, 2002 and shall expire  and  be
deemed repealed June 30, [2013] 2014.
  S  34.  Section  5  of  chapter  101 of the laws of 2003, amending the
education law relating to implementation of the No Child Left Behind Act
of 2001, as amended by section 22 of part A of chapter 57 of the laws of
2012, is amended to read as follows:
  S 5. This act shall take effect immediately;  provided  that  sections
one,  two  and  three of this act shall expire and be deemed repealed on
June 30, [2013] 2014.
  S 35. School bus driver training. In addition to apportionments other-
wise provided by section 3602 of the education law, for aid  payable  in
the 2013--2014 school year, the commissioner of education shall allocate
school  bus  driver  training  grants  to school districts and boards of
cooperative education services pursuant to sections 3650-a,  3650-b  and
3650-c of the education law, or for contracts directly with not-for-pro-

S. 2607--D                         31                         A. 3007--D

fit  educational  organizations  for  the purposes of this section. Such
payments shall not exceed four hundred thousand dollars  ($400,000)  per
school year.
  S  36.  Support  of  public libraries. The moneys appropriated for the
support of public libraries by the chapter of the laws of 2013  enacting
the  aid  to  localities  budget shall be apportioned for the 2013--2014
state fiscal year in accordance with the  provisions  of  sections  271,
272,  273,  282,  284,  and  285  of the education law as amended by the
provisions of this chapter and the provisions of this act, provided that
library construction aid pursuant to section 273-a of the education  law
shall  not  be payable from the appropriations for the support of public
libraries and provided  further  that  no  library,  library  system  or
program, as defined by the commissioner of education, shall receive less
total  system  or  program  aid than it received for the year 2001--2002
except as a result of a reduction adjustment necessary to conform to the
appropriations for support of public libraries.
  Notwithstanding any other provision of law to the contrary the  moneys
appropriated for the support of public libraries for the year 2013--2014
by  a  chapter of the laws of 2013 enacting the aid to localities budget
shall fulfill the state's obligation to provide such aid  and,  pursuant
to a plan developed by the commissioner of education and approved by the
director of the budget, the aid payable to libraries and library systems
pursuant  to  such  appropriations  shall  be reduced proportionately to
assure that the total amount of aid payable does not  exceed  the  total
appropriations for such purpose.
  S  37.  Special apportionment for salary expenses.  a. Notwithstanding
any other provision of law, upon  application  to  the  commissioner  of
education,  not  sooner  than  the first day of the second full business
week of June, 2014 and not later than the last day  of  the  third  full
business  week  of  June, 2014, a school district eligible for an appor-
tionment pursuant to section 3602 of the education law shall be eligible
to receive an apportionment pursuant to this  section,  for  the  school
year  ending June 30, 2014, for salary expenses incurred between April 1
and June 30, 2014 and such apportionment shall not exceed the sum of (i)
the deficit reduction assessment of  1990--1991  as  determined  by  the
commissioner  of  education, pursuant to paragraph f of subdivision 1 of
section 3602 of the education law, as in effect through June  30,  1993,
plus  (ii)  186  percent  of such amount for a city school district in a
city with a population in excess of 1,000,000  inhabitants,  plus  (iii)
209  percent  of such amount for a city school district in a city with a
population of more than 195,000 inhabitants and less than 219,000 inhab-
itants according to the latest federal census, plus  (iv)  the  net  gap
elimination adjustment for 2010--2011, as determined by the commissioner
of  education  pursuant  to chapter 53 of the laws of 2010, plus (v) the
gap elimination adjustment for 2011--2012 as determined by  the  commis-
sioner  of  education  pursuant to subdivision 17 of section 3602 of the
education law, and provided further that such  apportionment  shall  not
exceed  such salary expenses. Such application shall be made by a school
district, after the board of education or trustees have adopted a resol-
ution to do so and in the case of a city school district in a city  with
a  population in excess of 125,000 inhabitants, with the approval of the
mayor of such city.
  b. The claim for an apportionment to be  paid  to  a  school  district
pursuant  to  subdivision  a  of  this section shall be submitted to the
commissioner of education on a form prescribed  for  such  purpose,  and
shall  be  payable upon determination by such commissioner that the form

S. 2607--D                         32                         A. 3007--D

has been submitted as prescribed. Such approved amounts shall be payable
on the same day in September of the school year following  the  year  in
which  application  was  made as funds provided pursuant to subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law,  on  the  audit  and  warrant  of the state comptroller on vouchers
certified or approved by the commissioner of  education  in  the  manner
prescribed  by  law  from  moneys in the state lottery fund and from the
general fund to the extent that the amount paid  to  a  school  district
pursuant  to  this  section  exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the  school  year  following  the
year in which application was made.
  c.  Notwithstanding  the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be  deducted  from  the
following  payments  due  the  school  district  during  the school year
following the year in which application was made  pursuant  to  subpara-
graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the  lottery
apportionment  payable  pursuant  to  subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's  payments  to  the
teachers'  retirement  system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
due the district pursuant to paragraph b of such  subdivision  shall  be
deducted on a chronological basis starting with the earliest payment due
the district.
  S  38. Special apportionment for public pension accruals. a.  Notwith-
standing any other provision of law, upon application to the commission-
er of education, not later than June 30, 2014, a school district  eligi-
ble  for  an apportionment pursuant to section 3602 of the education law
shall be eligible to receive an apportionment pursuant to this  section,
for  the  school  year ending June 30, 2014 and such apportionment shall
not exceed the  additional  accruals  required  to  be  made  by  school
districts  in the 2004--2005 and 2005--2006 school years associated with
changes for such public pension liabilities. The amount  of  such  addi-
tional  accrual  shall  be certified to the commissioner of education by
the president of the board of education or the trustees or, in the  case
of  a  city  school  district  in  a city with a population in excess of
125,000 inhabitants, the mayor of such city. Such application  shall  be
made by a school district, after the board of education or trustees have
adopted  a resolution to do so and in the case of a city school district
in a city with a population in excess of 125,000 inhabitants,  with  the
approval of the mayor of such city.
  b.  The  claim  for  an  apportionment to be paid to a school district
pursuant to subdivision a of this section  shall  be  submitted  to  the
commissioner  of  education  on  a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that  the  form
has been submitted as prescribed. Such approved amounts shall be payable
on  the  same  day in September of the school year following the year in
which application was made as funds provided  pursuant  to  subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law,  on  the  audit  and  warrant  of the state comptroller on vouchers
certified or approved by the commissioner of  education  in  the  manner
prescribed  by  law  from  moneys in the state lottery fund and from the
general fund to the extent that the amount paid  to  a  school  district

S. 2607--D                         33                         A. 3007--D

pursuant  to  this  section  exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the  school  year  following  the
year in which application was made.
  c.  Notwithstanding  the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be  deducted  from  the
following  payments  due  the  school  district  during  the school year
following the year in which application was made  pursuant  to  subpara-
graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the  lottery
apportionment  payable  pursuant  to  subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's  payments  to  the
teachers'  retirement  system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
due the district pursuant to paragraph b of such  subdivision  shall  be
deducted on a chronological basis starting with the earliest payment due
the district.
  S  39.  a.  Notwithstanding  any  other law, rule or regulation to the
contrary, any moneys appropriated to the state education department  may
be  suballocated  to  other state departments or agencies, as needed, to
accomplish the intent of the specific appropriations contained therein.
  b. Notwithstanding any other law, rule or regulation to the  contrary,
moneys  appropriated  to the state education department from the general
fund/aid to localities,  local  assistance  account-001,  shall  be  for
payment  of  financial  assistance,  as scheduled, net of disallowances,
refunds, reimbursement and credits.
  c. Notwithstanding any other law, rule or regulation to the  contrary,
all  moneys  appropriated  to  the state education department for aid to
localities shall be available for payment of aid heretofore or hereafter
to accrue and may be suballocated to other departments and  agencies  to
accomplish the intent of the specific appropriations contained therein.
  d.  Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated  to  the  state  education  department  for  general
support  for  public  schools may be interchanged with any other item of
appropriation for general support for public schools within the  general
fund  local  assistance  account office of prekindergarten through grade
twelve education programs.
  S 40. Notwithstanding the provision of any law, rule, or regulation to
the contrary, the city school district of the city  of  Rochester,  upon
the  consent  of  the  board  of cooperative educational services of the
supervisory district serving its geographic  region  may  purchase  from
such  board  for  the  2013--2014 school year, as a non-component school
district, services required by article 19 of the education law.
  S 41. The amounts specified in this section shall be a  setaside  from
the  state  funds  which  each such district is receiving from the total
foundation aid:
  a. for the purpose of the development,  maintenance  or  expansion  of
magnet schools or magnet school programs for the 2013--2014 school year.
To  the city school district of the city of New York there shall be paid
forty-eight  million   one   hundred   seventy-five   thousand   dollars
($48,175,000) including five hundred thousand dollars ($500,000) for the
Andrew  Jackson  High School; to the Buffalo city school district, twen-
ty-one  million  twenty-five  thousand  dollars  ($21,025,000);  to  the
Rochester  city  school district, fifteen million dollars ($15,000,000);

S. 2607--D                         34                         A. 3007--D

to  the  Syracuse  city  school  district,  thirteen   million   dollars
($13,000,000);  to  the Yonkers city school district, forty-nine million
five hundred thousand dollars ($49,500,000); to the Newburgh city school
district,   four   million   six  hundred  forty-five  thousand  dollars
($4,645,000); to the Poughkeepsie city school district, two million four
hundred seventy-five thousand dollars ($2,475,000); to the Mount  Vernon
city  school  district,  two  million  dollars  ($2,000,000); to the New
Rochelle city school district, one million  four  hundred  ten  thousand
dollars  ($1,410,000);  to  the  Schenectady  city  school district, one
million eight hundred thousand dollars ($1,800,000); to the Port Chester
city school district, one million one  hundred  fifty  thousand  dollars
($1,150,000);  to  the  White  Plains city school district, nine hundred
thousand dollars ($900,000); to the Niagara Falls city school  district,
six  hundred  thousand  dollars  ($600,000);  to  the Albany city school
district,  three   million   five   hundred   fifty   thousand   dollars
($3,550,000);  to  the  Utica  city school district, two million dollars
($2,000,000); to the Beacon city school district, five hundred sixty-six
thousand dollars ($566,000); to the  Middletown  city  school  district,
four  hundred  thousand  dollars  ($400,000); to the Freeport union free
school district, four hundred thousand dollars ($400,000); to the Green-
burgh  central  school  district,   three   hundred   thousand   dollars
($300,000);  to  the Amsterdam city school district, eight hundred thou-
sand dollars ($800,000); to the  Peekskill  city  school  district,  two
hundred  thousand  dollars  ($200,000);  and  to  the Hudson city school
district, four hundred thousand dollars ($400,000).
  b. notwithstanding the provisions of subdivision a of this section,  a
school  district receiving a grant pursuant to this section may use such
grant funds for: (i) any instructional or  instructional  support  costs
associated  with  the operation of a magnet school; or (ii) any instruc-
tional or instructional support costs associated with implementation  of
an alternative approach to reduction of racial isolation and/or enhance-
ment of the instructional program and raising of standards in elementary
and  secondary  schools  of  school districts having substantial concen-
trations of minority students. The commissioner of education  shall  not
be authorized to withhold magnet grant funds from a school district that
used  such  funds in accordance with this paragraph, notwithstanding any
inconsistency with a request for proposals issued by such commissioner.
  c. for the purpose of attendance improvement  and  dropout  prevention
for  the  2013--2014 school year, for any city school district in a city
having a population of more than one million, the setaside  for  attend-
ance improvement and dropout prevention shall equal the amount set aside
in the base year. For the 2013--2014 school year, it is further provided
that any city school district in a city having a population of more than
one  million shall allocate at least one-third of any increase from base
year levels in funds set aside pursuant  to  the  requirements  of  this
subdivision  to  community-based  organizations.  Any  increase required
pursuant to this subdivision to community-based organizations must be in
addition to allocations provided to community-based organizations in the
base year.
  d. for the purpose of teacher support for the 2013--2014 school  year:
to  the  city school district of the city of New York, sixty-two million
seven hundred seven thousand dollars ($62,707,000); to the Buffalo  city
school  district,  one  million seven hundred forty-one thousand dollars
($1,741,000); to the Rochester city school district, one million  seven-
ty-six  thousand  dollars  ($1,076,000);  to  the  Yonkers  city  school
district,  one  million  one  hundred   forty-seven   thousand   dollars

S. 2607--D                         35                         A. 3007--D

($1,147,000);  and  to  the Syracuse city school district, eight hundred
nine thousand dollars ($809,000). All funds made available to  a  school
district  pursuant to this subdivision shall be distributed among teach-
ers  including prekindergarten teachers and teachers of adult vocational
and academic subjects in accordance with this subdivision and  shall  be
in  addition  to  salaries  heretofore  or  hereafter negotiated or made
available; provided, however, that all  funds  distributed  pursuant  to
this  section  for  the  current year shall be deemed to incorporate all
funds distributed pursuant to former subdivision 27 of section  3602  of
the  education law for prior years. In school districts where the teach-
ers are represented by certified or recognized  employee  organizations,
all salary increases funded pursuant to this section shall be determined
by separate collective negotiations conducted pursuant to the provisions
and  procedures  of article 14 of the civil service law, notwithstanding
the existence of a negotiated agreement between a school district and  a
certified or recognized employee organization.
  S 42. Severability. The provisions of this act shall be severable, and
if  the  application  of  any  clause, sentence, paragraph, subdivision,
section or part of this act to  any  person  or  circumstance  shall  be
adjudged  by  any  court  of  competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section, part
of this act or remainder thereof, as the  case  may  be,  to  any  other
person  or  circumstance,  but shall be confined in its operation to the
clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
directly  involved  in the controversy in which such judgment shall have
been rendered.
  S 43. This act shall take effect immediately, and shall be  deemed  to
have been in full force and effect on and after April 1, 2013, provided,
however, that:
  1. Section five of this act shall take effect immediately and shall be
deemed  to have been in full force and effect on and after July 1, 2010;
provided, further, that the amendments to subdivision 1 of section  2856
of  the  education law made by section five of this act shall be subject
to the expiration and reversion of such subdivision pursuant to  section
27  of  chapter 378 of the laws of 2007, as amended, when upon such date
the provisions of section six of this act shall take effect;
  2. Section seven-a of this act shall expire and be deemed repealed May
1, 2014; provided that the expiration and repeal of such  section  shall
not  affect  the  duration of any annual professional performance review
plan implemented on or before the expiration and repeal of such  section
or  the  ability of school districts and collective bargaining represen-
tatives representing classroom teachers and building principals to enter
into a new or amended agreement pursuant to section 3012-c of the educa-
tion law;
  3. Section nine of this act shall take effect July 1, 2014;
  4. Sections one, eight-a, eleven, twelve, fourteen, fifteen, nineteen,
twenty-one, twenty-three, twenty-five, twenty-seven, twenty-eight, thir-
ty-two-a, thirty-five and forty-one of this act shall take  effect  July
1, 2013;
  5.    The  amendments  to  section 2590-h of the education law made by
section twenty-a of this act shall not affect  the  expiration  of  such
section and shall be deemed to expire therewith;
  6.  The  amendments  to subdivision 6 of section 4402 of the education
law made by section twenty-one of this act shall not affect  the  repeal
of such subdivision and shall be deemed repealed therewith;

S. 2607--D                         36                         A. 3007--D

  7.  The  amendments  to  chapter  756 of the laws of 1992, relating to
funding a program for work force education conducted by a consortium for
worker education in New York city, made  by  sections  twenty-seven  and
twenty-eight of this act shall not affect the repeal of such chapter and
shall be deemed repealed therewith;
  8. Section thirty-nine of this act shall expire and be deemed repealed
June 30, 2014; and
  9.  Section  eighteen of this act shall be deemed to have been in full
force and effect on and after July 1, 2012.

                                 PART B

  Section 1. Section 350 of the education law is amended by adding  four
new subdivisions 10, 11, 12 and 13 to read as follows:
  10.  "DORMITORY  FACILITIES  REVENUE  FUND" MEANS THE FUND ESTABLISHED
PURSUANT TO SECTION SIXTEEN HUNDRED EIGHTY-Q OF THE  PUBLIC  AUTHORITIES
LAW.
  11. "DORMITORY FACILITIES REVENUES" MEANS ALL MONEYS, INCLUDING RENTS,
FEES AND CHARGES, DERIVED FROM THE USE OR OCCUPANCY OF DORMITORY FACILI-
TIES.
  12. "DORMITORY FACILITY" MEANS A DORMITORY, AS SUCH TERM IS DEFINED IN
PARAGRAPH  (A) OF SUBDIVISION TWO OF SECTION SIXTEEN HUNDRED SEVENTY-SIX
OF THE PUBLIC AUTHORITIES LAW.
  13. "DORMITORY FACILITY REVENUE BOND" MEANS ANY NOTE OR  BOND  OF  THE
DORMITORY  AUTHORITY  (I) ISSUED ON OR AFTER THE FIRST DAY OF APRIL, TWO
THOUSAND THIRTEEN FOR THE PURPOSES OF FINANCING DORMITORY FACILITIES  OR
REFINANCING NOTES OR BONDS PREVIOUSLY ISSUED IN CONNECTION WITH DORMITO-
RY  FACILITIES, INCLUDING NOTES OR BONDS ISSUED TO PAY COSTS INCURRED IN
CONNECTION WITH THE ISSUANCE OF SUCH NOTES OR BONDS, TO FUND ANY RESERVE
FOR THE PAYMENT OF DEBT SERVICE ON SUCH BONDS  OR  NOTES,  TO  FUND  ANY
RESERVE  ESTABLISHED  FOR  THE IMPROVEMENT, REPAIR, MAINTENANCE OR OPER-
ATIONS OF DORMITORY FACILITIES, OR TO PAY OR PROVIDE FOR THE PAYMENT  OF
ANY  NOTE  OR  BOND  PREVIOUSLY ISSUED FOR ANY SUCH PURPOSE, AND (II) IS
PAYABLE FROM MONEYS ON DEPOSIT IN THE DORMITORY FACILITIES REVENUE  FUND
AND IS NOT PAYABLE FROM ANY REVENUE OF THE STATE.
  S  2.  Subdivision 2 of section 355 of the education law is amended by
adding a new paragraph y to read as follows:
  Y. TO BETTER SECURE DORMITORY AUTHORITY  BONDS  ISSUED  IN  CONNECTION
WITH  DORMITORY  FACILITIES, INCLUDING DORMITORY FACILITY REVENUE BONDS,
THE STATE UNIVERSITY OF NEW YORK IS HEREBY AUTHORIZED, IN ITS OWN  NAME,
TO ASSIGN OR OTHERWISE TRANSFER TO THE DORMITORY AUTHORITY ANY OR ALL OF
THE STATE UNIVERSITY'S RIGHTS, TITLE AND INTEREST IN AND TO THE DORMITO-
RY  FACILITY  REVENUES,  AND TO ENTER INTO AGREEMENTS WITH THE DORMITORY
AUTHORITY PURSUANT TO SUBDIVISION TWO OF SECTION SIXTEEN HUNDRED  EIGHT-
Y-Q  OF  THE PUBLIC AUTHORITIES LAW IN FURTHERANCE OF SUCH ASSIGNMENT OR
TRANSFER. ANY ASSIGNMENT OR TRANSFER MADE  PURSUANT  TO  THIS  PARAGRAPH
SHALL  CONSTITUTE  A  TRUE  SALE  AND ABSOLUTE TRANSFER OF THE DORMITORY
FACILITIES REVENUES. THE CHARACTERIZATION OF SUCH ASSIGNMENT OR TRANSFER
SHALL NOT BE NEGATED OR ADVERSELY AFFECTED BY THE RETENTION BY THE STATE
UNIVERSITY OF NEW YORK OF ANY OWNERSHIP INTEREST IN THE DORMITORY FACIL-
ITIES REVENUES OR OF ANY RESIDUAL RIGHT  TO  PAYMENT  OF  ANY  DORMITORY
FACILITY  REVENUES  REMAINING  IN  THE DORMITORY FACILITIES REVENUE FUND
AFTER THE MONEYS THEREIN HAVE BEEN APPLIED IN ACCORDANCE WITH  PARAGRAPH
(B)  OF  SUBDIVISION  THREE  OF  SECTION SIXTEEN HUNDRED EIGHTY-Q OF THE
PUBLIC AUTHORITIES LAW. ALL RIGHTS, TITLE AND INTEREST  IN  AND  TO  ANY
MONEYS  PAID  TO  OR  UPON THE ORDER OF THE STATE UNIVERSITY OF NEW YORK

S. 2607--D                         37                         A. 3007--D

PURSUANT TO ANY AGREEMENT BY AND BETWEEN THE DORMITORY AUTHORITY AND THE
STATE UNIVERSITY OF NEW YORK ENTERED INTO PURSUANT TO SUBDIVISION TWO OF
SECTION SIXTEEN HUNDRED EIGHTY-Q OF THE PUBLIC AUTHORITIES LAW OR PURSU-
ANT TO ANY AGREEMENT ENTERED INTO PURSUANT TO PARAGRAPH J OF SUBDIVISION
TWO  OF  SECTION  SIXTEEN  HUNDRED  EIGHTY OF THE PUBLIC AUTHORITIES LAW
SHALL VEST IN THE STATE UNIVERSITY OF NEW YORK AND BE THE ABSOLUTE PROP-
ERTY OF THE STATE UNIVERSITY OF NEW YORK, AND  THE  DORMITORY  AUTHORITY
SHALL NO LONGER HAVE ANY INTEREST IN SUCH MONEYS.
  S  3. Subdivision 8 of section 355 of the education law, as amended by
chapter 553 of the laws of 1985, is amended to read as follows:
  8. [All] EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL moneys  received  by
the  state  university  of  New  York and by state-operated institutions
thereof from appropriations,  tuition,  fees,  user  charges,  sales  of
products  and services and from all other sources, including sources and
activities of the state university which are intended by law to be self-
supporting may be credited to an appropriate fund or funds to be  desig-
nated  by  the  state comptroller. The amounts so paid into such fund or
funds which were received by or for the state university shall  be  used
for  expenses of the state university in carrying out any of its objects
and purposes and such amounts received by or for  state-operated  insti-
tutions  of the state university shall be used for expenses of the state
university under regulations prescribed by the  state  university  trus-
tees.  NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, ALL
DORMITORY  FACILITIES REVENUES TRANSFERRED TO THE DORMITORY AUTHORITY BY
ASSIGNMENT OR OTHERWISE PURSUANT TO PARAGRAPH Y OF  SUBDIVISION  TWO  OF
THIS  SECTION SHALL UPON RECEIPT BY THE STATE UNIVERSITY ACTING AS AGENT
FOR THE DORMITORY AUTHORITY BE TRANSFERRED AND IMMEDIATELY PAID  WITHOUT
APPROPRIATION THEREOF TO THE COMMISSIONER OF TAXATION AND FINANCE PURSU-
ANT  TO  SUBDIVISION  FOUR  OF SECTION FOUR OF THE STATE FINANCE LAW FOR
DEPOSIT TO THE DORMITORY FACILITIES REVENUE FUND.
  S 4. The public authorities law is amended by  adding  a  new  section
1680-q to read as follows:
  S  1680-Q.  STATE  UNIVERSITY OF NEW YORK DORMITORY FACILITIES.  1. AS
USED IN OR REFERRED TO IN  THIS  SECTION,  UNLESS  A  DIFFERENT  MEANING
APPEARS  FROM  THE CONTEXT, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
RESPECTIVE MEANINGS:
  (A) "AGREEMENT" MEANS AN AGREEMENT BY AND BETWEEN  THE  AUTHORITY  AND
THE STATE UNIVERSITY ENTERED INTO PURSUANT TO THIS SECTION.
  (B)  "DORMITORY  FACILITIES  REVENUE  FUND" MEANS THE FUND ESTABLISHED
PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  (C) "DORMITORY FACILITIES REVENUES" MEANS ALL MONEYS, INCLUDING RENTS,
FEES AND CHARGES, DERIVED FROM THE USE OR OCCUPANCY OF DORMITORY FACILI-
TIES.
  (D) "DORMITORY FACILITY" MEANS A DORMITORY, AS SUCH TERM IS DEFINED IN
PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION SIXTEEN HUNDRED  SEVENTY-SIX
OF THIS TITLE.
  (E)  "DORMITORY  FACILITY  REVENUE BOND" MEANS ANY NOTE OR BOND OF THE
AUTHORITY (I) ISSUED ON OR AFTER THE FIRST DAY OF  APRIL,  TWO  THOUSAND
THIRTEEN FOR THE PURPOSES OF FINANCING DORMITORY FACILITIES OR REFINANC-
ING NOTES OR BONDS ISSUED PREVIOUSLY IN CONNECTION WITH DORMITORY FACIL-
ITIES,  INCLUDING  NOTES  OR  BONDS  ISSUED  TO  PAY  COSTS  INCURRED IN
CONNECTION WITH THE ISSUANCE OF SUCH NOTES OR BONDS, TO FUND ANY RESERVE
FOR THE PAYMENT OF DEBT SERVICE ON  SUCH  BONDS,  TO  FUND  ANY  RESERVE
ESTABLISHED  FOR  THE  IMPROVEMENT, REPAIR, MAINTENANCE OR OPERATIONS OF
DORMITORY FACILITIES, OR TO PAY OR PROVIDE FOR THE PAYMENT OF  ANY  NOTE
OR BOND PREVIOUSLY ISSUED FOR ANY SUCH PURPOSE, AND (II) IS PAYABLE FROM

S. 2607--D                         38                         A. 3007--D

MONEYS  ON  DEPOSIT  IN THE DORMITORY FACILITIES REVENUE FUND AND IS NOT
PAYABLE FROM ANY REVENUE OF THE STATE.
  (F)  "PRIOR  DORMITORY  FACILITY  BOND"  MEANS ANY NOTE OR BOND OF THE
AUTHORITY  ISSUED  PRIOR  TO  APRIL  FIRST,  TWO  THOUSAND  THIRTEEN  IN
CONNECTION WITH DORMITORY FACILITIES.
  (G)  "STATE  UNIVERSITY"  MEANS  THE  STATE  UNIVERSITY OF NEW YORK, A
CORPORATION WITHIN THE STATE EDUCATION DEPARTMENT AND WITHIN THE UNIVER-
SITY OF THE STATE OF NEW YORK CREATED BY SECTION THREE HUNDRED FIFTY-TWO
OF THE EDUCATION LAW.
  2. THE AUTHORITY MAY, FROM AND AFTER APRIL FIRST, TWO  THOUSAND  THIR-
TEEN,  ISSUE DORMITORY FACILITY REVENUE BONDS IN AN AMOUNT NOT TO EXCEED
NINE HUNDRED FORTY-FOUR MILLION DOLLARS.  NOTWITHSTANDING ANY OTHER RULE
OR LAW, SUCH BONDS SHALL NOT BE A DEBT OF THE STATE OF NEW YORK  OR  THE
STATE  UNIVERSITY  NOR SHALL THE STATE OR THE STATE UNIVERSITY BE LIABLE
THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE  OF
THE  AUTHORITY  CONSTITUTING DORMITORY FACILITIES REVENUES.  SUCH AMOUNT
SHALL BE EXCLUSIVE OF BONDS AND NOTES ISSUED TO FUND ANY RESERVE FUND OR
FUNDS, COST OF ISSUANCE, ORIGINAL ISSUE PREMIUM, AND TO REFUND ANY PRIOR
DORMITORY FACILITY BONDS OR ANY DORMITORY FACILITY  REVENUE  BONDS.  THE
AUTHORITY  AND  THE STATE UNIVERSITY ARE HEREBY AUTHORIZED TO ENTER INTO
AGREEMENTS RELATING TO, AMONG OTHER THINGS, THE ACQUISITION OF  PROPERTY
OR  INTERESTS THEREIN, THE CONSTRUCTION, RECONSTRUCTION, REHABILITATION,
IMPROVEMENT, EQUIPPING AND FURNISHING OF DORMITORY FACILITIES, THE OPER-
ATION  AND  MAINTENANCE  OF  DORMITORY  FACILITIES,  AND  THE   BILLING,
COLLECTION  AND DISBURSEMENT OF DORMITORY FACILITIES REVENUES, THE TITLE
TO WHICH HAS BEEN CONVEYED, ASSIGNED OR  OTHERWISE  TRANSFERRED  TO  THE
AUTHORITY  PURSUANT  TO  PARAGRAPH Y OF SUBDIVISION TWO OF SECTION THREE
HUNDRED FIFTY-FIVE OF THE EDUCATION LAW.  IN NO EVENT  SHALL  THE  STATE
UNIVERSITY  HAVE ANY OBLIGATION UNDER THE AGREEMENT TO MAKE PAYMENT WITH
RESPECT TO, ON ACCOUNT OF OR TO PAY DORMITORY FACILITIES REVENUE  BONDS,
AND  SUCH  BONDS  SHALL  BE PAYABLE SOLELY FROM THE DORMITORY FACILITIES
REVENUES ASSIGNED TO THE AUTHORITY BY THE STATE  UNIVERSITY.    NO  DEBT
SHALL  BE  CONTRACTED  EXCEPT  TO  FINANCE  CAPITAL  WORKS  OR PURPOSES.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, DORMITORY FACILITY  REVENUES
SHALL  NOT  BE  DEEMED TO BE REVENUES OF THE STATE.  NOTWITHSTANDING ANY
OTHER RULE OR LAW, THE STATE SHALL NOT BE LIABLE FOR ANY PAYMENTS ON ANY
DORMITORY FACILITY REVENUE BONDS, AND SUCH BONDS SHALL NOT BE A DEBT  OF
THE  STATE  AND  SHALL  NOT  BE  PAYABLE OUT OF ANY FUNDS OTHER THAN THE
DORMITORY FACILITIES REVENUES ASSIGNED TO THE  AUTHORITY  BY  THE  STATE
UNIVERSITY.
  3.  (A) THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMMISSIONER
OF TAXATION AND FINANCE A SPECIAL FUND TO  BE  KNOWN  AS  THE  DORMITORY
FACILITIES REVENUE FUND. SUCH FUND SHALL CONSIST OF ALL DORMITORY FACIL-
ITIES  REVENUES  CONVEYED,  ASSIGNED  OR  OTHERWISE  TRANSFERRED  TO THE
AUTHORITY PURSUANT TO PARAGRAPH Y OF SUBDIVISION TWO  OF  SECTION  THREE
HUNDRED  FIFTY-FIVE  OF  THE  EDUCATION  LAW,  WHICH UPON RECEIPT BY THE
COMMISSIONER OF TAXATION AND FINANCE SHALL BE DEPOSITED IN SUCH FUND AND
HELD BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION
FOUR OF SECTION FOUR OF THE STATE FINANCE LAW. THE MONEYS  IN  THE  FUND
SHALL  BE  THE  SOLE AND EXCLUSIVE PROPERTY OF THE AUTHORITY. THE MONEYS
HELD IN THE FUND SHALL BE HELD SEPARATE AND APART FROM AND  NOT  COMMIN-
GLED  WITH ANY MONEYS OF THE STATE OR ANY OTHER MONEYS IN THE CUSTODY OF
THE COMMISSIONER OF TAXATION AND FINANCE.  ALL DEPOSITS OF MONEYS SHALL,
IF REQUIRED BY THE COMMISSIONER OF TAXATION AND FINANCE, BE  SECURED  BY
OBLIGATIONS  OF  THE  UNITED  STATES OF AMERICA OR OF THE STATE HAVING A
MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF SUCH DEPOSITS  AND  ALL

S. 2607--D                         39                         A. 3007--D

BANKS  AND  TRUST  COMPANIES  ARE  AUTHORIZED  TO GIVE SECURITY FOR SUCH
DEPOSITS. ANY MONEYS IN SUCH FUND MAY, IN THE DISCRETION OF THE  COMMIS-
SIONER  OF TAXATION AND FINANCE, BE INVESTED IN OBLIGATIONS DESCRIBED IN
SECTION NINETY-EIGHT OF THE STATE FINANCE LAW. THE COMMISSIONER OF TAXA-
TION AND FINANCE SHALL CERTIFY TO THE AUTHORITY AND THE STATE UNIVERSITY
NOT  LATER  THAN THE FIFTEENTH DAY OF EACH MONTH THE AMOUNT OF DORMITORY
FACILITIES REVENUES DEPOSITED IN THE FUND DURING THE PRECEDING  CALENDAR
MONTH AND THE AMOUNT HELD IN THE FUND AS OF THE LAST DAY OF SUCH PRECED-
ING CALENDAR MONTH.
  (B)  DURING EACH TWELVE MONTH PERIOD COMMENCING JULY FIRST OF A CALEN-
DAR YEAR AND ENDING ON JUNE THIRTIETH OF THE SUCCEEDING  CALENDAR  YEAR,
THE  COMMISSIONER  OF  TAXATION AND FINANCE SHALL PAY, WITHOUT APPROPRI-
ATION, TO OR UPON THE ORDER OF THE AUTHORITY FROM THE MONEYS IN THE FUND
THE AMOUNT CERTIFIED TO THE COMMISSIONER OF TAXATION AND FINANCE BY  THE
AUTHORITY  PURSUANT  TO  PARAGRAPH  (C)  OF THIS SUBDIVISION. ANY MONEYS
REMAINING IN THE FUND AFTER PAYMENT TO THE AUTHORITY OF  THE  AMOUNT  SO
CERTIFIED  SHALL  BE PAID BY THE COMMISSIONER OF TAXATION AND FINANCE IN
ACCORDANCE WITH THE AGREEMENT. ALL RIGHTS, TITLE AND INTEREST IN AND  TO
ANY MONEYS PAID TO OR UPON THE ORDER OF THE STATE UNIVERSITY PURSUANT TO
THE  AGREEMENT  SHALL  VEST  IN THE STATE UNIVERSITY AND BE THE ABSOLUTE
PROPERTY OF THE STATE UNIVERSITY, AND THE AUTHORITY SHALL NO LONGER HAVE
ANY INTEREST IN SUCH MONEYS.
  (C) THE AUTHORITY SHALL, NOT LATER THAN BY THE FIRST DAY  OF  JUNE  OF
EACH  CALENDAR YEAR, CERTIFY TO THE COMMISSIONER OF TAXATION AND FINANCE
AND TO THE STATE UNIVERSITY: (I) THE AMOUNT OF  THE  RENTALS,  INCLUDING
THE  AMOUNTS  REQUIRED  FOR PAYMENT OF THE PRINCIPAL OF, AND INTEREST ON
PRIOR DORMITORY FACILITY BONDS REQUIRED TO BE MADE BY THE STATE  UNIVER-
SITY  TO  THE AUTHORITY DURING THE TWELVE MONTH PERIOD COMMENCING ON THE
SUCCEEDING JULY FIRST AND ENDING ON THE SUCCEEDING JUNE THIRTIETH PURSU-
ANT TO THE AGREEMENT BETWEEN THE AUTHORITY  AND  THE  STATE  UNIVERSITY,
DATED   AS   OF   THE  TWENTIETH  DAY  OF  SEPTEMBER,  NINETEEN  HUNDRED
NINETY-FIVE, AS AMENDED AND RESTATED; (II) THE AMOUNT REQUIRED TO  MAIN-
TAIN ANY RESERVES FOR THE REPAIR AND REPLACEMENT OF DORMITORY FACILITIES
OR  THE OPERATIONS AND MAINTENANCE OF DORMITORY FACILITIES IN CONNECTION
WITH THE PRIOR DORMITORY FACILITY BONDS; (III) THE AMOUNT  REQUIRED  FOR
PAYMENT OF THE PRINCIPAL OF, WHETHER AT MATURITY OR DUE THROUGH MANDATO-
RY  REDEMPTION, AND INTEREST ON DORMITORY FACILITY REVENUE BONDS PAYABLE
ON JANUARY FIRST OF SUCH TWELVE MONTH PERIOD  AND  ON  JULY  FIRST  NEXT
SUCCEEDING  SUCH  TWELVE MONTH PERIOD; (IV) THE AMOUNT REQUIRED TO MAIN-
TAIN ANY RESERVES FOR THE REPAIR AND REPLACEMENT OF DORMITORY FACILITIES
OR THE OPERATIONS AND MAINTENANCE OF DORMITORY FACILITIES IN  CONNECTION
WITH  THE  DORMITORY  FACILITY REVENUE BONDS; (V) THE AMOUNT REQUIRED TO
RESTORE ANY RESERVE FOR THE PAYMENT OF DEBT SERVICE ON DORMITORY FACILI-
TY REVENUE BONDS TO ITS REQUIREMENT; AND (VI) THE  COSTS,  EXPENSES  AND
OVERHEAD  OF  THE  DORMITORY AUTHORITY TO BE INCURRED DURING SUCH TWELVE
MONTH PERIOD IN CONNECTION WITH  AND  REASONABLY  RELATED  TO  DORMITORY
FACILITIES  FINANCED  THROUGH THE ISSUANCE OF DORMITORY FACILITY REVENUE
BONDS. EACH SUCH AMOUNT SHALL BE SEPARATELY  STATED  AND  IDENTIFIED  IN
SUCH  CERTIFICATE.  ANY  SUCH  CERTIFICATE  SUBMITTED  BY  THE DORMITORY
AUTHORITY MAY BE AMENDED BY THE DORMITORY AUTHORITY FROM TIME TO TIME AS
NECESSARY TO ADJUST THE AMOUNTS SET FORTH THEREIN. THE  MONEYS  PAID  TO
THE  AUTHORITY  PURSUANT  TO  PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE
APPLIED BY THE AUTHORITY IN THE ORDER OF PRIORITY IN WHICH  THE  AMOUNTS
SET FORTH IN SUCH CERTIFICATION ARE STATED IN THIS PARAGRAPH.
   4.  (A)  THE  DORMITORY  AUTHORITY,  IN  CONSULTATION  WITH THE STATE
UNIVERSITY OF NEW YORK, SHALL PREPARE AN ANNUAL REPORT DUE ON  SEPTEMBER

S. 2607--D                         40                         A. 3007--D

THIRTIETH,  COMMENCING ON SEPTEMBER THIRTIETH, TWO THOUSAND FOURTEEN, OF
EVERY CALENDAR YEAR RELATING TO THE PROVISIONS OF PARAGRAPH Y OF  SUBDI-
VISION  TWO  OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW AS
ADDED BY A CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN WHICH ADDED THIS
SECTION;  SUBDIVISION  EIGHT  OF SECTION THREE HUNDRED FIFTY-FIVE OF THE
EDUCATION LAW AS AMENDED BY A CHAPTER OF THE LAWS OF TWO THOUSAND  THIR-
TEEN  WHICH  ADDED  THIS  SECTION;  AND  THIS  SECTION. THE REPORT SHALL
INCLUDE, BUT NOT BE LIMITED  TO:  (I)  THE  TOTAL  DORMITORY  FACILITIES
REVENUES  ASSIGNED OR OTHERWISE TRANSFERRED FROM THE STATE UNIVERSITY OF
NEW YORK TO THE DORMITORY AUTHORITY IN THE PRIOR STATE UNIVERSITY FISCAL
YEAR AND THE SUM OF SUCH TRANSFERS MADE IN THE FIVE PRIOR FISCAL  YEARS;
(II)  THE  SUM OF MONIES, IF ANY, TRANSFERRED TO THE STATE UNIVERSITY OF
NEW YORK FROM THE DORMITORY FACILITIES REVENUE FUND IN THE  PRIOR  STATE
UNIVERSITY  FISCAL YEAR; (III) A LIST OF ANY INCREASE IN RENTS, FEES AND
OTHER  CHARGES  THAT  RELATE  TO  DORMITORY  FACILITIES  PER  CAMPUS  TO
STUDENTS;  (IV) A SUMMARY OF ALL COSTS ASSOCIATED WITH THE CONSTRUCTION,
RECONSTRUCTION,  REHABILITATION,  IMPROVEMENT,  EQUIPPING,   FURNISHING,
REPAIR,  MAINTENANCE  AND  OPERATIONS  OF  DORMITORY FACILITIES THAT THE
DORMITORY AUTHORITY FUNDED WITH DORMITORY FACILITIES  REVENUES  AND  THE
PROCEEDS  OF  DORMITORY FACILITY REVENUE BONDS; (V) A SUMMARY AND JUSTI-
FICATION  OF  DORMITORY  AUTHORITY  ADMINISTRATIVE  EXPENSES  AND  COSTS
INCURRED  RELATED  TO  THE  DORMITORY  FACILITIES REVENUE FUND; (VI) THE
ISSUANCE AMOUNTS, DEBT SERVICE COSTS AND SAVINGS, IF ANY, OF  ALL  STATE
UNIVERSITY  OF NEW YORK DORMITORY BONDS ISSUED PRIOR TO APRIL FIRST, TWO
THOUSAND THIRTEEN AND REFINANCED BY THE DORMITORY AUTHORITY WITH  DORMI-
TORY FACILITY REVENUE BONDS; (VII) TOTAL AMOUNT OF DEBT SERVICE PAYMENTS
MADE  PER  YEAR ON DORMITORY FACILITY REVENUE BONDS; AND (VIII) AN ESTI-
MATED DATE WHEN THE DORMITORY AUTHORITY  WILL  REACH  THE  NINE  HUNDRED
FORTY-FOUR MILLION DOLLAR CAP ON DORMITORY FACILITY REVENUE BONDS.
  (B)  THE  REPORT  AUTHORIZED BY THIS SECTION SHALL BE SUBMITTED TO THE
GOVERNOR, THE DIRECTOR OF THE BUDGET, THE SPEAKER OF THE  ASSEMBLY,  THE
TEMPORARY  PRESIDENT  OF  THE  SENATE, CHAIRS OF THE SENATE AND ASSEMBLY
HIGHER EDUCATION COMMITTEES, THE CHAIR OF THE SENATE  FINANCE  COMMITTEE
AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  S  5.  For  the purposes of paragraphs (b) and (c) of subdivision 3 of
section 1680-q of the public authorities law, as added by  section  four
of this act, the dormitory authority shall, within thirty days after the
date  on  which this act shall become effective, make and deliver to the
commissioner of taxation and finance and the  state  university  of  New
York  a  certification  in the form and substance required by such para-
graph (c) with respect to amounts required for the items specified ther-
ein during the period from the effective date of this act to and includ-
ing the thirtieth day of June, 2013,  and,  if  this  act  shall  become
effective after the first day of June, 2013, for the twelve month period
commencing  the  first day of July, 2013, to and including the thirtieth
day of June, 2014. No money shall be paid by the commissioner  of  taxa-
tion  and  finance  out  of  the  dormitory facility revenue fund except
unless and until such commissioner has  received  the  certification  or
certifications required by this section.
  S 6. This act shall take effect immediately.

                                 PART C

  Section  1.  Paragraph  (a) of subdivision 1 of section 1 of part U of
chapter 57 of the laws of 2005 amending the labor  law  and  other  laws
implementing  the state fiscal plan for the 2005-2006 state fiscal year,

S. 2607--D                         41                         A. 3007--D

relating to the New York state higher education capital  matching  grant
program  for  independent colleges, as amended by section 1 of part H of
chapter 57 of the laws of 2012, is amended to read as follows:
  (a)  The  New York state higher education capital matching grant board
is hereby created to have and exercise the powers, duties  and  preroga-
tives provided by the provisions of this section and any other provision
of law. The board shall remain in existence during the period of the New
York  state  higher  education  capital  matching grant program from the
effective date of this section through March 31,  [2013]  2014,  or  the
date  on  which  the  last  of the funds available for grants under this
section shall have  been  disbursed,  whichever  is  earlier;  provided,
however,  that  the  termination of the existence of the board shall not
affect the power and authority of the dormitory authority to perform its
obligations with respect to any  bonds,  notes,  or  other  indebtedness
issued or incurred pursuant to authority granted in this section.
  S  2. Paragraph (h) of subdivision 4 of section 1 of part U of chapter
57 of the laws of 2005 amending the labor law and other laws  implement-
ing  the state fiscal plan for the 2005-2006 state fiscal year, relating
to the New York state higher education capital  matching  grant  program
for  independent  colleges, as amended by section 2 of part H of chapter
57 of the laws of 2012, is amended to read as follows:
  (h) [If a college did not apply for a potential grant]  IN  THE  EVENT
THAT  ANY  COLLEGES  DO  NOT APPLY FOR HIGHER EDUCATION CAPITAL MATCHING
GRANTS by March 31, 2009, OR  IN  THE  EVENT  THEY  APPLY  FOR  AND  ARE
AWARDED, BUT DO NOT USE THE FULL AMOUNT OF SUCH GRANTS, THE UNUSED funds
associated  with  such  [potential  grant]  GRANTS  shall  THEREAFTER be
awarded[,] TO COLLEGES on a  competitive  basis,  [to  other  colleges,]
according  to the priorities set forth below. [Colleges] NOTWITHSTANDING
SUBDIVISION FIVE OF THIS SECTION, ANY COLLEGE shall be eligible to apply
for [unutilized grants] SUCH UNUSED FUNDS IN RESPONSE TO A  REQUEST  FOR
PROPOSALS FOR A HIGHER EDUCATION CAPITAL MATCHING GRANT PURSUANT TO THIS
PARAGRAPH.   In such cases, the following priorities shall apply: first,
priority shall be given to otherwise eligible colleges that either were,
or would have been, deemed ineligible for the program prior to March 31,
2009, due to missed deadlines,  insufficient  matching  funds,  lack  of
accreditation  or  other  disqualifying  reasons;  and second, after the
board has acted upon all such  first-priority  applications  for  unused
funds,  if  any  such  funds  remain, those funds shall be available for
distribution to eligible colleges [that  are  located  within  the  same
Regents  of  the  State  of  New  York  region for which such funds were
originally allocated].  The dormitory authority shall develop a  request
for  proposals  and application process, in consultation with the board,
for [such] HIGHER EDUCATION CAPITAL MATCHING grants AWARDED PURSUANT  TO
THIS  PARAGRAPH,  and  shall  develop criteria, subject to review by the
board, for the awarding of such grants. Such  criteria  shall  [incorpo-
rate]  INCLUDE, BUT NOT BE LIMITED TO the matching criteria contained in
paragraph (c) of this subdivision,  and  the  application  criteria  set
forth  in  paragraph  (e)  of  this subdivision. The dormitory authority
shall require all applications in response to the request for  proposals
to  be submitted by September 1, [2012] 2013, and the board shall act on
each application for such matching grants by November 1, [2012] 2013.
  S 3. Subclause (A) of clause (ii) of paragraph (j) of subdivision 4 of
section 1 of part U of chapter 57 of the laws of 2005 amending the labor
law and other laws implementing the state fiscal plan for the  2005-2006
state fiscal year, relating to the New York state higher education capi-
tal  matching  grant  program  for  independent  colleges, as amended by

S. 2607--D                         42                         A. 3007--D

section 3 of part H of chapter 57 of the laws of  2012,  is  amended  to
read as follows:
  (A) Notwithstanding the provision of any general or special law to the
contrary,  and  subject  to  the provisions of chapter 59 of the laws of
2000 and to the making of annual appropriations therefor by the legisla-
ture, in order to assist the dormitory authority in providing such high-
er education capital matching grants, the  director  of  the  budget  is
authorized  in  any  state  fiscal  year commencing April 1, 2005 or any
state fiscal year thereafter for a period ending  on  March  31,  [2014]
2015,  to  enter into one or more service contracts, none of which shall
exceed 30 years in duration, with the  dormitory  authority,  upon  such
terms as the director of the budget and the dormitory authority agree.
  S  4. Paragraph (b) of subdivision 7 of section 1 of part U of chapter
57 of the laws of 2005 amending the labor law and other laws  implement-
ing  the state fiscal plan for the 2005-2006 state fiscal year, relating
to the New York state higher education matching  capital  grant  program
for  independent  colleges, as amended by section 4 of part H of chapter
57 of the laws of 2012, is amended to read as follows:
  (b) Any eligible institution receiving a grant pursuant to this  arti-
cle shall report to the dormitory authority no later than June 1, [2013]
2014,  on  the use of funding received and its programmatic and economic
impact. The dormitory authority shall submit  a  report  no  later  than
November  1, [2013] 2014 to the board, the governor, the director of the
budget, the temporary president of the senate, and the  speaker  of  the
assembly  on the aggregate impact of the higher education matching capi-
tal grant program. Such report shall provide information on the progress
and economic impact of such project.
  S 5. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2013.

                                 PART D

  Section  1.  Subdivision  1  of  section  6304 of the education law is
amended by adding two new paragraphs b-1 and b-2 to read as follows:
  B-1. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FOR THE
COMMUNITY COLLEGE FISCAL YEAR TWO THOUSAND THIRTEEN--TWO THOUSAND  FOUR-
TEEN  AND THEREAFTER, EACH PROGRAM THAT CONFERS A CREDIT-BEARING CERTIF-
ICATE, AN ASSOCIATE OF OCCUPATIONAL STUDIES DEGREE, OR AN  ASSOCIATE  OF
APPLIED  SCIENCE DEGREE, SHALL DEMONSTRATE THAT IT IS PREPARING STUDENTS
FOR CURRENT AND FUTURE JOB OPPORTUNITIES BY PARTNERING WITH EMPLOYERS AS
FOLLOWS:
  (A) THE PROGRAM IS A PARTNERSHIP BETWEEN THE COMMUNITY COLLEGE AND ONE
OR MORE EMPLOYERS TO TRAIN AND EMPLOY STUDENTS IN A SPECIFIC OCCUPATION;
  (B) THE PROGRAM HAS AN ADVISORY COMMITTEE MADE UP OF MEMBERS  OF  WHOM
THE  MAJORITY  ARE  EMPLOYERS  IN THE OCCUPATION OR SECTOR, OR A RELATED
SECTOR, OR IS OTHERWISE ADVISED BY ONE OR MORE EMPLOYERS IN THE  OCCUPA-
TION  OR  SECTOR, THAT EMPLOY OR WILL EMPLOY WORKERS IN THE REGION WHERE
THE COMMUNITY COLLEGE IS LOCATED, AND SUCH COMMITTEE  SERVES  TO  ADVISE
THE  COMMUNITY  COLLEGE ON THE PROGRAM'S CURRICULUM, RECRUITMENT, PLACE-
MENT AND EVALUATION SO THAT IT REMAINS UP-TO-DATE WITH  EMPLOYER  NEEDS;
OR
  (C)  THE PROGRAM IS IN A HIGH-TECH SECTOR AND IS IN DEMAND FOR CURRENT
OR PROJECTED JOB GROWTH,  INCLUDING  THOSE  SECTORS  IDENTIFIED  BY  THE
REGIONAL  ECONOMIC  DEVELOPMENT  COUNCIL,  AND  IS ADVISED BY CURRENT OR
POTENTIAL FUTURE EMPLOYERS IN THE OCCUPATION OR SECTOR.

S. 2607--D                         43                         A. 3007--D

  (II) ON OR BEFORE JANUARY FIRST, TWO THOUSAND FOURTEEN FOR THE  COMMU-
NITY  COLLEGE  FISCAL YEAR TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN,
NOVEMBER FIRST, TWO THOUSAND FOURTEEN FOR THE COMMUNITY  COLLEGE  FISCAL
YEAR  TWO  THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN AND NOVEMBER FIRST OF
EACH  COMMUNITY  COLLEGE  FISCAL  YEAR  THEREAFTER, THE STATE UNIVERSITY
TRUSTEES AND THE CITY UNIVERSITY TRUSTEES SHALL EACH SUBMIT A JOB  LINK-
AGE  REPORT  TO THE DIRECTOR OF THE BUDGET, THE CHAIRS OF THE SENATE AND
ASSEMBLY HIGHER EDUCATION COMMITTEES AND THE CHAIR OF THE SENATE FINANCE
COMMITTEE AND THE CHAIR  OF  THE  ASSEMBLY  WAYS  AND  MEANS  COMMITTEE,
INCLUDING  AN  ACCOUNTING OF FULL TIME EQUIVALENT ENROLLMENT IN PROGRAMS
THAT  CONFER  CREDIT-BEARING  CERTIFICATES,  ASSOCIATE  OF  OCCUPATIONAL
STUDIES DEGREES, OR ASSOCIATE OF APPLIED SCIENCE DEGREES, IN SUCH A FORM
AND  MANNER  AS THE DIRECTOR OF THE BUDGET MAY REQUIRE TO VERIFY COMPLI-
ANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH.
  B-2. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  WITHIN
AMOUNTS  APPROPRIATED FOR INCENTIVE FUNDING, THE STATE UNIVERSITY OF NEW
YORK AND CITY UNIVERSITY OF NEW YORK  SHALL  MAKE  AWARDS  TO  COMMUNITY
COLLEGES  FROM THE NEXT GENERATION NY JOB LINKAGE PROGRAM INCENTIVE FUND
BASED ON MEASURES OF  STUDENT  SUCCESS  FOR  ALL  STUDENTS  ENROLLED  IN
PROGRAMS THAT CONFER A CREDIT-BEARING CERTIFICATE, AN ASSOCIATE OF OCCU-
PATIONAL  STUDIES  DEGREE,  OR  AN  ASSOCIATE OF APPLIED SCIENCE DEGREE,
INCLUDING, BUT NOT LIMITED TO:
  (A) THE NUMBER OF  STUDENTS  WHO  ARE  EMPLOYED  FOLLOWING  DEGREE  OR
CERTIFICATE  COMPLETION  AND  THEIR WAGE GAINS, IF ANY, AS DETERMINED BY
THE DEPARTMENT OF LABOR, WHICH SHALL BE  GIVEN  THE  GREATEST  WEIGHTING
AMONG ALL MEASURES OF STUDENT SUCCESS;
  (B)  THE  NUMBER  OF  DEGREE  COMPLETIONS, CERTIFICATE COMPLETIONS AND
STUDENT TRANSFERS TO OTHER INSTITUTIONS OF HIGHER EDUCATION;
  (C) THE NUMBER OF DEGREE AND CERTIFICATE COMPLETIONS UNDER CLAUSE  (B)
OF  THIS  PARAGRAPH  BY  STUDENTS CONSIDERED ACADEMICALLY AT-RISK DUE TO
ECONOMIC DISADVANTAGE OR OTHER FACTOR OF UNDER-REPRESENTATION WITHIN THE
FIELD OF STUDY; VETERANS; AND THE DISABLED;
  (D)  THE  NUMBER  OF  STUDENTS  WHO  MAKE  ADEQUATE  PROGRESS  TOWARDS
COMPLETION  OF  A  DEGREE  OR CERTIFICATE, WHICH MAY INCLUDE ACCELERATED
COMPLETION OF A DEVELOPMENTAL EDUCATION PROGRAM;
  (E) THE NUMBER OF DEGREE COMPLETIONS IN INNOVATIVE  PROGRAMS  DESIGNED
TO  ENABLE STUDENTS TO BALANCE SCHOOL, WORK AND OTHER PERSONAL RESPONSI-
BILITIES; AND
  (F) THE NUMBER OF STUDENTS ENGAGED IN CAREER AND  EMPLOYMENT  OPPORTU-
NITIES  INCLUDING  APPRENTICESHIPS,  COOPERATIVE  EDUCATION  PROGRAMS OR
OTHER PAID WORK EXPERIENCE THAT IS AN INTEGRAL PART  OF  THEIR  ACADEMIC
PROGRAM.
  (II)  AWARDS  SHALL  BE  MADE ON A PRO-RATA BASIS IN ACCORDANCE WITH A
METHODOLOGY AND IN A FORM AND MANNER DEVELOPED BY THE  DIRECTOR  OF  THE
BUDGET, IN CONSULTATION WITH THE STATE UNIVERSITY AND CITY UNIVERSITY.
  (III) ON OR BEFORE DECEMBER FIRST OF EACH YEAR, OR AN ALTERNATIVE DATE
AS  DETERMINED  BY  THE  DIRECTOR OF THE BUDGET IN CONSULTATION WITH THE
STATE UNIVERSITY AND CITY UNIVERSITY, THE STATE UNIVERSITY TRUSTEES  AND
THE  CITY  UNIVERSITY  TRUSTEES SHALL EACH SUBMIT A PLAN FOR APPROVAL BY
THE DIRECTOR OF THE BUDGET TO ALLOCATE AMOUNTS AVAILABLE  FOR  THE  NEXT
GENERATION NY JOB LINKAGE PROGRAM INCENTIVE FUND IN ACCORDANCE WITH THIS
PARAGRAPH.
  S 2. This act shall take effect immediately.

                                 PART E

S. 2607--D                         44                         A. 3007--D

  Section  1.  Paragraphs  (a),  (b),  (c)  and  (d) of subdivision 1 of
section 131-o of the social services law, as amended  by  section  1  of
part  C  of  chapter  57  of  the  laws  of 2012, are amended to read as
follows:
  (a)  in  the  case of each individual receiving family care, an amount
equal to at least [$135.00] $137.00 for each month beginning on or after
January first, two thousand [twelve] THIRTEEN.
  (b) in the case of each  individual  receiving  residential  care,  an
amount  equal  to at least [$155.00] $158.00 for each month beginning on
or after January first, two thousand [twelve] THIRTEEN.
  (c) in the case of  each  individual  receiving  enhanced  residential
care,  an  amount  equal  to  at  least [$184.00] $187.00 for each month
beginning on or after January first, two thousand [twelve] THIRTEEN.
  (d) for the period commencing January first, two  thousand  [thirteen]
FOURTEEN,  the monthly personal needs allowance shall be an amount equal
to the sum of the amounts set forth in subparagraphs one and two of this
paragraph:
  (1) the amounts specified in paragraphs  (a),  (b)  and  (c)  of  this
subdivision; and
  (2)  the  amount  in subparagraph one of this paragraph, multiplied by
the percentage of any  federal  supplemental  security  income  cost  of
living adjustment which becomes effective on or after January first, two
thousand  [thirteen] FOURTEEN, but prior to June thirtieth, two thousand
[thirteen] FOURTEEN, rounded to the nearest whole dollar.
  S 2. Paragraphs (a), (b), (c), (d), (e) and (f) of  subdivision  2  of
section  209 of the social services law, as amended by section 2 of part
C of chapter 57 of the laws of 2012, are amended to read as follows:
  (a) On and after January first, two thousand [twelve] THIRTEEN, for an
eligible individual living alone, [$785.00] $797.00; and for an eligible
couple living alone, [$1152.00] $1170.00.
  (b) On and after January first, two thousand [twelve] THIRTEEN, for an
eligible individual living with others with or without  in-kind  income,
[$721.00] $733.00; and for an eligible couple living with others with or
without in-kind income, [$1094.00] $1112.00.
  (c)  On  and  after January first, two thousand [twelve] THIRTEEN, (i)
for an eligible individual receiving family care, [$964.48]  $976.48  if
he  or  she is receiving such care in the city of New York or the county
of Nassau, Suffolk, Westchester or Rockland; and (ii)  for  an  eligible
couple  receiving  family  care in the city of New York or the county of
Nassau, Suffolk, Westchester or Rockland, two times the amount set forth
in subparagraph (i) of this paragraph; or (iii) for an eligible individ-
ual receiving such care in any other  county  in  the  state,  [$926.48]
$938.48;  and  (iv)  for  an  eligible couple receiving such care in any
other county in the state, two times the amount set  forth  in  subpara-
graph (iii) of this paragraph.
  (d)  On  and  after January first, two thousand [twelve] THIRTEEN, (i)
for  an  eligible  individual  receiving  residential  care,  [$1133.00]
$1145.00  if he or she is receiving such care in the city of New York or
the county of Nassau, Suffolk, Westchester or Rockland; and (ii) for  an
eligible  couple  receiving  residential care in the city of New York or
the county of Nassau, Suffolk, Westchester or Rockland,  two  times  the
amount  set forth in subparagraph (i) of this paragraph; or (iii) for an
eligible individual receiving such care  in  any  other  county  in  the
state,  [$1103.00]  $1115.00;  and (iv) for an eligible couple receiving
such care in any other county in the state, two  times  the  amount  set
forth in subparagraph (iii) of this paragraph.

S. 2607--D                         45                         A. 3007--D

  (e)  (i)  On  and after January first, two thousand [twelve] THIRTEEN,
for  an  eligible  individual  receiving  enhanced   residential   care,
[$1392.00]  $1404.00; and (ii) for an eligible couple receiving enhanced
residential care, two times the amount set forth in subparagraph (i)  of
this paragraph.
  (f) The amounts set forth in paragraphs (a) through (e) of this subdi-
vision  shall  be  increased to reflect any increases in federal supple-
mental security income benefits for individuals or couples which  become
effective  on  or  after January first, two thousand [thirteen] FOURTEEN
but prior to June thirtieth, two thousand [thirteen] FOURTEEN.
  S 3. This act shall take effect December 31, 2013.

                                 PART F
                          Intentionally omitted

                                 PART G

  Section 1. Subdivisions 4 and 5 of section 412 of the  executive  law,
as  amended by chapter 182 of the laws of 2002, are amended, and two new
subdivisions 8 and 9 are added to read as follows:
  4. "Municipality" shall mean a county, [city, village, town, that part
of a town not included within the boundaries of a village, or  a  school
district (if approved for such purpose by the commissioner, in instances
where  no  other municipality, overlapping such school district in whole
or part, is receiving state aid pursuant to this article  or  upon  such
other basis as the commissioner shall by regulation determine).  Munici-
pality  may mean an Indian reservation, subject to rules and regulations
of the office] OR A CITY HAVING A POPULATION OF ONE MILLION OR MORE.
  5. "Youth DEVELOPMENT program" shall mean a ["youth  bureau,"  "recre-
ation  project"  or  "youth  service"  project  established  under prior
authorizing legislation establishing a temporary state youth  commission
as  well as similar] local [programs] PROGRAM designed to accomplish the
broad purposes of this article[. The definition, determination and clas-
sification of youth programs shall  be]  subject  to  [approval  by  the
office  in accordance with] THE rules and regulations [adopted by it] OF
THE OFFICE; PROVIDED HOWEVER, THE TERM "YOUTH DEVELOPMENT PROGRAM" SHALL
NOT INCLUDE APPROVED RUNAWAY PROGRAMS OR TRANSITIONAL INDEPENDENT LIVING
SUPPORT PROGRAMS AS SUCH TERMS ARE DEFINED IN SECTION FIVE HUNDRED THIR-
TY-TWO-A OF THIS CHAPTER.
  8. "MUNICIPAL YOUTH BUREAU" SHALL MEAN EITHER:
  A. IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, THE NEW  YORK
CITY DEPARTMENT OF YOUTH AND COMMUNITY DEVELOPMENT, OR A SUCCESSOR ENTI-
TY;
  B.  A  YOUTH  BUREAU  THAT  ENGAGES  IN ACTIVITIES, INCLUDING, BUT NOT
LIMITED TO, THE OPERATION, ADMINISTRATION OR MONITORING OF YOUTH  DEVEL-
OPMENT PROGRAMS, THROUGHOUT A PARTICULAR COUNTY; OR
  C.  A  YOUTH  BUREAU  THAT  ENGAGES  IN ACTIVITIES, INCLUDING, BUT NOT
LIMITED TO, THE OPERATION, ADMINISTRATION OR MONITORING OF YOUTH  DEVEL-
OPMENT  PROGRAMS, THROUGHOUT TWO OR MORE PARTICULAR COUNTIES, IN ACCORD-
ANCE WITH SUBDIVISION FIVE OF SECTION FOUR HUNDRED  TWENTY-TWO  OF  THIS
ARTICLE.
  9. "LOCAL YOUTH BUREAU" SHALL MEAN A YOUTH BUREAU, NOT INCLUDED WITHIN
THE  DEFINITION  OF MUNICIPAL YOUTH BUREAU PURSUANT TO SUBDIVISION EIGHT
OF THIS SECTION, THAT ENGAGES IN ACTIVITIES, INCLUDING, BUT NOT  LIMITED

S. 2607--D                         46                         A. 3007--D

TO,  THE  OPERATION,  ADMINISTRATION  OR MONITORING OF YOUTH DEVELOPMENT
PROGRAMS, THROUGHOUT A PARTICULAR VILLAGE, TOWN OR CITY.
  S 2. Subdivision 1 of section 420 of the executive law is REPEALED and
a new subdivision 1 is added to read as follows:
   1.  A.  (1)  EACH  MUNICIPALITY OPERATING A YOUTH DEVELOPMENT PROGRAM
APPROVED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL BE ELIGIBLE
FOR ONE HUNDRED PERCENT STATE REIMBURSEMENT OF  ITS  QUALIFIED  EXPENDI-
TURES,  SUBJECT TO AVAILABLE APPROPRIATIONS AND EXCLUSIVE OF ANY FEDERAL
FUNDS MADE AVAILABLE THEREFOR, NOT TO EXCEED THE MUNICIPALITY'S DISTRIB-
UTION OF STATE AID UNDER THIS ARTICLE.
  (2) THE STATE AID APPROPRIATED FOR YOUTH DEVELOPMENT PROGRAMS SHALL BE
DISTRIBUTED BY THE OFFICE OF CHILDREN AND FAMILY  SERVICES  TO  ELIGIBLE
MUNICIPALITIES  THAT  HAVE  AN  APPROVED  COMPREHENSIVE PLAN PURSUANT TO
SUBPARAGRAPH TWO OF PARAGRAPH C OF  THIS  SUBDIVISION.  SUCH  STATE  AID
SHALL  BE  LIMITED  TO  THE FUNDS SPECIFICALLY APPROPRIATED THEREFOR AND
SHALL BE BASED ON FACTORS THAT SHALL INCLUDE THE NUMBER OF  YOUTH  UNDER
THE  AGE OF TWENTY-ONE RESIDING IN THE MUNICIPALITY AS SHOWN BY THE LAST
PUBLISHED FEDERAL CENSUS CERTIFIED IN THE SAME  MANNER  AS  PROVIDED  BY
SECTION  FIFTY-FOUR OF THE STATE FINANCE LAW AND MAY INCLUDE, BUT NOT BE
LIMITED TO, THE PERCENTAGE OF YOUTH LIVING IN POVERTY WITHIN THE MUNICI-
PALITY OR SUCH OTHER FACTORS AS PROVIDED FOR IN THE REGULATIONS  OF  THE
OFFICE.
  (3)  THE  OFFICE  SHALL  NOT  REIMBURSE  ANY CLAIMS UNDER THIS SECTION
UNLESS THEY ARE SUBMITTED WITHIN TWELVE MONTHS OF THE  CALENDAR  QUARTER
IN  WHICH  THE  EXPENDITURE WAS MADE.   THE OFFICE MAY REQUIRE THAT SUCH
CLAIMS BE SUBMITTED TO THE  OFFICE  ELECTRONICALLY  IN  THE  MANNER  AND
FORMAT REQUIRED BY THE OFFICE.
  (4)  A  COMPREHENSIVE PLAN DEVELOPED IN ACCORDANCE WITH PARAGRAPH C OF
THIS SUBDIVISION MAY PROVIDE FOR THE FUNDING OF LOCAL YOUTH BUREAUS THAT
HAVE BEEN APPROVED IN ACCORDANCE WITH SECTION FOUR HUNDRED TWENTY-TWO OF
THIS ARTICLE AND MUNICIPAL YOUTH  BUREAUS.  PROVIDED  HOWEVER,  THAT  AN
APPROVED  LOCAL  YOUTH BUREAU THAT IS NOT PROVIDING, OPERATING, ADMINIS-
TERING OR MONITORING YOUTH DEVELOPMENT PROGRAMS SHALL NOT RECEIVE  FUND-
ING  PURSUANT  TO THIS SUBDIVISION. PROVIDED, FURTHER THAT UP TO FIFTEEN
PERCENT OF THE YOUTH DEVELOPMENT FUNDS THAT  A  MUNICIPALITY  DETERMINES
WILL  BE PROVIDED TO A LOCAL YOUTH BUREAU IN ACCORDANCE WITH CLAUSE (II)
OF SUBPARAGRAPH ONE OF PARAGRAPH C OF THIS SUBDIVISION MAY BE  USED  FOR
ADMINISTRATIVE FUNCTIONS PERFORMED BY SUCH LOCAL YOUTH BUREAU.
  (5)  IF  A  MUNICIPALITY  DOES  NOT ALLOCATE YOUTH DEVELOPMENT FUNDING
PURSUANT TO THE INFORMATION CONTAINED WITHIN THE MUNICIPALITY'S  COMPRE-
HENSIVE PLAN IN ACCORDANCE WITH CLAUSE (II) OF SUBPARAGRAPH ONE OF PARA-
GRAPH  C  OF  THIS  SUBDIVISION, THE OFFICE MAY AUTHORIZE OR REQUIRE THE
COMPTROLLER TO WITHHOLD THE PAYMENT OF STATE AID TO SUCH MUNICIPALITY IN
ACCORDANCE WITH SECTION FOUR HUNDRED TWENTY-ONE OF THIS ARTICLE.
  B. YOUTH DEVELOPMENT PROGRAMS SHALL PROVIDE  COMMUNITY-LEVEL  SERVICES
DESIGNED  TO  PROMOTE  POSITIVE  YOUTH  DEVELOPMENT.  SUCH  PROGRAMS MAY
INCLUDE, BUT NOT BE LIMITED  TO:  PROGRAMS  THAT  PROMOTE  PHYSICAL  AND
EMOTIONAL  WELLNESS, EDUCATIONAL ACHIEVEMENT OR CIVIC, FAMILY AND COMMU-
NITY ENGAGEMENT; FAMILY SUPPORT SERVICES; SERVICES TO  PREVENT  JUVENILE
DELINQUENCY,  CHILD  ABUSE AND NEGLECT; SERVICES TO AVERT FAMILY CRISES;
AND SERVICES TO ASSIST YOUTH IN NEED OF CRISIS INTERVENTION  OR  RESPITE
SERVICES.  SUBJECT  TO THE REGULATIONS OF THE OFFICE, A MUNICIPALITY MAY
ENTER INTO CONTRACTS TO EFFECTUATE ITS YOUTH DEVELOPMENT PROGRAM  ESTAB-
LISHED AND APPROVED AS PROVIDED IN THIS ARTICLE.
  C.  EACH MUNICIPALITY SHALL DEVELOP, IN CONSULTATION WITH THE APPLICA-
BLE MUNICIPAL YOUTH BUREAU, A COMPREHENSIVE PLAN TO OFFER YOUTH DEVELOP-

S. 2607--D                         47                         A. 3007--D

MENT PROGRAMS. SUCH COMPREHENSIVE PLAN SHALL BE SUBJECT TO THE  APPROVAL
OF THE OFFICE OF CHILDREN AND FAMILY SERVICES IN ACCORDANCE WITH SUBPAR-
AGRAPH TWO OF THIS PARAGRAPH AND SHALL BE SUBMITTED BY EACH MUNICIPALITY
IN  A  MANNER  AND  AT  SUCH TIMES AND FOR SUCH PERIODS AS THE OFFICE OF
CHILDREN AND FAMILY SERVICES SHALL DETERMINE.
  (1) SUCH COMPREHENSIVE PLAN SHALL:
  (I) DESCRIBE THE  NEED  IN  THE  MUNICIPALITY  FOR  YOUTH  DEVELOPMENT
PROGRAMS, AND SPECIFY, AT MINIMUM, HOW THE MUNICIPALITY WILL ADDRESS THE
NEED  FOR  YOUTH  DEVELOPMENT IN VILLAGES, TOWNS AND CITIES WHICH HAVE A
YOUTH POPULATION OF TWENTY THOUSAND OR MORE PERSONS;
  (II) DETAIL HOW THE MUNICIPALITY WILL ALLOCATE THE FUNDING IT RECEIVES
PURSUANT TO THIS SUBDIVISION, INCLUDING AN  ACCOUNTING  OF  ALL  OF  THE
ELIGIBLE  ENTITIES  WITHIN  SUCH  MUNICIPALITY THAT WILL RECEIVE FUNDING
UNDER THIS SUBDIVISION, THE YOUTH DEVELOPMENT SERVICES THAT  SUCH  ENTI-
TIES  WILL  PROVIDE,  AND  THE  AMOUNT  OF FUNDING THAT EACH ENTITY WILL
RECEIVE;
  (III) SPECIFY HOW THE MUNICIPALITY WILL MEASURE  PERFORMANCE  OUTCOMES
FOR SUCH SERVICES AND PROGRAMS COVERED UNDER THE PLAN;
  (IV)  SPECIFY  THE  PROJECTED  PERFORMANCE  OUTCOMES  FOR SERVICES AND
PROGRAMS COVERED UNDER THE PLAN, INCLUDING PROJECTED  POSITIVE  OUTCOMES
FOR YOUTH WHO PARTICIPATE IN THE SERVICES AND PROGRAMS; AND
  (V)  PROVIDE  INFORMATION  ON  THE  PERFORMANCE  OUTCOMES  OF SERVICES
PROVIDED UNDER THE MUNICIPALITY'S MOST RECENT PLAN APPROVED PURSUANT  TO
THIS  SUBDIVISION, INCLUDING OUTCOME BASED MEASURES THAT DEMONSTRATE THE
QUALITY OF SERVICES PROVIDED AND PROGRAM EFFECTIVENESS OF PROGRAMS FUND-
ED UNDER SUCH PLAN.
  (2) THE OFFICE OF CHILDREN AND FAMILY SERVICES MAY APPROVE ALL OR PART
OF A MUNICIPALITY'S COMPREHENSIVE PLAN. IF THE OFFICE DOES NOT APPROVE A
MUNICIPALITY'S COMPREHENSIVE PLAN, SUCH MUNICIPALITY  SHALL  HAVE  SIXTY
DAYS FROM RECEIPT OF THE NOTIFICATION OF DISAPPROVAL TO SUBMIT A REVISED
PLAN.
  (3)  IF  THE MUNICIPALITY IS SEEKING STATE AID TO PROVIDE SERVICES FOR
RUNAWAY AND HOMELESS YOUTH, AS DEFINED IN  ARTICLE  NINETEEN-H  OF  THIS
CHAPTER, THE RUNAWAY AND HOMELESS YOUTH PLAN, AS REQUIRED BY SUBDIVISION
TWO  OF  THIS  SECTION,  SHALL BE SUBMITTED AS PART OF THE COMPREHENSIVE
PLAN THAT IS REQUIRED PURSUANT TO THIS PARAGRAPH; PROVIDED HOWEVER, THAT
STATE AID TO PROVIDE SERVICES FOR RUNAWAY AND  HOMELESS  YOUTH  SERVICES
SHALL  BE  FROM,  AND LIMITED TO, FUNDS APPROPRIATED SEPARATELY FOR SUCH
RUNAWAY AND HOMELESS YOUTH PROGRAM PURPOSES BY THE STATE, AND SHALL  NOT
BE INCLUDED UNDER THE LIMITS SET FORTH IN THIS SUBDIVISION.
  S  3. Subdivision 2 of section 420 of the executive law, as amended by
chapter 182 of the laws of 2002, is amended to read as follows:
  2. Runaway and homeless youth plan; state aid.
  a. A [county] MUNICIPALITY may submit to the [commissioner] OFFICE  OF
CHILDREN  AND  FAMILY  SERVICES a plan for the providing of services for
runaway and homeless youth, as defined in  article  nineteen-H  of  this
chapter.  Where such [county] MUNICIPALITY is receiving state aid pursu-
ant to paragraph a of subdivision one of this section, such runaway  and
homeless  youth  plan  shall  be  submitted as part of the comprehensive
[county] plan and shall be consistent  with  the  goals  and  objectives
therein. A runaway and homeless youth plan shall be developed in consul-
tation  with  the [county] MUNICIPAL youth bureau and the county or city
department of social services, shall be in  accordance  with  the  regu-
lations  of  the  [commissioner] OFFICE OF CHILDREN AND FAMILY SERVICES,
shall provide for a coordinated range of services for runaway and  home-
less  youth  and their families including preventive, temporary shelter,

S. 2607--D                         48                         A. 3007--D

transportation, counseling, and other necessary  assistance,  and  shall
provide for the coordination of all available county resources for runa-
way  and  homeless youth and their families including services available
through  the [county] MUNICIPAL youth bureau, the county or city depart-
ment of social services, local boards of education, local drug and alco-
hol programs and organizations or programs which  have  past  experience
dealing   with  runaway  and  homeless  youth.  Such  plan  may  include
provisions for transitional  independent  living  support  programs  for
homeless youth between the ages of sixteen and twenty-one as provided in
article nineteen-H of this chapter. Such plan shall also provide for the
designation and duties of the runaway and homeless youth service coordi-
nator  defined  in section five hundred thirty-two-a of this chapter who
is available on a  twenty-four  hour  basis  and  maintains  information
concerning  available  shelter  space, transportation and services. Such
plan may include provision for the per diem reimbursement  for  residen-
tial  care  of  runaway  and homeless youth in approved runaway programs
which are authorized agencies, provided that such per diem reimbursement
shall not exceed a total of thirty days for any one youth.
  A-1. EACH MUNICIPALITY THAT DOES NOT SUBMIT  A  RUNAWAY  AND  HOMELESS
YOUTH  PLAN  IN  ACCORDANCE  WITH PARAGRAPH A OF THIS SUBDIVISION, SHALL
INCLUDE WITHIN THEIR COMPREHENSIVE PLAN SUBMITTED PURSUANT  TO  SUBDIVI-
SION  ONE  OF THIS SECTION, AN ASSESSMENT OF THE NEED WITHIN THE MUNICI-
PALITY FOR SERVICES TO ASSIST RUNAWAY AND HOMELESS YOUTH  AND  YOUTH  IN
NEED  OF CRISIS INTERVENTION OR RESPITE SERVICES. PROVIDED HOWEVER, THAT
STATE AID TO PROVIDE FOR RUNAWAY AND HOMELESS YOUTH  SERVICES  SHALL  BE
FROM  AND  LIMITED TO FUNDS APPROPRIATED SEPARATELY FOR SUCH RUNAWAY AND
HOMELESS YOUTH PROGRAM PURPOSES BY THE STATE, AND SHALL NOT BE  INCLUDED
UNDER THE LIMITS SET FORTH IN SUBDIVISION ONE OF THIS SECTION.
  b.  Each  [county]  MUNICIPALITY  shall  submit  to the [commissioner]
OFFICE OF CHILDREN AND FAMILY SERVICES such  additional  information  as
the [commissioner] OFFICE shall require, including but not limited to:
  (1)  A  description  of  the  current  runaway and homeless population
including their age, place of origin, family status, service  needs  and
eventual disposition;
  (2)  A  description  of  the public and private resources available to
serve runaway and homeless youth within the [county] MUNICIPALITY;
  (3) A description of new services to be provided and current  services
to be expanded.
  c.  The  [commissioner]  OFFICE  OF CHILDREN AND FAMILY SERVICES shall
review such plan IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH  C  OF
SUBDIVISION  ONE OF THIS SECTION and may approve or disapprove such plan
or any part, program, or project within such plan, and may propose  such
modifications and conditions as deemed appropriate and necessary.
  d.  (1) [Counties] MUNICIPALITIES having an approved runaway and home-
less youth plan pursuant  to  this  subdivision  shall  be  entitled  to
reimbursement by the state for sixty percent of the entire amount of the
expenditures  for  programs  contained  in  such plan as approved by the
[commissioner] OFFICE OF  CHILDREN  AND  FAMILY  SERVICES,  after  first
deducting  therefrom  any federal or other state funds received or to be
received on account thereof. All reimbursement pursuant to this subdivi-
sion shall be from and limited to funds appropriated separately for such
runaway and homeless youth program purposes by the state, and shall  not
be  included  under  the  limits set in subdivision one of this section.
[The county's] A MUNICIPALITY'S share of the cost of such  programs  may
be  met in part by donated private funds or in-kind services, as defined
by the office, provided that such private funding or receipt of services

S. 2607--D                         49                         A. 3007--D

shall not in the aggregate be more than fifty percent of such [county's]
MUNICIPALITY'S share.
  (2)  Notwithstanding  any inconsistent provision of law and subject to
funds appropriated separately therefor, a [county]  MUNICIPALITY  having
an  approved  runaway  and homeless youth plan which includes provisions
for transitional independent living support programs shall  be  entitled
to  reimbursement by the state for sixty percent of the entire amount of
the approved expenditures for transitional  independent  living  support
programs  contained in the plan as approved by the [commissioner] OFFICE
OF CHILDREN AND FAMILY SERVICES.  The [county's] MUNICIPALITY'S share of
the cost of such programs may be met by donated private funds or in-kind
services, as defined by  the  office,  provided  that  such  receipt  of
in-kind  services  shall not in the aggregate be more than fifty percent
of such [county's] MUNICIPALITY'S share.
  S 4. Paragraphs a and c of subdivision 5 of section 420 of the  execu-
tive  law,  as  added by chapter 160 of the laws of 2004, are amended to
read as follows:
  a. Notwithstanding any other provision of law, the office of  children
and  family  services shall plan for the statewide implementation by the
thirty-first day of December, two thousand eight, of a county child  and
family  services  plan  that  combines  the  [county] comprehensive plan
required by this section and the multi-year consolidated  services  plan
required  by  section  thirty-four-a  of  the social services law into a
single plan.
  c. The office of children and family services may waive any regulatory
requirements relating to the content and timing of  [county]  comprehen-
sive plans that may impede the ability of a county to implement a county
child and family services plan.
  S  5. Section 422 of the executive law, as added by chapter 636 of the
laws of 1956, subdivisions 1, 3, 4, 7, 8 and 9 as amended by chapter 182
of the laws of 2002, subdivision 5 as amended by chapter 879 of the laws
of 1976 and subdivision 10 as added by chapter 400 of the laws of  1978,
is amended to read as follows:
  S 422. Youth  bureaus[;  recreation  and  youth  service projects; and
other youth programs]. 1. A. Any [county or]  city,  [or  any]  town  or
village  [with  a  total  population of twenty thousand or more persons]
desiring to establish a LOCAL youth bureau[, or any municipality  desir-
ing to establish a recreation, youth service or other project] may apply
to the [office] MUNICIPALITY WHICH SUCH CITY, TOWN OR VILLAGE IS LOCATED
WITHIN,  for approval of its plans. The application shall be in writing,
specifying the nature of the program, and shall contain such information
as the [office] MUNICIPALITY shall require.
  B. ALL LOCAL YOUTH BUREAUS APPROVED BY  THE  OFFICE  OF  CHILDREN  AND
FAMILY SERVICES ON OR BEFORE APRIL FIRST, TWO THOUSAND THIRTEEN SHALL BE
DEEMED APPROVED LOCAL YOUTH BUREAUS FOR THE PURPOSE OF THIS ARTICLE.
  2.  No  application  for  the  approval  of  [plans for] a LOCAL youth
[program] BUREAU shall be considered BY THE MUNICIPALITY  that  has  not
been  first  approved  by the governing body of the [municipality] CITY,
TOWN OR VILLAGE making THE application.
  3. The [office] MUNICIPALITY may approve or  disapprove  the  proposed
LOCAL youth [program as filed, or, if its modifications are not objected
to by the applicant, approve the same with such modifications] BUREAU.
  4.  The  approval  of  [any  proposed]  A  LOCAL youth [program by the
office] BUREAU shall authorize the  [county,]  city  [or  municipality],
TOWN  OR  VILLAGE  to  establish,  operate and maintain the program [and
entitle it to state aid as herein  set  forth;  provided,  however,  the

S. 2607--D                         50                         A. 3007--D

office  may  at  any  time subsequently withdraw its approval or require
changes in a plan or program previously approved]  AND  WILL  ALLOW  THE
MUNICIPALITY  TO  DISTRIBUTE  TO  SUCH  LOCAL  YOUTH  BUREAU,  STATE AID
RECEIVED  IN  ACCORDANCE  WITH  SUBDIVISION  ONE OF SECTION FOUR HUNDRED
TWENTY OF THIS ARTICLE.
  5. Two or more municipalities may join together to establish,  operate
and  maintain  A  MUNICIPAL  youth  [programs]  BUREAU  and may make and
perform  agreements  in  connection  therewith.  Such  agreements  shall
include  provisions for the proportionate cost to be borne by each muni-
cipality and for the manner of employment of personnel and  may  provide
that a fiscal officer of one such municipality shall be the custodian of
the  moneys made available for expenditure for such purposes by all such
municipalities and that such fiscal officer may make payments  therefrom
upon  audit  of  the  appropriate auditing body or officer of his OR HER
municipality. In making claims for state aid pursuant to SUBDIVISION ONE
OF SECTION FOUR HUNDRED TWENTY OF this article, each  such  municipality
shall  claim for its proportionate share of THE TOTAL JOINT expenditures
so made.  However, where it is provided that there shall be a disbursing
municipality, such disbursing municipality shall  claim  for  the  total
joint  program expenditures so made and shall disburse such state aid to
each participating municipality based upon the  proportionate  share  of
expenditures so made.
  6.  [A  municipality  and the board of education, board of trustees or
the trustee of a school district may make and perform agreements provid-
ing for the operation by a school district of a  youth  service,  recre-
ation or other project of such municipality.
  7.  Moneys  derived by a municipality from taxation, from profits of a
public utility service operated by it, or from gifts or grants available
therefor, may be made available in accordance with law and expended  for
improvements  to  real property owned by it and held for school purposes
or owned by a school district in whole or in part located in such  muni-
cipality where such real property is used by such municipality for youth
program  purposes and where such improvements are required in connection
with such purposes. Such municipality may receive reimbursement for such
expenditures as herein provided, subject to the rules and regulations of
the office.
  8. The office, by rule and regulation, may authorize  expenditures  to
be made by a municipality for work to be done or improvements to be made
to real property for youth program purposes.
  9.  Subject to the regulations of the office, a municipality may enter
into contracts to effectuate its youth program established and  approved
as provided in this article.
  10.]  Notwithstanding  any provision of law, rule or regulation to the
contrary, no [city, town or village] MUNICIPAL YOUTH BUREAU SERVING  ONE
OR  MORE  MUNICIPALITIES  with  a  TOTAL youth population of twenty-five
thousand or less [residing in such  city,  town  or  village]  shall  be
required  under  this  article,  or  for purposes of receiving state aid
hereunder, to employ a full time executive director for their respective
proposed or approved youth programs, as the case may be.
  S 6. Subdivisions 4, 5 and 6 of section 532-a of the executive law, as
amended by section 14 of part E of chapter 57 of the laws of  2005,  are
amended and a new subdivision 8 is added to read as follows:
  4.  "Approved  runaway program" shall mean any non-residential program
approved by the office of children and family services after  submission
by  the [county youth bureau] MUNICIPALITY, as part of its comprehensive
plan, or any residential facility which is  operated  by  an  authorized

S. 2607--D                         51                         A. 3007--D

agency  as  defined in subdivision ten of section three hundred seventy-
one of the social services law, and approved by the office  of  children
and  family services after submission by the [county youth bureau] MUNI-
CIPALITY  as part of its comprehensive plan, established and operated to
provide services to runaway and homeless youth in  accordance  with  the
regulations of the office of temporary and disability assistance and the
office  of  children and family services. Such programs may also provide
non-residential crisis intervention and residential respite services  to
youth  in need of crisis intervention or respite services, as defined in
this section.   Residential respite  services  in  an  approved  runaway
program  may  be provided for no more than twenty-one days in accordance
with the regulations of the office of children and family services.
  5. "Runaway and homeless youth service  coordinator"  shall  mean  any
person  SO  designated  by  [a county] A MUNICIPALITY whose duties shall
include but not be limited to answering inquiries at any time concerning
transportation, shelter and other services available  to  a  runaway  or
homeless  youth  or  a  youth  in need of crisis intervention or respite
services.
  6. "Transitional independent living support program"  shall  mean  any
non-residential  program  approved  by the office of children and family
services after submission by the [county youth bureau]  MUNICIPALITY  as
part  of its comprehensive plan, or any residential facility approved by
the office of children and  family  services  after  submission  by  the
[county  youth bureau] MUNICIPALITY as part of its comprehensive plan TO
OFFER YOUTH DEVELOPMENT PROGRAMS, established and  operated  to  provide
supportive services, for a period of up to eighteen months in accordance
with  the  regulations of the office of children and family services, to
enable homeless youth between the ages  of  sixteen  and  twenty-one  to
progress  from  crisis care and transitional care to independent living.
Such transitional independent living support program  may  also  provide
services  to  youth  in need of crisis intervention or respite services.
Notwithstanding the time limitation in paragraph (i) of subdivision  (d)
of  section  seven hundred thirty-five of the family court act, residen-
tial respite services may be  provided  in  a  transitional  independent
living support program for a period of more than twenty-one days.
  8.  "MUNICIPALITY"  SHALL MEAN A COUNTY, OR A CITY HAVING A POPULATION
OF ONE MILLION OR MORE.
  S 7. Subdivision 2 of section 532-b of the executive law, as added  by
chapter 722 of the laws of 1978, is amended to read as follows:
  2.  The  runaway  youth may remain in the program on a voluntary basis
for a period not to exceed thirty days from the date of admission  where
the filing of a petition pursuant to article ten of the family court act
is  not  contemplated,  in  order  that arrangements can be made for the
runaway youth's return home, alternative residential placement  pursuant
to section three hundred ninety-eight of the social services law, or any
other  suitable  plan.  If the runaway youth and the parent, guardian or
custodian agree, in writing, the runaway youth may remain in the runaway
program up to sixty days without the filing of a  petition  pursuant  to
article  ten of the family court act, provided that in any such case the
facility shall first have obtained the approval of the [county] APPLICA-
BLE MUNICIPAL runaway coordinator, who shall notify the [county] MUNICI-
PALITY'S youth bureau of his OR HER approval together with  a  statement
as to the reason why such additional residential stay is necessary and a
description  of  the  efforts  being  made  to find suitable alternative
living arrangements for such youth.

S. 2607--D                         52                         A. 3007--D

  S 8. Paragraph (a) of subdivision 6 of  section  34-a  of  the  social
services law, as added by chapter 160 of the laws of 2004, is amended to
read as follows:
  (a) Notwithstanding any other provision of law, the office of children
and  family services shall plan for the statewide implementation, by the
thirty-first day of December, two thousand eight, of the use by counties
of a child and family services plan that combines the multi-year consol-
idated services plan required by this section and the  [county]  compre-
hensive  plan  required  by section four hundred twenty of the executive
law into a single plan.
  S 9. This act shall take effect January 1, 2014 and shall  expire  and
be deemed repealed on December 31, 2018.

                                 PART H
                          Intentionally omitted

                                 PART I
                          Intentionally omitted

                                 PART J

  Section 1.  Subdivisions 12 and 13 of section 425 of the real property
tax law, as amended by section 1 of part B of chapter 389 of the laws of
1997, paragraph (a) of subdivision 12 as amended by section 12 of part W
of  chapter  56  of the laws of 2010, paragraph (b) of subdivision 12 as
amended and paragraph (d) of subdivision 12 as added  by  section  1  of
part  N  of chapter 58 of the laws of 2011 and paragraph (d) of subdivi-
sion 13 as added by section 2 of part N of chapter 58  of  the  laws  of
2011, are amended and a new subdivision 14 is added to read as follows:
  12.  Revocation  of  prior  exemptions.  (a) Generally. In addition to
discontinuing the exemption on the  next  ensuing  tentative  assessment
roll,  if  the assessor determines that the property improperly received
the exemption on one or more of the  [three]  SIX  preceding  assessment
rolls,  PROVIDED  THAT  FINAL  ASSESSMENT ROLLS THAT WERE FILED PRIOR TO
APRIL FIRST, TWO THOUSAND TEN SHALL NOT BE SUBJECT TO THE PROVISIONS  OF
THIS  SUBDIVISION,  or  is advised by the department that the applicable
income standard was not  satisfied  with  regard  to  a  property  which
received the enhanced exemption on one or more of those rolls, he or she
shall  proceed  to  revoke  the  improperly  granted  prior exemption or
exemptions. If the assessor is advised that the department was unable to
verify the income eligibility of one or more participants in the  income
verification  program,  the  assessor  shall  mail  that person or those
persons a notice in a form prescribed by the department requesting  that
the  person  or  persons document their income in the same manner and to
the same extent as if the person or persons were submitting  an  initial
application  for  the enhanced STAR exemption. If such income documenta-
tion is not provided within forty-five days of such request, or  if  the
documentation  provided does not establish the eligibility of the person
or persons to the assessor's satisfaction, the assessor shall treat  the
exemption  as  an improperly granted exemption and proceed in the manner
provided by this subdivision.
  (b) Procedure. The assessed value attributable to each such improperly
granted exemption shall be entered separately on the next ensuing tenta-
tive or final assessment roll. The provisions of  section  five  hundred

S. 2607--D                         53                         A. 3007--D

fifty-one  or  five hundred fifty-three of this chapter, relating to the
entry by the assessor of omitted real property on a tentative  or  final
assessment  roll,  shall  apply  so far as practicable to the revocation
procedure IN THIS SUBDIVISION, except that:
  (I)  the  tax rate to be applied to any revoked exemption shall be the
tax rate that was applied to the  corresponding  assessment  roll,  [and
that]
  (II)  interest  shall  then  be added to each such product at the rate
prescribed by section nine hundred twenty-four-a of this chapter or such
other law as may be applicable for each month or portion  thereon  since
the  levy  of  taxes  upon  the  assessment roll or rolls upon which the
exemption was granted, AND
  (III) FOR IMPROPERLY GRANTED STAR EXEMPTIONS OCCURRING  ON  ASSESSMENT
ROLLS  FILED ON AND AFTER APRIL FIRST, TWO THOUSAND THIRTEEN, A PROCESS-
ING FEE OF FIVE HUNDRED DOLLARS SHALL  BE  ADDED.  SUCH  PROCESSING  FEE
IMPOSED  PURSUANT TO THIS SUBDIVISION SHALL BE RETAINED BY THE ASSESSING
UNIT AND THE STATE SHALL BE ENTITLED TO NO PART THEREOF.
  (c) Rights of owners. Each owner or owners shall be  given  notice  of
the  possible  revocation  UNDER  THIS SUBDIVISION of their exemption or
exemptions at the time and  in  the  manner  provided  by  section  five
hundred  ten  or  five hundred fifty-three of this chapter, and shall be
entitled to seek administrative and judicial review of  such  action  in
the manner provided by law.
  (d)  Applicability.  The  provisions  of this subdivision shall not be
applicable to the extent that  the  prior  exemptions  shall  have  been
renounced pursuant to section four hundred ninety-six of this article.
  (E)  RECORDS  RETENTION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO
IMPOSE UPON AN ASSESSOR A DUTY TO RETAIN RECORDS  FOR  A  PERIOD  LONGER
THAN  THE  PERIOD  PRESCRIBED  PURSUANT TO THE ARTS AND CULTURAL AFFAIRS
LAW, OR TO REQUIRE AN ASSESSOR TO  CONDUCT  A  REVIEW  OF  A  TAXPAYER'S
ELIGIBILITY  WHEN  THE  ASSESSOR HAS DISPOSED OF THE RELEVANT RECORDS IN
ACCORDANCE WITH SUCH LAW.
  13. Penalty for material misstatements. (a) Generally. [If the  asses-
sor  should determine, within three years from the filing of an applica-
tion for exemption pursuant to this section, that there was  a  material
misstatement  on  the  application,  he or she shall proceed to impose a
penalty tax against the property of one hundred dollars.] IF THE  ASSES-
SOR SHOULD DETERMINE THAT THERE WAS A MATERIAL MISSTATEMENT ON AN APPLI-
CATION FOR EXEMPTION PURSUANT TO THIS SECTION THAT WAS FILED ON OR AFTER
OCTOBER  FIRST,  TWO  THOUSAND  TEN, HE OR SHE SHALL PROCEED TO IMPOSE A
PENALTY TAX AGAINST THE PROPERTY. IF THE APPLICATION WAS FILED PRIOR  TO
OCTOBER  FIRST,  TWO  THOUSAND  THIRTEEN,  THE  PENALTY TAX SHALL BE ONE
HUNDRED DOLLARS, PROVIDED THAT THE ASSESSOR'S DETERMINATION MUST BE MADE
WITHIN THREE YEARS OF THE FILING OF THE APPLICATION. IF THE  APPLICATION
WAS  FILED ON OR AFTER OCTOBER FIRST, TWO THOUSAND THIRTEEN, THE PENALTY
TAX SHALL BE EITHER ONE HUNDRED DOLLARS OR TWENTY PERCENT OF THE IMPROP-
ERLY RECEIVED TAX SAVINGS, WHICHEVER IS GREATER NOT TO EXCEED TWO  THOU-
SAND FIVE HUNDRED DOLLARS, PROVIDED FURTHER THAT THE ASSESSOR'S DETERMI-
NATION  MUST  BE MADE WITHIN SIX YEARS OF THE FILING OF THE APPLICATION.
An application shall be deemed to contain a  material  misstatement  for
this purpose when either:
  (i)  the  applicant  or applicants claimed that the property was their
primary residence, when it was not; or
  (ii) THE APPLICANT OR APPLICANTS CLAIMED THAT  THEY  HAD  RELINQUISHED
THE  STAR  EXEMPTION  ON  THEIR FORMER PRIMARY RESIDENCE, WHEN THEY KNEW
THEY HAD NOT; OR

S. 2607--D                         54                         A. 3007--D

  (III) in the case of an application for  the  enhanced  exemption  for
property owned by senior citizens, the applicant or applicants misrepre-
sented  their age or income so as to appear eligible for such exemption,
when they were not.
  (b)  Procedure. When the assessor determines that a penalty tax should
be imposed, the penalty tax shall be entered on the next ensuing  tenta-
tive  or final assessment roll. The procedures set forth in section five
hundred fifty-one or five hundred fifty-three of this chapter,  relating
to  the entry by the assessor of omitted real property on a tentative or
final assessment roll, shall apply so far as practicable when imposing a
penalty tax pursuant to this subdivision. Each owner or owners shall  be
given notice of the possible imposition of a penalty tax at the time and
in  the  manner  provided  by  section  five hundred ten or five hundred
fifty-three of this chapter, and shall be entitled to  seek  administra-
tive  and  judicial review of such action in the manner provided by law.
Any penalty tax imposed pursuant to this subdivision shall  be  retained
by  the  assessing  unit  AND  THE  STATE  SHALL  BE ENTITLED TO NO PART
THEREOF.
  (c) Additional consequences. A penalty tax may be imposed pursuant  to
this  subdivision whether or not the improper exemption has been revoked
in the manner provided by this section. In addition, a person or persons
who are found to have made a material misstatement shall be disqualified
from further exemption pursuant to this section for a  period  of  [five
years,  and]  FIVE  YEARS IF SUCH MISSTATEMENT APPEARS ON AN APPLICATION
FILED PRIOR TO OCTOBER FIRST, TWO THOUSAND THIRTEEN, AND  SIX  YEARS  IF
SUCH  MISSTATEMENT  APPEARS ON AN APPLICATION FILED THEREAFTER. IN ADDI-
TION, SUCH PERSON OR PERSONS may be subject to prosecution  pursuant  to
the penal law.
  (d)  Applicability.  The  provisions  of this subdivision shall not be
applicable to the extent that  the  prior  exemptions  shall  have  been
renounced pursuant to section four hundred ninety-six of this article.
  (E)  RECORDS  RETENTION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO
IMPOSE UPON AN ASSESSOR A DUTY TO RETAIN RECORDS  FOR  A  PERIOD  LONGER
THAN  THE  PERIOD  PRESCRIBED  PURSUANT TO THE ARTS AND CULTURAL AFFAIRS
LAW, OR TO REQUIRE AN ASSESSOR TO  CONDUCT  A  REVIEW  OF  A  TAXPAYER'S
ELIGIBILITY  WHEN  THE  ASSESSOR HAS DISPOSED OF THE RELEVANT RECORDS IN
ACCORDANCE WITH SUCH LAW.
  14. STAR REGISTRATION PROGRAM. (A) THE  COMMISSIONER  SHALL  ESTABLISH
AND  IMPLEMENT  A PROGRAM UNDER WHICH ALL OWNERS OF PROPERTIES INITIALLY
APPLYING FOR AND  THOSE  RECEIVING  A  BASIC  STAR  EXEMPTION  SHALL  BE
REQUIRED  TO  BE REGISTERED WITH THE COMMISSIONER IN THE MANNER, AT SUCH
INTERVALS, AND BY THE DATE OR  DATES  PRESCRIBED  BY  THE  COMMISSIONER,
PROVIDED THAT:
  (I)  OWNERS  OF PROPERTIES THAT ARE RECEIVING THE BASIC STAR EXEMPTION
DURING THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR  SHALL
BE  REQUIRED  TO  INITIALLY REGISTER WITH THE COMMISSIONER NO LATER THAN
APRIL FIRST, TWO THOUSAND FOURTEEN;
  (II) THE COMMISSIONER SHALL PROVIDE WRITTEN NOTICE OF THE REGISTRATION
REQUIREMENT TO SUCH OWNERS AT LEAST SIXTY DAYS BEFORE  THE  REGISTRATION
DEADLINE ESTABLISHED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH;
  (III)  AN  OWNER WHO FAILS TO REGISTER BY THE REGISTRATION DEADLINE SO
ESTABLISHED SHALL BE PERMITTED TO FILE A PETITION WITH THE  COMMISSIONER
REQUESTING  THAT  THE COMMISSIONER EXCUSE SUCH FAILURE AND ACCEPT A LATE
REGISTRATION, PROVIDED THAT SUCH PETITION SHALL EXPLAIN WHY SUCH FAILURE
OCCURRED AND SHALL BE FILED NO LATER THAN ONE YEAR AFTER SUCH DEADLINE;

S. 2607--D                         55                         A. 3007--D

  (IV) AFTER THE INITIAL REGISTRATION PROGRAM HAS BEEN IMPLEMENTED,  THE
COMMISSIONER  SHALL  ENDEAVOR  TO  CONFIRM THE CONTINUING ELIGIBILITY OF
STAR RECIPIENTS THROUGH MEANS OTHER THAN  RE-REGISTRATION,  SUCH  AS  BY
REVIEWING  THE  RELEVANT  DATA APPEARING ON PERSONAL INCOME TAX RETURNS.
THE  COMMISSIONER  MAY  REINSTATE THE REGISTRATION REQUIREMENT, PROVIDED
THAT IN NO EVENT MAY THE COMMISSIONER REQUIRE REGISTERED STAR RECIPIENTS
TO RE-REGISTER MORE THAN ONCE IN A THREE-YEAR PERIOD  IF  THEIR  PRIMARY
ADDRESSES HAVE NOT CHANGED.
  (B)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMIS-
SIONER SHALL DIRECT THE REMOVAL OR DENIAL OF A STAR EXEMPTION IF  HE  OR
SHE FINDS THAT ONE OR MORE OF THE FOLLOWING CONDITIONS EXIST:
  (I)  ALL  OWNERS  OF  THE  PROPERTY  HAVE  NOT  BEEN REGISTERED BY THE
PRESCRIBED DATE AND NO ACCEPTABLE JUSTIFICATION HAS BEEN  PRESENTED  FOR
SUCH FAILURE;
  (II) THE OWNERS OF THE PROPERTY ARE IMPROPERLY RECEIVING MULTIPLE STAR
EXEMPTIONS;
  (III)  THE  PROPERTY DOES NOT SERVE AS THE PRIMARY RESIDENCE OF ANY OF
ITS OWNERS;
  (IV) THE APPLICABLE INCOME LIMITATION HAS BEEN EXCEEDED; OR
  (V) THE PROPERTY IS OTHERWISE INELIGIBLE FOR THE STAR EXEMPTION.
  (C) PRIOR TO DIRECTING THAT A STAR  EXEMPTION  BE  REMOVED  OR  DENIED
PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL PROVIDE THE PROPER-
TY  OWNERS  WITH NOTICE AND AN OPPORTUNITY TO SHOW THE COMMISSIONER THAT
THE PROPERTY IS ELIGIBLE TO RECEIVE THE EXEMPTION. IF THE OWNERS FAIL TO
RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING  THEREOF,
OR  IF  THEIR  RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION
THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION, THE COMMISSIONER  SHALL
DIRECT  THE  ASSESSOR  OR  OTHER PERSON HAVING CUSTODY OR CONTROL OF THE
ASSESSMENT ROLL OR TAX ROLL TO REMOVE OR  DENY  THE  EXEMPTION,  AND  TO
CORRECT THE ROLL ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE
ASSESSOR  OR  OTHER  PERSON  HAVING CUSTODY OR CONTROL OF THE ASSESSMENT
ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH  PERSON  WITHOUT  THE
NEED FOR FURTHER DOCUMENTATION OR APPROVAL.
  (D) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION SIX
OF  THIS  SECTION,  NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW
HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REMOVAL OR  DENIAL  OF
AN  EXEMPTION  PURSUANT  TO  THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE
REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO  TITLE  ONE
OR  ONE-A  OF  ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE
CHALLENGED BEFORE THE DEPARTMENT OF TAXATION AND FINANCE.  IF A TAXPAYER
IS DISSATISFIED WITH THE DEPARTMENT'S FINAL DETERMINATION, THE  TAXPAYER
MAY  APPEAL  THAT  DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE  ISSUANCE  OF  THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD'S
DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO
ARTICLE  SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER
SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A
COURT ACTION, ADMINISTRATIVE PROCEEDING  OR  ANY  OTHER  FORM  OF  LEGAL
RECOURSE  AGAINST  THE  COMMISSIONER,  THE  DEPARTMENT  OF  TAXATION AND
FINANCE, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR  OR
OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL REGARDING SUCH ACTION.
  (E) THE COMMISSIONER SHALL BE ENTITLED TO UTILIZE INFORMATION FROM ANY
FILINGS OF A TAXPAYER WITH THE DEPARTMENT OF  TAXATION  AND  FINANCE  IN
CONJUNCTION WITH THE STAR REGISTRATION PROGRAM.

S. 2607--D                         56                         A. 3007--D

  S  2.  Subdivision 2 of section 200-a of the real property tax law, as
added by section 7 of part W of chapter 56  of  the  laws  of  2010,  is
amended to read as follows:
  2.  The  state  board  of  real  property  tax services shall have the
following powers in relation to real property tax administration:
  (a) The power to determine the final special franchise value,  special
franchise  assessment,  railroad ceiling, state equalization rate or any
other equalization product established  pursuant  to  this  chapter  for
which  a  complaint has been filed, as provided by sections four hundred
eighty-nine-o, four hundred eighty-nine-ll, six hundred fourteen, twelve
hundred ten, twelve hundred fifty-three, and twelve hundred  sixty-three
of this chapter;
  (b) The power to hear and determine reviews relating to determinations
made  by  county  equalization  agencies,  as provided by sections eight
hundred sixteen and eight hundred eighteen of this chapter; AND
  (C) THE POWER TO HEAR AND DETERMINE REVIEWS RELATING TO DETERMINATIONS
OF STAR ELIGIBILITY MADE BY THE DEPARTMENT OF TAXATION  AND  FINANCE  AS
PROVIDED BY SECTION FOUR HUNDRED TWENTY FIVE OF THIS CHAPTER.
  S 3. This act shall take effect April 1, 2013.

                                 PART K
                          Intentionally omitted

                                 PART L
                          Intentionally omitted

                                 PART M

  Section  1.  Notwithstanding  any other provision of law, and provided
that the reserves in the project pool insurance account of the  mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties  law  are  sufficient  to attain and maintain the credit rating (as
determined by the agency) required to accomplish the  purposes  of  such
account, the board of directors of the state of New York mortgage agency
shall  authorize the transfer from the project pool insurance account of
the mortgage insurance fund to the state treasury  for  deposit  in  the
general  fund a total sum not to exceed one hundred four million dollars
as soon as practicable but no later than March 31, 2014.
  S 2. Notwithstanding any other provision of  law,  the  housing  trust
fund  corporation  (the  corporation)  may  provide, for purposes of the
neighborhood preservation program, a sum not  to  exceed  eight  million
four  hundred  seventy-nine  thousand dollars for the fiscal year ending
March 31, 2014. Notwithstanding any other provision of law, and provided
that the reserves in the project pool insurance account of the  mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties  law  are  sufficient  to attain and maintain the credit rating (as
determined by the agency) required to accomplish the  purposes  of  such
account, the board of directors of the state of New York mortgage agency
shall  authorize the transfer from the project pool insurance account of
the mortgage insurance fund to the housing trust fund  corporation  (the
corporation),  for the purposes of reimbursing any costs associated with
neighborhood preservation program contracts authorized by this  section,
a  total sum not to exceed eight million four hundred seventy-nine thou-
sand dollars as soon as practicable but no later than June 30, 2013.

S. 2607--D                         57                         A. 3007--D

  S 3. Notwithstanding any other provision of  law,  the  housing  trust
fund  corporation  (the  corporation)  may  provide, for purposes of the
rural preservation program, a sum  not  to  exceed  three  million  five
hundred  thirty-nine  thousand  dollars for the fiscal year ending March
31,  2014. Notwithstanding any other provision of law, and provided that
the reserves in the project  pool  insurance  account  of  the  mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties  law  are  sufficient  to attain and maintain the credit rating (as
determined by the agency) required to accomplish the  purposes  of  such
account, the board of directors of the state of New York mortgage agency
shall  authorize the transfer from the project pool insurance account of
the mortgage insurance fund to the housing trust fund  corporation  (the
corporation),  for the purposes of reimbursing any costs associated with
rural preservation program contracts authorized by this section, a total
sum not to  exceed  three  million  five  hundred  thirty-nine  thousand
dollars as soon as practicable but no later than June 30, 2013.
  S  4.  Notwithstanding  any  other provision of law, the housing trust
fund corporation (the corporation) may  provide,  for  purposes  of  the
rural rental assistance program, a sum not to exceed twenty million four
hundred  thousand  dollars  for  the  fiscal year ending March 31, 2014.
Notwithstanding any other  provision  of  law,  and  provided  that  the
reserves in the project pool insurance account of the mortgage insurance
fund  created  pursuant  to section 2429-b of the public authorities law
are sufficient to attain and maintain the credit rating  (as  determined
by  the agency) required to accomplish the purposes of such account, the
board of directors of the  state  of  New  York  mortgage  agency  shall
authorize  the  transfer  from the project pool insurance account of the
mortgage insurance fund to  the  housing  trust  fund  corporation  (the
corporation),  for the purposes of reimbursing any costs associated with
rural rental assistance program contracts authorized by this section,  a
total  sum not to exceed twenty million four hundred thousand dollars as
soon as practicable but no later than June 30,  2013.    Notwithstanding
any  other  provision  of  law,  all  current  and existing rural rental
assistance program contracts may  be  assigned  to  the  corporation  to
administer  as  soon as practicable. Notwithstanding any other provision
of law, such funds  may  be  used  by  the  corporation  in  support  of
contracts  scheduled  to  expire in 2013-14 for as many as 10 additional
years; in support of contracts for new eligible projects  for  a  period
not  to exceed 5 years; and in support of contracts which reach their 25
year maximum in and/or prior to 2013-14 for an additional one year peri-
od.
  S 5. Notwithstanding any other provision of law, the  housing  finance
agency  may  provide,  for  costs  associated with the rehabilitation of
Mitchell Lama housing projects, a sum not to  exceed  seventeen  million
five  hundred  eighty-two  thousand  dollars  for the fiscal year ending
March 31, 2014. Notwithstanding any other provision of law, and provided
that the reserves in the project pool insurance account of the  mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties  law  are  sufficient  to attain and maintain the credit rating (as
determined by the agency) required to accomplish the  purposes  of  such
account, the board of directors of the state of New York mortgage agency
shall  authorize the transfer from the project pool insurance account of
the mortgage insurance fund to  the  housing  finance  agency,  for  the
purposes  of reimbursing any costs associated with Mitchell Lama housing
projects authorized by this section, a total sum not to exceed seventeen

S. 2607--D                         58                         A. 3007--D

million five hundred eighty-two thousand dollars as soon as  practicable
but no later than March 30, 2014.
  S  6.  Notwithstanding  any  other provision of law, the housing trust
fund corporation (the corporation) may  provide,  for  purposes  of  the
rural  and  urban  community investment fund program created pursuant to
article XXVII of the private housing finance law, a sum  not  to  exceed
three  million  five hundred thousand dollars for the fiscal year ending
March 31, 2014. Notwithstanding any other provision of law, and provided
that the reserves in the project pool insurance account of the  mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties  law  are  sufficient  to attain and maintain the credit rating (as
determined by the agency) required to accomplish the  purposes  of  such
account, the board of directors of the state of New York mortgage agency
shall  authorize the transfer from the project pool insurance account of
the mortgage insurance fund to the housing trust fund  corporation  (the
corporation),  for the purposes of reimbursing any costs associated with
rural and urban community investment fund program  contracts  authorized
by  this  section,  a total sum not to exceed three million five hundred
thousand dollars as soon as practicable but  no  later  than  March  31,
2014.
  S  7.  Notwithstanding  any  other provision of law, the housing trust
fund corporation (the corporation) may  provide,  for  the  purposes  of
carrying out the provisions of the low income housing trust fund program
created  pursuant to article XVIII of the private housing finance law, a
sum not to exceed three million dollars for the fiscal year ending March
31, 2014. Notwithstanding any other provision of law, and provided  that
the  reserves  in  the  project  pool  insurance account of the mortgage
insurance fund created pursuant to section 2429-b of the public authori-
ties law are sufficient to attain and maintain  the  credit  rating  (as
determined  by  the  agency) required to accomplish the purposes of such
account, the board of directors of the state of New York mortgage agency
shall authorize the transfer from the project pool insurance account  of
the  mortgage  insurance fund to the housing trust fund corporation (the
corporation), for the purposes of carrying out the provisions of the low
income housing trust fund program created pursuant to article  XVIII  of
the  private housing finance law authorized by this section, a total sum
not to exceed three million dollars as soon as practicable but no  later
than March 31, 2014. Such funds shall only be used to support housing in
a  metropolitan  statistical  area for persons and families whose income
does not exceed sixty percent of the median income for such metropolitan
statistical area, or housing in areas outside of a metropolitan  statis-
tical  area  for  persons or families whose income does not exceed sixty
percent of the median income for the state.
  S 8. Notwithstanding any other provision of  law,  the  housing  trust
fund  corporation  (the  corporation)  may  provide, for the purposes of
carrying out the provisions of the  urban  initiatives  program  created
pursuant  to article XVI-A of the private housing finance law, a sum not
to exceed two million dollars for the fiscal year ending March 31, 2014.
Notwithstanding any other  provision  of  law,  and  provided  that  the
reserves in the project pool insurance account of the mortgage insurance
fund  created  pursuant  to section 2429-b of the public authorities law
are sufficient to attain and maintain the credit rating  (as  determined
by  the agency) required to accomplish the purposes of such account, the
board of directors of the  state  of  New  York  mortgage  agency  shall
authorize  the  transfer  from the project pool insurance account of the
mortgage insurance fund to  the  housing  trust  fund  corporation  (the

S. 2607--D                         59                         A. 3007--D

corporation),  for  the  purposes  of carrying out the urban initiatives
program created pursuant to provisions of article XVI-A of  the  private
housing  finance  law  authorized  by  this  section, a total sum not to
exceed  two  million  dollars  as  soon as practicable but no later than
March 31, 2014.
  S 9. Notwithstanding any other provision of  law,  the  housing  trust
fund  corporation  (the  corporation)  may  provide, for purposes of the
rural area revitalization program created pursuant to article XVII-B  of
the  private  housing  finance law, a sum not to exceed one million five
hundred thousand dollars for the fiscal  year  ending  March  31,  2014.
Notwithstanding  any  other  provision  of  law,  and  provided that the
reserves in the project pool insurance account of the mortgage insurance
fund created pursuant to section 2429-b of the  public  authorities  law
are  sufficient  to attain and maintain the credit rating (as determined
by the agency) required to accomplish the purposes of such account,  the
board  of  directors  of  the  state  of  New York mortgage agency shall
authorize the transfer from the project pool insurance  account  of  the
mortgage  insurance  fund  to  the  housing  trust fund corporation (the
corporation), for the purposes of reimbursing any costs associated  with
rural  area revitalization program contracts authorized by this section,
a total sum not to exceed one million five hundred thousand  dollars  as
soon as practicable but no later than March 31, 2014.
  S 10. This act shall take effect immediately.

                                 PART N

  Section  1.  Section  21  of  the labor law is amended by adding a new
subdivision 14 to read as follows:
  14. SHALL DO ALL THINGS NECESSARY FOR THE OPERATION OF  THE  NEW  YORK
STATE  DATA CENTER ESTABLISHED IN THE DEPARTMENT IN COOPERATION WITH THE
UNITED STATES BUREAU OF THE CENSUS; TO COOPERATE WITH OTHER STATE  AGEN-
CIES,  UNIVERSITIES,  REGIONAL  ORGANIZATIONS,  BOARDS, COMMISSIONS, AND
OTHER ENTITIES IN THE DISSEMINATION OF  SOCIO-ECONOMIC  INFORMATION  AND
DATA THROUGH THE NEW YORK STATE DATA CENTER PROGRAM; IN RELATION TO SUCH
INFORMATION  AND  DATA,  TO  PROVIDE TECHNICAL ASSISTANCE TO OTHER STATE
AGENCIES, UNIVERSITIES, REGIONAL ORGANIZATIONS, BOARDS, COMMISSIONS  AND
OTHER ENTITIES; AND TO PREPARE ESTIMATES AND THE OFFICIAL PROJECTIONS OF
POPULATION, HOUSEHOLDS AND OTHER CHARACTERISTICS OF THE STATE FOR USE BY
ALL  STATE AGENCIES.   ALL EMPLOYEES TRANSFERRED TO THE DEPARTMENT SHALL
BE TRANSFERRED WITHOUT FURTHER EXAMINATION OR QUALIFICATION TO THE  SAME
OR  SIMILAR  TITLES  AND  SHALL REMAIN IN THE SAME COLLECTIVE BARGAINING
UNITS AND SHALL RETAIN THEIR RESPECTIVE CIVIL  SERVICE  CLASSIFICATIONS,
STATUS  AND  RIGHTS  PURSUANT  TO  THEIR COLLECTIVE BARGAINING UNITS AND
COLLECTIVE BARGAINING AGREEMENTS.
  S 2. Subdivision 17 of section 100 of the economic development law  is
REPEALED.
  S 3. This act shall take effect immediately.

                                 PART O

  Section  1. Paragraph (a) of subdivision 1 of section 518 of the labor
law, as amended by chapter 589 of the laws of 1998, is amended  to  read
as follows:
  (a)  "Wages"  means  all remuneration paid, except that such term does
not include remuneration paid to an employee by an employer after  eight
thousand  five  hundred  dollars have been paid to such employee by such

S. 2607--D                         60                         A. 3007--D

employer with respect to employment during  any  calendar  year,  EXCEPT
THAT  SUCH  TERM DOES NOT INCLUDE REMUNERATION PAID TO AN EMPLOYEE BY AN
EMPLOYER WITH RESPECT TO EMPLOYMENT DURING ANY CALENDAR  YEAR  BEGINNING
WITH THE FIRST DAY OF
                                        THAT EXCEEDS
             JANUARY 2014                  $10,300
             JANUARY 2015                  $10,500
             JANUARY 2016                  $10,700
             JANUARY 2017                  $10,900
             JANUARY 2018                  $11,100
             JANUARY 2019                  $11,400
             JANUARY 2020                  $11,600
             JANUARY 2021                  $11,800
             JANUARY 2022                  $12,000
             JANUARY 2023                  $12,300
             JANUARY 2024                  $12,500
             JANUARY 2025                  $12,800
             JANUARY 2026                  $13,000
AND  EACH  YEAR  THEREAFTER  ON  THE  FIRST  DAY OF JANUARY THAT EXCEEDS
SIXTEEN PERCENT OF THE STATE'S AVERAGE ANNUAL WAGE AS DETERMINED BY  THE
COMMISSIONER  ON  AN ANNUAL BASIS PURSUANT TO SECTION FIVE HUNDRED TWEN-
TY-NINE OF THIS ARTICLE; PROVIDED, HOWEVER,  THAT  IN  CALCULATING  SUCH
MAXIMUM AMOUNT OF REMUNERATION, THE AMOUNT ARRIVED AT BY MULTIPLYING THE
STATE'S AVERAGE ANNUAL WAGE TIMES SIXTEEN PERCENT SHALL BE ROUNDED UP TO
THE  NEAREST HUNDRED DOLLARS. IN NO EVENT SHALL THE STATE'S ANNUAL AVER-
AGE WAGE BE REDUCED FROM THE AMOUNT DETERMINED IN THE PREVIOUS YEAR. The
term "employment" includes for the purposes of this subdivision services
constituting employment  under  any  unemployment  compensation  law  of
another state or the United States.
  S  2.  Subdivision 1, paragraph (a) of subdivision 2 and subdivision 6
of section 527 of the labor law, subdivision 1 as amended by chapter 413
of the laws of 2003, paragraph (a) of subdivision 2 as amended by  chap-
ter  5  of the laws of 2000 and subdivision 6 as added by chapter 589 of
the laws of 1998, are amended to read as follows:
  1. Basic condition. "Valid original claim"  is  a  claim  filed  by  a
claimant  who  meets  the following qualifications: (a) is able to work,
and available for work; (b) is not subject to  any  disqualification  or
suspension  under  this  article;  (c) his OR HER previously established
benefit year, if any, has expired; (d) has  been  paid  remuneration  by
employers  liable  for contributions or for payments in lieu of contrib-
utions under this article, other than employers from whom  the  claimant
lost  employment  [under  conditions  which  would be] AND FOR WHICH THE
COMMISSIONER  MAKES  A  DETERMINATION  disqualifying  THE  CLAIMANT  FOR
MISCONDUCT  pursuant  to  [subdivision]  SUBDIVISIONS  three  AND SIX of
section five hundred ninety-three of this article, for employment during
at least two calendar quarters of the base period, with remuneration  of
one and one-half times the high calendar quarter [earnings] REMUNERATION
within  the base period and with at least [one thousand six] TWO HUNDRED
TWENTY-ONE TIMES THE MINIMUM WAGE ESTABLISHED UNDER SUBDIVISION  ONE  OF
SECTION  SIX HUNDRED FIFTY-TWO OF THIS CHAPTER ROUNDED DOWN TO THE NEAR-
EST ONE hundred dollars of such remuneration being paid during the  high
calendar  quarter of such base period. For purposes of this section, the
[earnings] REMUNERATION in the high calendar quarter of the base  period
used  in  determining  a valid original claim shall not exceed an amount
equal to twenty-two times the maximum  benefit  rate  as  set  forth  in

S. 2607--D                         61                         A. 3007--D

subdivision  five of section five hundred ninety of this article for all
individuals.
  (a)  An  individual  who  is  unable to file a valid original claim in
accordance with subdivision one of this section, files a valid  original
claim  by  meeting  the qualifications enumerated in paragraphs (a), (b)
and (c) of subdivision one of this  section  and  by  having  been  paid
remuneration  by  employers  liable for contributions or for payments in
lieu of contributions under this article, other than employers from whom
the claimant lost employment [under conditions which are] AND FOR  WHICH
THE  COMMISSIONER  MAKES  A DETERMINATION disqualifying THE CLAIMANT FOR
MISCONDUCT pursuant to  [subdivision]  SUBDIVISIONS  three  AND  SIX  of
section five hundred ninety-three of this article, for employment during
at  least two calendar quarters of the base period, with remuneration of
one and one-half times the high calendar quarter [earnings] REMUNERATION
within the base period and with at least [one thousand six] TWO  HUNDRED
TWENTY-ONE  TIMES  THE MINIMUM WAGE ESTABLISHED UNDER SUBDIVISION ONE OF
SECTION SIX HUNDRED FIFTY-TWO OF THIS CHAPTER ROUNDED DOWN TO THE  NEAR-
EST  ONE hundred dollars of such remuneration being paid during the high
calendar quarter of such base period. For purposes of this section,  the
[earnings]  REMUNERATION in the high calendar quarter of the base period
used in determining a valid original claim shall not  exceed  an  amount
equal  to  twenty-two  times  the  maximum  benefit rate as set forth in
subdivision five of section five hundred ninety of this article for  all
individuals.
  6.  Work  requirement.  An  individual  who has filed a previous valid
original claim pursuant to this section must have worked  in  employment
and  been  paid  remuneration  for such work since the beginning of such
previous claim in an amount equal to  at  least  [five]  TEN  times  the
claimant's  weekly benefit rate in order to be able to file a subsequent
valid original claim.
  S 3. The labor law is amended by adding a new section 529 to  read  as
follows:
  S 529. AVERAGE ANNUAL WAGE; AVERAGE WEEKLY WAGE. 1. THE "AVERAGE ANNU-
AL  WAGE"  SHALL BE THE AVERAGE ANNUAL WAGE OF THE STATE OF NEW YORK FOR
THE PREVIOUS CALENDAR YEAR AS DETERMINED BY THE  COMMISSIONER  NO  LATER
THAN THE THIRTY-FIRST DAY OF MAY OF EACH YEAR.
  2.  THE  "AVERAGE WEEKLY WAGE" SHALL BE THE AVERAGE WEEKLY WAGE OF THE
STATE OF NEW YORK FOR THE PREVIOUS CALENDAR YEAR AS  DETERMINED  BY  THE
COMMISSIONER NO LATER THAN THE THIRTY-FIRST DAY OF MAY OF EACH YEAR.
  S  4. Subdivisions 1 and 3 of section 576 of the labor law, as amended
by chapter 49 of the laws of 1966, are amended to read as follows:
  1. Determinations of liability for contributions.  No determination of
liability for contributions pursuant to section five  hundred  sixty  of
this  article  shall be made more than three years after the last day of
the calendar year in which the wages on which such  liability  is  based
were paid, EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
  3.  Determinations  of LIABILITY FOR AND amount of contributions after
contest. If an  employer  contests  a  determination  of  liability  for
contributions,  a  determination  of  LIABILITY  FOR  AND  the amount of
contributions due FOR THE CONTESTED PERIOD AND SUBSEQUENT PERIODS may be
made at any time prior to the latter of the following:
  (a) three years after the last day of the calendar year in  which  the
wages on which such contributions are based were paid; or
  (b)  two  years  after the last day of the calendar year in which such
determination of liability for contributions  became  final  and  irrev-
ocable.

S. 2607--D                         62                         A. 3007--D

  S 5. Paragraph (a) of subdivision 1 of section 577 of the labor law is
amended by adding a new subparagraph 9 to read as follows:
  (9) MONIES PURSUANT TO SECTION FIVE HUNDRED NINETY-FOUR OF THIS TITLE.
  S  6.  Subparagraph 3 of paragraph (e) of subdivision 1 of section 581
of the labor law, as amended by chapter 589 of  the  laws  of  1998,  is
amended to read as follows:
  (3)  An employer's account shall not be charged, and the charges shall
instead  be made to the general account, for benefits paid to a claimant
after the expiration of  a  period  of  disqualification  from  benefits
following  a  final determination that the claimant lost employment with
the employer through misconduct or voluntary  separation  of  employment
without  good  cause  within the meaning of section five hundred ninety-
three of this article and the charges are attributable  to  remuneration
paid during  the claimant's base period of employment with such employer
prior  to  the  claimant's loss of employment with such employer through
misconduct or voluntary separation of  employment  without  good  cause,
PROVIDED,  HOWEVER,  THAT  AN  EMPLOYER SHALL NOT BE RELIEVED OF CHARGES
PURSUANT TO THIS SUBPARAGRAPH IF AN  EMPLOYER  OR  ITS  AGENT  FAILS  TO
SUBMIT  INFORMATION RESULTING IN AN OVERPAYMENT PURSUANT TO SECTION FIVE
HUNDRED NINETY-SEVEN OF THIS ARTICLE.
  S 7. Paragraph (a) of subdivision 2 of section 581 of the  labor  law,
as  added  by  chapter  413  of  the laws of 2003, is amended to read as
follows:
  (a) Each qualified  employer's  rate  of  contribution  shall  be  the
percentage  shown  in the column headed by the size of the fund index as
of the computation date and on the same line with his or her negative or
positive employer's account percentage, except that if within the  three
payroll  years  preceding  the  computation  date any part of a negative
balance has been transferred from any employer's account as a charge  to
the  general  account  pursuant  to  the  provisions of paragraph (e) of
subdivision one of this section such  employer's  rate  of  contribution
shall  be the maximum contribution rate as shown in the column headed by
the size of fund index;

                           Size of Fund Index
Employer's
Account
Percentage  Less  0%  0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
            Than but  but  but  but  but  but  but  but  but  but  or
            0%   less less less less less less less less less less more
                 than than than than than than than than than than
                 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Negative

21.0%
or more     8.90 8.70 8.50 8.30 8.10 7.30 6.90 6.50 6.20 6.10 6.00 5.90
20.5%
or more
but less
than 21.0%  8.80 8.60 8.40 8.20 8.00 7.20 6.80 6.40 6.10 6.00 5.90 5.80
20.0%
or more
but less
than 20.5%  8.70 8.50 8.30 8.10 7.90 7.10 6.70 6.30 6.00 5.90 5.80 5.70

S. 2607--D                         63                         A. 3007--D

19.5%
or more
but less
than 20.0%  8.60 8.40 8.20 8.00 7.80 7.00 6.60 6.20 5.90 5.80 5.70 5.60
19.0%
or more
but less
than 19.5%  8.50 8.30 8.10 7.90 7.70 6.90 6.50 6.10 5.80 5.70 5.60 5.50
18.5%
or more
but less
than 19.0%  8.40 8.20 8.00 7.80 7.60 6.80 6.40 6.00 5.70 5.60 5.50 5.40
18.0%
or more
but less
than 18.5%  8.30 8.10 7.90 7.70 7.50 6.70 6.30 5.90 5.60 5.50 5.40 5.30
17.5%
or more
but less
than 18.0%  8.20 8.00 7.80 7.60 7.40 6.60 6.20 5.80 5.50 5.40 5.30 5.20
17.0%
or more
but less
than 17.5%  8.10 7.90 7.70 7.50 7.30 6.50 6.10 5.70 5.40 5.30 5.20 5.10
16.5%
or more
but less
than 17.0%  8.00 7.80 7.60 7.40 7.20 6.40 6.00 5.60 5.30 5.20 5.10 5.00
16.0%
or more
but less
than 16.5%  7.90 7.70 7.50 7.30 7.10 6.30 5.90 5.50 5.20 5.10 5.00 4.90
15.5%
or more
but less
than 16.0%  7.80 7.60 7.40 7.20 7.00 6.20 5.80 5.40 5.10 5.00 4.90 4.80
15.0%
or more
but less
than 15.5%  7.70 7.50 7.30 7.10 6.90 6.10 5.70 5.30 5.00 4.90 4.80 4.70
14.5%
or more
but less
than 15.0%  7.60 7.40 7.20 7.00 6.80 6.00 5.60 5.20 4.90 4.80 4.70 4.60
14.0%
or more
but less
than 14.5%  7.50 7.30 7.10 6.90 6.70 5.90 5.50 5.10 4.80 4.70 4.60 4.50
13.5%
or more
but less
than 14.0%  7.40 7.20 7.00 6.80 6.60 5.80 5.40 5.00 4.70 4.60 4.50 4.40
13.0%
or more
but less
than 13.5%  7.30 7.10 6.90 6.70 6.50 5.70 5.30 4.90 4.60 4.50 4.40 4.30

S. 2607--D                         64                         A. 3007--D

12.5%
or more
but less
than 13.0%  7.20 7.00 6.80 6.60 6.40 5.60 5.20 4.80 4.50 4.40 4.30 4.20
12.0%
or more
but less
than 12.5%  7.10 6.90 6.70 6.50 6.30 5.50 5.10 4.70 4.40 4.30 4.20 4.10
11.5%
or more
but less
than 12.0%  7.00 6.80 6.60 6.40 6.20 5.40 5.00 4.60 4.30 4.20 4.10 4.00
11.0%
or more
but less
than 11.5%  6.90 6.70 6.50 6.30 6.10 5.30 4.90 4.50 4.20 4.10 4.00 3.90
10.5%
or more
but less
than 11.0%  6.80 6.60 6.40 6.20 6.00 5.20 4.80 4.40 4.10 4.00 3.90 3.80
10.0%
or more
but less
than 10.5%  6.70 6.50 6.30 6.10 5.90 5.10 4.70 4.30 4.00 3.90 3.80 3.70
9.5%
or more
but less
than 10.0%  6.60 6.40 6.20 6.00 5.80 5.00 4.60 4.20 3.90 3.80 3.70 3.60
9.0%
or more
but less
than 9.5%   6.50 6.30 6.10 5.90 5.70 4.90 4.50 4.10 3.80 3.70 3.60 3.50
8.5%
or more
but less
than 9.0%   6.40 6.20 6.00 5.80 5.60 4.80 4.40 4.00 3.70 3.60 3.50 3.40
8.0%
or more
but less
than 8.5%   6.30 6.10 5.90 5.70 5.50 4.70 4.30 3.90 3.60 3.50 3.40 3.30
7.0%
or more
but less
than 8.0%   6.20 6.00 5.80 5.60 5.40 4.60 4.20 3.80 3.50 3.40 3.30 3.20
6.0%
or more
but less
than 7.0%   6.10 5.90 5.70 5.50 5.30 4.50 4.10 3.70 3.40 3.30 3.20 3.10
5.0%
or more
but less
than 6.0%   6.00 5.80 5.60 5.40 5.20 4.40 4.00 3.60 3.30 3.20 3.10 3.00
4.0%
or more
but less
than 5.0%   5.90 5.70 5.50 5.30 5.10 4.30 3.90 3.50 3.20 3.10 3.00 2.90

S. 2607--D                         65                         A. 3007--D

3.0%
or more
but less
than 4.0%   5.60 5.40 5.20 5.00 4.80 4.20 3.80 3.40 3.10 3.00 2.90 2.80
2.0%
or more
but less
than 3.0%   5.50 5.30 5.10 4.90 4.70 4.10 3.70 3.30 3.00 2.90 2.80 2.70
1.0%
or more
but less
than 2.0%   5.40 5.20 5.00 4.80 4.60 4.00 3.60 3.20 2.90 2.80 2.70 2.60
Less
than 1.0%   5.20 5.00 4.80 4.60 4.40 3.80 3.40 3.00 2.70 2.60 2.50 2.40

Positive

Less
than 1.0%   4.10 3.90 3.70 3.50 3.30 2.90 2.50 2.10 1.90 1.80 1.70 1.60
1.0%
or more
but less
than 2.0%   4.00 3.80 3.60 3.40 3.20 2.80 2.40 2.00 1.80 1.70 1.60 1.50
2.0%
or more
but less
than 3.0%   3.90 3.70 3.50 3.30 3.10 2.70 2.30 1.90 1.70 1.60 1.50 1.40
3.0%
or more
but less
than 4.0%   3.80 3.60 3.40 3.20 3.00 2.60 2.20 1.80 1.60 1.50 1.40 1.30
4.0%
or more
but less
than 5.0%   3.70 3.50 3.30 3.10 2.90 2.50 2.10 1.70 1.50 1.40 1.30 1.20
5.0%
or more
but less
than 5.5%   3.60 3.40 3.20 3.00 2.80 2.40 2.00 1.60 1.40 1.30 1.20 1.10
5.5%
or more but
less than
5.75%       3.50 3.30 3.10 2.90 2.70 2.30 1.90 1.50 1.30 1.20 1.10 1.00
5.75%
or more
but less
than 6.0%   3.40 3.20 3.00 2.80 2.60 2.20 1.80 1.40 1.20 1.10 1.00 0.90
6.0%
or more but
less than
6.25%       3.30 3.10 2.90 2.70 2.50 2.10 1.70 1.30 1.10 1.00 0.90 0.80
6.25%
or more
but less
than 6.5%   3.20 3.00 2.80 2.60 2.40 2.00 1.60 1.20 1.00 0.90 0.80 0.70
6.5%

S. 2607--D                         66                         A. 3007--D

or more but
less than
6.75%       3.10 2.90 2.70 2.50 2.30 1.90 1.50 1.10 0.90 0.80 0.70 0.60
6.75%
or more
but less
than 7.0%   3.00 2.80 2.60 2.40 2.20 1.80 1.40 1.00 0.80 0.70 0.60 0.50
7.0%
or more but
less than
7.25%       2.90 2.70 2.50 2.30 2.10 1.70 1.30 0.90 0.70 0.60 0.50 0.40
7.25%
or more
but less
than 7.5%   2.80 2.60 2.40 2.20 2.00 1.60 1.20 0.80 0.60 0.50 0.40 0.30
7.5%
or more but
less than
7.75%       2.70 2.50 2.30 2.10 1.90 1.50 1.10 0.70 0.50 0.40 0.30 0.20
7.75%
or more
but less
than 8.0%   2.60 2.40 2.20 2.00 1.80 1.40 1.00 0.60 0.40 0.30 0.20 0.10
8.0%
or more but
less than
8.25%       2.50 2.30 2.10 1.90 1.70 1.30 0.90 0.50 0.30 0.20 0.10 0.00
8.25%
or more
but less
than 8.5%   2.40 2.20 2.00 1.80 1.60 1.20 0.80 0.40 0.20 0.10 0.00 0.00
8.5%
or more but
less than
8.75%       2.30 2.10 1.90 1.70 1.50 1.10 0.70 0.30 0.10 0.00 0.00 0.00
8.75%
or more
but less
than 9.0%   2.20 2.00 1.80 1.60 1.40 1.00 0.60 0.20 0.00 0.00 0.00 0.00
9.0%
or more but
less than
9.25%       2.10 1.90 1.70 1.50 1.30 0.90 0.50 0.10 0.00 0.00 0.00 0.00
9.25%
or more
but less
than 9.5%   2.00 1.80 1.60 1.40 1.20 0.80 0.40 0.00 0.00 0.00 0.00 0.00
9.5%
or more but
less than
9.75%       1.90 1.70 1.50 1.30 1.10 0.70 0.30 0.00 0.00 0.00 0.00 0.00
9.75%
or more but
less than
10.0%       1.80 1.60 1.40 1.20 1.00 0.60 0.20 0.00 0.00 0.00 0.00 0.00
10.0%

S. 2607--D                         67                         A. 3007--D

or more but
less than
10.25%      1.70 1.50 1.30 1.10 0.90 0.50 0.10 0.00 0.00 0.00 0.00 0.00
10.25%
or more but
less than
10.5%       1.60 1.40 1.20 1.00 0.80 0.40 0.00 0.00 0.00 0.00 0.00 0.00
10.5%
or more [but
less than
10.75%]     1.50 1.30 1.10 0.90 0.70 0.30 0.00 0.00 0.00 0.00 0.00 0.00
[10.75%
or more but
less than
11.0%       1.40 1.20 1.00 0.80 0.60 0.20 0.00 0.00 0.00 0.00 0.00 0.00
11.0%
or more but
less than
11.25%      1.30 1.10 0.90 0.70 0.50 0.10 0.00 0.00 0.00 0.00 0.00 0.00
11.25%
or more but
less than
11.5%       1.20 1.00 0.80 0.60 0.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11.5%
or more but
less than
11.75%      1.10 0.90 0.70 0.50 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11.75%
or more but
less than
12.0%       1.00 0.80 0.60 0.40 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12.0% or
more        0.90 0.70 0.50 0.30 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00]
  S  8.  Subdivision  5  of  section 590 of the labor law, as amended by
chapter 413 of the laws of 2003, is amended to read as follows:
  5. Benefit rate. (A) A claimant's weekly benefit amount shall  be  one
twenty-sixth  of the remuneration paid during the highest calendar quar-
ter of the  base  period  by  employers,  liable  for  contributions  or
payments  in  lieu  of  contributions  under  this article, PROVIDED THE
CLAIMANT HAS REMUNERATION PAID IN ALL FOUR CALENDAR QUARTERS DURING  HIS
OR  HER  BASE  PERIOD OR ALTERNATE BASE PERIOD. However, for [claimants]
ANY CLAIMANT WHO HAS REMUNERATION PAID IN  ALL  FOUR  CALENDAR  QUARTERS
DURING  HIS  OR  HER BASE PERIOD OR ALTERNATE BASE PERIOD AND whose high
calendar quarter remuneration during the base period is  three  thousand
five  hundred  seventy-five dollars or less, the benefit amount shall be
one twenty-fifth of the remuneration paid during  the  highest  calendar
quarter  of  the  base  period  by employers liable for contributions or
payments in lieu of contributions under this article. A CLAIMANT'S WEEK-
LY BENEFIT SHALL BE ONE TWENTY-SIXTH OF THE AVERAGE REMUNERATION PAID IN
THE TWO HIGHEST QUARTERS PAID DURING THE BASE PERIOD OR  ALTERNATE  BASE
PERIOD  BY  EMPLOYERS  LIABLE  FOR  CONTRIBUTIONS OR PAYMENTS IN LIEU OF
CONTRIBUTIONS UNDER THIS ARTICLE WHEN THE CLAIMANT HAS REMUNERATION PAID
IN TWO OR THREE CALENDAR QUARTERS  PROVIDED  HOWEVER,  THAT  A  CLAIMANT
WHOSE HIGH CALENDAR QUARTER IS FOUR THOUSAND DOLLARS OR LESS BUT GREATER
THAN THREE THOUSAND FIVE HUNDRED SEVENTY-FIVE DOLLARS SHALL HAVE A WEEK-
LY  BENEFIT  AMOUNT  OF  ONE TWENTY-SIXTH OF SUCH HIGH CALENDAR QUARTER.

S. 2607--D                         68                         A. 3007--D

HOWEVER, FOR ANY CLAIMANT WHO HAS REMUNERATION  PAID  IN  TWO  OR  THREE
CALENDAR QUARTERS DURING HIS OR HER BASE PERIOD OR ALTERNATE BASE PERIOD
AND  WHOSE  HIGH CALENDAR QUARTER REMUNERATION DURING THE BASE PERIOD IS
THREE  THOUSAND  FIVE  HUNDRED SEVENTY-FIVE DOLLARS OR LESS, THE BENEFIT
AMOUNT SHALL BE ONE TWENTY-FIFTH OF THE  REMUNERATION  PAID  DURING  THE
HIGHEST  CALENDAR  QUARTER  OF  THE  BASE PERIOD BY EMPLOYERS LIABLE FOR
CONTRIBUTIONS OR PAYMENTS IN LIEU OF CONTRIBUTIONS UNDER  THIS  ARTICLE.
Any  claimant  whose  high calendar quarter remuneration during the base
period is more than three thousand  five  hundred  seventy-five  dollars
shall not have a weekly benefit amount less than one hundred forty-three
dollars.  The weekly benefit amount, so computed, that is not a multiple
of one dollar shall be lowered to the next multiple of  one  dollar.  On
the  first Monday of September, nineteen hundred ninety-eight the weekly
benefit amount shall not exceed three hundred sixty-five dollars nor  be
less  than forty dollars, until the first Monday of September, two thou-
sand, at which time the maximum benefit payable pursuant to this  subdi-
vision shall equal one-half of the state average weekly wage for covered
employment  as  calculated  by the department no sooner than July first,
two thousand and no later than August first, two thousand, rounded  down
to  the  lowest  dollar.  ON  AND AFTER THE FIRST MONDAY OF OCTOBER, TWO
THOUSAND FOURTEEN, THE WEEKLY BENEFIT SHALL NOT BE LESS THAN ONE HUNDRED
DOLLARS, NOR SHALL IT EXCEED FOUR HUNDRED TWENTY DOLLARS UNTIL THE FIRST
MONDAY OF OCTOBER, TWO THOUSAND FIFTEEN WHEN THE MAXIMUM BENEFIT  AMOUNT
SHALL  BE  FOUR  HUNDRED  TWENTY-FIVE DOLLARS, UNTIL THE FIRST MONDAY OF
OCTOBER, TWO THOUSAND SIXTEEN WHEN THE MAXIMUM BENEFIT AMOUNT  SHALL  BE
FOUR  HUNDRED  THIRTY  DOLLARS,  UNTIL  THE FIRST MONDAY OF OCTOBER, TWO
THOUSAND SEVENTEEN WHEN THE MAXIMUM BENEFIT AMOUNT SHALL BE FOUR HUNDRED
THIRTY-FIVE DOLLARS, UNTIL THE FIRST MONDAY  OF  OCTOBER,  TWO  THOUSAND
EIGHTEEN  WHEN  THE  MAXIMUM  BENEFIT AMOUNT SHALL BE FOUR HUNDRED FIFTY
DOLLARS, UNTIL THE FIRST MONDAY OF OCTOBER, TWO THOUSAND  NINETEEN  WHEN
THE  MAXIMUM  BENEFIT  AMOUNT SHALL BE THIRTY-SIX PERCENT OF THE AVERAGE
WEEKLY WAGE UNTIL THE FIRST MONDAY OF OCTOBER, TWO THOUSAND TWENTY  WHEN
THE  MAXIMUM BENEFIT AMOUNT SHALL BE THIRTY-EIGHT PERCENT OF THE AVERAGE
WEEKLY WAGE, UNTIL THE FIRST MONDAY OF OCTOBER TWO  THOUSAND  TWENTY-ONE
WHEN  THE  MAXIMUM  BENEFIT AMOUNT SHALL BE FORTY PERCENT OF THE AVERAGE
WEEKLY WAGE, UNTIL THE FIRST MONDAY OF OCTOBER, TWO THOUSAND  TWENTY-TWO
WHEN  THE MAXIMUM BENEFIT AMOUNT SHALL BE FORTY-TWO PERCENT OF THE AVER-
AGE WEEKLY WAGE, UNTIL THE FIRST MONDAY OF OCTOBER, TWO  THOUSAND  TWEN-
TY-THREE  WHEN THE MAXIMUM BENEFIT AMOUNT SHALL BE FORTY-FOUR PERCENT OF
THE AVERAGE WEEKLY WAGE, UNTIL THE FIRST MONDAY OF OCTOBER, TWO THOUSAND
TWENTY-FOUR WHEN THE MAXIMUM BENEFIT AMOUNT SHALL BE  FORTY-SIX  PERCENT
OF THE AVERAGE WEEKLY WAGE, UNTIL THE FIRST MONDAY OF OCTOBER, TWO THOU-
SAND  TWENTY-FIVE  WHEN  THE MAXIMUM BENEFIT AMOUNT SHALL BE FORTY-EIGHT
PERCENT OF THE AVERAGE WEEKLY WAGE, UNTIL THE FIRST MONDAY  OF  OCTOBER,
TWO  THOUSAND TWENTY-SIX AND EACH YEAR THEREAFTER ON THE FIRST MONDAY OF
OCTOBER WHEN THE MAXIMUM BENEFIT AMOUNT SHALL BE FIFTY  PERCENT  OF  THE
AVERAGE  WEEKLY WAGE PROVIDED, HOWEVER, THAT IN NO EVENT SHALL THE MAXI-
MUM BENEFIT AMOUNT BE REDUCED FROM THE PREVIOUS YEAR.
  (B) NOTWITHSTANDING THE FOREGOING, THE MAXIMUM  BENEFIT  AMOUNT  SHALL
NOT  BE INCREASED IN ACCORDANCE WITH THE SCHEDULE SET FORTH IN PARAGRAPH
(A) OF THIS SUBDIVISION IN ANY YEAR IN WHICH THE COMMISSIONER DETERMINES
THAT THE STATE HAS HAD A DECREASE IN PRIVATE SECTOR JOBS IN  EACH  MONTH
OF  THE  FIRST  TWO  CALENDAR  QUARTERS OF THE YEAR IN WHICH THE MAXIMUM
BENEFIT AMOUNT INCREASE IS  SCHEDULED  TO  OCCUR.  IF  THE  COMMISSIONER
DETERMINES  THAT THE STATE HAS NOT HAD A DECREASE IN PRIVATE SECTOR JOBS
IN EACH MONTH IN THE FIRST TWO CALENDAR QUARTERS IN YEARS SUBSEQUENT  TO

S. 2607--D                         69                         A. 3007--D

SUCH  SUSPENSION  OF AN INCREASE IN THE MAXIMUM BENEFIT AMOUNT, THEN THE
MAXIMUM BENEFIT AMOUNT SHALL INCREASE TO THE AMOUNT FOR THE YEAR  PREVI-
OUSLY  SCHEDULED  TO  BE  ESTABLISHED  PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION  HAD  THE INCREASE NOT BEEN SUSPENDED AND INCREASED ANNUALLY
THEREAFTER IN ACCORDANCE WITH THE SCHEDULE SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION. IN NO CASE SHALL SUCH SUSPENSION RESULT IN A REDUCTION
OF THE MAXIMUM BENEFIT AMOUNT TO LESS THAN THE AMOUNT  PROVIDED  IN  THE
MOST RECENT YEAR.
  S  9.  Paragraph (b) of subdivision 5 of section 590 of the labor law,
as added by section eight of this act, is REPEALED and a  new  paragraph
(b) is added to read as follows:
  (B)  NOTWITHSTANDING  THE  FOREGOING, THE MAXIMUM BENEFIT AMOUNT SHALL
NOT BE INCREASED IN ACCORDANCE WITH THE SCHEDULE SET FORTH IN  PARAGRAPH
(A)  OF THIS SUBDIVISION IN ANY YEAR IN WHICH THE BALANCE OF THE FUND ON
THE THIRTY-FIRST DAY OF MAY OF THE SAME YEAR IS LESS THAN AN  AMOUNT  OF
THE  FUNDS PROJECTED TO BE NEEDED TO PAY FOR THE INCREASE IN BENEFITS AS
DETERMINED BY THE COMMISSIONER. IF FUND REVENUES ARE DETERMINED  BY  THE
COMMISSIONER  TO  BE  SUFFICIENT  TO PAY FOR THE INCREASE IN BENEFITS IN
YEARS SUBSEQUENT TO SUCH SUSPENSION OF AN INCREASE IN THE MAXIMUM  BENE-
FIT AMOUNT, THEN THE MAXIMUM BENEFIT AMOUNT SHALL INCREASE TO THE AMOUNT
FOR  THE  YEAR  PREVIOUSLY SCHEDULED TO BE ESTABLISHED PURSUANT TO PARA-
GRAPH (A) OF THIS SUBDIVISION HAD THE INCREASE NOT  BEEN  SUSPENDED  AND
INCREASED  ANNUALLY THEREAFTER IN ACCORDANCE WITH THE SCHEDULE SET FORTH
IN PARAGRAPH (A) OF THIS SUBDIVISION. IN NO CASE SHALL  SUCH  SUSPENSION
RESULT  IN  A  REDUCTION  OF THE MAXIMUM BENEFIT AMOUNT TO LESS THAN THE
AMOUNT PROVIDED IN THE MOST RECENT YEAR.
  S 10. Paragraph (b) of subdivision 5 of section 590 of the labor  law,
as added by section nine of this act is REPEALED and a new paragraph (b)
is added to read as follows:
  (B)  NOTWITHSTANDING  THE  FOREGOING, THE MAXIMUM BENEFIT AMOUNT SHALL
NOT BE INCREASED IN ACCORDANCE WITH THE SCHEDULE SET FORTH IN  PARAGRAPH
(A)  OF THIS SUBDIVISION IN ANY YEAR IN WHICH THE BALANCE OF THE FUND IS
DETERMINED BY THE COMMISSIONER TO NOT HAVE REACHED  OR  EXCEEDED  THIRTY
PERCENT OF THE AVERAGE HIGH COST MULTIPLE, AS DEFINED IN 20 CFR PART 606
AS  THE STANDARD FOR RECEIPT OF INTEREST-FREE FEDERAL LOANS, ON AT LEAST
ONE DAY BETWEEN APRIL FIRST AND JUNE THIRTIETH OF THE SAME CALENDAR YEAR
AS THE INCREASE SHALL TAKE EFFECT. IF, FOLLOWING SUCH SUSPENSION  OF  AN
INCREASE  IN  THE  MAXIMUM BENEFIT AMOUNT, THE COMMISSIONER SHALL DETER-
MINE, ON AT LEAST ONE DAY BETWEEN APRIL FIRST AND  JUNE  THIRTIETH  THAT
THE BALANCE OF THE FUND IS GREATER THAN SUCH THIRTY PERCENT AVERAGE HIGH
COST  MULTIPLE,  THEN  THE  MAXIMUM BENEFIT AMOUNT SHALL INCREASE TO THE
PERCENTAGE FOR THE YEAR PREVIOUSLY SCHEDULED TO BE ESTABLISHED  PURSUANT
TO PARAGRAPH (A) OF THIS SUBDIVISION HAD THE INCREASE NOT BEEN SUSPENDED
AND  INCREASED  ANNUALLY  THEREAFTER IN ACCORDANCE WITH THE SCHEDULE SET
FORTH IN PARAGRAPH (A) OF  THIS  SUBDIVISION.  IN  NO  CASE  SHALL  SUCH
SUSPENSION  RESULT  IN A REDUCTION OF THE MAXIMUM BENEFIT AMOUNT TO LESS
THAN THE AMOUNT PROVIDED IN THE MOST RECENT YEAR.
  S 11. Subdivision 9 of section 590 of the  labor  law  is  amended  by
adding a new paragraph (d) to read as follows:
  (D) AN ALIEN WHO IS NOT ELIGIBLE UNDER 8 USC 1621(A) SHALL BE ELIGIBLE
FOR  BENEFITS,  PROVIDED  SUCH  ALIEN IS ELIGIBLE FOR BENEFITS UNDER THE
PROVISIONS OF THIS ARTICLE AND SECTION 3304  (A)  (14)  OF  THE  FEDERAL
UNEMPLOYMENT TAX ACT.
  S  12.  Subdivision  2  of section 591 of the labor law, as amended by
chapter 720 of the laws of 1953, is amended to read as follows:

S. 2607--D                         70                         A. 3007--D

  2. Availability [and], capability, AND WORK SEARCH.  No benefits shall
be payable to any claimant who is not capable of  work  or  who  is  not
ready, willing and able to work in his OR HER usual employment or in any
other  for  which he OR SHE is reasonably fitted by training and experi-
ence  AND  WHO  IS  NOT ACTIVELY SEEKING WORK.   IN ORDER TO BE ACTIVELY
SEEKING WORK A CLAIMANT MUST BE  ENGAGED  IN  SYSTEMATIC  AND  SUSTAINED
EFFORTS  TO  FIND  WORK.   THE COMMISSIONER SHALL PROMULGATE REGULATIONS
DEFINING SYSTEMATIC AND SUSTAINED EFFORTS TO FIND WORK AND SETTING STAN-
DARDS FOR THE PROOF OF WORK SEARCH EFFORTS.
  S 13. Section 591 of the labor law is amended by adding a new subdivi-
sion 6 to read as follows:
  6. DISMISSAL PAY. (A) NO BENEFITS SHALL BE PAYABLE TO A  CLAIMANT  FOR
ANY  WEEK  DURING  A  DISMISSAL  PERIOD  FOR  WHICH  A CLAIMANT RECEIVES
DISMISSAL PAY, NOR SHALL ANY DAY WITHIN SUCH WEEK BE CONSIDERED A DAY OF
TOTAL UNEMPLOYMENT UNDER SECTION FIVE HUNDRED TWENTY-TWO OF  THIS  ARTI-
CLE,  IF  SUCH  WEEKLY  DISMISSAL PAY EXCEEDS THE MAXIMUM WEEKLY BENEFIT
RATE.
  (B) THE TERM "DISMISSAL PAY", AS USED IN THIS SUBDIVISION,  MEANS  ONE
OR  MORE  PAYMENTS  MADE BY AN EMPLOYER TO AN EMPLOYEE DUE TO HIS OR HER
SEPARATION FROM SERVICE  OF  THE  EMPLOYER  REGARDLESS  OF  WHETHER  THE
EMPLOYER IS LEGALLY BOUND BY CONTRACT, STATUTE OR OTHERWISE TO MAKE SUCH
PAYMENTS.  THE  TERM  DOES NOT INCLUDE PAYMENTS FOR PENSION, RETIREMENT,
ACCRUED LEAVE, AND HEALTH INSURANCE OR PAYMENTS FOR  SUPPLEMENTAL  UNEM-
PLOYMENT BENEFITS.
  (C)  THE  TERM  "DISMISSAL PERIOD", AS USED IN THIS SUBDIVISION, MEANS
THE TIME DESIGNATED FOR WEEKS  OF  DISMISSAL  PAY  ATTRIBUTABLE  TO  THE
CLAIMANT'S  WEEKLY EARNINGS IN ACCORDANCE WITH THE COLLECTIVE BARGAINING
AGREEMENT, EMPLOYMENT CONTRACT, EMPLOYER'S DISMISSAL  POLICY,  DISMISSAL
AGREEMENT  WITH THE EMPLOYER OR OTHER SUCH AGREEMENT.  IF NO SUCH AGREE-
MENT, CONTRACT  OR  POLICY  DESIGNATES  A  DISMISSAL  PERIOD,  THEN  THE
DISMISSAL  PERIOD  SHALL BE THE TIME DESIGNATED IN WRITING IN ADVANCE BY
THE EMPLOYER TO BE CONSIDERED THE DISMISSAL PERIOD. IF NO TIME PERIOD IS
DESIGNATED, THE DISMISSAL PERIOD SHALL COMMENCE ON  THE  DAY  AFTER  THE
CLAIMANT'S LAST DAY OF EMPLOYMENT. IF THE DISMISSAL PAYMENT IS IN A LUMP
SUM  AMOUNT  OR  FOR  AN  INDEFINITE PERIOD, DISMISSAL PAYMENTS SHALL BE
ALLOCATED ON A WEEKLY BASIS FROM THE DAY AFTER THE CLAIMANT'S  LAST  DAY
OF  EMPLOYMENT  AND  THE CLAIMANT SHALL NOT BE ELIGIBLE FOR BENEFITS FOR
ANY WEEK FOR WHICH IT IS DETERMINED THAT THE CLAIMANT RECEIVES DISMISSAL
PAY. THE AMOUNT OF DISMISSAL PAY SHALL BE ALLOCATED BASED ON THE  CLAIM-
ANT'S  ACTUAL WEEKLY REMUNERATION PAID BY THE EMPLOYER DURING HIS OR HER
EMPLOYMENT OR, IF SUCH AMOUNT CANNOT BE DETERMINED, THE  AMOUNT  OF  THE
CLAIMANT'S AVERAGE WEEKLY WAGE FOR THE HIGHEST CALENDAR QUARTER.
  (D)  NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF THIS SUBDIVISION
SHALL NOT APPLY DURING  ANY  WEEKS  IN  WHICH  THE  INITIAL  PAYMENT  OF
DISMISSAL  PAY  IS  MADE  MORE THAN THIRTY DAYS FROM THE LAST DAY OF THE
CLAIMANT'S EMPLOYMENT.
  S 14. Subparagraph (i) of paragraph (b) of subdivision  2  of  section
591-a  of the labor law, as added by chapter 413 of the laws of 2003, is
amended to read as follows:
  (i) requirements relating to total unemployment, as defined in section
five hundred twenty-two of  this  article,  availability  for  work  AND
SEARCH FOR WORK, as set forth in subdivision two of section five hundred
ninety-one  of  this  title  and refusal to accept work, as set forth in
subdivision two of section five hundred ninety-three of this title,  are
not applicable to such individuals;

S. 2607--D                         71                         A. 3007--D

  S  15. Paragraph (a) of subdivision 1, the opening paragraph of subdi-
vision 2 and subdivision 3 of section 593 of the  labor  law,  paragraph
(a)  of  subdivision 1 as amended by chapter 35 of the laws of 2009, the
opening paragraph of subdivision 2 as amended by chapter 5 of  the  laws
of  2000,  and  subdivision  3  as amended by chapter 589 of the laws of
1998, are amended and a new subdivision 6 is added to read as follows:
  (a) No days of total unemployment shall be deemed  to  occur  after  a
claimant's voluntary separation without good cause from employment until
he  or she has subsequently worked in employment and earned remuneration
at least equal to [five] TEN times his or her weekly  benefit  rate.  In
addition  to  other  circumstances  that may be found to constitute good
cause, including a compelling family reason as set  forth  in  paragraph
(b)  of this subdivision, voluntary separation from employment shall not
in itself disqualify a claimant if circumstances have developed  in  the
course  of  such  employment  that  would have justified the claimant in
refusing such employment in the first instance under the terms of subdi-
vision two of this section or if the claimant,  pursuant  to  an  option
provided  under  a  collective  bargaining agreement or written employer
plan which permits waiver of his OR HER right to retain  the  employment
when there is a temporary layoff because of lack of work, has elected to
be separated for a temporary period and the employer has consented ther-
eto.
  No  days of total unemployment shall be deemed to occur beginning with
the day on which a claimant, without good cause, refuses  to  accept  an
offer of employment for which he OR SHE is reasonably fitted by training
and  experience, including employment not subject to this article, until
he OR SHE has subsequently worked in employment and earned  remuneration
at  least  equal  to  [five]  TEN  times his or her weekly benefit rate.
Except that claimants who are not subject to a recall date or who do not
obtain employment through a union hiring hall and who  are  still  unem-
ployed  after  receiving  [thirteen]  TEN  weeks  of  benefits  shall be
required to accept any employment  proffered  that  such  claimants  are
capable  of  performing, provided that such employment would result in a
wage not less than eighty percent of such claimant's high calendar quar-
ter wages received in the base period and not  substantially  less  than
the  prevailing wage for similar work in the locality as provided for in
paragraph (d) of this subdivision. No refusal to accept employment shall
be deemed without good cause nor shall it disqualify any claimant other-
wise eligible to receive benefits if:
  3. Misconduct. No days of total unemployment shall be deemed to  occur
after  a  claimant lost employment through misconduct in connection with
his or her employment until he or she has subsequently worked in employ-
ment and earned remuneration at least equal to [five] TEN times  his  or
her weekly benefit rate.
  6.  DETERMINATIONS AND HEARINGS. THE COMMISSIONER SHALL ISSUE A DETER-
MINATION FOR ANY PROTEST THAT IS FILED BY ANY BASE PERIOD EMPLOYER WITH-
IN THE TIME SPECIFIED IN THE NOTIFICATION OF POTENTIAL CHARGES BASED  ON
VOLUNTARY SEPARATIONS OR MISCONDUCT. AN EMPLOYER OR CLAIMANT MAY REQUEST
A  HEARING  OF SUCH DETERMINATION PURSUANT TO SECTION SIX HUNDRED TWENTY
OF THIS ARTICLE.
  S 16. Section 594 of the labor law, as amended by chapter 728  of  the
laws of 1952, and the opening paragraph as amended by chapter 139 of the
laws of 1968, are amended to read as follows:
  S  594.  Reduction  AND  RECOVERY of benefits AND PENALTIES for WILFUL
false statement. (1) A claimant who has wilfully made a false  statement
or  representation  to  obtain  any benefit under the provisions of this

S. 2607--D                         72                         A. 3007--D

article shall forfeit benefits for at least the first four but not  more
than the first eighty effective days following discovery of such offense
for  which he OR SHE otherwise would have been entitled to receive bene-
fits.  Such  penalty  shall  apply  only  once with respect to each such
offense.
  (2) For the purpose of subdivision four of section five hundred ninety
of this article, the claimant shall be deemed to have received  benefits
for such forfeited effective days.
  (3)  The  penalty  provided in this section shall not be confined to a
single benefit year but shall no longer apply in whole or in part  after
the  expiration  of  two  years  from the date [on which the offense was
committed] OF THE FINAL DETERMINATION. SUCH  TWO-YEAR  PERIOD  SHALL  BE
TOLLED DURING THE TIME PERIOD A CLAIMANT HAS AN APPEAL PENDING.
  (4)  A claimant shall refund all moneys received because of such false
statement or representation [made by him] AND PAY A CIVIL PENALTY IN  AN
AMOUNT EQUAL TO THE GREATER OF ONE HUNDRED DOLLARS OR FIFTEEN PERCENT OF
THE  TOTAL  OVERPAID  BENEFITS DETERMINED PURSUANT TO THIS SECTION.  THE
PENALTIES COLLECTED HEREUNDER SHALL BE DEPOSITED IN THE FUND. THE PENAL-
TIES ASSESSED UNDER THIS SUBDIVISION SHALL APPLY AND BE ASSESSED FOR ANY
BENEFITS PAID  UNDER  FEDERAL  UNEMPLOYMENT  AND  EXTENDED  UNEMPLOYMENT
PROGRAMS  ADMINISTERED  BY THE DEPARTMENT IN THE SAME MANNER AS PROVIDED
IN THIS ARTICLE. THE PENALTIES IN THIS SECTION SHALL BE IN  ADDITION  TO
ANY  PENALTIES IMPOSED UNDER THIS CHAPTER OR ANY STATE OR FEDERAL CRIMI-
NAL STATUTE. NO PENALTIES OR INTEREST ASSESSED PURSUANT TO THIS  SECTION
MAY BE DEDUCTED OR WITHHELD FROM BENEFITS.
  (5)  (A)  UPON A DETERMINATION BASED UPON A WILLFUL FALSE STATEMENT OR
REPRESENTATION BECOMING FINAL THROUGH EXHAUSTION  OF  APPEAL  RIGHTS  OR
FAILURE  TO  EXHAUST  HEARING  RIGHTS,  THE COMMISSIONER MAY RECOVER THE
AMOUNT FOUND TO BE DUE BY COMMENCING A CIVIL ACTION, OR BY  FILING  WITH
THE  COUNTY  CLERK  OF  THE  COUNTY WHERE THE CLAIMANT RESIDES THE FINAL
DETERMINATION OF THE COMMISSIONER OR THE FINAL DECISION BY  AN  ADMINIS-
TRATIVE  LAW  JUDGE,  THE APPEAL BOARD, OR A COURT CONTAINING THE AMOUNT
FOUND TO BE DUE INCLUDING INTEREST AND CIVIL PENALTY.  THE  COMMISSIONER
MAY ONLY MAKE SUCH A FILING WITH THE COUNTY CLERK WHEN:
  (I)  THE CLAIMANT HAS RESPONDED TO REQUESTS FOR INFORMATION PRIOR TO A
DETERMINATION AND SUCH REQUESTS FOR INFORMATION NOTIFIED THE CLAIMANT OF
HIS OR HER RIGHTS TO A FAIR HEARING AS  WELL  AS  THE  POTENTIAL  CONSE-
QUENCES  OF  AN INVESTIGATION AND FINAL DETERMINATION UNDER THIS SECTION
INCLUDING THE NOTICE REQUIRED BY SUBPARAGRAPH (III) OF PARAGRAPH (B)  OF
THIS  SUBDIVISION. ADDITIONALLY IF THE CLAIMANT REQUESTED A FAIR HEARING
OR APPEAL SUBSEQUENT TO A DETERMINATION, THAT THE CLAIMANT  WAS  PRESENT
EITHER  IN PERSON OR THROUGH ELECTRONIC MEANS AT SUCH HEARING, OR SUBSE-
QUENT APPEAL FROM WHICH A FINAL DETERMINATION WAS RENDERED;
  (II) THE COMMISSIONER HAS MADE EFFORTS TO COLLECT ON SUCH FINAL DETER-
MINATION; AND
  (III) THE COMMISSIONER HAS SENT A NOTICE, IN ACCORDANCE WITH PARAGRAPH
(B) OF THIS SUBDIVISION, OF INTENT TO DOCKET SUCH FINAL DETERMINATION BY
FIRST CLASS OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TEN DAYS  PRIOR
TO THE DOCKETING OF SUCH DETERMINATION.
  (B) THE NOTICE REQUIRED IN SUBPARAGRAPH (III) OF PARAGRAPH (A) OF THIS
SUBDIVISION SHALL INCLUDE THE FOLLOWING:
  (I)  THAT  THE  COMMISSIONER  INTENDS  TO DOCKET A FINAL DETERMINATION
AGAINST SUCH CLAIMANT AS A JUDGMENT;
  (II) THE TOTAL AMOUNT TO BE DOCKETED; AND
  (III) CONSPICUOUS LANGUAGE THAT READS AS  FOLLOWS:  "ONCE  ENTERED,  A
JUDGMENT  IS GOOD AND CAN BE USED AGAINST YOU FOR TWENTY YEARS, AND YOUR

S. 2607--D                         73                         A. 3007--D

MONEY, INCLUDING A PORTION OF YOUR PAYCHECK AND/OR BANK ACCOUNT, MAY  BE
TAKEN.  ALSO, A JUDGMENT WILL HURT YOUR CREDIT SCORE AND CAN AFFECT YOUR
ABILITY TO RENT A HOME, FIND A JOB, OR TAKE OUT A LOAN."
  S 17. Section 596 of the labor law is amended by adding a new subdivi-
sion 7 to read as follows:
  7.  NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED NINETY-FIVE
OF THIS TITLE, THE COMMISSIONER SHALL DEDUCT AND WITHHOLD  ANY  OVERPAY-
MENTS ESTABLISHED UNDER THIS ARTICLE OR UNDER ANY STATE OR FEDERAL UNEM-
PLOYMENT COMPENSATION PROGRAM FROM BENEFITS PAYABLE TO AN INDIVIDUAL. NO
PENALTIES  OR INTEREST ASSESSED PURSUANT TO SECTION FIVE HUNDRED NINETY-
FOUR OF THIS TITLE MAY BE DEDUCTED OR WITHHELD FROM BENEFITS.
  S 18. Subdivision 2 of section 597 of the  labor  law  is  amended  by
adding a new paragraph (d) to read as follows:
  (D)  NOTWITHSTANDING  ANY PROVISIONS OF THIS ARTICLE, UNLESS A COMMIS-
SIONER'S ERROR IS SHOWN OR THE FAILURE IS THE DIRECT RESULT OF A  DISAS-
TER  EMERGENCY  DECLARED  BY  THE  GOVERNOR  OR PRESIDENT, AN EMPLOYER'S
ACCOUNT SHALL NOT BE RELIEVED OF CHARGES RESULTING IN AN OVERPAYMENT  OF
BENEFITS  WHEN THE COMMISSIONER DETERMINES THAT THE OVERPAYMENT WAS MADE
BECAUSE THE EMPLOYER OR THE AGENT OF THE EMPLOYER FAILED  TO  TIMELY  OR
ADEQUATELY  RESPOND TO A REQUEST FOR INFORMATION IN THE NOTICE OF POTEN-
TIAL CHARGES OR OTHER SUCH NOTICE REQUESTING INFORMATION IN RELATION  TO
A  CLAIM  UNDER  THIS  ARTICLE, PROVIDED, HOWEVER, THAT THE COMMISSIONER
SHALL RELIEVE THE EMPLOYER OF CHARGES THE FIRST TIME THAT  THE  EMPLOYER
FAILS  TO  PROVIDE  TIMELY  OR  ADEQUATE  INFORMATION,  IF  THE EMPLOYER
PROVIDES GOOD CAUSE FOR SUCH FAILURE AS DETERMINED BY THE COMMISSIONER.
  "TIMELY" SHALL MEAN A RESPONSE IS PROVIDED IN THE TIME  PERIOD  SPECI-
FIED IN THE NOTICE AS PRESCRIBED BY THE COMMISSIONER.
  THE  TERM  "ADEQUATELY"  SHALL  MEAN  THAT  THE  EMPLOYER OR ITS AGENT
SUBMITTED INFORMATION SUFFICIENT TO RENDER A CORRECT DETERMINATION.
  THIS PROHIBITION FOR RELIEF OF CHARGES SHALL APPLY  TO  ALL  EMPLOYERS
UNDER  THIS  ARTICLE  INCLUDING  EMPLOYERS  ELECTING  PAYMENT IN LIEU OF
CONTRIBUTIONS.
  S 19. Section 600 of the labor law, as added by  chapter  793  of  the
laws  of  1963,  subdivision  6 as amended by chapter 391 of the laws of
2005, subdivision 7 as added by chapter 362 of the laws of  1980,  para-
graph  (a)  of  subdivision  7  as amended by chapter 176 of the laws of
2004, paragraph (b) of subdivision 7 as amended by chapter 5 of the laws
of 2000, and paragraph (c) of subdivision 7 as relettered by chapter 895
of the laws of 1980, is amended to read as follows:
  S 600. Effect of retirement payments. 1. Reduction  of  benefit  rate.
[If a claimant retires or is retired from employment by an employer and,
due  to  such  retirement,  is receiving a pension or retirement payment
under a plan financed in whole or in part by such employer, such  claim-
ant's  benefit  rate  for four effective days otherwise applicable under
subdivision seven of section five hundred ninety  shall  be  reduced  as
hereinafter provided.
  2.  Application. The reduction shall apply only to benefits which when
paid will be chargeable to the account of the employer who provided  the
pension or retirement benefit.
  3.  Amount  of reduction. If the pension or retirement payment is made
under a plan to which the employer is the sole contributor,  the  claim-
ant's  benefit  rate  shall  be  reduced  by the largest number of whole
dollars which is not more than the prorated weekly amount of his pension
or retirement payment under such plan.  If  the  pension  or  retirement
payment  is  made  under  a  plan  to which the employer is not the sole
contributor, the claimant's benefit rate shall be reduced by the largest

S. 2607--D                         74                         A. 3007--D

number of whole dollars which is not more than one-half of the  prorated
weekly amount of his pension or retirement payments under such plan, but
no  reduction shall apply if the claimant demonstrates that the employer
contributed less than fifty per centum to the plan.
  4.  Reduction equal to benefit rate. If the amount to be deducted from
a claimant's benefit rate equals or exceeds such rate, he shall be inel-
igible to receive any benefits which if paid would be chargeable to  the
employer  involved  in  the pension or retirement plan, but any benefits
which would in the absence of this section be chargeable to the accounts
of other employers shall be payable to the claimant.
  5. Reduction not established. If, at the time benefits are payable, it
has not been established  that  the  claimant  will  be  receiving  such
pension  or  retirement  payment,  benefits  due shall be paid without a
reduction, subject to review within the period and under the  conditions
as provided in subdivisions three and four of section five hundred nine-
ty-seven with respect to retroactive payment of remuneration.
  6. Limitation. For the purposes of this section, the terms "pension or
retirement  payment"  and  "governmental or other pension, retirement or
retired pay, annuity, or any other similar  periodic  payment  which  is
based on previous work" shall not include payments made from a qualified
trust  to  an  eligible  retirement  plan under the terms and conditions
specified in section four hundred two of the internal revenue  code  for
federal  income  tax  purposes, such payments commonly known as eligible
rollover distributions.
  7. Alternative condition. (a) When a reduction for retirement payments
is required by the federal unemployment tax act as a condition for  full
tax  credit,  in  which  event  the provisions of subdivisions one, two,
three, four and five of this section shall not be  operative,  the]  (A)
THE  benefit rate of a claimant who is receiving a governmental or other
pension, retirement or retired pay, annuity, or any other similar  peri-
odic  payment  which  is based on his previous work, shall be reduced as
hereinafter provided, if such payment is made under a plan maintained or
contributed to by his base period employer and, except for payments made
under the social security act or the railroad retirement  act  of  1974,
the  claimant's  employment  with,  or  remuneration from, such employer
after the beginning of the base period affected his eligibility for,  or
increased the amount of, such pension, retirement or retired pay, annui-
ty, or other similar periodic payment.
  (b)  [If the claimant made no contribution for the pension, retirement
or retired pay, annuity, or other similar  periodic  payment,  his]  THE
CLAIMANT'S  benefit rate shall be reduced by the largest number of whole
dollars which is not more than  the  pro-rated  weekly  amount  of  such
payment.  If  the  claimant  was  the  sole contributor for the pension,
retirement or retired pay, annuity, or other similar  periodic  payment,
no  reduction  shall  apply.  [If  the  claimant's contributions for the
pension, retirement or retired pay, annuity, or other  similar  periodic
payment  were  less  than one hundred per centum, the commissioner shall
determine the amount of the reduction by taking into account the  claim-
ant's contributions in a manner consistent with the federal unemployment
tax act.]
  (c)  If, at the time benefits are payable, it has not been established
that the claimant will be receiving such pension, retirement or  retired
pay,  annuity  or  other  payment,  benefits due shall be paid without a
reduction, subject to review within the period and under the  conditions
as provided in subdivisions three and four of section five hundred nine-
ty-seven with respect to retroactive payment of remuneration.

S. 2607--D                         75                         A. 3007--D

  (D) FOR THE PURPOSES OF THIS SECTION, THE TERMS "PENSION OR RETIREMENT
PAYMENT"  AND "GOVERNMENTAL OR OTHER PENSION, RETIREMENT OR RETIRED PAY,
ANNUITY, OR ANY OTHER SIMILAR PERIODIC PAYMENT WHICH IS BASED ON  PREVI-
OUS  WORK"  SHALL NOT INCLUDE PAYMENTS MADE FROM A QUALIFIED TRUST TO AN
ELIGIBLE  RETIREMENT  PLAN  UNDER  THE TERMS AND CONDITIONS SPECIFIED IN
SECTION FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE FOR FEDERAL INCOME
TAX PURPOSES, SUCH PAYMENTS COMMONLY KNOWN AS ELIGIBLE ROLLOVER DISTRIB-
UTIONS.
  S 20. Section 602 of the labor law, as amended by chapter 214  of  the
laws of 1998, is amended to read as follows:
  S  602.  Application. This title shall apply to a claimant employed by
an employer whose application to participate in a  shared  work  program
has  been  approved  by  the commissioner. The provisions of subdivision
four of section five hundred twenty-seven, subdivisions three and  seven
of  section  five  hundred  ninety  and subdivision four of section five
hundred ninety-six of this article  shall  not  be  applicable  to  such
claimant  and  he  OR SHE shall not be required to be available for work
with any other employer NOR SHALL HE OR SHE BE REQUIRED  TO  SEARCH  FOR
WORK  IN ACCORDANCE WITH SUBDIVISION TWO OF SECTION FIVE HUNDRED NINETY-
ONE OF THIS ARTICLE IF HE OR SHE IS AVAILABLE FOR HIS OR HER USUAL HOURS
OF WORK WITH HIS OR HER EMPLOYER THAT HAS BEEN ACCEPTED  TO  PARTICIPATE
IN  THE  SHARED WORK PROGRAM. The other provisions of this article shall
apply to such claimants and their employers to the extent that they  are
not inconsistent with the provisions of this title.
  S  21.  Section  603  of the labor law, as added by chapter 438 of the
laws of 1985, is amended to read as follows:
  S 603. Definitions. For purposes of this title:  "Total  unemployment"
shall  mean the total lack of any employment on any day, other than with
an employer applying for a shared work program. ["Full time hours" shall
mean at least thirty-five but not more than forty hours  per  week,  and
shall  not include overtime as defined in the Fair Labor Standards Act.]
"Work force" shall mean the total work  force,  a  clearly  identifiable
unit  or  units thereof, or a particular shift or shifts. THE WORK FORCE
SUBJECT TO REDUCTION SHALL CONSIST OF NO LESS THAN TWO EMPLOYEES.
  S 21-a. Section 604 of the labor law, as amended by chapter 564 of the
laws of 2002, is amended to read as follows:
  S 604. Eligibility conditions. A claimant shall be eligible for  bene-
fits  under  this  title  if he OR SHE works less than his OR HER normal
[full time] hours in a week for his customary employer, and that employ-
er has reduced or restricted the claimant's weekly hours of work, or has
rehired a claimant previously laid off and reduced  his  OR  HER  weekly
hours  of  work from those previously worked, as the result of a plan by
the employer to stabilize the work force by a  program  of  sharing  the
work  remaining  after  a  reduction in total hours of work and a corre-
sponding reduction in wages, provided the program requires not less than
a twenty percent nor more than a sixty percent reduction  in  hours  and
wages  among the work force. A claimant receiving supplemental unemploy-
ment compensation benefits, as defined in section five hundred  one  (c)
(17)  (D)  of  the internal revenue code of nineteen hundred fifty-four,
shall not be eligible hereunder. Any employee who was otherwise eligible
for benefits under this title but was denied benefits during the  period
beginning  October first, two thousand one and ending on December first,
two thousand one because more than five percent of his OR HER wages were
derived from piece work, shall be entitled to make a  retroactive  claim
for  such benefits provided such claim is filed within sixty days of the
effective date of this sentence.

S. 2607--D                         76                         A. 3007--D

  S 22. Section 605 of the labor law, as amended by section 2 of chapter
81 of the laws of 1992, is amended to read as follows:
  S  605. Qualified employers; application. An employer who has at least
[five] TWO full time employees may apply to participate in a shared work
program.  The WRITTEN application shall be made according to such  forms
and  procedures  as  the commissioner may specify and shall include such
information as the commissioner may require, INCLUDING SUCH OTHER INFOR-
MATION THAT THE UNITED STATES SECRETARY OF LABOR DETERMINES TO BE APPRO-
PRIATE FOR PURPOSES OF A SHARED WORK PROGRAM.   The  commissioner  shall
not  approve such application unless the employer (1) [agrees] CERTIFIES
that for the duration of the program it will not eliminate  or  diminish
health  insurance,  medical  insurance, RETIREMENT BENEFITS or any other
fringe benefits provided to employees immediately prior to the  applica-
tion  UNLESS SUCH BENEFITS PROVIDED TO EMPLOYEES THAT DO NOT PARTICIPATE
IN THE SHARED WORK PROGRAM ARE REDUCED OR DIMINISHED TO THE SAME  EXTENT
AS  THOSE  EMPLOYEES  THAT  PARTICIPATE  IN THE SHARED WORK PROGRAM; (2)
certifies that the collective bargaining agent  for  the  employees,  if
any, has agreed to participate in the program; (3) certifies that if not
for the shared work program to be initiated the employer would reduce or
would  have  reduced  its work force to a degree equivalent to the total
number of working hours proposed to be reduced  or  restricted  for  all
included  employees; (4) certifies that it will not hire additional part
time or full time employees  for  the  affected  work  force  while  the
program  is  in  operation;  [and] (5) agrees that no participant of the
program shall receive, in the aggregate, more than  [twenty]  TWENTY-SIX
weeks  of  benefits  exclusive  of  the  waiting  week;  (6)  PROVIDES A
DESCRIPTION OF HOW WORKERS IN THE WORK FORCE WILL  BE  NOTIFIED  OF  THE
SHARED  WORK PROGRAM IN ADVANCE OF IT TAKING EFFECT, IF FEASIBLE, AND IF
SUCH NOTICE IS NOT FEASIBLE, PROVIDES AN EXPLANATION OF WHY SUCH  NOTICE
IS  NOT  FEASIBLE; (7) PROVIDES AN ESTIMATE OF THE NUMBER OF WORKERS WHO
WOULD BE LAID OFF IF THE EMPLOYER COULD NOT PARTICIPATE  IN  THE  SHARED
WORK PROGRAM; AND (8) CERTIFIES THAT THE TERMS OF THE EMPLOYER'S WRITTEN
PLAN  AND  IMPLEMENTATION  SHALL BE CONSISTENT WITH EMPLOYER OBLIGATIONS
UNDER APPLICABLE FEDERAL AND STATE LAWS.
  S 22-a. Intentionally omitted.
  S 23. Section 607 of the labor law, as added by  chapter  438  of  the
laws of 1985, subdivision 1 as amended by section 4 of chapter 81 of the
laws of 1992, is amended to read as follows:
  S  607.  Benefits. 1. Amount. An eligible claimant shall be paid bene-
fits for any week equal to his OR HER benefit  rate  multiplied  by  the
percentage of reduction of his OR HER wages resulting from reduced hours
of work, but only if such percentage is no less than twenty percent. The
weekly  benefit  amount  shall  be  rounded off to the nearest dollar. A
claimant  shall  not  be  paid  such  benefits  in  excess  of  [twenty]
TWENTY-SIX weeks during a benefit year.
  2.  Waiting  period.  A claimant shall not be entitled to benefits for
the first week of unemployment under a shared work program unless he  OR
SHE  has  served a waiting period in his OR HER benefit year pursuant to
subdivision seven of section five hundred ninety of this article.
  S 23-a. Intentionally omitted.
  S 24. The labor law is amended by adding a new section 609 to read  as
follows:
  S  609. TRAINING.  ELIGIBLE EMPLOYEES MAY PARTICIPATE, AS APPROPRIATE,
IN TRAINING TO ENHANCE JOB SKILLS IF SUCH PROGRAM HAS BEEN  APPROVED  BY
THE COMMISSIONER.  SUCH TRAINING MAY INCLUDE EMPLOYER-SPONSORED TRAINING
OR WORKER TRAINING FUNDED UNDER THE WORKFORCE INVESTMENT ACT OF 1998.

S. 2607--D                         77                         A. 3007--D

  S  25.  Section 611 of the labor law, as amended by chapter 589 of the
laws of 1998, is amended to read as follows:
  S  611.  Charging  of  benefits.  Benefits paid to a claimant shall be
charged to the employers' accounts  as  provided  in  paragraph  (e)  of
subdivision  one  of  section  five  hundred eighty-one of this article.
HOWEVER, EXCEPT FOR INDIVIDUALS EMPLOYED BY A PARTICIPATING EMPLOYER  ON
A  SEASONAL,  TEMPORARY  OR  INTERMITTENT  BASIS,  NO BENEFITS PAID TO A
CLAIMANT SHALL BE CHARGED TO AN EMPLOYER'S ACCOUNT IF THE STATE IS REIM-
BURSED BY THE UNITED STATES PURSUANT TO THE MIDDLE CLASS TAX RELIEF  AND
JOB CREATION ACT OF 2012, PL 112-96.
  S  26. The labor law is amended by adding a new section 612 to read as
follows:
  S 612.  SEVERABILITY.    IF  ANY  AMENDMENT  CONTAINED  IN  A  CLAUSE,
SENTENCE,  PARAGRAPH, SECTION OR PART OF THIS TITLE SHALL BE ADJUDGED BY
THE UNITED STATES DEPARTMENT OF LABOR TO VIOLATE REQUIREMENTS FOR  MAIN-
TAINING  BENEFIT STANDARDS REQUIRED OF THE STATE IN ORDER TO BE ELIGIBLE
FOR ANY FINANCIAL BENEFIT OFFERED  THROUGH  FEDERAL  LAW  OR  REGULATION
INCLUDING, BUT NOT LIMITED TO, THE WAIVER OF INTEREST ON ADVANCES OR THE
WAIVER  OF  OBLIGATIONS TO REPAY SUCH ADVANCES TO THE STATE UNEMPLOYMENT
INSURANCE FUND, SUCH AMENDMENTS SHALL BE SEVERED FROM THIS ACT AND SHALL
NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER THEREOF.
  S 27. Section 39 of part P2 of chapter 62 of the laws of 2003,  amend-
ing  the  state  finance  law and other laws relating to authorizing and
directing the state comptroller to  loan  money  to  certain  funds  and
accounts, as amended by section 1 of part W of chapter 58 of the laws of
2011, is amended to read as follows:
  S  39.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2003; provided,
however, that sections one, three, four, six, seven through fifteen, and
seventeen of this act shall expire March 31, 2004, when upon  such  date
the  provisions of such sections shall be deemed repealed; [and sections
thirty and thirty-one of this act shall expire December  31,  2013]  and
the  amendments made to section 69-c of the state finance law by section
thirty-two of this act shall not affect the  expiration  and  repeal  of
such section and shall be deemed to be expired therewith.
  S  28. Severability. If any amendment contained in a clause, sentence,
paragraph, section or part of this act shall be adjudged by  the  United
States Department of Labor to violate requirements for maintaining bene-
fit  standards  required  of  the  state in order to be eligible for any
financial benefit offered through federal law or  regulation  including,
but  not limited to, the waiver of interest on advances or the waiver of
obligations to repay such advances to the state  unemployment  insurance
fund,  such  amendments  shall  be  severed  from this act and shall not
affect, impair or invalidate the remainder thereof.
  S 29. This act shall take effect immediately, provided, however, that:
  a. sections one, three, seven, and eight of this act shall take effect
January 1, 2014;
  b. sections two, thirteen, fifteen, and nineteen  of  this  act  shall
apply to all claims filed after January 1, 2014;
  c. section nine of this act shall take effect January 1, 2017;
  d. section ten of this act shall take effect January 1, 2019;
  e.  sections  five,  six, sixteen, seventeen, and eighteen of this act
shall apply to all overpayments established after October 1, 2013;
  f. sections fourteen, twenty,  twenty-one,  twenty-one-a,  twenty-two,
twenty-three,  twenty-four, and twenty-six of this act shall take effect
on the thirtieth day after it shall have become a law;

S. 2607--D                         78                         A. 3007--D

  g. section twenty-five of this act shall expire and be deemed repealed
August 23, 2015;
  h.  section twelve of this act shall take effect January 1, 2014 or on
the same date as the reversion of subdivision 2 of section  591  of  the
labor  law as provided in section 10 of chapter 413 of the laws of 2003,
as amended, whichever is later; and
  i. the amendments to section 591-a of the labor law  made  by  section
fourteen  of  this  act  shall not affect the repeal of such section and
shall be deemed repealed therewith.

                                 PART P

  Section 1. Subdivision 1 of section 652 of the labor law,  as  amended
by  chapter  747 of the laws of 2004, is amended and a new subdivision 6
is added to read as follows:
  1. Statutory. Every employer shall pay to each of  its  employees  for
each hour worked a wage of not less than:
  $4.25 on and after April 1, 1991,
  $5.15 on and after March 31, 2000,
  $6.00 on and after January 1, 2005,
  $6.75 on and after January 1, 2006,
  $7.15 on and after January 1, 2007,
  $8.00 ON AND AFTER DECEMBER 31, 2013,
  $8.75 ON AND AFTER DECEMBER 31, 2014,
  $9.00  ON AND AFTER DECEMBER 31, 2015, or, if greater, such other wage
as may be established by federal law pursuant to 29 U.S.C.  section  206
or its successors
or  such  other  wage  as  may  be  established  in  accordance with the
provisions of this article.
  6. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION AND SUBDIVISION TWO
OF SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE,  A  MODIFICATION  IN
THE  HOURLY  CASH  WAGE  OR  MEAL AND LODGING CREDITS AS APPLIED TO FOOD
SERVICE WORKERS AND SERVICE EMPLOYEES PAID IN ACCORDANCE WITH  PART  146
OF  TITLE 12 OF THE NEW YORK STATE COMPILATION OF CODES, RULES AND REGU-
LATIONS THAT WOULD OTHERWISE BE BASED ON THE  INCREASES  IN  THE  HOURLY
MINIMUM  WAGE  THAT  WILL BECOME EFFECTIVE ON DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN, DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  FOURTEEN  AND
DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  FIFTEEN  SHALL BE MADE BY A WAGE
ORDER PROMULGATED BY THE COMMISSIONER PURSUANT TO  SECTION  SIX  HUNDRED
FIFTY-SIX OF THIS ARTICLE AND PROVIDED FURTHER THAT, FOR THE PURPOSES OF
THE  MODIFICATIONS  BASED  ON SUCH INCREASES PROVIDED FOR IN SUBDIVISION
TWO OF THIS SECTION ONLY, THE MAXIMUM CREDIT FOR TIPS IN SUCH WAGE ORDER
SHALL BE MODIFIED SO THAT SUCH CREDIT, WHEN COMBINED WITH THE CASH WAGE,
IS EQUAL TO THE MINIMUM WAGE. ANY TIME AFTER THE EFFECTIVE DATE  OF  THE
CHAPTER  OF  THE LAWS OF TWO THOUSAND THIRTEEN WHICH ADDED THIS SUBDIVI-
SION, THE COMMISSIONER SHALL  APPOINT  A  WAGE  BOARD  PURSUANT  TO  THE
PROVISION  OF  SUBDIVISION ONE OF SECTION SIX HUNDRED FIFTY-FIVE OF THIS
ARTICLE TO INQUIRE AND REPORT AND RECOMMEND  ANY  CHANGES  TO  THE  WAGE
ORDER  GOVERNING  WAGES PAYABLE TO SUCH FOOD SERVICE WORKERS AND SERVICE
EMPLOYEES SUFFICIENT TO PROVIDE ADEQUATE MAINTENANCE AND TO PROTECT  THE
HEALTH  AND  LIVELIHOOD  OF EMPLOYEES SUBJECT TO SUCH A WAGE ORDER. SUCH
WAGE BOARD SHALL MAKE SUCH REPORT AND RECOMMENDATIONS TO THE COMMISSION-
ER WITHIN SIX MONTHS OF ITS ESTABLISHMENT. THE  COMMISSIONER  SHALL  ACT
UPON  SUCH  REPORT  AND  RECOMMENDATIONS  PURSUANT  TO THE PROVISIONS OF
SECTION SIX HUNDRED FIFTY-SIX OF THIS ARTICLE.
  S 2. This act shall take effect immediately.

S. 2607--D                         79                         A. 3007--D

                                 PART Q
                          Intentionally Omitted

                                 PART R

Section 1.  The racing, pari-mutuel wagering and breeding law is amended
by adding a new section 109-a to read as follows:
  S  109-A.  LABOR  PEACE  AGREEMENTS FOR CERTAIN FACILITIES.   1. DEFI-
NITIONS. AS USED IN THIS SUBDIVISION:
  A. "GAMING FACILITY" MEANS ANY CASINO GAMING FACILITY LICENSED BY  THE
COMMISSION.  A  GAMING FACILITY OR OPERATION SHALL NOT INCLUDE ANY HORSE
RACING, BINGO OR CHARITABLE GAMES  OF  CHANCE,  THE  STATE  LOTTERY  FOR
EDUCATION,  OR  ANY  GAMING  FACILITY  OPERATING PURSUANT TO THE FEDERAL
INDIAN GAMING REGULATORY ACT, 25 U.S.C. S 2710 ET SEQ. A GAMING FACILITY
OR OPERATION SHALL INCLUDE ANY HOSPITALITY OPERATION AT  OR  RELATED  TO
THE GAMING FACILITY.
  B.  "LABOR  PEACE  AGREEMENT"  MEANS AN AGREEMENT ENFORCEABLE UNDER 29
U.S.C. S 185(A) THAT, AT A MINIMUM,  PROTECTS  THE  STATE'S  PROPRIETARY
INTERESTS  BY  PROHIBITING LABOR ORGANIZATIONS AND MEMBERS FROM ENGAGING
IN PICKETING, WORK STOPPAGES, BOYCOTTS, AND ANY OTHER ECONOMIC INTERFER-
ENCE WITH OPERATION OF THE RELEVANT GAMING FACILITY.
  C. "LICENSE" MEANS ANY PERMIT, LICENSE, FRANCHISE OR ALLOWANCE OF  THE
COMMISSION AND SHALL INCLUDE ANY FRANCHISEE OR PERMITTEE.
  D.  "PROPRIETARY INTEREST" MEANS AN ECONOMIC AND NON-REGULATORY INTER-
EST AT RISK IN THE FINANCIAL SUCCESS OF THE GAMING FACILITY  THAT  COULD
BE  ADVERSELY  AFFECTED  BY LABOR-MANAGEMENT CONFLICT, INCLUDING BUT NOT
LIMITED TO PROPERTY INTERESTS, FINANCIAL INVESTMENTS AND  REVENUE  SHAR-
ING.
  2.  LEGISLATIVE  FINDINGS. THE STATE LEGISLATURE FINDS THAT THE GAMING
INDUSTRY CONSTITUTES A VITAL SECTOR OF NEW YORK'S  OVERALL  ECONOMY  AND
THAT  THE  STATE  THROUGH  ITS  OPERATION OF LOTTERIES AND VIDEO LOTTERY
FACILITIES AND THROUGH ITS OWNERSHIP  OF  THE  PROPERTIES  UTILIZED  FOR
HORSE  RACING BY THE NEW YORK RACING ASSOCIATION, INC. HAS A SIGNIFICANT
AND ONGOING  ECONOMIC  AND  NON-REGULATORY  INTEREST  IN  THE  FINANCIAL
VIABILITY AND COMPETITIVENESS OF THE GAMING INDUSTRY. THE STATE LEGISLA-
TURE  FURTHER  FINDS THAT THE AWARD OR GRANT OF A LICENSE BY THE COMMIS-
SION TO OPERATE A GAMING FACILITY IS A SIGNIFICANT STATE ACTION AND THAT
THE COMMISSION MUST MAKE PRUDENT AND EFFICIENT DECISIONS TO MAXIMIZE THE
BENEFITS AND MINIMIZE THE RISKS OF GAMING. THE STATE LEGISLATURE FURTHER
RECOGNIZES THAT CASINO GAMING INDUSTRY INTEGRATION CAN PROVIDE  A  VITAL
ECONOMIC  ENGINE  TO  ASSIST,  NURTURE,  DEVELOP,  AND  PROMOTE REGIONAL
ECONOMIC DEVELOPMENT, THE STATE TOURISM INDUSTRY AND THE GROWTH OF  JOBS
IN  THE  STATE.  ADDITIONALLY, THE STATE LEGISLATURE ALSO FINDS REVENUES
DERIVED DIRECTLY BY THE STATE FROM SUCH GAMING ACTIVITY WILL  BE  SHARED
FROM  GROSS  GAMING  RECEIPTS,  AFTER  PAYOUT  OF  PRIZES  BUT  PRIOR TO
DEDUCTIONS FOR OPERATIONAL EXPENSES.
  THEREFORE, THE STATE LEGISLATURE FINDS THAT THE STATE HAS  A  SUBSTAN-
TIAL  AND COMPELLING PROPRIETARY INTEREST IN ANY LICENSE AWARDED FOR THE
OPERATION OF A GAMING FACILITY WITHIN THE STATE.
  3. REQUIREMENTS. THE COMMISSION SHALL  REQUIRE  ANY  APPLICANT  FOR  A
GAMING  FACILITY  LICENSE  WHO  HAS  NOT  YET ENTERED INTO A LABOR PEACE
AGREEMENT TO PRODUCE AN AFFIDAVIT STATING IT SHALL ENTER  INTO  A  LABOR
PEACE  AGREEMENT  WITH  LABOR ORGANIZATIONS THAT ARE ACTIVELY ENGAGED IN
REPRESENTING OR ATTEMPTING TO REPRESENT GAMING OR  HOSPITALITY  INDUSTRY
WORKERS  IN  THE  STATE.  IN  ORDER FOR THE COMMISSION TO ISSUE A GAMING

S. 2607--D                         80                         A. 3007--D

FACILITY LICENSE AND FOR OPERATIONS TO COMMENCE,  THE  APPLICANT  FOR  A
GAMING  FACILITY  LICENSE MUST PRODUCE DOCUMENTATION THAT IT HAS ENTERED
INTO A LABOR PEACE  AGREEMENT  WITH  EACH  LABOR  ORGANIZATION  THAT  IS
ACTIVELY  ENGAGED IN REPRESENTING AND ATTEMPTING TO REPRESENT GAMING AND
HOSPITALITY INDUSTRY WORKERS IN THE STATE. THE COMMISSION SHALL MAKE THE
MAINTENANCE OF SUCH A LABOR PEACE AGREEMENT AN ONGOING  MATERIAL  CONDI-
TION OF LICENSURE.
  A  LICENSE  HOLDER  SHALL,  AS A CONDITION OF ITS LICENSE, ENSURE THAT
OPERATIONS AT THE GAMING FACILITY THAT  ARE  CONDUCTED  BY  CONTRACTORS,
SUBCONTRACTORS,  LICENSEES,  ASSIGNEES,  TENANTS  OR SUBTENANTS AND THAT
INVOLVE GAMING OR HOSPITALITY INDUSTRY EMPLOYEES SHALL BE DONE  UNDER  A
LABOR PEACE AGREEMENT CONTAINING THE SAME PROVISIONS AS SPECIFIED ABOVE.
  S 2. This act shall take effect immediately.

                                 PART S

  Section 1. Subdivision 2 of section 903 of the education law, as added
by chapter 281 of the laws of 2007, is amended to read as follows:
  2.  a.  A  dental  health  certificate  shall  be  requested from each
student.  Each student is requested to furnish a dental  health  certif-
icate  at the same time that health certificates are required. An [exam-
ination] ASSESSMENT and dental  health  history  of  any  child  may  be
requested  by  the  local  school  authorities  at  any  time  in  their
discretion to promote the educational  interests  of  such  child.  Each
certificate  shall be signed by a duly licensed dentist, OR A REGISTERED
DENTAL HYGIENIST who is authorized by law to practice in this state, and
consistent with any applicable written practice agreement, or by a  duly
licensed  dentist  OR  REGISTERED  DENTAL HYGIENIST who is authorized to
practice in the jurisdiction in which the [examination]  ASSESSMENT  was
given, provided that the commissioner has determined that such jurisdic-
tion  has standards of licensure and practice comparable to those of New
York. Each such certificate shall describe the dental  health  condition
of  the  student when the [examination] ASSESSMENT was made, which shall
not be more than twelve months prior to the commencement of  the  school
year in which the [examination] ASSESSMENT is requested, and shall state
whether  such student is in fit condition of dental health to permit his
or her attendance at the public schools.
  b. A notice  of  request  for  dental  health  certificates  shall  be
distributed  at  the  same  time  that  parents  or  person  in parental
relationship to students are notified of health examination requirements
and shall state that a list of DENTAL PRACTICES, dentists AND REGISTERED
DENTAL HYGIENISTS to which children [who need comprehensive dental exam-
inations] may be referred for [treatment] DENTAL SERVICES on a  free  or
reduced  cost basis is available upon request at the child's school. The
department shall,  in  collaboration  with  the  department  of  health,
compile and maintain a list of DENTAL PRACTICES, dentists AND REGISTERED
DENTAL HYGIENISTS to which children [who need comprehensive dental exam-
inations]  may  be referred for [treatment] DENTAL SERVICES on a free or
reduced cost basis. Such list shall be  made  available  to  all  public
schools and be made available to parents or person in parental relation-
ship upon request. The department shall promulgate regulations to ensure
the  gathering and dissemination of the proper information to interested
parties.
  S 2. This act shall take effect immediately.

                                 PART T

S. 2607--D                         81                         A. 3007--D

  Section 1. Subdivisions 3 and 5 of section 6542 of the education  law,
as  amended  by  chapter  48 of the laws of 2012, are amended to read as
follows:
  3.  No physician shall employ or supervise more than [two] FOUR physi-
cian assistants in his or her private practice.
  5. Notwithstanding any other provision of this article, nothing  shall
prohibit a physician employed by or rendering services to the department
of corrections and community supervision under contract from supervising
no  more than [four] SIX physician assistants in his or her practice for
the department of corrections and community supervision.
  S 2. This act shall take effect immediately.

                                 PART U

  Section 1. The education law is amended by adding a new section 6303-a
to read as follows:
  S 6303-A. GRADUATION, ACHIEVEMENT AND PLACEMENT  PROGRAM.  1.    DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "PLAN" SHALL MEAN THE GRADUATION, ACHIEVEMENT AND PLACEMENT  (GAP)
PROGRAM  PLAN  TO BE DEVELOPED BY THE STATE UNIVERSITY TRUSTEES PURSUANT
TO SUBDIVISION TWO OF THIS SECTION, AFTER CONSULTATION WITH THE COMMUNI-
TY COLLEGE PRESIDENTS, COUNCILS AND FACULTY.
  (B) "PROGRAM" SHALL MEAN THE GAP PROGRAM TO BE DEVELOPED BY THE  STATE
UNIVERSITY TRUSTEES PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  2.  BY  NO  LATER  THAN  JULY  FIRST, TWO THOUSAND FOURTEEN, THE STATE
UNIVERSITY TRUSTEES SHALL DEVELOP, AS PART OF  THE  MASTER  PLAN  TO  BE
SUBMITTED  PURSUANT TO SECTION THREE HUNDRED FIFTY-FOUR OF THIS CHAPTER,
A COMPREHENSIVE PLAN TO BE INCORPORATED INTO ITS  TWO  THOUSAND  SIXTEEN
MASTER PLAN AND FULLY IMPLEMENTED NO LATER THAN JULY FIRST, TWO THOUSAND
EIGHTEEN AT EACH OF THE STATE UNIVERSITY OF NEW YORK COMMUNITY COLLEGES.
SUCH  PLAN  SHALL SEEK TO DEVELOP A REMEDIAL EDUCATION PROGRAM TO ACCOM-
PLISH THE FOLLOWING GOALS:
  (A) IMPROVE COMMUNITY COLLEGE OUTCOMES BY REDUCING THE TIME TO  DEGREE
COMPLETION OR TRANSFER TO A FOUR YEAR COLLEGE;
  (B)  REDUCE  STATE  AND LOCAL SPONSOR EXPENDITURES ON REMEDIAL COURSE-
WORK;
  (C) IMPROVE OVERALL COMMUNITY COLLEGE GRADUATION RATES AND  EMPLOYMENT
PROSPECTS.
  3.  EACH COMMUNITY COLLEGE SHALL UTILIZE FEATURES IN ITS PROGRAM IDEN-
TIFIED IN THE SUNY TASK FORCE ON REMEDIATION REPORT, ISSUED PURSUANT  TO
CHAPTER  FIFTY-SEVEN  OF  THE  LAWS  OF  TWO  THOUSAND TWELVE, AND SHALL
CONSIDER OTHER FEATURES OF SUCCESSFUL EXISTING PROGRAMS, INCLUDING,  BUT
NOT LIMITED TO THE FOLLOWING:
  (A)  ADOPTION  OF  A  CONSISTENT DEFINITION OF "COLLEGE READINESS" FOR
STUDENT PLACEMENT INTO REMEDIAL  PROGRAMS  USING  MULTIPLE  MEASURES  OF
STUDENT ACHIEVEMENT;
  (B) ACCELERATED DEVELOPMENTAL EDUCATION PROGRAM OFFERINGS;
  (C)  INCORPORATING REMEDIAL INSTRUCTION INTO THE BEGINNING OF COLLEGE-
LEVEL PROGRAMS,  EITHER  AS  INTRODUCTORY  COURSES  OR  INTEGRATED  INTO
INITIAL COLLEGE-LEVEL COURSES;
  (D)  UTILIZE  SUPPLEMENTAL ACADEMIC SUPPORT FOR DEVELOPMENTAL STUDENTS
ENROLLED IN COLLEGE LEVEL COURSES AS  WELL  AS  OTHER  CONTEXTUALIZATION
MODELS;

S. 2607--D                         82                         A. 3007--D

  (E)  A  CONSOLIDATED  COURSE  SCHEDULE  THAT  PERMITS STUDENTS TO TAKE
CLASSES IN A MORNING, AFTERNOON OR EVENING  SCHEDULE  SO  AS  TO  ENABLE
STUDENTS TO BALANCE SCHOOL, WORK AND OTHER PERSONAL RESPONSIBILITIES;
  (F)  AN  ADVISEMENT  MODEL THAT DIRECTS COUNSELORS WITH ASSIGNED CASE-
LOADS TO MEET WITH STUDENTS MONTHLY FROM PROGRAM ENTRY UNTIL GRADUATION;
  (G) CAREER AND EMPLOYMENT SERVICES THAT PROVIDE STUDENTS  WITH  INTER-
VIEW TRAINING, JOB SKILLS AND CAREER PLANNING;
  (H)  ACADEMIC  SUPPORT  SERVICES  THAT PROVIDE TUTORING FROM QUALIFIED
UNDERGRADUATE OR GRADUATE STUDENTS OR FACULTY; AND
  (I) COMPREHENSIVE EVALUATION AND THE USE OF DATA TO ASSESS THE  EFFEC-
TIVENESS OF THE PROGRAM.
  4. EACH COMMUNITY COLLEGE SHALL BE REQUIRED TO IMPLEMENT, ON A PARTIAL
BASIS,  ITS  PROGRAM  BY THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
ACADEMIC YEAR.
  5. EACH COMMUNITY COLLEGE SHALL REPORT ON THE  IMPLEMENTATION  OF  THE
PROGRAM AND SHALL REPORT ON MEASURES OF STUDENT SUCCESS FOR EACH STUDENT
ENROLLED  IN  SUCH PROGRAM. SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED
TO:
  (A) ANNUAL NUMBER  AND  PERCENTAGE  OF  ENTERING  FIRST-TIME  STUDENTS
ENROLLED   IN   REMEDIAL  (DEVELOPMENTAL)  EDUCATION  COURSES  IN  MATH,
ENGLISH/READING OR BOTH AND COMPLETE A COLLEGE-LEVEL COURSE IN THE  SAME
SUBJECT.
  (B)  ANNUAL  NUMBER  AND  PERCENTAGE  OF ENTERING FIRST-TIME DEGREE OR
CERTIFICATE SEEKING STUDENTS  WHO  COMPLETE  ENTRY  COLLEGE-LEVEL  MATH,
ENGLISH  AND  READING  COURSES WITHIN THE FIRST TWO CONSECUTIVE ACADEMIC
YEARS.
  (C) NUMBER AND PERCENTAGE OF ENTERING DEGREE  OR  CERTIFICATE  SEEKING
STUDENTS  ENROLLING  FROM FALL TO SPRING AND FALL TO FALL AT AN INSTITU-
TION OF HIGHER EDUCATION.
  S 2. This act shall take effect immediately.

                                 PART V

  Section 1. Section 6301 of the education law is amended  by  adding  a
new subdivision 6 to read as follows:
  6.  "CERTIFICATE  OF RESIDENCE FORM".  A STANDARD FORM AS DEVELOPED BY
THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, IN CONJUNCTION  WITH
THE CHANCELLOR OF THE CITY UNIVERSITY OF NEW YORK.
  S 2. Subdivisions 3 and 4 of section 6305 of the education law, subdi-
vision 3 as amended by chapter 486 of the laws of 1967 and subdivision 4
as  separately  amended by chapters 439 and 646 of the laws of 1975, are
amended to read as follows:
  3. The chief fiscal officer of each county, as defined in section 2.00
of the local finance law, shall, upon application and submission to  him
of  satisfactory  evidence,  issue to any person desiring to enroll in a
community college as a non-resident student, a certificate of  residence
FORM showing that said person is a resident of said county. If the chief
fiscal  officer  of  a county refuses to issue such a certificate on the
ground that the person applying therefor is not a resident of such coun-
ty, the person applying may  appeal  to  the  chancellor  of  the  state
university. The chancellor of the state university shall make a determi-
nation after a hearing, upon ten days' notice to such chief fiscal offi-
cer  of the county, and such determination shall be final and binding on
the county. Such person shall, upon his registration  for  each  college
year,  file with the college such a certificate of residence FORM issued
not earlier than two months prior thereto, and such certificate of resi-

S. 2607--D                         83                         A. 3007--D

dence FORM shall be valid for a period of one  year  from  the  date  of
issuance.
  4.  If,  pursuant  to  subdivision  two  of  this section, a community
college elects to charge to and collect  an  allocable  portion  of  the
operating  costs  and  a further sum on account of capital costs of such
college from each county which has issued a certificate FORM or  certif-
icates of residence FORMS pursuant to subdivision three of this section,
on the basis of which non-resident students are attending such community
college,  the  president  of such community college shall, within forty-
five days after the commencement of each college term or program, submit
to the chief fiscal officer  of  each  county  a  list  of  non-resident
students  attending  such  college  on the basis of such certificates of
residence FORM and a voucher for the amount payable by each  county  for
these  students.  Such list and voucher shall be determined on the basis
of non-resident students enrolled in the program as of the end (or  last
day)  of  the third week of the commencement for a program scheduled for
one semester, the end of the second  for  a  program  scheduled  for  an
academic quarter and the end of the first week for any program scheduled
to  be  completed  in  thirty  days or less. The chancellor of the state
university, or such officers or employees thereof as shall be designated
by the chancellor in the manner authorized by the state university trus-
tees, shall notify the chief fiscal  officers  of  each  county  of  the
approved annual operating and capital charge-back rate for each communi-
ty college. The amount billed to the chief fiscal officer of each county
by the president of such community college as a charge for the allocable
portion  of  the operating costs and a further sum on account of capital
costs of such college for non-resident students shall  be  paid  to  the
chief  fiscal officer of such college by the billed county no later than
sixty days after the county receives said billing.
  S 3. Subdivision 11 of section 6305 of the education law, as added  by
section  1  of  part Q of chapter 57 of the laws of 2012, is amended and
three new subdivisions 12, 13 and 14 are added to read as follows:
  11. [The state university board of trustees, in conjunction  with  the
city  university  board  of  trustees,  is directed to examine the laws,
regulations, and policies regarding community college charges  for  non-
resident  students.  This  examination  shall  review the impacts of the
current law mechanisms for covering the local sponsor's share of  commu-
nity  college  operating  costs  attributable  to non-resident students,
including the impacts of charging a non-resident student or charging the
county where the student resides a per student allocable portion of  the
local  sponsor's  share  of operating costs, and shall also specifically
include examination of the following:
  a. the methodology for determining the amount that may be charged by a
community college for each non-resident student's allocable  portion  of
the local sponsor's share of operating costs;
  b. the process for notifying a county of the approved annual operating
and community college charge-back rates and the timeline for a county to
pay the charge-back rate to the community college;
  c.  policies regarding charge-back rates paid by city and towns in the
county; and
  d. recommendations for  potential  modification  to  the  laws,  regu-
lations,  and policies regarding community college charges for non-resi-
dent students that would result in improvements related  to  equity  and
efficiency  and the fiscal impacts of implementing such modifications to
students, counties and the state.

S. 2607--D                         84                         A. 3007--D

  The boards shall submit a joint report of their findings to the chairs
of the senate and assembly higher education committees and the chair  of
the  senate  finance  committee  and  the chair of the assembly ways and
means committee no later than September first, two thousand twelve.] THE
STATE  UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK SHALL,
PURSUANT TO A  PLAN,  DEVELOP  A  UNIFORM  METHODOLOGY  FOR  CALCULATING
CHARGEBACK RATES TO ENSURE EQUITY BETWEEN THE LOCAL SPONSOR CONTRIBUTION
PER  STUDENT  AND THE CHARGEBACK RATE PER STUDENT CHARGED TO OTHER COUN-
TIES, AND THE IMPLEMENTATION OF SUCH METHODOLOGY WILL BE PHASED IN  OVER
FIVE  YEARS BEGINNING IN THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
ACADEMIC YEAR. THE PLAN SHALL BE SUBMITTED TO THE CHAIR  OF  THE  SENATE
AND  ASSEMBLY  HIGHER  EDUCATION  COMMITTEES,  THE  CHAIRS OF THE SENATE
FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE
AND  THE  DIRECTOR OF THE BUDGET NO LATER THAN DECEMBER FIRST, TWO THOU-
SAND THIRTEEN.
  12. SUCH CALCULATED CHARGEBACK RATES SHALL BE SET ON AN ACADEMIC  YEAR
BASIS  AND  SHALL NOT VARY BY SEMESTER WITHIN EACH ACADEMIC YEAR, AND NO
RETROACTIVE CHARGE SHALL BE BILLED TO ANY COUNTY BASED ON  AN  INCREASED
CHARGEBACK RATE AFTER THE COMMENCEMENT OF EACH ANNUAL ACADEMIC YEAR.
  13.  BEGINNING  IN  THE  TWO  THOUSAND  FOURTEEN--TWO THOUSAND FIFTEEN
ACADEMIC YEAR, THE STATE UNIVERSITY OF NEW YORK AND THE CITY  UNIVERSITY
OF  NEW YORK SHALL DEVELOP AN ON-LINE TRAINING PROGRAM TO BE MADE AVAIL-
ABLE TO EACH COUNTY  TREASURER  AND/OR  FINANCIAL  OFFICER,  TO  PROVIDE
INFORMATION  REGARDING  CHARGEBACK  FEES  AND GUIDANCE CONCERNING COMMON
FORMS, TIMELINES, AND POLICIES  RELATING  TO  CHARGEBACK  FEES  AND  THE
PAYMENT THEREOF.
  14.  BEGINNING  IN  THE  TWO  THOUSAND  FOURTEEN--TWO THOUSAND FIFTEEN
ACADEMIC YEAR, THE STATE UNIVERSITY OF NEW YORK AND THE CITY  UNIVERSITY
OF  NEW  YORK  SHALL  ASSIST IN THE DEVELOPMENT AND IMPLEMENTATION OF AN
ON-LINE OR ELECTRONIC BILLING SYSTEM, TO BE AVAILABLE TO THE COUNTIES OF
THIS STATE, FOR THE PAYMENT OF CHARGEBACK FEES.
  S 4. This act shall take effect immediately.

                                 PART W

  Section 1. The tax law is amended by adding a  new  section  627-a  to
read as follows:
  S 627-A. GIFT FOR HONOR AND REMEMBRANCE OF VETERANS. EFFECTIVE FOR ANY
TAX YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, AN
INDIVIDUAL  IN  ANY TAXABLE YEAR MAY ELECT TO CONTRIBUTE TO THE VETERANS
REMEMBRANCE AND CEMETERY MAINTENANCE AND OPERATION FUND.  SUCH  CONTRIB-
UTION  SHALL  BE  IN  ANY  WHOLE  DOLLAR AMOUNT AND SHALL NOT REDUCE THE
AMOUNT OF STATE TAX OWED BY  SUCH  INDIVIDUAL.  THE  COMMISSIONER  SHALL
INCLUDE  SPACE ON THE PERSONAL INCOME TAX RETURN TO ENABLE A TAXPAYER TO
MAKE SUCH CONTRIBUTION. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  ALL
REVENUES  COLLECTED  PURSUANT  TO  THIS SECTION SHALL BE CREDITED TO THE
VETERANS REMEMBRANCE AND CEMETERY MAINTENANCE  AND  OPERATION  FUND  AND
USED  ONLY FOR THOSE PURPOSES ENUMERATED IN SECTION NINETY-SEVEN-MMMM OF
THE STATE FINANCE LAW.
  S 1-a. The tax law is amended by adding a new section 209-H to read as
follows:
  S 209-H. GIFT FOR HONOR AND REMEMBRANCE OF VETERANS. EFFECTIVE FOR ANY
TAX YEAR COMMENCING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  THIRTEEN,
ANY TAXPAYER IN ANY TAXABLE YEAR MAY ELECT TO CONTRIBUTE TO THE VETERANS
REMEMBRANCE  AND CEMETERY MAINTENANCE AND OPERATION FUND.  SUCH CONTRIB-
UTION SHALL BE IN ANY WHOLE DOLLAR  AMOUNT  AND  SHALL  NOT  REDUCE  THE

S. 2607--D                         85                         A. 3007--D

AMOUNT  OF  STATE  TAX  OWED  BY  SUCH  TAXPAYER. THE COMMISSIONER SHALL
INCLUDE SPACE ON THE CORPORATE INCOME TAX RETURN TO ENABLE A TAXPAYER TO
MAKE SUCH CONTRIBUTION. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  ALL
REVENUES  COLLECTED  PURSUANT  TO  THIS SECTION SHALL BE CREDITED TO THE
VETERANS REMEMBRANCE AND CEMETERY MAINTENANCE  AND  OPERATION  FUND  AND
USED  ONLY FOR THOSE PURPOSES ENUMERATED IN SECTION NINETY-SEVEN-MMMM OF
THE STATE FINANCE LAW.
  S 2. The state finance law is amended by adding a new section  97-mmmm
to read as follows:
  S 97-MMMM. VETERANS REMEMBRANCE AND CEMETERY MAINTENANCE AND OPERATION
FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMIS-
SIONER OF TAXATION AND FINANCE AND THE COMPTROLLER, A SPECIAL FUND TO BE
KNOWN  AS  THE "VETERANS REMEMBRANCE AND CEMETERY MAINTENANCE AND OPERA-
TION FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION  AND  FINANCE,  PURSUANT  TO THE PROVISIONS OF SECTIONS TWO
HUNDRED-NINE-H AND SIX HUNDRED TWENTY-SEVEN-A OF THE TAX  LAW,  AND  ALL
OTHER  MONEYS  APPROPRIATED,  CREDITED,  OR TRANSFERRED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW.   NOTHING IN  THIS  SECTION  SHALL
PREVENT  THE  STATE  FROM  SOLICITING  AND  RECEIVING  GRANTS,  GIFTS OR
BEQUESTS FOR THE PURPOSES OF THE FUND AS DEFINED  IN  THIS  SECTION  AND
DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
  3.  ON  OR BEFORE THE FIRST DAY OF FEBRUARY OF EACH CALENDAR YEAR, THE
COMPTROLLER SHALL CERTIFY TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT  OF
THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE
COMMITTEE  AND  THE  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE
AMOUNT OF MONEY DEPOSITED IN THE VETERANS REMEMBRANCE AND CEMETERY MAIN-
TENANCE AND OPERATION FUND DURING THE PRECEDING  CALENDAR  YEAR  AS  THE
RESULT  OF  REVENUE  DERIVED PURSUANT TO SECTIONS TWO HUNDRED NINE-H AND
SIX HUNDRED TWENTY-SEVEN-A OF THE TAX LAW, AND FROM  ALL  GRANTS,  GIFTS
AND BEQUESTS.
  4.  MONEYS  OF  THE  FUND SHALL BE EXPENDED ONLY FOR THE CONSTRUCTION,
ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT,  OPERATION,  MAINTENANCE
AND  THE  PROVISION  OF  PERPETUAL CARE OF STATE VETERANS CEMETERIES. AS
USED IN  THIS  SECTION,  "THE  CONSTRUCTION,  ESTABLISHMENT,  EXPANSION,
IMPROVEMENT,  SUPPORT,  OPERATION,  MAINTENANCE  AND  THE  PROVISION  OF
PERPETUAL CARE OF STATE VETERANS CEMETERIES" SHALL INCLUDE, BUT  NOT  BE
LIMITED TO:
  (A)  THE  PURCHASE,  LEASING OR IMPROVEMENT OF LAND FOR THE PURPOSE OF
THE CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT, OPERA-
TION, MAINTENANCE AND THE PROVISION OF PERPETUAL CARE OF STATE  VETERANS
CEMETERIES;
  (B) THE PURCHASE, LEASING, CONSTRUCTION OR IMPROVEMENT OF BUILDINGS OR
INFRASTRUCTURE  FOR  THE  PURPOSE  OF  THE  CONSTRUCTION, ESTABLISHMENT,
EXPANSION,  IMPROVEMENT,  SUPPORT,  OPERATION,   MAINTENANCE   AND   THE
PROVISION OF PERPETUAL CARE OF STATE VETERANS CEMETERIES;
  (C)  THE  PURCHASE OR LEASING OF EQUIPMENT, TOOLS, BUILDING MATERIALS,
LANDSCAPING MATERIALS, MEMORIAL HEADSTONES OR MARKERS, MONUMENTS, COLUM-
BARIUM NICHES, MAUSOLEUMS, CRYPTS, FLAGS, FLAG POLES, OR RELATED  REMEM-
BRANCE OR CEMETERY ITEMS FOR THE CONSTRUCTION, ESTABLISHMENT, EXPANSION,
IMPROVEMENT,  SUPPORT,  OPERATION,  MAINTENANCE  AND  THE  PROVISION  OF
PERPETUAL CARE OF STATE VETERANS CEMETERIES;
  (D) THE PAYMENT OF SALARIES,  WAGES,  BENEFITS,  PROFESSIONAL  SERVICE
FEES,  CONTRACT  FEES,  ASSOCIATION FEES, OR OTHER CHARGES NECESSARY FOR
THE CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT, OPERA-

S. 2607--D                         86                         A. 3007--D

TION, MAINTENANCE AND THE PROVISION OF PERPETUAL CARE OF STATE  VETERANS
CEMETERIES; AND/OR
  (E)  THE  PURCHASE  OF  ANY  OTHER  ITEM  OR SERVICE NECESSARY FOR THE
CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT, OPERATION,
MAINTENANCE AND THE PROVISION OF PERPETUAL  CARE  OF  A  STATE  VETERANS
CEMETERY.
  5.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  DIRECTOR  OF
THE DIVISION OF VETERANS AFFAIRS.
  6.  MONEYS  IN  THE  VETERANS REMEMBRANCE AND CEMETERY MAINTENANCE AND
OPERATION FUND SHALL BE KEPT SEPARATE AND SHALL NOT BE  COMMINGLED  WITH
ANY  OTHER  MONEYS IN THE CUSTODY OF THE COMMISSIONER OF TAXATION AND/OR
THE COMPTROLLER.
  S 3. Subdivision 12 of section 353 of the executive  law  is  REPEALED
and a new subdivision 12 is added to read as follows:
  12.  (A) FOR THE PURPOSE OF PROVIDING FOR THE CONSTRUCTION, ESTABLISH-
MENT, EXPANSION, IMPROVEMENT, SUPPORT, OPERATION,  MAINTENANCE  AND  THE
PROVISION OF PERPETUAL CARE FOR STATE VETERANS CEMETERIES, TO SEEK FUND-
ING FROM, AND MAKE APPLICATION FOR FUNDING TO:
  (1)  THE  GOVERNMENT  OF  THE  UNITED  STATES, INCLUDING ANY AGENCY OR
PUBLIC AUTHORITY THEREOF;
  (2) THE GOVERNMENT OF THE STATE OF NEW YORK, INCLUDING ANY  AGENCY  OR
PUBLIC AUTHORITY THEREOF;
  (3)  ANY  POLITICAL  SUBDIVISION OF THE GOVERNMENT OF THE STATE OF NEW
YORK, INCLUDING ANY AGENCY OR PUBLIC AUTHORITY THEREOF; OR
  (4) ANY PRIVATE INDIVIDUAL, CORPORATION OR FOUNDATION;
  (B) PURSUANT TO SECTION THREE HUNDRED SIXTY-FIVE OF THIS  ARTICLE,  TO
PROVIDE  FOR  THE  CONSTRUCTION,  ESTABLISHMENT, EXPANSION, IMPROVEMENT,
SUPPORT, OPERATION, MAINTENANCE AND THE PROVISION OF PERPETUAL CARE  FOR
STATE VETERANS CEMETERIES;
  (C)  TO EXPEND MONEYS FROM THE VETERANS REMEMBRANCE AND CEMETERY MAIN-
TENANCE AND OPERATION FUND, ESTABLISHED PURSUANT TO SECTION  NINETY-SEV-
EN-MMMM OF THE STATE FINANCE LAW; AND
  (D) TO EVALUATE, MONITOR AND OTHERWISE OVERSEE THE OPERATION OF VETER-
ANS CEMETERIES IN THIS STATE.
  S 4. Subdivision 12-a of section 353 of the executive law is REPEALED.
  S  5. The executive law is amended by adding a new section 365 to read
as follows:
  S 365. NEW YORK STATE VETERANS CEMETERIES. 1. LEGISLATIVE INTENT.  THE
LEGISLATURE  FINDS AND DETERMINES THAT THE DEVOTED SERVICE AND SACRIFICE
OF VETERANS DESERVE IMPORTANT, UNIQUE AND  ETERNAL  RECOGNITION  BY  THE
STATE OF NEW YORK. THAT IT IS BY MEANS OF THE DEVOTED SERVICE AND SACRI-
FICE OF VETERANS THAT THE LIBERTY, FREEDOM AND PROSPERITY ENJOYED BY ALL
NEW YORKERS IS MAINTAINED AND PRESERVED.
  THE  LEGISLATURE  FURTHER  FINDS  AND  DETERMINES THAT TO PROVIDE THIS
IMPORTANT, UNIQUE AND ETERNAL RECOGNITION, THE STATE SHALL  ESTABLISH  A
PROGRAM  OF NEW YORK STATE VETERANS CEMETERIES IN NEW YORK. SUCH PROGRAM
SHALL PROVIDE FOR THE CONSTRUCTION, ESTABLISHMENT,  EXPANSION,  IMPROVE-
MENT,  SUPPORT,  OPERATION,  MAINTENANCE  AND THE PROVISION OF PERPETUAL
CARE FOR STATE VETERANS CEMETERIES IN THIS STATE, AND  THEREBY  FOR  THE
MEMORIALIZATION AND REMEMBRANCE OF INDIVIDUAL VETERANS AND THEIR SERVICE
TO THEIR COMMUNITY, STATE AND NATION.
  THE LEGISLATURE ADDITIONALLY FINDS AND DETERMINES THAT IT IS THEREFORE
NECESSARY  TO  PROVIDE  FOR THE CONSTRUCTION AND ESTABLISHMENT OF ONE OR
MORE NEW YORK STATE VETERANS CEMETERIES, AND THAT TO THEREAFTER, PROVIDE
FOR THE EXPANSION, IMPROVEMENT, SUPPORT, OPERATION, MAINTENANCE AND  THE

S. 2607--D                         87                         A. 3007--D

PROVISION  OF  PERPETUAL  CARE OF ALL SUCH CEMETERIES SO CONSTRUCTED AND
ESTABLISHED. THE LEGISLATURE ALSO FINDS AND DETERMINES THAT IT IS APPRO-
PRIATE TO HAVE THE RESPONSIBILITY FOR THE  CONSTRUCTION,  ESTABLISHMENT,
EXPANSION,   IMPROVEMENT,   SUPPORT,   OPERATION,  MAINTENANCE  AND  THE
PROVISION OF PERPETUAL CARE FOR VETERANS CEMETERIES IN THIS STATE, TO BE
UNDER THE OVERSIGHT AND DIRECTION OF  THE  STATE  DIVISION  OF  VETERANS
AFFAIRS,  AND ITS DIRECTOR, INDIVIDUALLY, AND AS CHAIR OF THE MANAGEMENT
BOARD, FOR EACH SUCH VETERANS CEMETERY SO CONSTRUCTED AND ESTABLISHED.
  2. THE ESTABLISHMENT OF THE FIRST NEW YORK  STATE  VETERANS  CEMETERY.
(A)  THE  DIVISION,  IN COOPERATION WITH THE UNITED STATES DEPARTMENT OF
VETERANS AFFAIRS, AND IN CONSULTATION WITH, AND UPON THE SUPPORT OF  THE
DEPARTMENT  OF  STATE  DIVISION  OF  CEMETERIES,  IS  HEREBY DIRECTED TO
CONDUCT AN INVESTIGATION AND STUDY ON THE ISSUE OF THE CONSTRUCTION  AND
ESTABLISHMENT OF THE FIRST NEW YORK STATE VETERANS CEMETERY. SUCH INVES-
TIGATION AND STUDY SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I)  POTENTIAL  SITE  LOCATIONS FOR SUCH CEMETERY, WITH FULL CONSIDER-
ATION AS TO THE NEEDS OF THE VETERANS POPULATION;
  (II) THE SIZE OF THE CEMETERY AND TYPES OF GRAVE SITES;
  (III) THE NUMBER OF ANNUAL INTERMENTS AT THE CEMETERY;
  (IV) TRANSPORTATION ACCESSIBILITY TO THE CEMETERY BY  VETERANS,  THEIR
FAMILIES AND THE GENERAL PUBLIC;
  (V) COSTS FOR CONSTRUCTION OF THE CEMETERY;
  (VI)  COSTS OF OPERATION OF THE CEMETERY, INCLUDING BUT NOT LIMITED TO
STAFFING COSTS TO MAINTAIN THE CEMETERY;
  (VII) SCALABILITY OF THE CEMETERY FOR FUTURE GROWTH AND EXPANSION;
  (VIII) POTENTIAL FOR FUNDING FOR THE CEMETERY FROM FEDERAL, LOCAL  AND
PRIVATE SOURCES;
  (IX) COST OF MAINTENANCE;
  (X) DATA ON THE POPULATION THAT WOULD BE SERVED BY THE SITE;
  (XI) THE AVERAGE AGE OF THE POPULATION IN THE AREA COVERED;
  (XII) THE MORTALITY RATE OF THE VETERAN POPULATION FOR THE AREA;
  (XIII) SURROUNDING LAND USE;
  (XIV) TOPOGRAPHY OF THE LAND;
  (XV) SITE CHARACTERISTICS;
  (XVI) COST OF LAND ACQUISITION;
  (XVII)  THE  LOCATION OF EXISTING CEMETERIES INCLUDING BUT NOT LIMITED
TO NATIONAL VETERANS' CEMETERIES,  COUNTY  VETERANS'  CEMETERIES,  CEME-
TERIES  THAT  HAVE  PLOTS DEVOTED TO VETERANS, NOT-FOR-PROFIT CEMETERIES
AND ANY OTHER BURIAL GROUND DEVOTED TO VETERANS AND ANY  OTHER  TYPE  OF
BURIAL  GROUNDS  DEVOTED  TO  THE  INTERMENT OF HUMAN REMAINS THAT IS OF
PUBLIC RECORD; AND
  (XVIII) SUCH OTHER AND FURTHER ITEMS AS THE DIRECTOR OF  THE  DIVISION
DEEMS NECESSARY FOR THE FIRST STATE VETERANS CEMETERY TO BE SUCCESSFUL.
  A REPORT OF THE INVESTIGATION AND STUDY CONCLUSIONS SHALL BE DELIVERED
TO  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
THE ASSEMBLY AND THE CHAIR OF THE SENATE COMMITTEE ON VETERANS, HOMELAND
SECURITY AND MILITARY AFFAIRS, AND THE CHAIR OF THE  ASSEMBLY  COMMITTEE
ON  VETERANS' AFFAIRS BY NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
DIVISION HAS COMMENCED THE CONDUCT OF THE INVESTIGATION AND STUDY.
  (B) PRIOR TO THE COMMENCEMENT OF THE INVESTIGATION AND STUDY  PURSUANT
TO  PARAGRAPH  (A)  OF THIS SUBDIVISION, THE DIRECTOR OF THE DIVISION OF
VETERANS' AFFAIRS, THE DIRECTOR OF  THE  DIVISION  OF  THE  BUDGET,  THE
DIRECTOR  OF  THE  DEPARTMENT OF STATE'S DIVISION OF CEMETERIES, AND THE
OFFICE OF THE STATE COMPTROLLER MUST CERTIFY TO THE GOVERNOR, THE TEMPO-
RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR  OF
THE  SENATE  FINANCE  COMMITTEE  AND  THE CHAIR OF THE ASSEMBLY WAYS AND

S. 2607--D                         88                         A. 3007--D

MEANS COMMITTEE THAT THE VETERANS REMEMBRANCE AND  CEMETERY  MAINTENANCE
AND OPERATION FUND, CREATED PURSUANT TO SECTION NINETY-SEVEN-MMMM OF THE
STATE  FINANCE  LAW,  CONTAINS  MONEYS  SUFFICIENT,  ADJUSTED TO REFLECT
PROJECTED  FUTURE  INFLATION, TO FUND THE OPERATION, MAINTENANCE AND THE
PROVISION OF PERPETUAL CARE OF A STATE VETERANS' CEMETERY FOR  A  PERIOD
OF  NOT  LESS  THAN  FIFTEEN  YEARS, PROVIDED THAT SUCH AMOUNT SHALL NOT
INCLUDE ANY AMOUNT THAT SHALL BE REIMBURSED OR CONTRIBUTED TO THE  CEME-
TERY  FROM  THE GOVERNMENT OF THE UNITED STATES OR ANY AMOUNT THAT WOULD
BE RECOVERABLE BY THE CEMETERY PURSUANT TO  A  CHARGE  OF  FEE  FOR  THE
PROVISION  OF A GRAVE SITE FOR A NON-VETERAN SPOUSE OR FAMILY MEMBER. IN
MAKING SUCH A CERTIFICATION, THE DIRECTOR OF THE DIVISION  OF  VETERANS'
AFFAIRS, THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE DIRECTOR OF THE
DEPARTMENT  OF  STATE'S  DIVISION  OF  CEMETERIES, AND THE OFFICE OF THE
STATE COMPTROLLER SHALL CONSIDER, BUT ARE NOT LIMITED TO, THE  FOLLOWING
FACTORS:
  (I)  PHYSICAL  ATTRIBUTES  OF  THE  VETERANS CEMETERY, INCLUDING SIZE,
LOCATION, AND TERRAIN;
  (II) MANAGEMENT AND  OPERATION,  INCLUDING  STAFFING  COSTS,  COST  OF
EQUIPMENT AND EQUIPMENT MAINTENANCE, AND SECURITY COSTS;
  (III)  RELEVANT  STATE AND FEDERAL REQUIREMENTS AND SPECIFICATIONS FOR
INTERMENT AND PERPETUAL CARE;
  (IV) ESTIMATES PROVIDED BY THE UNITED STATES  DEPARTMENT  OF  VETERANS
AFFAIRS;
  (V) ANY OTHER FISCAL COST, CHARGE OR ASSESSMENT THAT WOULD BE INCURRED
BY THE CEMETERY.
  (C) BY NO LATER THAN NINETY DAYS FOLLOWING THE ISSUANCE OF THE REPORT,
PURSUANT TO THE RULES AND REGULATIONS ISSUED UNDER PARAGRAPH (H) OF THIS
SUBDIVISION,  THE  DIRECTOR  SHALL  ISSUE,  ON BEHALF OF THE DIVISION, A
REQUEST FOR PROPOSALS FOR ANY LOCAL  GOVERNMENT  DESIRING  TO  HAVE  THE
FIRST  STATE VETERANS CEMETERY LOCATED WITHIN ITS POLITICAL SUBDIVISION.
SUCH REQUEST FOR PROPOSALS SHALL BE RETURNABLE TO  THE  DIVISION  BY  NO
LATER  THAN  SIXTY  DAYS  FOLLOWING  THE  ISSUANCE  OF  THE  REQUEST FOR
PROPOSALS.
  (D) NO LATER THAN SIXTY DAYS FOLLOWING THE DEADLINE FOR THE RETURN  OF
REQUESTS  FOR  PROPOSALS  PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION,
THE DIRECTOR, IN CONSULTATION WITH THE MANAGEMENT BOARD OF THE FIRST NEW
YORK STATE VETERANS CEMETERY, SHALL SELECT A SITE FOR THE FIRST NEW YORK
STATE VETERANS CEMETERY. IN SELECTING  SUCH  SITE,  THE  DIRECTOR  SHALL
CONSIDER:
  (I)  THE INVESTIGATION AND STUDY, AND THE REPORT PRODUCED BY THE SAME,
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION;
  (II) THE SUBMITTED RESPONSES TO  THE  REQUESTS  FOR  PROPOSALS  ISSUED
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION;
  (III)  THE  GUIDELINES  FOR  RECEIPT  OF  FEDERAL FUNDING SPECIFIED IN
SECTION 2408 OF TITLE 38 OF THE UNITED STATES CODE, PART 39 OF TITLE  38
OF THE CODE OF FEDERAL REGULATIONS, AND ANY OTHER RELEVANT FEDERAL STAT-
UTE OR REGULATION;
  (IV) THE POSSIBILITY OF FUNDING FROM PRIVATE INDIVIDUALS, CORPORATIONS
OR FOUNDATIONS; AND
  (V) ANY OTHER CONSIDERATION THAT WOULD FACILITATE THE SUCCESSFUL OPER-
ATION OF THE FIRST NEW YORK STATE VETERANS CEMETERY.
  (E)  NO  LATER  THAN  THIRTY  DAYS FOLLOWING THE SELECTION OF THE SITE
PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION, THE DIRECTOR, IN  CONSUL-
TATION  WITH  THE  MANAGEMENT BOARD OF THE FIRST NEW YORK STATE VETERANS
CEMETERY, SHALL COMMENCE THE APPLICATION PROCESS FOR  FUNDING  FROM  THE
GOVERNMENT  OF  THE UNITED STATES, IN ACCORDANCE WITH THE GRANT REQUIRE-

S. 2607--D                         89                         A. 3007--D

MENTS SPECIFIED IN SECTION 2408 OF TITLE 38 OF THE UNITED  STATES  CODE,
PART  39  OF  TITLE 38 OF THE CODE OF FEDERAL REGULATIONS, AND ANY OTHER
RELEVANT FEDERAL STATUTE OR REGULATION, FOR THE PURPOSE OF SEEKING FUNDS
TO  SUPPORT  THE  CONSTRUCTION,  ESTABLISHMENT,  EXPANSION, IMPROVEMENT,
SUPPORT, OPERATION, MAINTENANCE AND THE PROVISION OF PERPETUAL  CARE  OF
NEW  YORK  STATE'S FIRST VETERANS CEMETERY. SUCH GRANT APPLICATION SHALL
BE BASED ON A SITE SELECTED PURSUANT TO PARAGRAPH (D) OF  THIS  SUBDIVI-
SION, AND SHALL BE CONSISTENT WITH THE GUIDELINES FOR RECEIPT OF FEDERAL
FUNDING PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL LAW.
  (F)  A MANAGEMENT BOARD FOR THE FIRST NEW YORK STATE VETERANS CEMETERY
SHALL BE APPOINTED PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  (G) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE THE  DIVI-
SION  OF VETERANS' AFFAIRS TO COMMENCE AN INVESTIGATION AND STUDY PURSU-
ANT TO  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  ISSUING  A  REQUEST  FOR
PROPOSALS  PURSUANT  TO  PARAGRAPH  (C) OF THIS SUBDIVISION, SELECTING A
SITE FOR THE FIRST NEW YORK STATE VETERANS CEMETERY  PURSUANT  TO  PARA-
GRAPH (D) OF THIS SUBDIVISION, OR SUBMITTING ANY APPLICATION FOR FUNDING
FROM  THE  GOVERNMENT  OF THE UNITED STATES IN ACCORDANCE WITH THE GRANT
REQUIREMENTS SPECIFIED IN SECTION 2408 OF TITLE 38 OF THE UNITED  STATES
CODE,  PART 30 OF TITLE 38 OF THE CODE OF FEDERAL REGULATIONS, AND OTHER
RELEVANT FEDERAL STATUTES OR REGULATIONS, FOR  THE  PURPOSE  OF  SEEKING
FUNDS  TO  SUPPORT  THE CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVE-
MENT, SUPPORT, OPERATION, MAINTENANCE AND  THE  PROVISION  OF  PERPETUAL
CARE  OF  NEW YORK STATE'S FIRST VETERANS CEMETERY PURSUANT TO PARAGRAPH
(E) OF THIS SUBDIVISION UNTIL THE FUNDS IN THE VETERANS REMEMBRANCE  AND
CEMETERY  MAINTENANCE AND OPERATION FUND HAVE BEEN CERTIFIED PURSUANT TO
PARAGRAPH (B) OF THIS SUBDIVISION.
  (H) THE DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS GOVERNING:
  (I) THE GUIDELINES AND STANDARDS FOR THE CONSTRUCTION,  ESTABLISHMENT,
EXPANSION,   IMPROVEMENT,   SUPPORT,   OPERATION,  MAINTENANCE  AND  THE
PROVISION OF PERPETUAL CARE FOR A STATE VETERANS CEMETERY.  SUCH  GUIDE-
LINES SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (1) THE SIZE AND TERRAIN OF THE CEMETERY;
  (2)  THE  MANAGEMENT  AND OPERATION OF THE CEMETERY, INCLUDING BUT NOT
LIMITED TO:
  (A) HOURS OF OPERATION;
  (B) EMPLOYEES, EMPLOYEE RELATIONS, AND EMPLOYEE DUTIES;
  (C) THE CONDUCT AND PRACTICE OF EVENTS, CEREMONIES AND PROGRAMS;
  (D) THE FILING AND COMPLIANCE OF THE CEMETERY WITH STATE  AND  FEDERAL
REGULATORS; AND
  (E)  SUCH  OTHER  AND FURTHER OPERATIONAL AND MANAGEMENT PRACTICES AND
PROCEDURES AS THE DIRECTOR SHALL  DETERMINE  TO  BE  NECESSARY  FOR  THE
SUCCESSFUL OPERATION OF A STATE VETERANS CEMETERY.
  (3) THE LAYOUT OF PLOTS;
  (4)  THE  LOCATIONS  OF BUILDING AND INFRASTRUCTURE, INCLUDING BUT NOT
LIMITED TO:
  (A) ELECTRICAL LINES AND FACILITIES;
  (B) WATERLINES, IRRIGATION SYSTEMS, AND DRAINAGE FACILITIES;
  (C) TREES, FLOWERS AND OTHER PLANTINGS;
  (D) NON GRAVESITE MEMORIALS, GRAVESITE MEMORIALS,  MAUSOLEUMS,  COLUM-
BARIUM  NICHES,  HEADSTONES, GRAVE MARKERS, INDOOR INTERMENT FACILITIES,
COMMITTAL-SERVICE SHELTERS, SIGNAGE,  FLAG  POLES,  AND  OTHER  MEMORIAL
GATHERING SPACES OR INFRASTRUCTURE;
  (E) ROADWAYS, PEDESTRIAN PATHWAYS, PARKING SITES, CURBS AND CURB CUTS;
  (F) PONDS, LAKES AND OTHER WATER SITES;

S. 2607--D                         90                         A. 3007--D

  (G)  RETAINING WALLS, GATES, FENCES, SECURITY SYSTEMS OR OTHER DEVICES
FOR CEMETERY PROTECTION; AND
  (H)  ANY  OTHER  BUILDINGS, STRUCTURES OR INFRASTRUCTURE NECESSARY FOR
THE SAFE, EFFICIENT AND EFFECTIVE OPERATION OF THE CEMETERY;
  (5) THE QUALIFICATIONS FOR INTERMENT, CONSISTENT WITH  THE  PROVISIONS
OF STATE AND FEDERAL LAW AND ANY REQUIREMENTS PURSUANT TO THE RECEIPT OF
FEDERAL, STATE, LOCAL OR PRIVATE FUNDS;
  (6) THE LOCATION AND PLACEMENT OF INTERMENTS;
  (7)  CONSISTENT  WITH  THE PROVISIONS OF STATE AND FEDERAL LAW AND ANY
REQUIREMENTS PURSUANT TO THE RECEIPT OF FEDERAL, STATE, LOCAL OR PRIVATE
FUNDS, THE FINANCIAL MANAGEMENT  OF  THE  CEMETERY,  INCLUDING  BUT  NOT
LIMITED TO:
  (A)  THE PROCEDURES FOR THE PROTECTION AND IMPLEMENTATION OF THE CEME-
TERY'S ANNUAL BUDGET;
  (B) THE SEEKING, COLLECTING,  DEPOSIT  AND  EXPENDITURE  OF  OPERATING
FUNDS PURSUANT TO THE CEMETERY'S BUDGET;
  (C)  THE SEEKING, COLLECTING, DEPOSIT AND EXPENDITURE OF CAPITAL FUNDS
PURSUANT TO THE CEMETERY'S CAPITAL PLAN;
  (D) THE SEEKING, COLLECTING,  DEPOSIT  AND  EXPENDITURE  OF  EMERGENCY
FUNDS TO ADDRESS AN UNEXPECTED EVENT;
  (E)  THE  ASSESSMENT,  CHARGING,  COLLECTION  AND  DEPOSIT OF FEES AND
CHARGES;
  (F) THE MANAGEMENT OF CEMETERY FINANCES, BOTH CURRENT AND FUTURE, WITH
RESPECT TO INVESTMENTS; AND
  (G) SUCH OTHER AND FURTHER PROCEDURES AND  ACTIVITIES  CONCERNING  THE
FINANCIAL MANAGEMENT OF THE CEMETERY;
  (8)  THE  PROVISION  OF PERPETUAL CARE FOR THE CEMETERY, INCLUDING BUT
NOT LIMITED TO:
  (A) THE FREQUENCY, STANDARDS AND METHODS FOR  THE  BEAUTIFICATION  AND
MAINTENANCE  OF  GROUNDS,  MEMORIALS,  GRAVESITES, BUILDINGS, CEREMONIAL
SITES, OR OTHER LOCATIONS WITHIN, OR UPON THE CURTILAGE OF THE CEMETERY;
  (B) THE FREQUENCY, STANDARDS AND METHODS FOR THE PROVISION  OF  FLAGS,
PATRIOTIC  AND  MILITARY  SYMBOLS,  AND  OTHER  HONORARY  ITEMS, AT EACH
GRAVESITE AND THROUGHOUT THE CEMETERY; AND
  (C) SUCH OTHER AND FURTHER STANDARDS AS ARE NECESSARY  TO  ASSURE  THE
PROPER  PERPETUAL CARE OF THE CEMETERY IN A MANNER BEFITTING THE HIGHEST
LEVEL OF HONOR AND RESPECT DESERVING TO THOSE VETERANS AND  THEIR  FAMI-
LIES INTERRED IN THE CEMETERY;
  (9) GUIDELINES AND STANDARDS FOR THE PROCUREMENT OF LAND FOR THE CEME-
TERY  PROVIDING  THAT  THE STATE VETERANS CEMETERY, AND ALL THE PROPERTY
UPON WHICH IT RESIDES SHALL BE OWNED IN FEE SIMPLE ABSOLUTE BY THE STATE
OF NEW YORK;
  (10) GUIDELINES AND STANDARDS FOR THE PRACTICES AND PROCEDURES FOR THE
CONSTRUCTION AND ESTABLISHMENT OF A STATE VETERANS  CEMETERY,  INCLUDING
CONTRACTING  AND  PURCHASING  FOR  CONSTRUCTION  SERVICES,  PROFESSIONAL
SERVICES, LEGAL SERVICES, ARCHITECTURAL SERVICES,  CONSULTING  SERVICES,
AS  WELL  AS THE PROCUREMENT OF MATERIALS, ALL CONSISTENT WITH THE RELE-
VANT PROVISIONS OF FEDERAL, STATE AND LOCAL LAW, THE REGULATIONS PROMUL-
GATED THEREUNDER, AND THE REQUIREMENTS CONTAINED IN THE  GRANTS  AWARDED
OR  PURSUED  FROM THE FEDERAL GOVERNMENT, OR ANY SOURCE OF PRIVATE FUND-
ING;
  (11) GUIDELINES AND STANDARDS FOR THE PRACTICES AND PROCEDURES FOR THE
EXPANSION AND  IMPROVEMENT  OF  A  STATE  VETERANS  CEMETERY,  INCLUDING
CONTRACTING  AND  PURCHASING  FOR  CONSTRUCTION  SERVICES,  PROFESSIONAL
SERVICES, LEGAL SERVICES, ARCHITECTURAL SERVICES,  CONSULTING  SERVICES,
AS  WELL  AS THE PROCUREMENT OF MATERIALS, ALL CONSISTENT WITH THE RELE-

S. 2607--D                         91                         A. 3007--D

VANT PROVISIONS OF FEDERAL, STATE AND LOCAL LAW, THE REGULATIONS PROMUL-
GATED THEREUNDER, AND THE REQUIREMENTS CONTAINED IN THE  GRANTS  AWARDED
OR  PURSUED  FROM THE FEDERAL GOVERNMENT, OR ANY SOURCE OF PRIVATE FUND-
ING;
  (12)  ANY  OTHER  GUIDELINES  AND  STANDARDS THAT WOULD FACILITATE THE
SUCCESSFUL CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT,
OPERATION, MAINTENANCE AND THE PROVISION OF PERPETUAL CARE FOR THE STATE
VETERANS CEMETERY;
  (II) GUIDELINES AND STANDARDS FOR THE REQUEST FOR  PROPOSALS  FOR  ANY
LOCAL  GOVERNMENT  DESIRING  TO  HAVE  THE FIRST STATE VETERANS CEMETERY
LOCATED WITHIN ITS POLITICAL SUBDIVISION, PURSUANT TO PARAGRAPH  (B)  OF
THIS SUBDIVISION, INCLUDING, BUT NOT LIMITED TO:
  (1)  THE FORM, REQUIREMENTS AND STANDARDS REQUIRED FOR SUBMISSION OF A
RESPONSE TO THE REQUEST FOR PROPOSALS;
  (2) THE REQUIREMENT, IF THE DIRECTOR SO ELECTS, THAT A RESPONSE  SHALL
REQUIRE  THE LOCAL GOVERNMENT TO AGREE TO CONTRACT WITH THE STATE OF NEW
YORK THAT ALL COSTS FOR CONSTRUCTION, ESTABLISHMENT, EXPANSION, IMPROVE-
MENT, SUPPORT, OPERATION, MAINTENANCE AND  THE  PROVISION  OF  PERPETUAL
CARE  OF  THE VETERANS CEMETERY SHALL BE THE SOLE RESPONSIBILITY OF, AND
PAID BY THE LOCAL GOVERNMENT, AND THAT TO THE EXTENT SUCH COSTS ARE  NOT
PAID  OR REIMBURSED BY THE GOVERNMENT OF THE UNITED STATES, OR A PRIVATE
INDIVIDUAL, CORPORATION OR FOUNDATION;
  (3) THE REQUIREMENT THAT THE LOCAL GOVERNMENT  WILL  COMPLY  WITH  ALL
STATE  AND FEDERAL STATUTES AND REGULATIONS CONCERNING THE CONSTRUCTION,
ESTABLISHMENT, EXPANSION, IMPROVEMENT, SUPPORT,  OPERATION,  MAINTENANCE
AND  THE PROVISION OF PERPETUAL CARE OF THE STATE VETERANS CEMETERY, AND
SHALL SATISFY ANY AND ALL APPLICABLE STATE  AND  FEDERAL  STANDARDS  AND
REQUIREMENTS FOR THE PERPETUAL CARE OF THE STATE VETERANS CEMETERY;
  (4)  THAT THE STATE VETERANS CEMETERY, AND ALL THE PROPERTY UPON WHICH
IT RESIDES SHALL BE OWNED IN FEE SIMPLE ABSOLUTE BY  THE  STATE  OF  NEW
YORK;
  (5)  THAT ALL LANDS UPON WHICH SUCH CEMETERY IS CONSTRUCTED AND ESTAB-
LISHED SHALL BE USED SOLELY FOR STATE VETERANS  CEMETERY  PURPOSES,  AND
FOR  THE  PURPOSE OF PROVIDING THE HONOR AND REMEMBRANCE OF VETERANS AND
THEIR SERVICE THROUGH CEREMONIES AND PROGRAMS;
  (6) THE REQUIREMENT THAT A RESPONSE SHALL REQUIRE THE LOCAL GOVERNMENT
TO AGREE TO AUTHORIZE THE STATE OF NEW YORK, IN THE EVENT THAT THE LOCAL
GOVERNMENT FAILS TO PERFORM ITS OBLIGATIONS UNDER THE CONTRACT WITH  THE
STATE  OF NEW YORK, THAT THE STATE DIRECTOR OF THE DIVISION OF VETERANS'
AFFAIRS SHALL CERTIFY TO THE  COMPTROLLER  ANY  UNPAID  AMOUNTS  OR  ANY
AMOUNTS  NECESSARY  FOR  THE  STATE  TO ASSUME THE OBLIGATIONS WHICH THE
LOCAL GOVERNMENT FAILED TO PERFORM, AND THE COMPTROLLER  SHALL,  TO  THE
EXTENT  NOT  OTHERWISE  PROHIBITED BY LAW, WITHHOLD SUCH AMOUNT FROM ANY
STATE AID OR OTHER AMOUNT PAYABLE  TO  SUCH  LOCAL  GOVERNMENT;  TO  THE
EXTENT THAT SUFFICIENT FUNDS ARE NOT AVAILABLE FOR SUCH WITHHOLDING, THE
STATE  MAY  PURSUE  ANY  AND ALL AVAILABLE LEGAL REMEDIES TO ENFORCE THE
TERMS OF THE CONTRACT ENTERED INTO BETWEEN THE STATE AND A LOCAL GOVERN-
MENT PURSUANT TO THIS SUBDIVISION; AND
  (7) SUCH OTHER AND FURTHER  REQUIREMENTS  AS  THE  DIRECTOR  MAY  DEEM
PRUDENT  IN THE FACILITATION OF THE SUCCESSFUL SITING AND OPERATION OF A
STATE VETERANS CEMETERY IN THE JURISDICTION OF THE LOCAL GOVERNMENT; AND
  (III) SUCH OTHER AND FURTHER GUIDELINES AND STANDARDS AS ARE NECESSARY
FOR THE SUCCESSFUL CONSTRUCTION, ESTABLISHMENT, EXPANSION,  IMPROVEMENT,
SUPPORT,  OPERATION, MAINTENANCE AND THE PROVISION OF PERPETUAL CARE FOR
A STATE VETERANS CEMETERY;

S. 2607--D                         92                         A. 3007--D

  (I) UPON THE APPROVAL OF THE APPLICATION FOR FUNDING FROM THE  GOVERN-
MENT OF THE UNITED STATES, MADE PURSUANT TO PARAGRAPH (E) OF THIS SUBDI-
VISION, THE DIRECTOR, UPON CONSULTATION WITH THE MANAGEMENT BOARD, SHALL
COMMENCE  THE  PROCESS  OF  CONSTRUCTION  AND ESTABLISHMENT OF THE FIRST
STATE VETERANS CEMETERY. SUCH PROCESS SHALL BE CONSISTENT WITH THE RELE-
VANT PROVISIONS OF LOCAL, STATE AND FEDERAL LAW, AND THE RULES AND REGU-
LATIONS ESTABLISHED PURSUANT TO PARAGRAPH (H) OF THIS SUBDIVISION.
  3.  MANAGEMENT  BOARDS  OF NEW YORK STATE VETERANS CEMETERIES. (A) FOR
EACH NEW YORK STATE VETERANS CEMETERY THERE SHALL BE A MANAGEMENT BOARD.
EACH SUCH MANAGEMENT BOARD SHALL CONSIST OF NINE MEMBERS, INCLUDING  THE
DIRECTOR  OF  THE  DIVISION  WHO SHALL SERVE AS CHAIR, AND FOUR MEMBERS,
APPOINTED BY THE GOVERNOR. OF SUCH FOUR  MEMBERS,  NOT  FEWER  THAN  TWO
SHALL  BE  A  VETERAN OF THE UNITED STATES ARMY, THE UNITED STATES NAVY,
THE UNITED STATES AIR FORCE, THE UNITED STATES  MARINES,  THE  NEW  YORK
ARMY NATIONAL GUARD, THE NEW YORK AIR NATIONAL GUARD, THE NEW YORK NAVAL
MILITIA, OR A MEMBER WHO HAS SERVED IN A THEATER OF COMBAT OPERATIONS OF
THE UNITED STATES COAST GUARD OR THE UNITED STATES MERCHANT MARINE.  TWO
MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, AND
TWO MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE STATE ASSEMBLY.  AT
LEAST  ONE  OF  THE  MEMBERS APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE AND AT LEAST ONE OF THE MEMBERS APPOINTED BY THE SPEAKER  OF  THE
ASSEMBLY SHALL BE A VETERAN OF THE UNITED STATES ARMY, THE UNITED STATES
NAVY,  THE  UNITED  STATES AIR FORCE, THE UNITED STATES MARINES, THE NEW
YORK ARMY NATIONAL GUARD, THE NEW YORK AIR NATIONAL GUARD, THE NEW  YORK
NAVAL  MILITIA,  OR A MEMBER WHO HAS SERVED IN A THEATER OF COMBAT OPER-
ATIONS OF THE UNITED STATES COAST GUARD OR THE  UNITED  STATES  MERCHANT
MARINE. NO MEMBER SHALL RECEIVE ANY COMPENSATION FOR HIS OR HER SERVICE,
BUT  MEMBERS  WHO  ARE  NOT  STATE OFFICIALS MAY BE REIMBURSED FOR THEIR
ACTUAL AND NECESSARY EXPENSES, INCLUDING  TRAVEL  EXPENSES  INCURRED  IN
PERFORMANCE  OF  THEIR DUTIES. THE MANAGEMENT BOARD MAY CONSULT WITH ANY
FEDERAL, STATE OR  LOCAL  ENTITY  FOR  THE  PURPOSES  OF  ADVANCING  ITS
PURPOSES, MISSION AND DUTIES.
  (B)  THE MANAGEMENT BOARD SHALL ADVISE, BY MAJORITY VOTE, THE DIRECTOR
ON  ISSUES  CONCERNING  THE  CONSTRUCTION,   ESTABLISHMENT,   EXPANSION,
IMPROVEMENT,  SUPPORT,  OPERATION,  MAINTENANCE  AND  THE  PROVISION  OF
PERPETUAL CARE FOR THE VETERANS CEMETERY, INCLUDING BUT NOT  LIMITED  TO
ISSUES  OF  FINANCIAL  CONCERN,  EMPLOYMENT  RELATIONS, CEMETERY POLICY,
CEMETERY EVENTS AND PROGRAMS, AND SUCH OTHER AND FURTHER ISSUES  AS  THE
BOARD AND DIRECTOR SHALL DEEM IMPORTANT.
  4.  ADDITIONAL STATE VETERANS CEMETERIES. (A) NOT LATER THAN TEN YEARS
AFTER THE CONSTRUCTION AND ESTABLISHMENT OF THE  FIRST  NEW  YORK  STATE
VETERANS  CEMETERY,  AND  EVERY  TEN  YEARS THEREAFTER, THE DIVISION, IN
COOPERATION WITH THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS, SHALL
CONDUCT AN INVESTIGATION AND STUDY ON THE ISSUE OF THE CONSTRUCTION  AND
ESTABLISHMENT  OF  ADDITIONAL  NEW  YORK STATE VETERANS CEMETERIES. SUCH
INVESTIGATION AND STUDY SHALL CONSIDER, BUT NOT BE LIMITED TO, THE STUDY
PARAMETERS ESTABLISHED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION  TWO  OF
THIS  SECTION.  A  REPORT  OF THE INVESTIGATION AND STUDY REQUIRED TO BE
CONDUCTED PURSUANT TO THIS SUBDIVISION SHALL BE DELIVERED TO THE  GOVER-
NOR,  THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE CHAIR OF THE SENATE COMMITTEE ON VETERANS, HOMELAND SECURITY AND
MILITARY AFFAIRS, AND THE CHAIR OF THE ASSEMBLY COMMITTEE  ON  VETERANS'
AFFAIRS,  BY  NO LATER THAN NINETY DAYS AFTER THE DIVISION HAS COMMENCED
THE CONDUCT OF THE INVESTIGATION AND STUDY;
  (B) THE REPORT OF THE INVESTIGATION AND STUDY REQUIRED TO BE CONDUCTED
PURSUANT TO THIS SUBDIVISION SHALL PROVIDE A DETERMINATION BY THE DIREC-

S. 2607--D                         93                         A. 3007--D

TOR AS TO WHETHER THE STATE SHOULD CONSTRUCT AND ESTABLISH ONE  OR  MORE
ADDITIONAL  VETERANS CEMETERIES, AND SHALL STATE THE REASONING AND BASIS
FOR SUCH DETERMINATION; AND
  (C)  THE  DIVISION MAY, AT THE DISCRETION OF THE DIRECTOR, AT ANY TIME
AFTER FIVE YEARS FROM THE COMPLETION OF CONSTRUCTION OF THE MOST RECENT-
LY CONSTRUCTED AND ESTABLISHED STATE VETERANS CEMETERY,  IN  COOPERATION
WITH THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS, CONDUCT AN INVES-
TIGATION AND STUDY ON THE ISSUE OF THE CONSTRUCTION AND ESTABLISHMENT OF
ADDITIONAL  NEW YORK STATE VETERANS CEMETERIES. A REPORT OF THE INVESTI-
GATION AND STUDY REQUIRED TO BE CONDUCTED  SHALL  BE  DELIVERED  TO  THE
GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE
ASSEMBLY AND THE CHAIR OF THE SENATE  COMMITTEE  ON  VETERANS,  HOMELAND
SECURITY  AND  MILITARY AFFAIRS, AND THE CHAIR OF THE ASSEMBLY COMMITTEE
ON VETERANS' AFFAIRS, BY NO LATER THAN NINETY DAYS  AFTER  THE  DIVISION
HAS COMMENCED THE CONDUCT OF THE INVESTIGATION AND STUDY.
  (D) IF THE DIRECTOR, PURSUANT TO THE INVESTIGATION AND STUDY CONDUCTED
PURSUANT  TO  THIS  SUBDIVISION, DETERMINES THAT THERE SHALL BE AN ADDI-
TIONAL STATE VETERANS CEMETERY IN NEW YORK  STATE,  THE  DIRECTOR  SHALL
PROVIDE  FOR  THE  CONSTRUCTION  AND  ESTABLISHMENT OF SUCH NEW VETERANS
CEMETERY  PURSUANT  TO  THE  SAME  GUIDELINES  AND  STANDARDS  FOR   THE
CONSTRUCTION  AND  ESTABLISHMENT  OF  THE  FIRST STATE VETERANS CEMETERY
UNDER THIS SECTION.
  5. EXPANSION AND IMPROVEMENT OF EXISTING  STATE  VETERANS  CEMETERIES.
THE  DIRECTOR,  IN  CONSULTATION  WITH  THE  MANAGEMENT BOARD OF A STATE
VETERANS CEMETERY, MAY PROVIDE FOR THE EXPANSION AND/OR  IMPROVEMENT  OF
THE  CEMETERY.  SUCH  EXPANSION  AND  IMPROVEMENT  SHALL BE CONDUCTED IN
ACCORDANCE WITH THE RULES AND REGULATIONS OF THE  DIVISION  UNDER  PARA-
GRAPH (H) OF SUBDIVISION TWO OF THIS SECTION.
  S 6. This act shall take effect immediately.

                                 PART X

  Section  1. Section 2 of the public service law is amended by adding a
new subdivision 14 to read as follows:
  14. THE TERM "COMBINATION GAS AND ELECTRIC CORPORATION," WHEN USED  IN
SECTIONS  TWENTY-FIVE-A,  SIXTY-FIVE  AND  SIXTY-SIX  OF  THIS  CHAPTER,
INCLUDES ANY GAS CORPORATION OPERATING IN NEW YORK UNDER  COMMON  OWNER-
SHIP  WITH AN ELECTRIC CORPORATION OPERATING IN NEW YORK OR ANY ELECTRIC
CORPORATION OPERATING IN NEW YORK UNDER  COMMON  OWNERSHIP  WITH  A  GAS
CORPORATION  OPERATING  IN  NEW  YORK,  OR  ANY SUCCESSOR OF EITHER SUCH
CORPORATION; PROVIDED, HOWEVER, THAT SUCH TERM SHALL NOT INCLUDE MUNICI-
PALLY-OWNED UTILITIES, AND SHALL NOT INCLUDE ANY  GENERATING  FACILITIES
OWNED  OR OPERATED BY EITHER SUCH CORPORATION OR ANY COMMON OWNER THERE-
OF, OR ANY SUBSIDIARY OF SUCH COMMON OWNER.
  S 2. The public service law is amended by adding a new section 25-a to
read as follows:
  S 25-A. COMBINATION  GAS  AND  ELECTRIC  CORPORATIONS;  ADMINISTRATIVE
SANCTIONS;  RECOVERY  OF PENALTIES. NOTWITHSTANDING SECTIONS TWENTY-FOUR
AND TWENTY-FIVE OF THIS ARTICLE: 1. EVERY COMBINATION GAS  AND  ELECTRIC
CORPORATION  AND THE OFFICERS THEREOF SHALL ADHERE TO EVERY PROVISION OF
THIS CHAPTER AND EVERY ORDER OR REGULATION ADOPTED  UNDER  AUTHORITY  OF
THIS CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE.
  2.  (A)  THE  COMMISSION  SHALL  HAVE  THE AUTHORITY TO ASSESS A CIVIL
PENALTY AGAINST A COMBINATION GAS AND ELECTRIC CORPORATION AND THE OFFI-
CERS THEREOF SUBJECT TO THE  JURISDICTION,  SUPERVISION,  OR  REGULATION
PURSUANT  TO  THIS CHAPTER IN AN AMOUNT AS SET FORTH IN THIS SECTION. IN

S. 2607--D                         94                         A. 3007--D

DETERMINING THE AMOUNT OF ANY PENALTY TO BE ASSESSED  PURSUANT  TO  THIS
SECTION,  THE  COMMISSION  SHALL  CONSIDER:  (I)  THE SERIOUSNESS OF THE
VIOLATION FOR WHICH A PENALTY IS SOUGHT; (II) THE NATURE AND  EXTENT  OF
ANY  PREVIOUS  VIOLATIONS FOR WHICH PENALTIES HAVE BEEN ASSESSED AGAINST
THE CORPORATION OR OFFICER; (III) WHETHER THERE  WAS  KNOWLEDGE  OF  THE
VIOLATION;  (IV)  THE  GROSS REVENUES AND FINANCIAL STATUS OF THE CORPO-
RATION; AND (V) SUCH OTHER FACTORS AS THE COMMISSION MAY DEEM  APPROPRI-
ATE AND RELEVANT. THE REMEDIES PROVIDED BY THIS SUBDIVISION ARE IN ADDI-
TION TO ANY OTHER REMEDIES PROVIDED IN LAW.
  (B)  WHENEVER  THE COMMISSION HAS REASON TO BELIEVE THAT A COMBINATION
GAS AND ELECTRIC CORPORATION OR SUCH OFFICERS THEREOF SHOULD BE  SUBJECT
TO  IMPOSITION  OF  A CIVIL PENALTY AS SET FORTH IN THIS SUBDIVISION, IT
SHALL NOTIFY SUCH CORPORATION OR OFFICER. SUCH NOTICE SHALL INCLUDE, BUT
SHALL NOT BE LIMITED TO:  (I) THE DATE AND A BRIEF  DESCRIPTION  OF  THE
FACTS AND NATURE OF EACH ACT OR FAILURE TO ACT FOR WHICH SUCH PENALTY IS
PROPOSED;  (II)  A  LIST  OF  EACH STATUTE, REGULATION OR ORDER THAT THE
COMMISSION ALLEGES HAS BEEN VIOLATED;  AND  (III)  THE  AMOUNT  OF  EACH
PENALTY THAT THE COMMISSION PROPOSES TO ASSESS.
  (C)  WHENEVER  THE COMMISSION HAS REASON TO BELIEVE THAT A COMBINATION
GAS AND ELECTRIC CORPORATION OR SUCH OFFICERS THEREOF SHOULD BE  SUBJECT
TO  IMPOSITION  OF  A  CIVIL  PENALTY  OR PENALTIES AS SET FORTH IN THIS
SUBDIVISION, THE COMMISSION SHALL HOLD A HEARING TO DEMONSTRATE WHY  THE
PROPOSED  PENALTY  OR PENALTIES SHOULD BE ASSESSED AGAINST SUCH COMBINA-
TION GAS AND ELECTRIC CORPORATION OR SUCH OFFICERS.
  3. ANY COMBINATION GAS AND  ELECTRIC  CORPORATION  DETERMINED  BY  THE
COMMISSION  TO HAVE FAILED TO REASONABLY COMPLY AS SHOWN BY A PREPONDER-
ANCE OF THE EVIDENCE WITH A PROVISION OF THIS CHAPTER, REGULATION OR  AN
ORDER  ADOPTED UNDER AUTHORITY OF THIS CHAPTER SO LONG AS THE SAME SHALL
BE IN FORCE SHALL FORFEIT A SUM NOT EXCEEDING THE GREATER OF ONE HUNDRED
THOUSAND DOLLARS OR TWO ONE-HUNDREDTHS OF  ONE  PERCENT  OF  THE  ANNUAL
INTRASTATE  GROSS  OPERATING  REVENUE  OF THE CORPORATION, NOT INCLUDING
TAXES PAID TO AND REVENUES COLLECTED ON BEHALF OF  GOVERNMENT  ENTITIES,
CONSTITUTING A CIVIL PENALTY FOR EACH AND EVERY OFFENSE AND, IN THE CASE
OF  A  CONTINUING  VIOLATION,  EACH  DAY  SHALL BE DEEMED A SEPARATE AND
DISTINCT OFFENSE.
  4.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  THREE  OF  THIS
SECTION, ANY SUCH COMBINATION GAS AND ELECTRIC CORPORATION DETERMINED BY
THE  COMMISSION  TO HAVE FAILED TO REASONABLY COMPLY WITH A PROVISION OF
THIS CHAPTER, OR AN ORDER OR REGULATION ADOPTED UNDER THE  AUTHORITY  OF
THIS  CHAPTER  SPECIFICALLY  FOR  THE  PROTECTION  OF  HUMAN  SAFETY  OR
PREVENTION OF SIGNIFICANT DAMAGE TO REAL PROPERTY,  INCLUDING,  BUT  NOT
LIMITED TO, THE COMMISSION'S CODE OF GAS SAFETY REGULATIONS SHALL, IF IT
IS  DETERMINED BY THE COMMISSION BY A PREPONDERANCE OF THE EVIDENCE THAT
SUCH SAFETY VIOLATION CAUSED OR CONSTITUTED  A  CONTRIBUTING  FACTOR  IN
BRINGING  ABOUT:   (A) A DEATH OR PERSONAL INJURY; OR (B) DAMAGE TO REAL
PROPERTY IN EXCESS OF FIFTY THOUSAND  DOLLARS,  FORFEIT  A  SUM  NOT  TO
EXCEED THE GREATER OF:
  (I)  TWO HUNDRED FIFTY THOUSAND DOLLARS OR THREE ONE-HUNDREDTHS OF ONE
PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF  THE  CORPO-
RATION,  NOT INCLUDING TAXES PAID TO AND REVENUES COLLECTED ON BEHALF OF
GOVERNMENT ENTITIES, WHICHEVER IS GREATER, CONSTITUTING A CIVIL  PENALTY
FOR  EACH  SEPARATE  AND  DISTINCT  OFFENSE; PROVIDED, HOWEVER, THAT FOR
PURPOSES OF THIS PARAGRAPH, EACH DAY OF A CONTINUING VIOLATION SHALL NOT
BE DEEMED A SEPARATE AND DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTIN-
UING VIOLATION, AS WELL AS EVERY DISTINCT VIOLATION, SHALL BE  SIMILARLY

S. 2607--D                         95                         A. 3007--D

TREATED  AS  A  SEPARATE AND DISTINCT OFFENSE FOR PURPOSES OF THIS PARA-
GRAPH; OR
  (II)  THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE WITH SUBDIVISION
THREE OF THIS SECTION.
  5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OR FOUR OF THIS
SECTION, A COMBINATION GAS AND ELECTRIC CORPORATION  DETERMINED  BY  THE
COMMISSION TO HAVE FAILED TO REASONABLY COMPLY BY A PREPONDERANCE OF THE
EVIDENCE  WITH  A  PROVISION  OF THIS CHAPTER, OR AN ORDER OR REGULATION
ADOPTED UNDER AUTHORITY OF THIS CHAPTER, DESIGNED TO PROTECT THE OVERALL
RELIABILITY AND CONTINUITY OF ELECTRIC SERVICE, INCLUDING BUT NOT LIMIT-
ED TO THE RESTORATION OF ELECTRIC SERVICE FOLLOWING A MAJOR OUTAGE EVENT
OR EMERGENCY, SHALL FORFEIT A SUM NOT TO EXCEED THE GREATER OF:
  (A) FIVE HUNDRED  THOUSAND  DOLLARS  OR  FOUR  ONE-HUNDREDTHS  OF  ONE
PERCENT  OF  THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE CORPO-
RATION, NOT INCLUDING TAXES PAID TO AND REVENUES COLLECTED ON BEHALF  OF
GOVERNMENT  ENTITIES, WHICHEVER IS GREATER, CONSTITUTING A CIVIL PENALTY
FOR EACH SEPARATE AND DISTINCT  OFFENSE;  PROVIDED,  HOWEVER,  THAT  FOR
PURPOSES  OF THIS PARAGRAPH EACH DAY OF A CONTINUING VIOLATION SHALL NOT
BE DEEMED A SEPARATE AND DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTIN-
UING VIOLATION, AS WELL AS EVERY DISTINCT VIOLATION SHALL  BE  SIMILARLY
TREATED  AS  A  SEPARATE AND DISTINCT OFFENSE FOR PURPOSES OF THIS PARA-
GRAPH; OR
  (B) THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE  WITH  SUBDIVISION
THREE OF THIS SECTION.
  6.  ANY OFFICER OF ANY COMBINATION GAS AND ELECTRIC CORPORATION DETER-
MINED BY THE COMMISSION TO HAVE VIOLATED THE PROVISIONS  OF  SUBDIVISION
THREE,  FOUR,  OR  FIVE  OF  THIS  SECTION, AND WHO KNOWINGLY VIOLATES A
PROVISION OF THIS CHAPTER, REGULATION OR AN ORDER ADOPTED UNDER AUTHORI-
TY OF THIS CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE SHALL FORFEIT A
SUM NOT TO EXCEED ONE HUNDRED  THOUSAND  DOLLARS  CONSTITUTING  A  CIVIL
PENALTY  FOR  EACH  AND  EVERY  OFFENSE AND, IN THE CASE OF A CONTINUING
VIOLATION, EACH DAY SHALL BE DEEMED A SEPARATE AND DISTINCT OFFENSE.
  7. ANY SUCH ASSESSMENT MAY  BE  COMPROMISED  OR  DISCONTINUED  BY  THE
COMMISSION. ALL MONEYS RECOVERED PURSUANT TO THIS SECTION, TOGETHER WITH
THE  COSTS  THEREOF,  SHALL  BE  REMITTED TO, OR FOR THE BENEFIT OF, THE
RATEPAYERS IN A MANNER TO BE DETERMINED BY THE COMMISSION.
  8. UPON A FAILURE BY A COMBINATION GAS  AND  ELECTRIC  CORPORATION  OR
OFFICER TO REMIT ANY PENALTY ASSESSED BY THE COMMISSION PURSUANT TO THIS
SECTION, THE COMMISSION, THROUGH ITS COUNSEL, MAY INSTITUTE AN ACTION OR
SPECIAL PROCEEDING TO COLLECT THE PENALTY IN A COURT OF COMPETENT JURIS-
DICTION.
  9.  ANY  PAYMENT MADE BY A COMBINATION GAS AND ELECTRIC CORPORATION OR
THE OFFICERS THEREOF AS A RESULT OF AN ASSESSMENT AS  PROVIDED  IN  THIS
SECTION,  AND  THE  COST  OF LITIGATION AND INVESTIGATION RELATED TO ANY
SUCH ASSESSMENT, SHALL NOT BE RECOVERABLE FROM RATEPAYERS.
  10. IN CONSTRUING AND ENFORCING THE PROVISIONS OF THIS CHAPTER  RELAT-
ING TO PENALTIES, THE ACT OF ANY DIRECTOR, OFFICER, AGENT OR EMPLOYEE OF
A  COMBINED  GAS AND ELECTRIC CORPORATION ACTING WITHIN THE SCOPE OF HIS
OR HER OFFICIAL DUTIES OR EMPLOYMENT SHALL BE DEEMED TO BE  THE  ACT  OF
SUCH CORPORATION.
  11. IT SHALL BE A VIOLATION OF THIS CHAPTER SHOULD A DIRECTOR, OFFICER
OR  EMPLOYEE  OF A PUBLIC UTILITY COMPANY, CORPORATION, PERSON ACTING IN
HIS OR HER OFFICIAL DUTIES OR EMPLOYMENT, OR AN AGENT ACTING  ON  BEHALF
OF  AN  EMPLOYER  TAKE  RETALIATORY  PERSONNEL ACTION SUCH AS DISCHARGE,
SUSPENSION, DEMOTION, PENALIZATION OR DISCRIMINATION AGAINST AN EMPLOYEE
FOR REPORTING A VIOLATION OF A PROVISION OF THIS CHAPTER OF AN ORDER  OR

S. 2607--D                         96                         A. 3007--D

REGULATION  ADOPTED  UNDER THE AUTHORITY OF THIS CHAPTER, INCLUDING, BUT
NOT LIMITED TO, THOSE GOVERNING SAFE AND ADEQUATE SERVICE, PROTECTION OF
HUMAN SAFETY OR PREVENTION  OF  SIGNIFICANT  DAMAGE  TO  REAL  PROPERTY,
INCLUDING,  BUT  NOT  LIMITED  TO,  THE COMMISSION'S CODE OF GAS SAFETY.
NOTHING IN THIS SUBDIVISION SHALL BE  DEEMED  TO  DIMINISH  THE  RIGHTS,
PRIVILEGES  OR  REMEDIES  OF  ANY  EMPLOYEE UNDER ANY OTHER LAW OR REGU-
LATION, INCLUDING BUT NOT LIMITED TO ARTICLE TWENTY-C OF THE  LABOR  LAW
AND  SECTION  SEVENTY-FIVE-B  OF  THE  CIVIL  SERVICE  LAW, OR UNDER ANY
COLLECTIVE BARGAINING AGREEMENT OR EMPLOYMENT CONTRACT.
  S 3. Section 65 of the public service law is amended by adding two new
subdivisions 14 and 15 to read as follows:
  14. IN CONJUNCTION WITH A MANAGEMENT AND OPERATIONS  AUDIT  UNDERTAKEN
PURSUANT TO SUBDIVISION NINETEEN OF SECTION SIXTY-SIX OF THIS ARTICLE OR
UPON ITS OWN MOTION, THE COMMISSION SHALL REVIEW THE CAPABILITY, INCLUD-
ING  BUT  NOT LIMITED TO, THE CAPABILITY TO IMPLEMENT EMERGENCY RESPONSE
PLANS AND RESTORATION, OF EACH ELECTRIC  CORPORATION  TO  PROVIDE  SAFE,
ADEQUATE,  AND  RELIABLE  SERVICE.    UPON GOOD CAUSE SHOWN, AND AFTER A
HEARING IN ACCORDANCE WITH THE COMMISSION'S RULES AND  REGULATIONS,  THE
COMMISSION  MAY  DIRECT  SUCH  CORPORATION TO COMPLY WITH ADDITIONAL AND
MORE STRINGENT TERMS AND CONDITIONS OF SERVICE THAN EXISTED PRIOR TO THE
COMMENCEMENT OF THE MANAGEMENT AND OPERATIONS AUDIT, AND MAY,  IN  ADDI-
TION, ASSESS THE CONTINUED OPERATION OF SUCH CORPORATION AS THE PROVIDER
OF  ELECTRIC SERVICE IN ITS SERVICE TERRITORY AND PROPOSE, AND ACT UPON,
SUCH MEASURES AS ARE NECESSARY TO  ENSURE  SAFE  AND  ADEQUATE  SERVICE;
PROVIDED,  HOWEVER,  THAT NOTHING IN THIS SUBDIVISION LIMITS THE COMMIS-
SION'S AUTHORITY TO UNDERTAKE THE ACTIONS SET FORTH PURSUANT TO  SECTION
TWENTY-FOUR, TWENTY-FIVE OR TWENTY-FIVE-A OF THIS CHAPTER.
  15.  THE  CHIEF EXECUTIVE OFFICER OF EACH COMBINATION GAS AND ELECTRIC
CORPORATION SHALL CERTIFY TO THE COMMISSION ON OR BEFORE MARCH FIFTEENTH
OF EACH YEAR THAT SUCH CORPORATION HAS INTERNAL CONTROLS,  POLICIES  AND
PROCEDURES  DESIGNED  TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF THIS
CHAPTER AND ANY RULES, REGULATIONS, ORDERS AND PROCEDURES ADOPTED THERE-
TO, INCLUDING THE OBLIGATION THAT  SUCH  CORPORATION  PROVIDE  SAFE  AND
ADEQUATE SERVICE.
  S  4.  Subdivisions 19 and 21 of section 66 of the public service law,
subdivision 19 as added by chapter 556 of the laws of 1976 and the clos-
ing paragraph of subdivision 19 as added by chapter 586 of the  laws  of
1986 and subdivision 21 as added by chapter 718 of the laws of 1980, are
amended and a new subdivision 1-a is added to read as follows:
  1-A. REVIEW THE ANNUAL CAPITAL EXPENDITURE OF EACH COMBINATION GAS AND
ELECTRIC  CORPORATION AND MAY ORDER SUCH IMPROVEMENT IN THE MANUFACTURE,
CONVEYING, TRANSPORTATION, DISTRIBUTION OR SUPPLY OF GAS, IN  THE  MANU-
FACTURE,  TRANSMISSION  OR  SUPPLY  OF  ELECTRICITY,  OR  IN THE METHODS
EMPLOYED  BY  SUCH  CORPORATION  AS  IN  THE  COMMISSION'S  JUDGMENT  IS
ADEQUATE, JUST AND REASONABLE.
  19.  (A) The commission shall have power to provide for management and
operations audits of gas corporations and  electric  corporations.  Such
audits shall be performed at least once every five years for combination
gas  and  electric [companies] CORPORATIONS, as well as for straight gas
corporations having annual gross  revenues  in  excess  of  two  hundred
million  dollars.    The  audit shall include, but not be limited to, an
investigation of the company's construction program planning in relation
to the needs of its customers for reliable service [and], an  evaluation
of  the  efficiency  of  the  company's operations, RECOMMENDATIONS WITH
RESPECT TO SAME, AND THE TIMING WITH RESPECT TO  THE  IMPLEMENTATION  OF

S. 2607--D                         97                         A. 3007--D

SUCH RECOMMENDATIONS.  The commission shall have discretion to have such
audits performed by its staff, or by independent auditors.
  In  every  case  in  which  the  commission  chooses to have the audit
provided for in this subdivision OR PURSUANT TO SUBDIVISION FOURTEEN  OF
SECTION SIXTY-FIVE OF THIS ARTICLE performed by independent auditors, it
shall  have authority to select the auditors, and to require the company
being audited to enter into a contract with the auditors  providing  for
their  payment  by the company. Such contract shall provide further that
the auditors shall work for and under the direction  of  the  commission
according  to  such  terms as the commission may determine are necessary
and reasonable[.
  The commission shall have authority to direct the company to implement
any recommendations resulting from such  audits  that  it  finds  to  be
necessary and reasonable].
  (B)  EACH CORPORATION SUBJECT TO AN AUDIT UNDER THIS SUBDIVISION SHALL
FILE A REPORT WITH THE COMMISSION WITHIN THIRTY DAYS AFTER  ISSUANCE  OF
SUCH  AUDIT  DETAILING ITS PLAN TO IMPLEMENT THE RECOMMENDATIONS MADE IN
THE AUDIT. AFTER REVIEW OF SUCH PLAN, THE COMMISSION  MAY  REQUIRE  EACH
COMBINED  ELECTRIC  AND  GAS  CORPORATION AMEND ITS PLAN IN A PARTICULAR
MANNER. SUCH PLAN SHALL THEREAFTER BECOME ENFORCEABLE UPON  APPROVAL  BY
THE COMMISSION. THE COMMISSION SHALL HAVE POWER TO COMMENCE A PROCEEDING
TO EXAMINE ANY SUCH CORPORATION'S COMPLIANCE WITH THE RECOMMENDATIONS OF
SUCH AUDIT.
  (C)  Upon the application of a gas or electric corporation for a major
change in rates as defined in subdivision twelve of  this  section,  the
commission   shall   review   that  corporation's  compliance  with  the
directions and recommendations made previously by the commission,  as  a
result  of  the most recently completed management and operations audit.
The commission shall incorporate the findings  of  such  review  in  its
opinion  or order, AND SUCH FINDINGS SHALL BE ENFORCEABLE BY THE COMMIS-
SION.
  21. [The commission shall require every electric corporation to submit
storm plans to the commission for review and approval at such times  and
in  such  detail  and  form  as  the commission shall require, provided,
however, that the same shall be filed at least annually.] (A) EACH ELEC-
TRIC CORPORATION SUBJECT TO SECTION TWENTY-FIVE-A OF THIS CHAPTER  SHALL
ANNUALLY,  ON  OR BEFORE DECEMBER FIFTEENTH, SUBMIT TO THE COMMISSION AN
EMERGENCY RESPONSE PLAN FOR REVIEW AND APPROVAL. THE EMERGENCY  RESPONSE
PLAN  SHALL BE DESIGNED FOR THE REASONABLY PROMPT RESTORATION OF SERVICE
IN THE CASE OF AN EMERGENCY EVENT, DEFINED FOR PURPOSES OF THIS SUBDIVI-
SION AS AN EVENT WHERE WIDESPREAD OUTAGES HAVE OCCURRED IN  THE  SERVICE
TERRITORY  OF  THE  COMPANY  DUE  TO  STORMS  OR OTHER CAUSES BEYOND THE
CONTROL OF THE COMPANY. THE EMERGENCY RESPONSE PLAN SHALL  INCLUDE,  BUT
NEED NOT BE LIMITED TO, THE FOLLOWING: (I) THE IDENTIFICATION OF MANAGE-
MENT  STAFF RESPONSIBLE FOR COMPANY OPERATIONS DURING AN EMERGENCY; (II)
A COMMUNICATIONS SYSTEM WITH CUSTOMERS DURING AN EMERGENCY THAT  EXTENDS
BEYOND  NORMAL BUSINESS HOURS AND BUSINESS CONDITIONS; (III) IDENTIFICA-
TION OF AND OUTREACH PLANS TO CUSTOMERS WHO HAD  DOCUMENTED  THEIR  NEED
FOR  ESSENTIAL ELECTRICITY FOR MEDICAL NEEDS; (IV) IDENTIFICATION OF AND
OUTREACH PLANS TO CUSTOMERS WHO HAD DOCUMENTED THEIR NEED FOR  ESSENTIAL
ELECTRICITY TO PROVIDE CRITICAL TELECOMMUNICATIONS, CRITICAL TRANSPORTA-
TION,  CRITICAL FUEL DISTRIBUTION SERVICES OR OTHER LARGE-LOAD CUSTOMERS
IDENTIFIED BY THE COMMISSION; (V) DESIGNATION OF COMPANY STAFF TO COMMU-
NICATE WITH LOCAL OFFICIALS AND APPROPRIATE  REGULATORY  AGENCIES;  (VI)
PROVISIONS  REGARDING  HOW  THE  COMPANY  WILL  ASSURE THE SAFETY OF ITS
EMPLOYEES AND CONTRACTORS; (VII) PROCEDURES FOR  DEPLOYING  COMPANY  AND

S. 2607--D                         98                         A. 3007--D

MUTUAL  AID  CREWS  TO  WORK  ASSIGNMENT AREAS; (VIII) IDENTIFICATION OF
ADDITIONAL SUPPLIES AND EQUIPMENT NEEDED DURING AN EMERGENCY;  (IX)  THE
MEANS  OF OBTAINING ADDITIONAL SUPPLIES AND EQUIPMENT; (X) PROCEDURES TO
PRACTICE  THE  EMERGENCY  RESPONSE PLAN; (XI) APPROPRIATE SAFETY PRECAU-
TIONS REGARDING ELECTRICAL HAZARDS, INCLUDING PLANS TO  PROMPTLY  SECURE
DOWNED  WIRES WITHIN THIRTY-SIX HOURS OF NOTIFICATION OF THE LOCATION OF
SUCH DOWNED WIRES FROM A MUNICIPAL EMERGENCY OFFICIAL;  AND  (XII)  SUCH
OTHER  ADDITIONAL  INFORMATION AS THE COMMISSION MAY REQUIRE.  EACH SUCH
CORPORATION SHALL, ON AN ANNUAL  BASIS,  UNDERTAKE  DRILLS  IMPLEMENTING
PROCEDURES  TO  PRACTICE  ITS EMERGENCY MANAGEMENT PLAN.  THE COMMISSION
MAY ADOPT ADDITIONAL REQUIREMENTS CONSISTENT WITH ENSURING  THE  REASON-
ABLY PROMPT RESTORATION OF SERVICE IN THE CASE OF AN EMERGENCY EVENT.
  (B)  AFTER  REVIEW  OF  A  CORPORATION'S  EMERGENCY RESPONSE PLAN, THE
COMMISSION MAY REQUIRE SUCH CORPORATION TO AMEND THE PLAN.  THE  COMMIS-
SION  MAY ALSO OPEN AN INVESTIGATION OF THE CORPORATION'S PLAN TO DETER-
MINE ITS SUFFICIENCY TO RESPOND ADEQUATELY TO AN EMERGENCY EVENT.    IF,
AFTER  HEARINGS, THE COMMISSION FINDS A MATERIAL DEFICIENCY IN THE PLAN,
IT MAY ORDER THE COMPANY  TO  MAKE  SUCH  MODIFICATIONS  THAT  IT  DEEMS
REASONABLY NECESSARY TO REMEDY THE DEFICIENCY.
  (C)  THE  COMMISSION  IS AUTHORIZED TO OPEN AN INVESTIGATION TO REVIEW
THE PERFORMANCE OF ANY CORPORATION IN  RESTORING  SERVICE  OR  OTHERWISE
MEETING  THE REQUIREMENTS OF THE EMERGENCY RESPONSE PLAN DURING AN EMER-
GENCY EVENT. IF,  AFTER  EVIDENTIARY  HEARINGS  OR  OTHER  INVESTIGATORY
PROCEEDINGS, THE COMMISSION FINDS THAT THE CORPORATION FAILED TO REASON-
ABLY  IMPLEMENT ITS EMERGENCY RESPONSE PLAN OR THE LENGTH OF SUCH CORPO-
RATION'S OUTAGES WERE MATERIALLY  LONGER  THAN  THEY  WOULD  HAVE  BEEN,
BECAUSE  OF SUCH CORPORATION'S FAILURE TO REASONABLY IMPLEMENT ITS EMER-
GENCY RESPONSE PLAN, THE COMMISSION MAY DENY THE RECOVERY OF ANY PART OF
THE SERVICE RESTORATION COSTS CAUSED BY SUCH FAILURE, COMMENSURATE  WITH
THE  DEGREE  AND  IMPACT  OF THE SERVICE OUTAGE; PROVIDED, HOWEVER, THAT
NOTHING HEREIN LIMITS THE COMMISSION'S AUTHORITY TO OTHERWISE COMMENCE A
PROCEEDING   PURSUANT   TO   SECTIONS   TWENTY-FOUR,   TWENTY-FIVE   AND
TWENTY-FIVE-A OF THIS CHAPTER.
  (D) THE COMMISSION SHALL CERTIFY TO THE DEPARTMENT OF HOMELAND SECURI-
TY  AND  EMERGENCY  SERVICES  THAT  EACH  SUCH  CORPORATION'S  EMERGENCY
RESPONSE PLAN IS SUFFICIENT TO ENSURE TO THE  GREATEST  EXTENT  FEASIBLE
THE TIMELY AND SAFE RESTORATION OF ENERGY SERVICES AFTER AN EMERGENCY IN
COMPLIANCE WITH THE REQUIREMENTS OF THIS CHAPTER.
  (E)  THE  FILING  OF EACH EMERGENCY RESPONSE PLAN REQUIRED UNDER PARA-
GRAPH (A) OF THIS SUBDIVISION SHALL ALSO INCLUDE A COPY OF  ALL  WRITTEN
MUTUAL ASSISTANCE AGREEMENTS AMONG UTILITIES.
  (F)  EACH ELECTRIC CORPORATION SHALL FILE WITH THE COUNTY EXECUTIVE OR
THE CHIEF ELECTED OFFICIAL OF  A  COUNTY  FOR  EACH  COUNTY  WITHIN  ITS
SERVICE  TERRITORY  THE  MOST  RECENT  APPROVED  COPY  OF  THE EMERGENCY
RESPONSE PLAN REQUIRED PURSUANT TO THIS SECTION. FOR THE PURPOSES OF  AN
ELECTRIC  CORPORATION OPERATING WITHIN THE CITY OF NEW YORK, SUCH CORPO-
RATION SHALL FILE THE MOST RECENT APPROVED EMERGENCY RESPONSE PLAN  WITH
THE EMERGENCY MANAGEMENT OFFICE OF THE CITY OF NEW YORK.
  (G)  THE  COMMISSION  SHALL  PROVIDE ACCESS TO SUCH EMERGENCY RESPONSE
PLAN PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  S 5. Section 68 of the public service law, as amended by chapter 52 of
the laws of 1940, is amended to read as follows:
  S 68. [Approval of incorporation and franchises; certificate]  CERTIF-
ICATE  OF PUBLIC CONVENIENCE AND NECESSITY.  1. CERTIFICATE REQUIRED. No
gas corporation or electric corporation shall begin  construction  of  a
gas plant or electric plant without first having obtained the permission

S. 2607--D                         99                         A. 3007--D

and  approval  of the commission. No such corporation shall exercise any
right or privilege under any franchise hereafter granted, or  under  any
franchise  heretofore  granted but not heretofore actually exercised, or
the  exercise of which shall have been suspended for more than one year,
without first having obtained [the permission and approval of] A CERTIF-
ICATE OF PUBLIC CONVENIENCE AND  NECESSITY  ISSUED  BY  the  commission.
Before  such certificate shall be issued a certified copy of the charter
of such corporation shall be filed in  the  office  of  the  commission,
together with a verified statement of the president and secretary of the
corporation,  showing  that  it has received the required consent of the
proper municipal authorities. The commission shall have power  to  grant
the permission and approval herein specified whenever it shall after due
hearing  determine that such construction or such exercise of the right,
privilege or franchise is [necessary or] convenient  AND  NECESSARY  for
the public service. IN MAKING SUCH A DETERMINATION, THE COMMISSION SHALL
CONSIDER  THE ECONOMIC FEASIBILITY OF THE CORPORATION, THE CORPORATION'S
ABILITY TO FINANCE IMPROVEMENTS OF A GAS PLANT OR ELECTRIC PLANT, RENDER
SAFE, ADEQUATE AND RELIABLE SERVICE, AND  PROVIDE  JUST  AND  REASONABLE
RATES,  AND WHETHER ISSUANCE OF A CERTIFICATE IS IN THE PUBLIC INTEREST.
Except as provided in article [fourteen-a]  FOURTEEN-A  of  the  general
municipal  law,  no  municipality  shall build, maintain and operate for
other than municipal purposes any works or systems for  the  manufacture
and  supplying  of  gas  or  electricity for lighting purposes without a
certificate of authority granted by the commission. If  the  certificate
of  authority  is refused, no further proceedings shall be taken by such
municipality before the commission, but a new application  may  be  made
therefor after one year from the date of such refusal.
  2.  REVOCATION  OR  MODIFICATION  OF  CERTIFICATE.  THE COMMISSION MAY
COMMENCE A PROCEEDING, CONDUCTED IN  ACCORDANCE  WITH  THE  COMMISSION'S
RULES  AND  REGULATIONS, TO REVOKE OR MODIFY A COMBINED ELECTRIC AND GAS
CORPORATION'S CERTIFICATE AS IT RELATES TO  SUCH  CORPORATION'S  SERVICE
TERRITORY   OR  ANY  PORTION  THEREOF  BASED  ON  FINDINGS  OF  REPEATED
VIOLATIONS OF THIS CHAPTER OR RULES OR REGULATIONS ADOPTED THERETO  THAT
DEMONSTRATE  A  FAILURE  OF SUCH CORPORATION TO CONTINUE TO PROVIDE SAFE
AND ADEQUATE SERVICE.   WHENEVER THE COMMISSION HAS  REASON  TO  BELIEVE
THAT  SUCH  CORPORATION'S  CERTIFICATE  MAY  BE SUBJECT TO REVOCATION OR
MODIFICATION, IT SHALL NOTIFY SUCH CORPORATION OF THE FACTS  AND  NATURE
OF  EACH  ACT  OR FAILURE TO ACT ALLEGEDLY WARRANTING SUCH REVOCATION OR
MODIFICATION, AND THE STATUTE, REGULATION OR ORDER  ALLEGEDLY  VIOLATED,
AND OTHERWISE CONSIDER THE FOLLOWING FACTORS:
  (A)  THE  FACTORS  IDENTIFIED  IN  SUBDIVISION ONE OF THIS SECTION FOR
ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;
  (B) WHETHER ANOTHER PERSON, FIRM OR CORPORATION IS  QUALIFIED,  AVAIL-
ABLE,  AND  PREPARED  TO PROVIDE ALTERNATIVE SERVICE THAT IS ADEQUATE TO
SERVE THE PUBLIC CONVENIENCE AND NECESSITY, AND THAT THE  TRANSITION  TO
SUCH  ALTERNATIVE PERSON, FIRM OR CORPORATION IS IN THE PUBLIC INTEREST;
AND
  (C) UPON ANY OTHER STANDARDS AND PROCEDURES DEEMED  NECESSARY  BY  THE
COMMISSION  TO  ENSURE  CONTINUITY OF SAFE AND ADEQUATE SERVICE, AND DUE
PROCESS.
  S 6. Paragraphs a and b of subdivision 1 of section 765 of the general
business law, as amended by chapter 685 of the laws of 1994, are amended
to read as follows:
  a. Failure to comply with any provision of this article shall  subject
an  excavator or an operator to a civil penalty of up to [one] TWO thou-
sand FIVE HUNDRED dollars for the first violation and  up  to  an  addi-

S. 2607--D                         100                        A. 3007--D

tional  [seven]  TEN thousand [five hundred] dollars for each succeeding
violation [which] THAT occurs [in connection with the  entire  self-same
excavation or demolition activity] within a [two] TWELVE month period.
  b.  The  penalties  provided for by this article shall not apply to an
excavator who damages an underground facility due to the failure of  the
operator  to comply with any of the provisions of this article nor shall
in such instance the excavator be liable for repairs  as  prescribed  in
subdivision [five] FOUR of this section.
  S 7. This act shall take effect immediately.

                                 PART Y

  Section 1. Legislative intent. 1. Repowering existing power generation
facilities  can produce significant benefits in terms of enhanced system
reliability, electric market competitiveness, and emissions reductions.
  2. Retiring power plants that are not repowered may leave behind aban-
doned or underutilized land that  would  negatively  affect  surrounding
communities and impede economic development.
  3.  In  summary,  it  is in the public interest to develop clean power
generation near energy demand to meet the needs of  ratepayers,  support
local and state tax revenue stability, promote economic opportunity, and
enhance the state's environment.
  S  2. This hereby acknowledges and codifies the Public Service Commis-
sion Order Instituting Proceeding and Requiring Evaluation of Generation
Repowering, as provided in Case 12-E-0577, regarding the examination  of
repowering alternatives to transmission reinforcements.
  S 3. This act shall take effect immediately.

                                 PART Z

  Section  1.  Paragraph  (c)  of  subdivision 2 of section 591-a of the
labor law, as added by chapter 413 of the laws of 2003,  is  amended  to
read as follows:
  (c)  individuals  may receive the allowance described in paragraph (a)
of this subdivision if such individuals:
  (i) are eligible to receive regular unemployment benefits or would  be
eligible  to receive such benefits except for the requirements set forth
in subparagraphs (i) and (ii) of paragraph (b) of this subdivision.  For
purposes  of  this section, regular unemployment benefits means benefits
payable under this article, including benefits payable to federal civil-
ian employees and to ex-servicemen and servicewomen pursuant  to  5  USC
Chapter  85,  AND BENEFITS AUTHORIZED TO BE USED FOR THE SELF-EMPLOYMENT
ASSISTANCE PROGRAM PURSUANT TO THE FEDERAL-STATE  EXTENDED  UNEMPLOYMENT
COMPENSATION  ACT  OF 1970 but excluding additional [and extended] bene-
fits;
  (ii) are identified pursuant to a worker profiling system as  individ-
uals likely to exhaust regular unemployment benefits;
  (iii)  are  participating  in  self-employment  assistance  activities
approved by the department and by the department of economic development
which include but need not be limited to entrepreneurial training, busi-
ness counseling, and technical assistance, including  financing  assist-
ance  for qualified individuals as appropriate, offered by entrepreneur-
ship support centers established pursuant to section two hundred  twelve
of  the  economic  development  law,  state university of New York small
business development centers, programs offered by community-based organ-
izations, local development  corporations,  and  boards  of  cooperative

S. 2607--D                         101                        A. 3007--D

educational  services  (BOCES)  as  established  pursuant to section one
thousand nine hundred fifty of the education law; AND, UNLESS  OTHERWISE
REQUIRED BY FEDERAL LAW OR REGULATION, NO INDIVIDUAL SHALL BE PROHIBITED
FROM OR DISQUALIFIED FROM ELIGIBILITY FOR THE PROGRAM IF PRIOR TO APPLY-
ING  FOR  THE PROGRAM, AN INDIVIDUAL HAS PRINTED BUSINESS CARDS OR HAS A
WEBSITE THAT IS DESIGNED BUT NOT ACTIVE, AND NEITHER ARE BEING  USED  TO
SOLICIT OR CONDUCT BUSINESS;
  (iv)  are  actively  engaged on a full-time basis in activities, which
may include training, relating to the establishment of  a  business  and
becoming self-employed;
  (v)  are  not individuals who have previously participated in self-em-
ployment assistance programs pursuant to this section; and
  S 2. Section 10 of chapter 413 of the laws of 2003 amending the  labor
law  relating  to  the  self-employment  assistance  program  and  other
matters, as amended by chapter 134 of the laws of 2011,  is  amended  to
read as follows:
  S 10.  This act shall take effect immediately; provided, however, that
sections eight and nine of this act shall expire December 7, [2013] 2015
when  upon  such  date  the  provisions of such sections shall be deemed
repealed.
  S 3. Paragraph (d) of subdivision 2 of section 601 of the  labor  law,
as  amended  by  chapter  35  of the laws of 2009, is amended to read as
follows:
  (d) has satisfied the conditions of this article, required to render a
claimant eligible for regular benefits, which are applicable to extended
benefits, including not being subject to a disqualification  or  suspen-
sion, OR HAS SATISFIED THE CONDITIONS OF THIS ARTICLE REQUIRED TO RENDER
A  CLAIMANT  ELIGIBLE  TO  PARTICIPATE IN THE SELF-EMPLOYMENT ASSISTANCE
PROGRAM PURSUANT TO SECTION FIVE HUNDRED NINETY-ONE-A OF THIS TITLE  AND
THE FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 1970;
  S  4.  This act shall take effect immediately; provided, however, that
the amendments to section 591-a of the labor law made by section one  of
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.

                                 PART AA

  Section  1.  Section 9 of chapter 420 of the laws of 2002 amending the
education law relating to the profession of social work, as  amended  by
chapter 132 of the laws of 2010, is amended to read as follows:
  S 9. a.  Nothing in this act shall prohibit or limit the activities or
services on the part of any person in the employ of a program or service
operated,  regulated,  funded,  or  approved by the department of mental
hygiene, the office of children  and  family  services,  THE  OFFICE  OF
TEMPORARY  AND  DISABILITY  ASSISTANCE,  the department of [correctional
services] CORRECTIONS AND COMMUNITY SUPERVISION, the  state  office  for
the  aging,  the  department  of health, or a local governmental unit as
that term is defined in article 41 of the mental hygiene law or a social
services district as defined in section 61 of the social  services  law,
provided, however, this section shall not authorize the use of any title
authorized  pursuant  to  article  154 of the education law, except that
this section shall  be  deemed  repealed  on  July  1,  [2013  provided,
further,  however,  that on or before October 1, 2010, each state agency
identified in this subdivision  shall  submit  to  the  commissioner  of
education data, in such form and detail as requested by the commissioner
of education, concerning the functions performed by its service provider

S. 2607--D                         102                        A. 3007--D

workforce  and  the service provider workforce of the local governmental
units and social services districts as defined in this subdivision  over
which  the  agency has regulatory authority. After receipt of such data,
the  commissioner  shall  convene a workgroup of such state agencies for
the purpose of reviewing such data  and  also  to  make  recommendations
regarding  amendments  to  law,  rule or regulation necessary to clarify
which tasks and activities must be performed only by licensed or  other-
wise  authorized personnel. No later than January 1, 2011, after consul-
tation with such work group, the commissioner shall develop criteria for
the report required pursuant to subdivision b of this section and  shall
work with such state agencies by providing advice and guidance regarding
which  tasks and activities must be performed only by licensed or other-
wise authorized personnel.
  b. On or before July 1, 2011, each such state agency, after  consulta-
tion  with  local  governmental  units  and social services districts as
defined in subdivision a of this section over which the agency has regu-
latory authority, shall submit to the commissioner of education a report
on the utilization of  personnel  subject  to  the  provisions  of  this
section. Such report shall include but not be limited to: identification
of tasks and activities performed by such personnel categorized as tasks
and  functions  restricted to licensed personnel and tasks and functions
that do not require a license under article 154 of  the  education  law;
analysis  of costs associated with employing only appropriately licensed
or otherwise authorized personnel to perform tasks  and  functions  that
require  licensure  under  such  article 154, including salary costs and
costs associated with  providing  support  to  unlicensed  personnel  in
obtaining  appropriate  licensure.  Such  report  shall  also include an
action plan detailing measures through which each such entity shall,  no
later  than July 1, 2013, comply with professional licensure laws appli-
cable to services provided and make recommendations on alternative path-
ways toward licensure.
  c.  The commissioner of education shall, after receipt of  the  report
required under this section, and after consultation with state agencies,
not-for-profit  providers,  professional  associations,  consumers,  and
other key stakeholders, submit a report to the governor, the speaker  of
the  assembly,  the temporary president of the senate, and the chairs of
the senate and assembly higher education committees by July 1,  2012  to
recommend  any  amendments to law, rule or regulation necessary to fully
implement the requirements for licensure by July 1, 2013.   Other  state
agency  commissioners shall be provided an opportunity to include state-
ments or alternative recommendations in such report] 2016.
  B. ON OR BEFORE SEPTEMBER 1, 2014, EACH  STATE  AGENCY  IDENTIFIED  IN
SUBDIVISION  A  OF  THIS  SECTION  THAT OPERATES, REGULATES, APPROVES OR
FUNDS PROGRAMS THAT EMPLOY INDIVIDUALS TO PROVIDE  SERVICES  THAT  WOULD
OTHERWISE  BE  RESTRICTED  TO  INDIVIDUALS  LICENSED OR AUTHORIZED UNDER
ARTICLE 153, 154 OR 163 OF  THE  EDUCATION  LAW,  SHALL  SUBMIT  TO  THE
COMMISSIONER  OF EDUCATION, IN SUCH FORM AND DETAIL AS REQUESTED BY SUCH
COMMISSIONER, DATA IN RELATION TO:  THE NUMBER OF  INDIVIDUALS  EMPLOYED
IN EXEMPT PROGRAMS OPERATED, FUNDED, REGULATED OR APPROVED BY EACH STATE
AGENCY  ON  JULY 1, 2013 WHO ARE PROVIDING SERVICES THAT WOULD OTHERWISE
BE RESTRICTED TO THOSE LICENSED OR AUTHORIZED UNDER ARTICLE 153, 154  OR
163  OF  THE EDUCATION LAW; THE OCCUPATIONAL TITLE OF INDIVIDUALS WHO ON
JULY 1, 2014 ARE NOT LICENSED OR OTHERWISE AUTHORIZED UNDER  TITLE  VIII
OF  THE  EDUCATION LAW, AND WHO ARE ENGAGED IN: THE DIAGNOSIS OF MENTAL,
EMOTIONAL, BEHAVIORAL, ADDICTIVE AND DEVELOPMENTAL DISORDERS  AND  DISA-
BILITIES;  PATIENT ASSESSMENT AND EVALUATION; THE PROVISION OF PSYCHOTH-

S. 2607--D                         103                        A. 3007--D

ERAPEUTIC TREATMENT; THE PROVISION OF TREATMENT OTHER THAN  PSYCHOTHERA-
PEUTIC   TREATMENT   AND/OR   THE   DEVELOPMENT  AND  IMPLEMENTATION  OF
ASSESSMENT-BASED TREATMENT PLANS, AS DEFINED  IN  SECTION  7701  OF  THE
EDUCATION  LAW  OR  AS  AUTHORIZED  IN  ARTICLES 153, 154 AND 163 OF THE
EDUCATION LAW.  FOR PURPOSES OF THIS SECTION, THIS REPORTING  SHALL  NOT
INCLUDE INDIVIDUALS THAT ARE PERFORMING TASKS THAT DO NOT REQUIRE LICEN-
SURE  AS  IDENTIFIED IN SUBDIVISION 10 OF SECTION 7605, SUBDIVISION 7 OF
SECTION 7706, AND SUBDIVISION 8 OF SECTION 8410 OF THE EDUCATION LAW.
  C. THE COMMISSIONER OF EDUCATION, AFTER RECEIPT OF THIS  DATA  AND  IN
CONSULTATION WITH THE AFFECTED STATE AGENCIES, NOT-FOR-PROFIT PROVIDERS,
PROFESSIONAL  ASSOCIATIONS,  CONSUMERS AND OTHER KEY STAKEHOLDERS, SHALL
PREPARE A REPORT THAT RECOMMENDS CHANGES IN ANY  LAWS,  RULES  OR  REGU-
LATIONS NECESSARY TO ENSURE APPROPRIATE LICENSURE OR OTHER AUTHORIZATION
OF  INDIVIDUALS  PROVIDING SERVICES THAT ARE WITHIN THE RESTRICTED PRAC-
TICE OF PROFESSIONS LICENSED OR OTHERWISE AUTHORIZED UNDER ARTICLE  153,
154 OR 163 OF THE EDUCATION LAW. THE REPORT SHALL INCLUDE AN ESTIMATE OF
THE  FISCAL  IMPACT  OF  ANY SUCH RECOMMENDED CHANGES AND, TO THE EXTENT
PRACTICABLE, HOW SUCH RECOMMENDATIONS WILL RESULT IN IMPROVED  OUTCOMES.
THE  COMMISSIONER  OF EDUCATION SHALL SUBMIT THE REPORT TO THE GOVERNOR,
THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE,  AND
THE  CHAIRS  OF  THE  SENATE AND ASSEMBLY HIGHER EDUCATION COMMITTEES BY
JANUARY 1, 2015. OTHER STATE AGENCY COMMISSIONERS SHALL BE  PROVIDED  AN
OPPORTUNITY TO INCLUDE STATEMENTS OR ALTERNATIVE RECOMMENDATIONS IN SUCH
REPORT.
  S  2.  Section  17-a  of  chapter 676 of the laws of 2002 amending the
education law relating to the practice  of  psychology,  as  amended  by
chapter 130 of the laws of 2010, subdivision b as amended by chapter 132
of the laws of 2010, is amended to read as follows:
  S  17-a.    a.  In  relation to activities and services provided under
article 153 of the education law, nothing in this act shall prohibit  or
limit  such  activities  or  services  on  the part of any person in the
employ of a program or service operated, regulated, funded, or  approved
by the department of mental hygiene or the office of children and family
services,  or a local governmental unit as that term is defined in arti-
cle 41 of the mental hygiene  law  or  a  social  services  district  as
defined in section 61 of the social services law.  In relation to activ-
ities  and  services  provided  under  article 163 of the education law,
nothing in this act shall prohibit or limit such activities or  services
on  the  part  of any person in the employ of a program or service oper-
ated, regulated,  funded,  or  approved  by  the  department  of  mental
hygiene,  the  office of children and family services, the department of
[correctional  services]  CORRECTIONS  AND  COMMUNITY  SUPERVISION,  THE
OFFICE  OF TEMPORARY AND DISABILITY ASSISTANCE, the state office for the
aging and the department of health or a local governmental unit as  that
term  is  defined  in  article  41 of the mental hygiene law or a social
services district as defined in section 61 of the social  services  law,
pursuant  to  authority granted by law. This section shall not authorize
the use of any title authorized pursuant to article 153 or  163  of  the
education  law by any such employed person, except as otherwise provided
by such articles respectively.  THIS SECTION SHALL  BE  DEEMED  REPEALED
JULY 1, 2016.
  [b.  This  section  shall  be  deemed  repealed July 1, 2013 provided,
however, that on or before October 1, 2010, each state agency identified
in subdivision a of this section shall submit  to  the  commissioner  of
education data, in such form and detail as requested by the commissioner
of education, concerning the functions performed by its service provider

S. 2607--D                         104                        A. 3007--D

workforce  and  the service provider workforce of the local governmental
units and social services districts as defined in subdivision a of  this
section over which the agency has regulatory authority. After receipt of
such  data,  the  commissioner  shall  convene a workgroup of such state
agencies for the purpose of reviewing such data and also to make  recom-
mendations  regarding amendments to law, rule or regulation necessary to
clarify which tasks and activities must be performed only by licensed or
otherwise authorized personnel. No later than  January  1,  2011,  after
consultation  with such workgroup, the commissioner shall develop crite-
ria for the report required pursuant to paragraph one of  this  subdivi-
sion  and  shall  work  with such state agencies by providing advice and
guidance regarding which tasks and activities must be performed only  by
licensed or otherwise authorized personnel.
  1.  On or before July 1, 2011, each such state agency, after consulta-
tion with local governmental units  and  social  services  districts  as
defined in subdivision a of this section over which the agency has regu-
latory authority, shall submit to the commissioner of education a report
on  the  utilization  of  personnel  subject  to  the provisions of this
section. Such report shall include but not be limited to: identification
of tasks and activities performed by such personnel categorized as tasks
and functions restricted to licensed personnel and tasks  and  functions
that  do not require a license under article 153 or 163 of the education
law; analysis of costs  associated  with  employing  only  appropriately
licensed  or  otherwise  authorized personnel to perform tasks and func-
tions that require licensure under such article 153  or  163,  including
salary  costs  and costs associated with providing support to unlicensed
personnel in obtaining appropriate licensure.  Such  report  shall  also
include an action plan detailing measures through which each such entity
shall,  no  later  than July 1, 2013, comply with professional licensure
laws applicable to services provided and make recommendations on  alter-
native pathways toward licensure.
  2.   The commissioner of education shall, after receipt of the reports
required under this section, and after consultation with state agencies,
not-for-profit  providers,  professional  associations,  consumers,  and
other  key stakeholders, submit a report to the governor, the speaker of
the assembly, the temporary president of the senate, and the  chairs  of
the  senate  and assembly higher education committees by July 1, 2012 to
recommend any amendments to law, rule or regulation necessary  to  fully
implement  the  requirements for licensure by July 1, 2013.  Other state
agency commissioners shall be provided an opportunity to include  state-
ments or alternative recommendations in such report.]
  B.  ON  OR  BEFORE  SEPTEMBER 1, 2014, EACH STATE AGENCY IDENTIFIED IN
SUBDIVISION A OF THIS SECTION  THAT  OPERATES,  REGULATES,  APPROVES  OR
FUNDS  PROGRAMS  THAT  EMPLOY INDIVIDUALS TO PROVIDE SERVICES THAT WOULD
OTHERWISE BE RESTRICTED TO  INDIVIDUALS  LICENSED  OR  AUTHORIZED  UNDER
ARTICLE  153,  154  OR  163  OF  THE  EDUCATION LAW, SHALL SUBMIT TO THE
COMMISSIONER OF EDUCATION, IN SUCH FORM AND DETAIL AS REQUESTED BY  SUCH
COMMISSIONER,  DATA  IN RELATION TO:  THE NUMBER OF INDIVIDUALS EMPLOYED
IN EXEMPT PROGRAMS OPERATED, FUNDED, REGULATED OR APPROVED BY EACH STATE
AGENCY ON JULY 1, 2013 WHO ARE PROVIDING SERVICES THAT  WOULD  OTHERWISE
BE  RESTRICTED TO THOSE LICENSED OR AUTHORIZED UNDER ARTICLE 153, 154 OR
163 OF THE EDUCATION LAW; THE OCCUPATIONAL TITLE OF INDIVIDUALS  WHO  ON
JULY  1,  2014 ARE NOT LICENSED OR OTHERWISE AUTHORIZED UNDER TITLE VIII
OF THE EDUCATION LAW, AND WHO ARE ENGAGED IN: THE DIAGNOSIS  OF  MENTAL,
EMOTIONAL,  BEHAVIORAL,  ADDICTIVE AND DEVELOPMENTAL DISORDERS AND DISA-
BILITIES; PATIENT ASSESSMENT AND EVALUATION; THE PROVISION OF  PSYCHOTH-

S. 2607--D                         105                        A. 3007--D

ERAPEUTIC  TREATMENT; THE PROVISION OF TREATMENT OTHER THAN PSYCHOTHERA-
PEUTIC  TREATMENT  AND/OR  THE   DEVELOPMENT   AND   IMPLEMENTATION   OF
ASSESSMENT-BASED  TREATMENT  PLANS,  AS  DEFINED  IN SECTION 7701 OF THE
EDUCATION  LAW  OR  AS  AUTHORIZED  IN  ARTICLES 153, 154 AND 163 OF THE
EDUCATION LAW.  FOR PURPOSES OF THIS SECTION, THIS REPORTING  SHALL  NOT
INCLUDE INDIVIDUALS THAT ARE PERFORMING TASKS THAT DO NOT REQUIRE LICEN-
SURE  AS  IDENTIFIED IN SUBDIVISION 10 OF SECTION 7605, SUBDIVISION 7 OF
SECTION 7706, AND SUBDIVISION 8 OF SECTION 8410 OF THE EDUCATION LAW.
  C. THE COMMISSIONER OF EDUCATION, AFTER RECEIPT OF THIS  DATA  AND  IN
CONSULTATION WITH THE AFFECTED STATE AGENCIES, NOT-FOR-PROFIT PROVIDERS,
PROFESSIONAL  ASSOCIATIONS,  CONSUMERS AND OTHER KEY STAKEHOLDERS, SHALL
PREPARE A REPORT THAT RECOMMENDS CHANGES IN ANY  LAWS,  RULES  OR  REGU-
LATIONS NECESSARY TO ENSURE APPROPRIATE LICENSURE OR OTHER AUTHORIZATION
OF  INDIVIDUALS  PROVIDING SERVICES THAT ARE WITHIN THE RESTRICTED PRAC-
TICE OF PROFESSIONS LICENSED OR OTHERWISE AUTHORIZED UNDER ARTICLE  153,
154  OR  163  OF  THE EDUCATION LAW. THE COMMISSIONER OF EDUCATION SHALL
SUBMIT THE REPORT TO THE GOVERNOR, THE  SPEAKER  OF  THE  ASSEMBLY,  THE
TEMPORARY  PRESIDENT  OF  THE  SENATE,  AND THE CHAIRS OF THE SENATE AND
ASSEMBLY HIGHER EDUCATION COMMITTEES BY JANUARY  1,  2015.  OTHER  STATE
AGENCY  COMMISSIONERS SHALL BE PROVIDED AN OPPORTUNITY TO INCLUDE STATE-
MENTS OR ALTERNATIVE RECOMMENDATIONS IN SUCH REPORT.
  S 3. Section 16 of chapter 130 of the laws of 2010 amending the educa-
tion law and other laws relating to the registration of entities provid-
ing  certain  professional  services  and  the  licensure   of   certain
professions,  as  amended by chapter 132 of the laws of 2010, is amended
to read as follows:
  S 16. This act shall take effect immediately; provided  that  sections
thirteen, fourteen and fifteen of this act shall take effect immediately
and  shall  be deemed to have been in full force and effect on and after
June 1, 2010 and such sections shall be deemed repealed July  1,  [2013]
2016;  provided  further that the amendments to section 9 of chapter 420
of the laws of 2002 amending the education law relating to  the  profes-
sion of social work made by section thirteen of this act shall repeal on
the  same date as such section repeals; provided further that the amend-
ments to section 17-a of chapter 676 of the laws of  2002  amending  the
education  law  relating  to  the practice of psychology made by section
fourteen of this act shall repeal on  the  same  date  as  such  section
repeals.
  S  4.  Section  7605  of  the education law is amended by adding a new
subdivision 10 to read as follows:
  10. A PERSON WITHOUT A LICENSE FROM  PERFORMING  ASSESSMENTS  SUCH  AS
BASIC   INFORMATION  COLLECTION,  GATHERING  OF  DEMOGRAPHIC  DATA,  AND
INFORMAL OBSERVATIONS, SCREENING AND REFERRAL USED FOR GENERAL ELIGIBIL-
ITY FOR A PROGRAM OR SERVICE AND DETERMINING THE FUNCTIONAL STATUS OF AN
INDIVIDUAL FOR THE PURPOSE OF DETERMINING NEED FOR SERVICES UNRELATED TO
A BEHAVIORAL HEALTH DIAGNOSIS OR TREATMENT PLAN.  SUCH  LICENSURE  SHALL
NOT BE REQUIRED TO CREATE, DEVELOP OR IMPLEMENT A SERVICE PLAN UNRELATED
TO  A  BEHAVIORAL HEALTH DIAGNOSIS OR TREATMENT PLAN. SUCH SERVICE PLANS
SHALL INCLUDE, BUT ARE NOT LIMITED TO, JOB TRAINING  AND  EMPLOYABILITY,
HOUSING,  GENERAL  PUBLIC  ASSISTANCE,  IN HOME SERVICES AND SUPPORTS OR
HOME-DELIVERED MEALS, INVESTIGATIONS CONDUCTED OR  ASSESSMENTS  MADE  BY
ADULT  OR  CHILD  PROTECTIVE SERVICES, ADOPTION HOME STUDIES AND ASSESS-
MENTS, FAMILY SERVICE PLANS, TRANSITION PLANS  AND  PERMANENCY  PLANNING
ACTIVITIES,  DE-ESCALATION  TECHNIQUES,  PEER SERVICES OR SKILL DEVELOP-
MENT.  A LICENSE UNDER THIS ARTICLE SHALL NOT BE REQUIRED FOR PERSONS TO
PARTICIPATE AS A MEMBER OF A  MULTI-DISCIPLINARY  TEAM  TO  IMPLEMENT  A

S. 2607--D                         106                        A. 3007--D

BEHAVIORAL  HEALTH  SERVICES  OR  TREATMENT PLAN; PROVIDED HOWEVER, THAT
SUCH TEAM SHALL INCLUDE ONE OR MORE PROFESSIONALS  LICENSED  UNDER  THIS
ARTICLE  OR  ARTICLES  ONE HUNDRED THIRTY-ONE, ONE HUNDRED FIFTY-FOUR OR
ONE HUNDRED SIXTY-THREE OF THIS CHAPTER; AND PROVIDED, FURTHER, THAT THE
ACTIVITIES PERFORMED BY MEMBERS OF THE TEAM SHALL BE CONSISTENT WITH THE
SCOPE  OF  PRACTICE  FOR  EACH  TEAM MEMBER LICENSED OR AUTHORIZED UNDER
TITLE VIII OF THIS CHAPTER, AND THOSE WHO ARE NOT SO AUTHORIZED MAY  NOT
ENGAGE  IN  THE FOLLOWING RESTRICTED PRACTICES: THE DIAGNOSIS OF MENTAL,
EMOTIONAL, BEHAVIORAL, ADDICTIVE AND DEVELOPMENTAL DISORDERS  AND  DISA-
BILITIES;  PATIENT ASSESSMENT AND EVALUATING; THE PROVISION OF PSYCHOTH-
ERAPEUTIC TREATMENT; THE PROVISION OF TREATMENT OTHER THAN  PSYCHOTHERA-
PEUTIC   TREATMENT;   AND/OR   THE  DEVELOPMENT  AND  IMPLEMENTATION  OF
ASSESSMENT-BASED TREATMENT PLANS AS  DEFINED  IN  SECTION  SEVENTY-SEVEN
HUNDRED  ONE  OF  THIS  CHAPTER. PROVIDED, FURTHER, THAT NOTHING IN THIS
SUBDIVISION SHALL BE CONSTRUED AS REQUIRING A LICENSE FOR ANY PARTICULAR
ACTIVITY OR FUNCTION BASED SOLELY ON THE FACT THAT THE ACTIVITY OR FUNC-
TION IS NOT LISTED IN THIS SUBDIVISION.
  S 5. Section 7706 of the education law is  amended  by  adding  a  new
subdivision 7 to read as follows:
  7. PREVENT A PERSON WITHOUT A LICENSE FROM PERFORMING ASSESSMENTS SUCH
AS  BASIC  INFORMATION  COLLECTION,  GATHERING  OF DEMOGRAPHIC DATA, AND
INFORMAL OBSERVATIONS, SCREENING AND REFERRAL USED FOR GENERAL ELIGIBIL-
ITY FOR A PROGRAM OR SERVICE AND DETERMINING THE FUNCTIONAL STATUS OF AN
INDIVIDUAL FOR THE PURPOSE OF DETERMINING NEED FOR SERVICES UNRELATED TO
A BEHAVIORAL HEALTH DIAGNOSIS OR TREATMENT PLAN.  SUCH  LICENSURE  SHALL
NOT BE REQUIRED TO CREATE, DEVELOP OR IMPLEMENT A SERVICE PLAN UNRELATED
TO  A  BEHAVIORAL HEALTH DIAGNOSIS OR TREATMENT PLAN. SUCH SERVICE PLANS
SHALL INCLUDE, BUT ARE NOT LIMITED TO, JOB TRAINING  AND  EMPLOYABILITY,
HOUSING,  GENERAL  PUBLIC  ASSISTANCE,  IN HOME SERVICES AND SUPPORTS OR
HOME-DELIVERED MEALS, INVESTIGATIONS CONDUCTED OR  ASSESSMENTS  MADE  BY
ADULT  OR  CHILD  PROTECTIVE SERVICES, ADOPTION HOME STUDIES AND ASSESS-
MENTS, FAMILY SERVICE PLANS, TRANSITION PLANS  AND  PERMANENCY  PLANNING
ACTIVITIES,  DE-ESCALATION  TECHNIQUES,  PEER SERVICES OR SKILL DEVELOP-
MENT.  A LICENSE UNDER THIS ARTICLE SHALL NOT BE REQUIRED FOR PERSONS TO
PARTICIPATE AS A MEMBER OF A  MULTI-DISCIPLINARY  TEAM  TO  IMPLEMENT  A
BEHAVIORAL  HEALTH  SERVICES  OR  TREATMENT PLAN; PROVIDED HOWEVER, THAT
SUCH TEAM SHALL INCLUDE ONE OR MORE PROFESSIONALS  LICENSED  UNDER  THIS
ARTICLE  OR  ARTICLES ONE HUNDRED THIRTY-ONE, ONE HUNDRED FIFTY-THREE OR
ONE HUNDRED SIXTY-THREE OF THIS CHAPTER; AND PROVIDED, FURTHER, THAT THE
ACTIVITIES PERFORMED BY MEMBERS OF THE TEAM SHALL BE CONSISTENT WITH THE
SCOPE OF PRACTICE FOR EACH TEAM  MEMBER  LICENSED  OR  AUTHORIZED  UNDER
TITLE  VIII OF THIS CHAPTER, AND THOSE WHO ARE NOT SO AUTHORIZED MAY NOT
ENGAGE IN THE FOLLOWING RESTRICTED PRACTICES: THE DIAGNOSIS  OF  MENTAL,
EMOTIONAL,  BEHAVIORAL,  ADDICTIVE AND DEVELOPMENTAL DISORDERS AND DISA-
BILITIES; PATIENT ASSESSMENT AND EVALUATING; THE PROVISION OF  PSYCHOTH-
ERAPEUTIC  TREATMENT; THE PROVISION OF TREATMENT OTHER THAN PSYCHOTHERA-
PEUTIC  TREATMENT;  AND/OR  THE  DEVELOPMENT   AND   IMPLEMENTATION   OF
ASSESSMENT-BASED  TREATMENT  PLANS  AS  DEFINED IN SECTION SEVENTY-SEVEN
HUNDRED ONE OF THIS ARTICLE. PROVIDED, FURTHER,  THAT  NOTHING  IN  THIS
SUBDIVISION SHALL BE CONSTRUED AS REQUIRING A LICENSE FOR ANY PARTICULAR
ACTIVITY OR FUNCTION BASED SOLELY ON THE FACT THAT THE ACTIVITY OR FUNC-
TION IS NOT LISTED IN THIS SUBDIVISION.
  S  6.  Section  8410  of  the education law is amended by adding a new
subdivision 8 to read as follows:
  8. PREVENT A PERSON WITHOUT A LICENSE FROM PERFORMING ASSESSMENTS SUCH
AS BASIC INFORMATION COLLECTION,  GATHERING  OF  DEMOGRAPHIC  DATA,  AND

S. 2607--D                         107                        A. 3007--D

INFORMAL OBSERVATIONS, SCREENING AND REFERRAL USED FOR GENERAL ELIGIBIL-
ITY FOR A PROGRAM OR SERVICE AND DETERMINING THE FUNCTIONAL STATUS OF AN
INDIVIDUAL FOR THE PURPOSE OF DETERMINING NEED FOR SERVICES UNRELATED TO
A  BEHAVIORAL  HEALTH  DIAGNOSIS OR TREATMENT PLAN. SUCH LICENSURE SHALL
NOT BE REQUIRED TO CREATE, DEVELOP OR IMPLEMENT A SERVICE PLAN UNRELATED
TO A BEHAVIORAL HEALTH DIAGNOSIS OR TREATMENT PLAN. SUCH  SERVICE  PLANS
SHALL  INCLUDE,  BUT ARE NOT LIMITED TO, JOB TRAINING AND EMPLOYABILITY,
HOUSING, GENERAL PUBLIC ASSISTANCE, IN HOME  SERVICES  AND  SUPPORTS  OR
HOME-DELIVERED  MEALS,  INVESTIGATIONS  CONDUCTED OR ASSESSMENTS MADE BY
ADULT OR CHILD PROTECTIVE SERVICES, ADOPTION HOME  STUDIES  AND  ASSESS-
MENTS,  FAMILY  SERVICE  PLANS, TRANSITION PLANS AND PERMANENCY PLANNING
ACTIVITIES, DE-ESCALATION TECHNIQUES, PEER SERVICES  OR  SKILL  DEVELOP-
MENT.  A LICENSE UNDER THIS ARTICLE SHALL NOT BE REQUIRED FOR PERSONS TO
PARTICIPATE  AS  A  MEMBER  OF  A MULTI-DISCIPLINARY TEAM TO IMPLEMENT A
BEHAVIORAL HEALTH SERVICES OR TREATMENT  PLAN;  PROVIDED  HOWEVER,  THAT
SUCH  TEAM  SHALL  INCLUDE ONE OR MORE PROFESSIONALS LICENSED UNDER THIS
ARTICLE OR ARTICLES ONE HUNDRED THIRTY-ONE, ONE HUNDRED  FIFTY-THREE  OR
ONE  HUNDRED FIFTY-FOUR OF THIS CHAPTER; AND PROVIDED, FURTHER, THAT THE
ACTIVITIES PERFORMED BY MEMBERS OF THE TEAM SHALL BE CONSISTENT WITH THE
SCOPE OF PRACTICE FOR EACH TEAM  MEMBER  LICENSED  OR  AUTHORIZED  UNDER
TITLE  VIII OF THIS CHAPTER, AND THOSE WHO ARE NOT SO AUTHORIZED MAY NOT
ENGAGE IN THE FOLLOWING RESTRICTED PRACTICES: THE DIAGNOSIS  OF  MENTAL,
EMOTIONAL,  BEHAVIORAL,  ADDICTIVE AND DEVELOPMENTAL DISORDERS AND DISA-
BILITIES; PATIENT ASSESSMENT AND EVALUATING; THE PROVISION OF  PSYCHOTH-
ERAPEUTIC  TREATMENT; THE PROVISION OF TREATMENT OTHER THAN PSYCHOTHERA-
PEUTIC  TREATMENT;  AND/OR  THE  DEVELOPMENT   AND   IMPLEMENTATION   OF
ASSESSMENT-BASED  TREATMENT  PLANS  AS  DEFINED IN SECTION SEVENTY-SEVEN
HUNDRED ONE OF THIS CHAPTER. PROVIDED, FURTHER,  THAT  NOTHING  IN  THIS
SUBDIVISION SHALL BE CONSTRUED AS REQUIRING A LICENSE FOR ANY PARTICULAR
ACTIVITY OR FUNCTION BASED SOLELY ON THE FACT THAT THE ACTIVITY OR FUNC-
TION IS NOT LISTED IN THIS SUBDIVISION.
  S  7.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2013; provided,
however, that the provisions of this act shall apply only to actions and
proceedings commenced on or after such effective date; provided that the
amendments to section 9 of chapter 420 of the laws of 2002  and  section
17-a  of chapter 676 of the laws of 2002 made by sections one and two of
this act, respectively, shall not affect the repeal of such sections and
shall expire and be deemed repealed therewith.

                                 PART BB

  Section 1. Legislative findings and intent. The legislature finds that
local governments and school districts are facing increased stress  from
rising  costs  including  employee  pension  obligations. Last year, the
legislature took action to aid local governments and school districts in
controlling future pension obligations by making changes to the  benefit
structure  for  employees hired after April 1, 2012. Now the legislature
finds that it is desirable  to  provide  local  governments  and  school
districts  with  more  stability  and predictability for current pension
obligations, while  simultaneously  ensuring  the  adequacy  of  pension
system funding.
  It  is  the intent of the legislature to authorize the comptroller and
the New York state  teachers'  retirement  system  board  to  establish,
subject to their discretion, additional contribution options designed to

S. 2607--D                         108                        A. 3007--D

provide  stability  and  predictability  to  employers,  while  ensuring
adequate pension system funding over the term of these options.
  S  2. Section 19-a of the retirement and social security law, as added
by section 1 of part TT of chapter 57 of the laws of 2010, is amended to
read as follows:
  S 19-a. Employer contributions for the two thousand ten - two thousand
eleven fiscal year and subsequent fiscal years. a. In  addition  to  the
definitions in section two of this article, when used in this section:
  (1)  "Amortizing employer" shall mean an employer that elects to amor-
tize a portion of the employer's annual bill pursuant to  paragraph  one
of subdivision d of this section for the two thousand ten - two thousand
eleven  fiscal  year,  or  any  subsequent  fiscal year, PURSUANT TO THE
SYSTEM GRADED CONTRIBUTION RATE regardless of whether the  employer  has
subsequently  paid in full all such amortized amounts, AND THAT DOES NOT
ELECT TO AMORTIZE AS AN ALTERNATIVE  AMORTIZING  EMPLOYER  FOR  THE  TWO
THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN FISCAL YEAR.
  (1-A)  "ALTERNATIVE  AMORTIZING  EMPLOYER"  SHALL MEAN A COUNTY, CITY,
TOWN,  VILLAGE,  SCHOOL  DISTRICT,  BOARD  OF  COOPERATIVE   EDUCATIONAL
SERVICES,  OR  PUBLIC BENEFIT CORPORATION THAT OPERATES A PUBLIC GENERAL
HOSPITAL LOCATED IN THE COUNTY OF WESTCHESTER, THE COUNTY  OF  ERIE,  OR
THE COUNTY OF NASSAU THAT, ON A FORM PREPARED BY THE COMPTROLLER, ELECTS
TO AND DOES AMORTIZE A PORTION OF THE EMPLOYER'S ANNUAL BILL PURSUANT TO
PARAGRAPH  ONE  OF  SUBDIVISION  D  OF THIS SECTION FOR THE TWO THOUSAND
THIRTEEN - TWO THOUSAND FOURTEEN FISCAL YEAR PURSUANT TO THE ALTERNATIVE
SYSTEM GRADED CONTRIBUTION RATE, REGARDLESS OF WHETHER THE EMPLOYER  HAS
SUBSEQUENTLY PAID IN FULL ALL SUCH AMORTIZED AMOUNTS.
  (2)  "Amount  eligible for amortization" for a given fiscal year shall
mean the amount by which an employer's actuarial contribution  for  such
fiscal  year  exceeds  the  employer's  graded contribution for the same
fiscal year, less any amount from the employer contribution reserve fund
applied to reduce the employer's payment to the  retirement  system  for
the fiscal year, provided, however, that if the employer's average actu-
arial  contribution  rate for the fiscal year is less than nine and one-
half percent, then the amount eligible for amortization shall be zero.
  (3) "Employer's actuarial contribution" for a given fiscal year  shall
mean  an  employer's annual bill for such fiscal year exclusive of defi-
ciency contributions and payments on account of group term  life  insur-
ance,  adjustments  relating to prior fiscal years' obligations, retire-
ment incentives and prior amortizations.
  (4) "Employer's annual bill" shall mean for a given  fiscal  year  the
sum of the following amounts: (i) an employer's normal contributions for
the  fiscal year determined in accordance with paragraph one of subdivi-
sion b of section twenty-three of this  article  and  the  comprehensive
structural  reform  program  implemented  pursuant  to  subdivision b of
section twenty-three-a of this  article,  including  the  provisions  of
subdivision  b of section twenty-three-a of this article relating to the
required minimum annual contribution of four  and  one-half  percent  of
pensionable  salaries;  (ii) the employer's deficiency contributions and
administration contributions for the fiscal year determined  in  accord-
ance  with  paragraphs two and three of subdivision b of section twenty-
three of this article; and (iii) any payments by the employer due in the
fiscal year on account of group term life insurance, adjustments  relat-
ing  to prior fiscal years' obligations, retirement incentives and prior
amortizations.
  (5) "Employer's average  actuarial  contribution  rate"  for  a  given
fiscal  year  shall  mean  an employer's actuarial contribution for such

S. 2607--D                         109                        A. 3007--D

fiscal year divided by the employer's projected  payroll  for  the  same
fiscal year.
  (6)  "Employer  contribution  reserve  fund"  or "fund" shall mean the
employer contribution reserve fund established pursuant to subdivision e
of this section.
  (7) "Employer's graded contribution" for a  given  fiscal  year  shall
mean  the  amount  determined by applying the system graded contribution
rate OR THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE for such  fiscal
year to an employer's projected payroll for the same fiscal year.
  (8) "Employer's graded payment" for a given fiscal year shall mean the
amount  by  which an employer's graded contribution for such fiscal year
exceeds the employer's actuarial contribution for the same fiscal year.
  (9) "Prior amortization" shall mean with respect  to  a  given  fiscal
year  any  payment  due  in such fiscal year on account of an obligation
from a prior fiscal year that an employer is permitted  to  pay  to  the
retirement system on an amortized basis.
  (10)  "System  average actuarial contribution rate" for a given fiscal
year shall mean the sum of all employers'  actuarial  contributions  for
such  fiscal year divided by the sum of all employers' projected payroll
for the same fiscal year.
  (11) "System graded contribution rate" for a given fiscal  year  shall
mean  the  graded contribution rate for the retirement system as a whole
determined for such fiscal  year  pursuant  to  subdivision  c  of  this
section.
  (12)  "ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE" FOR A GIVEN FISCAL
YEAR SHALL MEAN THE GRADED CONTRIBUTION RATE FOR THE  RETIREMENT  SYSTEM
AS  A  WHOLE DETERMINED FOR SUCH FISCAL YEAR PURSUANT TO SUBDIVISION C-1
OF THIS SECTION.
  b. Notwithstanding the provisions of this chapter or any other law  to
the  contrary,  the  comptroller,  in  his or her discretion, shall have
authority to implement this section. If the comptroller elects to imple-
ment this section, the provisions of this section  shall  apply  to  the
payment  of  employer  contributions  for  the fiscal year commencing on
April first, two thousand ten, and for subsequent fiscal years.  IF  THE
COMPTROLLER,  WITHIN  HIS  OR  HER  DISCRETION,  ELECTS TO IMPLEMENT THE
ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE AS PROVIDED  BY  SUBDIVISION
C-1  OF THIS SECTION, THE PROVISIONS OF PARAGRAPH ONE-A OF SUBDIVISION D
OF THIS SECTION SHALL APPLY TO THE PAYMENT OF EMPLOYER CONTRIBUTIONS FOR
THE FISCAL YEAR COMMENCING ON APRIL FIRST, TWO  THOUSAND  THIRTEEN,  AND
FOR SUBSEQUENT FISCAL YEARS.
  c. For each fiscal year to which the provisions of this section apply,
the  comptroller  shall  determine  a  graded  contribution rate for the
retirement system as a whole in the manner provided in this subdivision.
  (1) For the two thousand ten - two thousand  eleven  fiscal  year  the
system graded contribution rate shall be nine and one-half percent.
  (2) For the two thousand eleven - two thousand twelve fiscal year, and
subsequent  fiscal  years,  system  graded  contribution  rates shall be
determined as follows:
  (i) if the system average actuarial  contribution  rate  for  a  given
fiscal year is at least nine and one-half percent and exceeds the system
graded  contribution  rate  for the immediately preceding fiscal year by
more than one percentage point, then the system graded contribution rate
for the given fiscal year shall equal  the  system  graded  contribution
rate  for  the  immediately  preceding  fiscal  year plus one percentage
point, provided, however, that in  no  event  shall  the  system  graded
contribution rate be less than nine and one-half percent;

S. 2607--D                         110                        A. 3007--D

  (ii)  if  the  system  average actuarial contribution rate for a given
fiscal year is at least nine and one-half percent and either equals  the
system  graded  contribution  rate  for the immediately preceding fiscal
year or exceeds the system graded contribution rate for the  immediately
preceding  fiscal  year by one percentage point or less, then the system
graded contribution rate for the  given  fiscal  year  shall  equal  the
system  average  actuarial  contribution  rate  for  such  fiscal  year,
provided, however, that in no event shall the system graded contribution
rate be less than nine and one-half percent;
  (iii) if the system average actuarial contribution rate  for  a  given
fiscal  year is less than nine and one-half percent and greater than the
system graded contribution rate for  the  immediately  preceding  fiscal
year, then the system graded contribution rate for the given fiscal year
shall equal the system actuarial contribution rate for such fiscal year;
  (iv)  if  the  system  average actuarial contribution rate for a given
fiscal year is smaller than the system graded contribution rate for  the
immediately  preceding  fiscal  year  by more than one percentage point,
then the system graded contribution rate for the given fiscal year shall
equal the system graded contribution rate for the immediately  preceding
fiscal year minus one percentage point; and
  (v)  if  the  system  average  actuarial contribution rate for a given
fiscal year either equals the system graded contribution  rate  for  the
immediately  preceding  fiscal year or is smaller than the system graded
contribution rate for the  immediately  preceding  fiscal  year  by  one
percentage  point  or less, then the system graded contribution rate for
the given fiscal year shall equal the system actuarial contribution rate
for such fiscal year.
  C-1. FOR EACH FISCAL YEAR TO WHICH  THE  PROVISIONS  OF  THIS  SECTION
APPLY,  THE  COMPTROLLER  SHALL  DETERMINE  AN ALTERNATIVE SYSTEM GRADED
CONTRIBUTION RATE FOR THE RETIREMENT SYSTEM AS A  WHOLE  IN  THE  MANNER
PROVIDED IN THIS SUBDIVISION.
  (1)  FOR THE TWO THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN FISCAL YEAR
AND THE TWO THOUSAND FOURTEEN - TWO THOUSAND FIFTEEN  FISCAL  YEAR,  THE
ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE SHALL BE TWELVE PERCENT.
  (2)  FOR  THE  TWO THOUSAND FIFTEEN - TWO THOUSAND SIXTEEN FISCAL YEAR
AND FOR SUBSEQUENT FISCAL YEARS, THE ALTERNATIVE SYSTEM GRADED  CONTRIB-
UTION RATES SHALL BE DETERMINED AS FOLLOWS:
  (I)  IF  THE  SYSTEM  AVERAGE  ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS AT LEAST NINE AND ONE-HALF PERCENT AND EXCEEDS THE ALTER-
NATIVE SYSTEM GRADED CONTRIBUTION RATE  FOR  THE  IMMEDIATELY  PRECEDING
FISCAL YEAR BY MORE THAN ONE-HALF PERCENTAGE POINT, THEN THE ALTERNATIVE
SYSTEM  GRADED  CONTRIBUTION  RATE FOR THE GIVEN FISCAL YEAR SHALL EQUAL
THE ALTERNATIVE SYSTEM GRADED  CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY
PRECEDING FISCAL YEAR PLUS ONE-HALF PERCENTAGE POINT, PROVIDED, HOWEVER,
THAT  IN  NO EVENT SHALL THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE
BE LESS THAN NINE AND ONE-HALF PERCENT;
  (II) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR IS AT LEAST NINE AND ONE-HALF PERCENT AND EITHER EQUALS THE
ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY  PRECED-
ING  FISCAL  YEAR  OR EXCEEDS THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR  BY  ONE-HALF  PERCENTAGE
POINT  OR LESS, THEN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE FOR
THE GIVEN FISCAL YEAR SHALL EQUAL THE SYSTEM AVERAGE ACTUARIAL  CONTRIB-
UTION  RATE  FOR  SUCH  FISCAL YEAR, PROVIDED, HOWEVER, THAT IN NO EVENT
SHALL THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE BE LESS THAN  NINE
AND ONE-HALF PERCENT;

S. 2607--D                         111                        A. 3007--D

  (III)  IF  THE  SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS LESS THAN NINE AND ONE-HALF PERCENT AND GREATER THAN  THE
ALTERNATIVE  SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECED-
ING FISCAL YEAR, THEN THE ALTERNATIVE SYSTEM  GRADED  CONTRIBUTION  RATE
FOR  THE GIVEN FISCAL YEAR SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION
RATE FOR SUCH FISCAL YEAR;
  (IV) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  IS SMALLER THAN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR  BY  MORE  THAN  ONE-HALF
PERCENTAGE  POINT,  THEN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE
FOR THE GIVEN FISCAL YEAR SHALL  EQUAL  THE  ALTERNATIVE  SYSTEM  GRADED
CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY  PRECEDING  FISCAL  YEAR MINUS
ONE-HALF PERCENTAGE POINT; AND
  (V) IF THE SYSTEM AVERAGE ACTUARIAL  CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  EITHER  EQUALS  THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR OR IS  SMALLER  THAN  THE
ALTERNATIVE  SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECED-
ING FISCAL YEAR BY ONE-HALF PERCENTAGE POINT OR LESS, THEN THE  ALTERNA-
TIVE  SYSTEM  GRADED  CONTRIBUTION  RATE FOR THE GIVEN FISCAL YEAR SHALL
EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE FOR SUCH FISCAL YEAR.
  d. (1) For any given fiscal year for which an employer's average actu-
arial contribution rate exceeds the system graded contribution rate, the
employer shall pay to the retirement  system  an  amount  equal  to  the
employer's  annual  bill  for such year or, in lieu of paying the entire
annual bill, the employer may pay an  amount  equal  to  the  employer's
annual  bill less all or a portion of the employer's amount eligible for
amortization for the fiscal year. If in accordance with  this  paragraph
the  employer's payment to the retirement system is less than the entire
amount of the employer's annual bill, then the  difference  between  the
employer's  annual bill, and the amount actually paid by the employer to
the retirement system exclusive of any amount from the employer contrib-
ution reserve fund applied to reduce the employer's  payment,  shall  be
the  amount  amortized for the fiscal year. The amount amortized for the
fiscal year shall be paid to  the  retirement  system  in  equal  annual
installments over a ten-year period, with interest on the unpaid balance
at a rate determined by the comptroller which approximates a market rate
of  return on taxable fixed rate securities with similar terms issued by
comparable issuers, and with the first installment due in the immediate-
ly succeeding fiscal year.
  (1-A) FOR ANY GIVEN FISCAL YEAR FOR WHICH AN EMPLOYER'S AVERAGE  ACTU-
ARIAL  CONTRIBUTION  RATE EXCEEDS THE ALTERNATIVE SYSTEM GRADED CONTRIB-
UTION RATE, THE EMPLOYER SHALL PAY TO THE RETIREMENT  SYSTEM  AN  AMOUNT
EQUAL  TO THE EMPLOYER'S ANNUAL BILL FOR SUCH YEAR OR, IN LIEU OF PAYING
THE ENTIRE ANNUAL BILL, THE EMPLOYER MAY PAY  AN  AMOUNT  EQUAL  TO  THE
EMPLOYER'S  ANNUAL  BILL  LESS ALL OR A PORTION OF THE EMPLOYER'S AMOUNT
ELIGIBLE FOR AMORTIZATION FOR THE FISCAL YEAR.  IF  IN  ACCORDANCE  WITH
THIS  PARAGRAPH  THE EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM IS LESS
THAN THE ENTIRE AMOUNT OF THE EMPLOYER'S ANNUAL BILL, THEN  THE  DIFFER-
ENCE BETWEEN THE EMPLOYER'S ANNUAL BILL, AND THE AMOUNT ACTUALLY PAID BY
THE  EMPLOYER  TO THE RETIREMENT SYSTEM EXCLUSIVE OF ANY AMOUNT FROM THE
EMPLOYER CONTRIBUTION RESERVE FUND  APPLIED  TO  REDUCE  THE  EMPLOYER'S
PAYMENT,  SHALL  BE THE AMOUNT AMORTIZED FOR THE FISCAL YEAR. THE AMOUNT
AMORTIZED FOR THE FISCAL YEAR SHALL BE PAID TO THE RETIREMENT SYSTEM  IN
EQUAL  ANNUAL  INSTALLMENTS  OVER A TWELVE YEAR PERIOD, WITH INTEREST ON
THE UNPAID BALANCE AT A RATE DETERMINED BY THE COMPTROLLER  WHICH  SHALL
BE  THE  TWELVE  YEAR  INTERPOLATED  RATE  BASED  ON  THE  MOST RECENTLY

S. 2607--D                         112                        A. 3007--D

PUBLISHED YIELD TO MATURITY OF A TEN YEAR AND TWENTY YEAR U.S.  TREASURY
SECURITY PLUS ONE HUNDRED BASIS POINTS.
  (2) For any given fiscal year for which the system graded contribution
rate  equals  or  exceeds  an  amortizing  employer's  average actuarial
contribution rate, the amortizing employer shall pay to  the  retirement
system  an amount equal to the employer's annual bill for such year plus
the employer's graded payment for the fiscal year.
  (i) If the amortizing employer's annual bill for the fiscal year  does
not  include  an  amount  attributable to a prior amortization, then the
employer's graded payment shall be paid into the  employer  contribution
reserve  fund provided for in subdivision e of this section and credited
to an account within such fund established for the employer.
  (ii) If the amortizing employer's annual  bill  for  the  fiscal  year
includes  an amount attributable to a prior amortization, the employer's
graded payment shall be used  first  to  eliminate  the  amount  of  the
employer's  unpaid  prior  amortization  balances in chronological order
starting with the oldest prior amortization balance. When in any  fiscal
year  the  employer's graded payment eliminates all balances owed on the
employer's prior amortizations, any remaining portion of the  employer's
graded  payment  for such fiscal year, and the employer's graded payment
in any subsequent fiscal year in which the amortizing  employer  has  no
unpaid prior amortizations, shall be paid into the employer contribution
reserve  fund provided for in subdivision e of this section and credited
to an account within such fund established for the employer.
  (2-A) FOR ANY GIVEN FISCAL YEAR FOR WHICH THE ALTERNATIVE SYSTEM GRAD-
ED CONTRIBUTION RATE EQUALS OR EXCEEDS AN ALTERNATIVE AMORTIZING EMPLOY-
ER'S AVERAGE ACTUARIAL CONTRIBUTION  RATE,  THE  ALTERNATIVE  AMORTIZING
EMPLOYER  SHALL  PAY  TO  THE  RETIREMENT  SYSTEM AN AMOUNT EQUAL TO THE
EMPLOYER'S ANNUAL BILL FOR SUCH YEAR PLUS THE EMPLOYER'S GRADED  PAYMENT
FOR THE FISCAL YEAR.
  (I)  IF  THE  ALTERNATIVE  AMORTIZING  EMPLOYER'S  ANNUAL BILL FOR THE
FISCAL YEAR DOES NOT INCLUDE AN AMOUNT ATTRIBUTABLE TO A  PRIOR  AMORTI-
ZATION,  THEN  THE  EMPLOYER'S  GRADED  PAYMENT  SHALL  BE PAID INTO THE
EMPLOYER CONTRIBUTION RESERVE FUND PROVIDED FOR IN SUBDIVISION E OF THIS
SECTION AND CREDITED TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR  THE
EMPLOYER.
  (II)  IF  THE  ALTERNATIVE  AMORTIZING  EMPLOYER'S ANNUAL BILL FOR THE
FISCAL YEAR INCLUDES AN AMOUNT ATTRIBUTABLE TO A PRIOR AMORTIZATION, THE
EMPLOYER'S GRADED PAYMENT SHALL BE USED FIRST TO ELIMINATE THE AMOUNT OF
THE EMPLOYER'S UNPAID PRIOR AMORTIZATION BALANCES IN CHRONOLOGICAL ORDER
STARTING WITH THE OLDEST PRIOR AMORTIZATION BALANCE. WHEN IN ANY  FISCAL
YEAR  THE  EMPLOYER'S GRADED PAYMENT ELIMINATES ALL BALANCES OWED ON THE
EMPLOYER'S PRIOR AMORTIZATIONS, ANY REMAINING PORTION OF THE  EMPLOYER'S
GRADED  PAYMENT  FOR SUCH FISCAL YEAR, AND THE EMPLOYER'S GRADED PAYMENT
IN ANY SUBSEQUENT FISCAL YEAR IN WHICH THE AMORTIZING  EMPLOYER  HAS  NO
UNPAID PRIOR AMORTIZATIONS, SHALL BE PAID INTO THE EMPLOYER CONTRIBUTION
RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (3) Nothing in this subdivision shall be construed as  prohibiting  an
employer from pre-paying any prior amortization.
  e.  (1)  Notwithstanding any law to the contrary, there shall be main-
tained separate and apart from the other funds of the retirement  system
an  employer contribution reserve fund, the assets of which shall not be
used or invested in a manner contrary to the provisions of this subdivi-
sion. The fund shall consist of all employer contributions  required  to
be  deposited  into  the fund pursuant to subdivision d of this section.

S. 2607--D                         113                        A. 3007--D

Within such fund there shall be a separate  account  for  each  employer
making such contributions and payments.
  (2)  For  any  given  fiscal  year  for which (i) the system actuarial
contribution rate exceeds nine and one-half percent of payroll, and (ii)
an employer's average actuarial contribution  rate  exceeds  the  system
graded  contribution  rate OR THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE, the balance in the employer's account within such  fund  shall  be
applied  to  reduce  the employer's payment to the retirement system for
such fiscal year in an amount not to exceed the difference  between  the
employer's actuarial contribution and the employer's graded contribution
for the fiscal year.
  (3)  Notwithstanding  the provisions of paragraph two of this subdivi-
sion, if at the close of any given fiscal year the balance of an employ-
er's account within the fund exceeds one hundred percent of the  employ-
er's payroll for such fiscal year, the excess shall be applied to reduce
the  employer's payment to the retirement system for the next succeeding
fiscal year.
  (4) The assets of the fund shall be invested  in  only  the  following
types of investments:
  (i)  obligations  of  the  United  States of America or in obligations
guaranteed by agencies of the United States of America where the payment
of principal and interest are guaranteed by the United States of America
or in obligations of the state of New York;
  (ii) general obligation bonds and notes of any state other  than  this
state,  provided that such bonds and notes receive the highest rating of
at least one independent rating agency;
  (iii) obligations of, or instruments issued by or fully guaranteed  as
to  principal  and  interest  by,  any  agency or instrumentality of the
United States acting pursuant to a grant of authority from the  congress
of  the  United  States, including, but not limited to, any federal home
loan bank or banks, the Tennessee valley authority, the federal national
mortgage association, the federal home loan mortgage corporation and the
United States postal service;
  (iv) certificate of deposits that are fully secured by the  issuer  by
depositing  with  the  comptroller direct or indirect obligations of the
United States or its agencies or a letter of credit issued by the Feder-
al Home Loan Bank; and
  (v) obligations of any corporation organized under  the  laws  of  any
state  in  the  United  States  maturing within two hundred seventy days
provided that such obligations receive the highest rating of  two  inde-
pendent rating services designated by the comptroller.
  (5) At the close of each fiscal year, the amount of interest and earn-
ings  attributable  to  each employer's account shall be computed by the
actuary and certified to the comptroller,  who  shall  thereupon  credit
each employer's account in accordance therewith.
  (6) The assets of the fund shall be excluded from the annual valuation
of  the  assets  and  liabilities  of the funds of the retirement system
required by section eleven of this title. The assets of the  fund  shall
not be used to finance increases in pension benefits.
  S 3. Section 319-a of the retirement and social security law, as added
by section 3 of part TT of chapter 57 of the laws of 2010, is amended to
read as follows:
  S  319-a.  Employer contributions for the two thousand ten - two thou-
sand eleven fiscal year and subsequent fiscal years. a. In  addition  to
the  definitions in section three hundred two of this article, when used
in this section:

S. 2607--D                         114                        A. 3007--D

  (1) "Amortizing employer" shall mean an employer that elects to  amor-
tize  a  portion of the employer's annual bill pursuant to paragraph one
of subdivision d of this section for the two thousand ten - two thousand
eleven fiscal year, or any  subsequent  fiscal  year,  PURSUANT  TO  THE
SYSTEM  GRADED  CONTRIBUTION RATE regardless of whether the employer has
subsequently paid in full all such amortized amounts, AND THAT DOES  NOT
ELECT  TO  AMORTIZE  AS  AN  ALTERNATIVE AMORTIZING EMPLOYER FOR THE TWO
THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN FISCAL YEAR.
  (1-A) "ALTERNATIVE AMORTIZING EMPLOYER" SHALL  MEAN  A  COUNTY,  CITY,
TOWN  OR  VILLAGE THAT, ON A FORM PREPARED BY THE COMPTROLLER, ELECTS TO
AND DOES AMORTIZE A PORTION OF THE EMPLOYER'S ANNUAL  BILL  PURSUANT  TO
PARAGRAPH  ONE  OF  SUBDIVISION  D  OF THIS SECTION FOR THE TWO THOUSAND
THIRTEEN - TWO THOUSAND FOURTEEN FISCAL YEAR PURSUANT TO THE ALTERNATIVE
SYSTEM GRADED CONTRIBUTION RATE, REGARDLESS OF WHETHER THE EMPLOYER  HAS
SUBSEQUENTLY PAID IN FULL ALL SUCH AMORTIZED AMOUNTS.
  (2)  "Amount  eligible for amortization" for a given fiscal year shall
mean the amount by which an employer's actuarial contribution  for  such
fiscal  year  exceeds  the  employer's  graded contribution for the same
fiscal year, less any amount from the employer contribution reserve fund
applied to reduce the employer's payment to the  retirement  system  for
the fiscal year, provided, however, that if the employer's average actu-
arial  contribution  rate for the fiscal year is less than seventeen and
one-half percent, then the amount eligible  for  amortization  shall  be
zero.
  (3)  "Employer's actuarial contribution" for a given fiscal year shall
mean an employer's annual bill for such fiscal  year  exclusive  of  the
deficiency  contributions  and  payments  on  account of group term life
insurance, adjustments relating  to  prior  fiscal  years'  obligations,
retirement incentives and prior amortizations.
  (4)  "Employer's  annual  bill" shall mean for a given fiscal year the
sum of the following amounts: (i) an employer's normal contributions for
the fiscal year determined in accordance with paragraph one of  subdivi-
sion  b  of  section  three hundred twenty-three of this article and the
comprehensive structural reform program implemented pursuant to subdivi-
sion b of section three hundred twenty-three-a of this article,  includ-
ing  the  provisions  of  subdivision b of section three hundred twenty-
three-a  of  this  article  relating  to  the  required  minimum  annual
contribution  of four and one-half percent of pensionable salaries; (ii)
the employer's deficiency contributions and administration contributions
for the fiscal year determined in accordance  with  paragraphs  two  and
three  of  subdivision  b  of section three hundred twenty-three of this
article; and (iii) any payments by the employer due in the  fiscal  year
on  account  of group term life insurance, adjustments relating to prior
fiscal years'  obligations,  retirement  incentives  and  prior  amorti-
zations.
  (5)  "Employer's  average  actuarial  contribution  rate"  for a given
fiscal year shall mean an employer's  actuarial  contribution  for  such
fiscal  year  divided  by  the employer's projected payroll for the same
fiscal year.
  (6) "Employer contribution reserve fund"  or  "fund"  shall  mean  the
employer contribution reserve fund established pursuant to subdivision e
of this section.
  (7)  "Employer's  graded  contribution"  for a given fiscal year shall
mean the amount determined by applying the  employer's  graded  contrib-
ution  rate OR THE ALTERNATIVE AMORTIZING EMPLOYER'S GRADED CONTRIBUTION

S. 2607--D                         115                        A. 3007--D

RATE for such fiscal year to an employer's  projected  payroll  for  the
same fiscal year.
  (8)  "Employer's  graded  contribution  rate"  for a given fiscal year
shall mean (i) the system graded contribution rate for such fiscal year,
or (ii) in the case  of  an  individual  employer  for  which  a  graded
contribution  rate  has  been  determined pursuant to paragraph three of
subdivision c of this section, the  graded  contribution  rate  for  the
individual employer for such fiscal year.
  (9) "Employer's graded payment" for a given fiscal year shall mean the
amount  by  which an employer's graded contribution for such fiscal year
exceeds the employer's actuarial contribution for the same fiscal year.
  (10) "Prior amortization" shall mean with respect to  a  given  fiscal
year  any  payment  due  in such fiscal year on account of an obligation
from a prior fiscal year that an employer is permitted  to  pay  to  the
retirement system on an amortized basis.
  (11)  "System  average actuarial contribution rate" for a given fiscal
year shall mean the sum of all employers'  actuarial  contributions  for
such fiscal year, divided by the sum of all employers' projected payroll
for the same fiscal year.
  (12)  "System  graded contribution rate" for a given fiscal year shall
mean the graded contribution rate for the retirement system as  a  whole
determined  for  such  fiscal  year  pursuant to paragraph one or two of
subdivision c of this section.
  (13) "ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE" FOR A GIVEN  FISCAL
YEAR  SHALL  MEAN THE GRADED CONTRIBUTION RATE FOR THE RETIREMENT SYSTEM
AS A WHOLE DETERMINED FOR SUCH FISCAL YEAR PURSUANT TO PARAGRAPH ONE  OR
TWO OF SUBDIVISION C-1 OF THIS SECTION.
  b.  Notwithstanding the provisions of this chapter or any other law to
the contrary, the comptroller, in his  or  her  discretion,  shall  have
authority to implement this section. If the comptroller elects to imple-
ment  this  section,  the  provisions of this section shall apply to the
payment of employer contributions for  the  fiscal  year  commencing  on
April  first, two thousand ten, and for subsequent fiscal years.  IF THE
COMPTROLLER, WITHIN HIS OR  HER  DISCRETION,  ELECTS  TO  IMPLEMENT  THE
ALTERNATIVE  SYSTEM  GRADED CONTRIBUTION RATE AS PROVIDED BY SUBDIVISION
C-1 OF THIS SECTION, THE PROVISIONS OF PARAGRAPH ONE-A OF SUBDIVISION  D
OF THIS SECTION SHALL APPLY TO THE PAYMENT OF EMPLOYER CONTRIBUTIONS FOR
THE  FISCAL  YEAR  COMMENCING ON APRIL FIRST, TWO THOUSAND THIRTEEN, AND
FOR SUBSEQUENT FISCAL YEARS.
  c. For each fiscal year to which the provisions of this section apply,
the comptroller shall determine  a  graded  contribution  rate  for  the
retirement system as a whole in the manner provided in this subdivision.
  (1)  For  the  two  thousand ten - two thousand eleven fiscal year the
system graded contribution rate shall be seventeen and one-half percent.
  (2) For the two thousand eleven - two thousand twelve fiscal year, and
subsequent fiscal years,  system  graded  contribution  rates  shall  be
determined as follows:
  (i)  if  the  system  average  actuarial contribution rate for a given
fiscal year is at least seventeen and one-half percent and  exceeds  the
system  graded  contribution  rate  for the immediately preceding fiscal
year by more than one percentage point, then the system graded  contrib-
ution  rate  for  the  given  fiscal  year shall equal the system graded
contribution rate for the immediately preceding  fiscal  year  plus  one
percentage  point,  provided  however, that in no event shall the system
graded contribution rate be less than seventeen and one-half percent;

S. 2607--D                         116                        A. 3007--D

  (ii) if the system average actuarial contribution  rate  for  a  given
fiscal year is at least seventeen and one-half percent and either equals
the system graded contribution rate for the immediately preceding fiscal
year  or exceeds the system graded contribution rate for the immediately
preceding  fiscal  year by one percentage point or less, then the system
graded contribution rate for the  given  fiscal  year  shall  equal  the
system  average  actuarial  contribution  rate  for  such  fiscal  year,
provided, however, that in no event shall the system graded contribution
rate be less than seventeen and one-half percent;
  (iii) if the system average actuarial contribution rate  for  a  given
fiscal year is less than seventeen and one-half percent and greater than
the system graded contribution rate for the immediately preceding fiscal
year, then the system graded contribution rate for the given fiscal year
shall equal the system actuarial contribution rate for such fiscal year;
  (iv)  if  the  system  average actuarial contribution rate for a given
fiscal year is smaller than the system graded contribution rate for  the
immediately  preceding  fiscal  year  by more than one percentage point,
then the system graded contribution rate for the given fiscal year shall
equal the system graded contribution rate for the immediately  preceding
fiscal year minus one percentage point; and
  (v)  if  the  system  average  actuarial contribution rate for a given
fiscal year either equals the system graded contribution  rate  for  the
immediately  preceding  fiscal year or is smaller than the system graded
contribution rate for the  immediately  preceding  fiscal  year  by  one
percentage  point  or less, then the system graded contribution rate for
the given fiscal year shall equal the system actuarial contribution rate
for such fiscal year.
  (3) The comptroller shall determine a  graded  contribution  rate  for
individual employers as provided in this paragraph.
  (i)  If  the  actuarial  contribution rate for an employer for a given
fiscal year is equal to or greater than  fifty  percent  of  the  system
actuarial  contribution  rate  for  such year, and less than or equal to
seventy-five percent of such system actuarial  contribution  rate,  then
the  graded contribution rate for the employer for the fiscal year shall
equal seventy-five percent of the system graded  contribution  RATE  for
such year.
  (ii)  If  the  actuarial contribution rate for an employer for a given
fiscal year is less than fifty percent of the system actuarial  contrib-
ution  rate  for  such  year,  then the graded contribution rate for the
employer for the fiscal year shall equal fifty  percent  of  the  system
graded contribution rate for such year.
  C-1.  FOR  EACH  FISCAL  YEAR  TO WHICH THE PROVISIONS OF THIS SECTION
APPLY, THE COMPTROLLER SHALL  DETERMINE  AN  ALTERNATIVE  SYSTEM  GRADED
CONTRIBUTION  RATE  FOR  THE  RETIREMENT SYSTEM AS A WHOLE IN THE MANNER
PROVIDED IN THIS SUBDIVISION.
  (1) FOR THE TWO THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN FISCAL  YEAR
AND  THE  TWO  THOUSAND FOURTEEN - TWO THOUSAND FIFTEEN FISCAL YEAR, THE
ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE SHALL BE TWENTY PERCENT.
  (2) FOR THE TWO THOUSAND FIFTEEN - TWO THOUSAND  SIXTEEN  FISCAL  YEAR
AND  THE SUBSEQUENT FISCAL YEARS, ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATES SHALL BE DETERMINED AS FOLLOWS:
  (I) IF THE SYSTEM AVERAGE ACTUARIAL  CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  IS AT LEAST SEVENTEEN AND ONE-HALF PERCENT AND EXCEEDS THE
ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY  PRECED-
ING  FISCAL YEAR BY MORE THAN ONE-HALF PERCENTAGE POINT, THEN THE ALTER-
NATIVE SYSTEM GRADED CONTRIBUTION RATE FOR THE GIVEN FISCAL  YEAR  SHALL

S. 2607--D                         117                        A. 3007--D

EQUAL THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATE-
LY  PRECEDING  FISCAL  YEAR  PLUS  ONE-HALF  PERCENTAGE POINT, PROVIDED,
HOWEVER, THAT IN NO EVENT SHALL THE ALTERNATIVE SYSTEM  GRADED  CONTRIB-
UTION RATE BE LESS THAN SEVENTEEN AND ONE-HALF PERCENT;
  (II)  IF  THE  SYSTEM  AVERAGE ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS AT LEAST SEVENTEEN AND ONE-HALF PERCENT AND EITHER EQUALS
THE ALTERNATIVE SYSTEM GRADED  CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY
PRECEDING  FISCAL YEAR OR EXCEEDS THE ALTERNATIVE SYSTEM GRADED CONTRIB-
UTION RATE  FOR  THE  IMMEDIATELY  PRECEDING  FISCAL  YEAR  BY  ONE-HALF
PERCENTAGE  POINT  OR  LESS, THEN THE ALTERNATIVE SYSTEM GRADED CONTRIB-
UTION RATE FOR THE GIVEN FISCAL YEAR  SHALL  EQUAL  THE  SYSTEM  AVERAGE
ACTUARIAL  CONTRIBUTION  RATE  FOR  SUCH FISCAL YEAR, PROVIDED, HOWEVER,
THAT IN NO EVENT SHALL THE ALTERNATIVE SYSTEM GRADED  CONTRIBUTION  RATE
BE LESS THAN SEVENTEEN AND ONE-HALF PERCENT;
  (III)  IF  THE  SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS LESS THAN SEVENTEEN AND ONE-HALF PERCENT AND GREATER THAN
THE ALTERNATIVE SYSTEM GRADED  CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY
PRECEDING  FISCAL  YEAR, THEN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE GIVEN FISCAL YEAR SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIB-
UTION RATE FOR SUCH FISCAL YEAR;
  (IV) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  IS SMALLER THAN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR  BY  MORE  THAN  ONE-HALF
PERCENTAGE  POINT,  THEN THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION RATE
FOR THE GIVEN FISCAL YEAR SHALL  EQUAL  THE  ALTERNATIVE  SYSTEM  GRADED
CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY  PRECEDING  FISCAL  YEAR MINUS
ONE-HALF PERCENTAGE POINT; AND
  (V) IF THE SYSTEM AVERAGE ACTUARIAL  CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  EITHER  EQUALS  THE ALTERNATIVE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY PRECEDING FISCAL YEAR OR IS  SMALLER  THAN  THE
ALTERNATIVE  SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECED-
ING FISCAL YEAR BY ONE-HALF PERCENTAGE POINT OR LESS, THEN THE  ALTERNA-
TIVE  SYSTEM  GRADED  CONTRIBUTION  RATE FOR THE GIVEN FISCAL YEAR SHALL
EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE FOR SUCH FISCAL YEAR.
  d. (1) For any given fiscal year for which an employer's average actu-
arial contribution rate exceeds the EMPLOYER graded  contribution  rate,
the  employer  shall pay to the retirement system an amount equal to the
employer's annual bill for such year or, in lieu of  paying  the  entire
annual  bill,  the  employer  may  pay an amount equal to the employer's
annual bill less all or a portion of the employer's amount eligible  for
amortization  for  the fiscal year. If in accordance with this paragraph
the employer's payment to the retirement system is less than the  entire
amount  of  the  employer's annual bill, then the difference between the
employer's annual bill, and the amount actually paid by the employer  to
the retirement system exclusive of any amount from the employer contrib-
ution  reserve  fund  applied to reduce the employer's payment, shall be
the amount amortized for the fiscal year. The amount amortized  for  the
fiscal  year  shall  be  paid  to  the retirement system in equal annual
installments over a ten-year period, with interest on the unpaid balance
at a rate determined by the comptroller which approximates a market rate
of return on taxable fixed rate securities with similar terms issued  by
comparable issuers, and with the first installment due in the immediate-
ly succeeding fiscal year.
  (1-A)  FOR ANY GIVEN FISCAL YEAR FOR WHICH AN EMPLOYER'S AVERAGE ACTU-
ARIAL CONTRIBUTION RATE EXCEEDS THE ALTERNATIVE SYSTEM  GRADED  CONTRIB-
UTION  RATE,  THE  EMPLOYER SHALL PAY TO THE RETIREMENT SYSTEM AN AMOUNT

S. 2607--D                         118                        A. 3007--D

EQUAL TO THE EMPLOYER'S ANNUAL BILL FOR SUCH YEAR OR, IN LIEU OF  PAYING
THE  ENTIRE  ANNUAL  BILL,  THE  EMPLOYER MAY PAY AN AMOUNT EQUAL TO THE
EMPLOYER'S ANNUAL BILL LESS ALL OR A PORTION OF  THE  EMPLOYER'S  AMOUNT
ELIGIBLE  FOR  AMORTIZATION  FOR  THE FISCAL YEAR. IF IN ACCORDANCE WITH
THIS PARAGRAPH THE EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM  IS  LESS
THAN  THE  ENTIRE AMOUNT OF THE EMPLOYER'S ANNUAL BILL, THEN THE DIFFER-
ENCE BETWEEN THE EMPLOYER'S ANNUAL BILL, AND THE AMOUNT ACTUALLY PAID BY
THE EMPLOYER TO THE RETIREMENT SYSTEM EXCLUSIVE OF ANY AMOUNT  FROM  THE
EMPLOYER  CONTRIBUTION  RESERVE  FUND  APPLIED  TO REDUCE THE EMPLOYER'S
PAYMENT, SHALL BE THE AMOUNT AMORTIZED FOR THE FISCAL YEAR.  THE  AMOUNT
AMORTIZED  FOR THE FISCAL YEAR SHALL BE PAID TO THE RETIREMENT SYSTEM IN
EQUAL ANNUAL INSTALLMENTS OVER A TWELVE YEAR PERIOD,  WITH  INTEREST  ON
THE  UNPAID  BALANCE AT A RATE DETERMINED BY THE COMPTROLLER WHICH SHALL
BE THE  TWELVE  YEAR  INTERPOLATED  RATE  BASED  ON  THE  MOST  RECENTLY
PUBLISHED  YIELD TO MATURITY OF A TEN YEAR AND TWENTY YEAR U.S. TREASURY
SECURITY PLUS ONE HUNDRED BASIS POINTS.
  (2) For any given fiscal year for which the system graded contribution
rate equals  or  exceeds  an  amortizing  employer's  average  actuarial
contribution  rate,  the amortizing employer shall pay to the retirement
system an amount equal to the employer's annual bill for such year  plus
the employer's graded payment for the fiscal year.
  (i)  If the amortizing employer's annual bill for the fiscal year does
not include an amount attributable to a  prior  amortization,  then  the
employer's  graded  payment shall be paid into the employer contribution
reserve fund provided for in subdivision e of this section and  credited
to an account within such fund established for the employer.
  (ii)  If  the  amortizing  employer's  annual bill for the fiscal year
includes an amount attributable to a prior amortization, the  employer's
graded  payment  shall  be  used  first  to  eliminate the amount of the
employer's unpaid prior amortization  balances  in  chronological  order
starting with oldest prior amortization balance. When in any fiscal year
the  employer's  graded  payment  eliminates  all  balances  owed on the
employer's prior amortizations, any remaining portion of the  employer's
graded  payment  for such fiscal year, and the employer's graded payment
in any subsequent fiscal year in which the amortizing  employer  has  no
unpaid prior amortizations, shall be paid into the employer contribution
reserve  fund provided for in subdivision e of this section and credited
to an account within such fund established for the employer.
  (2-A) FOR ANY GIVEN FISCAL YEAR FOR WHICH THE ALTERNATIVE SYSTEM GRAD-
ED CONTRIBUTION RATE EQUALS OR EXCEEDS AN ALTERNATIVE AMORTIZING EMPLOY-
ER'S AVERAGE ACTUARIAL CONTRIBUTION  RATE,  THE  ALTERNATIVE  AMORTIZING
EMPLOYER  SHALL  PAY  TO  THE  RETIREMENT  SYSTEM AN AMOUNT EQUAL TO THE
EMPLOYER'S ANNUAL BILL FOR SUCH YEAR PLUS THE EMPLOYER'S GRADED  PAYMENT
FOR THE FISCAL YEAR.
  (I)  IF  THE  ALTERNATIVE  AMORTIZING  EMPLOYER'S  ANNUAL BILL FOR THE
FISCAL YEAR DOES NOT INCLUDE AN AMOUNT ATTRIBUTABLE TO A  PRIOR  AMORTI-
ZATION,  THEN  THE  EMPLOYER'S  GRADED  PAYMENT  SHALL  BE PAID INTO THE
EMPLOYER CONTRIBUTION RESERVE FUND PROVIDED FOR IN SUBDIVISION E OF THIS
SECTION AND CREDITED TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR  THE
EMPLOYER.
  (II)  IF  THE  ALTERNATIVE  AMORTIZING  EMPLOYER'S ANNUAL BILL FOR THE
FISCAL YEAR INCLUDES AN AMOUNT ATTRIBUTABLE TO A PRIOR AMORTIZATION, THE
EMPLOYER'S GRADED PAYMENT SHALL BE USED FIRST TO ELIMINATE THE AMOUNT OF
THE EMPLOYER'S UNPAID PRIOR AMORTIZATION BALANCES IN CHRONOLOGICAL ORDER
STARTING WITH OLDEST PRIOR AMORTIZATION BALANCE. WHEN IN ANY FISCAL YEAR
THE EMPLOYER'S GRADED  PAYMENT  ELIMINATES  ALL  BALANCES  OWED  ON  THE

S. 2607--D                         119                        A. 3007--D

EMPLOYER'S  PRIOR AMORTIZATIONS, ANY REMAINING PORTION OF THE EMPLOYER'S
GRADED PAYMENT FOR SUCH FISCAL YEAR, AND THE EMPLOYER'S  GRADED  PAYMENT
IN  ANY  SUBSEQUENT  FISCAL YEAR IN WHICH THE AMORTIZING EMPLOYER HAS NO
UNPAID PRIOR AMORTIZATIONS, SHALL BE PAID INTO THE EMPLOYER CONTRIBUTION
RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (3) Nothing in this subdivision shall be construed as  prohibiting  an
employer from pre-paying any prior amortization.
  e.  (1)  Notwithstanding any law to the contrary, there shall be main-
tained separate and apart from the other funds of the retirement  system
an  employer contribution reserve fund, the assets of which shall not be
used or invested in a manner contrary to the provisions of this subdivi-
sion. The fund shall consist of all employer contributions  required  to
be  deposited  into  the fund pursuant to subdivision d of this section.
Within such fund there shall be a separate  account  for  each  employer
making such contributions and payments.
  (2)  For  any  given  fiscal  year  for which (i) the system actuarial
contribution rate exceeds seventeen and one-half percent of payroll, and
(ii) for which an employer's average actuarial contribution rate exceeds
the graded contribution rate OR THE ALTERNATIVE SYSTEM  GRADED  CONTRIB-
UTION RATE, the balance in the employer's account within such fund shall
be applied to reduce the employer's payment to the retirement system for
such  fiscal  year in an amount not to exceed the difference between the
employer's actuarial contribution and the employer's graded contribution
for the fiscal year.
  (3) Notwithstanding the provisions of paragraph two of  this  subdivi-
sion, if at the close of any given fiscal year the balance of an employ-
er's  account within the fund exceeds one hundred percent of the employ-
er's payroll for such fiscal year, the excess shall be applied to reduce
the employer's payment to the retirement system for the next  succeeding
fiscal year.
  (4)  The  assets  of  the fund shall be invested in only the following
types of investments:
  (i) obligations of the United States  of  America  or  in  obligations
guaranteed by agencies of the United States of America where the payment
of principal and interest are guaranteed by the United States of America
or in obligations of the state of New York;
  (ii)  general  obligation bonds and notes of any state other than this
state, provided that such bonds and notes receive the highest rating  of
at least one independent rating agency;
  (iii)  obligations of, or instruments issued by or fully guaranteed as
to principal and interest by,  any  agency  or  instrumentality  of  the
United  States acting pursuant to a grant of authority from the congress
of the United States, including, but not limited to,  any  federal  home
loan bank or banks, the Tennessee valley authority, the federal national
mortgage association, the federal home loan mortgage corporation and the
United States postal service;
  (iv)  certificate  of deposits that are fully secured by the issuer by
depositing with the comptroller direct or indirect  obligations  of  the
United States or its agencies or a letter of credit issued by the Feder-
al Home Loan Bank; and
  (v)  obligations  of  any  corporation organized under the laws of any
state in the United States maturing  within  two  hundred  seventy  days
provided  that  such obligations receive the highest rating of two inde-
pendent rating services designated by the comptroller.

S. 2607--D                         120                        A. 3007--D

  (5) At the close of each fiscal year, the amount of interest and earn-
ings attributable to each employer's account shall be  computed  by  the
actuary  and  certified  to  the comptroller, who shall thereupon credit
each employer's account in accordance therewith.
  (6) The assets of the fund shall be excluded from the annual valuation
of  the  assets  and  liabilities  of the funds of the retirement system
required by section three hundred eleven of this title.  The  assets  of
the fund shall not finance increases in pension benefits.
  S  4.  Section  521  of  the  education law is amended by adding a new
subdivision 3 to read as follows:
  3. STABLE CONTRIBUTION OPTION FOR PARTICIPATING EDUCATIONAL  EMPLOYERS
FOR  THE  TWO THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN PLAN YEAR. A. IN
ADDITION TO THE DEFINITIONS IN SECTION FIVE HUNDRED ONE OF THIS ARTICLE,
WHEN USED IN THIS SUBDIVISION:
  (1) "PARTICIPATING EDUCATIONAL EMPLOYER" SHALL MEAN A SCHOOL  DISTRICT
OR  BOARD  OF  COOPERATIVE  EDUCATIONAL SERVICES WHICH ELECTS TO PAY THE
STABLE CONTRIBUTION AMOUNT IN THE MANNER PROVIDED IN THIS SUBDIVISION;
  (2) "STABLE CONTRIBUTION AMOUNT" SHALL MEAN AN  AMOUNT  EQUAL  TO  THE
STABLE  CONTRIBUTION  RATE  MULTIPLIED  BY  THE  PENSIONABLE SALARY BASE
(EXCLUSIVE  OF  PAYMENTS  FOR  GROUP  TERM  LIFE  INSURANCE,  DEFICIENCY
CONTRIBUTIONS,  ADJUSTMENTS RELATING TO PRIOR FISCAL YEARS' OBLIGATIONS,
OBLIGATIONS PERTAINING TO RETIREMENT INCENTIVES OR ANY OTHER OBLIGATIONS
THAT A PARTICIPATING EDUCATIONAL EMPLOYER IS  PERMITTED  TO  PAY  ON  AN
AMORTIZED BASIS);
  (3) "STABLE CONTRIBUTION RATE" SHALL MEAN FOURTEEN PERCENT FOR THE TWO
THOUSAND THIRTEEN - TWO THOUSAND FOURTEEN PLAN YEAR AND THE TWO THOUSAND
FOURTEEN - TWO THOUSAND FIFTEEN PLAN YEAR AND THE RATE AS ADOPTED BY THE
RETIREMENT BOARD IN ACCORDANCE WITH PARAGRAPH H OF THIS SUBDIVISION; AND
  (4)  "DEFERRED  EMPLOYER  CONTRIBUTION  AMOUNT"  SHALL  MEAN AN AMOUNT
ADEQUATE TO FUND THE BENEFITS FOR ACTIVE AND RETIRED MEMBERS  ASSOCIATED
WITH  SUCH  PARTICIPATING  EDUCATIONAL  EMPLOYER  HAD SUCH PARTICIPATING
EDUCATIONAL EMPLOYER NOT ELECTED THE  PROVISIONS  OF  THIS  SUBDIVISION.
SUCH  DEFERRED EMPLOYER CONTRIBUTION AMOUNT SHALL BE CALCULATED FOR EACH
YEAR OF PARTICIPATION IN THE STABLE CONTRIBUTION OPTION WITH  ASSOCIATED
INTEREST  DETERMINED  SPECIFIC  TO  EACH APPLICABLE PLAN YEAR'S DEFERRED
AMOUNT.
  B. NOTWITHSTANDING THE PROVISIONS OF THIS CHAPTER OR ANY OTHER LAW  TO
THE  CONTRARY,  THE  RETIREMENT  BOARD,  IN  ITS  DISCRETION, SHALL HAVE
AUTHORITY TO IMPLEMENT  THE  PROVISIONS  OF  THIS  SUBDIVISION.  IF  THE
RETIREMENT BOARD ELECTS TO IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION,
THE  PROVISIONS  SHALL APPLY TO THE PAYMENT OF PARTICIPATING EDUCATIONAL
EMPLOYER CONTRIBUTIONS IN THE PLAN YEAR COMMENCING JULY FIRST, TWO THOU-
SAND THIRTEEN, FOR THE PENSION BILL PAID ON SEPTEMBER FIFTEENTH, OCTOBER
FIFTEENTH, AND NOVEMBER FIFTEENTH OF TWO THOUSAND FOURTEEN, AND FOR  THE
SUBSEQUENT  SIX PLAN YEARS. IF A PARTICIPATING EDUCATIONAL EMPLOYER DOES
NOT ELECT THE STABLE CONTRIBUTION OPTION IN THE FISCAL  YEAR  COMMENCING
ON  JULY  FIRST,  TWO  THOUSAND  THIRTEEN  FOR  THE PENSION BILL PAID ON
SEPTEMBER FIFTEENTH, OCTOBER FIFTEENTH, AND NOVEMBER  FIFTEENTH  OF  TWO
THOUSAND FOURTEEN, IT SHALL NOT BE ELIGIBLE TO ELECT THE STABLE CONTRIB-
UTION OPTION IN ANY SUCCEEDING PLAN YEAR.
  C.  FOR  EACH  OF THE SEVEN PLAN YEARS TO WHICH THE PROVISIONS OF THIS
SUBDIVISION APPLY, THE RETIREMENT BOARD SHALL USE A STABLE  CONTRIBUTION
RATE  ESTABLISHED  BY THE RETIREMENT BOARD FOR PARTICIPATING EDUCATIONAL
EMPLOYERS.
  D. IF THE RETIREMENT BOARD, IN ITS  DISCRETION,  DECIDES  TO  ADOPT  A
STABLE  CONTRIBUTION OPTION PURSUANT TO THIS SUBDIVISION, THE RETIREMENT

S. 2607--D                         121                        A. 3007--D

BOARD SHALL DETERMINE THE STABLE CONTRIBUTION AMOUNT IN EACH  PLAN  YEAR
FOR A PARTICIPATING EDUCATIONAL EMPLOYER PURSUANT TO SUBPARAGRAPH TWO OF
PARAGRAPH  A  OF THIS SUBDIVISION. SUCH STABLE CONTRIBUTION AMOUNT SHALL
BE  IN  LIEU  OF  A  PARTICIPATING  EDUCATIONAL  EMPLOYER'S  ACTUARIALLY
REQUIRED CONTRIBUTION RATE OF NORMAL  AND  ADMINISTRATIVE  CONTRIBUTIONS
PURSUANT TO SECTIONS FIVE HUNDRED SEVENTEEN AND FIVE HUNDRED NINETEEN OF
THIS ARTICLE FOR THE PLAN YEAR COMMENCING JULY FIRST, TWO THOUSAND THIR-
TEEN, AND FOR THE NEXT SIX SUBSEQUENT PLAN YEARS.
  E.  ANY  PARTICIPATING  EDUCATIONAL  EMPLOYER  WHICH ELECTS TO PAY THE
STABLE CONTRIBUTION AMOUNT PURSUANT TO THIS SUBDIVISION  SHALL  PAY  THE
AMOUNT BASED ON THE STABLE CONTRIBUTION RATE FOR A PERIOD OF SEVEN YEARS
AND  SUCH OPTION SHALL BE AVAILABLE TO PARTICIPATING EDUCATIONAL EMPLOY-
ERS FROM THE TWO THOUSAND THIRTEEN - TWO  THOUSAND  FOURTEEN  PLAN  YEAR
THROUGH  THE  TWO  THOUSAND NINETEEN - TWO THOUSAND TWENTY PLAN YEAR. IN
THE SIXTH PLAN YEAR, THE TWO THOUSAND EIGHTEEN - TWO  THOUSAND  NINETEEN
PLAN  YEAR,  THE PARTICIPATING EDUCATIONAL EMPLOYER SHALL PAY THE STABLE
CONTRIBUTION RATE  AND,  IN  ADDITION,  COMMENCE  PAYMENT  FOR  DEFERRED
EMPLOYER  CONTRIBUTIONS  IN ACCORDANCE WITH PARAGRAPH J OF THIS SUBDIVI-
SION.  COMMENCING WITH THE PLAN YEAR BEGINNING JULY FIRST, TWO  THOUSAND
TWENTY,  THE  PARTICIPATING EDUCATIONAL EMPLOYER SHALL RESUME PAYMENT OF
THE ACTUARIALLY REQUIRED CONTRIBUTION RATE OF NORMAL AND  ADMINISTRATIVE
CONTRIBUTIONS  PURSUANT  TO  SECTIONS  FIVE  HUNDRED  SEVENTEEN AND FIVE
HUNDRED NINETEEN OF THIS ARTICLE  AND,  IN  ADDITION,  ANY  PAYMENT  FOR
DEFERRED  EMPLOYER  CONTRIBUTION AMOUNTS IN ACCORDANCE WITH PARAGRAPHS J
AND K OF THIS SUBDIVISION.
  F. A PARTICIPATING EDUCATIONAL EMPLOYER PAYING A  STABLE  CONTRIBUTION
AMOUNT  SHALL  REMIT, COMMENCING WITH THE JULY FIRST, TWO THOUSAND THIR-
TEEN PLAN YEAR, AN AMOUNT DETERMINED BY THE RETIREMENT BOARD  BY  ADDING
THE FOLLOWING TWO AMOUNTS TOGETHER:
  (1)  THE STABLE CONTRIBUTION AMOUNT CALCULATED PURSUANT TO THIS SUBDI-
VISION; AND
  (2) PAYMENTS FOR  GROUP  TERM  LIFE  INSURANCE,  DEFICIENCY  PAYMENTS,
ADJUSTMENTS  RELATING TO PRIOR FISCAL YEARS' OBLIGATIONS AND OBLIGATIONS
PERTAINING TO RETIREMENT INCENTIVES OR  ANY  OTHER  OBLIGATIONS  THAT  A
PARTICIPATING  EDUCATIONAL  EMPLOYER IS PERMITTED TO PAY ON AN AMORTIZED
BASIS.
  G. THE STABLE CONTRIBUTION AMOUNT MUST BE PAID IN FULL BY  PARTICIPAT-
ING  EDUCATIONAL  EMPLOYERS  ON  THE  DATES  SPECIFIED IN PARAGRAPH H OF
SUBDIVISION TWO OF THIS SECTION.
  H. PRIOR TO JULY FIRST, TWO THOUSAND FIFTEEN AND JULY FIRST, TWO THOU-
SAND SEVENTEEN THE RETIREMENT BOARD IS AUTHORIZED TO EVALUATE THE STABLE
CONTRIBUTION RATE USED TO CALCULATE PARTICIPATING  EDUCATIONAL  EMPLOYER
STABLE CONTRIBUTION AMOUNTS. SUCH EVALUATION SHALL BE BASED ON A PROJEC-
TION  OF  ASSETS  AND  LIABILITIES SO AS TO ENSURE THAT CONTRIBUTIONS BY
PARTICIPATING EDUCATIONAL EMPLOYERS  WHICH  PARTICIPATE  IN  THE  STABLE
CONTRIBUTION OPTION ARE ADEQUATE TO ENSURE THAT SYSTEM ASSETS ARE SUFFI-
CIENT  TO  FUND  BENEFITS FOR ACTIVE AND RETIRED MEMBERS. THE RETIREMENT
BOARD IS AUTHORIZED TO INCREASE THE STABLE CONTRIBUTION RATE  BY  UP  TO
TWO  PERCENTAGE  POINTS  ON JULY FIRST, TWO THOUSAND FIFTEEN AND ON JULY
FIRST, TWO THOUSAND SEVENTEEN.  THE  REVISED  STABLE  CONTRIBUTION  RATE
RESULTING  FROM  THE  FOREGOING EVALUATIONS AND JULY FIRST, TWO THOUSAND
FIFTEEN AND JULY FIRST, TWO THOUSAND SEVENTEEN STABLE RATE INCREASES MAY
NOT, IN COMBINATION, EXCEED EIGHTEEN PERCENT. THE  RETIREMENT  BOARD  IS
AUTHORIZED  TO  DECREASE THE STABLE CONTRIBUTION RATE, IF WARRANTED, BUT
IN NO EVENT SHALL THE STABLE CONTRIBUTION RATE  BE  LESS  THAN  FOURTEEN
PERCENT.

S. 2607--D                         122                        A. 3007--D

  I. A PARTICIPATING EDUCATIONAL EMPLOYER MAY ELECT TO TERMINATE PARTIC-
IPATION  IN  THE  STABLE  CONTRIBUTION  OPTION AND RESUME PAYMENT OF THE
ACTUARIALLY REQUIRED CONTRIBUTION OF NORMAL AND ADMINISTRATIVE  CONTRIB-
UTIONS  IN  ACCORDANCE  WITH  SECTIONS  FIVE  HUNDRED SEVENTEEN AND FIVE
HUNDRED  NINETEEN  OF THIS ARTICLE. PROVIDED, HOWEVER, THAT SUCH PARTIC-
IPATING EDUCATIONAL EMPLOYER WHICH  ELECTS  TO  TERMINATE  PARTICIPATION
SHALL MAKE A RECONCILIATION CONTRIBUTION TO THE RETIREMENT SYSTEM, AT AN
AMOUNT  TO  BE  DETERMINED BY THE RETIREMENT BOARD, ADEQUATE TO FUND THE
BENEFITS FOR ACTIVE AND RETIRED MEMBERS ASSOCIATED WITH SUCH PARTICIPAT-
ING EDUCATIONAL EMPLOYER HAD SUCH PARTICIPATING EDUCATIONAL EMPLOYER NOT
ELECTED THE PROVISIONS OF THIS SUBDIVISION. SUCH RECONCILIATION CONTRIB-
UTION SHALL BE MADE OVER A PERIOD NOT TO EXCEED FIVE YEARS AND SHALL  BE
MADE IN ADDITION TO THE NORMAL AND ADMINISTRATIVE CONTRIBUTIONS PURSUANT
TO  SECTIONS  FIVE  HUNDRED  SEVENTEEN AND FIVE HUNDRED NINETEEN OF THIS
ARTICLE FOR THE  PLAN  YEAR  IN  WHICH  SUCH  PARTICIPATING  EDUCATIONAL
EMPLOYER  CHOOSES  TO  RESUME  PAYMENT  OF THE NORMAL AND ADMINISTRATIVE
CONTRIBUTIONS PURSUANT TO  SECTIONS  FIVE  HUNDRED  SEVENTEEN  AND  FIVE
HUNDRED  NINETEEN  OF  THIS ARTICLE. FOR THE PURPOSES OF DETERMINING THE
RECONCILIATION CONTRIBUTION AMOUNT, THE RETIREMENT  BOARD  SHALL  ASSUME
INTEREST  ON  THE  DEFERRED EMPLOYER CONTRIBUTION AMOUNT AT A RATE WHICH
APPROXIMATES THE MONTHLY AVERAGE YIELD ON UNITED STATES TREASURY SECURI-
TIES AT TEN-YEAR CONSTANT MATURITY FOR THE TWELVE-MONTH PERIOD PRECEDING
AUGUST FIRST OF EACH YEAR PLUS ONE PERCENTAGE POINT. THE  INTEREST  RATE
ASSOCIATED  WITH  SUCH  DEFERRED  EMPLOYER  CONTRIBUTION AMOUNT SHALL BE
SPECIFIC TO EACH APPLICABLE PLAN YEAR'S DEFERRED AMOUNT.
  J. IN THE SIXTH PLAN YEAR, COMMENCING JULY FIRST, TWO  THOUSAND  EIGH-
TEEN,  ALL PARTICIPATING EDUCATIONAL EMPLOYERS HAVING ELECTED THE STABLE
CONTRIBUTION OPTION SHALL CONTINUE TO CONTRIBUTE THE STABLE CONTRIBUTION
AMOUNT TO THE RETIREMENT SYSTEM AND REMIT TO THE RETIREMENT  SYSTEM  THE
ACCRUED  DEFERRED  EMPLOYER  CONTRIBUTIONS ACCUMULATED IN THE FIRST FIVE
PLAN YEARS. THE STABLE PAYMENT OF  THE  DEFERRED  EMPLOYER  CONTRIBUTION
ACCRUED  BY  THE PARTICIPATING EDUCATIONAL EMPLOYER SHALL BE PAID TO THE
RETIREMENT SYSTEM IN EQUAL ANNUAL INSTALLMENTS OVER A FIVE-YEAR  PERIOD,
WITH  INTEREST  ON THE UNPAID PORTION TO BE BASED ON THE MONTHLY AVERAGE
YIELD ON UNITED STATES TREASURY SECURITIES AT A TEN-YEAR CONSTANT  MATU-
RITY  FOR  THE  TWELVE-MONTH  PERIOD PRECEDING AUGUST FIRST OF EACH YEAR
PLUS ONE PERCENTAGE  POINT.  THE  INTEREST  RATE  ASSOCIATED  WITH  SUCH
DEFERRED  EMPLOYER  CONTRIBUTION AMOUNT SHALL BE SPECIFIC TO THE RATE AS
MEASURED ON AUGUST FIRST OF THE APPLICABLE PLAN YEAR  TO  SUCH  DEFERRED
AMOUNT.    PAYMENTS OF THE STABLE INSTALLMENTS SHALL BE MADE IN THE SAME
MANNER AS OTHER EMPLOYER CONTRIBUTIONS AS PRESCRIBED  IN  THIS  ARTICLE.
NOTHING  IN  THIS  SUBDIVISION  SHALL  BE  CONSTRUED AS PROHIBITING SUCH
PARTICIPATING EDUCATIONAL EMPLOYER FROM MAKING A RECONCILIATION CONTRIB-
UTION IN ACCORDANCE WITH PARAGRAPH I OF THIS SUBDIVISION.
  K. IN THE EIGHTH PLAN YEAR, COMMENCING JULY FIRST, TWO THOUSAND  TWEN-
TY,  ALL  PARTICIPATING  EDUCATIONAL EMPLOYERS HAVING ELECTED THE STABLE
CONTRIBUTION OPTION SHALL RESUME PAYMENT  OF  THE  ACTUARIALLY  REQUIRED
CONTRIBUTION  RATE OF NORMAL AND ADMINISTRATIVE CONTRIBUTIONS IN ACCORD-
ANCE WITH SECTION FIVE HUNDRED SEVENTEEN AND FIVE  HUNDRED  NINETEEN  OF
THIS  ARTICLE.  ADDITIONALLY, SUCH EMPLOYER WILL REMIT TO THE RETIREMENT
SYSTEM THE ACCRUED DEFERRED EMPLOYER  CONTRIBUTIONS  ACCUMULATED  DURING
THE  PLAN  YEARS  COMMENCING  JULY FIRST, TWO THOUSAND EIGHTEEN AND JULY
FIRST, TWO THOUSAND NINETEEN OF  THE  STABLE  CONTRIBUTION  OPTION.  THE
STABLE  PAYMENT  OF  THE  DEFERRED  EMPLOYER CONTRIBUTION ACCRUED BY THE
PARTICIPATING EDUCATIONAL EMPLOYER  SHALL  BE  PAID  TO  THE  RETIREMENT
SYSTEM  IN EQUAL ANNUAL INSTALLMENTS OVER A FIVE-YEAR PERIOD WITH INTER-

S. 2607--D                         123                        A. 3007--D

EST ON THE UNPAID PORTION TO BE BASED ON THE MONTHLY  AVERAGE  YIELD  ON
UNITED  STATES  TREASURY  SECURITIES AT A TEN-YEAR CONSTANT MATURITY FOR
THE TWELVE-MONTH PERIOD PRECEDING AUGUST FIRST OF  EACH  YEAR  PLUS  ONE
PERCENTAGE  POINT.  THE  INTEREST  RATE  ASSOCIATED  WITH  SUCH DEFERRED
EMPLOYER CONTRIBUTION AMOUNT SHALL BE SPECIFIC TO THE RATE  AS  MEASURED
ON  AUGUST  FIRST  OF  THE APPLICABLE PLAN YEAR TO SUCH DEFERRED AMOUNT.
PAYMENTS OF THE STABLE INSTALLMENTS SHALL BE MADE IN THE SAME MANNER  AS
OTHER  EMPLOYER  CONTRIBUTIONS AS PRESCRIBED IN THIS ARTICLE. NOTHING IN
THIS SUBDIVISION SHALL BE CONSTRUED AS  PROHIBITING  SUCH  PARTICIPATING
EDUCATIONAL  EMPLOYER  FROM  MAKING  A  RECONCILIATION  CONTRIBUTION  IN
ACCORDANCE WITH PARAGRAPH I OF THIS SUBDIVISION.
  L. NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, IF THE  RETIRE-
MENT  BOARD DECIDES TO ADOPT A STABLE CONTRIBUTION OPTION, IN ACCORDANCE
WITH THIS SUBDIVISION, AND THE FUNDED STATUS OF  THE  RETIREMENT  SYSTEM
REACHES  A  THRESHOLD  BELOW  EIGHTY PERCENT AT THE END OF ANY PLAN YEAR
DURING THE SEVEN PLAN YEAR TERM OF THIS OPTION, THE OPTION  SHALL  CEASE
AND  PARTICIPATING  EDUCATIONAL  EMPLOYERS  WHO  HAVE ELECTED THE STABLE
CONTRIBUTION OPTION SHALL RESUME PAYMENT  OF  THE  ACTUARIALLY  REQUIRED
CONTRIBUTION  RATE OF NORMAL AND ADMINISTRATIVE CONTRIBUTIONS IN ACCORD-
ANCE WITH SECTION FIVE HUNDRED SEVENTEEN AND FIVE  HUNDRED  NINETEEN  OF
THIS  ARTICLE.  ADDITIONALLY,  SUCH  EMPLOYER WILL MAKE A RECONCILIATION
CONTRIBUTION TO THE RETIREMENT SYSTEM, AT AN AMOUNT TO BE DETERMINED  BY
THE  RETIREMENT  BOARD,  ADEQUATE  TO  FUND  THE BENEFITS FOR ACTIVE AND
RETIRED MEMBERS ASSOCIATED WITH SUCH PARTICIPATING EDUCATIONAL  EMPLOYER
HAD  SUCH  PARTICIPATING EDUCATIONAL EMPLOYER NOT ELECTED THE PROVISIONS
OF THIS SECTION. THE  PAYMENT  OF  THE  DEFERRED  EMPLOYER  CONTRIBUTION
ACCRUED  BY  THE PARTICIPATING EDUCATIONAL EMPLOYER SHALL BE PAID TO THE
RETIREMENT SYSTEM IN EQUAL ANNUAL INSTALLMENTS OVER A  FIVE-YEAR  PERIOD
WITH  INTEREST  ON THE UNPAID PORTION TO BE BASED ON THE MONTHLY AVERAGE
YIELD ON UNITED STATES TREASURY SECURITIES AT A TEN-YEAR CONSTANT  MATU-
RITY  FOR  THE  TWELVE-MONTH  PERIOD PRECEDING AUGUST FIRST OF EACH YEAR
PLUS ONE PERCENTAGE  POINT.  THE  INTEREST  RATE  ASSOCIATED  WITH  SUCH
DEFERRED  EMPLOYER  CONTRIBUTION AMOUNT SHALL BE SPECIFIC TO THE RATE AS
MEASURED ON AUGUST FIRST OF THE APPLICABLE PLAN YEAR  TO  SUCH  DEFERRED
AMOUNT.  PAYMENTS  OF  THE STABLE INSTALLMENTS SHALL BE MADE IN THE SAME
MANNER AS OTHER EMPLOYER CONTRIBUTIONS AS PRESCRIBED IN THIS ARTICLE.
  M. THE RETIREMENT BOARD IS AUTHORIZED TO PROMULGATE  RULES  AND  REGU-
LATIONS FOR IMPLEMENTATION OF THIS SUBDIVISION.
  S 5. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend Section 19-a and Section 319-a of the Retirement
and Social Security Law as it pertains to employer bills of the New York
State and Local Employees Retirement System (ERS) and the New York State
and  Local  Police and Fire Retirement System (PFRS). Eligible employers
would be  allowed  to  irrevocably  elect  an  alternative  amortization
program which specifies:
  1.  The  graded  rate for contributions payable in fiscal years ending
2014 and 2015 will be 12.0% for employers in  the  New  York  State  and
Local  Employees  Retirement System (ERS) and 20.0% for employers in the
New York State and Local Police and Fire Retirement System (PFRS).
  2. The graded rate will move toward the actuarially required  rate  by
no more than 0.5% per year from the prior year's graded rate.
  3.  Electing employers may amortize contributions based on the differ-
ence between the actuarially required rate and the graded rate over a 12
year period at the 10 year treasury rate interpolated to 12  years  plus
100 basis points.

S. 2607--D                         124                        A. 3007--D

  This  bill puts in place a program that allows ERS and PFRS employers,
if they choose to participate, to amortize a  larger  portion  of  their
bill  with  their  respective  Retirement System than they are currently
eligible under Section 19-a and Section 319-a. If  they  do  this,  then
when  rates  are falling below certain levels and they have paid off all
outstanding amortizations, the employer will be required  to  pay  addi-
tional  monies  into  a  reserve  fund  that  will be used when employer
contribution rates begin to rise in the future.
  If this bill is enacted, we estimate  that  there  would  be  a  small
administrative  cost  to  the  System  to revise the current billing and
business communication processes.
  Summary of relevant resources:
  Data: March 31, 2012 Actuarial Year End  File  with  distributions  of
membership  and  other  statistics  displayed  in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions and Methods: 2010, 2011 and  2012  Annual  Report  to  the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market  Assets and GASB Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary  Informa-
tion.
  Valuations of Benefit Liabilities and Actuarial Assets:  summarized in
the 2012 Actuarial Valuations report.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained.
  This  estimate,  dated March 19, 2013 and intended for use only during
the 2013 Legislative Session, is Fiscal Note No.  2013-70,  prepared  by
the Actuary for the ERS and PFRS.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This  fiscal  note was requested by the New York State Division of the
Budget. Pursuant to Section 50 of the Legislative Law, the  fiscal  note
that must be appended in its entirety to this bill is:
  This  bill  would  amend  the Education Law to add an optional payment
program for payment of employer contributions  to  the  New  York  State
Teachers'  Retirement System (NYSTRS). The bill would add a new subdivi-
sion 3 to Section 521 which would permit the Retirement Board  to  allow
employers  of  members  of  NYSTRS to elect to pay a stable contribution
rate in lieu of the annually  calculated  actuarially-required  contrib-
utions due for each of the next seven plan years beginning with the July
first,  two thousand thirteen through June thirtieth, two thousand four-
teen plan year.
  The stable contribution rate shall be fourteen percent of such employ-
er's pensionable compensation paid during the plan year, for the term of
the program beginning with the July first, two thousand thirteen through
June thirtieth, two thousand fourteen plan year.  This  stable  contrib-
ution rate shall be exclusive of payments for group term life insurance,
deficiency  contributions,  adjustments  relating to prior fiscal years'
obligations, obligations pertaining  to  retirement  incentives  or  any
other  obligation  that the employer is permitted to pay on an amortized
basis.
  The Retirement Board is authorized to increase the stable contribution
rate by up to two percentage points in plan years beginning July  first,
two  thousand fifteen and July first, two thousand seventeen. The stable
contribution rate may not exceed eighteen percent and it may not be less
than fourteen percent.

S. 2607--D                         125                        A. 3007--D

  In the sixth year, the fiscal year commencing July first, two thousand
eighteen, employers who elected program participation shall continue  to
contribute the stable contribution rate and in addition shall contribute
a  stable  payment  to  the  retirement  system  to pay back the accrued
deferred employer contributions accumulated in the first five years. The
stable  payment  shall  be paid to the retirement system in equal annual
installments over a  five-year  period,  with  interest  on  the  unpaid
portion to be based on the monthly average yield on United States treas-
ury  securities  at  a  ten-year  constant maturity for the twelve month
period preceding August first of each year plus one percentage point.
  In the eighth year, the fiscal year commencing July first,  two  thou-
sand  twenty,  all  employers having elected program participation shall
resume payment of the annually calculated actuarially-required  contrib-
ution.  Additionally there will be a payment to the retirement system to
pay  back  the  deferred employer contributions accumulated in years six
and seven. The stable payment shall be paid to the retirement system  in
equal  annual  installments over a five-year period with interest on the
unpaid portion to be based on the monthly average yield on United States
treasury securities at a ten-year constant maturity for the twelve month
period preceding August first of each year plus one percentage point.
  An employer must elect to participate in the program in the plan  year
beginning July first, two thousand thirteen. An employer may subsequent-
ly elect to terminate participation in the program and resume payment of
the  annually calculated actuarially-required contribution. Additionally
such employer will make a reconciliation payment intended  to  fund  any
deficiencies that have accrued along with interest due to the actuarial-
ly-required  contributions  being in excess of the contributions paid by
the employer during participation in  the  program.  The  reconciliation
payment shall be made over a period not to exceed five years.
  Should  the  funded  status  of the retirement system become less than
eighty percent at the end of any plan year, the program  shall  end  and
employers  who  have  elected  the program shall contribute the annually
calculated actuarially-required contributions  in  the  succeeding  plan
year, along with a reconciliation payment intended to fund any deficien-
cies  that  have  accrued along with interest due to the actuarially-re-
quired contributions being in excess of the contributions  paid  by  the
employer during participation in the program. The reconciliation payment
shall be made over a period not to exceed five years.
  Cost  Impact  - This bill would permit a change in the manner in which
employer contributions are to be collected over the  next  seven  years.
Employer  contributions  would  continue  to be determined in accordance
with an annual actuarial valuation, but employers who elect  to  partic-
ipate would be permitted to defer payment of a portion of their required
contribution  above a fixed amount (14% increased by 2.0% in years three
and five, as needed, to a maximum of 18%). The annual deficiency amounts
will be accumulated with an interest rate to be  based  on  the  monthly
average  yield  on  United  States  treasury  securities  at  a ten-year
constant maturity plus one percentage point. Deficiencies accumulated in
program years one through five will be paid back over a five year period
with the first payment due for the fiscal year beginning July first, two
thousand eighteen and deficiencies accumulated in program years six  and
seven  will  be paid back over a five year period with the first payment
due for the fiscal year beginning July first, two thousand twenty. There
could be a cost to the System to the extent that the System  could  have
achieved  a  higher investment return on the deficiency amounts than the
interest that employers will pay.

S. 2607--D                         126                        A. 3007--D

  According to a stochastic analysis of this proposed plan,  the  proba-
bility  of  System  failure,  with failure being defined as the System's
funded ratio falling to 30% or lower, is only slightly higher under this
proposal than it is under the current annually adjusting actuarial-fund-
ing  method,  with  both  probabilities  less  than  1.5%. This analysis
assumes contributions are made as required and after the seven years the
System returns to collecting the  annual  actuarially-required  employer
contribution on time and in full from all employers.
  The  actuarially-required  employer  contribution  rates which will be
applicable to the next seven fiscal years are as yet unknown, except for
the first year. The actuarially-determined  rate  to  be  applicable  to
member compensation paid during the '13-'14 plan year is estimated to be
equal to 16.25%.
  The  source  of  this  estimate is Fiscal Note 2013-15 dated March 19,
2013 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2013 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.

                                 PART CC

  Section 1. State agencies including but not limited to the  department
of  health,  the office of children and family services and the division
of criminal justice services are authorized to enter into contracts  for
services  and expenses of pay for success initiatives to improve program
outcomes in the program areas of health care, early  childhood  develop-
ment,  child welfare and public safety. Such services and expenses shall
include contract payments to intermediary organizations responsible  for
raising  funds  to  support  project  costs and managing the delivery of
services by direct service providers, contract payments for the  verifi-
cation  and  validation of program outcomes achieved, and payments based
on the achievement and validation of  specific  performance  targets  as
agreed upon in contracts and other agreements that are a part of pay for
success  initiatives,  subject  to appropriation. Intermediary organiza-
tions shall be  selected  through  a  competitive  process  pursuant  to
sections  112  and 163 of the state finance law and awarded according to
best value. Direct service providers shall not  include  any  for-profit
corporation or other for-profit entity or organization.
  S  2.  No  pay for success initiatives shall be undertaken pursuant to
this act unless the director  of  budget  determines  that  there  is  a
reasonable  expectation  that  the initiative and related administration
costs will generate savings to the state and or local governments net of
any payments pursuant to any  appropriation  authorizing  funding  under
this  act.  Funding  provided  for pay for success initiatives shall not
supplant any other funding for services in such program areas.
  S 3. Any state agency authorized under section  one  of  this  act  to
undertake a pay for success initiative pursuant to this act shall submit
a  report  on  pay for success initiative activities and outcomes to the
temporary president of the senate, the  speaker  of  the  assembly,  the
minority  leader  of the senate, the minority leader of the assembly and
the governor by August 1, 2017.  Such report shall include, but  not  be
limited  to,  a  description  of the program, the names of participating
organizations, the types of services provided,  characteristics  of  the

S. 2607--D                         127                        A. 3007--D

population  served,  performance  targets,  outcomes  and an analysis of
savings achieved in particular program areas.
  S  4.  This act shall take effect April 1, 2013, provided however that
no new program or contract may be established after March 31, 2018.

                                 PART DD

  Section 1. The private housing finance law is amended by adding a  new
article 27 to read as follows:
                              ARTICLE XXVII
            RURAL AND URBAN COMMUNITY INVESTMENT FUND PROGRAM
SECTION 1230. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        1231. DEFINITIONS.
        1232. RURAL AND URBAN COMMUNITY INVESTMENT FUND.
  S 1230. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
FINDS AND DECLARES THAT THERE EXISTS IN NEW YORK STATE A SERIOUS NEED TO
ASSIST COMMUNITIES WITH THE CREATION AND IMPROVEMENT OF AFFORDABLE HOUS-
ING,  AND  THE  COMMERCIAL,  RETAIL  AND COMMUNITY FACILITIES RELATED TO
MIXED  USE  AFFORDABLE  RESIDENTIAL   DEVELOPMENTS.      LOCALLY   BASED
NOT-FOR-PROFIT  ORGANIZATIONS  PLAY A SIGNIFICANT ROLE IN ADDRESSING THE
UNIQUE CHARACTERISTICS OF RURAL AND URBAN  COMMUNITIES.    PARTNERSHIPS,
ALLIANCES  AND  COLLABORATIONS  WITH  CORPORATE  ENTITIES, TO THE EXTENT
PRACTICABLE, WILL FOSTER CROSS-SECTOR COLLABORATION IN ORDER TO BUILD  A
DIVERSE  COMMUNITY  SUPPORT  SYSTEM. THE LEGISLATURE FINDS THAT, IN BOTH
RURAL AND URBAN AREAS OF THE STATE, A PROGRAM SHOULD BE  ESTABLISHED  TO
FUND  THE  CREATION, PRESERVATION AND/OR IMPROVEMENT OF AFFORDABLE HOUS-
ING; OR THE CREATION, PRESERVATION OR  IMPROVEMENT  OF  THE  COMMERCIAL,
RETAIL  OR  COMMUNITY FACILITIES COMPONENT OF MIXED USE AFFORDABLE RESI-
DENTIAL DEVELOPMENTS.
  S 1231. DEFINITIONS. 1. "CORPORATION" SHALL  MEAN  THE  HOUSING  TRUST
FUND CORPORATION ESTABLISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
  2.  "RURAL  AND  URBAN  COMMUNITY  INVESTMENT FUND PROGRAM" SHALL MEAN
ACTIVITIES BY AN ELIGIBLE APPLICANT FOR A SPECIFIC  WORK  OR  SERIES  OF
WORKS  FOR THE CREATION, PRESERVATION OR IMPROVEMENT OF AFFORDABLE HOUS-
ING, OR THE CREATION, PRESERVATION OR  IMPROVEMENT  OF  THE  COMMERCIAL,
RETAIL  OR  COMMUNITY FACILITIES COMPONENT OF MIXED USE AFFORDABLE RESI-
DENTIAL DEVELOPMENTS, IN RURAL AND URBAN AREAS OF THE STATE.
   3. "RURAL AREA OF THE STATE" SHALL MEAN CITIES,  TOWNS  AND  VILLAGES
HAVING  A  POPULATION OF LESS THAN TWENTY-FIVE THOUSAND AS DETERMINED BY
THE LAST FEDERAL DECENNIAL CENSUS.
  4. "URBAN AREA OF THE STATE" SHALL MEAN ANY UNIT OF  LOCAL  GOVERNMENT
WITHIN  THE STATE WITH A POPULATION OF MORE THAN OR EQUAL TO TWENTY-FIVE
THOUSAND PERSONS AS DETERMINED BY THE LAST FEDERAL DECENNIAL CENSUS.
  5. "ELIGIBLE APPLICANT" SHALL INCLUDE A NOT-FOR-PROFIT CORPORATION  OR
CHARITABLE  ORGANIZATION,  OR A WHOLLY-OWNED SUBSIDIARY OF SUCH A CORPO-
RATION OR ORGANIZATION, OR A PRIVATE  FOR-PROFIT  DEVELOPER  SUCH  AS  A
PERSON, CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY.
  6.  "AFFORDABLE  RESIDENTIAL  DEVELOPMENT"  SHALL  INCLUDE RESIDENTIAL
UNITS THAT ARE RENT RESTRICTED AND  OCCUPIED  BY  PERSONS  AND  FAMILIES
WHOSE  INCOME  DOES  NOT EXCEED NINETY PERCENT OF AREA MEDIAN INCOME FOR
THE COUNTY IN WHICH A PROJECT IS LOCATED AS  CALCULATED  BY  THE  UNITED
STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
  S  1232.  RURAL AND URBAN COMMUNITY INVESTMENT FUND. 1. WITHIN AMOUNTS
APPROPRIATED OR OTHERWISE AVAILABLE THEREFOR,  THE  HOUSING  TRUST  FUND
CORPORATION  SHALL  DEVELOP  AND  ADMINISTER A RURAL AND URBAN COMMUNITY
INVESTMENT FUND PROGRAM WHICH SHALL PROVIDE ASSISTANCE IN  THE  FORM  OF

S. 2607--D                         128                        A. 3007--D

PAYMENTS,  GRANTS AND LOANS FOR REASONABLE AND NECESSARY EXPENSES, TO AN
ELIGIBLE APPLICANT FOR THE  CREATION,  PRESERVATION  OR  IMPROVEMENT  OF
AFFORDABLE  HOUSING; OR THE CREATION, PRESERVATION OR IMPROVEMENT OF THE
COMMERCIAL,  RETAIL  OR  COMMUNITY  FACILITIES  COMPONENT  OF  MIXED USE
AFFORDABLE RESIDENTIAL DEVELOPMENTS, IN RURAL AND  URBAN  AREAS  OF  THE
STATE.
  2.  PROGRAM CRITERIA. THE CORPORATION SHALL DEVELOP PROCEDURES, CRITE-
RIA AND REQUIREMENTS RELATED TO THE APPLICATION AND  AWARD  OF  PROJECTS
PURSUANT  TO  THIS  SECTION  WHICH  SHALL INCLUDE:   ELIGIBILITY, MARKET
DEMAND, FEASIBILITY AND  FUNDING  CRITERIA;  THE  FUNDING  DETERMINATION
PROCESS;  SUPERVISION  AND EVALUATION OF CONTRACTING APPLICANTS; REPORT-
ING, BUDGETING AND RECORD-KEEPING REQUIREMENTS; PROVISIONS FOR MODIFICA-
TION AND TERMINATION OF CONTRACTS; AND SUCH OTHER MATTERS NOT INCONSIST-
ENT WITH THE PURPOSES AND PROVISIONS OF THIS ARTICLE AS THE  CORPORATION
SHALL DEEM NECESSARY OR APPROPRIATE.
  3.  FUND ALLOCATION. SIXTY PERCENT OF THE TOTAL FUNDS AWARDED PURSUANT
TO THIS ARTICLE IN ANY  FISCAL  YEAR  SHALL  BE  ALLOCATED  TO  PROJECTS
LOCATED  IN  URBAN  AREAS OF THE STATE. FORTY PERCENT OF THE TOTAL FUNDS
AWARDED PURSUANT TO THIS ARTICLE IN ANY FISCAL YEAR SHALL  BE  ALLOCATED
TO PROJECTS LOCATED IN RURAL AREAS OF THE STATE.
  4.  FUNDING  CRITERIA. A ONE-THIRD MATCH REQUIREMENT SHALL BE REQUIRED
OF ANY ELIGIBLE APPLICANT, WHICH MAY INCLUDE DONATED PROPERTY, MATERIALS
OR LABOR AND OTHER RESOURCES, AND  MAY  BE  REDUCED  OR  ELIMINATED  FOR
PROJECTS LOCATED WITHIN A DECLARED DISASTER AREA.
  5.  FUNDING  AND ANNUAL REPORT. THE CORPORATION IN ITS SOLE DISCRETION
SHALL AUTHORIZE ALL FUNDING DECISIONS AND MAKE ALL AWARD  ANNOUNCEMENTS.
THE  CORPORATION  SHALL, ON OR BEFORE DECEMBER THIRTY-FIRST IN EACH YEAR
SUBMIT A REPORT TO THE LEGISLATURE ON THE IMPLEMENTATION OF  THIS  ARTI-
CLE.  SUCH  REPORT  SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH AWARD
MADE TO A GRANTEE UNDER THIS  ARTICLE:  A  DESCRIPTION  OF  SUCH  AWARD;
CONTRACT  AMOUNT  AND CUMULATIVE TOTAL; THE SPECIFIC ACTIVITIES IN RURAL
AND URBAN AREAS PERFORMED BY SUCH GRANTEE; THE AMOUNTS OF  MATCH  MONIES
RECEIVED  BY  THE GRANTEE FROM SOURCES OTHER THAN PAYMENTS MADE PURSUANT
TO THIS ARTICLE; AND SUCH OTHER INFORMATION  AS  THE  CORPORATION  DEEMS
PERTINENT.
  S 2. This act shall take effect immediately.

                                 PART EE

  Section  1.  Paragraph b of subdivision 2 of section 54-l of the state
finance law, as added by section 1 of part J of chapter 57 of  the  laws
of 2011, is amended to read as follows:
  b.  Within  the amounts appropriated therefor, eligible municipalities
shall receive an amount equal to [forty-five] FIFTY-FIVE percent of  the
state  aid  payment  received  in the state fiscal year commencing April
first, two thousand eight from  an  appropriation  for  aid  to  munici-
palities  with  video lottery gaming facilities[, rounded up to the next
thousand dollars].
  S 2. This act shall take effect immediately.

                                 PART FF

  Section 1. The opening paragraph of subdivision a of section 265.20 of
the penal law, as amended by chapter 496 of the laws of 1991, is amended
to read as follows:

S. 2607--D                         129                        A. 3007--D

  [Sections] PARAGRAPH (H) OF SUBDIVISION TWENTY-TWO OF  SECTION  265.00
AND  SECTIONS  265.01,  265.01-A,  SUBDIVISION  ONE OF SECTION 265.01-B,
265.02, 265.03, 265.04, 265.05, 265.10, 265.11, 265.12, 265.13,  265.15,
265.36, 265.37 and 270.05 shall not apply to:
  S  2.  Section  265.37  of the penal law, as added by chapter 1 of the
laws of 2013, is amended to read as follows:
S 265.37 Unlawful possession of certain ammunition feeding devices.
  It shall be unlawful for a person to knowingly possess  an  ammunition
feeding device [that such person lawfully possessed before the effective
date  of  the  chapter  of the laws of two thousand thirteen which added
this section, that has a capacity of, or that can be readily restored or
converted to accept more than seven but less than ten rounds of  ammuni-
tion,] where such device contains more than seven rounds of ammunition.
  If  such  device  containing  more  than seven rounds of ammunition is
possessed within the home of the possessor, the person so possessing the
device shall, for a first offense, be guilty of a violation and  subject
to  a  fine  of  two hundred dollars, and for [a second] EACH SUBSEQUENT
offense, be guilty of a class B misdemeanor and subject to a fine of two
hundred dollars and a term of up to three months imprisonment.
  If such device containing more than  seven  rounds  of  ammunition  is
possessed  in  any  location  other  than the home of the possessor, the
person so possessing the device shall, for a first offense, be guilty of
a class B misdemeanor and subject to a fine of two hundred dollars and a
term of up to six months imprisonment, and for [a  second]  EACH  SUBSE-
QUENT offense, be guilty of a class A misdemeanor.
  S  3.  Section  265.45  of the penal law, as added by chapter 1 of the
laws of 2013, is amended to read as follows:
S 265.45 Safe storage of rifles, shotguns, and firearms.
  No person who owns or is custodian of a rifle, shotgun or firearm  who
resides  with  an individual who such person knows or has reason to know
is prohibited from possessing a firearm pursuant to 18 U.S.C.  S  922(g)
(1),  (4), (8) or (9) shall store or otherwise leave such rifle, shotgun
or firearm out of his or her immediate  possession  or  control  without
having first securely locked such rifle, shotgun or firearm in an appro-
priate  safe  storage depository or rendered it incapable of being fired
by use of a gun locking device appropriate to that weapon. For  purposes
of  this  section  "safe  storage depository" shall mean a safe or other
secure container which, when locked, is incapable of being opened  with-
out  the key, combination or other unlocking mechanism and is capable of
preventing  an  unauthorized  person  from  obtaining  access   to   and
possession of the weapon contained therein. With respect to a person who
is  prohibited from possessing a firearm pursuant to 18 USC S 922(g)(9),
for purposes of this section, this section applies only if  such  person
has  been  convicted  of  a crime included in subdivision one of section
370.15 of the criminal procedure law and such gun  is  possessed  within
five  years  from  the  later of the date of conviction or completion of
sentence.  NOTHING IN THIS SECTION SHALL BE DEEMED TO AFFECT, IMPAIR  OR
SUPERSEDE  ANY  SPECIAL  OR  LOCAL  ACT  RELATING TO THE SAFE STORAGE OF
RIFLES, SHOTGUNS OR FIREARMS WHICH IMPOSE ADDITIONAL REQUIREMENTS ON THE
OWNER OR CUSTODIAN OF SUCH WEAPONS.
  A violation of this section shall constitute a class A misdemeanor.
  S 4. Subdivision b of section 58 of chapter 1  of  the  laws  of  2013
amending  the  criminal procedure law and other laws relating to suspen-
sion and revocation of firearms licenses, is amended to read as follows:
  b. The amendments to subdivision 23 of section 265.00 of the penal law
made by section thirty-eight of this act shall take effect on the  nine-

S. 2607--D                         130                        A. 3007--D

tieth day after this act shall have become a law, except that the amend-
ments  [made  to] DESIGNATING paragraph (a) of subdivision 23 shall take
effect immediately; AND PROVIDED FURTHER THAT THE EFFECTIVE DATE OF  THE
AMENDMENTS  ADDING  PARAGRAPHS  (B) AND (C) TO SUCH SUBDIVISION SHALL BE
SUSPENDED AND NOT EFFECTIVE;
  S 5. This act shall take effect immediately; provided,  however,  that
sections  one  and four of this act shall be deemed to have been in full
force and effect on the same date as chapter 1 of the laws of 2013  took
effect.

                                 PART GG

  Section  1.  Subdivision  18 of section 2 of the workers' compensation
law is REPEALED.
  S 2. Subdivision 9 of section 13-l of the workers'  compensation  law,
as  added  by  chapter  940  of  the laws of 1973, is amended to read as
follows:
  9. The [chairman] CHAIR shall appoint for and with jurisdiction in the
entire state of  New  York  a  single  chiropractic  practice  committee
composed  of [one duly licensed physician and two] THREE duly registered
and licensed chiropractors of the state of New York. Each member of said
committee shall receive compensation either on an annual basis or  on  a
per diem basis to be fixed by the [chairman] CHAIR within amounts appro-
priated  therefor.  One of said chiropractic members shall be designated
by the [chairman] CHAIR as a [chairman] CHAIR of said chiropractic prac-
tice committee. No member of said committee  shall  render  chiropractic
treatment under this section nor be employed or accept or participate in
any fee from any insurance company authorized to write [workmen's] WORK-
ERS'  compensation  insurance  in  this  state or from any self-insurer,
whether such employment or fee relates to a [workmen's] WORKERS' compen-
sation claim or otherwise. The [attorney-general] ATTORNEY GENERAL, upon
request, shall advise and assist such committee.
  S 3. Subdivision 10 of section 13-m of the workers' compensation  law,
as  added  by  chapter  589  of  the laws of 1989, is amended to read as
follows:
  10. The [chairman] CHAIR shall appoint for and  with  jurisdiction  in
the  entire  state  of  New  York a single psychology practice committee
composed of [two] THREE duly registered and licensed  psychologists,  at
least  one  of  whom  shall be a member in good standing of the New York
state psychological association recommended by  the  president  of  such
organization[,  and  one  duly  licensed  physician  of the state of New
York]. Each member of said committee shall receive  compensation  either
on  an annual basis or on a per diem basis to be fixed by the [chairman]
CHAIR within amounts appropriated therefor. One  of  said  psychologists
shall  be  designated  by  the [chairman] CHAIR as a [chairman] CHAIR of
said psychology practice committee. No member of  said  committee  shall
render  psychological treatment under this section nor be an employer or
accept or participate in any fee from any insurance  company  authorized
to write workers' compensation insurance in this state or from any self-
insurer,  whether  such  employment or fee relates to a workers' compen-
sation claim or otherwise. The attorney  general,  upon  request,  shall
advise and assist such committee.
  S  4.  Subdivisions 2, 3 and 4 of section 13-g of the workers' compen-
sation law, subdivision 2 as amended by chapter 649 of the laws of 1985,
subdivision 3 as amended by chapter 674 of the laws of 1994, and  subdi-

S. 2607--D                         131                        A. 3007--D

vision  4  as amended by chapter 639 of the laws of 1996, are amended to
read as follows:
  (2)  (A)  IF  THE  PARTIES  FAIL  TO AGREE TO THE VALUE OF MEDICAL AID
RENDERED UNDER THIS CHAPTER AND THE AMOUNT OF THE DISPUTED BILL  IS  ONE
THOUSAND  DOLLARS OR LESS, OR IF THE AMOUNT OF THE DISPUTED MEDICAL BILL
EXCEEDS ONE THOUSAND DOLLARS AND THE HEALTH CARE PROVIDER  EXPRESSLY  SO
REQUESTS,  SUCH  VALUE  SHALL BE DECIDED BY A SINGLE ARBITRATOR PROCESS,
PURSUANT TO RULES PROMULGATED BY THE CHAIR. THE CHAIR  SHALL  APPOINT  A
PHYSICIAN WHO IS A MEMBER IN GOOD STANDING OF THE MEDICAL SOCIETY OF THE
STATE  OF NEW YORK TO DETERMINE THE VALUE OF SUCH DISPUTED MEDICAL BILL.
WHERE THE PHYSICIAN WHOSE CHARGES ARE BEING ARBITRATED IS  A  MEMBER  IN
GOOD  STANDING  OF  THE  NEW YORK OSTEOPATHIC SOCIETY, THE VALUE OF SUCH
DISPUTED BILL SHALL BE DETERMINED BY A MEMBER IN GOOD  STANDING  OF  THE
NEW YORK OSTEOPATHIC SOCIETY APPOINTED BY THE CHAIR. WHERE THE PHYSICIAN
WHOSE  CHARGES  ARE BEING ARBITRATED IS A MEMBER IN GOOD STANDING OF THE
NEW YORK HOMEOPATHIC SOCIETY, THE VALUE OF SUCH DISPUTED BILL  SHALL  BE
DETERMINED  BY  A  MEMBER  IN  GOOD STANDING OF THE NEW YORK HOMEOPATHIC
SOCIETY APPOINTED BY THE CHAIR. WHERE  THE  VALUE  OF  PHYSICAL  THERAPY
SERVICES  OR OCCUPATIONAL THERAPY SERVICES IS AT ISSUE, SUCH VALUE SHALL
BE DETERMINED BY A MEMBER IN GOOD STANDING OF A RECOGNIZED  PROFESSIONAL
ASSOCIATION  REPRESENTING  ITS RESPECTIVE PROFESSION IN THE STATE OF NEW
YORK APPOINTED BY THE CHAIR.  DECISIONS RENDERED UNDER THE SINGLE  ARBI-
TRATOR  PROCESS  SHALL BE CONCLUSIVE UPON THE PARTIES AS TO THE VALUE OF
THE SERVICES IN DISPUTE.
  (B) If the parties fail to agree  as  to  the  value  of  medical  aid
rendered  under this chapter AND THE AMOUNT OF THE DISPUTED BILL EXCEEDS
ONE THOUSAND DOLLARS, such value shall  be  decided  by  an  arbitration
committee   [consisting]  UNLESS  THE  HEALTH  CARE  PROVIDER  EXPRESSLY
REQUESTS A SINGLE ARBITRATOR PROCESS IN ACCORDANCE WITH PARAGRAPH (A) OF
THIS SUBDIVISION. THE ARBITRATION COMMITTEE SHALL CONSIST of one  physi-
cian designated by the president of the medical society of the county in
which  the medical services were rendered, one physician who is a member
of the medical society of the  state  of  New  York,  appointed  by  the
employer  or  carrier,  and  one physician, also a member of the medical
society of the state of New York, appointed by the [chairman]  CHAIR  of
the  workers'  compensation  board.  [The  majority decision of any such
committee shall be conclusive upon the parties as to the  value  of  the
services  rendered.] If the physician whose charges are being arbitrated
is a member in good standing of the New York osteopathic society or  the
New  York homeopathic society, the members of such arbitration committee
shall be physicians of such organization, one to  be  appointed  by  the
president  of  that organization, one by the employer or carrier and the
third by the [chairman] CHAIR of the workers' compensation board.  Where
the value of physical therapy services is at issue AND THE AMOUNT OF THE
DISPUTED  BILL  EXCEEDS  ONE THOUSAND DOLLARS, the arbitration committee
shall consist of a member in good standing of a recognized  professional
association  representing  physical  therapists in the state of New York
appointed by the president of such organization, a physician  designated
by  the employer or carrier and a physician designated by the [chairman]
CHAIR of the workers' compensation  board  provided  however,  that  the
[chairman]  CHAIR  finds  that there are a sufficient number of physical
therapy arbitrations in a geographical area comprised  of  one  or  more
counties  to  warrant a committee so comprised. In all other cases where
the value of physical therapy services is at issue AND THE AMOUNT OF THE
DISPUTED BILL EXCEEDS ONE THOUSAND DOLLARS,  the  arbitration  committee
shall  be similarly selected and identical in composition, provided that

S. 2607--D                         132                        A. 3007--D

the physical therapist member  shall  serve  without  remuneration,  and
provided  further  that  in the event a physical therapist is not avail-
able, the committee shall be comprised of three physicians designated in
the same manner as in cases where the value of medical aid is at issue.
  (C)  Where  the value of occupational therapy services is at issue the
arbitration committee shall consist of a member in good  standing  of  a
recognized professional association representing occupational therapists
in  the  state  of New York appointed by the president of such organiza-
tion; a physician designated by the employer or carrier and a  physician
designated  by  the  [chairman] CHAIR of the workers' compensation board
provided, however, that the [chairman] CHAIR  finds  that  there  are  a
sufficient number of occupational therapy arbitrations in a geographical
area  comprised  of  one  or  more  counties  to  warrant a committee so
comprised. In all other cases where the value  of  occupational  therapy
services  is  at  issue  AND THE AMOUNT OF THE DISPUTED BILL EXCEEDS ONE
THOUSAND DOLLARS, the arbitration committee shall be similarly  selected
and  identical  in composition, provided that the occupational therapist
member shall serve without remuneration, and provided  further  that  in
the  event  an  occupational  therapist  is not available, the committee
shall be comprised of three physicians designated in the same manner  as
in cases where the value of medical aid is at issue.  THE MAJORITY DECI-
SION  OF  ANY  SUCH  ARBITRATION  COMMITTEE SHALL BE CONCLUSIVE UPON THE
PARTIES AS TO THE VALUE OF THE SERVICES IN DISPUTE.
  (3) (A) IF AN EMPLOYER SHALL HAVE NOTIFIED THE HOSPITAL IN WRITING, AS
PROVIDED IN SUBDIVISION ONE OF THIS SECTION, WHY THE BILL HAS  NOT  BEEN
PAID,  IN  PART  OR  IN FULL, AND THE AMOUNT OF THE DISPUTED BILL IS ONE
THOUSAND DOLLARS OR LESS, OR WHERE THE AMOUNT OF  THE  DISPUTED  MEDICAL
BILL  EXCEEDS  ONE  THOUSAND  DOLLARS  AND  THE  HOSPITAL  EXPRESSLY  SO
REQUESTS, SUCH VALUE SHALL BE DECIDED BY A  SINGLE  ARBITRATOR  PROCESS,
PURSUANT  TO  RULES  PROMULGATED BY THE CHAIR. THE CHAIR SHALL APPOINT A
PHYSICIAN IN GOOD STANDING LICENSED TO PRACTICE IN  NEW  YORK  STATE  TO
DETERMINE THE VALUE OF SUCH DISPUTED BILL.  DECISIONS RENDERED UNDER THE
ADMINISTRATIVE RESOLUTION PROCEDURE SHALL BE CONCLUSIVE UPON THE PARTIES
AS TO THE VALUE OF THE SERVICES IN DISPUTE.
  (B)  If  an  employer  shall have notified the hospital in writing, as
provided in subdivision one of this section, why the bill has  not  been
paid,  in  part  or in full, AND THE AMOUNT OF THE DISPUTED BILL EXCEEDS
ONE THOUSAND DOLLARS, the value of such bill shall be determined  by  an
arbitration  committee  appointed  by  the chair for that purpose, which
committee shall consider all of the charges of the hospital, UNLESS  THE
HOSPITAL  EXPRESSLY  REQUESTS  A  SINGLE  ARBITRATOR PROCESS PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION.  The committee shall consist of three
physicians. One member of the committee may be  nominated  [to]  BY  the
chair  [by] UPON RECOMMENDATION OF the president of the hospital associ-
ation of New York state and one member may be nominated by the  employer
or  insurance carrier. The majority decision of any such committee shall
be conclusive upon the parties as to the value of the services rendered.
The chair may make reasonable rules and regulations consistent with  the
provisions of this section.
  (4)  A provider initiating an arbitration, INCLUDING A SINGLE ARBITRA-
TOR PROCESS, pursuant to this section shall pay a fee as  determined  by
regulations  promulgated  by  the  chair,  to be used to cover the costs
related to the conduct of such arbitration.  Upon resolution in favor of
such party, the amount due, based upon the bill  in  dispute,  shall  be
increased  by the amount of the fee paid by such party.  Where a partial
award is made, the amount due, based upon the bill in dispute, shall  be

S. 2607--D                         133                        A. 3007--D

increased  by a part of such fee.  Each member of an arbitration commit-
tee for medical bills, and each member of an arbitration  committee  for
hospital  bills shall be entitled to receive and shall be paid a fee for
each  day's  attendance at an arbitration session in any one count in an
amount fixed by the chair of the workers' compensation board.
  S 5. Subdivision 6 of section 13-k of the workers'  compensation  law,
as  amended  by  chapter  639 of the laws of 1996, is amended to read as
follows:
  6. (A) The provisions of subdivisions one and three of  section  thir-
teen-g  of  this  article  with  respect to the conditions under which a
hospital, physician or self-employed physical or occupational  therapist
may  request  payment  or arbitration of a bill, or under which an award
may be made for payment of such  bill,  shall  be  applicable  to  bills
rendered by a podiatrist for services rendered to an injured employee.
  (B)  IF  THE  PARTIES  FAIL  TO AGREE AS TO THE VALUE OF PODIATRY CARE
RENDERED UNDER THIS CHAPTER  TO  A  CLAIMANT,  AND  THE  AMOUNT  OF  THE
DISPUTED  BILL  IS  ONE THOUSAND DOLLARS OR LESS, OR WHERE THE AMOUNT OF
THE DISPUTED BILL  EXCEEDS  ONE  THOUSAND  DOLLARS  AND  THE  PODIATRIST
EXPRESSLY  SO REQUESTS, SUCH VALUE SHALL BE DECIDED BY A SINGLE ARBITRA-
TOR PROCESS, PURSUANT TO RULES PROMULGATED BY THE CHAIR. THE CHAIR SHALL
APPOINT A MEMBER IN GOOD STANDING OF A RECOGNIZED  PROFESSIONAL  ASSOCI-
ATION REPRESENTING PODIATRISTS IN THE STATE OF NEW YORK TO DETERMINE THE
VALUE  OF  SUCH DISPUTED BILL. DECISIONS RENDERED UNDER THE SINGLE ARBI-
TRATOR PROCESS SHALL BE CONCLUSIVE UPON THE PARTIES AS TO THE  VALUE  OF
THE SERVICES IN DISPUTE.
  (C)  If  the  parties  fail  to agree as to the value of podiatry care
rendered under this chapter to a claimant AND THE AMOUNT OF THE DISPUTED
BILL EXCEEDS ONE THOUSAND DOLLARS AND THE PODIATRIST DOES NOT  EXPRESSLY
REQUEST  A SINGLE ARBITRATOR PROCESS IN ACCORDANCE WITH PARAGRAPH (B) OF
THIS SUBDIVISION, such value shall be decided by an arbitration  commit-
tee consisting of three duly registered and licensed podiatrists who are
members  of  a  recognized  professional association representing podia-
trists in the state of New York, one to be appointed by the president of
such an association, one to be appointed by the employer or carrier  and
one  to be appointed by the chair of the workers' compensation board and
the majority decision of such committee shall  be  conclusive  upon  the
parties as to the value of the services rendered.
  (D)  The  board  or  the  chair may make an award not in excess of the
established fee schedules for  any  such  bill  or  part  thereof  which
remains  unpaid  in the same manner as an award for bills rendered under
subdivisions one and three of section thirteen-g of  this  article,  and
such  award  may  be  collected  in  like  manner as an [aware] AWARD of
compensation.  Where a podiatrist's bill has been determined to  be  due
and  owing  in  accordance with the provisions of this section the board
shall include in the amount of the award interest of not more  than  one
and  one-half  percent  (1  1/2%) per month payable to the podiatrist in
accordance with the rules and regulations promulgated by the board.  The
chair  shall  assess  the  sum of fifty dollars against the employer for
each such award made by the board, which sum  shall  be  paid  into  the
state treasury.
  (E)  A  provider  initiating  an arbitration, INCLUDING A SINGLE ARBI-
TRATION PROCESS, pursuant to this section shall pay a fee, as determined
by regulations promulgated by the chair, to be used to cover  the  costs
related  to the conduct of such arbitration. Upon resolution in favor of
such party, the amount due, based upon the bill  in  dispute,  shall  be
increased  by  the amount of the fee paid by such party. Where a partial

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award is made, the amount due, based upon the bill in dispute  shall  be
increased  by a part of such fee. Each member of the arbitration commit-
tee shall be entitled to receive and shall be paid a fee for each  day's
attendance  at an arbitration session in an amount fixed by the chair of
the workers' compensation board.
  S 6. Subdivision 6 of section 13-l of the workers'  compensation  law,
as  amended  by  chapter  639 of the laws of 1996, is amended to read as
follows:
  6. (A) The provisions of subdivisions one and three of  section  thir-
teen-g  of  this  article  with  respect to the conditions under which a
hospital, physician or self-employed physical or occupational  therapist
may  request  payment  or arbitration of a bill, or under which an award
may be made for payment of such  bill,  shall  be  applicable  to  bills
rendered by a chiropractor for services rendered to an injured employee.
  (B)  IF THE PARTIES FAIL TO AGREE AS TO THE CHIROPRACTIC CARE RENDERED
UNDER THIS CHAPTER TO A CLAIMANT, AND THE AMOUNT OF THE DISPUTED BILL IS
ONE THOUSAND DOLLARS OR LESS, OR WHERE THE AMOUNT OF THE  DISPUTED  BILL
EXCEEDS ONE THOUSAND DOLLARS AND THE CHIROPRACTOR EXPRESSLY SO REQUESTS,
SUCH  VALUE SHALL BE DECIDED BY A SINGLE ARBITRATOR PROCESS, PURSUANT TO
RULES PROMULGATED BY THE CHAIR. THE CHAIR SHALL APPOINT A MEMBER IN GOOD
STANDING OF A RECOGNIZED PROFESSIONAL  ASSOCIATION  REPRESENTING  CHIRO-
PRACTORS  IN  THE  STATE  OF  NEW  YORK  TO  DETERMINE THE VALUE OF SUCH
DISPUTED BILL. DECISIONS RENDERED UNDER THE  SINGLE  ARBITRATOR  PROCESS
SHALL  BE CONCLUSIVE UPON THE PARTIES AS TO THE VALUE OF THE SERVICES IN
DISPUTE.
  (C) If the parties fail to agree as to the chiropractic care  rendered
under  this  chapter  to a claimant, AND THE AMOUNT OF THE DISPUTED BILL
EXCEEDS ONE THOUSAND DOLLARS AND THE  CHIROPRACTOR  DOES  NOT  EXPRESSLY
REQUEST  A SINGLE ARBITRATOR PROCESS IN ACCORDANCE WITH PARAGRAPH (B) OF
THIS SUBDIVISION, such value shall be decided by the chiropractic  prac-
tice  committee  and  the  majority  decision of such committee shall be
conclusive upon the parties as to the value of the services rendered.
  (D) The board or the chair may make an award  not  in  excess  of  the
established  fee  schedules  for  any  such  bill  or part thereof which
remains unpaid in the same manner as an award for bills  rendered  under
subdivisions  one  and  three of section thirteen-g of this article, and
such award may be collected in like manner as an award of  compensation.
Where  a  chiropractor's bill has been determined to be due and owing in
accordance with the provisions of this section the board  shall  include
in  the  amount  of the award interest of not more than one and one-half
percent (1 1/2%) per month payable to  the  chiropractor  in  accordance
with the rules and regulations promulgated by the board. The chair shall
assess the sum of fifty dollars against the employer for each such award
made by the board, which sum shall be paid into the state treasury.
  (E)  A provider initiating an arbitration, INCLUDING A SINGLE ARBITRA-
TOR PROCESS, pursuant to this section shall pay a fee, as determined  by
regulations  promulgated  by  the  chair,  to be used to cover the costs
related to the conduct of such arbitration. Upon resolution in favor  of
such  party,  the  amount  due, based upon the bill in dispute, shall be
increased by the amount of the fee paid by such party. Where  a  partial
award  is made, the amount due, based upon the bill in dispute, shall be
increased by a part of such fee.
  S 7. Subdivision 7 of section 13-m of the workers'  compensation  law,
as  amended by chapter 674 of the laws of 1994, paragraph (c) as amended
by chapter 639 of the laws of 1996, is amended to read as follows:

S. 2607--D                         135                        A. 3007--D

  7. (a) The provisions of subdivisions one and three of  section  thir-
teen-g  of  this  article  with  respect to the conditions under which a
hospital, physician or self-employed physical or occupational  therapist
may  request  payment  or arbitration of a bill, or under which an award
may  be  made  for  payment  of  such bill, shall be applicable to bills
rendered by a psychologist for services rendered to an injured employee.
  (B) IF THE PARTIES FAIL TO AGREE AS TO THE PSYCHOLOGICAL CARE RENDERED
UNDER THIS CHAPTER TO A CLAIMANT, AND THE AMOUNT OF THE DISPUTED BILL IS
ONE THOUSAND DOLLARS OR LESS, OR WHERE THE AMOUNT OF THE  DISPUTED  BILL
EXCEEDS ONE THOUSAND DOLLARS AND THE PSYCHOLOGIST EXPRESSLY SO REQUESTS,
SUCH  VALUE SHALL BE DECIDED BY A SINGLE ARBITRATOR PROCESS, PURSUANT TO
RULES PROMULGATED BY THE CHAIR. THE CHAIR SHALL APPOINT A MEMBER IN GOOD
STANDING OF A RECOGNIZED PROFESSIONAL ASSOCIATION REPRESENTING  PSYCHOL-
OGISTS  IN THE STATE OF NEW YORK TO DETERMINE THE VALUE OF SUCH DISPUTED
BILL. DECISIONS RENDERED UNDER THE SINGLE ARBITRATOR  PROCESS  SHALL  BE
CONCLUSIVE UPON THE PARTIES AS TO THE VALUE OF THE SERVICES IN DISPUTE.
  (C) If the parties fail to agree as to the psychological care rendered
under  this  chapter  to a claimant, AND THE AMOUNT OF THE DISPUTED BILL
EXCEEDS ONE THOUSAND DOLLARS AND THE  PSYCHOLOGIST  DOES  NOT  EXPRESSLY
REQUEST  A SINGLE ARBITRATOR PROCESS IN ACCORDANCE WITH PARAGRAPH (B) OF
THIS SUBDIVISION, such value shall be decided by the psychology practice
committee and the majority decision of such committee shall  be  conclu-
sive upon the parties as to the value of the services rendered.
  (D)  The  board  or  the  chair may make an award not in excess of the
established fee schedules for  any  such  bill  or  part  thereof  which
remains  unpaid  in the same manner as an award for bills rendered under
subdivisions one and three of section thirteen-g of  this  article,  and
such  award may be collected in like manner as an award of compensation.
The chair shall assess the sum of fifty dollars against the employer for
each such award made by the board, which sum  shall  be  paid  into  the
state  treasury.   [(b)] Where a psychologist's bill has been determined
to be due and owing in accordance with the provisions  of  this  section
the  board shall include in the amount of the award interest of not more
than one and one-half percent per month payable to the  psychologist  in
accordance with the rules and regulations promulgated by the board.
  [(c)]  (E)  A  provider  initiating an arbitration, INCLUDING A SINGLE
ARBITRATOR PROCESS, pursuant to this section shall pay a fee, as  deter-
mined  by  regulations promulgated by the chair, to be used to cover the
costs related to the conduct of such  arbitration.  Upon  resolution  in
favor  of  such  party,  the amount due, based upon the bill in dispute,
shall be increased by the amount of the fee paid by such party. Where  a
partial  award  is made, the amount due, based upon the bill in dispute,
shall be increased by a part of such fee.
  S 7-a.  Paragraph (a) of subdivision 6 of section 15 of  the  workers'
compensation  law,  as  amended  by  chapter 689 of the laws of 2007, is
amended to read as follows:
  (a) Compensation for permanent or temporary total disability due to an
accident or disablement resulting  from  an  occupational  disease  that
occurs,  (1)  on or after January first, nineteen hundred seventy-eight,
shall not exceed one hundred twenty-five dollars per week,  that  occurs
(2)  on  or  after July first, nineteen hundred seventy-eight, shall not
exceed one hundred eighty dollars per week, that occurs (3) on or  after
January  first,  nineteen  hundred  seventy-nine,  shall  not exceed two
hundred fifteen dollars per week, that  occurs  (4)  on  or  after  July
first,  nineteen  hundred  eighty-three,  shall  not  exceed two hundred
fifty-five dollars per week, that occurs (5) on  or  after  July  first,

S. 2607--D                         136                        A. 3007--D

nineteen  hundred eighty-four, shall not exceed two hundred seventy-five
dollars per week, that occurs (6)  on  or  after  July  first,  nineteen
hundred  eighty-five,  shall  not exceed three hundred dollars per week,
that  occurs  (7) on or after July first, nineteen hundred ninety, shall
not exceed three hundred forty dollars per week;  and  in  the  case  of
temporary  total  disability  shall  not be less than thirty dollars per
week and in the case of permanent total disability  shall  not  be  less
than  twenty dollars per week except that if the employee's wages at the
time of injury are less than thirty or twenty dollars per  week  respec-
tively,  he  or she shall receive his or her full weekly wages.  Compen-
sation for permanent or temporary partial disability due to an  accident
or disablement resulting from an occupational disease that occurs (1) on
or after January first, nineteen hundred seventy-eight, shall not exceed
one  hundred  five  dollars  per  week, that occurs (2) on or after July
first, nineteen hundred eighty-three, shall not exceed one hundred twen-
ty-five dollars per week, that occurs (3) on or after July first,  nine-
teen  hundred  eighty-four,  shall  not  exceed  one hundred thirty-five
dollars per week, that occurs (4)  on  or  after  July  first,  nineteen
hundred  eighty-five,  shall  not  exceed  one hundred fifty dollars per
week, that occurs (5) on or after July first, nineteen  hundred  ninety,
shall  not  exceed two hundred eighty dollars per week; nor be less than
twenty dollars per week; except that if the employee's wages at the time
of injury are less than twenty dollars per week, he or she shall receive
his or her full weekly wages.   In  no  event  shall  compensation  when
combined  with  decreased earnings or earning capacity exceed the amount
of wages which the  employee  was  receiving  at  the  time  the  injury
occurred. Compensation for permanent or temporary partial disability, or
for  permanent or temporary total disability due to an accident or disa-
blement resulting from an occupational disease that  occurs  (1)  on  or
after  July  first, nineteen hundred ninety-one and prior to July first,
nineteen hundred  ninety-two,  shall  not  exceed  three  hundred  fifty
dollars  per  week; (2) on or after July first, nineteen hundred ninety-
two, shall not exceed four hundred dollars per week; nor  be  less  than
forty  dollars  per week except that if the employee's wages at the time
of injury are less than forty  dollars  per  week,  the  employee  shall
receive  his  or her full wages. Compensation for permanent or temporary
partial disability, or for permanent or temporary total  disability  due
to  an  accident  or  disablement resulting from an occupational disease
that occurs (1) on or after July first, two  thousand  seven  shall  not
exceed  five  hundred  dollars per week, (2) on or after July first, two
thousand eight shall not exceed five hundred fifty dollars per week, (3)
on or after July first, two thousand nine shall not exceed  six  hundred
dollars  per week, and (4) on or after July first, two thousand ten, and
on or after July first of each succeeding year, shall  not  exceed  two-
thirds  of  the New York state average weekly wage for the year in which
it is reported. Compensation for permanent or temporary partial disabil-
ity, or for permanent or temporary total disability due to  an  accident
or  disablement resulting from an occupational disease that occurs on or
after July first, two thousand seven shall not be less than one  hundred
dollars  per  week  except  that  if the employee's wages at the time of
injury are less than one hundred dollars per week,  the  employee  shall
receive  his or her full wages.  COMPENSATION FOR PERMANENT OR TEMPORARY
PARTIAL DISABILITY, OR FOR PERMANENT OR TEMPORARY TOTAL  DISABILITY  DUE
TO  AN  ACCIDENT  OR  DISABLEMENT RESULTING FROM AN OCCUPATIONAL DISEASE
THAT OCCURS ON OR AFTER MAY FIRST, TWO THOUSAND THIRTEEN  SHALL  NOT  BE
LESS  THAN ONE HUNDRED FIFTY DOLLARS PER WEEK EXCEPT THAT IF THE EMPLOY-

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EE'S WAGES AT THE TIME OF INJURY ARE LESS THAN ONE HUNDRED FIFTY DOLLARS
PER WEEK, THE EMPLOYEE SHALL RECEIVE HIS OR HER FULL WAGES. In no  event
shall  compensation  when  combined  with  decreased earnings or earning
capacity  exceed  the  amount of wages the employee was receiving at the
time the  injury  occurred.  Compensation  for  permanent  or  temporary
partial  disability,  or for permanent or temporary total disability due
to an accident or disablement resulting from an occupational disease  or
injury  that  occurred as a result of World Trade Center rescue activity
by an employee of a private voluntary hospital, who  passed  a  physical
examination  upon  employment  as  a rescue worker that failed to reveal
evidence of a condition that was the proximate cause of  disablement  or
occupational  disease  or  injury,  shall not exceed three-quarters of a
claimant's wage on September eleventh, two thousand  one.  In  no  event
shall  compensation  when  combined  with  decreased earnings or earning
capacity exceed the amount  of  wages  the  employee  was  receiving  on
September eleventh, two thousand one.
  S  8.  Paragraph  (h)  of  subdivision 8 of section 15 of the workers'
compensation law, as amended by chapter 6 of the laws of 2007,  subpara-
graph  4 as amended by section 1 of part QQ of chapter 56 of the laws of
2009, the opening paragraph and clauses (A) and (B) of subparagraph 4 as
amended by section 1 of part G of chapter 57 of the laws  of  2011,  and
clause (B) of subparagraph 4 as further amended by section 104 of part A
of chapter 62 of the laws of 2011, is amended to read as follows:
  (h)  Special  disability  fund. (1) The fund heretofore maintained and
provided for by  and  pursuant  to  former  subdivision  eight  of  this
section, is hereby continued and shall retain the liabilities heretofore
charged or chargeable thereto under the provisions of such former subdi-
vision eight of this section as it existed immediately prior to the time
this  subdivision,  as  hereby  added, takes effect, and the liabilities
chargeable thereto under the provisions of former subdivision eight-a of
this section as added by chapter seven hundred forty-nine of the laws of
nineteen hundred forty-four and repealed at the same time this  subdivi-
sion,  as  heretofore  added,  takes  effect,  and payments therefrom on
account of such liabilities shall continue to be made as provided  here-
in.  The  said  fund  shall  be known as the special disability fund and
shall be available only for the purposes stated in this subdivision, and
the assets thereof shall not at any time be appropriated or diverted  to
any other use or purpose.
  (2)  (A) No carrier or employer, or the state insurance fund, may file
a claim for reimbursement from the special disability fund, for an inju-
ry or illness with a date of accident or date of disablement on or after
July first, two thousand seven. No carrier or  employer,  or  the  state
insurance  fund,  may  file  a  claim for reimbursement from the special
disability fund after July first,  two  thousand  ten,  and  no  written
submissions  or  evidence  in  support  of such a claim may be submitted
after that date.
  (B) All requests for reimbursement from the  special  disability  fund
with  a  date  of injury or date of disablement prior to July first, two
thousand seven as to which the board has  determined  that  the  special
disability  fund  is  liable must be submitted to the special disability
fund by the later of (i) one year after the expense has  been  paid,  or
(ii) one year from the effective date of this paragraph.
  [(C)  All  claims  for  reimbursement from the special disability fund
must be accompanied by a filing fee of two hundred fifty dollars, to  be
deposited  in  the special disability fund. Upon any final ruling that a

S. 2607--D                         138                        A. 3007--D

claim is eligible for reimbursement from the fund, the fund will  return
two hundred dollars of this fee to the claimant.]
  (3)  [The chair of the board shall, as soon as practicable after April
first, nineteen hundred forty-five, assess upon and  collect  from  each
insurance  carrier,  including  the state insurance fund and any county,
city, town, village or other political  subdivision  failing  to  secure
compensation pursuant to subdivision one or two of section fifty of this
chapter, a sum equal to one per centum of the total compensation paid by
such  carrier  in  the year ending March thirty-first next preceding the
date of such assessment.
  (4) As soon as practicable  after  May  first  in  the  year  nineteen
hundred  fifty-eight,  and  annually  thereafter  as soon as practicable
after January first in each succeeding year,] EFFECTIVE THE FIRST DAY OF
JANUARY, TWO THOUSAND FOURTEEN, AND ANNUALLY THEREAFTER,  the  chair  of
the  board  shall [assess upon and] collect from all [self-insurers, the
state insurance fund, and all insurance carriers] AFFECTED EMPLOYERS (A)
a sum equal to one hundred  fifty  per  centum  of  the  total  EXPECTED
disbursements  made from the special disability fund during the [preced-
ing calendar] year (not including any disbursements made on  account  of
anticipated liabilities or waiver agreements funded by bond proceeds and
related  earnings),  less the ESTIMATED amount of the net assets in such
fund EXPECTED as of December thirty-first [of  said  preceding  calendar
year,]  and  (B)  a sum sufficient to cover debt service, and associated
costs (the "debt service assessment") to be  paid  during  the  calendar
year  by  the  dormitory  authority,  as  calculated  in accordance with
subparagraph [five] FOUR of this paragraph. Such  assessments  shall  be
[allocated  to (i) self-insurers and the state insurance fund based upon
the proportion that the total compensation payments made by all self-in-
surers and the state insurance  fund  bore  to  the  total  compensation
payments  made  by  all self-insurers, the state insurance fund, and all
insurance carriers, and (ii) insurance carriers based upon  the  propor-
tion that the total compensation payments made by all insurance carriers
bore  to the total compensation payments by all self-insurers, the state
insurance fund and all insurance carriers during the fiscal  year  which
ended within said preceding calendar year.  Insurance carriers and self-
insurers shall be liable for all such assessments regardless of the date
on  which  they came into existence, or whether they have made any claim
for reimbursement from the special disability fund. The portion of  such
sum  allocated  to self-insurers and the state insurance fund that shall
be collected from each self-insurer and the state insurance  fund  shall
be  a  sum equal to the proportion of the amount which the total compen-
sation payments of each such self-insurer or the  state  insurance  fund
bore  to  the  total compensation payments made by all self-insurers and
the state insurance fund during the fiscal year which ended within  said
preceding  calendar year. The portion of such sum allocated to insurance
carriers that shall be collected from each insurance carrier shall be  a
sum  equal  to  that  proportion  of the amount which the total standard
premium by each such insurance carrier bore to the total standard premi-
um reported by all insurance carriers during  the  calendar  year  which
ended  within  said  preceding  fiscal  year. The payments from the debt
service assessment, unless otherwise set forth in the special disability
fund financing agreement, are  hereby  pledged  therefor  and  shall  be
deemed the first monies received on account of assessments in each year.
For  the  purposes  of this paragraph, "standard premium" shall mean the
premium as defined for the purposes of this  assessment  by  the  super-
intendent  of  financial services, in consultation with the chair of the

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board and the workers' compensation rating board. An  employer  who  has
ceased  to be a self-insurer shall continue to be liable for any assess-
ments into said fund on account of any compensation payments made by him
or  her  on his or her account during such fiscal year, and the security
fund, created under the provisions of section one hundred seven of  this
chapter, shall, in the event of the insolvency of any insurance company,
be  liable  for  any  assessments that would have been made against such
company except for its insolvency. No assessment shall be  payable  from
the  aggregate trust fund, created under the provisions of section twen-
ty-seven of this article, but such fund shall continue to be liable  for
all  compensation  that shall be payable under any award or order of the
board, the commuted value of which has been paid into such fund.    Such
assessments  when  collected shall be deposited with the commissioner of
taxation and finance for the benefit  of  such  fund.  Unless  otherwise
provided,  such assessments, shall not constitute an element of loss for
the purpose of establishing rates for compensation insurance  but  shall
for  the purpose of collection be treated as separate costs by carriers.
All insurance carriers and the state insurance fund, shall collect  such
assessments,  from  their  policyholders  through  a  surcharge based on
premiums in accordance with rules set forth  by  the  superintendent  of
financial  services  in  consultation with the New York workers' compen-
sation rating board and the chair of the board. Such surcharge shall  be
considered  as part of premium for purposes prescribed by law including,
but not limited to, computing premium tax, reporting to the  superinten-
dent of financial services pursuant to section ninety-nine of this chap-
ter  and  section  three hundred seven of the insurance law, determining
the limitation of expenditures  for  the  administration  of  the  state
insurance  fund pursuant to section eighty-eight of this chapter and the
cancellation by an insurance  carrier,  including  the  state  insurance
fund,  of  a  policy  for non-payment of premium. The provisions of this
paragraph shall not apply with respect to policies  containing  coverage
pursuant to subsection (j) of section three thousand four hundred twenty
of  the  insurance  law relating to every policy providing comprehensive
personal liability insurance on a one, two, three or four family  owner-
occupied  dwelling.   The state insurance fund shall notify its insureds
that such assessments, shall be, for the purpose of recoupment,  treated
as  separate costs, for the purpose of premiums billed on or after Octo-
ber first, nineteen  hundred  ninety-four.  For  the  purposes  of  this
section,  a "self-insurer" shall be: (i) an employer authorized to self-
insure under subdivision three of section fifty of this chapter,  active
groups  authorized  pursuant  to subdivision three-a of section fifty of
this chapter or a group of employers  authorized  to  self-insure  under
paragraph  ten  of subdivision three-a of section fifty of this chapter;
or (ii) a public employer authorized as set  forth  in  paragraph  a  of
subdivision  four  of section fifty of this chapter to self-insure under
subdivision three, three-a or four of such section or  article  five  of
this chapter, whether individually or as a group.
  For  the purposes of this paragraph, except as otherwise provided: the
term "insurance carrier" shall include only stock  corporations,  mutual
corporations and reciprocal insurers authorized to transact the business
of  workers' compensation insurance in this state; the term "self-insur-
er" shall include any employer or group of employers  permitted  to  pay
compensation directly under the provisions of subdivision three, three-a
or four of section fifty of this chapter.
  The  board  is hereby authorized to issue credits or refunds as neces-
sary, in the case of overpayments made to the fund. An insurance carrier

S. 2607--D                         140                        A. 3007--D

that knowingly underreports premiums for the purposes  of  this  section
shall  be  guilty  of  a class E felony] INCLUDED IN THE ASSESSMENT RATE
ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION ONE HUNDRED FIFTY-ONE
OF  THIS  CHAPTER.  SUCH ASSESSMENTS SHALL BE DEPOSITED WITH THE COMMIS-
SIONER OF TAXATION AND FINANCE AND TRANSFERRED TO THE  BENEFIT  OF  SUCH
FUND  FOLLOWING  PAYMENT  OF  DEBT SERVICE AND ASSOCIATED COSTS, IF ANY,
PURSUANT TO SECTION ONE HUNDRED FIFTY-ONE OF THIS CHAPTER.
  [(5) (A)] (4) The chair and the commissioner of taxation  and  finance
are authorized and directed to enter into a financing agreement with the
dormitory authority, to be known as the "special disability fund financ-
ing agreement." Such agreement shall set forth the process for calculat-
ing the annual debt service of the bonds issued by the dormitory author-
ity  and  any  other  associated  costs.  For  purposes of this section,
"associated costs" may include a coverage factor, reserve fund  require-
ments,  all  costs  of any nature incurred by the dormitory authority in
connection with the  special  disability  fund  financing  agreement  or
pursuant thereto, the operating costs of the waiver agreement management
office,  the  costs  of  any  independent  audits  undertaken under this
section, and any other costs for the implementation of this subparagraph
and the issuance of bonds by the dormitory authority, including interest
rate exchange payments, rebate payments, liquidity fees, credit provider
fees, fiduciary fees, remarketing, dealer,  auction  agent  and  related
fees  and  other similar bond-related expenses, unless otherwise funded.
By January first of each year, the dormitory authority shall provide  to
the  chair  the  calculation  of  the  amount expected to be paid by the
dormitory authority in debt service and associated costs for purposes of
calculating the debt service assessment as  set  forth  in  subparagraph
[four]  THREE  of this paragraph.  All monies received on account of any
assessment under subparagraph [four] THREE of this  paragraph  and  this
subparagraph  shall  be applied in accordance with this subparagraph and
in accordance with the financing agreement  until  the  financial  obli-
gations  of  the dormitory authority in respect to its contract with its
bondholders are met and all associated costs payable  to  the  dormitory
authority  have  been  paid,  notwithstanding any other provision of law
respecting secured transactions. This provision may be included  by  the
dormitory  authority in any contract of the dormitory authority with its
bondholders.
  The special disability fund financing agreement may restrict disburse-
ments, investments, or rebates, and may prescribe a system  of  accounts
applicable  to  the  special  disability  fund,  including custody of an
account with a trust indenture trustee that may  be  prescribed  by  the
dormitory  authority  as  part of its contract with the bondholders. For
purposes of this paragraph, the term "bonds" shall include notes  issued
in  anticipation of the issuance of bonds, or notes issued pursuant to a
commercial paper program.
  [(B) The chair may conduct periodic audits of any self-insurer, insur-
ance carrier and the state insurance fund concerning any information  or
payment required under this paragraph including any information relevant
to  the  payment  or  calculation  of any assessments. The self-insurer,
insurance carrier and the state insurance fund shall provide all  neces-
sary  documents  and  information  in  relation  to an audit in a manner
prescribed by the chair. Upon the determination  of  the  chair  that  a
self-insurer,  insurance  carrier or the state insurance fund has under-
paid an assessment as a result of its inaccurate reporting, the self-in-
surer, insurance carrier or the state insurance fund  upon  notice  from
the  chair, shall pay the full amount of the underpaid assessment, along

S. 2607--D                         141                        A. 3007--D

with interest at the rate of nine per  cent  per  annum  on  the  unpaid
assessment due not later than thirty days after such notice.
  (6)] (5) The commissioner of taxation and finance is hereby authorized
to  receive  and  credit to such special disability fund any sum or sums
that may at any time be contributed to the state by the United States of
America under any act of congress, or otherwise, to which the state  may
be or become entitled by reason of any payments made out of such fund.
  [(7)] (6) The commissioner of taxation and finance shall be the custo-
dian  of  said  fund  and,  unless otherwise provided for in the special
disability fund financing agreement, shall invest any surplus or reserve
moneys thereof in securities  which  constitute  legal  investments  for
savings  banks  under  the  laws  of  this state and in interest bearing
certificates of deposit of a bank or trust company located  and  author-
ized  to do business in this state or of a national bank located in this
state secured by a pledge of direct obligations of the United States  or
of  the  state  of  New  York  in  an amount equal to the amount of such
certificates of deposit, and may sell any of the securities  or  certif-
icates  of  deposit  in which such fund is invested if necessary for the
proper administration or in the best interest of  such  fund.  Disburse-
ments  from  such  fund as provided by this subdivision shall be made by
the commissioner of taxation and finance upon  vouchers  signed  by  the
chair  of  the  board  unless  the financing agreement provides for some
other means of authorizing such disbursements that is no less protective
of the fund.
  The commissioner of taxation and finance, as custodian of  such  fund,
annually  as  soon  as practicable after January first, shall furnish to
the chair of the workers' compensation board a statement  of  the  fund,
setting forth the balance of moneys in the said fund as of the beginning
of  the  calendar  year, the income of the fund, the summary of payments
out of the fund on account of reimbursements and other  charges  ordered
to  be  paid  by  the board, and all other charges against the fund, and
setting forth the balance of the fund remaining to its credit on  Decem-
ber  thirty-first.  Such statement shall be open to public inspection in
the office of the secretary of the board. The chair, not less than nine-
ty days after the issuance of the dormitory  authority's  annual  audit,
shall  furnish  to the temporary president of the senate and the speaker
of the assembly the following reports on the special disability fund:  a
revenue  and  operating  expense  statement;  a financing plan; a report
concerning the assets and liabilities; the number of  waiver  agreements
entered  into  by  the waiver agreement management office; the number of
claimants remaining in the fund; the estimated current unfunded  liabil-
ity  of the fund with respect to such claims; and a debt issuance report
including but not limited to (i) pledged assessment revenue and  securi-
tization  coverage,  (ii)  debt  service maturities, (iii) interest rate
exchange or similar agreements, and (iv) financing and issuance costs.
  The commissioner of taxation and  finance  may  establish  within  the
special  disability  fund  such  accounts  and sub-accounts as he or she
deems useful for the operation of the fund, or as necessary to segregate
moneys within the fund, subject  to  the  provisions  of  the  financing
agreement. The waiver agreement management office, as defined in section
thirty-two  of  this  article,  shall make application to the chair on a
quarterly basis for any administrative costs incurred by the office.
  S 9. Paragraph (i) of subdivision 8 of  section  15  of  the  workers'
compensation  law,  as  amended  by  chapter 635 of the laws of 1996, is
amended to read as follows:

S. 2607--D                         142                        A. 3007--D

  (i) When an application for  apportionment  of  compensation  is  made
under  this  subdivision,  the  chair of the workers' compensation board
shall appoint [a representative of] AN ATTORNEY TO REPRESENT AND  DEFEND
such  fund  in  such  proceedings[,  but  whenever it shall appear that,
through  any  committee,  board  or  organization  representative of the
interest of employers  or  insurance  carriers,  an  attorney  has  been
appointed  to  act  for  and  on  behalf of such employers and insurance
carriers generally to represent such fund  in  any  proceedings  brought
hereunder,  the  chair  of  the board may designate such attorney as the
representative of such special disability fund in proceedings  involving
claims  against such fund].  Such [representative] ATTORNEY shall there-
after be given notice of all proceedings involving the rights  or  obli-
gations  of  such fund. Such [representative] ATTORNEY  may apply to the
chair of the board for authority to hire such medical and other  experts
and to defray the expense thereof and of such witnesses as may be neces-
sary  to  a  proper  defense  of  any  claim,  within  an  amount in the
discretion of the chair and, if  authorized,  such  amount  shall  be  a
charge against such special disability fund.
  The  provisions  of  this chapter with respect to procedure, except as
may be otherwise provided in this subdivision, and the right  of  appeal
shall  be preserved to the claimant and to the employer or his insurance
carrier and to such fund through its [representative  and]  attorney  as
herein provided.
  S 10. Section 23 of the workers' compensation law, as amended by chap-
ter 6 of the laws of 2007, is amended to read as follows:
  S  23.  Appeals.  An award or decision of the board shall be final and
conclusive upon all questions within its jurisdiction,  as  against  the
state fund or between the parties, unless reversed or modified on appeal
therefrom  as  hereinafter  provided.  Any  party may within thirty days
after notice of the filing of an award or decision of  a  referee,  file
with  the  board an application in writing for a modification or rescis-
sion or review of such award or decision, as provided in  this  chapter.
The board shall render its decision upon such application in writing and
shall include in such decision a statement of the facts which formed the
basis  of its action on the issues raised before it on such application.
Within thirty days after notice of the decision of the board  upon  such
application  has  been  served  upon  the parties, or within thirty days
after notice of an administrative redetermination review decision by the
chair pursuant to subdivision five of  section  fifty-two,  section  one
hundred  thirty-one  or  section one hundred forty-one-a of this chapter
has been served upon any party in interest, an appeal may be taken ther-
efrom to the appellate division of the supreme court, third  department,
by  any  party  in  interest, including an employer insured in the state
fund; provided, however, that [if the decision or determination was that
of a panel of the board and there was a dissent from  such  decision  or
determination  other  than a dissent the sole basis of which is to refer
the case to an impartial specialist,] any party in interest  may  within
thirty  days  after  notice  of the filing of the board panel's decision
with the secretary of the board, make application in writing for  review
thereof  by the full board[, and].  IF THE DECISION OR DETERMINATION WAS
THAT OF A PANEL OF THE BOARD AND THERE WAS A DISSENT FROM SUCH  DECISION
OR  DETERMINATION  OTHER  THAN  A  DISSENT THE SOLE BASIS OF WHICH IS TO
REFER THE CASE TO AN IMPARTIAL SPECIALIST, the full board  shall  review
and affirm, modify or rescind such decision or determination in the same
manner  as  herein above provided for an award or decision of a referee.
IF THE DECISION OR DETERMINATION WAS THAT OF A UNANIMOUS  PANEL  OF  THE

S. 2607--D                         143                        A. 3007--D

BOARD,  OR  THERE  WAS A DISSENT FROM SUCH DECISION OR DETERMINATION THE
SOLE BASIS OF WHICH IS TO REFER THE CASE TO AN IMPARTIAL SPECIALIST, THE
BOARD MAY IN ITS SOLE DISCRETION REVIEW AND AFFIRM,  MODIFY  OR  RESCIND
SUCH  DECISION  OR  DETERMINATION  IN  THE  SAME  MANNER AS HEREIN ABOVE
PROVIDED FOR AN AWARD OR DECISION OF A REFEREE.  Failure  to  apply  for
review by the full board shall not bar any party in interest from taking
an  appeal directly to the court as above provided.  The board may also,
in its discretion certify to such  appellate  division  of  the  supreme
court,  questions  of law involved in its decision. Such appeals and the
question so certified shall be heard in a summary manner and shall  have
precedence  over all other civil cases in such court. The board shall be
deemed a party to every such appeal from its decision upon such applica-
tion, and the chair shall be deemed a party to every such appeal from an
administrative redetermination review decision pursuant  to  subdivision
five  of  section  fifty-two of this chapter. The attorney general shall
represent the board and the chair thereon. An appeal may also  be  taken
to the court of appeals in the same manner and subject to the same limi-
tations  not inconsistent herewith as is now provided in the civil prac-
tice law and rules. It shall not be necessary to file exceptions to  the
rulings of the board. An appeal to the appellate division of the supreme
court,  third  department, or to the court of appeals, shall not operate
as a stay of the payment of compensation required by the  terms  of  the
award  or  of the payment of the cost of such medical, dental, surgical,
optometric or other attendance, treatment, devices, apparatus  or  other
necessary  items the employer is required to provide pursuant to section
thirteen of this article which are found  to  be  fair  and  reasonable.
Where  such  award  is  modified or rescinded upon appeal, the appellant
shall be entitled to reimbursement in a sum equal to the compensation in
dispute paid to the respondent in addition to a sum equal to the cost of
such medical, dental, surgical, optometric or other  attendance,  treat-
ment,  devices,  apparatus  or  other  necessary  items  the employer is
required to provide pursuant to section thirteen of this article paid by
the appellant pending adjudication of  the  appeal.  Such  reimbursement
shall  be  paid  from administration expenses as provided in section one
hundred fifty-one of this chapter upon audit and warrant  of  the  comp-
troller upon vouchers approved by the chair. Where such award is subject
to the provisions of section twenty-seven of this article, the appellant
shall  pay  directly  to the claimant all compensation as it becomes due
during the pendency of the appeal, and upon affirmance shall be entitled
to credit for such payments. Neither the chair, the board,  the  commis-
sioners  of  the state insurance fund nor the claimant shall be required
to file a bond upon an appeal to the court of appeals. Upon final deter-
mination of such an appeal, the board or chair,  as  the  case  may  be,
shall  enter  an  order  in  accordance  therewith. Whenever a notice of
appeal is served or an application made to the board by the employer  or
insurance carrier for a modification or rescission or review of an award
or  decision,  and  the  board shall find that such notice of appeal was
served or such application was made for the purpose  of  delay  or  upon
frivolous  grounds,  the  board  shall impose a penalty in the amount of
five hundred dollars upon  the  employer  or  insurance  carrier,  which
penalty shall be added to the compensation and paid to the claimant. The
penalties  provided  herein shall be collected in like manner as compen-
sation. A party against whom an award of compensation shall be made  may
appeal  from  a  part  of such award. In such a case the payment of such
part of the award as is not appealed from shall not prejudice any rights
of such party on appeal, nor be  taken  as  an  admission  against  such

S. 2607--D                         144                        A. 3007--D

party.  Any appeal by an employer from an administrative redetermination
review decision pursuant to subdivision five  of  section  fifty-two  of
this  chapter  shall  in  no  way serve to relieve the employer from the
obligation  to timely pay compensation and benefits otherwise payable in
accordance with the provisions of this chapter.
  Nothing [herein] contained IN  THIS  SECTION  shall  be  construed  to
inhibit  the continuing jurisdiction of the board as provided in section
one hundred twenty-three of this chapter.
  S 11.  Intentionally omitted.
  S 12. The opening paragraph of subdivision 2 of  section  142  of  the
workers'  compensation  law,  as  amended  by chapter 608 of the laws of
1989, is amended to read as follows:
  Any review, hearing, rehearing, inquiry or investigation  required  or
authorized  to  be  conducted or made by the workers' compensation board
may be conducted or made by any panel of the  board  consisting  of  not
less  than  three  members  thereof, and the order, decision or determi-
nation of a majority of the members of  a  panel  shall  be  deemed  the
order,  decision  or  determination of the board from the date of filing
thereof with the secretary of the board, unless the  board  on  its  own
motion, or on application by a party in interest for a full board review
MADE  IN  ACCORDANCE  WITH  SECTION  TWENTY-THREE OF THIS CHAPTER, shall
modify or rescind such order, decision or determination.    Four  panels
shall  be  constituted  at  all  times,  and  the chair shall assign the
members to the panels upon which they shall serve. At least  one  member
on  each  panel  shall  be  an  attorney  and counsellor-at-law, but the
absence of an attorney on any panel  shall  not  invalidate  the  order,
decision  or  determination of a majority of the members of the panel if
at least two affirmative votes are cast in favor  of  such  action.  The
panels  shall  be  constituted  so  that  the members of the board shall
alternate in their periods  of  service  together  thereon.  Whenever  a
number  of  proceedings remains pending before the board for a period in
excess of thirty days, members of the  board  shall  hold  hearings  and
otherwise  act  in  the  discharge of their duties evenings and at other
convenient times on all days of the week except Sundays, in addition  to
the times when they would perform such duties in the ordinary conduct of
the  business  of  the board, in order to expedite the disposal thereof.
The chair may and shall, when directed by the  governor,  prescribe  the
hours  and  the  times  for  such  additional performance of duty by the
members of the board and the period or periods for the continuance ther-
eof.
  S 13. Subdivisions 1, 3 and 5 of section 25-a of the workers'  compen-
sation  law,  subdivisions 1 and 5 as amended by chapter 113 of the laws
of 1946, subdivision 3 as amended by chapter 6 of the laws of 2007,  and
the second and third undesignated paragraphs of subdivision 3 as further
amended  by section 104 of part A of chapter 62 of the laws of 2011, are
amended to read as follows:
  1. Notwithstanding other provisions of this chapter, when an  applica-
tion  for  compensation  is made by an employee or for death benefits in
behalf of the dependents of a deceased employee, and  the  employer  has
secured  the payment of compensation in accordance with section fifty of
this chapter, (1) after a lapse of seven years  from  the  date  of  the
injury  or  death  and claim for compensation previously has been disal-
lowed or claim has been  otherwise  disposed  of  without  an  award  of
compensation,  or  (2) after a lapse of seven years from the date of the
injury or death and also a lapse of three years from  the  date  of  the
last  payment  of  compensation,  or  (3) where death resulting from the

S. 2607--D                         145                        A. 3007--D

injury shall occur after the time limited by the foregoing provisions of
(1) or (2) shall have elapsed, subject to the provisions of section  one
hundred  [and]  twenty-three  of  this  chapter, testimony may be taken,
either directly or through a referee and if an award is made it shall be
against  the  special fund provided by this section. Such an application
for compensation or death benefits must be made on a form prescribed  by
the [chairman] CHAIR for that purpose and must, if a change in condition
is  claimed,  be  accompanied  by  a verified medical or surgical report
setting forth facts on which the board may order a hearing.
  1-A. Any award which shall be made against such special fund after the
effective date of this act upon such an application for compensation  or
death  benefits  shall  not be retroactive for a period of disability or
for death benefits longer than the two years immediately  preceding  the
date  of  filing  of such application.  NO APPLICATION BY A SELF-INSURED
EMPLOYER OR AN INSURANCE CARRIER FOR TRANSFER OF LIABILITY OF A CLAIM TO
THE FUND FOR REOPENED CASES SHALL BE ACCEPTED BY THE BOARD ON  OR  AFTER
THE  FIRST  DAY  OF JANUARY, TWO THOUSAND FOURTEEN EXCEPT THAT THE BOARD
MAY MAKE A FINDING AFTER SUCH DATE PURSUANT TO SECTION  TWENTY-THREE  OF
THIS ARTICLE UPON A TIMELY APPLICATION FOR REVIEW.
  3. Any awards so made shall be payable out of the special fund hereto-
fore  created for such purpose, which fund is hereby continued and shall
be known as the fund for reopened cases. The employer, or,  if  insured,
his  insurance  carrier  shall  pay  into  such fund, or, in the case of
awards made on or after July first, nineteen hundred sixty-nine,  either
into  such  fund  or the uninsured employers' fund under section twenty-
six-a of this article in accordance with  the  provisions  thereof,  for
every  case of injury causing death for which there are no persons enti-
tled to compensation the sum of three hundred dollars where such  injury
occurred  prior to July first, nineteen hundred forty and the sum of one
thousand dollars where such injury shall occur on or after said date and
prior to April first,  nineteen  hundred  forty-five,  and  the  sum  of
fifteen  hundred dollars where such injury shall occur on or after April
first, nineteen hundred forty-five and prior to September  first,  nine-
teen  hundred  seventy-eight and the sum of three thousand dollars where
such injury shall occur on or after September  first,  nineteen  hundred
seventy-eight, and in each case of death resulting from injury sustained
on  or  after  July first, nineteen hundred forty and prior to September
first, nineteen hundred seventy-eight, where there are persons  entitled
to  compensation  but the total amount of such compensation is less than
two thousand dollars exclusive of funeral benefits, the employer, or, if
insured, his insurance carrier, shall pay into such  fund,  or,  in  the
case  of awards made on or after July first, nineteen hundred sixty-nine
and prior to September first,  nineteen  hundred  seventy-eight,  either
into  such  fund  or the uninsured employers' fund under section twenty-
six-a of this article in accordance with  the  provisions  thereof,  the
difference between the sum of two thousand dollars and the compensation,
exclusive  of funeral benefits, and in each case of death resulting from
injury sustained on or after September first, nineteen hundred  seventy-
eight, the employer, or if insured, his insurance carrier shall pay into
such fund or the uninsured employers' fund under section twenty-six-a of
this  article  in accordance with the provisions thereof, the difference
between the sum of five thousand dollars and the compensation, exclusive
of funeral benefits actually paid  to  or  for  the  dependents  of  the
deceased  employee  together with any expense charge required by section
twenty-seven of this article; provided, however, that where death  shall
occur  subsequent  to  the  periods  limited  by subdivision one of this

S. 2607--D                         146                        A. 3007--D

section no payment into such  special  fund  nor  to  the  special  fund
provided  by  subdivision  nine  of section fifteen nor to the uninsured
employers' fund provided by section twenty-six-a of this  article  shall
be  required.  In addition to the assessments made against all insurance
carriers for the expenses of administering  this  chapter  provided  for
under  the  provisions of section one hundred fifty-one of this chapter,
and the payments above provided,  the  employer,  or,  if  insured,  his
insurance  carrier, shall pay the sum of five dollars into said fund for
each case in which an award is made pursuant to the provisions of  para-
graphs  a to s inclusive of subdivision three of section fifteen of this
chapter, by reason of injury  sustained  between  July  first,  nineteen
hundred forty and June thirtieth, nineteen hundred forty-two, both dates
inclusive,  and  the  sum of ten dollars for each such case by reason of
injury sustained between July first, nineteen hundred forty-two and June
thirtieth, nineteen hundred fifty, both dates inclusive,  which  payment
shall  be  in  addition  to  any  payment of compensation to the injured
employee as provided in this chapter.
  There shall be maintained in the special fund at all times  assets  at
least  equal  in  value  to  the  sum of (1) the value of awards charged
against such fund, (2) the value of all claims that have  been  reopened
by  the  board as a charge against such fund but as to which awards have
not yet been made, (3) effective January first, nineteen hundred  seven-
ty-one,  the  VALUE  OF total supplemental benefits TO BE paid from such
fund as reimbursement pursuant  to  subdivision  nine  of  this  section
[during  the  calendar  year  immediately  preceding], and (4) a reserve
equal to ten per cent of the sum of items (1) [and], (2) AND (3) of this
paragraph. [For the purpose of accumulating funds  for  the  payment  of
supplemental  benefits pursuant to subdivision nine of this section, the
chairman shall impose against all carriers an assessment in the  sum  of
five  million  dollars  to  be  collected  in the respective proportions
established in the fiscal year commencing April first, nineteen  hundred
sixty-eight,  under  the  provisions of section one hundred fifty-one of
this chapter for each carrier.] Annually, as soon as  practicable  after
January  first  in  each  year, the [chairman] CHAIR shall ascertain the
condition of the fund and whenever  the  assets  shall  fall  below  the
prescribed minimum as herein provided the [chairman] CHAIR shall [assess
and] collect [from all insurance carriers, in the respective proportions
established in the prior fiscal year under the provisions of section one
hundred  fifty-one  of  this chapter for each carrier,] an amount suffi-
cient to restore the fund  to  the  prescribed  minimum.  [The  chairman
before making an assessment as provided in this section shall give thir-
ty  days'  notice to the representative of the fund, designated pursuant
to subdivision five of this section, that an itemized statement  of  the
condition  of the fund is open for his inspection. The superintendent of
financial services may examine into the condition of  the  fund  at  any
time  on  his  own initiative or on request of the chairman or represen-
tative of the fund.
  Such assessment and the payments made into said fund shall not consti-
tute an element of loss for the purpose of establishing rates for  work-
ers'  compensation  insurance as provided in the insurance law but shall
for the purpose of recoupment be treated as separate costs by  carriers.
Carriers  shall  assess  such costs on their policyholders in accordance
with rules set forth by the New York workers' compensation rating board,
as approved by the superintendent of financial services.] COMMENCING  ON
THE  FIRST  OF JANUARY, TWO THOUSAND FOURTEEN, THE AMOUNT COLLECTED FROM
ALL EMPLOYERS REQUIRED TO OBTAIN WORKERS' COMPENSATION COVERAGE TO MAIN-

S. 2607--D                         147                        A. 3007--D

TAIN THE FINANCIAL INTEGRITY OF THE FUND MAY BE PAID OVER  A  PERIOD  OF
TIME AT THE DISCRETION OF THE CHAIR BASED UPON AN ANALYSIS OF THE FINAN-
CIAL  CONDITION  OF  THE FUND.   SUCH PAYMENT AS DETERMINED BY THE CHAIR
SHALL  BE INCLUDED IN THE ASSESSMENT RATE ESTABLISHED PURSUANT TO SUBDI-
VISION TWO OF SECTION ONE HUNDRED FIFTY-ONE OF THIS CHAPTER.  THE  CHAIR
SHALL  PROMULGATE  REGULATIONS  TO ADMINISTER CLAIMS WHOSE LIABILITY HAS
BEEN TRANSFERRED TO THE FUND FOR REOPENED CASES.  SUCH  REGULATIONS  MAY
INCLUDE EXERCISE OF THE CHAIR'S AUTHORITY TO ADMINISTER EXISTING CLAIMS,
TO  PROCURE MANAGEMENT FOR THOSE CLAIMS, OR TO SELL SUCH LIABILITY.  THE
CHAIR MAY EXAMINE INTO THE CONDITION OF THE FUND AT ANY TIME ON  HIS  OR
HER OWN INITIATIVE OR ON REQUEST OF THE ATTORNEY OF THE FUND.
  The  provisions  of  this  subdivision shall not apply with respect to
policies containing coverage pursuant  to  section  thirty-four  hundred
twenty  of  the insurance law relating to every policy providing compre-
hensive personal liability insurance on a one, two, three or four family
owner-occupied dwelling.
  5. [When an application] FOR APPLICATIONS BY SELF-INSURED EMPLOYERS OR
INSURANCE CARRIERS FOR TRANSFER OF LIABILITY for compensation [is  made]
TO THE FUND FOR REOPENED CASES under this section, RECEIVED BY THE BOARD
PRIOR TO THE FIRST DAY OF JANUARY, TWO THOUSAND FOURTEEN, the [chairman]
CHAIR  shall appoint [a representative of such fund] AN ATTORNEY in such
proceedings [and, insofar as practicable, such representative shall be a
person designated by the employer originally liable for the  payment  of
compensation,  or his insurance carrier, but whenever it shall appear to
the chairman that through any committee, board or organization or repre-
sentative of the interest of the insurance carriers an attorney has been
appointed to act for and on behalf of such carriers generally to  repre-
sent  such fund in any proceedings brought hereunder, the chairman shall
designate such attorney as the representative of the] TO REPRESENT  SUCH
fund  in  proceedings brought to enforce a claim against such fund. Such
[representative] ATTORNEY may apply to the [chairman] CHAIR for authori-
ty to hire such medical or other experts and to defray the expense ther-
eof and of such witnesses as are necessary to a proper  defense  of  the
application  within  an amount in the discretion of the [chairman] CHAIR
and, if authorized, it shall  be  a  charge  against  the  special  fund
provided herein.
  S 14. Intentionally omitted.
  S 15. Intentionally omitted.
  S  16. Subdivision (e) of section 32 of the workers' compensation law,
as added by chapter 6 of the  laws  of  2007,  is  amended  to  read  as
follows:
  (e)  The  chair shall establish an office under his or her supervision
to be known as the "waiver agreement management  office,"  to  negotiate
and  seek  board approval for waiver agreements on behalf of the special
disability fund. The office shall operate in accordance with  guidelines
or directives that the chair may issue, as approved by the special disa-
bility  fund advisory committee, or in the absence of such guidelines or
directives, using such discounting factors as the office determines  are
in  the  financial  interest  of the special disability fund. The waiver
agreement management office on behalf of the special disability fund may
enter into a waiver agreement with a  claimant  only  when  the  special
disability  fund  has  been  found  liable by the board to reimburse the
claimant's employer, insurance carrier  or  the  state  insurance  fund.
Notwithstanding any other provisions of law, no consultation or approval
of  any employer, insurance carrier, self-insurer[,] OR the state insur-
ance fund[, or  the  special  funds  conservation  committee]  shall  be

S. 2607--D                         148                        A. 3007--D

required  before  such  office  may  enter into any waiver agreement, or
before the board may approve such waiver agreement. The  chair  may,  in
his  or  her  discretion, and as approved by the special disability fund
advisory  committee,  terminate  the  operation  of the waiver agreement
management office, if he or she believes it no longer serves the  inter-
est of the special disability fund.
  S  17.    Clause 2 of subparagraph (a) of  paragraph 10 of subdivision
3-a of section 50 of the workers' compensation law, as added by  section
4  of  part  G  of chapter 57 of the laws of 2011, is amended to read as
follows:
  (2) The members of the group, through the administrator,  (a)  jointly
deposit  sufficient  securities  in accordance with subdivision three of
this section [as] OR IN A TRUST GOVERNED IN ACCORDANCE WITH PART 126  OF
TITLE  11  OF  THE  NEW YORK CODE OF RULES AND REGULATIONS to secure the
liability of the members of the group to pay  for  all  existing  claims
obligations,  provided such deposit shall be made by November first, two
thousand eleven, (b) jointly deposit sufficient securities in accordance
with subdivision three of this section [as] OR IN A  TRUST  GOVERNED  IN
ACCORDANCE  WITH  PART 126 OF TITLE 11 OF THE NEW YORK CODE OF RULES AND
REGULATIONS to secure all anticipated present and future claims  of  the
members of the group, by November first, two thousand fourteen, provided
annual  deposits are made in accordance with a schedule set by the chair
on or before November first of each year, and provided that the  deposit
shall be deemed an asset of the group for the purpose of determining its
funding status, and (c) by November first, two thousand eleven and ther-
eafter,  shall  maintain  funds  sufficient  for  all  other liabilities
besides claims[, including reserves for all assessment liabilities,]  in
a trust governed in accordance with Part 126 of title 11 of the New York
code  of  rules  and  regulations,  of which the board shall be the sole
beneficiary, and the terms of the  trust  agreement,  and  the  trustee,
shall  be  approved  by  the  chair  in  his or her sole discretion, and
provided that any group self-insurer that does not hold such funds in  a
trust  that  meets  the terms of this paragraph shall post them with the
board;
  S 18. Section 50-a of the workers' compensation law, as added by chap-
ter 139 of the laws of 2008, subdivision 2 as amended by  section  1  of
part R of chapter 56 of the laws of 2010 and subdivision 3 as amended by
section  1  of  part  R of chapter 55 of the laws of 2012, is amended to
read as follows:
  S 50-a. [Group self-insurer default] SELF-INSURER offset fund. 1.  The
chair shall [create] MAINTAIN a fund to be known as the [group] self-in-
surer  [default]  offset  fund  and  such fund shall be held in the sole
custody of the chair. The chair may transfer the money in such  fund  to
the  administrative  account  as  necessary to effectuate the purpose of
this section. The chair shall use the money in the  fund  to  pay  UNMET
claims for [defaulted group] self-insurers[, where sufficient moneys for
such  payment  have  not  been  collected  or  are not anticipated to be
collected from members of a defaulted group self-insurer, or  to  offset
such  amount  against  any  assessment it would otherwise impose against
private individual and group self-insurers under paragraph (g) of subdi-
vision five of section fifty of this article].
  2. At any time prior to April first, two thousand  eleven,  the  chair
may  withdraw funds from the uninsured employers fund provided for under
section twenty-six-a of this chapter, up to such  amount  as  the  chair
determines  is sufficient to fund any anticipated additional expenses of
such fund, taking into account anticipated available revenues, but in no

S. 2607--D                         149                        A. 3007--D

event to exceed seventy-five million  dollars  in  the  aggregate.  Such
funds  shall be deposited into the [group] self-insurer offset fund, and
used in accordance with subdivision one of this section.  As  consistent
with  this  section, the chair may set the timing of such withdrawals in
its discretion.
  3. Beginning in two thousand fifteen, and each  year  thereafter,  the
chair  shall add to the total of each annual assessment made under para-
graph g of subdivision five of section fifty of this article the sum  of
up  to three million dollars, to be allocated to private group and indi-
vidual self-insurers in accordance with such paragraph. The chair  shall
assess additional funds under this paragraph as necessary to insure that
there  are  sufficient funds in the fund for uninsured employers to meet
its liabilities, or if necessary in accordance with section one  hundred
fifty-one  of this chapter. Such funds as are collected pursuant to this
subdivision shall be deposited into the uninsured  employer  fund  until
all  funds withdrawn therefrom under subdivision one of this section are
returned with interest calculated at an annual rate equal to the rate of
return on funds in the fund for uninsured employers from the prior year.
  4. At such time as the board is not obligated to pay any UNMET  claims
[arising out] of a [defaulted] self-insurer, the fund created under this
section  shall  be  closed, and any money remaining in the fund shall be
deposited into the uninsured employer fund.
  S 19. Subdivision 5 of section 52 of the workers' compensation law, as
amended by chapter 139 of the laws  of  2008,  is  amended  to  read  as
follows:
  5. The chair, upon finding that an employer has failed for a period of
not  less than ten consecutive days to make the provision for payment of
compensation required by section fifty of this article, may impose  upon
such  employer, in addition to all other penalties, fines or assessments
provided for in this chapter, a penalty of UP TO  two  thousand  dollars
for  each ten day period of non-compliance or a sum not in excess of two
times the cost of compensation for its payroll for the  period  of  such
failure,  which  sum  shall  be  paid into the uninsured employers' fund
created under section twenty-six-a of this  chapter.  When  an  employer
fails  to  provide  business  records  sufficient to enable the chair to
determine the employer's payroll for the period requested for the calcu-
lation of the penalty provided  in  this  section,  the  imputed  weekly
payroll  for each employee, corporate officer, sole proprietor, or part-
ner shall be the New York state average weekly wage, multiplied by  1.5.
Where the employer is a corporation, the president, secretary and treas-
urer  thereof  shall  be  liable  for the penalty. If the employer shall
within thirty days after notice of the imposition of a  penalty  by  the
chair pursuant to this subdivision make an application in affidavit form
for  a redetermination review of such penalty the [chairman] CHAIR shall
make a decision in writing on the issues raised on such application.
  S 20. Section 87 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, subdivision 1 as amended by  chapter  6  of
the  laws  of  2007,  subdivision  1, paragraph (a) of subdivision 2 and
subdivision 3 as further amended by section 104 of part A of chapter  62
of the laws of 2011, is amended to read as follows:
  S  87.  Investment  of  surplus or reserve. 1. Any of the [surplus or]
reserve funds belonging to the state insurance fund,  by  order  of  the
commissioners, approved by the superintendent of financial services, may
be  invested  in  the types of securities described in subdivisions one,
two, three, four, five, six, eleven, twelve, twelve-a,  thirteen,  four-
teen,  fifteen, nineteen, twenty, twenty-one, twenty-one-a, twenty-four,

S. 2607--D                         150                        A. 3007--D

twenty-four-a, twenty-four-b, twenty-four-c and twenty-five  of  section
two  hundred  thirty-five of the banking law or[, up to fifty percent of
such surplus or reserve funds, in the types of securities or investments
described]  in  [paragraphs]  PARAGRAPH  two[,  three, eight and ten] of
subsection (a) of section one thousand four hundred four of  the  insur-
ance  law except that up to [ten] FIVE percent of [the surplus and] SUCH
reserve funds [belonging to  the  state  insurance  fund  that]  may  be
invested in the securities of any solvent American institution [or of an
investment  company]  as  described in such [paragraphs may be invested]
PARAGRAPH irrespective of the rating of such  institution's  obligations
or  other  similar  qualitative  standards described [in paragraphs two,
three, eight and ten of such  subsection,  but  shall  not  include  any
derivative  instrument or derivative transaction or any investment found
by the superintendent of financial services to be against public policy.
Any of the surplus or reserve funds belonging  to  the  state  insurance
fund,  upon  like  approval of the superintendent of financial services,
may be loaned on the pledge of any such securities.  The  commissioners,
upon like approval of the superintendent of financial services, may also
sell any of such securities or investments] THEREIN.
  2.  ANY OF THE SURPLUS FUNDS BELONGING TO THE STATE INSURANCE FUND, BY
ORDER  OF THE COMMISSIONERS, APPROVED BY THE SUPERINTENDENT OF FINANCIAL
SERVICES, MAY BE INVESTED IN THE TYPES OF SECURITIES DESCRIBED IN SUBDI-
VISIONS ONE, TWO, THREE, FOUR,  FIVE,  SIX,  ELEVEN,  TWELVE,  TWELVE-A,
THIRTEEN, FOURTEEN, FIFTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWENTY-ONE-A,
TWENTY-FOUR, TWENTY-FOUR-A, TWENTY-FOUR-B, TWENTY-FOUR-C AND TWENTY-FIVE
OF  SECTION  TWO  HUNDRED THIRTY-FIVE OF THE BANKING LAW OR, UP TO FIFTY
PERCENT OF SURPLUS FUNDS, IN THE  TYPES  OF  SECURITIES  OR  INVESTMENTS
DESCRIBED  IN  PARAGRAPHS TWO, THREE, EIGHT AND TEN OF SUBSECTION (A) OF
SECTION ONE THOUSAND FOUR HUNDRED FOUR OF THE INSURANCE LAW, EXCEPT THAT
UP TO TEN PERCENT OF SURPLUS FUNDS MAY BE INVESTED IN THE SECURITIES  OF
ANY  SOLVENT  AMERICAN INSTITUTION AS DESCRIBED IN SUCH PARAGRAPHS IRRE-
SPECTIVE OF THE RATING OF SUCH INSTITUTION'S OBLIGATIONS OR OTHER  SIMI-
LAR  QUALITATIVE  STANDARDS DESCRIBED THEREIN, AND UP TO FIFTEEN PERCENT
OF SURPLUS FUNDS IN SECURITIES OR INVESTMENTS  WHICH  DO  NOT  OTHERWISE
QUALIFY  FOR  INVESTMENT  UNDER  THIS  SECTION AS SHALL BE MADE WITH THE
CARE, PRUDENCE AND DILIGENCE UNDER  THE  CIRCUMSTANCES  THEN  PREVAILING
THAT  A  PRUDENT PERSON ACTING IN A LIKE CAPACITY AND FAMILIAR WITH SUCH
MATTERS WOULD USE IN THE CONDUCT OF AN ENTERPRISE OF  A  LIKE  CHARACTER
AND  WITH  LIKE AIMS AS PROVIDED FOR THE STATE INSURANCE FUND UNDER THIS
ARTICLE, BUT SHALL NOT  INCLUDE  ANY  DIRECT  DERIVATIVE  INSTRUMENT  OR
DERIVATIVE TRANSACTION EXCEPT FOR HEDGING PURPOSES.  NOTWITHSTANDING ANY
OTHER PROVISION IN THIS SUBDIVISION, THE AGGREGATE AMOUNT THAT THE STATE
INSURANCE  FUND  MAY  INVEST  IN  THE TYPES OF SECURITIES OR INVESTMENTS
DESCRIBED IN PARAGRAPHS THREE,  EIGHT  AND  TEN  OF  SUBSECTION  (A)  OF
SECTION  ONE  THOUSAND  FOUR  HUNDRED FOUR OF THE INSURANCE LAW AND AS A
PRUDENT PERSON ACTING IN A LIKE CAPACITY WOULD  INVEST  AS  PROVIDED  IN
THIS SUBDIVISION SHALL NOT EXCEED FIFTY PERCENT OF SUCH SURPLUS FUNDS.
  3.  ANY  OF THE SURPLUS OR RESERVE FUNDS BELONGING TO THE STATE INSUR-
ANCE FUND,  UPON  LIKE  APPROVAL  OF  THE  SUPERINTENDENT  OF  FINANCIAL
SERVICES,  MAY  BE  LOANED  ON  THE  PLEDGE  OF ANY SUCH SECURITIES. THE
COMMISSIONERS, UPON LIKE APPROVAL OF  THE  SUPERINTENDENT  OF  FINANCIAL
SERVICES, MAY ALSO SELL ANY OF SUCH SECURITIES OR INVESTMENTS.
  [2.]  4. (a) Any securities belonging to the state insurance fund may,
by order of the commissioners, approved by the superintendent of  finan-
cial  services, be loaned under a security loan agreement, as defined in
paragraph (b) of this subdivision, entered into with a registered  brok-

S. 2607--D                         151                        A. 3007--D

er-dealer,  or  a New York state or national bank or trust company, with
the custodial bank of the state insurance  fund  or  another  person  or
entity,  approved  by  the  commissioner  of taxation and finance, which
specializes in security loan transactions acting as the agent in arrang-
ing  such agreement. The commissioners shall monitor the market value of
the loaned securities daily. In no event shall the  commissioners  allow
the value of the collateral posted to fall below the market value of the
loaned securities.
  (b) For purposes of this section, "security loan agreement" shall mean
a written contract, the terms of which have been approved by the commis-
sioner  of  taxation  and finance, whereby the state insurance fund (the
lender) agrees to lend securities to  a  broker-dealer,  bank  or  trust
company  described  in  paragraph (a) of this subdivision (the borrower)
for a period not to exceed one year. However, such  agreement  shall  be
subject  to  the  following  limitations: (i) the lender must retain the
right to collect from the borrower all  dividends,  interest,  premiums,
rights,  and any other distributions to which the lender would otherwise
have been entitled; (ii) the lender may waive  the  right  to  vote  the
securities  during  the  term  of  such agreement; (iii) the lender must
retain the right to terminate such agreement upon  not  more  than  five
business  days' notice; (iv) the borrower shall provide as collateral to
the lender cash or direct obligations of the United States of America or
any agency or instrumentality thereof or obligations fully guaranteed by
the United States of America that are eligible  for  investment  by  the
state  insurance  fund  under  subdivision one of this section, provided
that such obligations may in no event consist of derivative  securities;
and  (v)  such agreement shall provide for payment of additional collat-
eral on a daily basis, or at such time as the value of the loaned  secu-
rities increases to agreed upon ratios.
  [3.]  5.  All  such  securities  or evidences of indebtedness shall be
placed in the hands of the commissioner  of  taxation  and  finance  who
shall  be  the  custodian thereof. He or she shall collect the principal
and interest thereof, when due, and pay the same into the  state  insur-
ance fund. The commissioner of taxation and finance shall pay all vouch-
ers drawn on the state insurance fund for the making of such investments
when signed by the chair of the commissioners, the executive director or
a deputy executive director of the state insurance fund upon delivery of
such  securities  or evidences of indebtedness to him or her, when there
is attached to such vouchers the approval of the state superintendent of
financial services.
  6.  FOR THE PURPOSES OF THIS SECTION, THE  TERM  "RESERVES"  DOES  NOT
INCLUDE THE ESTIMATED VALUE OF FUTURE DISCRETIONARY PAYMENTS THAT MAY BE
MADE BY THE STATE INSURANCE FUND UNDER SECTION NINETY OF THIS ARTICLE.
  7.  NOTWITHSTANDING  ANY  PROVISION  IN  THIS SECTION, THE SURPLUS AND
RESERVE FUNDS OF THE STATE INSURANCE FUND SHALL NOT BE INVESTED  IN  ANY
INVESTMENT  THAT  HAS  BEEN  FOUND  BY  THE  SUPERINTENDENT OF FINANCIAL
SERVICES TO BE AGAINST PUBLIC POLICY OR IN ANY INVESTMENT PROHIBITED  BY
THE  PROVISIONS  OF PARAGRAPH SIX OF SUBSECTION (A) OF SECTION ONE THOU-
SAND FOUR HUNDRED FOUR OF THE INSURANCE LAW  OR  BY  THE  PROVISIONS  OF
PARAGRAPH  ONE,  TWO, THREE, FOUR, SIX, EIGHT, NINE OR TEN OF SUBSECTION
(A) OF SECTION ONE THOUSAND FOUR HUNDRED SEVEN OF THE INSURANCE LAW.
  S 21.  Intentionally omitted.
  S 22. Section 151 of the workers' compensation law is REPEALED  and  a
new section 151 is added to read as follows:
  S  151. ASSESSMENTS FOR ANNUAL EXPENSES. 1. THE ANNUAL EXPENSES NECES-
SARY FOR THE BOARD TO ADMINISTER THE PROVISIONS  OF  THIS  CHAPTER,  THE

S. 2607--D                         152                        A. 3007--D

VOLUNTEER  AMBULANCE  WORKERS'  BENEFIT LAW, THE VOLUNTEER FIREFIGHTERS'
BENEFIT LAW, THE DISABILITY BENEFITS LAW, AND THE WORKMEN'S COMPENSATION
ACT FOR CIVIL DEFENSE VOLUNTEERS SHALL BE BORNE  BY  AFFECTED  EMPLOYERS
SECURING  COMPENSATION  FOR THEIR EMPLOYEES PURSUANT TO SECTION FIFTY OF
THIS CHAPTER. THE BOARD SHALL COLLECT SUCH ANNUAL EXPENSES FROM AFFECTED
EMPLOYERS THROUGH ASSESSMENTS AS PROVIDED  BY  THE  PROVISIONS  OF  THIS
SECTION,  INCLUDING  FOR PURPOSES OF THIS SUBDIVISION: (A) THE AGGREGATE
ASSESSMENT AMOUNT DESCRIBED IN SUBPARAGRAPH FOUR  OF  PARAGRAPH  (H)  OF
SUBDIVISION  EIGHT  OF  SECTION  FIFTEEN OF THIS CHAPTER FOR THE SPECIAL
DISABILITY FUND IN ACCORDANCE WITH EACH FINANCING AGREEMENT DESCRIBED IN
SUCH SUBPARAGRAPH, (B) THE  AGGREGATE  ASSESSMENT  AMOUNT  DESCRIBED  IN
SECTION  FIFTY-C  OF  THIS  CHAPTER  FOR THE SELF-INSURER OFFSET FUND IN
ACCORDANCE WITH EACH FINANCING AGREEMENT DESCRIBED IN SUCH SECTION,  (C)
THE  ASSESSMENT   AMOUNT DESCRIBED IN SUBDIVISION THREE OF SECTION TWEN-
TY-FIVE-A OF THIS CHAPTER FOR THE FUND FOR REOPENED CASES  AND  (D)  THE
ASSESSMENT  AMOUNT  DESCRIBED  IN  SECTION  TWO HUNDRED FOURTEEN OF THIS
CHAPTER FOR THE SPECIAL FUND FOR DISABILITY BENEFITS; PROVIDED, THAT THE
FOREGOING AND ANY OTHER  PROVISION  OF  THIS  CHAPTER  TO  THE  CONTRARY
NOTWITHSTANDING,  ASSESSMENT  RECEIPTS  SHALL  BE APPLIED FIRST TO FULLY
FUND THE AMOUNT DESCRIBED IN  SUBPARAGRAPH  FOUR  OF  PARAGRAPH  (H)  OF
SUBDIVISION  EIGHT  OF SECTION FIFTEEN OF THIS CHAPTER AND THEN TO FULLY
FUND THE AMOUNT DESCRIBED IN SECTION FIFTY-C OF THIS CHAPTER IN  ACCORD-
ANCE  WITH  EACH  THEN  APPLICABLE  FINANCING AGREEMENT PURSUANT TO SUCH
PROVISIONS PRIOR TO APPLICATION TO ANY OTHER PURPOSE OTHER THAN  TO  PAY
ANY  ACTUAL  COSTS  OF COLLECTING SUCH ASSESSMENT THAT ARE NOT OTHERWISE
FUNDED. FOR PURPOSES  OF  THIS  SECTION,  AFFECTED  EMPLOYER  MEANS  ALL
EMPLOYERS  REQUIRED TO OBTAIN WORKERS' COMPENSATION COVERAGE PURSUANT TO
THIS CHAPTER.
  2. ON THE FIRST DAY OF NOVEMBER, TWO THOUSAND THIRTEEN,  AND  ANNUALLY
THEREAFTER,  THE  CHAIR  SHALL  ESTABLISH  AN  ASSESSMENT  RATE  FOR ALL
AFFECTED EMPLOYERS IN THE STATE OF NEW YORK IN AN AMOUNT EXPECTED TO  BE
SUFFICIENT  TO  PRODUCE  ASSESSMENT RECEIPTS AT LEAST SUFFICIENT TO FUND
ALL ESTIMATED ANNUAL  EXPENSES  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS
SECTION  EXCEPT THOSE EXPENSES FOR WHICH AN ASSESSMENT IS AUTHORIZED FOR
SELF-INSURANCE PURSUANT TO SUBDIVISION FIVE OF  SECTION  FIFTY  OF  THIS
CHAPTER.  SUCH  RATE SHALL BE ASSESSED EFFECTIVE THE FIRST OF JANUARY OF
THE SUCCEEDING YEAR AND SHALL BE BASED UPON A SINGLE METHODOLOGY  DETER-
MINED  BY THE CHAIR.  THE CHAIR MAY ALSO ESTABLISH AN ADDITIONAL ASSESS-
MENT RATE, NOT TO EXCEED THIRTY PERCENT OF ANNUAL  PREMIUMS,  FOR  THOSE
AFFECTED  EMPLOYERS  WHO  ARE IN DEFAULT IN THE PAYMENT OF THEIR COMPEN-
SATION PURSUANT TO SUBPARAGRAPH (B) OF PARAGRAPH  SEVEN  OF  SUBDIVISION
THREE-A  OF SECTION 50 OF THIS CHAPTER. SUCH ADDITIONAL ASSESSMENT SHALL
BE COLLECTED AND REMITTED TO THE CHAIR CONSISTENT WITH SUBDIVISIONS FOUR
AND FIVE OF THIS SECTION.   THE CHAIR SHALL MAKE  AVAILABLE  FOR  PUBLIC
INSPECTION AN ITEMIZED STATEMENT OF THE ESTIMATED ANNUAL EXPENSES IN THE
OFFICE OF THE BOARD FOR THIRTY DAYS IMMEDIATELY AFTER THE RATE IS ESTAB-
LISHED.
  3.  THE  CHAIR AND DEPARTMENT OF AUDIT AND CONTROL ANNUALLY AS SOON AS
PRACTICABLE AFTER THE FIRST OF APRIL OF EACH YEAR  SHALL  ASCERTAIN  THE
ACTUAL  TOTAL  AMOUNT  OF  EXPENSES, INCLUDING IN ADDITION TO THE DIRECT
COSTS OF PERSONAL SERVICE, THE COST OF MAINTENANCE  AND  OPERATION,  THE
COST OF RETIREMENT CONTRIBUTIONS MADE AND WORKERS' COMPENSATION PREMIUMS
PAID  BY  THE  STATE  FOR  OR ON ACCOUNT OF PERSONNEL, RENTALS FOR SPACE
OCCUPIED IN STATE OWNED OR STATE LEASED BUILDINGS, SUCH  ADDITIONAL  SUM
AS MAY BE CERTIFIED TO THE CHAIR AND THE DEPARTMENT OF AUDIT AND CONTROL
AS  A REASONABLE COMPENSATION FOR SERVICES RENDERED BY THE DEPARTMENT OF

S. 2607--D                         153                        A. 3007--D

LAW AND EXPENSES INCURRED BY SUCH  DEPARTMENT,  FOR  TRANSFER  INTO  THE
TRAINING  AND EDUCATIONAL PROGRAM ON OCCUPATIONAL SAFETY AND HEALTH FUND
CREATED PURSUANT TO CHAPTER EIGHT HUNDRED  EIGHTY-SIX  OF  THE  LAWS  OF
NINETEEN  HUNDRED  EIGHTY-FIVE  AND  SECTION NINETY-SEVEN-C OF THE STATE
FINANCE LAW, FOR THE NEW YORK STATE OCCUPATIONAL HEALTH CLINICS NETWORK,
FOR THE DEPARTMENT OF LABOR OCCUPATIONAL SAFETY AND HEALTH  PROGRAM  AND
FOR  TRANSFER INTO THE UNINSURED EMPLOYERS' FUND PURSUANT TO SUBDIVISION
TWO OF SECTION TWENTY-SIX-A OF THIS CHAPTER, AND  ALL  OTHER  DIRECT  OR
INDIRECT  COSTS,  INCURRED  BY THE BOARD IN CONNECTION WITH THE ADMINIS-
TRATION OF THIS CHAPTER, EXCEPT THOSE EXPENSES FOR WHICH  AN  ASSESSMENT
IS AUTHORIZED FOR SELF-INSURANCE PURSUANT TO SUBDIVISION FIVE OF SECTION
FIFTY  OF  THIS  CHAPTER.   ASSESSMENTS PURSUANT TO SUBPARAGRAPH FOUR OF
PARAGRAPH (H) OF SUBDIVISION EIGHT OF SECTION FIFTEEN  OF  THIS  CHAPTER
FOR  THE  SPECIAL  DISABILITY  FUND, PURSUANT TO SECTION FIFTY-C OF THIS
CHAPTER FOR THE SELF INSURER OFFSET FUND, PURSUANT TO SUBDIVISION  THREE
OF  SECTION  TWENTY-FIVE-A  OF  THIS  CHAPTER  FOR THE FUND FOR REOPENED
CASES, AND PURSUANT TO SECTION TWO HUNDRED FOURTEEN OF THIS CHAPTER  FOR
THE  SPECIAL FUND FOR DISABILITY BENEFITS SHALL BE INCLUDED IN THE TOTAL
AMOUNT OF EXPENSES FOR THE PURPOSES OF THIS SUBDIVISION.   ANY  OVERPAY-
MENT  OF  ANNUAL  ASSESSMENTS  RESULTING  FROM  THE REQUIREMENTS OF THIS
SUBDIVISION SHALL BE APPLIED AS A CREDIT AGAINST THE  FUTURE  ASSESSMENT
RATE PROVIDED THE FUND BALANCE SHALL NOT BE REDUCED BELOW TEN PERCENT OF
THE TOTAL AMOUNT ASSESSED.
  4. FOR THOSE AFFECTED EMPLOYERS OBTAINING COVERAGE:
  (A)  BY  INSURING  WITH  THE STATE FUND PURSUANT TO SUBDIVISION ONE OF
SECTION FIFTY OF THIS CHAPTER; OR  (B)  THROUGH  A  POLICY  PURSUANT  TO
SUBDIVISION TWO OF SECTION FIFTY OF THIS CHAPTER; OR (C) THROUGH A COUN-
TY  SELF-INSURANCE  PLAN  UNDER  ARTICLE  FIVE  OF  THIS CHAPTER; OR (D)
THROUGH A GROUP PRIVATE OR PUBLIC SELF-INSURER PURSUANT  TO  SUBDIVISION
THREE-A  OF SECTION FIFTY OF THIS CHAPTER, SUCH ASSESSMENT AMOUNTS SHALL
BE COLLECTED AND REMITTED TO THE CHAIR  BY  THE  CARRIER  OR  THE  STATE
INSURANCE FUND, OR COUNTY PLAN, OR GROUP PRIVATE OR PUBLIC SELF-INSURER,
ON  BEHALF OF THE EMPLOYER(S) UNTIL SUCH TIME AS THE BOARD ESTABLISHES A
DIRECT EMPLOYER PAYMENT PROCESS.  AFFECTED PRIVATE OR  PUBLIC  EMPLOYERS
PROVIDING  COMPENSATION  THROUGH  SELF INSURANCE PURSUANT TO SUBDIVISION
THREE OF SECTION FIFTY OF THIS  CHAPTER  SHALL  PAY  ASSESSMENT  AMOUNTS
DIRECTLY TO THE CHAIR.
  5.  INSURANCE  CARRIERS  AS  DEFINED  IN  SECTION  TWO OF THIS CHAPTER
INCLUDING THE STATE INSURANCE FUND AND SELF-INSURERS, SHALL COLLECT FROM
AFFECTED EMPLOYERS AND PERIODICALLY REMIT TO THE BOARD SUCH  ASSESSMENTS
AND  SHALL BE RESPONSIBLE FOR ENSURING THEIR EMPLOYERS/POLICYHOLDERS ARE
CURRENT ON THEIR ASSESSMENTS. (A) FAILURE  TO  ENSURE  POLICYHOLDERS  OR
EMPLOYERS  ARE CURRENT ON THEIR ASSESSMENTS WILL RESULT IN THE INSURANCE
CARRIER; OR SELF-INSURER; BEING LIABLE FOR SUCH ASSESSMENTS.
  (B) IN THE EVENT THE EMPLOYER;  INSURANCE  CARRIER;  OR  SELF-INSURER;
KNEW OR SHOULD HAVE KNOWN THAT THE EMPLOYER MISREPORTED ANY DATA RELATED
TO  THE ASSESSMENT PROCESS, THEY MAY BE SUBJECT TO ANY APPLICABLE PENAL-
TIES OR SANCTIONS PROVIDED BY THIS CHAPTER.
  6.  (A) EFFECTIVE THE FIRST DAY OF JANUARY, TWO THOUSAND FOURTEEN, ALL
ASSESSMENT CYCLES IN PROGRESS WILL BE REPLACED WITH THE ASSESSMENT  RATE
DETERMINED  HEREIN.  HOWEVER, SUCH NEW ASSESSMENT RATE SHALL NOT RELIEVE
ANY CARRIER OR SELF-INSURER FOR OUTSTANDING AMOUNTS DUE AS OF THE  FIRST
DAY OF JANUARY TWO THOUSAND FOURTEEN.
  (B) ALL ASSESSMENT AMOUNTS COLLECTED BY INSURANCE CARRIERS, EXCEPT THE
STATE  FUND, AND NOT YET REMITTED TO THE BOARD PRIOR TO THE FIRST DAY OF

S. 2607--D                         154                        A. 3007--D

JANUARY, TWO THOUSAND FOURTEEN MUST BE REMITTED TO THE  CHAIR  NO  LATER
THAN THE FIRST DAY OF FEBRUARY, TWO THOUSAND FOURTEEN.
  7.  ASSESSMENTS  FOR  THE  EXPENSES OF THE BOARD INCLUDING ASSESSMENTS
PURSUANT TO PARAGRAPH (H) OF SUBDIVISION EIGHT  OF  SECTION  FIFTEEN  OF
THIS CHAPTER FOR THE SPECIAL DISABILITY FUND AND PURSUANT TO SUBDIVISION
THREE OF SECTION TWENTY-FIVE-A OF THIS CHAPTER FOR THE FUND FOR REOPENED
CASES SHALL NOT CONSTITUTE ELEMENTS OF LOSS.
  7-A.  NOTWITHSTANDING ANY LAW TO THE CONTRARY, WHEN THERE IS A DEFAULT
ON THE PAYMENT OF  PREMIUM,  INCLUDING  ANY  ASSESSMENTS  PAYABLE  UNDER
SUBDIVISION  SEVEN OF THIS SECTION, ANY ACTION BY THE CARRIER, INCLUDING
THE STATE INSURANCE FUND, TO COLLECT ANY UNPAID PREMIUM SHALL INCLUDE AN
ACTION SEEKING RECOVERY OF SUCH ASSESSMENTS ON BEHALF OF THE BOARD.  THE
CARRIER  SHALL REMIT THE AMOUNT OF ANY SUCH UNPAID ASSESSMENTS COLLECTED
EITHER PURSUANT TO A JUDGMENT OR BY SETTLEMENT TO THE BOARD.
  8. THE FOREGOING AND EVERY OTHER PREVISION  OF  LAW  TO  THE  CONTRARY
NOTWITHSTANDING,  ALL  MONEYS  RECEIVED  ON  ACCOUNT  OF  THE ASSESSMENT
AUTHORIZED BY THIS SECTION SHALL BE  DEPOSITED  UPON  RECEIPT  INTO  THE
ADMINISTRATIVE CLEARING ACCOUNT HELD BY THE COMMISSIONER OF TAXATION AND
FINANCE  AND  APPLIED,  AS  PLEDGED ASSESSMENTS FOR PURPOSES OF SECTIONS
SIXTEEN HUNDRED EIGHTY-L AND SIXTEEN  HUNDRED  EIGHTY-Q  OF  THE  PUBLIC
AUTHORITIES LAW AND PRIOR TO ANY OTHER APPLICATION: FIRST, IN ACCORDANCE
WITH ANY OTHER PROVISION OF ANY SPECIAL DISABILITY FUND FINANCING AGREE-
MENT ENTERED INTO PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN, TO
THE  EXTENT  REQUIRED TO FULLY FUND THE THEN CURRENT PAYMENT AND RESERVE
REQUIREMENTS UNDER SUCH FINANCING AGREEMENT; AND SECOND,  IN  ACCORDANCE
WITH  EACH SPECIAL DISABILITY FUND FINANCING AGREEMENT AND EACH SELF-IN-
SURED BOND FINANCING AGREEMENT, TO THE EXTENT REQUIRED TO FULLY FUND THE
THEN CURRENT PAYMENT AND RESERVE REQUIREMENTS UNDER EACH SUCH  FINANCING
AGREEMENT  ENTERED  INTO AFTER MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN
WITH RESPECT TO BONDS ISSUED BY THE DORMITORY  AUTHORITY    PURSUANT  TO
EITHER  SECTION  SIXTEEN  HUNDRED  EIGHTY-L  OR  SECTION SIXTEEN HUNDRED
EIGHTY-Q OF THE PUBLIC AUTHORITIES LAW, ON A PARI  PASSU  BASIS  WITHOUT
PREFERENCE OR PRIORITY AMONG ALL SUCH OTHER BONDS. SUCH MONIES SHALL NOT
BE  COMMINGLED WITH ANY OTHER MONIES IN THE COMMISSIONER'S CUSTODY PRIOR
TO THE COMPLETION OF SUCH APPLICATION AND SHALL NOT BE DEEMED TO BE PART
OF THE STATE TREASURY OR OF ANY FUNDS UNDER  MANAGEMENT  OF  THE  STATE.
THIS  SECTION SHALL NOT BE DEEMED TO AUTHORIZE ANY INFRINGEMENT UPON THE
RIGHTS OF HOLDERS OF SUCH BONDS  ISSUED  OR  TO  BE  ISSUED  UNDER  SUCH
SECTIONS  OF  THE PUBLIC AUTHORITIES LAW. THE PROVISIONS OF THIS SECTION
MAY BE INCLUDED BY THE DORMITORY AUTHORITY  IN  ANY  CONTRACT  WITH  THE
HOLDERS OF ANY SUCH BONDS.  THE OPERATION OF THIS SECTION AND THE APPLI-
CATION  OF  THE  RECEIPTS  OF  THE ASSESSMENT AUTHORIZED BY THIS SECTION
SHALL BE SUBJECT TO THE PROVISIONS OF EACH FINANCING  AGREEMENT  AUTHOR-
IZED PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH (H) OF SUBDIVISION EIGHT
OF  SECTION  FIFTEEN  OR  TO  SECTION  FIFTY-C  OF THIS CHAPTER AND THIS
SECTION SHALL NOT BE DEEMED  TO  AUTHORIZE  ANY  INFRINGEMENT  UPON  THE
RIGHTS  OF  HOLDERS  OF  BONDS ISSUED OR TO BE ISSUED PURSUANT TO EITHER
SUCH PROVISION.
  9. THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  WITH  RESPECT  TO
POLICIES CONTAINING COVERAGE PURSUANT TO PARAGRAPH ONE OF SUBSECTION (J)
OF  SECTION  THREE  THOUSAND  FOUR  HUNDRED  TWENTY OF THE INSURANCE LAW
RELATING TO EVERY  POLICY  PROVIDING  COMPREHENSIVE  PERSONAL  LIABILITY
INSURANCE ON A ONE, TWO, THREE OR FOUR FAMILY OWNER-OCCUPIED DWELLING.
  10. IF THE ASSESSMENTS COLLECTED PURSUANT TO THIS SECTION ARE INSUFFI-
CIENT  TO  MEET  THE OBLIGATIONS FINANCED BY THE ASSESSMENTS, THE CHAIR,
FOR A PERIOD OF THREE YEARS, MAY BORROW ANY  SHORTFALL  FROM  THE  STATE

S. 2607--D                         155                        A. 3007--D

INSURANCE  FUND  WITH ANY BORROWING TO BE ADDED TO THE ASSESSMENTS UNDER
THIS SECTION AND REPAID THE FOLLOWING YEAR TO THE STATE  INSURANCE  FUND
WITH INTEREST AT THE STATE INSURANCE FUND'S THEN CURRENT RATE OF RETURN.
  11.  EFFECTIVE  IMMEDIATELY,  NOTWITHSTANDING ANY LAW TO THE CONTRARY,
PURSUANT TO THE PROVISIONS OF THIS CHAPTER, THE ASSESSMENT RESERVES HELD
BY THE STATE INSURANCE FUND FOR THE PAYMENT OF FUTURE ASSESSMENTS ARE NO
LONGER REQUIRED AND ALL FUNDS AND INVESTMENTS HELD BY THE  STATE  INSUR-
ANCE FUND RELATED TO THE ASSESSMENT RESERVES SHALL BE TRANSFERRED TO THE
CHAIR  OF  THE  WORKERS'  COMPENSATION BOARD AS SOON AS PRACTICABLE. THE
COMMISSIONER OF TAXATION AND FINANCE SHALL BE CUSTODIAN OF  SUCH  FUNDS,
WHICH  SHALL  NOT BE COMMINGLED WITH OTHER FUNDS OF THE WORKERS' COMPEN-
SATION BOARD, AND MAY INVEST SUCH FUNDS IN THE SAME  MANNER  AS  SURPLUS
FUNDS  HELD  BY  THE STATE INSURANCE FUND PURSUANT TO SUBDIVISION TWO OF
SECTION EIGHTY-SEVEN OF THIS CHAPTER.  DISBURSEMENTS OF SUCH FUNDS SHALL
BE MADE BY SUCH COMMISSIONER UPON WRITTEN WARRANT OF THE  CHAIR  OF  THE
WORKERS' COMPENSATION BOARD OR THE CHAIR'S DESIGNEE.
  AT  THE REQUEST OF THE DIRECTOR OF THE BUDGET, SUCH MONEYS TRANSFERRED
TO THE CHAIR OF THE WORKERS' COMPENSATION BOARD SHALL BE DISTRIBUTED  AS
FOLLOWS:
  (A)  AS  SOON AS PRACTICABLE AFTER APRIL FIRST, TWO THOUSAND THIRTEEN,
THE CHAIR OF THE WORKERS' COMPENSATION BOARD SHALL TRANSFER TWO  HUNDRED
FIFTY  MILLION DOLLARS TO THE GENERAL FUND FOR DEBT MANAGEMENT OR FISCAL
UNCERTAINTIES.
  (B) AS SOON AS PRACTICABLE AFTER APRIL FIRST, TWO  THOUSAND  FOURTEEN,
THE  CHAIR OF THE WORKERS' COMPENSATION BOARD SHALL TRANSFER ONE BILLION
DOLLARS TO THE GENERAL FUND FOR THE PURPOSE OF REDUCING BUDGET GAPS.
  (C) AS SOON AS PRACTICABLE AFTER APRIL FIRST,  TWO  THOUSAND  FIFTEEN,
THE  CHAIR OF THE WORKERS' COMPENSATION BOARD SHALL TRANSFER TWO HUNDRED
FIFTY MILLION DOLLARS TO THE GENERAL FUND FOR THE  PURPOSE  OF  REDUCING
BUDGET GAPS.
  (D)  AS  SOON  AS PRACTICABLE AFTER APRIL FIRST, TWO THOUSAND SIXTEEN,
THE CHAIR OF THE WORKERS' COMPENSATION BOARD SHALL TRANSFER TWO  HUNDRED
FIFTY  MILLION  DOLLARS  TO THE GENERAL FUND FOR THE PURPOSE OF REDUCING
BUDGET GAPS.
  (E) ANY AND ALL FUNDS REMAINING AFTER ACCOUNTING FOR THE TRANSFERS SET
FORTH ABOVE MAY, AT THE DISCRETION OF THE DIRECTOR OF THE BUDGET, EITHER
REMAIN WITH THE WORKERS' COMPENSATION BOARD OR  BE  TRANSFERRED  TO  THE
GENERAL  FUND  FOR  THE  PURPOSE OF REDUCING BUDGET GAPS OR TO THE STATE
INSURANCE FUND. THE BUDGET DIRECTOR, ACTING  IN  CONSULTATION  WITH  THE
CHAIR  OF  THE  WORKERS' COMPENSATION BOARD, SHALL DETERMINE WHETHER ANY
MONEY RETURNED TO THE STATE INSURANCE FUND IS A LOAN OR A  TRANSFER  AND
THE  TERMS  AND  CONDITIONS  THEREIN. ANY FUNDS TRANSFERRED OR LOANED TO
THE STATE INSURANCE FUND UPON  THE  BUDGET  DIRECTOR'S  REQUEST  MAY  BE
INVESTED  IN  A MANNER CONSISTENT WITH INVESTMENT GUIDELINES PURSUANT TO
SUBDIVISION TWO OF SECTION EIGHTY-SEVEN  OF  THE  WORKERS'  COMPENSATION
LAW.
  ANNUALLY, THE STATE INSURANCE FUND AND THE WORKERS' COMPENSATION BOARD
WILL  PROVIDE  TO  THE  DIRECTOR  OF THE BUDGET, THE CHAIR OF THE SENATE
FINANCE COMMITTEE, AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS  COMMIT-
TEE,  AN  ACCOUNTING  OF  SUCH FUNDS AND ALL ASSOCIATED INCOME RECEIVED.
SUCH ACCOUNTING WILL CONTINUE UNTIL  MARCH  THIRTY-FIRST,  TWO  THOUSAND
SEVENTEEN.
  12. THE CHAIR SHALL PROMULGATE REGULATIONS TO CARRY OUT THE PROVISIONS
OF THIS SECTION.
  13.  TO  EFFECTUATE  AN  EFFICIENT  ASSESSMENT  PROCESS AND THE PROPER
MANAGEMENT OF THE WORKERS' COMPENSATION SYSTEM ALL DATA IN POSSESSION OF

S. 2607--D                         156                        A. 3007--D

THE COMPENSATION INSURANCE RATING BOARD SHALL BE MADE AVAILABLE  TO  THE
BOARD AND THE DEPARTMENT OF FINANCIAL SERVICES UPON REQUEST.
  14. THE CHAIR MAY CONDUCT PERIODIC AUDITS OF ANY EMPLOYER, SELF-INSUR-
ER, INSURANCE CARRIER AND THE STATE INSURANCE FUND CONCERNING ANY INFOR-
MATION OR PAYMENT REQUIRED UNDER THIS SECTION, INCLUDING ANY INFORMATION
RELEVANT TO THE PAYMENT OR CALCULATION OF ANY ASSESSMENTS. THE EMPLOYER,
SELF-INSURER,  INSURANCE  CARRIER  AND  THE  STATE  INSURANCE FUND SHALL
PROVIDE ALL NECESSARY DOCUMENTS AND INFORMATION IN RELATION TO AN  AUDIT
IN A MANNER PRESCRIBED BY THE CHAIR. UPON THE DETERMINATION OF THE CHAIR
THAT AN EMPLOYER, SELF-INSURER, INSURANCE CARRIER OR THE STATE INSURANCE
FUND  HAS  UNDERPAID AN ASSESSMENT AS A RESULT OF ITS INACCURATE REPORT-
ING, THE EMPLOYER, SELF-INSURER, INSURANCE CARRIER OR THE  STATE  INSUR-
ANCE  FUND  UPON NOTICE FROM THE CHAIR, SHALL PAY THE FULL AMOUNT OF THE
UNDERPAID ASSESSMENT, ALONG WITH INTEREST AT THE RATE OF NINE  PER  CENT
PER  ANNUM ON THE UNPAID ASSESSMENT DUE NOT LATER THAN THIRTY DAYS AFTER
SUCH NOTICE.  AN INSURANCE CARRIER OR EMPLOYER THAT  KNOWINGLY  MAKES  A
MATERIAL  MISREPRESENTATION  OF  INFORMATION REQUIRED FOR THE PURPOSE OF
EFFECTUATING THIS SECTION SHALL BE GUILTY OF A CLASS E FELONY.
  S 23. Subdivision 5 of section 54 of the workers' compensation law, as
amended by chapter 164 of the laws of 1992 and the closing paragraph  as
added by chapter 322 of the laws of 2008, is amended to read as follows:
  5. Cancellation and termination of insurance contracts. No contract of
insurance issued by an insurance carrier against liability arising under
this chapter shall be cancelled within the time limited in such contract
for  its  expiration unless notice is given as required by this section.
When cancellation is due to non-payment  of  premiums  AND  ASSESSMENTS,
such cancellation shall not be effective until at least ten days after a
notice  of  cancellation  of  such contract, on a date specified in such
notice, shall be filed in the office of the chair and also served on the
employer.  When cancellation is due to any reason other than non-payment
of premiums AND ASSESSMENTS, such cancellation shall  not  be  effective
until  at  least  thirty  days  after  a  notice of cancellation of such
contract, on a date specified in such notice,  shall  be  filed  in  the
office  of the chair and also served on the employer; provided, however,
in either case, that if the employer has secured insurance with  another
insurance carrier which becomes effective prior to the expiration of the
time  stated  in  such notice, the cancellation shall be effective as of
the date of such other coverage. No insurer shall refuse  to  renew  any
policy  insuring  against liability arising under this chapter unless at
least thirty days prior to its expiration notice  of  intention  not  to
renew  has  been filed in the office of the chair and also served on the
employer.
  Such notice shall be served on the employer by delivering it  to  him,
her  or  it or by sending it by mail, by certified or registered letter,
return receipt requested, addressed to the employer at his, her  or  its
last  known place of business; provided that, if the employer be a part-
nership, then such notice may be so given to any of one of the partners,
and if the employer be a corporation then the notice may be given to any
agent or officer of the corporation  upon  whom  legal  process  may  be
served;  and  further provided that an employer may designate any person
or entity at any address to receive such  notice  including  the  desig-
nation  of  one person or entity to receive notice on behalf of multiple
entities insured under one insurance policy and that service  of  notice
at  the address so designated upon the person or entity so designated by
delivery or by mail, by certified or registered letter,  return  receipt
requested,  shall  satisfy  the  notice  requirement  of  this  section.

S. 2607--D                         157                        A. 3007--D

Provided, however, the right to cancellation of a policy of insurance in
the state fund shall be exercised only for non-payment of  premiums  AND
ASSESSMENTS or as provided in section ninety-four of this chapter.
  The  provisions  of  this  subdivision shall not apply with respect to
policies containing coverage pursuant to subsection (j) of section three
thousand four hundred twenty of the  insurance  law  relating  to  every
policy  providing  comprehensive  personal liability insurance on a one,
two, three or four family owner-occupied dwelling.
  In the event such cancellation or termination notice is not filed with
the chair within the required time period,  the  chair  shall  impose  a
penalty  in  the  amount  of up to five hundred dollars for each ten-day
period the insurance carrier or state insurance fund failed to file  the
notification. All penalties collected pursuant to this subdivision shall
be deposited in the uninsured employers' fund.
  S 24. Section 93 of the workers' compensation law, as amended by chap-
ter  94 of the laws of 1988 and subdivisions b and c as amended by chap-
ter 635 of the laws of 1996, is amended to read as follows:
  S 93. Collection of premium in case of default. a. If  a  policyholder
shall  default  in  any  payment required to be made by him to the state
insurance fund after due notice, his insurance in the state fund may  be
cancelled and the amount due from him shall be collected by civil action
brought against him in any county wherein the state insurance fund main-
tains  an office in the name of the commissioners of the state insurance
fund and the same when collected, shall be paid into the state insurance
fund, and such policyholder's compliance with  the  provisions  of  this
chapter  requiring payments to be made to the state insurance fund shall
date from the time of the payment of said money to the  state  insurance
fund.
  b.  An  employer,  whose policy of insurance has been cancelled by the
state insurance fund for non-payment of premium AND ASSESSMENTS or with-
draws pursuant to section ninety-four of this article, is ineligible  to
contract  for  a subsequent policy of insurance with the state insurance
fund while the billed premium on the  cancelled  policy  remains  uncol-
lected.
  c. The state insurance fund shall not be required to write a policy of
insurance  for any employer which is owned or controlled or the majority
interest of which is owned or controlled, directly or indirectly, by any
person  who  directly  or  indirectly  owns  or  controls  or  owned  or
controlled  at  the time of cancellation an employer whose former policy
of insurance with the state insurance fund was cancelled for non-payment
of premium AND ASSESSMENTS or withdraws pursuant to section  ninety-four
of  this article or who is or was at the time of cancellation the presi-
dent, vice-president, secretary or treasurer of such an  employer  until
the billed premium on the cancelled policy is paid.
  For  purposes of this subdivision, "person" shall include individuals,
partnerships, corporations, and other associations.
  S 25. Section 146 of the workers' compensation law, as added by  chap-
ter 74 of the laws of 1945, is amended to read as follows:
  S  146. Offices of the board. [The principal office of the board shall
be in the city of Albany.] There shall be [also] an office OF THE  BOARD
in  the  city of New York and at such other place or places in the state
as may be required properly and conveniently to transact the business of
the board. The board may meet and exercise any or all of its  powers  at
any place in the state.
  S  26. Section 214 of the workers' compensation law, as added by chap-
ter 600 of the laws of 1949, the opening paragraph as amended by chapter

S. 2607--D                         158                        A. 3007--D

653 of the laws of 1958, subdivision 2 as amended by chapter 187 of  the
laws  of  1983,  subdivision  3 as amended by chapter 629 of the laws of
1958, subdivision 4 as amended by chapter 727 of the laws of 1950 and as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, and subdivision 5 as added by chapter 18 of the laws of  2010,  is
amended to read as follows:
  S 214. Special fund for disability benefits. There is hereby created a
fund which shall be known as the special fund for disability benefits to
provide  for  the  payment  of  disability  benefits  under sections two
hundred seven, two hundred thirteen and attendance fees under  [subdivi-
sion two of] section two hundred thirty-two of this article.
  1.  [For  the purpose of accumulating funds for payment of benefits to
the disabled unemployed, there is hereby assessed a contribution at  the
rate of two-tenths of one per centum of the wages paid during the period
from  January  first, nineteen hundred fifty to June thirtieth, nineteen
hundred fifty inclusive, to  employees  in  the  employment  of  covered
employers  on or after January first, nineteen hundred fifty, but not in
excess of twelve cents per week as to each such employee, of  which  the
employee  shall  contribute one-tenth of one per centum of his wages but
not in excess of six cents per week, and  the  employer  shall  make  an
equal  contribution. The contributions of the employee shall be deducted
from his wages in the same manner as provided  in  section  two  hundred
nine. On or before April thirtieth, nineteen hundred fifty, the employer
shall  pay  to the chairman the contributions with respect to wages paid
during the quarterly period ending March thirty-first, nineteen  hundred
fifty,  and  on or before July thirty-first, nineteen hundred fifty, the
employer shall pay to the chairman the  contributions  with  respect  to
wages  paid  during the quarterly period ending June thirtieth, nineteen
hundred fifty.
  2.] As promptly as practicable after April  first,  [nineteen  hundred
fifty-eight  and  thereafter annually as soon as practicable after April
first] in each year, the chairman shall ascertain the condition  of  the
fund, and if as of any such date the net assets of the fund shall be one
million  dollars  or  more  below the sum of twelve million dollars, the
chairman shall assess and collect [from all carriers hereinafter  speci-
fied]  an  amount  sufficient  to restore the fund to an amount equal to
twelve million dollars. [Carriers subject to this  assessment  shall  be
such  carriers  as shall have covered employees in employment during the
preceding three calendar years or any portion or portions  thereof.  The
proportion  of  the  total  assessment to be assessed upon and collected
from each carrier shall be that proportion thereof that the total of the
payrolls covered by such carrier during said three calendar years  bears
to  the  total  of all such payrolls covered by all such carriers during
said three calendar years, except that the term "payrolls" as used here-
in shall be deemed limited to the first seven thousand dollars of  earn-
ings  of  each  employee  during any calendar year and except that there
shall be excluded the payroll of employees of a  class  or  classes  for
whom  plan benefits provided under this article are payable during unem-
ployment for a period not less than the period provided in  section  two
hundred  seven under an agreement between the employer or an association
of employers and an association of the employees which has been accepted
as a plan under section two hundred eleven. The chairman, before  making
an  assessment  as herein provided, shall give thirty days notice to all
such carriers, in the same manner provided in section two hundred  twen-
ty-eight,  that  an  itemized  statement of the condition of the fund is
open for inspection]. SUCH ASSESSMENT SHALL BE INCLUDED IN  THE  ASSESS-

S. 2607--D                         159                        A. 3007--D

MENT RATE ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION ONE HUNDRED
FIFTY-ONE  OF THIS CHAPTER. SUCH ASSESSMENTS SHALL BE DEPOSITED WITH THE
COMMISSIONER OF TAXATION AND FINANCE AND TRANSFERRED TO THE  BENEFIT  OF
SUCH  FUND UPON PAYMENT OF DEBT SERVICE, IF ANY, PURSUANT TO SECTION ONE
HUNDRED FIFTY-ONE OF THIS CHAPTER.
  [3.] 2. Whenever the net assets of the fund shall be less  than  three
million  dollars  and  the  disability claims currently being paid shall
indicate the necessity of supplementing the assets of the  fund  [before
the  next  annual  assessment can be made,] the chairman may [assess and
collect for all such carriers, in the same proportions  established  for
the  last  preceding  annual assessment,] TRANSFER FROM MONIES COLLECTED
PURSUANT TO SUBDIVISION TWO OF SECTION ONE  HUNDRED  FIFTY-ONE  OF  THIS
CHAPTER  an  amount sufficient in the discretion of the chairman for the
needs of the fund, but not in excess of an amount sufficient to  restore
the  fund  to  twelve million dollars. [Before making any such emergency
assessment the chairman shall give thirty days notice to  such  carriers
in  the  same manner as provided with respect to annual assessments, and
an itemized statement of the  condition  of  the  fund  shall,  in  like
manner, be open for inspection.]
  [4.]  3.  All  contributions  and assessments received by the chairman
under the provisions of this section shall be credited to the fund here-
in established and deposited by  the  chairman  to  the  credit  of  the
commissioner  of  taxation  and finance for the benefit of the fund. The
superintendent of financial services may examine into the  condition  of
the  fund  at  any time on his own initiative or upon the request of the
chairman.
  [5. Notwithstanding any inconsistent provision of law to the contrary,
effective April first, two  thousand  nine,  any  amounts  available  in
excess of the maximum net asset balance of twelve million dollars pursu-
ant  to  subdivision  two  of  this section, shall be transferred by the
comptroller to the general fund, at the request of the director  of  the
budget.]
  S  27.  Section 228 of the workers' compensation law is REPEALED and a
new section 228 is added to read as follows:
  S 228. ADMINISTRATIVE  EXPENSES.  1.  THE  ESTIMATED  ANNUAL  EXPENSES
NECESSARY   FOR  THE  WORKERS'  COMPENSATION  BOARD  TO  ADMINISTER  THE
PROVISIONS OF THE DISABILITY BENEFITS LAW SHALL BE BORNE BY ALL AFFECTED
EMPLOYERS AND INCLUDED AS PART OF THE ASSESSMENT RATE GENERATED PURSUANT
TO SUBDIVISION TWO OF SECTION ONE HUNDRED FIFTY-ONE OF THIS CHAPTER.
  2. ANNUALLY, AS SOON AS PRACTICABLE AFTER THE FIRST DAY OF APRIL,  THE
CHAIR  AND  DEPARTMENT  OF  AUDIT  AND CONTROL SHALL ASCERTAIN THE TOTAL
AMOUNT OF ACTUAL EXPENSES.
  S 28.  Subdivision 6 of section 3 of the volunteer firefighters' bene-
fit law is amended to read as follows:
  6. "Surviving spouse" means the legal [wife of a deceased male  volun-
teer  fireman  or the legal husband of a deceased female volunteer fire-
man, as the case may be,] SPOUSE OF A  DECEASED  VOLUNTEER  FIREFIGHTER,
but  shall not include a spouse who has abandoned the deceased. The term
"abandoned", as used in this subdivision, means such an  abandonment  as
would be sufficient under section [eleven hundred sixty-one of the civil
practice  act]  TWO  HUNDRED  OF THE DOMESTIC RELATIONS LAW to sustain a
judgment of separation on that ground.
  S 29. Section  60  of  the  volunteer  firefighters'  benefit  law  is
REPEALED and a new section 60 is added to read as follows:
  S 60. ASSESSMENT FOR EXPENSES. 1. THE ESTIMATED ANNUAL EXPENSES NECES-
SARY FOR THE WORKERS' COMPENSATION BOARD TO ADMINISTER THE PROVISIONS OF

S. 2607--D                         160                        A. 3007--D

THE  VOLUNTEER  FIREFIGHTERS' BENEFIT LAW SHALL BE BORNE BY ALL AFFECTED
EMPLOYERS AND INCLUDED AS PART OF THE ASSESSMENT RATE GENERATED PURSUANT
TO SUBDIVISION TWO OF SECTION ONE  HUNDRED  FIFTY-ONE  OF  THE  WORKERS'
COMPENSATION LAW.
  2. ANNUALLY, THE CHAIR OF THE DEPARTMENT OF AUDIT AND CONTROL, AS SOON
AS  PRACTICABLE  AFTER  THE  FIRST  OF  APRIL, SHALL ASCERTAIN THE TOTAL
AMOUNT OF ACTUAL EXPENSES.
  S 30.  Subdivision 6 of section 3 of the volunteer ambulance  workers'
benefit law is amended to read as follows:
  6.  "Surviving spouse" means the legal [wife of a deceased male volun-
teer ambulance worker or the legal husband of a deceased female]  SPOUSE
OF  A  DECEASED  volunteer  ambulance  worker[, as the case may be], but
shall not include a spouse who has  abandoned  the  deceased.  The  term
"abandoned",  as  used in this subdivision, means such an abandonment as
would be sufficient under section two hundred of the domestic  relations
law to sustain a judgment of separation on that ground.
  S  31.  Section  60 of the volunteer ambulance workers' benefit law is
REPEALED and a new section 60 is added to read as follows:
  S 60. ASSESSMENT FOR EXPENSES. 1. THE ESTIMATED ANNUAL EXPENSES NECES-
SARY FOR THE WORKERS' COMPENSATION BOARD TO ADMINISTER THE PROVISIONS OF
THE VOLUNTEER AMBULANCE WORKERS' BENEFIT  LAW  SHALL  BE  BORNE  BY  ALL
AFFECTED EMPLOYERS AND INCLUDED AS PART OF THE ASSESSMENT RATE GENERATED
PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION ONE HUNDRED FIFTY-ONE OF THE
WORKERS' COMPENSATION LAW.
  2. ANNUALLY, THE CHAIR OF THE DEPARTMENT OF AUDIT AND CONTROL, AS SOON
AS PRACTICABLE AFTER THE FIRST  OF  APRIL,  SHALL  ASCERTAIN  THE  TOTAL
AMOUNT OF ACTUAL EXPENSES.
  S 32. Section 50 of the workers' compensation law is amended by adding
a new subdivision 12 to read as follows:
  12.  THE  CHAIR,  WITH THE APPROVAL OF THE DIRECTOR OF THE BUDGET, MAY
REQUEST THE ISSUANCE OF BONDS BY THE DORMITORY AUTHORITY FOR ONE OR MORE
OF THE PURPOSES AUTHORIZED BY SECTION SIXTEEN HUNDRED  EIGHTY-Q  OF  THE
PUBLIC  AUTHORITIES  LAW  AND BY A SELF-INSURED BOND FINANCING AGREEMENT
AUTHORIZED BY SECTION FIFTY-C OF THIS ARTICLE. THE NET PROCEEDS OF  SUCH
BONDS  SHALL BE DEPOSITED INTO THE SELF-INSURER OFFSET FUND OR AS OTHER-
WISE PROVIDED BY THE APPLICABLE SELF-INSURED BOND FINANCING AGREEMENT.
  S 33. Subdivision 4 of section 50-a of the workers'  compensation  law
is  renumbered subdivision 5 and a new subdivision 4 is added to read as
follows:
  4. TO THE EXTENT PROVIDED BY THE SELF-INSURER BOND FINANCING AGREEMENT
THE CHAIR MAY REQUEST THE DORMITORY AUTHORITY TO TRANSFER BOND  PROCEEDS
INTO SUCH ACCOUNT FOR THE PURPOSES OUTLINED IN THE BOND FINANCING AGREE-
MENT.
  S 34. The workers' compensation law is amended by adding a new section
50-c to read as follows:
  S  50-C.  SELF-INSURED  BONDS.  1. THE CHAIR, WITH THE COMMISSIONER OF
TAXATION AND FINANCE, IS AUTHORIZED TO ENTER INTO A FINANCING  AGREEMENT
WITH  THE  DORMITORY  AUTHORITY,  TO  BE KNOWN AS THE "SELF-INSURED BOND
FINANCING AGREEMENT". SUCH AGREEMENT SHALL SET  FORTH  THE  PROCESS  FOR
CALCULATING  THE  ANNUAL  DEBT  SERVICE OF BONDS ISSUED BY THE DORMITORY
AUTHORITY AND ANY OTHER ASSOCIATED COSTS IN CONNECTION WITH THE SELF-IN-
SURER OFFSET FUND, AS SET FORTH IN SECTION SIXTEEN HUNDRED  EIGHTY-Q  OF
THE  PUBLIC  AUTHORITIES  LAW. FOR PURPOSES OF THIS SECTION, "ASSOCIATED
COSTS" MAY INCLUDE A COVERAGE FACTOR,  RESERVE  FUND  REQUIREMENTS,  ALL
COSTS  OF  ANY  NATURE INCURRED BY THE DORMITORY AUTHORITY IN CONNECTION
WITH THE SELF-INSURED BOND FINANCING AGREEMENT OR PURSUANT THERETO,  THE

S. 2607--D                         161                        A. 3007--D

COSTS  OF  ANY INDEPENDENT AUDITS UNDERTAKEN UNDER THIS SECTION, AND ANY
OTHER COSTS FOR THE IMPLEMENTATION OF THIS SUBDIVISION AND THE  ISSUANCE
OF  BONDS  BY  THE DORMITORY AUTHORITY, INCLUDING INTEREST RATE EXCHANGE
PAYMENTS, REBATE PAYMENTS, LIQUIDITY FEES, CREDIT PROVIDER FEES, FIDUCI-
ARY  FEES, REMARKETING, DEALER, AUCTION AGENT AND RELATED FEES AND OTHER
SIMILAR BOND-RELATED EXPENSES, UNLESS  OTHERWISE  FUNDED.  BY  SEPTEMBER
FIRST  OF  EACH YEAR, THE DORMITORY AUTHORITY SHALL PROVIDE TO THE CHAIR
THE CALCULATION OF THE AMOUNT EXPECTED  TO  BE  PAID  BY  THE  DORMITORY
AUTHORITY IN DEBT SERVICE AND ASSOCIATED COSTS FOR PURPOSES OF CALCULAT-
ING  THE  ASSESSMENTS  FOR  THE  DEBT  SERVICE PORTION OF THE ASSESSMENT
PROVIDED FOR UNDER THIS CHAPTER. ALL MONIES RECEIVED ON ACCOUNT OF  SUCH
ASSESSMENTS  SHALL  BE  APPLIED IN ACCORDANCE WITH THIS CHAPTER AND WITH
THE SELF-INSURED BOND FINANCING  AGREEMENT  UNTIL  THE  FINANCIAL  OBLI-
GATIONS  OF  THE DORMITORY AUTHORITY IN RESPECT TO ITS CONTRACT WITH ITS
BONDHOLDERS ARE MET AND ALL ASSOCIATED COSTS PAYABLE TO OR BY THE DORMI-
TORY AUTHORITY HAVE BEEN PAID, NOTWITHSTANDING ANY  OTHER  PROVISION  OF
LAW  RESPECTING  SECURED TRANSACTIONS. THIS PROVISION MAY BE INCLUDED BY
THE DORMITORY AUTHORITY IN ANY CONTRACT OF THE DORMITORY AUTHORITY  WITH
ITS  BONDHOLDERS. THE SELF-INSURED BOND FINANCING AGREEMENT MAY RESTRICT
DISBURSEMENTS, INVESTMENTS, OR REBATES, AND MAY PRESCRIBE  A  SYSTEM  OF
ACCOUNTS  APPLICABLE  TO THE SELF-INSURER OFFSET FUND AS CONSISTENT WITH
THE PROVISIONS OF THIS CHAPTER GOVERNING SUCH FUND, INCLUDING CUSTODY OF
FUNDS AND ACCOUNTS WITH A TRUSTEE THAT MAY BE PRESCRIBED BY THE DORMITO-
RY AUTHORITY AS PART OF ITS CONTRACT WITH THE BONDHOLDERS. FOR  PURPOSES
OF  THIS  SUBDIVISION,  THE  TERM  "BONDS" SHALL INCLUDE NOTES ISSUED IN
ANTICIPATION OF THE ISSUANCE OF BONDS, OR NOTES  ISSUED  PURSUANT  TO  A
COMMERCIAL PAPER PROGRAM.
  2.  THE  CHAIR  IS  HEREBY  AUTHORIZED  TO  RECEIVE  AND CREDIT TO THE
SELF-INSURER OFFSET FUND ANY SUM  OR  SUMS  THAT  MAY  AT  ANY  TIME  BE
CONTRIBUTED  TO  THE STATE BY THE UNITED STATES OF AMERICA UNDER ANY ACT
OF CONGRESS, OR OTHERWISE, TO WHICH THE STATE MAY BE OR BECOME  ENTITLED
BY REASON OF ANY PAYMENTS MADE OUT OF SUCH FUND.
  3.  NOTWITHSTANDING  ANY OTHER LAW TO THE CONTRARY, THE CHAIR SHALL BE
THE CUSTODIAN OF THE SELF-INSURER  OFFSET  FUND  AND,  UNLESS  OTHERWISE
PROVIDED  FOR  IN THE SELF-INSURED BOND FINANCING AGREEMENT, THE COMMIS-
SIONER OF TAXATION AND FINANCE  SHALL  INVEST  ANY  SURPLUS  OR  RESERVE
MONEYS  THEREOF  IN  SECURITIES  WHICH  CONSTITUTE LEGAL INVESTMENTS FOR
SAVINGS BANKS UNDER THE LAWS OF  THIS  STATE  AND  IN  INTEREST  BEARING
CERTIFICATES  OF  DEPOSIT OF A BANK OR TRUST COMPANY LOCATED AND AUTHOR-
IZED TO DO BUSINESS IN THIS STATE OR OF A NATIONAL BANK LOCATED IN  THIS
STATE  SECURED BY A PLEDGE OF DIRECT OBLIGATIONS OF THE UNITED STATES OR
OF THE STATE OF NEW YORK IN AN  AMOUNT  EQUAL  TO  THE  AMOUNT  OF  SUCH
CERTIFICATES  OF  DEPOSIT, AND MAY SELL ANY OF THE SECURITIES OR CERTIF-
ICATES OF DEPOSIT IN WHICH SUCH FUND IS INVESTED IF  NECESSARY  FOR  THE
PROPER  ADMINISTRATION  OR  IN THE BEST INTEREST OF SUCH FUND. DISBURSE-
MENTS FROM SUCH FUND AS PROVIDED BY THIS SUBDIVISION SHALL  BE  MADE  BY
THE  COMMISSIONER  OF  TAXATION AND FINANCE UNLESS THE SELF-INSURED BOND
FINANCING AGREEMENT PROVIDES FOR SOME OTHER MEANS  OF  AUTHORIZING  SUCH
DISBURSEMENTS  THAT  IS NO LESS PROTECTIVE OF THE FUND. THE COMMISSIONER
OF TAXATION AND FINANCE AS SOON AS PRACTICABLE AFTER  JANUARY  FIRST  OF
EACH  YEAR,  SHALL FURNISH TO THE CHAIR A STATEMENT OF THE FUND, SETTING
FORTH THE BALANCE OF MONEYS IN THE SAID FUND AS OF THE BEGINNING OF  THE
CALENDAR  YEAR,  THE  INCOME OF THE FUND, THE SUMMARY OF PAYMENTS OUT OF
THE FUND ON ACCOUNT OF REIMBURSEMENTS AND OTHER CHARGES  ORDERED  TO  BE
PAID  BY  THE  BOARD, AND ALL OTHER CHARGES AGAINST THE FUND AND SETTING
FORTH THE BALANCE OF THE FUND REMAINING  TO  ITS  CREDIT  ON  THE  PRIOR

S. 2607--D                         162                        A. 3007--D

DECEMBER  THIRTY-FIRST  OF  EACH  YEAR.  SUCH STATEMENT SHALL BE OPEN TO
PUBLIC INSPECTION IN THE OFFICE OF THE SECRETARY  OF  THE  BOARD.    THE
CHAIR  SHALL  INCLUDE IN THE REPORTS TO THE GOVERNOR, THE SPEAKER OF THE
ASSEMBLY  AND  THE  TEMPORARY  PRESIDENT  OF  THE  SENATE AS REQUIRED BY
SECTION NINE OF PART G OF CHAPTER FIFTY-SEVEN OF THE LAWS OF  TWO  THOU-
SAND  ELEVEN,  A SUMMARY OF THE STATUS OF THE BONDING PROGRAM AUTHORIZED
BY THIS SECTION.  THE COMMISSIONER OF TAXATION AND FINANCE MAY ESTABLISH
WITHIN THE SELF-INSURER OFFSET FUND SUCH ACCOUNTS AND SUB-ACCOUNTS AS HE
OR SHE DEEMS USEFUL FOR THE OPERATION OF THE FUND, OR  AS  NECESSARY  TO
SEGREGATE  MONEYS  WITHIN  THE  FUND,  SUBJECT  TO THE PROVISIONS OF THE
SELF-INSURED BOND FINANCING AGREEMENT AND OF THIS CHAPTER.
  S 35. The public authorities law is amended by adding  a  new  section
1680-q to read as follows:
  S  1680-Q. SELF-INSURED BOND FINANCING. 1. AS USED IN THIS SECTION THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "ANCILLARY BOND FACILITY" MEANS  ANY  INTEREST  RATE  EXCHANGE  OR
SIMILAR  AGREEMENT  OR  ANY  BOND  INSURANCE POLICY, LETTER OF CREDIT OR
OTHER  CREDIT  ENHANCEMENT  FACILITY,  LIQUIDITY  FACILITY,   GUARANTEED
INVESTMENT  OR  REINVESTMENT  AGREEMENT,  OR  OTHER  SIMILAR  AGREEMENT,
ARRANGEMENT OR CONTRACT.
  (B) "BENEFITED PARTY" MEANS  ANY  PERSON,  FIRM  OR  CORPORATION  THAT
ENTERS  INTO  AN ANCILLARY BOND FACILITY WITH THE AUTHORITY ACCORDING TO
THE PROVISIONS OF THIS SECTION.
  (C) "BONDS" MEANS ANY BONDS, NOTES, CERTIFICATES OF PARTICIPATION  AND
OTHER  EVIDENCE  OF  INDEBTEDNESS  ISSUED  BY  THE AUTHORITY PURSUANT TO
SUBDIVISION FIVE OF THIS SECTION.
  (D) "BOND OWNERS OR OWNERS OF BONDS" MEANS ANY  REGISTERED  OWNERS  OF
BONDS.
  (E) "CHAIR" MEANS THE CHAIR OF THE WORKERS' COMPENSATION BOARD.
  (F)  "CODE"  MEANS THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS
AMENDED.
  (G) "COSTS OF ISSUANCE" MEANS ANY ITEM OF EXPENSE  DIRECTLY  OR  INDI-
RECTLY  PAYABLE  OR  REIMBURSABLE  BY  THE  AUTHORITY AND RELATED TO THE
AUTHORIZATION, SALE, OR ISSUANCE OF BONDS, INCLUDING,  BUT  NOT  LIMITED
TO,  UNDERWRITING FEES AND FEES AND EXPENSES OF PROFESSIONAL CONSULTANTS
AND FIDUCIARIES.
  (H) "DEBT SERVICE" MEANS ACTUAL DEBT SERVICE, COMPRISED OF  PRINCIPAL,
INTEREST  AND  ASSOCIATED  COSTS,  AS  DEFINED IN SECTION FIFTY-C OF THE
WORKERS' COMPENSATION LAW.
  (I) "DIRECTOR OF THE BUDGET" OR "DIRECTOR" MEANS THE DIRECTOR  OF  THE
BUDGET OF THE STATE OF NEW YORK.
  (J)  "FINANCING COSTS" MEANS ALL COSTS OF ISSUANCE, CAPITALIZED INTER-
EST, CAPITALIZED OPERATING EXPENSES OF THE AUTHORITY  AND,  PURSUANT  TO
THE  SELF-INSURED  BOND FINANCING AGREEMENT, FEES, COST OF ANY ANCILLARY
BOND FACILITY, AND ANY OTHER FEES, DISCOUNTS, EXPENSES AND COSTS RELATED
TO ISSUING, SECURING AND MARKETING THE BONDS INCLUDING, WITHOUT  LIMITA-
TION, ANY NET ORIGINAL ISSUE DISCOUNT.
  (K)  "INVESTMENT  SECURITIES" SHALL HAVE THE SAME MEANING AS SET FORTH
IN SECTION ONE THOUSAND SIX HUNDRED EIGHTY-L OF THIS TITLE.
  (L) "INTEREST RATE EXCHANGE OR  SIMILAR  AGREEMENT"  MEANS  A  WRITTEN
CONTRACT  ENTERED  INTO IN CONNECTION WITH THE ISSUANCE OF BONDS OR WITH
SUCH BONDS OUTSTANDING WITH A COUNTERPARTY TO PROVIDE FOR AN EXCHANGE OR
SWAP OF PAYMENTS BASED UPON FIXED AND/OR VARIABLE  INTEREST  RATES,  AND
SHALL BE FOR EXCHANGES IN CURRENCY OF THE UNITED STATES OF AMERICA ONLY.
  (M)  "NET  PROCEEDS"  MEANS THE AMOUNT OF PROCEEDS REMAINING FOLLOWING
EACH SALE OF BONDS WHICH ARE NOT REQUIRED BY THE AUTHORITY FOR  PURPOSES

S. 2607--D                         163                        A. 3007--D

OF  THIS  SECTION TO PAY OR PROVIDE FOR DEBT SERVICE OR FINANCING COSTS,
AS PROVIDED IN THE SELF-INSURED BOND FINANCING AGREEMENT.
  (N)  "OPERATING  EXPENSES" MEANS THE REASONABLE OR NECESSARY OPERATING
EXPENSES OF THE AUTHORITY FOR PURPOSES OF THIS SECTION, INCLUDING, WITH-
OUT LIMITATION, THE COSTS OF:  RETENTION  OF  AUDITORS,  PREPARATION  OF
ACCOUNTING  AND  OTHER REPORTS, MAINTENANCE OF THE RATINGS ON THE BONDS,
ANY OPERATING EXPENSE RESERVE FUND, INSURANCE PREMIUMS,  ANCILLARY  BOND
FACILITIES,  REBATE  PAYMENTS,  ANNUAL MEETINGS OR OTHER REQUIRED ACTIV-
ITIES OF THE AUTHORITY, AND PROFESSIONAL CONSULTANTS AND FIDUCIARIES.
  (O) "OUTSTANDING", WHEN USED WITH  RESPECT  TO  BONDS,  SHALL  EXCLUDE
BONDS  THAT  SHALL  HAVE  BEEN  PAID  IN FULL AT MATURITY, OR SHALL HAVE
OTHERWISE BEEN REFUNDED, REDEEMED, DEFEASED OR DISCHARGED, OR  THAT  MAY
BE DEEMED NOT OUTSTANDING PURSUANT TO AGREEMENTS WITH THE HOLDERS THERE-
OF.
  (P)  "PLEDGED  ASSESSMENTS  REVENUES",  "PLEDGED REVENUES" OR "PLEDGED
ASSESSMENTS" MEANS RECEIPTS  OF  THE  ASSESSMENTS  IMPOSED  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTY-ONE  OF  THE  WORKERS' COMPENSATION LAW AND
PLEDGED FOR THE PAYMENT OF DEBT SERVICE ON  THE  BONDS  OR  AMOUNTS  DUE
PURSUANT  TO  AN ANCILLARY BOND FACILITY, INCLUDING THE RIGHT TO RECEIVE
SAME.
  (Q) "SELF-INSURER OFFSET FUND" SHALL MEAN THE FUND COMPOSED OF  REVEN-
UES,  INCLUDING  THOSE  OBTAINED BY THE BONDS ISSUED UNDER THIS SECTION,
WHICH SHALL BE USED SOLELY FOR THE  PURPOSES  DESCRIBED  IN  SUBDIVISION
FOUR OF THIS SECTION.
  (R)  "SELF-INSURED  EMPLOYER"  MEANS INDIVIDUAL AND GROUP SELF-INSURED
EMPLOYERS ESTABLISHED IN ACCORDANCE WITH SECTION FIFTY OF  THE  WORKERS'
COMPENSATION LAW.
  (S) "STATE" MEANS THE STATE OF NEW YORK.
  (T)  "SELF-INSURED  BOND FINANCING AGREEMENT" OR "FINANCING AGREEMENT"
MEANS AN AGREEMENT AUTHORIZED AND CREATED PURSUANT TO  SUBDIVISION  FOUR
OF THIS SECTION AND SECTION FIFTY-C OF THE WORKERS' COMPENSATION LAW, AS
SAME BY ITS TERMS AND BOND PROCEEDINGS, MAY BE AMENDED.
  2. THE AUTHORITY IS HEREBY AUTHORIZED TO ISSUE BONDS TO REDUCE ASSESS-
MENTS IMPOSED ON SELF-INSURED EMPLOYERS UNDER SECTION FIFTY OF THE WORK-
ERS'  COMPENSATION  LAW AS A RESULT OF THE UNFUNDED CLAIMS OF INDIVIDUAL
AND GROUP SELF-INSURERS. THE AUTHORITY MAY ENTER INTO ONE OR MORE  SELF-
INSURED  BOND  FINANCING  AGREEMENTS DESCRIBED IN SECTION FIFTY-C OF THE
WORKERS' COMPENSATION LAW. ALL OF THE PROVISIONS OF THE PUBLIC  AUTHORI-
TIES  LAW  RELATING  TO BONDS AND NOTES OF THE DORMITORY AUTHORITY WHICH
ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS SECTION SHALL APPLY  TO
OBLIGATIONS AUTHORIZED BY THIS SECTION, INCLUDING BUT NOT LIMITED TO THE
POWER TO ESTABLISH ADEQUATE RESERVES THEREFOR AND TO ISSUE RENEWAL NOTES
OR  REFUNDING  BONDS THEREOF. THE PROVISIONS OF THIS SECTION SHALL APPLY
SOLELY TO OBLIGATIONS AUTHORIZED BY THIS SECTION.
  3. IT IS FOUND AND DECLARED THAT UNFUNDED CLAIMS IN EITHER  THE  INDI-
VIDUAL  OR GROUP SELF-INSURANCE TRUST PROGRAM WILL, ABSENT PROVISION FOR
LONG-TERM FINANCING, RESULT IN IMPOSITION OF COSTS ON ALL  SELF-INSURERS
THROUGH  ASSESSMENTS; THAT SUCH UNFUNDED CLAIMS AND ASSESSMENTS MAY HAVE
A DETRIMENTAL IMPACT ON BUSINESSES AND  NOT-FOR-PROFIT  CORPORATIONS  IN
NEW  YORK  STATE AND ON THE PROVISION OF SERVICES TO NEW YORK RESIDENTS;
THAT WITHOUT FINANCING THE  BOARD  MAY  BE  REQUIRED  TO  IMPOSE  HIGHER
ASSESSMENTS  TO  PAY SUCH UNFUNDED CLAIMS; THAT FINANCING WILL ALLOW THE
WORKERS' COMPENSATION BOARD TO PURCHASE ONE OR MORE ASSUMPTIONS OF WORK-
ERS' COMPENSATION LIABILITY POLICIES THAT WILL LIMIT THE LONG TERM LOSS-
ES FROM THESE UNFUNDED CLAIMS; THAT THE BONDS WILL PROVIDE A MORE  EFFI-
CIENT  MEANS  OF  COVERING  UNFUNDED  CLAIMS  THAN THE CURRENT SYSTEM OF

S. 2607--D                         164                        A. 3007--D

ASSESSMENT ON ALL SELF-INSUREDS; THAT BONDS ISSUED BY THE AUTHORITY  AND
SECURED  BY  ASSESSMENTS LEVIED, FOR THE GOVERNMENTAL PURPOSE OF FUNDING
ASSUMPTION OF WORKERS' COMPENSATION LIABILITY POLICIES, AMORTIZED OVER A
SUBSTANTIAL  PERIOD  WOULD  ALLOW THE STATE TO LIMIT LIABILITIES AND THE
ASSESSMENTS NEEDED TO PAY THEM, THEREBY FURTHERING  THE  POLICY  OF  THE
STATE  TO  REDUCE  THE COSTS OF WORKERS' COMPENSATION AND TO IMPROVE THE
BUSINESS CLIMATE IN THE STATE AND THE ABILITY OF  NOT-FOR-PROFIT  CORPO-
RATIONS  TO  PERFORM ESSENTIAL SERVICES WHILE COMPENSATING INJURED WORK-
ERS; THAT ALL COSTS OF THE AUTHORITY IN RELATION TO THIS  SECTION  SHALL
BE  PAID FROM ASSESSMENTS PROVIDED FOR IN THE WORKERS' COMPENSATION LAW;
AND THAT, THEREFORE, THE PROVISIONS OF THIS SECTION ARE FOR  THE  PUBLIC
BENEFIT  AND  GOOD AND THE AUTHORIZATION AS PROVIDED IN THIS SECTION FOR
THE ISSUANCE OF REVENUE OBLIGATIONS OF THE AUTHORITY IS DECLARED  TO  BE
FOR A PUBLIC PURPOSE AND THE EXERCISE OF AN ESSENTIAL GOVERNMENTAL FUNC-
TION.
  4. (A) THE AUTHORITY, THE COMMISSIONER OF TAXATION AND FINANCE AND THE
CHAIR,  IN  CONSULTATION WITH THE DIRECTOR OF THE BUDGET SHALL EXECUTE A
FINANCING AGREEMENT PRIOR TO THE ISSUANCE OF ANY BONDS.  SUCH  AGREEMENT
SHALL  CONTAIN  SUCH  TERMS AND CONDITIONS AS ARE NECESSARY TO CARRY OUT
AND EFFECTUATE THE PURPOSES OF THIS SECTION,  INCLUDING  COVENANTS  WITH
RESPECT  TO  THE  ASSESSMENTS  AND  ENFORCEMENT  OF THE ASSESSMENTS, THE
APPLICATION AND USE OF THE PROCEEDS OF THE SALE OF BONDS TO PRESERVE THE
TAX EXEMPTION ON THE BONDS, THE INTEREST ON  WHICH  IS  INTENDED  TO  BE
EXEMPT  FROM  TAXATION.  THE  STATE  SHALL NOT BE AUTHORIZED TO MAKE ANY
COVENANT, PLEDGE, PROMISE OR AGREEMENT PURPORTING TO BIND THE STATE WITH
RESPECT TO PLEDGED REVENUES, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED
BY THIS SECTION.
  (B) THE NET PROCEEDS OF THE BONDS SHALL  BE  DEPOSITED  IN  ACCORDANCE
WITH  THE  SELF-INSURED  BOND  FINANCING AGREEMENT AND THIS SECTION. THE
SELF-INSURED BOND FINANCING AGREEMENT SHALL PROVIDE FOR THE  APPLICATION
OF  THE NET BOND PROCEEDS, AND SUCH BOND PROCEEDS SHALL BE USED, FOR ANY
OF THE FOLLOWING PURPOSES: (I) TO PAY UNMET COMPENSATION OR BENEFITS  OF
INDIVIDUAL  AND  GROUP  SELF-INSURED  EMPLOYERS; (II) TO PURCHASE ONE OR
MORE ASSUMPTION OF WORKERS' COMPENSATION LIABILITY POLICIES TO DISCHARGE
THE LIABILITIES INCURRED OR TO BE INCURRED UNDER  SUBDIVISION  THREE  OR
THREE-A  OF  SECTION FIFTY OF THE WORKERS' COMPENSATION LAW; OR (III) TO
PAY FINANCING COSTS OF THE BONDS ISSUED UNDER THIS SECTION.  NOT  INCON-
SISTENT WITH THIS SECTION, THE AUTHORITY MAY PROVIDE RESTRICTIONS ON THE
USE AND INVESTMENT OF NET PROCEEDS OF THE BONDS AND OTHER AMOUNTS IN THE
SELF-INSURED  BOND  FINANCING AGREEMENT OR OTHERWISE IN A TAX REGULATORY
AGREEMENT AS NECESSARY OR DESIRABLE TO ASSURE THAT THEY ARE EXEMPT  FROM
TAXATION.
  5.  (A) (I) THE AUTHORITY SHALL HAVE POWER AND IS HEREBY AUTHORIZED TO
ISSUE ITS BONDS AT SUCH TIMES AND IN SUCH  AGGREGATE  PRINCIPAL  AMOUNTS
NOT  TO  EXCEED  AN AMOUNT TO BE DETERMINED BY THE CHAIR AS NECESSARY TO
FUND THE PURPOSES OF THIS SECTION, BUT IN NO CASE EXCEEDING NINE HUNDRED
MILLION DOLLARS EXCLUSIVE OF ANY BONDS ISSUED TO REFUND BONDS PREVIOUSLY
ISSUED PURSUANT TO THIS CHAPTER AND ANY BONDS ISSUED TO FUND ANY RESERVE
FUNDS COST OF ISSUANCE OR ORIGINAL ISSUE PREMIUM.   THE BONDS  SHALL  BE
ISSUED  FOR  THE  FOLLOWING CORPORATE PURPOSES: (A) TO PAY CURRENT UNMET
COMPENSATION OR BENEFITS OF INDIVIDUAL AND GROUP SELF-INSURED EMPLOYERS;
(B) TO PURCHASE ONE OR MORE ASSUMPTIONS OF WORKERS' COMPENSATION LIABIL-
ITY POLICIES TO DISCHARGE THE LIABILITIES INCURRED  OR  TO  BE  INCURRED
UNDER  SUBDIVISION  THREE  OR  THREE-A  OF SECTION FIFTY OF THE WORKERS'
COMPENSATION LAW; OR (C) TO PAY FINANCING  COSTS  OF  THE  BONDS  ISSUED
UNDER THIS SECTION.

S. 2607--D                         165                        A. 3007--D

  (II) EACH ISSUANCE OF BONDS SHALL BE AUTHORIZED BY A RESOLUTION OF THE
AUTHORITY,  PROVIDED,  HOWEVER, THAT ANY SUCH RESOLUTION MAY DELEGATE TO
AN OFFICER OF THE AUTHORITY THE POWER TO ISSUE SUCH BONDS FROM  TIME  TO
TIME  AND TO FIX THE DETAILS OF ANY SUCH ISSUES OF BONDS BY AN APPROPRI-
ATE  CERTIFICATE OF SUCH AUTHORIZED OFFICER. EVERY ISSUE OF THE BONDS OF
THE AUTHORITY FOR THE SELF-INSURER OFFSET FUND SHALL BE SPECIAL  REVENUE
OBLIGATIONS  PAYABLE  FROM AND SECURED BY A PLEDGE OF REVENUES AND OTHER
ASSETS, INCLUDING THOSE PROCEEDS OF SUCH BONDS DEPOSITED  IN  A  RESERVE
FUND  FOR  THE  BENEFIT  OF BONDHOLDERS, EARNINGS ON SUCH FUNDS AND SUCH
OTHER FUNDS AND ASSETS AS MAY BECOME  AVAILABLE,  UPON  SUCH  TERMS  AND
CONDITIONS  AS  SPECIFIED BY THE AUTHORITY IN THE RESOLUTION UNDER WHICH
THE BONDS ARE ISSUED OR IN A RELATED TRUST INDENTURE.
  (III) THE AUTHORITY SHALL HAVE THE POWER AND IS HEREBY AUTHORIZED FROM
TIME TO TIME TO ISSUE BONDS, IN CONSULTATION WITH THE CHAIR, THE COMMIS-
SIONER OF TAXATION AND FINANCE AND THE DIRECTOR OF THE BUDGET, TO REFUND
ANY BONDS ISSUED UNDER THIS SECTION BY THE ISSUANCE OF NEW BONDS, WHETH-
ER THE BONDS TO BE REFUNDED HAVE OR HAVE NOT MATURED, AND TO ISSUE BONDS
PARTLY TO REFUND BONDS THEN OUTSTANDING AND PARTLY FOR ANY OF ITS  OTHER
CORPORATE  PURPOSES  UNDER  THIS  SECTION.  THE  REFUNDING  BONDS MAY BE
EXCHANGED FOR THE BONDS TO BE REFUNDED OR SOLD AND THE PROCEEDS  APPLIED
TO THE PURCHASE, REDEMPTION OR PAYMENT OF SUCH BONDS.
  (B)  THE  BONDS  OF  THE AUTHORITY OF EACH ISSUE SHALL BE DATED, SHALL
BEAR INTEREST (WHICH, IN THE OPINION OF BOND COUNSEL TO  THE  AUTHORITY,
MAY  BE  INCLUDABLE IN OR EXCLUDABLE FROM THE GROSS INCOME OF THE OWNERS
FOR FEDERAL INCOME TAX PURPOSES) AT SUCH FIXED OR VARIABLE RATES,  PAYA-
BLE  AT OR PRIOR TO MATURITY, AND SHALL MATURE AT SUCH TIME OR TIMES, AS
MAY BE DETERMINED BY THE AUTHORITY AND MAY  BE  MADE  REDEEMABLE  BEFORE
MATURITY,  AT  THE  OPTION OF THE AUTHORITY, AT SUCH PRICE OR PRICES AND
UNDER SUCH TERMS AND CONDITIONS AS MAY BE FIXED BY  THE  AUTHORITY.  THE
PRINCIPAL  AND  INTEREST OF SUCH BONDS MAY BE MADE PAYABLE IN ANY LAWFUL
MEDIUM. THE RESOLUTION OR THE  CERTIFICATE  OF  THE  AUTHORIZED  OFFICER
SHALL  DETERMINE  THE FORM OF THE BONDS, EITHER REGISTERED OR BOOK-ENTRY
FORM, AND THE MANNER OF EXECUTION OF THE BONDS AND SHALL FIX THE DENOMI-
NATION OR DENOMINATIONS OF THE BONDS AND THE PLACE OR PLACES OF  PAYMENT
OF  PRINCIPAL  AND  INTEREST  THEREOF, WHICH MAY BE AT ANY BANK OR TRUST
COMPANY WITHIN OR OUTSIDE THE STATE. IF ANY OFFICER WHOSE SIGNATURE OR A
FACSIMILE THEREOF APPEARS ON ANY BONDS SHALL CEASE TO  BE  SUCH  OFFICER
BEFORE  THE  DELIVERY  OF  SUCH BONDS, SUCH SIGNATURE OR FACSIMILE SHALL
NEVERTHELESS BE VALID AND SUFFICIENT FOR ALL PURPOSES  THE  SAME  AS  IF
SUCH  OFFICER  HAD REMAINED IN OFFICE UNTIL SUCH DELIVERY. THE AUTHORITY
MAY ALSO PROVIDE FOR TEMPORARY BONDS AND FOR THE REPLACEMENT OF ANY BOND
THAT SHALL BECOME MUTILATED OR SHALL BE DESTROYED OR LOST.
  (C) THE AUTHORITY MAY SELL SUCH BONDS, EITHER AT A PUBLIC  OR  PRIVATE
SALE  AND  EITHER ON A COMPETITIVE OR NEGOTIATED BASIS, PROVIDED NO SUCH
BONDS MAY BE SOLD BY THE AUTHORITY AT PRIVATE SALE UNLESS SUCH SALE  AND
THE  TERMS  THEREOF  HAVE BEEN APPROVED IN WRITING BY THE COMPTROLLER OF
THE STATE OF NEW YORK. THE PROCEEDS OF SUCH BONDS SHALL BE DISBURSED FOR
THE PURPOSES FOR WHICH SUCH BONDS WERE ISSUED UNDER SUCH RESTRICTIONS AS
THE FINANCING AGREEMENT AND THE RESOLUTION AUTHORIZING THE  ISSUANCE  OF
SUCH  BONDS OR THE RELATED TRUST INDENTURE MAY PROVIDE. SUCH BONDS SHALL
BE ISSUED WITHOUT ANY  OTHER  APPROVALS,  FILINGS,  PROCEEDINGS  OR  THE
HAPPENING  OF  ANY  OTHER CONDITIONS OTHER THAN ANY APPROVALS, FINDINGS,
PROCEEDINGS, OR  OTHER  CONDITIONS  THAT  ARE  SPECIFIED  AND  EXPRESSLY
REQUIRED  BY THIS SECTION; PROVIDED, HOWEVER, THAT ANY ISSUANCE OF BONDS
UNDER THE AUTHORITY OF THIS SECTION SHALL BE CONSIDERED  A  PROJECT  FOR

S. 2607--D                         166                        A. 3007--D

THE  PURPOSES  OF  SECTION  FIFTY-ONE  OF  THIS  CHAPTER  AND SUBJECT TO
APPROVAL UNDER SUCH SECTION.
  (D) ANY PLEDGE MADE BY THE AUTHORITY SHALL BE VALID AND BINDING AT THE
TIME  THE  PLEDGE  IS  MADE. THE ASSETS, PROPERTY, REVENUES, RESERVES OR
EARNINGS SO PLEDGED SHALL IMMEDIATELY BE SUBJECT TO  THE  LIEN  OF  SUCH
PLEDGE WITHOUT ANY PHYSICAL DELIVERY THEREOF OR FURTHER ACT AND THE LIEN
OF  ANY  SUCH  PLEDGE  SHALL BE VALID AND BINDING AS AGAINST ALL PARTIES
HAVING CLAIMS OF ANY KIND AGAINST THE AUTHORITY, IRRESPECTIVE OF WHETHER
SUCH PARTIES HAVE NOTICE THEREOF. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW TO THE CONTRARY, NEITHER THE BOND RESOLUTION NOR  ANY  INDENTURE  OR
OTHER  INSTRUMENT,  INCLUDING THE FINANCING AGREEMENT, BY WHICH A PLEDGE
IS CREATED OR BY WHICH THE AUTHORITY'S INTEREST IN PLEDGED ASSETS, PROP-
ERTY, REVENUES, RESERVES OR EARNINGS THEREON IS ASSIGNED NEED BE  FILED,
PERFECTED  OR  RECORDED  IN  ANY  PUBLIC RECORDS IN ORDER TO PROTECT THE
PLEDGE THEREOF OR PERFECT THE LIEN THEREOF  AS  AGAINST  THIRD  PARTIES,
EXCEPT THAT A COPY THEREOF SHALL BE FILED IN THE RECORDS OF THE AUTHORI-
TY.
  (E)  WHETHER  OR  NOT  THE BONDS OF THE AUTHORITY ARE OF SUCH FORM AND
CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM
COMMERCIAL CODE, THE BONDS ARE HEREBY MADE  NEGOTIABLE  INSTRUMENTS  FOR
ALL  PURPOSES, SUBJECT ONLY TO THE PROVISIONS OF THE BONDS FOR REGISTRA-
TION.
  (F) AT THE SOLE DISCRETION OF THE AUTHORITY, ANY BONDS ISSUED  BY  THE
AUTHORITY  AND  ANY ANCILLARY BOND FACILITY MADE UNDER THE PROVISIONS OF
THIS SUBDIVISION MAY BE SECURED BY A RESOLUTION OR  TRUST  INDENTURE  BY
AND  BETWEEN THE AUTHORITY AND THE TRUST INDENTURE TRUSTEE, WHICH MAY BE
ANY TRUST COMPANY OR BANK HAVING THE POWERS OF A TRUST COMPANY,  WHETHER
LOCATED  WITHIN  OR  OUTSIDE  THE  STATE,  PROVIDED IT IS CARRIED OUT IN
ACCORDANCE WITH SECTION SIXTY-NINE-D OF  THE  STATE  FINANCE  LAW.  SUCH
TRUST  INDENTURE  OR RESOLUTION PROVIDING FOR THE ISSUANCE OF SUCH BONDS
MAY PROVIDE FOR THE CREATION AND MAINTENANCE OF  SUCH  RESERVES  AS  THE
AUTHORITY SHALL DETERMINE TO BE PROPER AND MAY INCLUDE COVENANTS SETTING
FORTH  THE  DUTIES  OF  THE  AUTHORITY  IN RELATION TO THE BONDS, OR THE
FINANCING AGREEMENT. SUCH TRUST  INDENTURE  OR  RESOLUTION  MAY  CONTAIN
PROVISIONS: (I) RESPECTING THE CUSTODY, SAFE-GUARDING AND APPLICATION OF
ALL  MONEYS AND SECURITIES; (II) PROTECTING AND ENFORCING THE RIGHTS AND
REMEDIES (PURSUANT TO THE TRUST INDENTURE AND THE  FINANCING  AGREEMENT)
OF  THE  OWNERS  OF  THE  BONDS  AND ANY OTHER BENEFITED PARTY AS MAY BE
REASONABLE AND PROPER AND NOT IN VIOLATION OF LAW; (III) CONCERNING  THE
RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED BY BONDHOLDERS PURSU-
ANT TO PARAGRAPH (G) OF THIS SUBDIVISION; OR (IV) LIMITING OR ABROGATING
THE  RIGHT  OF  THE BONDHOLDERS TO APPOINT A TRUSTEE. IT SHALL BE LAWFUL
FOR ANY BANK OR TRUST  COMPANY  WHICH  MAY  ACT  AS  DEPOSITORY  OF  THE
PROCEEDS  OF  BONDS  OR  OF  ANY  OTHER FUNDS OR OBLIGATIONS RECEIVED ON
BEHALF OF THE AUTHORITY TO FURNISH SUCH INDEMNIFYING BONDS OR TO  PLEDGE
SUCH  SECURITIES  AS  MAY  BE  REQUIRED BY THE AUTHORITY. ANY SUCH TRUST
INDENTURE OR RESOLUTION MAY CONTAIN SUCH OTHER PROVISIONS AS THE AUTHOR-
ITY MAY DEEM REASONABLE AND  PROPER  FOR  PRIORITIES  AND  SUBORDINATION
AMONG  THE  OWNERS OF THE BONDS AND OTHER BENEFICIARIES. FOR PURPOSES OF
THIS SECTION, A "RESOLUTION" OF THE AUTHORITY SHALL  INCLUDE  ANY  TRUST
INDENTURE AUTHORIZED THEREBY.
  (G) THE AUTHORITY MAY ENTER INTO, AMEND OR TERMINATE, AS IT DETERMINES
TO BE NECESSARY OR APPROPRIATE, ANY ANCILLARY BOND FACILITY IN CONSULTA-
TION  WITH  THE  CHAIR  AND DIRECTOR OF THE BUDGET (I) TO FACILITATE THE
ISSUANCE, SALE, RESALE, PURCHASE, REPURCHASE OR PAYMENT OF BONDS, INTER-
EST RATE SAVINGS OR MARKET DIVERSIFICATION OR THE MAKING OR  PERFORMANCE

S. 2607--D                         167                        A. 3007--D

OF INTEREST RATE EXCHANGE OR SIMILAR AGREEMENTS, INCLUDING WITHOUT LIMI-
TATION  BOND INSURANCE, LETTERS OF CREDIT AND LIQUIDITY FACILITIES, (II)
TO ATTEMPT TO MANAGE OR HEDGE RISK  OR  ACHIEVE  A  DESIRABLE  EFFECTIVE
INTEREST RATE OR CASH FLOW, OR (III) TO PLACE THE OBLIGATIONS OR INVEST-
MENTS OF THE AUTHORITY, AS REPRESENTED BY THE BONDS OR THE INVESTMENT OF
RESERVED  BOND  PROCEEDS  OR  OTHER PLEDGED REVENUES OR OTHER ASSETS, IN
WHOLE OR IN PART, ON THE INTEREST RATE, CASH FLOW OR OTHER BASIS DECIDED
IN CONSULTATION WITH THE CHAIR AND DIRECTOR OF THE BUDGET, WHICH FACILI-
TY MAY INCLUDE WITHOUT LIMITATION CONTRACTS COMMONLY KNOWN  AS  INTEREST
RATE EXCHANGE OR SIMILAR AGREEMENTS, FORWARD PURCHASE CONTRACTS OR GUAR-
ANTEED  INVESTMENT  CONTRACTS  AND  FUTURES  OR  CONTRACTS PROVIDING FOR
PAYMENTS BASED ON LEVELS  OF,  OR  CHANGES  IN,  INTEREST  RATES.  THESE
CONTRACTS  OR  ARRANGEMENTS  MAY  BE  ENTERED  INTO  BY THE AUTHORITY IN
CONNECTION WITH, OR INCIDENTAL TO, ENTERING  INTO,  OR  MAINTAINING  ANY
AGREEMENT  WHICH  SECURES  BONDS  OF  THE  AUTHORITY  OR  INVESTMENT, OR
CONTRACT PROVIDING FOR INVESTMENT OF RESERVES OR SIMILAR FACILITY  GUAR-
ANTEEING  AN  INVESTMENT  RATE  FOR  A PERIOD OF YEARS NOT TO EXCEED THE
UNDERLYING TERM OF THE BONDS. THE DETERMINATION BY THE AUTHORITY THAT AN
ANCILLARY BOND FACILITY OR  THE  AMENDMENT  OR  TERMINATION  THEREOF  IS
NECESSARY OR APPROPRIATE AS AFORESAID SHALL BE CONCLUSIVE. ANY ANCILLARY
BOND  FACILITY  MAY CONTAIN SUCH PAYMENT, SECURITY, DEFAULT, REMEDY, AND
TERMINATION PROVISIONS AND PAYMENTS AND OTHER TERMS  AND  CONDITIONS  AS
DETERMINED  BY  THE  AUTHORITY,  AFTER  GIVING  DUE CONSIDERATION TO THE
CREDITWORTHINESS OF THE COUNTERPARTY OR OTHER OBLIGATED PARTY, INCLUDING
ANY RATING BY ANY NATIONALLY RECOGNIZED RATING  AGENCY,  AND  ANY  OTHER
CRITERIA AS MAY BE APPROPRIATE.
  (H)  THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY
THEN EXIST (INCLUDING PROVISIONS WHICH RESTRICT THE POWER OF THE AUTHOR-
ITY TO PURCHASE BONDS), OR WITH THE PROVIDERS OF ANY  APPLICABLE  ANCIL-
LARY  BOND  FACILITY,  SHALL  HAVE  THE POWER OUT OF ANY FUNDS AVAILABLE
THEREFOR TO PURCHASE BONDS OF THE AUTHORITY, WHICH MAY OR MAY NOT THERE-
UPON BE CANCELLED, AT A PRICE NOT SUBSTANTIALLY EXCEEDING:
  (I) IF THE BONDS ARE THEN REDEEMABLE, THE REDEMPTION PRICE THEN APPLI-
CABLE, INCLUDING ANY ACCRUED INTEREST; OR
  (II) IF THE BONDS ARE NOT THEN REDEEMABLE, THE  REDEMPTION  PRICE  AND
ACCRUED  INTEREST  APPLICABLE ON THE FIRST DATE AFTER SUCH PURCHASE UPON
WHICH THE BONDS BECOME SUBJECT TO REDEMPTION.
  (I) NEITHER THE MEMBERS OF THE AUTHORITY NOR ANY OTHER PERSON  EXECUT-
ING  THE  BONDS  OR AN ANCILLARY BOND FACILITY OF THE AUTHORITY SHALL BE
SUBJECT TO ANY PERSONAL LIABILITY BY REASON OF THE ISSUANCE OR EXECUTION
AND DELIVERY THEREOF.
  (J) THE MATURITIES OF THE BONDS SHALL NOT  EXCEED  THIRTY  YEARS  FROM
THEIR RESPECTIVE ISSUANCE.
  6.  NEITHER ANY BOND ISSUED PURSUANT TO THIS SECTION NOR ANY ANCILLARY
BOND FACILITY OF THE AUTHORITY SHALL CONSTITUTE A DEBT  OR  MORAL  OBLI-
GATION  OF  THE STATE OR A STATE SUPPORTED OBLIGATION WITHIN THE MEANING
OF ANY CONSTITUTIONAL OR STATUTORY PROVISION OR A PLEDGE  OF  THE  FAITH
AND  CREDIT  OF  THE  STATE OR OF THE TAXING POWER OF THE STATE, AND THE
STATE SHALL NOT BE LIABLE TO MAKE ANY PAYMENTS  THEREON  NOR  SHALL  ANY
BOND  OR  ANY  ANCILLARY  BOND  FACILITY  BE PAYABLE OUT OF ANY FUNDS OR
ASSETS OTHER THAN PLEDGED REVENUES AND OTHER ASSETS OF THE AUTHORITY AND
OTHER FUNDS AND ASSETS OF OR AVAILABLE TO THE AUTHORITY  PLEDGED  THERE-
FOR,  AND  THE  BONDS  AND  ANY ANCILLARY BOND FACILITY OF THE AUTHORITY
SHALL CONTAIN ON THE FACE THEREOF OR OTHER  PROMINENT  PLACE  THEREON  A
STATEMENT TO THE FOREGOING EFFECT.

S. 2607--D                         168                        A. 3007--D

  7.  (A)  SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION
IN THE EVENT THAT THE AUTHORITY SHALL DEFAULT IN THE PAYMENT OF  PRINCI-
PAL  OF,  OR INTEREST ON, OR SINKING FUND PAYMENT ON, ANY ISSUE OF BONDS
AFTER THE SAME SHALL BECOME DUE, WHETHER AT MATURITY OR  UPON  CALL  FOR
REDEMPTION,  OR  IN THE EVENT THAT THE AUTHORITY OR THE STATE SHALL FAIL
TO COMPLY WITH ANY AGREEMENT MADE WITH  THE  HOLDERS  OF  ANY  ISSUE  OF
BONDS,  THE HOLDERS OF TWENTY-FIVE PERCENT IN AGGREGATE PRINCIPAL AMOUNT
OF THE BONDS OF SUCH ISSUE THEN OUTSTANDING, BY  INSTRUMENT  OR  INSTRU-
MENTS  FILED  IN  THE  OFFICE  OF  THE CLERK OF THE COUNTY OF ALBANY AND
PROVED OR ACKNOWLEDGED IN THE SAME MANNER AS A DEED TO BE RECORDED,  MAY
APPOINT  A  TRUSTEE  TO  REPRESENT  THE  HOLDERS  OF  SUCH BONDS FOR THE
PURPOSES HEREIN PROVIDED.
  (B) SUCH TRUSTEE, MAY, AND UPON WRITTEN  REQUEST  OF  THE  HOLDERS  OF
TWENTY-FIVE  PERCENT  IN PRINCIPAL AMOUNT OF SUCH BONDS THEN OUTSTANDING
SHALL, IN HIS OR ITS OWN NAME:
  (I) BY SUIT, ACTION OR PROCEEDING IN ACCORDANCE WITH THE  CIVIL  PRAC-
TICE LAW AND RULES, ENFORCE ALL RIGHTS OF THE BONDHOLDERS, INCLUDING THE
RIGHT  TO  REQUIRE  THE  AUTHORITY  TO CARRY OUT ANY AGREEMENT WITH SUCH
HOLDERS AND TO PERFORM ITS DUTIES UNDER THIS SECTION;
  (II) BRING SUIT UPON SUCH BONDS;
  (III) BY ACTION OR SUIT, REQUIRE THE AUTHORITY TO  ACCOUNT  AS  IF  IT
WERE THE TRUSTEE OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH BONDS;
  (IV)  BY ACTION OR SUIT, ENJOIN ANY ACTS OR THINGS WHICH MAY BE UNLAW-
FUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AND
  (V) DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS  SHALL
BE  MADE  GOOD,  THEN,  WITH  THE  CONSENT OF THE HOLDERS OF TWENTY-FIVE
PERCENT OF THE PRINCIPAL AMOUNT OF SUCH BONDS  THEN  OUTSTANDING,  ANNUL
SUCH  DECLARATION  AND ITS CONSEQUENCES, PROVIDED, HOWEVER, THAT NOTHING
IN THIS SUBDIVISION SHALL PRECLUDE  THE  AUTHORITY  FROM  AGREEING  THAT
CONSENT OF THE PROVIDER OF AN ANCILLARY BOND FACILITY IS REQUIRED FOR AN
ACCELERATION  OF  RELATED  BONDS  IN THE EVENT OF A DEFAULT OTHER THAN A
FAILURE TO PAY PRINCIPAL OF OR INTEREST ON THE BONDS WHEN DUE.
  (C) THE SUPREME COURT SHALL HAVE JURISDICTION OF ANY SUIT,  ACTION  OR
PROCEEDING  BY  THE  TRUSTEE ON BEHALF OF SUCH BONDHOLDERS. THE VENUE OF
ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE LAID IN THE COUNTY OF ALBA-
NY.
  (D) BEFORE DECLARING THE PRINCIPAL OF BONDS DUE AND PAYABLE, THE TRUS-
TEE SHALL FIRST GIVE THIRTY DAYS NOTICE IN WRITING TO THE AUTHORITY.
  8. ALL MONIES OF THE AUTHORITY FROM WHATEVER SOURCE DERIVED  SHALL  BE
PAID  TO THE TREASURER OF THE AUTHORITY AND SHALL BE DEPOSITED FORTHWITH
IN A BANK OR BANKS DESIGNATED BY  THE  AUTHORITY.  THE  MONIES  IN  SUCH
ACCOUNTS  SHALL  BE PAID OUT OR WITHDRAWN ON THE ORDER OF SUCH PERSON OR
PERSONS AS THE AUTHORITY MAY AUTHORIZE TO MAKE  SUCH  REQUISITIONS.  ALL
DEPOSITS  OF  SUCH  MONIES SHALL EITHER BE SECURED BY OBLIGATIONS OF THE
UNITED STATES OR OF THE STATE OR OF ANY MUNICIPALITY OF A  MARKET  VALUE
EQUAL  AT ALL TIMES TO THE AMOUNT ON DEPOSIT, OR MONIES OF THE AUTHORITY
MAY BE DEPOSITED IN MONEY MARKET FUNDS RATED IN THE  HIGHEST  SHORT-TERM
OR  LONG-TERM  RATING  CATEGORY  BY  AT  LEAST ONE NATIONALLY RECOGNIZED
RATING AGENCY. TO  THE  EXTENT  PRACTICABLE,  AND  CONSISTENT  WITH  THE
REQUIREMENTS  OF  THE  AUTHORITY,  ALL SUCH MONIES SHALL BE DEPOSITED IN
INTEREST BEARING ACCOUNTS. THE AUTHORITY SHALL HAVE POWER, NOTWITHSTAND-
ING THE PROVISIONS OF THIS SECTION, TO CONTRACT WITH THE HOLDERS OF  ANY
BONDS AS TO THE CUSTODY, COLLECTION, SECURITY, INVESTMENT AND PAYMENT OF
ANY MONIES OF THE AUTHORITY OR ANY MONIES HELD IN TRUST OR OTHERWISE FOR
THE  PAYMENT OF BONDS OR ANY WAY TO SECURE BONDS, AND CARRY OUT ANY SUCH
CONTRACT NOTWITHSTANDING THAT SUCH CONTRACT MAY BE INCONSISTENT WITH THE

S. 2607--D                         169                        A. 3007--D

PROVISIONS OF THIS SECTION. MONIES HELD IN TRUST OR  OTHERWISE  FOR  THE
PAYMENT  OF  BONDS  OR  IN  ANY WAY TO SECURE BONDS AND DEPOSITS OF SUCH
MONEYS MAY BE SECURED IN THE SAME MANNER AS MONIES OF THE AUTHORITY  AND
ALL  BANKS  AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR
SUCH DEPOSITS. ANY MONIES OF THE AUTHORITY NOT  REQUIRED  FOR  IMMEDIATE
USE OR DISBURSEMENT MAY, AT THE DISCRETION OF THE AUTHORITY, BE INVESTED
IN  ACCORDANCE  WITH  LAW  AND  SUCH  GUIDELINES  AS ARE APPROVED BY THE
AUTHORITY.
  9. (A) IT IS HEREBY DETERMINED THAT THE CARRYING OUT BY THE  AUTHORITY
OF ITS CORPORATE PURPOSES UNDER THIS SECTION ARE IN ALL RESPECTS FOR THE
BENEFIT  OF THE PEOPLE OF THE STATE OF NEW YORK AND ARE PUBLIC PURPOSES.
ACCORDINGLY, THE AUTHORITY SHALL BE REGARDED AS PERFORMING AN  ESSENTIAL
GOVERNMENTAL FUNCTION IN THE EXERCISE OF THE POWERS CONFERRED UPON IT BY
THIS  SECTION.  THE  PROPERTY OF THE AUTHORITY, ITS INCOME AND ITS OPER-
ATIONS SHALL BE EXEMPT FROM TAXATION, ASSESSMENTS,  SPECIAL  ASSESSMENTS
AND  AD  VALOREM  LEVIES. THE AUTHORITY SHALL NOT BE REQUIRED TO PAY ANY
FEES, TAXES, SPECIAL AD VALOREM  LEVIES  OR  ASSESSMENTS  OF  ANY  KIND,
WHETHER  STATE  OR  LOCAL,  INCLUDING, BUT NOT LIMITED TO, REAL PROPERTY
TAXES, FRANCHISE TAXES, SALES TAXES OR OTHER TAXES, UPON OR WITH RESPECT
TO ANY PROPERTY OWNED BY IT OR UNDER ITS JURISDICTION, CONTROL OR SUPER-
VISION, OR UPON THE USES THEREOF, OR UPON OR WITH RESPECT TO ITS  ACTIV-
ITIES  OR  OPERATIONS  IN FURTHERANCE OF THE POWERS CONFERRED UPON IT BY
THIS SECTION, OR UPON OR WITH RESPECT TO ANY ASSESSMENTS, RATES,  CHARG-
ES, FEES, REVENUES OR OTHER INCOME RECEIVED BY THE AUTHORITY.
  (B)  ANY BONDS ISSUED PURSUANT TO THIS SECTION, THEIR TRANSFER AND THE
INCOME THEREFROM SHALL, AT ALL TIMES, BE EXEMPT FROM TAXATION EXCEPT FOR
ESTATE OR GIFT TAXES AND TAXES ON TRANSFERS.
  (C) THE STATE HEREBY COVENANTS WITH THE PURCHASERS AND WITH ALL SUBSE-
QUENT HOLDERS AND TRANSFEREES OF BONDS ISSUED BY THE AUTHORITY  PURSUANT
TO  THIS  SECTION, IN CONSIDERATION OF THE ACCEPTANCE OF AND PAYMENT FOR
THE BONDS, THAT THE BONDS OF  THE  AUTHORITY  ISSUED  PURSUANT  TO  THIS
SECTION  AND THE INCOME THEREFROM AND ALL ASSESSMENTS, REVENUES, MONEYS,
AND OTHER PROPERTY RECEIVED BY THE AUTHORITY AND PLEDGED TO  PAY  OR  TO
SECURE THE PAYMENT OF SUCH BONDS SHALL AT ALL TIMES BE EXEMPT FROM TAXA-
TION.
  (D)  IN  THE  CASE OF ANY BONDS OF THE AUTHORITY, INTEREST ON WHICH IS
INTENDED TO BE EXEMPT FROM  FEDERAL  INCOME  TAX,  THE  AUTHORITY  SHALL
PRESCRIBE  RESTRICTIONS  ON  THE USE OF THE PROCEEDS THEREOF AND RELATED
MATTERS ONLY AS ARE NECESSARY OR DESIRABLE TO ASSURE SUCH EXEMPTION, AND
THE RECIPIENTS OF SUCH PROCEEDS SHALL BE BOUND  THEREBY  TO  THE  EXTENT
SUCH  RESTRICTIONS SHALL BE MADE APPLICABLE TO THEM. ANY SUCH RECIPIENT,
INCLUDING, BUT NOT LIMITED TO, THE STATE, THE STATE  INSURANCE  FUND,  A
PUBLIC  BENEFIT  CORPORATION,  AND  A SCHOOL DISTRICT OR MUNICIPALITY IS
AUTHORIZED TO EXECUTE A TAX REGULATORY AGREEMENT WITH THE  AUTHORITY  OR
THE  STATE,  AS  THE CASE MAY BE, AND THE EXECUTION OF SUCH AN AGREEMENT
MAY BE TREATED BY THE AUTHORITY OR THE STATE AS A CONDITION TO RECEIVING
ANY SUCH PROCEEDS.
  10. (A) THE STATE,  SOLELY  WITH  RESPECT  TO  THE  RESOURCES  OF  THE
SELF-INSURER  OFFSET  FUND  AND  AS  SET  FORTH IN THE SELF-INSURED BOND
FINANCING AGREEMENT, COVENANTS WITH THE PURCHASERS  AND  ALL  SUBSEQUENT
OWNERS AND TRANSFEREES OF BONDS ISSUED BY THE AUTHORITY PURSUANT TO THIS
SECTION  IN CONSIDERATION OF THE ACCEPTANCE OF THE PAYMENT OF THE BONDS,
UNTIL THE BONDS, TOGETHER WITH THE INTEREST THEREON,  WITH  INTEREST  ON
ANY  UNPAID  INSTALLMENT  OF  INTEREST  AND  ALL  COSTS  AND EXPENSES IN
CONNECTION WITH ANY ACTION OR PROCEEDING ON BEHALF OF  THE  OWNERS,  ARE
FULLY  MET  AND  DISCHARGED  OR  UNLESS EXPRESSLY PERMITTED OR OTHERWISE

S. 2607--D                         170                        A. 3007--D

AUTHORIZED BY THE TERMS OF EACH FINANCING  AGREEMENT  AND  ANY  CONTRACT
MADE  OR  ENTERED  INTO BY THE AUTHORITY WITH OR FOR THE BENEFIT OF SUCH
OWNERS:
  (I)  THAT  IN  THE  EVENT BONDS OF THE AUTHORITY ARE SOLD AS FEDERALLY
TAX-EXEMPT BONDS, THE STATE SHALL NOT TAKE ANY ACTION OR  FAIL  TO  TAKE
ACTION  THAT  WOULD  RESULT IN THE LOSS OF SUCH FEDERAL TAX EXEMPTION ON
SAID BONDS;
  (II) THAT THE STATE WILL CAUSE  THE  WORKERS'  COMPENSATION  BOARD  TO
IMPOSE,  CHARGE,  RAISE, LEVY, COLLECT AND APPLY THE PLEDGED ASSESSMENTS
FOR THE PAYMENT OF DEBT SERVICE REQUIREMENTS IN EACH YEAR IN WHICH BONDS
ARE OUTSTANDING; AND
  (III) THAT THE STATE, SUBSEQUENT TO THE ISSUANCE OF BONDS  UNDER  THIS
SECTION:
  (A) WILL NOT MATERIALLY LIMIT OR ALTER THE DUTIES IMPOSED ON THE WORK-
ERS'  COMPENSATION BOARD, THE AUTHORITY, AND OTHER OFFICERS OF THE STATE
BY THE SELF-INSURED BOND FINANCING AGREEMENT AND  THE  BOND  PROCEEDINGS
AUTHORIZING THE ISSUANCE OF BONDS WITH RESPECT TO APPLICATION OF PLEDGED
ASSESSMENTS FOR THE PAYMENT OF DEBT SERVICE REQUIREMENTS;
  (B)  WILL  NOT  ISSUE  ANY  BONDS, NOTES OR OTHER EVIDENCES OF INDEBT-
EDNESS, OTHER THAN THE BONDS AUTHORIZED  BY  THIS  SECTION,  HAVING  ANY
RIGHTS  ARISING  OUT  OF  SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDIVISION
FIVE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW OR  THIS  SECTION
OR  SECURED  BY  ANY  PLEDGE  OF OR OTHER LIEN OR CHARGE ON THE REVENUES
PLEDGED FOR THE PAYMENT OF DEBT SERVICE REQUIREMENTS; EXCEPT  FOR  BONDS
AUTHORIZED  UNDER  SUBDIVISION  EIGHT OF SECTION FIFTEEN OF THE WORKERS'
COMPENSATION LAW.
  (C) WILL NOT CREATE OR CAUSE TO BE CREATED ANY LIEN OR CHARGE  ON  THE
PLEDGED  REVENUES,  OTHER THAN A LIEN OR PLEDGE CREATED THEREON PURSUANT
TO SAID SECTIONS;
  (D) WILL CARRY OUT AND  PERFORM,  OR  CAUSE  TO  BE  CARRIED  OUT  AND
PERFORMED,  EACH AND EVERY PROMISE, COVENANT, AGREEMENT OR CONTRACT MADE
OR ENTERED INTO BY THE FINANCING AGREEMENT, BY THE AUTHORITY OR  ON  ITS
BEHALF WITH THE BOND OWNERS OF ANY BONDS;
  (E)  WILL  NOT IN ANY WAY IMPAIR THE RIGHTS, EXEMPTIONS OR REMEDIES OF
THE BOND OWNERS; AND
  (F) WILL NOT LIMIT, MODIFY, RESCIND, REPEAL  OR  OTHERWISE  ALTER  THE
RIGHTS  OR  OBLIGATIONS  OF  THE  APPROPRIATE  OFFICERS  OF THE STATE TO
IMPOSE, MAINTAIN, CHARGE OR COLLECT  THE  ASSESSMENTS  CONSTITUTING  THE
PLEDGED  REVENUES  AS MAY BE NECESSARY TO PRODUCE SUFFICIENT REVENUES TO
FULFILL THE TERMS OF THE PROCEEDINGS AUTHORIZING  THE  ISSUANCE  OF  THE
BONDS, INCLUDING PLEDGED REVENUE COVERAGE REQUIREMENTS.
  (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION:
  (I) THE REMEDIES AVAILABLE TO THE AUTHORITY AND  THE  BONDHOLDERS  FOR
ANY  BREACH OF THE PLEDGES AND AGREEMENTS OF THE STATE SET FORTH IN THIS
SUBDIVISION SHALL BE LIMITED TO INJUNCTIVE RELIEF;
  (II) NOTHING IN THIS SUBDIVISION  SHALL  PREVENT  THE  AUTHORITY  FROM
ISSUING EVIDENCES OF INDEBTEDNESS:
  (A)  WHICH  ARE SECURED BY A PLEDGE OR LIEN WHICH IS, AND SHALL ON THE
FACE THEREOF, BE EXPRESSLY SUBORDINATE AND JUNIOR  IN  ALL  RESPECTS  TO
EVERY LIEN AND PLEDGE CREATED BY OR PURSUANT TO SAID SECTIONS; OR
  (B)  WHICH  ARE  SECURED  BY  A  PLEDGE  OF OR LIEN ON MONEYS OR FUNDS
DERIVED ON OR AFTER THE DATE EVERY PLEDGE OR LIEN THEREON CREATED BY  OR
PURSUANT TO SAID SECTIONS SHALL BE DISCHARGED AND SATISFIED; AND
  (III)  NOTHING IN THIS SUBDIVISION SHALL PRECLUDE THE STATE FROM EXER-
CISING ITS POWER, THROUGH A CHANGE IN LAW, TO  LIMIT,  MODIFY,  RESCIND,

S. 2607--D                         171                        A. 3007--D

REPEAL  OR  OTHERWISE  ALTER THE CHARACTER OF THE PLEDGED ASSESSMENTS OR
REVENUES OR TO SUBSTITUTE LIKE  OR  DIFFERENT  SOURCES  OF  ASSESSMENTS,
TAXES,  FEES,  CHARGES OR OTHER RECEIPTS AS PLEDGED REVENUES IF AND WHEN
ADEQUATE  PROVISION SHALL BE MADE BY LAW FOR THE PROTECTION OF THE HOLD-
ERS OF OUTSTANDING BONDS PURSUANT TO THE  PROCEEDINGS  UNDER  WHICH  THE
BONDS  ARE  ISSUED,  INCLUDING CHANGING OR ALTERING THE METHOD OF ESTAB-
LISHING THE SPECIAL ASSESSMENTS.
  (C) THE AUTHORITY IS AUTHORIZED TO INCLUDE THIS COVENANT OF THE STATE,
AS A CONTRACT OF THE STATE, IN ANY AGREEMENT WITH THE OWNER OF ANY BONDS
ISSUED PURSUANT TO THIS SECTION AND IN ANY CREDIT FACILITY OR REIMBURSE-
MENT AGREEMENT WITH RESPECT TO SUCH BONDS.  NOTWITHSTANDING THESE PLEDG-
ES AND AGREEMENTS BY THE STATE, THE ATTORNEY GENERAL MAY IN HIS  OR  HER
DISCRETION  ENFORCE  ANY  AND ALL PROVISIONS RELATED TO THE SELF-INSURED
BOND FUND, WITHOUT LIMITATION.
  (D) PRIOR TO THE DATE WHICH IS ONE YEAR AND ONE DAY AFTER THE AUTHORI-
TY NO LONGER HAS ANY BONDS ISSUED PURSUANT TO THIS SECTION  OUTSTANDING,
THE AUTHORITY SHALL HAVE NO AUTHORITY TO FILE A VOLUNTARY PETITION UNDER
CHAPTER  NINE OF THE FEDERAL BANKRUPTCY CODE OR SUCH CORRESPONDING CHAP-
TER OR SECTIONS AS MAY BE IN EFFECT, AND NEITHER ANY PUBLIC OFFICER  NOR
ANY  ORGANIZATION,  ENTITY OR OTHER PERSON SHALL AUTHORIZE THE AUTHORITY
TO BE OR BECOME A DEBTOR UNDER CHAPTER NINE OR ANY SUCCESSOR  OR  CORRE-
SPONDING CHAPTER OR SECTIONS DURING SUCH PERIOD. THE STATE HEREBY COVEN-
ANTS  WITH  THE OWNERS OF THE BONDS OF THE AUTHORITY THAT THE STATE WILL
NOT LIMIT OR ALTER THE DENIAL OF AUTHORITY UNDER THIS SUBDIVISION DURING
THE PERIOD REFERRED TO IN  THE  PRECEDING  SENTENCE.  THE  AUTHORITY  IS
AUTHORIZED  TO  INCLUDE THIS COVENANT OF THE STATE, AS A CONTRACT OF THE
STATE, IN ANY AGREEMENT WITH THE OWNER OF ANY BONDS ISSUED  PURSUANT  TO
THIS SECTION.
  (E)  TO  THE EXTENT DEEMED APPROPRIATE BY THE AUTHORITY ANY PLEDGE AND
AGREEMENT OF THE STATE WITH RESPECT TO THE BONDS  AS  PROVIDED  IN  THIS
SECTION MAY BE EXTENDED TO, AND INCLUDED IN, ANY ANCILLARY BOND FACILITY
AS  A PLEDGE AND AGREEMENT OF THE STATE WITH THE AUTHORITY AND THE BENE-
FITED PARTY.
  11. THE BONDS OF THE AUTHORITY ARE HEREBY MADE SECURITIES IN WHICH ALL
PUBLIC OFFICERS AND BODIES OF THIS  STATE  AND  ALL  MUNICIPALITIES  AND
POLITICAL  SUBDIVISIONS,  ALL  INSURANCE  COMPANIES AND ASSOCIATIONS AND
OTHER PERSONS CARRYING ON AN INSURANCE  BUSINESS,  ALL  BANKS,  BANKERS,
TRUST  COMPANIES,  SAVINGS  BANKS  AND  SAVINGS  ASSOCIATIONS, INCLUDING
SAVINGS AND LOAN ASSOCIATIONS, BUILDING AND LOAN  ASSOCIATIONS,  INVEST-
MENT  COMPANIES  AND  OTHER  PERSONS CARRYING ON A BANKING BUSINESS, ALL
ADMINISTRATORS, GUARDIANS, EXECUTORS, TRUSTEES  AND  OTHER  FIDUCIARIES,
AND ALL OTHER PERSONS WHATSOEVER WHO ARE NOW OR MAY HEREAFTER BE AUTHOR-
IZED  TO INVEST IN BONDS OR IN OTHER OBLIGATIONS OF THE STATE, MAY PROP-
ERLY AND LEGALLY INVEST FUNDS, INCLUDING CAPITAL, IN  THEIR  CONTROL  OR
BELONGING  TO  THEM. THE BONDS ARE ALSO HEREBY MADE SECURITIES WHICH MAY
BE DEPOSITED WITH AND MAY BE RECEIVED BY ALL PUBLIC OFFICERS AND  BODIES
OF  THE  STATE AND ALL MUNICIPALITIES, POLITICAL SUBDIVISIONS AND PUBLIC
CORPORATIONS FOR ANY PURPOSE FOR WHICH THE DEPOSIT  OF  BONDS  OR  OTHER
OBLIGATIONS OF THE STATE IS NOW OR MAY HEREAFTER BE AUTHORIZED.
  12.  (A) AN ACTION AGAINST THE AUTHORITY FOR DEATH, PERSONAL INJURY OR
PROPERTY DAMAGE OR FOUNDED ON TORT SHALL NOT BE COMMENCED MORE THAN  ONE
YEAR  AND  NINETY  DAYS  AFTER  THE  CAUSE  OF ACTION THEREOF SHALL HAVE
ACCRUED NOR UNLESS A NOTICE OF CLAIM SHALL HAVE BEEN SERVED ON A  MEMBER
OF  THE  AUTHORITY  OR  OFFICER  OR  EMPLOYEE  THEREOF DESIGNATED BY THE
AUTHORITY FOR SUCH PURPOSE, WITHIN THE TIME LIMITED BY, AND  IN  COMPLI-

S. 2607--D                         172                        A. 3007--D

ANCE  WITH  THE REQUIREMENTS OF SECTION FIFTY-E OF THE GENERAL MUNICIPAL
LAW.
  (B)  THE  VENUE  OF  EVERY  ACTION, SUIT OR SPECIAL PROCEEDING BROUGHT
AGAINST THE AUTHORITY OR CONCERNING THE VALIDITY OF THIS  SECTION  SHALL
BE LAID IN THE COUNTY OF ALBANY.
  (C) THE BONDS, AND ANY OBLIGATION OF THE AUTHORITY UNDER ANY ANCILLARY
BOND  FACILITY,  MAY CONTAIN A RECITAL THAT THEY ARE ISSUED OR EXECUTED,
RESPECTIVELY, PURSUANT TO THIS SECTION, WHICH RECITAL SHALL  BE  CONCLU-
SIVE  EVIDENCE  OF  THE  VALIDITY  OF THE BONDS AND ANY SUCH OBLIGATION,
RESPECTIVELY, AND THE REGULARITY OF THE  PROCEEDINGS  OF  THE  AUTHORITY
RELATING THERETO.
  13.  ANY  ACTION OR PROCEEDING TO WHICH THE AUTHORITY OR THE PEOPLE OF
THE STATE MAY BE PARTIES, IN WHICH ANY QUESTION ARISES AS TO THE VALIDI-
TY OF THIS SECTION, SHALL BE PREFERRED OVER ALL OTHER  CIVIL  CAUSES  OF
ACTION  OR  CASES,  EXCEPT  ELECTION  CAUSES  OF ACTION OR CASES, IN ALL
COURTS OF THE STATE AND SHALL BE HEARD AND DETERMINED IN  PREFERENCE  TO
ALL  OTHER CIVIL BUSINESS PENDING THEREIN, EXCEPT ELECTION CAUSES, IRRE-
SPECTIVE OF POSITION ON THE CALENDAR.   THE  SAME  PREFERENCE  SHALL  BE
GRANTED  UPON  APPLICATION OF THE AUTHORITY OR ITS COUNSEL IN ANY ACTION
OR PROCEEDING QUESTIONING THE VALIDITY OF  THIS  SECTION  IN  WHICH  THE
AUTHORITY MAY BE ALLOWED TO INTERVENE.
  14.  NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO FUNDS OF THE SELF-IN-
SURER OFFSET FUND MAY BE USED FOR ANY PURPOSE OTHER THAN THOSE SET FORTH
IN THIS SECTION AND SECTION FIFTY-A OF THE WORKERS' COMPENSATION LAW.
  S 36. Subdivision 1 of section  17  of  the  public  officers  law  is
amended by adding a new paragraph (x) to read as follows:
  (X)  FOR  THE  PURPOSES  OF  THIS  SECTION,  THE TERM "EMPLOYEE" SHALL
INCLUDE THE MEMBERS OF THE  BOARD, OFFICERS AND EMPLOYEES OF THE  DORMI-
TORY  AUTHORITY  FOR PURPOSES OF SECTION SIXTEEN HUNDRED EIGHTY-Q OF THE
PUBLIC AUTHORITIES LAW.
  S 37. This act shall take effect immediately, provided,  however  that
section  ten of this act shall take effect on the ninetieth day after it
shall have become a law.

                                 PART HH

  Section 1. The state comptroller is hereby authorized and directed  to
loan  money in accordance with the provisions set forth in subdivision 5
of section 4 of the state finance law  to  the  following  funds  and/or
accounts:
  1. Tuition reimbursement fund:
  a. Tuition reimbursement account (20451).
  b. Proprietary vocational school supervision account (20452).
  2. Local government records management improvement fund:
  a. Local government records management account (20501).
  3. Dedicated highway and bridge trust fund:
  a. Highway and bridge capital account (30051).
  4. State university residence hall rehabilitation fund.
  5. State parks infrastructure trust fund:
  a. State parks infrastructure account (30351).
  6. Clean water/clean air implementation fund.
  7. Employees health insurance fund.
  a. Employees health insurance account (60201).
  8. State lottery fund:
  a. Education - New (20901).
  b. VLT - Sound basic education fund (20904).

S. 2607--D                         173                        A. 3007--D

  9. Medicaid management information system escrow fund.
  10. Sewage treatment program management and administration fund.
  11. Environmental conservation special revenue fund:
  a. Waste cleanup and management account (21053).
  b. Hazardous bulk storage account (21061).
  c. Great lakes restoration initiative account (21087).
  d. Low level radioactive waste siting account (21066).
  e. Recreation account (21067).
  f. Public safety recovery account (21077).
  g. Conservationist magazine account (21080).
  h. Environmental regulatory account (21081).
  i. Natural resource account (21082).
  j. Mined land reclamation program account (21084).
  k. Federal grants indirect cost recovery account (21065).
  12. Environmental protection and oil spill compensation fund.
  13. Hazardous waste remedial fund:
  a. Hazardous waste remedial cleanup account (31506).
  14. Mass transportation operating assistance fund:
  a. Public transportation systems account (21401).
  b. Metropolitan mass transportation (21402).
  15. Clean air fund:
  a. Operating permit program account (21451).
  b. Mobile source account (21452).
  16. Centralized services fund.
  17. State exposition special fund.
  18. Agency enterprise fund:
  a. OGS convention center account (50318).
  19. Agencies internal service fund:
  a. Archives records management account (55052).
  b. Federal single audit account (55053).
  c. Civil service law: sec 11 admin account (55055).
  d. Civil service EHS occupational health program account (55056).
  e. Banking services account (55057).
  f. Cultural resources survey account (55058).
  g. Neighborhood work project (55059).
  h. Automation & printing chargeback account (55060).
  i. OFT NYT account (55061).
  j. Data center account (55062).
  k. Human service telecom account (55063).
  l. Centralized technology services account (55069).
  m. OPWDD copy center account (55065).
  n. Intrusion detection account (55066).
  o. Domestic violence grant account (55067).
  p. Learning management system account (55070).
  q. Tax contact center account.
  r. Human services contact center account.
  s. Labor contact center account.
  20. Miscellaneous special revenue fund:
  a. Statewide planning and research cooperative system account (21902).
  b. OPWDD provider of service account (21903).
  c. New York state thruway authority account (21905).
  d. Mental hygiene patient income account (21909).
  e. Financial control board account (21911).
  f. Regulation of racing account (21912).
  g. New York metropolitan transportation council account (21913).
  h. Cyber upgrade account (21919).

S. 2607--D                         174                        A. 3007--D

  i. State university dormitory income reimbursable account (21937).
  j. Energy research account (21943).
  k. Criminal justice improvement account (21945).
  l. Fingerprint identification and technology account (21950).
  m. Environmental laboratory reference fee account (21959).
  n. Clinical laboratory reference system assessment account (21962).
  o. Public employment relations board account (21964).
  p. Cable television account (21971).
  q. Indirect cost recovery account (21978).
  r. High school equivalency program account (21979).
  s. Rail safety inspection account (21983).
  t. Multi-agency training account (21989).
  u. Critical infrastructure account (21992).
  v. Bell jar collection account (22003).
  w. Industry and utility service account (22004).
  x. Real property disposition account (22006).
  y. Parking account (22007).
  z. Asbestos safety training program account (22009).
  aa. Public service account (22011).
  bb. Batavia school for the blind account (22032).
  cc. Investment services account (22034).
  dd. Surplus property account (22036).
  ee. Financial oversight account (22039).
  ff. Regulation of indian gaming account (22046).
  gg. Rome school for the deaf account (22053).
  hh. Seized assets account (22054).
  ii. Administrative adjudication account (22055).
  jj. Federal salary sharing account (22056).
  kk. New York City assessment account (22062).
  ll. Cultural education account (22063).
  mm. Examination and miscellaneous revenue account (22065).
  nn. Local services account (22078).
  oo. DHCR mortgage servicing account (22085).
  pp. Department of motor vehicles compulsory insurance account (22087).
  qq. Housing indirect cost recovery account (22090).
  rr. DHCR-HCA application fee account (22100).
  ss. Low income housing monitoring account (22130).
  tt. Corporation administration account (22135).
  uu. Montrose veteran's home account (22144).
  vv. Motor fuel quality account (22149).
  ww. Deferred compensation administration account (22151).
  xx. Rent revenue other account (22156).
  yy. Rent revenue account (22158).
  zz. Tax revenue arrearage account (22168).
  aaa. Solid waste management account (22176).
  bbb. Capacity contracting (22016).
  ccc. Point insurance reduction program account.
  ddd. Internet point insurance reduction program account (22094).
  eee. Mental hygiene program fund account (21907).
  fff. Third party debt collection account.
  21. New York State Storm Recovery Capital Fund:
  22. State university income fund:
  a. State university general income offset account (22654).
  23. State police and motor vehicle law enforcement fund:
  a. State police motor vehicle law enforcement account (22802).
  24. Youth facilities improvement fund:

S. 2607--D                         175                        A. 3007--D

  a. Youth facilities improvement account (31701).
  25. Highway safety program fund:
  a. Highway safety program account (23001).
  26. Drinking water program management and administration fund:
  a. EFC drinking water program account (23101).
  b. DOH drinking water program account (23102).
  27. New York city county clerks offset fund:
  a. NYCCC operating offset account (23151).
  28. Housing assistance fund.
  29. Housing program fund.
  30. Department of transportation - engineering services fund:
  a. Highway facility purpose account (31951).
  31. Miscellaneous capital projects fund:
  a. New York racing account (32213).
  32. Mental hygiene facilities capital improvement fund.
  33. Joint labor/management administration fund:
  a. Joint labor/management administration fund (55201).
  34. Audit and control revolving fund:
  a. Executive direction internal audit account (55251).
  b. CIO Information technology centralized services account (55252).
  35. Health insurance internal service fund:
  a. Health insurance internal service account (55300).
  b. Civil service employee benefits div admin (55301).
  36. Correctional industries revolving fund.
  37. Correctional facilities capital improvement fund.
  38. HCRA resources fund:
  a. EPIC premium account (20818).
  b. Hospital based grants program account (20812).
  c. Child health plus program account (20810).
  S 1-a. The state comptroller is hereby authorized and directed to loan
money  in  accordance  with the provisions set forth in subdivision 5 of
section 4 of the state finance law to any account within  the  following
federal  funds,  provided  the comptroller has made a determination that
sufficient federal grant award authority is available to reimburse  such
loans:
  1. Federal USDA-food nutrition services fund.
  2. Federal health and human services fund.
  3. Federal education grants fund.
  4. Federal block grant fund.
  5. Federal operating grants fund.
  6. Federal capital projects fund.
  7. Federal unemployment insurance administration fund.
  8. Federal unemployment insurance occupational training fund.
  9. Federal employment and training grants.
  S  2.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2014, up to the unencumbered balance or the  follow-
ing amounts:
  Economic Development and Public Authorities:
  1.  $175,000  from  the miscellaneous special revenue fund underground
facilities safety training account (22172), to the general fund.
  2. An amount up to the unencumbered  balance  from  the  miscellaneous
special  revenue  fund, business and licensing services account (21977),
to the general fund.

S. 2607--D                         176                        A. 3007--D

  3. $14,810,000 from  the  miscellaneous  special  revenue  fund,  code
enforcement account (21904), to the general fund.
  4.  An  amount  up  to the unencumbered balance from the miscellaneous
special revenue fund,  administrative  costs  account  (21974),  to  the
general fund.
  5.  $3,000,000  from  the  general  fund  to the miscellaneous special
revenue fund, tax revenue arrearage account (22168).
  Education:
  1. $2,230,000,000 from the general fund to  the  state  lottery  fund,
education  account (20901), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c  of
the  state  finance  law  that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
  2. $951,800,000 from the general fund to the state lottery  fund,  VLT
education  account (20904), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c  of
the  state  finance  law  that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
  3. Moneys from the state lottery fund up to  an  amount  deposited  in
such  fund  pursuant  to  section  1612  of the tax law in excess of the
current year appropriation for supplemental aid to education pursuant to
section 92-c of the state finance law.
  4. $300,000 from the local government records  management  improvement
fund to the archives partnership trust fund.
  5. $900,000 from the general fund to the miscellaneous special revenue
fund, Batavia school for the blind account (22032).
  6. $900,000 from the general fund to the miscellaneous special revenue
fund, Rome school for the deaf account (22053).
  7.  $80,000,000 from the state university dormitory income fund to the
state university residence hall rehabilitation fund.
  8. $343,400,000 from the state university dormitory income fund to the
miscellaneous special revenue fund, state  university  dormitory  income
reimbursable account (21937).
  9.  $24,000,000  from  any  of  the state education department special
revenue and internal service funds to the miscellaneous special  revenue
fund, indirect cost recovery account (21978).
  10.  $8,318,000  from  the general fund to the state university income
fund, state university income offset account (22654),  for  the  state's
share of repayment of the STIP loan.
  11. $51,700,000 from the state university income fund, state universi-
ty hospitals income reimbursable account (22656) to the general fund for
hospital  debt  service  for  the period April 1, 2013 through March 31,
2014.
  Environmental Affairs:
  1. $5,000,000 from the department of transportation's federal  capital
projects  fund  to  the office of parks and recreation federal operating
grants fund, miscellaneous operating grants account (25300).
  2. $16,000,000 from any of the department of  environmental  conserva-
tion's special revenue federal funds to the special revenue fund federal
grant indirect cost recovery account (22188).
  3.  $2,000,000  from  any of the department of environmental conserva-
tion's special revenue federal funds to the conservation fund as  neces-
sary to avoid diversion of conservation funds.
  4.  $15,000,000  from the environmental protection fund, environmental
protection transfer account (30451) to the general fund.

S. 2607--D                         177                        A. 3007--D

  5. $3,000,000 from any of the office of parks, recreation and historic
preservation capital projects federal funds and special revenue  federal
funds  to  the special revenue fund federal grant indirect cost recovery
account (22188).
  6. $1,000,000 from any of the office of parks, recreation and historic
preservation  special revenue federal funds to the special revenue fund,
I love NY water account (21930).
  Family Assistance:
  1. $10,000,000 from any of the office of children and family services,
office of temporary and disability assistance, or department  of  health
special  revenue  federal funds and the general fund, in accordance with
agreements with social services districts, to the miscellaneous  special
revenue  fund, office of human resources development state match account
(21967).
  2. $3,000,000 from any of the office of children and  family  services
or office of temporary and disability assistance special revenue federal
funds to the miscellaneous special revenue fund, family preservation and
support services and family violence services account (22082).
  3.  $6,000,000  from any of the office of children and family services
special revenue federal  funds  to  the  general  fund  for  title  IV-E
reimbursement of youth facility costs.
  4. $12,670,000 from any of the office of children and family services,
office  of  temporary and disability assistance, or department of health
special revenue federal  funds  and  any  other  miscellaneous  revenues
generated  from  the operation of office of children and family services
programs to the general fund.
  5. $10,000,000 from any of the office of children and family  services
or  office  of temporary and disability assistance special revenue funds
or  the  general  fund  to  the  miscellaneous  special  revenue   fund,
connections account (22180).
  6.  $41,000,000  from  any  of  the office of temporary and disability
assistance accounts within the federal health and human services fund to
the general fund.
  7. $159,000,000 from any of the office  of  temporary  and  disability
assistance  or department of health special revenue funds to the general
fund.
  8. $2,500,000 from any of  the  office  of  temporary  and  disability
assistance  or  office  of  children and family services special revenue
federal funds to the  miscellaneous  special  revenue  fund,  office  of
temporary and disability assistance program account (21980).
  9. $50,000,000 from any of the office of children and family services,
office  of temporary and disability assistance, department of labor, and
department of health special revenue federal  funds  to  the  office  of
children  and family services miscellaneous special revenue fund, multi-
agency training contract account (21989).
  10. $152,400,000 from the miscellaneous special  revenue  fund,  youth
facility per Diem account (22186), to the general fund.
  11.  $621,850 from the general fund to the combined gifts, grants, and
bequests fund, WB Hoyt Memorial account (20128).
  12. $4,822,000 from  the  miscellaneous  special  revenue  fund  state
central registry (22028) to the general fund.
  General Government:
  1. $1,566,000 from the miscellaneous special revenue fund, examination
and miscellaneous revenue account (22065) to the general fund.
  2. $12,500,000 from the general fund to the health insurance revolving
fund.

S. 2607--D                         178                        A. 3007--D

  3. $192,400,000 from the health insurance reserve receipts fund to the
general fund.
  4. $150,000 from the general fund to the not-for-profit revolving loan
fund.
  5. $150,000 from the not-for-profit revolving loan fund to the general
fund.
  6. $31,000,000 from the miscellaneous special revenue fund, real prop-
erty disposition account (22006), to the general fund.
  7.  $3,000,000  from  the  miscellaneous special revenue fund, surplus
property account (22036), to the general fund.
  8. $18,200,000 from the general  fund  to  the  miscellaneous  special
revenue fund, alcoholic beverage control account (22033).
  9.  $23,000,000  from  the miscellaneous special revenue fund, revenue
arrearage account (22024), to the general fund.
  10. $1,826,000 from the miscellaneous  special  revenue  fund  revenue
arrearage  account  (22024),  to  the miscellaneous special revenue fund
authority budget office account (22138).
  11. $1,000,000 from the miscellaneous special  revenue  fund,  parking
services  account (22007), to the general fund, for the purpose of reim-
bursing the costs of debt service related to state parking facilities.
  12. $52,600,000 from the general fund  to  the  miscellaneous  special
revenue fund, statewide financial system account (22074).
  13.  $40,000,000  from  the  general fund to the office for technology
internal service fund, central technology services account (55069),  for
the purpose of enterprise technology projects.
  Health:
  1.  $139,560,000  from the miscellaneous special revenue fund, quality
of care account (21915) to the general fund.
  2. $1,000,000 from the general fund to the combined gifts, grants  and
bequests  fund, breast cancer research and education account (20155), an
amount equal to the monies collected and deposited into that account  in
the previous fiscal year.
  3. $2,464,000 from any of the department of health accounts within the
federal  health  and  human  services  fund  to the department of health
miscellaneous special revenue  fund,  statewide  planning  and  research
cooperation system (SPARCS) program account (21902).
  4.  $250,000  from  the general fund to the combined gifts, grants and
bequests  fund,  prostate  cancer  research,  detection,  and  education
account  (20183),  an amount equal to the moneys collected and deposited
into that account in the previous fiscal year.
  5. $500,000 from the general fund to the combined  gifts,  grants  and
bequests  fund,  Alzheimer's  disease  research  and  assistance account
(20143), an amount equal to the moneys collected and deposited into that
account in the previous fiscal year.
  6. $1,000,000 from the miscellaneous special  revenue  fund,  adminis-
tration account (21982), to the general fund.
  7.  $600,000,000  from any of the department of health accounts within
the federal health and human services fund to the miscellaneous  special
revenue fund, federal state health reform partnership account (22076).
  8.  $26,000,000 from the special revenue fund, HCRA resources fund, to
the miscellaneous special revenue fund, empire  state  stem  cell  trust
fund account (22161).
  9.  $1,250,000  from  the  miscellaneous  New  York state agency fund,
medical assistance account to the general fund.
  10. $3,700,000 from the miscellaneous  New  York  state  agency  fund,
medical assistance account to the general fund.

S. 2607--D                         179                        A. 3007--D

  11.  $14,000,000  from  the  general fund to the miscellaneous special
revenue fund, empire state stem cell trust fund (22161).
  12.  $139,560,000 from any of the department of health accounts within
the federal health and human services fund to the miscellaneous  special
revenue fund, quality of care account (21915).
  Labor:
  1.  $700,000  from  the  labor standards miscellaneous special revenue
fund, fee and penalty account (21923), to the child performer protection
fund, child performer protection account (20401).
  2. $8,400,000 from the labor standards miscellaneous  special  revenue
fund, fee and penalty account (21923), to the general fund.
  3.  $3,300,000  from  the  unemployment insurance interest and penalty
special revenue fund, unemployment insurance special interest and penal-
ty account (23601), to the general fund.
  4. $3,000,000 from the labor standards miscellaneous  special  revenue
fund, public work enforcement account (21998), to the general fund.
  5.  $2,200,000 from the training and education program on occupational
safety and  health  fund,  occupational  safety  and  health  inspection
account (21252), to the general fund.
  6.  $900,000  from  the training and education program on occupational
safety and health fund, training and education account (21251),  to  the
general fund.
  Mental Hygiene:
  1.  $10,000,000  from  the  miscellaneous special revenue fund, mental
hygiene patient income account (21909),  to  the  miscellaneous  special
revenue fund, federal salary sharing account (22056).
  2.  $150,000,000  from  the miscellaneous special revenue fund, mental
hygiene patient income account  (21909)  to  the  miscellaneous  special
revenue fund, provider of service accounts (21903).
  3.  $150,000,000  from  the miscellaneous special revenue fund, mental
hygiene program fund account (21907) to the miscellaneous special reven-
ue fund, provider of service account (21903).
  4. $1,250,000,000 from the general fund to the  miscellaneous  special
revenue fund, mental hygiene patient income account (21909).
  5.  $1,400,000,000  from the general fund to the miscellaneous special
revenue fund, mental hygiene program fund account (21907).
  6. $100,000,000 from the miscellaneous special  revenue  fund,  mental
hygiene program fund account (21907) to the general fund.
  7.  $100,000,000  from  the miscellaneous special revenue fund, mental
hygiene patient income account (21909) to the general fund.
  Public Protection:
  1. $1,350,000 from the miscellaneous special revenue  fund,  emergency
management account (21944), to the general fund.
  2.  $3,300,000  from  the  general  fund  to the miscellaneous special
revenue fund, recruitment incentive account (22171).
  3. $9,500,000 from the general fund  to  the  correctional  industries
revolving   fund,   correctional  industries  internal  service  account
(55350).
  4. $10,000,000 from federal miscellaneous operating grants fund,  DMNA
damage account (25324), to the general fund.
  5.  $16,000,000  from  the  general  fund to the miscellaneous special
revenue fund, crimes against revenue program account (22015).
  6. $20,000,000 from any office of homeland security account within the
federal miscellaneous operating grants fund, receiving money through the
homeland security grants program, to the general fund.

S. 2607--D                         180                        A. 3007--D

  7. $22,000,000 from the miscellaneous special revenue  fund,  criminal
justice improvement account (21945) to the general fund.
  8.  $20,000,000 from the miscellaneous special revenue fund, statewide
public safety communications account (22123), to the general fund.
  9. $106,000,000 from the state police and motor vehicle  law  enforce-
ment  and  motor vehicle theft and insurance fund prevention fund, state
police motor vehicle enforcement account (22802) to the general fund for
state operation expenses of the division of state police.
  10. $21,500,000 from the general fund to the  correctional  facilities
capital improvement fund.
  11.  $1,500,000 from the miscellaneous special revenue fund, statewide
public safety communications account (22123),  to  the  combined  gifts,
grants  and  bequests  fund, New York state emergency services revolving
loan account (20150).
  12. $3,000,000 from the general fund  to  the  dedicated  highway  and
bridge  trust  fund  for  the  purpose  of  work  zone safety activities
provided by the division of state police for the department of transpor-
tation.
  13. $11,000,000 from the indigent legal services fund to  the  general
fund.
  Transportation:
  1. $17,672,000 from the federal miscellaneous operating grants fund to
the  special  revenue  fund, tri-state federal regional planning account
(21913).
  2. $20,147,000 from the federal capital projects fund to  the  special
revenue fund, tri-state federal regional planning accounts (21913).
  3. $15,368,000 from the miscellaneous special revenue fund, compulsory
insurance account (22087), to the general fund.
  4.  $12,000,000 from the general fund to the mass transportation oper-
ating assistance fund, public transportation systems  operating  assist-
ance account (21401).
  5.  $624,691,000  from  the  general fund to the dedicated highway and
bridge trust fund.
  6. $606,000 from the  miscellaneous  special  revenue  fund,  internet
point insurance reduction program account (22094), to the general fund.
  7.  $6,000  from  the  miscellaneous  special revenue fund, motorcycle
safety account (21976), to the general fund.
  8. $307,200,000 from the general fund to the MTA financial  assistance
fund, mobility tax trust account (23651).
  9. $20,000,000 from the mass transportation operating assistance fund,
metropolitan  mass  transportation operating assistance account (21402),
to the general debt service  fund,  for  reimbursement  of  the  state's
expenses  in  connection  with  payments  of  debt  service  and related
expenses for the metropolitan transportation authority's  state  service
contract bonds.
  Miscellaneous:
  1. $150,000,000 from the general fund to any funds or accounts for the
purpose of reimbursing certain outstanding accounts receivable balances.
  2.  $500,000,000  from  the general fund to the debt reduction reserve
fund.
  3. $450,000,000 from the New York state storm recovery capital fund to
the revenue bond tax fund (40152).
  4. $1,000,000 from  any  of  the  state  lottery  fund  administration
accounts,  the  miscellaneous special revenue fund, regulation of racing
account (21912),  the  miscellaneous  special  revenue  fund,  bell  jar
collection  account  (22003), or the miscellaneous special revenue fund,

S. 2607--D                         181                        A. 3007--D

regulation of  Indian  gaming  account  (22046),  to  the  miscellaneous
special revenue fund, New York state gaming commission account.
  S  3.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, on or before March 31, 2014:
  1. Upon request of the commissioner of environmental conservation,  up
to  $11,126,800 from revenues credited to any of the department of envi-
ronmental conservation special revenue funds, including $3,253,200  from
the  environmental  protection  and  oil  spill  compensation  fund, and
$1,762,600 from the conservation fund, to the environmental conservation
special revenue fund, indirect charges account (21060).
  2. Upon request of the commissioner of agriculture and markets, up  to
$3,000,000  from  any special revenue fund or enterprise fund within the
department of agriculture and markets to the general fund, to pay appro-
priate administrative expenses.
  3. Upon request of the commissioner of agriculture and markets, up  to
$2,000,000  from  the state exposition special fund, state fair receipts
account (50051) to the miscellaneous capital projects fund,  state  fair
capital improvement account (32208).
  4.  Upon  request  of  the commissioner of the division of housing and
community renewal, up to $6,221,000 from revenues credited to any  divi-
sion  of  housing and community renewal federal or miscellaneous special
revenue fund to the agency cost recovery account (22090).
  5. Upon request of the commissioner of the  division  of  housing  and
community  renewal, up to $5,500,000 may be transferred from any miscel-
laneous special revenue  fund  account,  to  any  miscellaneous  special
revenue fund.
  6.  Upon  request of the commissioner of health up to $15,000,000 from
revenues credited to any of the department of health's  special  revenue
funds, to the miscellaneous special revenue fund, administration account
(21982).
  S  4.  Notwithstanding  section  2815  of the public health law or any
other contrary provision of law, upon the direction of the  director  of
the  budget  and  the commissioner of health, the dormitory authority of
the state of New York is directed  to  transfer  seven  million  dollars
annually  from  funds  available  and  uncommitted in the New York state
health care restructuring pool to the  health  care  reform  act  (HCRA)
resources fund - HCRA resources account.
  S  4-a. Subdivision 3 of section 1680-j of the public authorities law,
as amended by section 9 of part C of chapter 59 of the laws of 2011,  is
amended to read as follows:
  3.  Notwithstanding  any  law  to the contrary, and in accordance with
section four of the state finance law, the comptroller is hereby author-
ized and directed to transfer from the health  care  reform  act  (HCRA)
resources fund (061) to the general fund, upon the request of the direc-
tor of the budget, up to $6,500,000 on or before March 31, 2006, and the
comptroller  is  further hereby authorized and directed to transfer from
the healthcare reform act (HCRA); Resources fund (061)  to  the  Capital
Projects  Fund,  upon  the  request  of  the  director  of budget, up to
$139,000,000 for the period April 1, 2006 through March 31, 2007, up  to
$171,100,000  for the period April 1, 2007 through March 31, 2008, up to
$208,100,000 for the period April 1, 2008 through March 31, 2009, up  to
$151,600,000  for the period April 1, 2009 through March 31, 2010, up to
$215,743,000 for the period April 1, 2010 through March 31, 2011, up  to
$433,366,000  for the period April 1, 2011 through March 31, 2012, up to
$150,806,000 for the period April 1, 2012 through March 31, 2013, up  to

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[$78,071,000]  $290,000,000  for  the period April 1, 2013 through March
31, 2014, and up to $86,005,000 for the period  April  1,  2014  through
March 31, 2015.
  S 5. On or before March 31, 2014, the comptroller is hereby authorized
and  directed  to  deposit  earnings  that would otherwise accrue to the
general fund that are attributable to the operation of section  98-a  of
the  state  finance  law, to the agencies internal service fund, banking
services account (55057), for the purpose  of  meeting  direct  payments
from such account.
  S  6.  Notwithstanding  any law to the contrary, upon the direction of
the director of the budget and upon requisition by the state  university
of  New  York,  the  dormitory  authority  of  the  state of New York is
directed to transfer, up to $22,000,000 in revenues generated  from  the
sale  of  notes  or  bonds,  to  the  state  university  of New York for
reimbursement of bondable equipment for further transfer to the  state's
general fund.
  S  7.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor  or  his  or  her
designee,  on or before March 31, 2014, up to $16,000,000 from the state
university income fund general revenue  account  (22653)  to  the  state
general  fund for debt service costs related to campus supported capital
project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
University at Buffalo.
  S  8.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor  or  his  or  her
designee,  on  or before March 31, 2014, up to $6,500,000 from the state
university income fund general revenue  account  (22653)  to  the  state
general  fund for debt service costs related to campus supported capital
project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
University at Albany.
  S  9.  Notwithstanding  any  law to the contrary, the state university
chancellor or her designee is authorized and directed to transfer  esti-
mated tuition revenue balances from the state university collection fund
to  the  state  university fund, state university general revenue offset
account (22655) on or before March 31, 2014.
  S 10. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to  $60,000,000  from  the  general  fund to the state university income
fund, state university hospitals  income  reimbursable  account  (22656)
during  the period July 1, 2013 through June 30, 2014 to reflect ongoing
state subsidy of SUNY hospitals and to pay  costs  attributable  to  the
SUNY hospitals' state agency status.
  S  10-a. Notwithstanding any law to the contrary, upon approval of the
state university board of trustees, the state  university  of  New  York
shall  transfer from any applicable state university income fund account
to the state university income fund, state university  hospitals  income
reimbursable  account  (22656)  up  to a total of $27,790,440 in savings
resulting from an agreement between the state and the collective negoti-
ating unit designated as the professional services negotiating  unit  in
the  state  university of New York established pursuant to article 14 of

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the civil service law. Such transfer shall be made in a form and  manner
prescribed by the board of trustees.
  S  10-b.  Notwithstanding  any  law to the contrary, and in accordance
with section 4 of the state finance law and subdivision  20  of  section
2807  of  the public health law, the comptroller is hereby authorized to
transfer, upon direction of the state university chancellor,  an  amount
necessary  to fund the non-federal share of Medicaid payments authorized
by such subdivision 20 from the state  university  income  fund  to  the
Medicaid  Management  Information  System  (MMIS)  statewide escrow fund
(179).
  S 10-c. Notwithstanding any law to the  contrary,  and  in  accordance
with  section  4  of the state finance law and subdivision 21 of section
2807 of the public health law, the comptroller is hereby  authorized  to
transfer,  upon  direction of the state university chancellor, an amount
necessary to fund the non-federal share of Medicaid payments  authorized
by  such  subdivision  21  from  the state university income fund, state
university hospitals income reimbursable account (22656), to  the  Medi-
caid Management Information System (MMIS) statewide escrow fund (179).
  S  11. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $971,259,860 from the general fund to  the  state  university  income
fund, state university general revenue offset account (22655) during the
period  of  July  1, 2013 through June 30, 2014 to support operations at
the state university.
  S 12. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed to transfer, upon request of the state university chancel-
lor or his or her designee, up to $50,000,000 from the state  university
income  fund,  state  university  hospitals  income reimbursable account
(22656), for hospital income reimbursable for services and  expenses  of
hospital  operations  and  capital  expenditures at the state university
hospitals, and the state university income fund  Long  Island  veterans'
home account (22652) to the state university capital projects fund on or
before June 30, 2014.
  S  13. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller, after  consultation
with  the  state university chancellor or his or her designee, is hereby
authorized and directed to transfer moneys, in the first instance,  from
the  state  university  collection fund, Stony Brook hospital collection
account (61006), Brooklyn hospital collection account (61007), and Syra-
cuse hospital collection account (61008) to the state university  income
fund,  state university hospitals income reimbursable account (22656) in
the event insufficient funds  are  available  in  the  state  university
income  fund,  state  university  hospitals  income reimbursable account
(22656) to transfer moneys, in amounts sufficient  to  permit  the  full
transfer  of  moneys  authorized  for  transfer, to the general fund for
payment of debt service related to the SUNY hospitals.   Notwithstanding
any  law  to the contrary, the comptroller is also hereby authorized and
directed, after consultation with the state university chancellor or his
or her designee, to transfer moneys from  the  state  university  income
fund  to  the  state  university income fund, state university hospitals
income reimbursable account (22656) in the event insufficient funds  are
available  in  the state university income fund, state university hospi-
tals income reimbursable account (22656) to pay hospital operating costs
or to transfer moneys, in amounts sufficient to permit the full transfer

S. 2607--D                         184                        A. 3007--D

of moneys authorized for transfer, to the general fund  for  payment  of
debt service related to the SUNY hospitals on or before March 31, 2014.
  S  14. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer monies, upon request of  the  director  of  the
budget,  on  or  before March 31, 2014, from and to any of the following
accounts: the miscellaneous special revenue fund, patient income account
(21909), the miscellaneous special revenue fund, mental hygiene  program
fund  account  (21907),  the miscellaneous special revenue fund, federal
salary sharing account (22056) or the general fund in  any  combination,
the aggregate of which shall not exceed $350 million.
  S  14-a.  Notwithstanding  any  law to the contrary, and in accordance
with section 4 of the state  finance  law,  the  comptroller  is  hereby
authorized  and  directed to transfer, at the request of the director of
the budget, up to thirty-three million dollars  ($33,000,000)  from  the
unencumbered balance of any special revenue fund or account, or combina-
tion  of funds and accounts, to the community projects fund. The amounts
transferred pursuant to this authorization shall be in addition  to  any
other  transfers  expressly  authorized in the 2013-14 budget. Transfers
from federal funds, debt services  funds,  capital  projects  funds,  or
funds  that would result in the loss of eligibility for federal benefits
or federal funds pursuant to federal law, rule, or regulation as assent-
ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws  of
1951  are  not permitted pursuant to this authorization. The director of
the budget shall (a) have received a request in writing from one or both
houses of the legislature, and (b) notify both houses of the legislature
in writing prior to initiating transfers pursuant to this authorization.
The comptroller shall provide the director of the budget, the  chair  of
the  senate  finance  committee,  and the chair of the assembly ways and
means committee with an accurate accounting and report of any  transfers
that  occur  pursuant  to this section on or before the fifteenth day of
the followng month in which such transfers occur.
  S 15. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed to transfer, at the request of the director of the budget,
up to $500 million from the unencumbered balance of any special  revenue
fund  or  account,  or combination of funds and accounts, to the general
fund. The amounts transferred pursuant to this authorization shall be in
addition to any other transfers  expressly  authorized  in  the  2013-14
budget.  Transfers  from  federal  funds,  debt  service  funds, capital
projects funds, the community projects fund, or funds that would  result
in  the loss of eligibility for federal benefits or federal funds pursu-
ant to federal law, rule, or regulation as assented to in chapter 683 of
the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
pursuant  to this authorization. The director of the budget shall notify
both houses of the legislature in writing prior to initiating  transfers
pursuant to this authorization.
  S  16. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the  budget,
up  to $100 million from any non-general fund or account, or combination
of funds and accounts, to the special revenue other-technology financing
account for the purpose  of  consolidating  technology  procurement  and
services.  The  amounts transferred pursuant to this authorization shall
be equal to or less than the amount of such monies intended  to  support
information  technology  costs  which  are  attributable, according to a

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plan, to such account made in pursuance  to  an  appropriation  by  law.
Transfers  to  the  technology financing account shall be completed from
amounts collected by non-general funds or accounts pursuant  to  a  fund
deposit  schedule  or permanent statute, and shall be transferred to the
technology financing account pursuant to a schedule agreed upon  by  the
affected  agency  commissioner.  Transfers  from  federal  funds are not
permitted pursuant to this authorization; nor may transfers be made from
funds that would result in the loss of eligibility for federal  benefits
or federal funds pursuant to federal law, rule, or regulation as assent-
ed  to in chapter 683 of the laws of 1938 and chapter 700 of the laws of
1951.  The director of the budget shall notify both houses of the legis-
lature in writing prior to initiating transfers pursuant to this author-
ization.
  S 17. Notwithstanding any provision of law to the contrary, as  deemed
feasible and advisable by its trustees, the power authority of the state
of New York is authorized and directed to (i) make a contribution to the
state  treasury  to  the  credit  of  the  general fund, or as otherwise
directed in writing by the director of the budget, in an amount of up to
$90,000,000 for the state fiscal year  commencing  April  1,  2013,  the
proceeds of which will be utilized to support energy-related initiatives
of  the state or for economic development purposes, and (ii) transfer up
to $25,000,000 of any such contribution by June 30, 2013 and the remain-
der of any such contribution by March 31, 2014.
  S 18. $5,000,000 from the general fund to  the  miscellaneous  special
revenue  fund,  tribal  state compact revenue account (22169).  Notwith-
standing any provision of  law  to  the  contrary,  such  funds  may  be
advanced  to  a  municipality  located  within the county of Cattaraugus
hosting a gaming facility pursuant to the requirements of  an  appropri-
ation  contained  in  chapter 53 of the laws of 2012; provided, however,
that any such advance shall reduce the  amount  otherwise  due  to  such
municipality  by  an  equivalent  amount,  and that, upon receipt of any
funds in the tribal state compact revenue account pursuant to  a  tribal
state  compact, such funds shall first be used to reimburse any transfer
from the general fund pursuant to this section.
  S 19. Section 53 of part U of chapter 59 of the laws of 2012, relating
to providing for administration of certain funds and accounts related to
the 2013-2014 budget, is amended to read as follows:
  S 53. This act shall take effect immediately and shall  be  deemed  to
have  been in full force and effect on and after April 1, 2012; provided
that sections one through seven, sections ten through fifteen,  [section
seventeen,]  and  sections twenty through thirty-three of this act shall
expire March 31, 2013, when upon  such  date,  the  provisions  of  such
sections  shall be deemed repealed; provided further that the amendments
to subdivisions 1 and 2 of section 45 of section 1 of chapter 174 of the
laws of 1968 made by section forty-nine of this act shall not affect the
expiration of such subdivisions and shall be deemed to expire therewith.
  S 20. Subdivision 5 of section 97-rrr of the  state  finance  law,  as
amended  by  section  16 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  5. Notwithstanding the provisions of section one hundred seventy-one-a
of the tax law, as separately amended by chapters four  hundred  eighty-
one  and four hundred eighty-four of the laws of nineteen hundred eight-
y-one, and notwithstanding the provisions of chapter ninety-four of  the
laws  of  two  thousand  eleven,  or  any other provisions of law to the
contrary, during the fiscal year beginning  April  first,  two  thousand
[twelve]  THIRTEEN,  the  state  comptroller  is  hereby  authorized and

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directed to deposit to the fund created pursuant to  this  section  from
amounts  collected  pursuant  to  article  twenty-two of the tax law and
pursuant to a schedule submitted by the director of the  budget,  up  to
[$3,322,067,000] $3,419,375,000, as may be certified in such schedule as
necessary  to  meet the purposes of such fund for the fiscal year begin-
ning April first, two thousand [twelve] THIRTEEN.
  S 21. The comptroller is authorized and directed  to  deposit  to  the
general fund-state purposes account reimbursements from moneys appropri-
ated  or  reappropriated to the correctional facilities capital improve-
ment fund by a chapter of the laws  of  2013.  Reimbursements  shall  be
available  for  spending  from  appropriations made to the department of
corrections and community supervision in the general fund-state purposes
accounts by a chapter of the laws of 2013 for costs associated with  the
administration  and  security  of  capital  projects and for other costs
which are attributable, according to a plan, to such capital projects.
  S 22. Section 3 of part W of chapter 60 of the laws of 2011,  amending
the  state  finance  law relating to disbursements from the tribal-state
compact revenue account to certain municipalities, is amended to read as
follows:
  S 3. This act shall take effect immediately; provided that:
  (a) the amendments to subdivision 3  of  section  99-h  of  the  state
finance  law  made by section one of this act shall expire and be deemed
repealed [March 31, 2013] DECEMBER 31, 2016; and
  (b) the amendments to paragraph (a) of subdivision 4 of  section  99-h
of  the  state  finance  law  made  by section two of this act shall not
affect the expiration of such section and  shall  be  deemed  to  expire
therewith.
  S  23.  Subdivision  3  of  section  99-h of the state finance law, as
amended by section 1 of part V of chapter 59 of the  laws  of  2006,  is
amended to read as follows:
  3. Moneys of the account, following [appropriation] THE SEGREGATION OF
APPROPRIATIONS  ENACTED  by  the  legislature,  shall  be  available for
purposes including but not limited to: (a) reimbursements or payments to
municipal governments that host tribal casinos  pursuant  to  a  tribal-
state compact for costs incurred in connection with services provided to
such  casinos  or  arising as a result thereof, for economic development
opportunities and job expansion programs  authorized  by  the  executive
law;  provided,  however,  that  for  any gaming facility located in the
county of Erie or Niagara, the municipal governments hosting the facili-
ty shall collectively receive a minimum of twenty-five  percent  of  the
negotiated percentage of the net drop from electronic gaming devices the
state receives pursuant to the compact and provided further that for any
gaming  facility located in the county or counties of Cattaraugus, Chau-
tauqua or Allegany, the municipal governments of the state  hosting  the
facility  shall collectively receive a minimum of twenty-five percent of
the negotiated percentage of the net drop from electronic gaming devices
the state receives pursuant to the compact; and  provided  further  that
pursuant  to  chapter  five  hundred  ninety of the laws of two thousand
four, a minimum of twenty-five percent of the revenues received  by  the
state  pursuant  to  the state's compact with the St. Regis Mohawk tribe
shall be made available to the counties of Franklin  and  St.  Lawrence,
and  affected  towns in such counties. Each such county and its affected
towns shall receive fifty percent of the moneys made  available  by  the
state;  and  (b)  support and services of treatment programs for persons
suffering from gambling addictions. Moneys not [appropriated] SEGREGATED

S. 2607--D                         187                        A. 3007--D

for such purposes shall be transferred  to  the  general  fund  for  the
support of government during the fiscal year in which they are received.
  S  24.  Paragraphs  (a)  and  (b)  of  subdivision 7 of section 5-a of
section 1 of chapter 392 of the laws of 1973, constituting the New  York
state  medical  care  facilities  finance  agency  act, paragraph (a) as
amended by chapter 55 of the laws of 1992 and paragraph (b)  as  amended
by chapter 59 of the laws of 1993, are amended to read as follows:
  (a)  In  connection with the making of federally-aided mortgage loans,
the commissioner of health shall  charge  to  such  non-profit  hospital
corporation,  non-profit corporation providing a residential health care
facility or non-profit medical corporation, for mortgage closings on  or
after April first, nineteen hundred eighty-nine, a fee of nine-tenths of
one percent of the mortgage loan, payable on requisition on or after the
mortgage  closing to the state department of health by the mortgagor for
deposit into the [miscellaneous special revenue fund - 339 hospital  and
nursing home management account] STATE GENERAL FUND.
  (b) In connection with the refinancing or refunding of federally-aided
mortgage  loans  or  loans  made pursuant to articles twenty-eight-A and
twenty-eight-B of the public health  law,  the  commissioner  of  health
shall  charge to such non-profit hospital corporation, non-profit corpo-
ration providing  a  residential  health  care  facility  or  non-profit
medical  corporation,  for  mortgage  closings  on or after April first,
nineteen hundred eighty-nine, a fee of five-tenths of one percent of the
new mortgage loan, payable on requisition on or after the mortgage clos-
ing to the state department of health by the mortgagor for deposit  into
the  [miscellaneous  special  revenue fund-339 hospital and nursing home
management account] STATE GENERAL FUND.
  S 25. In the event that a  capital  appropriation  in  the  amount  of
$25,000,000  is  included  in  the  enacted  budget  for the fiscal year
commencing April 1, 2013 for the cleaner,  greener  communities  program
administered  by  the  New  York  State  energy research and development
authority, then notwithstanding any provision of law, rule or regulation
to the contrary, the New York  State  energy  research  and  development
authority is authorized and directed to pay to the state treasury to the
credit  of  the  general fund for the cost of such program the amount of
$25,000,000 for the fiscal year commencing April 1, 2013  from  proceeds
collected  by  the  authority from the auction or sale of carbon dioxide
emission allowances allocated by the department of environmental conser-
vation under the Regional Greenhouse Gas Initiative. If, in  any  fiscal
year,  such  $25,000,000 appropriation or any reappropriation thereof is
reduced or eliminated prior to disbursement of $15,000,000,  where  such
reduction  or  elimination  is  not  based upon the disbursement of such
$25,000,000 appropriation, the comptroller is authorized and directed to
transfer, at the request of the director of the division of the  budget,
an  amount  equal  to such reduced or eliminated amount from the general
fund to the New York State energy research  and  development  authority,
not to exceed in the aggregate $25,000,000.
  S  26.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed to  deposit,
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by  the  dormitory  authority  of  the
state  of  New York for a capital appropriation for $215,650,000 author-
ized by chapter 55 of the laws of 2000 to all state agencies for payment
of costs related to the strategic investment program.
  S 27. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit

S. 2607--D                         188                        A. 3007--D

to the credit of the  capital  projects  fund,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $30,174,000 authorized by chapter
55  of  the laws of 2003 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  or  other  financing  source for a capital appropriation of
$19,500,000 authorized by chapter 50 of the laws of 2003 to  the  office
of general services for payment of capital construction costs for the 51
Elk  street  parking  garage  building  located  in  the city of Albany,
reimbursement from the proceeds of notes or bonds issued  by  the  urban
development  corporation for disbursements of up to $10,000,000 from any
capital appropriation or reappropriation authorized by chapter 50 of the
laws of 2003 to the office of general  services  for  various  purposes,
reimbursement from the proceeds of notes or bonds issued by the environ-
mental facilities corporation for a capital appropriation of $13,250,000
authorized  by chapter 55 of the laws of 2003 to the energy research and
development authority for the Western New York Nuclear Service Center at
West Valley, reimbursement from the proceeds of notes or bonds issued by
the dormitory authority for disbursements of up to $16,400,000 from  any
capital appropriation or reappropriation authorized by chapter 51 of the
laws of 2003 to the judiciary for courthouse improvements, reimbursement
from  the  proceeds  of  notes  or bonds issued by the urban development
corporation for disbursements of up to $10,000,000  from  appropriations
or  reappropriations authorized by chapter 50 of the laws of 2003 to any
agency for costs related to homeland security,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $10,000,000 authorized by chapter
55 of the laws of 2003 to the department of  environmental  conservation
for  Onondaga  lake,  reimbursement  from the proceeds of notes or bonds
issued by the environmental facilities corporation for disbursements  of
up  to  $11,000,000  from any capital appropriations or reappropriations
authorized by chapter 55 of the laws of 2003 to the department of  envi-
ronmental  conservation  for  environmental  purposes, and reimbursement
from the proceeds of notes or bonds issued by  the  dormitory  authority
for  disbursements  of  up  to $100,000,000 from a capital appropriation
authorized by chapter 50 of the laws of 2003 to the department of  state
for enhanced 911 wireless service.
  S  28.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation for $28,893,000 authorized by chapter
55 of the laws of 2004 to the department of  environmental  conservation
for payment of a portion of the state's match for federal capitalization
grants  for  the water pollution control revolving loan fund, reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation for disbursements of up  to  $10,000,000  from  any  capital
appropriation or reappropriation authorized by chapter 50 of the laws of
2004  to the office of general services for various purposes, reimburse-
ment from the proceeds of notes or bonds  issued  by  the  environmental
facilities  corporation  for  a  capital  appropriation  of  $11,350,000
authorized by chapter 55 of the laws of 2004 to the energy research  and
development authority for the Western New York Nuclear Service Center at
West Valley, reimbursement from the proceeds of notes or bonds issued by

S. 2607--D                         189                        A. 3007--D

the environmental facilities corporation, for a capital appropriation of
$10,000,000  authorized by chapter 55 of the laws of 2004 to the depart-
ment of environmental conservation for Onondaga lake, reimbursement from
the  proceeds  of  notes or bonds issued by the environmental facilities
corporation for disbursements of up  to  $11,000,000  from  any  capital
appropriations  or reappropriations authorized by chapter 55 of the laws
of 2004 to the department of  environmental  conservation  for  environ-
mental  purposes,  reimbursement  from  the  proceeds  of notes or bonds
issued by  the  dormitory  authority  for  a  capital  appropriation  of
$80,000,000  authorized  by chapter 53 of the laws of 2004 to the educa-
tion  department  for  capital  transition  grants  for  transportation,
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry  authority  for a capital appropriation of $243,325,000 authorized by
chapter 55 of the laws of 2004 for payment of costs related to  economic
development  projects, reimbursement from the proceeds of bonds or notes
issued by the urban development corporation for a capital  appropriation
of  $83,500,000 authorized by chapter 53 of the laws of 2006, as amended
by chapter 108 of the laws of 2006, for payment of costs related to  the
H.  H. Richardson complex and the Darwin Martin House, and reimbursement
from the proceeds of notes or bonds issued by  the  dormitory  authority
for  a  capital appropriation of $345,750,000 authorized by chapter 3 of
the laws of 2004 for the New York state economic development program.
  S 29. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the  capital  projects  fund,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $29,602,000 authorized by chapter
55 of the laws of 2005 to the department of  environmental  conservation
for payment of a portion of the state's match for federal capitalization
grants  for  the water pollution control revolving loan fund, reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation for disbursements of up  to  $10,000,000  from  any  capital
appropriation or reappropriation authorized by chapter 50 of the laws of
2005  to the office of general services for various purposes, reimburse-
ment from the proceeds of notes or bonds  issued  by  the  environmental
facilities  corporation  for  a  capital  appropriation  of  $11,350,000
authorized by chapter 55 of the laws of 2005 to the energy research  and
development authority for the Western New York Nuclear Service Center at
West Valley, reimbursement from the proceeds of notes or bonds issued by
the  environmental facilities corporation for a capital appropriation of
$10,000,000 authorized by chapter 55 of the laws of 2005 to the  depart-
ment of environmental conservation for Onondaga lake, reimbursement from
the  proceeds  of  notes or bonds issued by the environmental facilities
corporation for disbursements of up  to  $11,000,000  from  any  capital
appropriations  or reappropriations authorized by chapter 55 of the laws
of 2005 to the department of  environmental  conservation  for  environ-
mental  purposes,  reimbursement  from  the  proceeds  of notes or bonds
issued by the urban development corporation for a capital  appropriation
of  $350,000,000  authorized  by  chapter 55 of the laws of 2005 for the
Javits center, reimbursement from the proceeds of notes or bonds  issued
by  the  dormitory  authority for a capital appropriation of $89,750,000
authorized by chapter 62 of the laws of 2005 for  regional  development,
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry  authority  for a capital appropriation of $249,000,000 authorized by
chapter  62  of  the  laws  of  2005  for  technology  and  development,
reimbursement  from  the  proceeds of notes or bonds issued by the urban

S. 2607--D                         190                        A. 3007--D

development corporation  for  a  capital  appropriation  of  $48,517,000
authorized  by  chapter  162  of the laws of 2005 for the New York state
economic development program, reimbursement from the proceeds  of  notes
or  bonds  issued  by  the  urban  development corporation for a capital
appropriation of $150,000,000 authorized by chapter 62 of  the  laws  of
2005  for  the  higher  education  facilities  capital  matching  grants
program, reimbursement from the proceeds of notes or bonds issued by the
dormitory authority or other financing source for  a  capital  appropri-
ation  of $4,000,000 authorized by chapter 50 of the laws of 2005 to the
office of general services for payment of capital construction costs for
the Elk street parking garage building located in the  city  of  Albany,
reimbursement  from  the  proceeds of notes or bonds issued by the urban
development corporation  for  a  capital  appropriation  of  $15,000,000
authorized  by  chapter  53  of  the laws of 2005 to the state education
department for payment of capital construction costs for  public  broad-
casting  facilities,  reimbursement  from the proceeds of notes or bonds
issued by the urban development corporation for a capital  appropriation
of $15,700,000 authorized by chapter 50 of the laws of 2005 to the divi-
sion of state police for public protection facilities, and reimbursement
from  the  proceeds  of  notes  or bonds issued by the urban development
corporation for capital disbursements of up to $3,000,000 from any capi-
tal appropriation or reappropriation authorized by  chapter  50  of  the
laws  of  2005 to the division of military and naval affairs for various
purposes.
  S 30. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the  capital  projects  fund,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation for $29,600,000 authorized by chapter
55  of  the laws of 2006 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  for  disbursements  of  up  to $20,000,000 from any capital
appropriation or reappropriation authorized by chapter 50 of the laws of
2006 to the office of general services for various purposes,  reimburse-
ment  from  the  proceeds  of notes or bonds issued by the environmental
facilities  corporation  for  a  capital  appropriation  of  $14,000,000
authorized  by chapter 55 of the laws of 2006 to the energy research and
development authority for the Western New York Nuclear Service Center at
West Valley, reimbursement from the proceeds of notes or bonds issued by
the environmental facilities corporation for a capital appropriation  of
$10,000,000  authorized by chapter 55 of the laws of 2006 to the depart-
ment of environmental conservation for Onondaga lake, reimbursement from
the proceeds of notes or bonds issued by  the  environmental  facilities
corporation  for  disbursements  of  up  to $12,000,000 from any capital
appropriations or reappropriations authorized by chapter 55 of the  laws
of  2006  to  the  department of environmental conservation for environ-
mental purposes, reimbursement from  the  proceeds  of  notes  or  bonds
issued by the urban development corporation for capital disbursements of
up  to  $3,000,000  from  any  capital  appropriation or reappropriation
authorized by chapter 50 of the laws of 2006 to the division of military
and naval affairs for various purposes, reimbursement from the  proceeds
of  notes  or  bonds  issued  by  the  urban development corporation for
disbursements of up to $12,400,000 from  any  capital  appropriation  or
reappropriation  authorized  by  chapter  50  of the laws of 2006 to the

S. 2607--D                         191                        A. 3007--D

division of state police for public protection facilities, reimbursement
from the proceeds of notes or bonds  issued  by  the  urban  development
corporation  for  a  capital appropriation of $117,000,000 authorized by
chapter 50 of the laws of 2006 to all state departments and agencies for
the  purchase  of equipment, reimbursement from the proceeds of notes or
bonds issued by the dormitory authority or the urban development  corpo-
ration  for  all  or a portion of capital appropriations of $603,050,000
authorized by chapter 108 of the laws of 2006 to the  urban  development
corporation  for economic development/other projects, reimbursement from
the proceeds of notes or bonds issued by the  urban  development  corpo-
ration for a capital appropriation of $269,500,000 authorized by chapter
108 of the laws of 2006 to the dormitory authority or the urban develop-
ment  corporation  for economic development projects, reimbursement from
the proceeds of notes or bonds issued by the dormitory authority or  the
urban   development   corporation   for   a   capital  appropriation  of
$201,500,000 authorized by chapter 108 of the laws of 2006 to the  urban
development  corporation for university development projects, reimburse-
ment from the proceeds of notes or bonds issued by the dormitory author-
ity or for a capital appropriation of $143,000,000 authorized by chapter
108 of the laws  of  2006  to  the  urban  development  corporation  for
cultural  facilities  projects, reimbursement from the proceeds of notes
or bonds issued by the dormitory  authority  or  the  urban  development
corporation  for  capital appropriations totaling $60,000,000 authorized
by chapter 108 of the laws of 2006 to the urban development  corporation
for  energy/environmental  projects,  reimbursement from the proceeds of
notes or bonds issued by the dormitory authority or the  urban  develop-
ment  corporation  for a capital appropriation of $20,000,000 authorized
by chapter 108 of the laws of 2006 to the urban development  corporation
for  a  competitive  solicitation for construction of a pilot cellulosic
ethanol refinery, reimbursement from the  proceeds  of  notes  or  bonds
issued  by the urban development corporation for a capital appropriation
of $74,700,000 authorized by chapter 55 of the laws of 2006 to the urban
development corporation for services and expenses related to infrastruc-
ture for a new stadium in Queens  county,  and  reimbursement  from  the
proceeds  of  notes or bonds issued by the urban development corporation
for a capital appropriation of $74,700,000 authorized by chapter  55  of
the  laws  of 2006 to the urban development corporation for services and
expenses related to infrastructure improvements to construct a new park-
ing facility at a new stadium in Bronx county,  reimbursement  from  the
proceeds  of  notes  and  bonds  issued  by the environmental facilities
corporation for a capital  appropriation  of  $5,000,000  authorized  by
chapter  55  of  the laws of 2006 to the environmental facilities corpo-
ration for payment for the pipeline for jobs program, reimbursement from
the proceeds of notes or bonds issued by  the  dormitory  authority  for
capital  disbursements  of  up to $14,000,000 from any capital appropri-
ation or reappropriation authorized by chapter 53 of the  laws  of  2006
for the library construction purpose, reimbursement from the proceeds of
notes or bonds issued by the urban development corporation or the dormi-
tory  authority for an appropriation of $1,200,000 authorized by chapter
53 of the laws of 2006 for the towns of Bristol and  Canandaigua  public
water  systems, reimbursement from the proceeds of notes or bonds issued
by the urban development corporation or the dormitory authority  for  an
appropriation of $5,500,000 authorized by chapter 53 of the laws of 2006
for  Belleayre  mountain  ski center, reimbursement from the proceeds of
notes or bonds issued by the urban development corporation or the dormi-
tory authority for an appropriation of $25,000,000 authorized by chapter

S. 2607--D                         192                        A. 3007--D

53 of the laws of 2006 for the town of Smithtown/Kings Park  psychiatric
center rehabilitation, reimbursement from the proceeds of notes or bonds
issued  by  the urban development corporation or the dormitory authority
for an appropriation of $5,000,000 authorized by chapter 108 of the laws
of  2006 for a state of New York umbilical cord bank, reimbursement from
the proceeds of notes or bonds issued by the  urban  development  corpo-
ration  or  the  dormitory  authority for an appropriation of $5,500,000
authorized by chapter 53 of the laws of 2006 for an  Old  Gore  mountain
ski  bowl  connection, reimbursement from the proceeds of notes or bonds
issued by the urban development corporation or the  dormitory  authority
for  an appropriation of $2,000,000 authorized by chapter 53 of the laws
of 2006 for a Cornell equine drug testing laboratory, reimbursement from
the proceeds of notes or bonds issued by the  urban  development  corpo-
ration  or  the  dormitory  authority for an appropriation of $2,000,000
authorized by chapter 53 of the laws of 2006  for  a  Fredonia  vineyard
laboratory,  reimbursement from the proceeds of notes or bonds issued by
the dormitory authority or the  urban  development  corporation  for  an
appropriation  of  $40,000,000  authorized by chapter 108 of the laws of
2006 for a food testing laboratory, reimbursement from the  proceeds  of
notes  or  bonds  issued  by the New York state thruway authority for an
appropriation of $22,000,000 authorized by chapter 108 of  the  laws  of
2006 to the department of transportation for high speed rail, reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  for  capital  disbursements  of  up to $500,000,000 from an
appropriation authorized by chapter 108 of the laws of 2006 to the urban
development corporation for development of a semiconductor manufacturing
facility, reimbursement from the proceeds of notes or  bonds  issued  by
the  urban  development corporation of up to $150,000,000 from an appro-
priation authorized by chapter 108 of the laws  of  2006  to  the  urban
development  corporation  for  research  and development activities of a
semiconductor manufacturer, and reimbursement from the proceeds of notes
or bonds  issued  by  the  urban  development  corporation  for  capital
disbursements  of  up to $292,385,000 from an appropriation to the urban
development corporation authorized by chapter 108 of the  laws  of  2006
for community revitalization projects.
  S  31.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $29,600,000 authorized by  chapter
55  of  the laws of 2007 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  for  disbursements  of  up  to $20,000,000 from any capital
appropriation or reappropriation authorized by chapter 50 of the laws of
2007 to the office of general services for various purposes,  reimburse-
ment  from  the  proceeds  of notes or bonds issued by the environmental
facilities  corporation  for  a  capital  appropriation  of  $13,500,000
authorized  by chapter 55 of the laws of 2007 to the energy research and
development authority for the Western New York Nuclear Service Center at
West Valley, reimbursement from the proceeds of notes or bonds issued by
the environmental facilities corporation for a capital appropriation  of
$10,000,000  authorized by chapter 55 of the laws of 2007 to the depart-
ment of environmental conservation for Onondaga lake, reimbursement from
the proceeds of notes or bonds issued by  the  environmental  facilities

S. 2607--D                         193                        A. 3007--D

corporation  for  disbursements  of  up  to $12,000,000 from any capital
appropriations or reappropriations authorized by chapter 55 of the  laws
of  2007  to  the  department of environmental conservation for environ-
mental  purposes,  reimbursement  from  the  proceeds  of notes or bonds
issued by the urban development corporation for capital disbursements of
up to $3,000,000  from  any  capital  appropriation  or  reappropriation
authorized by chapter 50 of the laws of 2007 to the division of military
and  naval affairs for various purposes, reimbursement from the proceeds
of notes or bonds  issued  by  the  urban  development  corporation  for
disbursements  from a capital appropriation of $50,000,000 authorized by
chapter 50 of the laws of 2007 to  the  division  of  state  police  for
construction  of  a Troop G facility, reimbursement from the proceeds of
notes or bonds issued by the urban development corporation for disburse-
ments from a capital appropriation of $6,000,000 authorized  by  chapter
50  of the laws of 2007 to the division of state police for construction
of evidence storage facilities, reimbursement from the proceeds of notes
or bonds issued by the dormitory  authority  or  the  urban  development
corporation  for  capital appropriations totaling $77,900,000 authorized
by chapter 51 of the laws of 2007 to the judiciary  for  court  training
facilities  and  courthouse improvement projects, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for  a  capital appropriation of $20,000,000 authorized by chapter 50 of
the laws of 2007 to all state departments and agencies for the  purchase
of  equipment,  reimbursement from the proceeds of notes or bonds issued
by  the  dormitory  authority  for  capital  disbursements  of   up   to
$14,000,000 from any capital appropriation or reappropriation authorized
by  chapter  53 of the laws of 2007 for library construction, reimburse-
ment from the proceeds of notes or bonds issued by the dormitory author-
ity for capital disbursements of up  to  $60,000,000  from  any  capital
appropriation or reappropriation authorized by chapter 53 of the laws of
2007  for  cultural education storage facilities, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for  capital  disbursements of up to $15,000,000 from any capital appro-
priation or reappropriation authorized by chapter 55 of the laws of 2007
for Roosevelt Island Operating Corporation aerial tramway, reimbursement
from the proceeds of notes or bonds  issued  by  the  urban  development
corporation  for  capital  disbursements  of  up to $20,000,000 from any
capital appropriation or reappropriation authorized by chapter 55 of the
laws of 2007 for Governor's Island, reimbursement from the  proceeds  of
notes  or  bonds issued by the urban development corporation for capital
disbursements of up to $7,500,000  from  any  capital  appropriation  or
reappropriation  authorized by chapter 55 of the laws of 2007 for Harri-
man research and technology park, reimbursement  from  the  proceeds  of
notes  or  bonds issued by the urban development corporation for capital
disbursements of up to $7,950,000  from  any  capital  appropriation  or
reappropriation  authorized  by  chapter  55 of the laws of 2007 for USA
Niagara, and reimbursement from the proceeds of notes or bonds issued by
the urban development corporation for capital  disbursements  of  up  to
$1,300,000  from  appropriations authorized by chapter 50 of the laws of
2007 made to the office  of  general  services  for  legislative  office
building hearing rooms.
  S  32.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $29,600,000 authorized by  chapter

S. 2607--D                         194                        A. 3007--D

55  of  the laws of 2008 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  for  a  capital appropriation of $141,000,000 authorized by
chapter 50 of the laws of 2008 to all state departments and agencies for
the purchase of equipment or systems development, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for disbursements of up to $45,500,000 from any capital appropriation or
reappropriation  authorized  by  chapter  50  of the laws of 2008 to the
office of general services for various purposes, reimbursement from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $13,500,000 authorized by chapter
55 of the laws of 2008 to the energy research and development  authority
for  the  Western  New  York  Nuclear  Service  Center  at  West Valley,
reimbursement from the proceeds of notes or bonds issued by the environ-
mental facilities corporation for a capital appropriation of $10,000,000
authorized by chapter 55 of the laws of 2008 to the department of  envi-
ronmental   conservation  for  Onondaga  lake,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for disbursements of up to $12,000,000 from any capital appropri-
ations or reappropriations authorized by chapter 55 of the laws of  2008
to  the  department  of  environmental  conservation  for  environmental
purposes, reimbursement from the proceeds of notes or  bonds  issued  by
the  urban  development  corporation  for capital disbursements of up to
$3,000,000 from any capital appropriation or reappropriation  authorized
by  chapter 50 of the laws of 2008 to the division of military and naval
affairs for various purposes, reimbursement from the proceeds  of  notes
or  bonds  issued  by  the  urban  development corporation for a capital
appropriation of $2,500,000 authorized by chapter 50 of the laws of 2008
to the  office  for  technology  for  activities  related  to  broadband
service, reimbursement from the proceeds of notes or bonds issued by the
urban  development corporation for a capital appropriation of $6,000,000
authorized by chapter 50 of the laws of 2008 to the  division  of  state
police for rehabilitation of facilities, reimbursement from the proceeds
of  notes or bonds issued by the dormitory authority of the state of New
York or other financing source for a capital appropriation authorized by
chapter 53 of the laws of 2008 of $14,000,000 to the  education  depart-
ment  for library construction, reimbursement from the proceeds of notes
or bonds issued by the dormitory authority of the state of New  York  or
other financing source for a capital appropriation authorized by chapter
53  of  the  laws of 2008 of $15,000,000 to the education department for
museum renewal projects, reimbursement from the  proceeds  of  notes  or
bonds  issued by the urban development corporation for capital appropri-
ation of $50,000,000 authorized by chapter 53 of the laws of 2008 to the
urban development corporation for services and expenses related  to  the
investment opportunity fund, reimbursement from the proceeds of notes or
bonds  issued by the urban development corporation for capital appropri-
ation of $18,000,000 authorized by chapter 53 of the laws of 2008 to the
urban development corporation for services and expenses related to  arts
and cultural projects, reimbursement from the proceeds of bonds or notes
issued  by the urban development corporation for a capital appropriation
of $32,148,000 authorized by chapter 53 of the laws of 2008 for economic
and community development projects, reimbursement from the  proceeds  of
bonds or notes issued by the urban development corporation for a capital
appropriation  of  $30,000,000  authorized  by chapter 53 of the laws of

S. 2607--D                         195                        A. 3007--D

2008 for New York city waterfront  development  projects,  reimbursement
from  the  proceeds  of  bonds  or notes issued by the urban development
corporation for a capital appropriation  of  $45,000,000  authorized  by
chapter  53  of  the  laws  of  2008  for  Luther  Forest infrastructure
projects, reimbursement from the proceeds of notes or  bonds  issued  by
the   urban   development   corporation  for  capital  appropriation  of
$35,000,000 authorized by chapter 53 of the laws of 2008  to  the  urban
development  corporation  for services and expenses related to downstate
regional projects, reimbursement from the proceeds  of  notes  or  bonds
issued by the urban development corporation for capital appropriation of
$137,037,000  authorized  by chapter 53 of the laws of 2008 to the urban
development corporation for services and  expenses  related  to  upstate
city-by-city projects, reimbursement from the proceeds of notes or bonds
issued by the urban development corporation for capital appropriation of
$35,000,000  authorized  by  chapter 53 of the laws of 2008 to the urban
development corporation for services and expenses related to  the  down-
state  revitalization projects, reimbursement from the proceeds of notes
or bonds issued by the urban development corporation for capital  appro-
priation of $117,265,000 authorized by chapter 53 of the laws of 2008 to
the  urban  development corporation for services and expenses related to
the upstate regional blueprint fund, reimbursement from the proceeds  of
notes  or  bonds issued by the urban development corporation for capital
appropriation of $25,000,000 authorized by chapter 53  of  the  laws  of
2008  to  the  urban  development  corporation for services and expenses
related  to  the  upstate  agricultural   economic   development   fund,
reimbursement  from  the  proceeds of notes or bonds issued by the urban
development  corporation  for  capital  appropriation  of   $350,000,000
authorized  by  chapter  53 of the laws of 2008 to the urban development
corporation for services and expenses related  to  the  New  York  state
capital  assistance program, reimbursement from the proceeds of notes or
bonds issued by the urban development corporation for capital  appropri-
ation  of  $350,000,000  authorized by chapter 53 of the laws of 2008 to
the urban development corporation for services and expenses  related  to
the   New  York  state  economic  development  assistance  program,  and
reimbursement from the proceeds of notes or bonds issued  by  the  urban
development corporation for capital appropriation of $20,000,000 author-
ized  by  chapter 55 of the laws of 2008 to the urban development corpo-
ration for services and expenses related to the  empire  state  economic
development fund.
  S  33.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $29,600,000 authorized by  chapter
55  of  the laws of 2009 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation  for  a  capital appropriation of $129,800,000 authorized by
chapter 50 of the laws of 2009 to all state departments and agencies for
the purchase of equipment or systems development, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for disbursements of up to $24,000,000 from any capital appropriation or
reappropriation  authorized  by  chapter  50  of the laws of 2009 to the
office of general services for various purposes, reimbursement from  the
proceeds of notes or bonds issued by the environmental facilities corpo-

S. 2607--D                         196                        A. 3007--D

ration  for a capital appropriation of $13,500,000 authorized by chapter
55 of the laws of 2009 to the energy research and development  authority
for  the  Western  New  York  Nuclear  Service  Center  at  West Valley,
reimbursement from the proceeds of notes or bonds issued by the environ-
mental facilities corporation for a capital appropriation of $10,000,000
authorized  by chapter 55 of the laws of 2009 to the department of envi-
ronmental  conservation  for  Onondaga  lake,  reimbursement  from   the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for disbursements of up to $12,000,000 from any capital appropri-
ations  or reappropriations authorized by chapter 55 of the laws of 2009
to  the  department  of  environmental  conservation  for  environmental
purposes,  reimbursement  from  the proceeds of notes or bonds issued by
the urban development corporation for capital  disbursements  of  up  to
$3,000,000  from any capital appropriation or reappropriation authorized
by chapter 50 of the laws of 2009 to the division of military and  naval
affairs  for  various purposes, reimbursement from the proceeds of notes
or bonds issued by the  urban  development  corporation  for  a  capital
appropriation of $6,000,000 authorized by chapter 50 of the laws of 2009
to  the  division  of  state  police  for  rehabilitation of facilities,
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry authority of the state of New York or other financing  source  for  a
capital  appropriation  authorized  by chapter 53 of the laws of 2009 of
$14,000,000 to the state education department for library  construction,
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry  authority  of  the state of New York or other financing source for a
capital appropriation of $4,000,000 to the  state  education  department
for  rehabilitation  associated  with  the  St.  Regis Mohawk elementary
school authorized by chapter 53 of the laws of  2009  and  reimbursement
from  the  proceeds  of  notes  or bonds issued by the urban development
corporation for capital appropriation of $25,000,000 authorized by chap-
ter 55 of the laws of 2009 to  the  urban  development  corporation  for
services  and  expenses related to the empire state economic development
fund.
  S 34. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the  capital  projects  fund,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $29,600,000 authorized by chapter
55 of the laws of 2010 to the department of  environmental  conservation
for payment of a portion of the state's match for federal capitalization
grants  for  the water pollution control revolving loan fund, reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation for a capital appropriation of  $187,285,000  authorized  by
chapter 50 of the laws of 2010 to all state departments and agencies for
the purchase of equipment or systems development, reimbursement from the
proceeds  of  notes or bonds issued by the urban development corporation
for disbursements of up to $26,950,000 from any capital appropriation or
reappropriation authorized by chapter 50 of the  laws  of  2010  to  the
office  of general services for various purposes, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $5,000,000 authorized  by  chapter
55  of  the laws of 2010 to the department of environmental conservation
for Onondaga lake, reimbursement from the proceeds  of  notes  or  bonds
issued  by the environmental facilities corporation for disbursements of
up to $12,000,000 from any capital  appropriations  or  reappropriations
authorized  by chapter 55 of the laws of 2010 to the department of envi-

S. 2607--D                         197                        A. 3007--D

ronmental conservation for environmental  purposes,  reimbursement  from
the  proceeds  of  notes or bonds issued by the urban development corpo-
ration for capital disbursements of up to $3,000,000  from  any  capital
appropriation or reappropriation authorized by chapter 50 of the laws of
2010 to the division of military and naval affairs for various purposes,
reimbursement  from  the  proceeds of notes or bonds issued by the urban
development  corporation  for  a  capital  appropriation  of  $6,000,000
authorized  by  chapter  50 of the laws of 2010 to the division of state
police for rehabilitation of facilities, reimbursement from the proceeds
of notes or bonds issued by the dormitory authority of the state of  New
York   or   other  financing  source  for  a  capital  appropriation  of
$14,000,000 authorized by chapter 53 of the laws of 2010  to  the  state
education  department  for library construction, reimbursements from the
proceeds of notes or bonds issued by  the  dormitory  authority  of  the
state  of New York or other financing source for a capital appropriation
of $20,400,000 authorized by chapter 100 of the  laws  of  2010  to  the
state   education  department  for  the  longitudinal  data  system  and
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry authority of the state of New York or other financing  source  for  a
capital  appropriation  of  $42,000,000  for  the state preparedness and
training center.
  S 35. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the  capital  projects  fund,  reimbursement  from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration  for a capital appropriation of $35,000,000 authorized by a chap-
ter of the laws of 2011 to the department of environmental  conservation
for payment of a portion of the state's match for federal capitalization
grants  for  the water pollution control revolving loan fund, reimburse-
ment from the proceeds of notes or bonds issued by the urban development
corporation for a capital appropriation of $92,751,000 authorized  by  a
chapter  of  the  laws of 2011 to all state departments and agencies for
the purchase of equipment or systems development, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for disbursements of up to $40,000,000 from any capital appropriation or
reappropriation  authorized  by  a  chapter  of  the laws of 2011 to the
office of general services for various purposes, reimbursement from  the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for disbursements of up to $12,000,000 from any capital appropri-
ations  or  reappropriations authorized by a chapter of the laws of 2011
to  the  department  of  environmental  conservation  for  environmental
purposes,  reimbursement  from  the proceeds of notes or bonds issued by
the urban development corporation for capital  disbursements  of  up  to
$3,000,000  from any capital appropriation or reappropriation authorized
by a chapter of the laws of 2011 to the division of military  and  naval
affairs  for  various purposes, reimbursement from the proceeds of notes
or bonds issued by the  urban  development  corporation  for  a  capital
appropriation  of $6,000,000 authorized by a chapter of the laws of 2011
to the division  of  state  police  for  rehabilitation  of  facilities,
reimbursement from the proceeds of notes or bonds issued by the dormito-
ry  authority  of  the state of New York or other financing source for a
capital appropriation of $14,000,000 authorized by a chapter of the laws
of 2011 to the state  education  department  for  library  construction,
reimbursement  from  the  proceeds of notes or bonds issued by the urban
development  corporation  for  capital  appropriation  of   $130,550,000
authorized  by  a  chapter  of the laws of 2011 to the urban development

S. 2607--D                         198                        A. 3007--D

corporation for services and expenses related to the  regional  economic
development council initiative, reimbursement from the proceeds of notes
or  bonds issued by the urban development corporation for capital appro-
priation  of  $50,000,000 authorized by a chapter of the laws of 2011 to
the urban development corporation for services and expenses  related  to
the  economic  transformation program.  Reimbursements from the proceeds
of notes or bonds  issued  by  the  urban  development  corporation  for
disbursements  of  up  to  $40,000,000 from any capital appropriation or
reappropriation authorized by a chapter of  the  laws  of  2011  to  the
office of general services for various purposes.
  S  36.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $35,000,000 authorized by a  chap-
ter  of the laws of 2012 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment  from  the  proceeds  of notes or bonds issued by the environmental
facilities corporation for disbursements of up to $12,000,000  from  any
capital  appropriations  or  reappropriations authorized by a chapter of
the laws of 2012 to the department  of  environmental  conservation  for
environmental  purposes,  reimbursement  from  the  proceeds of notes or
bonds issued by the urban development corporation for capital  disburse-
ments  of up to $3,000,000 from any capital appropriation or reappropri-
ation authorized by a chapter of the laws of 2012  to  the  division  of
military  and naval affairs for various purposes, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for a capital appropriation of $6,000,000 authorized by a chapter of the
laws  of  2012  to  the  division  of state police for rehabilitation of
facilities, reimbursement from the proceeds of notes or bonds issued  by
the  dormitory  authority  of  the  state of New York or other financing
source for a capital appropriation of $14,000,000 authorized by a  chap-
ter  of  the  laws of 2012 to the state education department for library
construction, reimbursement from the proceeds of notes or  bonds  issued
by the thruway authority, the dormitory authority and the urban develop-
ment  corporation for a capital appropriation of $770,000,000 authorized
by chapter 54 of the laws of 2012  to  the  metropolitan  transportation
authority for various purposes, reimbursement from the proceeds of notes
or  bonds issued by the thruway authority for a capital appropriation of
$15,000,000 authorized by chapter 54 of the laws of 2012 to the  depart-
ment  of  transportation  for  improvement  of  the  peace bridge plaza,
reimbursement from the proceeds of notes or bonds issued  by  the  urban
development  corporation  for  a  capital  appropriation of $130,000,000
authorized by a chapter of the laws of 2012  to  the  urban  development
corporation  for  services and expenses related to the regional economic
development council initiative, reimbursement from the proceeds of notes
or bonds issued by the  urban  development  corporation  for  a  capital
appropriation of $75,000,000 authorized by a chapter of the laws of 2012
to  the  urban development corporation for services and expenses related
to the New York works economic development fund, reimbursement from  the
proceeds  of  notes or bonds issued by the urban development corporation
for a capital appropriation of $75,000,000 authorized by  a  chapter  of
the  laws  of 2012 to the urban development corporation for services and
expenses related to the buffalo regional innovation cluster,  reimburse-
ment from the proceeds of notes or bonds issued by the urban development

S. 2607--D                         199                        A. 3007--D

corporation  for a capital appropriation of $250,000,000 authorized by a
chapter of the laws of 2012 to the  urban  development  corporation  for
services  and  expenses  related  to  the  state  university of New York
college  for  nanoscale  and science engineering project, reimbursements
from the proceeds of notes or bonds  issued  by  the  urban  development
corporation  for  disbursements  of  up  to $26,000,000 from any capital
appropriation or reappropriation authorized by a chapter of the laws  of
2012 to the office of general services for various purposes.
  S  37.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the environmental facilities corpo-
ration for a capital appropriation of $35,000,000 authorized by a  chap-
ter  of the laws of 2013 to the department of environmental conservation
for payment of a portion of the state's match for federal capitalization
grants for the water pollution control revolving loan  fund,  reimburse-
ment  from  the  proceeds  of notes or bonds issued by the environmental
facilities corporation for disbursements of up to $12,000,000  from  any
capital  appropriations  or  reappropriations authorized by a chapter of
the laws of 2013 to the department  of  environmental  conservation  for
environmental  purposes,  reimbursement  from  the  proceeds of notes or
bonds issued by the urban development corporation for capital  disburse-
ments  of up to $3,000,000 from any capital appropriation or reappropri-
ation authorized by a chapter of the laws of 2013  to  the  division  of
military  and naval affairs for various purposes, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for a capital appropriation of $7,000,000 authorized by a chapter of the
laws  of  2013  to  the  division  of state police for rehabilitation of
facilities, reimbursement from the proceeds of notes or bonds issued  by
the  urban  development  corporation  for  a  capital  appropriation  of
$12,500,000 authorized by a chapter of the laws of 2013 to the  division
of  state police for aviation equipment, reimbursement from the proceeds
of notes or bonds issued by the dormitory authority of the state of  New
York   or   other  financing  source  for  a  capital  appropriation  of
$14,000,000 authorized by a chapter of the laws of  2013  to  the  state
education  department  for  library construction, reimbursement from the
proceeds of notes or bonds issued by the urban  development  corporation
for  a  capital appropriation of $150,000,000 authorized by a chapter of
the laws of 2013 to the urban development corporation for  services  and
expenses  related  to  the  regional economic development council initi-
ative, reimbursement from the proceeds of notes or bonds issued  by  the
urban development corporation for a capital appropriation of $75,000,000
authorized  by  a  chapter  of the laws of 2013 to the urban development
corporation for services and expenses related to  the  buffalo  regional
innovation  cluster,  reimbursement  from the proceeds of notes or bonds
issued by the urban development corporation for a capital  appropriation
of  $2,166,000  authorized by a chapter of the laws of 2013 to the urban
development  corporation  for  services  and  expenses  related  to  the
retention  of  professional football in Western New York, reimbursements
from the proceeds of notes or bonds  issued  by  the  urban  development
corporation  for  a capital appropriation of $12,000,000 authorized by a
chapter of the laws of 2013 to the  urban  development  corporation  for
services  and  expenses related to the empire state economic development
fund, reimbursements from the proceeds of notes or bonds issued  by  the
urban  development  corporation  for  disbursements of up to $26,000,000
from any capital appropriation or reappropriation authorized by a  chap-

S. 2607--D                         200                        A. 3007--D

ter  of  the  laws of 2013 to the office of general services for various
purposes, reimbursement from the proceeds of notes or  bonds  issued  by
the  urban  development  corporation  for  a  capital  appropriation  of
$53,891,000  authorized  by  a  chapter of the laws of 2013 to the urban
development corporation for services and  expenses  related  to  capital
improvements at Ralph Wilson Stadium, reimbursement from the proceeds of
notes  or  bonds issued by the thruway authority for a capital appropri-
ation of $155,000,000 authorized by a chapter of the laws of 2013 to the
department  of  transportation  for  highway  infrastructure   projects,
reimbursement  from the proceeds of notes or bonds issued by the thruway
authority for a capital appropriation of  $45,000,000  authorized  by  a
chapter  of  the  laws  of  2013 to the department of transportation for
engineering purposes, reimbursement from the proceeds of notes or  bonds
issued   by   the   thruway  authority  for  capital  appropriations  of
$10,000,000, $10,000,000 and $5,000,000 authorized by a chapter  of  the
laws  of 2013 to the department of transportation for aviation projects,
non-MTA transit projects, and rail service preservation projects.
  S 38. For purposes of sections twenty-six through thirty-seven of this
act, the comptroller is also hereby authorized and directed  to  deposit
to  the  credit  of  any  capital  projects fund, reimbursement from the
proceeds of bonds and notes issued by any authorized issuer, as  defined
by  sections  68-a and 69-m of the state finance law, in the amounts and
for the purposes listed in such sections.
  S 39. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the  state  university  residence  hall  rehabilitation
fund,  reimbursement  from  the proceeds of notes or bonds issued by the
dormitory authority of the state of New York for  capital  disbursements
of  up to $331,000,000 from any appropriation or reappropriation author-
ized by a chapter of the laws of 2013.
  S 40. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the city university special revenue fund, reimbursement
from the proceeds of notes or bonds issued by the Dormitory Authority of
the State of New York for capital disbursements  of  up  to  $20,000,000
from  any  appropriation  or reappropriation authorized by chapter 53 of
the laws of 2009  to  the  city  university  of  New  York  for  various
purposes.
  S  41.  Notwithstanding  any  other  law,  rule,  or regulation to the
contrary, the state comptroller is hereby authorized and directed to use
any balance remaining in the mental health services  fund  debt  service
appropriation, after payment by the state comptroller of all obligations
required pursuant to any lease, sublease, or other financing arrangement
between the dormitory authority of the state of New York as successor to
the  New  York  state  medical  care  facilities finance agency, and the
facilities development corporation pursuant to chapter 83 of the laws of
1995 and the department of mental hygiene  for  the  purpose  of  making
payments  to  the  dormitory  authority of the state of New York for the
amount of the earnings for the investment of  monies  deposited  in  the
mental health services fund that such agency determines will or may have
to  be  rebated  to the federal government pursuant to the provisions of
the internal revenue code of 1986, as amended, in order to  enable  such
agency  to  maintain  the  exemption from federal income taxation on the
interest paid to the holders of such agency's mental services facilities
improvement revenue bonds. On or before June 30, 2013, such agency shall
certify to the  state  comptroller  its  determination  of  the  amounts

S. 2607--D                         201                        A. 3007--D

received  in  the mental health services fund as a result of the invest-
ment of monies deposited therein that will or may have to be rebated  to
the federal government pursuant to the provisions of the internal reven-
ue code of 1986, as amended.
  S  42.  (1)  Notwithstanding any other law, rule, or regulation to the
contrary, the state comptroller shall at the commencement of each  month
certify to the director of the budget, the commissioner of environmental
conservation,  the  chair of the senate finance committee, and the chair
of the assembly ways and means committee the amounts disbursed from  all
appropriations  for  hazardous  waste site remediation disbursements for
the month preceding such certification.
  (2) Notwithstanding any law to the contrary, prior to the issuance  by
the comptroller of bonds authorized pursuant to subdivision a of section
4  of the environmental quality bond act of nineteen hundred eighty-six,
as enacted by chapter 511 of the laws of 1986,  disbursements  from  all
appropriations  for  that  purpose shall first be reimbursed from moneys
credited to the hazardous waste remedial fund,  site  investigation  and
construction  account,  to  the  extent  moneys  are  available  in such
account. For purposes of determining moneys available in  such  account,
the  commissioner  of  environmental  conservation  shall certify to the
comptroller the amounts required for  administration  of  the  hazardous
waste remedial program.
  (3)  The comptroller is hereby authorized and directed to transfer any
balance above the amounts certified by the commissioner of environmental
conservation to reimburse disbursements pursuant to  all  appropriations
from  such site investigation and construction account; provided, howev-
er, that if such transfers are  determined  by  the  comptroller  to  be
insufficient  to  assure  that  interest  paid to holders of state obli-
gations issued for hazardous waste purposes  pursuant  to  the  environ-
mental  quality  bond  act of nineteen hundred eighty-six, as enacted by
chapter 511 of the laws of 1986, is exempt from federal income taxation,
the comptroller is hereby authorized and directed to transfer, from such
site investigation and construction account to  the  general  fund,  the
amount  necessary  to  redeem bonds in an amount necessary to assure the
continuation of such tax exempt status. Prior to the making of any  such
transfers,  the  comptroller  shall notify the director of the budget of
the amount of such transfers.
  S 43. Subdivision 2 of section 68-a  of  the  state  finance  law,  as
amended  by  section  36 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  2. "Authorized purpose" for purposes of this article and section nine-
ty-two-z of this chapter shall mean any purposes  for  which  state-sup-
ported debt, as defined by section sixty-seven-a of this chapter, may or
has  been  issued  except  debt  for which the state is constitutionally
obligated thereunder to pay debt  service  and  related  expenses[,  and
except  (a) as authorized in paragraph (b) of subdivision one of section
three hundred eighty-five of the public authorities law, (b) as  author-
ized for the department of health of the state of New York facilities as
specified  in  paragraph a of subdivision two of section sixteen hundred
eighty of the public authorities law, (c) state university of  New  York
dormitory  facilities  as  specified  in  subdivision  eight  of section
sixteen hundred seventy-eight of the public authorities law, and (d)  as
authorized  for  mental  health services facilities by section nine-a of
section one of chapter three hundred ninety-two of the laws of  nineteen
hundred  seventy-three  constituting  the  New  York  state medical care
facilities financing act. Notwithstanding the provisions of  clause  (d)

S. 2607--D                         202                        A. 3007--D

of  this  subdivision,  for  the  period  April first, two thousand nine
through  March  thirty-first,  two  thousand  thirteen,  mental   health
services  facilities,  as authorized by section nine-a of section one of
chapter  three hundred ninety-two of the laws of nineteen hundred seven-
ty-three constituting the New York state medical care facilities financ-
ing act, shall constitute an authorized purpose].
  S 44. Subdivision 8 of section 68-b  of  the  state  finance  law,  as
amended  by  section 35 of part BB of chapter 58 of the laws of 2011, is
amended to read as follows:
  8. Revenue bonds may  only  be  issued  for  authorized  purposes,  as
defined  in  section  sixty-eight-a of this article. Notwithstanding the
foregoing, the dormitory authority of the state  of  New  York  and  the
urban development corporation may issue revenue bonds for any authorized
purpose  of any other such authorized issuer through March thirty-first,
two thousand [thirteen] FIFTEEN.  The authorized issuers shall not issue
any revenue bonds in an amount in excess of statutory authorizations for
such authorized purposes. Authorizations for  such  authorized  purposes
shall  be  reduced  in  an  amount  equal to the amount of revenue bonds
issued for such authorized purposes under this article.  Such  reduction
shall  not  be  made in relation to revenue bonds issued to fund reserve
funds, if any, and costs of issuance, if these  items  are  not  counted
under  existing authorizations, nor shall revenue bonds issued to refund
bonds issued under existing authorizations reduce  the  amount  of  such
authorizations.
  S  45. Subdivision 5 of section 3234 of the public authorities law, as
amended by section 54 of part K of chapter 81 of the laws  of  2002,  is
amended to read as follows:
  5.  A  majority  of the whole number of directors then in office shall
constitute a quorum for the transaction of any business or the  exercise
of  any  power of the corporation. Except as otherwise specified in this
title, for the transaction of any business or the exercise of any  power
of the corporation, the corporation shall have power to act by a majori-
ty  of  the  directors  present  at  any meeting at which a quorum is in
attendance; provided that one or more directors  may  participate  in  a
meeting  by  means  of  conference  telephone  or similar communications
equipment allowing all directors participating in the  meeting  to  hear
each  other  at  the  same  time  and  participation by such means shall
constitute presence in person at a meeting.  A  unanimous  vote  of  all
directors  THEN IN OFFICE shall be required for approval of a resolution
authorizing the issuance of bonds or notes or any supplemental or  amen-
datory  resolution.   The corporation may delegate to one or more of its
directors, or officers, agents and employees, such powers and duties  as
the  directors  may deem proper. Five days notice shall be given to each
director and nonvoting representative prior to any meeting of the corpo-
ration.
  S 46. Section 1 of chapter 174 of the laws of 1968,  constituting  the
New York state urban development corporation act, is amended by adding a
new section 46 to read as follows:
  S  46.  1.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY OTHER LAW TO THE
CONTRARY, THE DORMITORY AUTHORITY AND THE CORPORATION ARE HEREBY AUTHOR-
IZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES FOR  THE  PURPOSE  OF
FUNDING PROJECT COSTS FOR RESTORING STATE PROPERTIES DAMAGED AS A RESULT
OF  STORM  SANDY  AND  OTHER  STATE  COSTS  ASSOCIATED WITH SUCH CAPITAL
PROJECTS. THE AGGREGATE PRINCIPAL  AMOUNT  OF  BONDS  AUTHORIZED  TO  BE
ISSUED  PURSUANT  TO  THIS  SECTION  SHALL NOT EXCEED FOUR HUNDRED FIFTY
MILLION DOLLARS, EXCLUDING BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE

S. 2607--D                         203                        A. 3007--D

RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF  SUCH  BONDS,  AND  BONDS  OR
NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY
ISSUED.  SUCH  BONDS AND NOTES OF THE DORMITORY AUTHORITY AND THE CORPO-
RATION  SHALL  NOT  BE  A  DEBT OF THE STATE, AND THE STATE SHALL NOT BE
LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY  FUNDS  OTHER  THAN
THOSE  APPROPRIATED  BY  THE  STATE  TO  THE DORMITORY AUTHORITY AND THE
CORPORATION FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT TO  A
SERVICE  CONTRACT  AND  SUCH  BONDS  AND NOTES SHALL CONTAIN ON THE FACE
THEREOF A STATEMENT TO SUCH EFFECT. EXCEPT  FOR  PURPOSES  OF  COMPLYING
WITH  THE  INTERNAL  REVENUE  CODE,  ANY  INTEREST INCOME EARNED ON BOND
PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IN
ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE CORPORATION IN UNDERTAK-
ING  THE  FINANCING  FOR  PROJECT  COSTS  FOR RESTORING STATE PROPERTIES
DAMAGED AS A RESULT OF STORM SANDY AND OTHER STATE COSTS ASSOCIATED WITH
SUCH CAPITAL PROJECTS, THE DIRECTOR OF THE BUDGET IS  HEREBY  AUTHORIZED
TO ENTER INTO ONE OR MORE SERVICE CONTRACTS WITH THE DORMITORY AUTHORITY
AND  THE  CORPORATION,  NONE OF WHICH SHALL EXCEED THIRTY YEARS IN DURA-
TION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE  BUDGET  AND
THE  DORMITORY  AUTHORITY  AND  THE CORPORATION AGREE, SO AS TO ANNUALLY
PROVIDE TO THE DORMITORY AUTHORITY AND THE CORPORATION,  IN  THE  AGGRE-
GATE,  A SUM NOT TO EXCEED THE PRINCIPAL, INTEREST, AND RELATED EXPENSES
REQUIRED FOR SUCH BONDS AND NOTES. ANY  SERVICE  CONTRACT  ENTERED  INTO
PURSUANT  TO THIS SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE
TO PAY THE AMOUNT THEREIN PROVIDED SHALL NOT CONSTITUTE A  DEBT  OF  THE
STATE  WITHIN  THE  MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION
AND SHALL BE DEEMED EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND
THAT NO LIABILITY SHALL BE INCURRED  BY  THE  STATE  BEYOND  THE  MONIES
AVAILABLE  FOR  SUCH  PURPOSE,  SUBJECT  TO  ANNUAL APPROPRIATION BY THE
LEGISLATURE. ANY SUCH CONTRACT OR ANY PAYMENTS MADE OR TO BE MADE THERE-
UNDER MAY BE ASSIGNED AND PLEDGED BY THE  DORMITORY  AUTHORITY  AND  THE
CORPORATION  AS  SECURITY FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS
SECTION.
  3. THE COMPTROLLER IS HEREBY AUTHORIZED TO RECEIVE FROM THE  DORMITORY
AUTHORITY  AND  THE  CORPORATION  ANY  PORTION  OF BOND PROCEEDS PAID TO
PROVIDE FUNDS FOR OR REIMBURSE THE STATE FOR ITS COSTS  ASSOCIATED  WITH
SUCH  CAPITAL  PROJECT  COSTS  AND TO CREDIT SUCH AMOUNTS TO THE CAPITAL
PROJECTS FUND OR ANY OTHER APPROPRIATE FUND.
  S 47. Section 1 of chapter 174 of the laws of 1968,  constituting  the
New York state urban development corporation act, is amended by adding a
new section 47 to read as follows:
  S  47.  1.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY OTHER LAW TO THE
CONTRARY, THE DORMITORY AUTHORITY AND THE CORPORATION ARE HEREBY AUTHOR-
IZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES FOR  THE  PURPOSE  OF
FUNDING  PROJECT COSTS FOR THE OFFICE OF INFORMATION TECHNOLOGY SERVICES
AND OTHER STATE COSTS ASSOCIATED WITH SUCH CAPITAL PROJECTS. THE  AGGRE-
GATE  PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO BE ISSUED PURSUANT TO THIS
SECTION SHALL NOT EXCEED EIGHTY-SEVEN MILLION SEVEN HUNDRED FORTY  THOU-
SAND  DOLLARS,  EXCLUDING  BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE
RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF  SUCH  BONDS,  AND  BONDS  OR
NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY
ISSUED.  SUCH  BONDS AND NOTES OF THE DORMITORY AUTHORITY AND THE CORPO-
RATION SHALL NOT BE A DEBT OF THE STATE, AND  THE  STATE  SHALL  NOT  BE
LIABLE  THEREON,  NOR  SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN
THOSE APPROPRIATED BY THE STATE  TO  THE  DORMITORY  AUTHORITY  AND  THE
CORPORATION  FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT TO A

S. 2607--D                         204                        A. 3007--D

SERVICE CONTRACT AND SUCH BONDS AND NOTES  SHALL  CONTAIN  ON  THE  FACE
THEREOF  A  STATEMENT  TO  SUCH EFFECT. EXCEPT FOR PURPOSES OF COMPLYING
WITH THE INTERNAL REVENUE CODE,  ANY  INTEREST  INCOME  EARNED  ON  BOND
PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
  2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, IN
ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE CORPORATION IN UNDERTAK-
ING THE FINANCING FOR PROJECT COSTS FOR THE OFFICE OF INFORMATION  TECH-
NOLOGY  SERVICES  AND  OTHER  STATE  COSTS  ASSOCIATED WITH SUCH CAPITAL
PROJECTS, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER  INTO
ONE  OR  MORE  SERVICE  CONTRACTS  WITH  THE DORMITORY AUTHORITY AND THE
CORPORATION, NONE OF WHICH SHALL EXCEED THIRTY YEARS IN  DURATION,  UPON
SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND THE DORMITO-
RY AUTHORITY AND THE CORPORATION AGREE, SO AS TO ANNUALLY PROVIDE TO THE
DORMITORY  AUTHORITY AND THE CORPORATION, IN THE AGGREGATE, A SUM NOT TO
EXCEED THE PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED  FOR  SUCH
BONDS  AND  NOTES.  ANY  SERVICE  CONTRACT ENTERED INTO PURSUANT TO THIS
SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT
THEREIN PROVIDED SHALL NOT CONSTITUTE A DEBT OF  THE  STATE  WITHIN  THE
MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED
EXECUTORY  ONLY  TO THE EXTENT OF MONIES AVAILABLE AND THAT NO LIABILITY
SHALL BE INCURRED BY THE STATE BEYOND  THE  MONIES  AVAILABLE  FOR  SUCH
PURPOSE,  SUBJECT  TO  ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH
CONTRACT OR ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY  BE  ASSIGNED
AND  PLEDGED  BY THE DORMITORY AUTHORITY AND THE CORPORATION AS SECURITY
FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS SECTION.
  3. THE COMPTROLLER IS HEREBY AUTHORIZED TO RECEIVE FROM THE  DORMITORY
AUTHORITY  AND  THE  CORPORATION  ANY  PORTION  OF BOND PROCEEDS PAID TO
PROVIDE FUNDS FOR OR REIMBURSE THE STATE FOR ITS COSTS  ASSOCIATED  WITH
SUCH  CAPITAL  PROJECT  COSTS  AND TO CREDIT SUCH AMOUNTS TO THE CAPITAL
PROJECTS FUND OR ANY OTHER APPROPRIATE FUND.
  S 48. Subdivision (a) of section 28 of part Y of  chapter  61  of  the
laws  of  2005,  relating to providing for the administration of certain
funds and accounts related  to  the  2005-2006  budget,  as  amended  by
section  39  of  part U of chapter 59 of the laws of 2012, is amended to
read as follows:
  (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
notwithstanding  any  provisions  of  law  to  the contrary, one or more
authorized issuers as defined by section 68-a of the state  finance  law
are  hereby  authorized to issue bonds or notes in one or more series in
an aggregate principal amount not to exceed  [$24,000,000]  $27,000,000,
excluding  bonds  issued  to  finance  one  or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued,  for
the  purpose of financing capital projects for public protection facili-
ties in the Division of Military and Naval  Affairs,  debt  service  and
leases;  and  to reimburse the state general fund for disbursements made
therefor. Such bonds and notes of such authorized issuer shall not be  a
debt  of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those  appropriated  by  the
state  to  such  authorized issuer for debt service and related expenses
pursuant to any service contract executed pursuant to subdivision (b) of
this section and such bonds and notes shall contain on the face  thereof
a  statement  to  such effect. Except for purposes of complying with the
internal revenue code, any interest income earned on bond proceeds shall
only be used to pay debt service on such bonds.

S. 2607--D                         205                        A. 3007--D

  S 49. Subdivision 1 of section 16 of part D of chapter 389 of the laws
of 1997, relating  to  the  financing  of  the  correctional  facilities
improvement  fund and the youth facility improvement fund, as amended by
section 40 of part U of chapter 59 of the laws of 2012,  is  amended  to
read as follows:
  1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes  and  other  obligations  in  an
aggregate principal amount not to exceed [six] SEVEN billion [eight] ONE
hundred  [sixteen] THIRTY-THREE million [eight hundred] sixty-nine thou-
sand dollars [$6,816,869,000]  $7,133,069,000,  and  shall  include  all
bonds,  notes and other obligations issued pursuant to chapter 56 of the
laws of 1983, as amended or supplemented. The proceeds  of  such  bonds,
notes  or  other  obligations shall be paid to the state, for deposit in
the correctional facilities capital improvement fund to pay for  all  or
any  portion  of  the amount or amounts paid by the state from appropri-
ations or reappropriations made to the  department  of  corrections  and
community  supervision from the correctional facilities capital improve-
ment fund for capital projects. The aggregate amount of bonds, notes  or
other obligations authorized to be issued pursuant to this section shall
exclude  bonds, notes or other obligations issued to refund or otherwise
repay bonds, notes or other obligations theretofore issued, the proceeds
of which were paid to the state for all or  a  portion  of  the  amounts
expended  by  the  state from appropriations or reappropriations made to
the department  of  corrections  and  community  supervision;  provided,
however,  that  upon any such refunding or repayment the total aggregate
principal amount of outstanding bonds, notes or other obligations may be
greater  than  [six]  SEVEN  billion  [eight]  ONE   hundred   [sixteen]
THIRTY-THREE   million   [eight  hundred]  sixty-nine  thousand  dollars
[$6,816,869,000] $7,133,069,000, only if the present value of the aggre-
gate debt service of the refunding or repayment bonds,  notes  or  other
obligations  to  be  issued  shall  not  exceed the present value of the
aggregate debt service of the bonds, notes or other obligations so to be
refunded or repaid. For the purposes hereof, the present  value  of  the
aggregate  debt  service  of  the refunding or repayment bonds, notes or
other obligations and of the aggregate debt service of the bonds,  notes
or  other  obligations  so  refunded  or  repaid, shall be calculated by
utilizing the effective interest rate  of  the  refunding  or  repayment
bonds,  notes  or other obligations, which shall be that rate arrived at
by doubling the semi-annual  interest  rate  (compounded  semi-annually)
necessary  to  discount  the  debt  service payments on the refunding or
repayment bonds, notes or other obligations from the payment dates ther-
eof to the date of issue of the refunding or repayment bonds,  notes  or
other  obligations  and  to  the  price  bid including estimated accrued
interest or proceeds received by  the  corporation  including  estimated
accrued interest from the sale thereof.
  S  50.  Paragraph  (a) of subdivision 2 of section 47-e of the private
housing finance law, as amended by section 41 of part U of chapter 59 of
the laws of 2012, is amended to read as follows:
  (a) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, in order to enhance and encourage  the  promotion  of  housing
programs  and thereby achieve the stated purposes and objectives of such
housing programs, the agency shall have the power and is hereby  author-
ized  from  time  to  time to issue negotiable housing program bonds and
notes in such principal amount as shall be necessary to  provide  suffi-

S. 2607--D                         206                        A. 3007--D

cient  funds  for the repayment of amounts disbursed (and not previously
reimbursed) pursuant to law or any prior year making  capital  appropri-
ations  or  reappropriations  for  the  purposes of the housing program;
provided,  however, that the agency may issue such bonds and notes in an
aggregate principal amount  not  exceeding  two  billion  [seven]  EIGHT
hundred [forty] FORTY-FOUR million [six] EIGHT hundred ninety-nine thou-
sand  dollars,  plus a principal amount of bonds issued to fund the debt
service reserve fund in accordance with the debt  service  reserve  fund
requirement  established  by  the  agency and to fund any other reserves
that the agency reasonably deems necessary for the security or  marketa-
bility  of  such  bonds and to provide for the payment of fees and other
charges and expenses,  including  underwriters'  discount,  trustee  and
rating  agency  fees,  bond  insurance, credit enhancement and liquidity
enhancement related to the issuance of such bonds and notes. No  reserve
fund securing the housing program bonds shall be entitled or eligible to
receive  state  funds apportioned or appropriated to maintain or restore
such reserve fund at or to a particular level, except to the  extent  of
any  deficiency  resulting  directly or indirectly from a failure of the
state to appropriate or pay the agreed amount under any of the contracts
provided for in subdivision four of this section.
  S 51. Subdivision (b) of section 11 of chapter  329  of  the  laws  of
1991,  amending  the  state  finance  law and other laws relating to the
establishment of the dedicated highway and bridge trust fund, as amended
by section 42 of part U of chapter 59 of the laws of 2012, is amended to
read as follows:
  (b) Any service contract or contracts for projects authorized pursuant
to sections 10-c, 10-f, 10-g and 80-b of the  highway  law  and  section
14-k of the transportation law, and entered into pursuant to subdivision
(a)  of  this  section,  shall  provide for state commitments to provide
annually to the thruway authority a sum or sums,  upon  such  terms  and
conditions as shall be deemed appropriate by the director of the budget,
to fund, or fund the debt service requirements of any bonds or any obli-
gations  of  the thruway authority issued to fund such projects having a
cost not in excess of [$7,106,022,000]  $7,591,875,000  cumulatively  by
the end of fiscal year [2012-13] 2013-14.
  S  52.  Subdivision 1 of section 1689-i of the public authorities law,
as amended by section 50 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  1. The dormitory authority  is  authorized  to  issue  bonds,  at  the
request  of  the  commissioner of education, to finance eligible library
construction projects pursuant to section two hundred seventy-three-a of
the education law, in amounts certified  by  such  commissioner  not  to
exceed  a  total  principal  amount of [ninety-eight] ONE HUNDRED TWELVE
million dollars.
  S 53. Subdivision (a) of section 27 of part Y of  chapter  61  of  the
laws  of  2005,  providing  for  the administration of certain funds and
accounts related to the 2005-2006 budget, as amended by  section  43  of
part  PP  of  chapter  56  of  the  laws  of 2009, is amended to read as
follows:
  (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
notwithstanding  any provisions of law to the contrary, the urban devel-
opment corporation is hereby authorized to issue bonds or notes  in  one
or   more  series  in  an  aggregate  principal  amount  not  to  exceed
[$114,100,000] $133,600,000, excluding bonds issued to  finance  one  or
more debt service reserve funds, to pay costs of issuance of such bonds,
and  bonds  or  notes  issued to refund or otherwise repay such bonds or

S. 2607--D                         207                        A. 3007--D

notes previously issued, for the purpose of financing  capital  projects
for  THE division of state police [facilities], debt service and leases;
and to reimburse the state general fund for disbursements made therefor.
Such  bonds  and  notes of such authorized issuer shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they  be
payable  out  of any funds other than those appropriated by the state to
such authorized issuer for debt service and related expenses pursuant to
any service contract  executed  pursuant  to  subdivision  (b)  of  this
section  and  such  bonds  and notes shall contain on the face thereof a
statement to such effect. Except for  purposes  of  complying  with  the
internal revenue code, any interest income earned on bond proceeds shall
only be used to pay debt service on such bonds.
  S  54.  Section  44  of  section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development  corporation  act,  as
amended  by  section  43 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  S 44. ISSUANCE OF CERTAIN  BONDS  OR  NOTES.  1.  Notwithstanding  the
provisions of any other law to the contrary, the dormitory authority and
the  corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs  for  the  regional
economic  development  council  initiative,  the economic transformation
program, state university of New York college for nanoscale and  science
engineering,  projects  within  the city of Buffalo or surrounding envi-
rons, [and] the New York works economic development fund,  PROJECTS  FOR
THE  RETENTION  OF PROFESSIONAL FOOTBALL IN WESTERN NEW YORK, THE EMPIRE
STATE ECONOMIC DEVLOPMENT FUND, and other state  costs  associated  with
such projects.  The aggregate principal amount of bonds authorized to be
issued  pursuant  to  this  section  shall not exceed [seven hundred ten
million five hundred fifty] ONE BILLION THREE MILLION SIX HUNDRED  SEVEN
thousand  dollars,  excluding  bonds  issued  to  fund  one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes  previ-
ously  issued.  Such  bonds and notes of the dormitory authority and the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any  funds  other  than
those  appropriated  by  the  state  to  the dormitory authority and the
corporation for principal, interest, and related expenses pursuant to  a
service  contract  and  such  bonds  and notes shall contain on the face
thereof a statement to such effect. Except  for  purposes  of  complying
with  the  internal  revenue  code,  any  interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
  2. Notwithstanding any other provision of  law  to  the  contrary,  in
order to assist the dormitory authority and the corporation in undertak-
ing  the  financing for project costs for the regional economic develop-
ment council initiative,  the  economic  transformation  program,  state
university  of  New  York college for nanoscale and science engineering,
projects within the city of Buffalo or surrounding environs  [and],  the
New  York works economic development fund, PROJECTS FOR THE RETENTION OF
PROFESSIONAL FOOTBALL IN WESTERN NEW YORK,  THE  EMPIRE  STATE  ECONOMIC
DEVELOPMENT  FUND,  and other state costs associated with such projects,
the director of the budget is hereby authorized to  enter  into  one  or
more service contracts with the dormitory authority and the corporation,
none of which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the  corporation  agree,  so  as  to  annually  provide to the dormitory
authority and the corporation, in the aggregate, a sum not to exceed the

S. 2607--D                         208                        A. 3007--D

principal, interest, and related expenses required for  such  bonds  and
notes.  Any service contract entered into pursuant to this section shall
provide that the obligation of the  state  to  pay  the  amount  therein
provided  shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed  executory
only  to  the  extent of monies available and that no liability shall be
incurred by the state beyond the  monies  available  for  such  purpose,
subject to annual appropriation by the legislature. Any such contract or
any  payments  made or to be made thereunder may be assigned and pledged
by the dormitory authority and the corporation as security for its bonds
and notes, as authorized by this section.
  S 55. Subdivisions 1 and 3 of section 1285-p of the public authorities
law,subdivision 1 as amended by section 21 of part II of chapter  59  of
the laws of 2004 and subdivision 3 as amended by section 38 of part U of
chapter 59 of the laws of 2012, are amended to read as follows:
  1.  Subject  to  chapter  fifty-nine  of the laws of two thousand, but
notwithstanding any other provisions of law to the contrary, in order to
assist the corporation in undertaking the administration and the financ-
ing of the design, acquisition, construction, improvement, installation,
and related work for all or any portion of any of the following environ-
mental infrastructure projects and for the provision  of  funds  to  the
state  for any amounts disbursed therefor: (a) projects authorized under
the environmental protection fund, or for which appropriations are  made
to  the  environmental  protection  fund  including,  but not limited to
municipal  parks  and  historic  preservation,   stewardship,   farmland
protection, non-point source, pollution control, Hudson River Park, land
acquisition,  and  waterfront revitalization; (b) department of environ-
mental conservation capital appropriations for Onondaga Lake for certain
water quality improvement projects in the same manner as  set  forth  in
paragraph (d) of subdivision one of section 56-0303 of the environmental
conservation law; (c) for the purpose of the administration, management,
maintenance, and use of the real property at the western New York nucle-
ar  service  center;  and  (d)  department of environmental conservation
capital appropriations  for  the  administration,  design,  acquisition,
construction,  improvement, installation, and related work on department
of environmental conservation environmental infrastructure projects; and
(e) office of parks, recreation and historic preservation appropriations
or reappropriations from the state parks infrastructure fund[,]; AND (F)
CAPITAL GRANTS FOR THE CLEANER, GREENER COMMUNITIES PROGRAM the director
of the division of budget and the corporation  are  each  authorized  to
enter  into  one  or  more service contracts, none of which shall exceed
twenty years in duration, upon such terms and conditions as the director
and the corporation may agree, so as to annually provide to  the  corpo-
ration  in  the  aggregate,  a sum not to exceed the annual debt service
payments and related expenses required for any bonds and  notes  author-
ized  pursuant  to  section  twelve  hundred  ninety  of this title. Any
service contract entered into pursuant to  this  section  shall  provide
that  the  obligation of the state to fund or to pay the amounts therein
provided for shall not constitute a debt of the state within the meaning
of any constitutional or statutory provision and shall be deemed  execu-
tory  only  to the extent of moneys available for such purposes, subject
to annual appropriation by the legislature. Any such service contract or
any payments made or to be made thereunder may be assigned  and  pledged
by  the  corporation  as security for its bonds and notes, as authorized
pursuant to section twelve hundred ninety of this title.

S. 2607--D                         209                        A. 3007--D

  3. The maximum amount of bonds that may be issued for the  purpose  of
financing  environmental  infrastructure  projects  authorized  by  this
section  shall  be  one  billion  [one  hundred  eighteen]  TWO  HUNDRED
SIXTY-FIVE  million  seven  hundred sixty thousand dollars, exclusive of
bonds  issued to fund any debt service reserve funds, pay costs of issu-
ance of such bonds, and bonds or notes issued  to  refund  or  otherwise
repay  bonds  or  notes  previously  issued. Such bonds and notes of the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any  funds  other  than
those  appropriated by the state to the corporation for debt service and
related expenses pursuant to any service contracts executed pursuant  to
subdivision  one of this section, and such bonds and notes shall contain
on the face thereof a statement to such effect.
  S 56. The state finance law is amended by adding a new section 92-h to
read as follows:
  S 92-H. SALES TAX REVENUE BOND TAX FUND. 1.  THERE  IS  HEREBY  ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER  OF  TAXATION AND FINANCE A FUND WITHIN THE GENERAL DEBT SERVICE FUND
TO BE KNOWN AS THE "SALES TAX REVENUE BOND TAX FUND".
  2. SUCH FUND SHALL CONSIST OF THE AMOUNT OF REVENUE  COLLECTED  WITHIN
THE  STATE  FROM  THE IMPOSITION OF THE SALES AND COMPENSATING USE TAXES
(INCLUDING INTEREST AND PENALTIES) PURSUANT TO  SECTION  ELEVEN  HUNDRED
FIVE  AND  SECTION ELEVEN HUNDRED TEN OF THE TAX LAW EQUAL TO THE AMOUNT
ATTRIBUTABLE TO A ONE PERCENT RATE OF TAXATION, LESS SUCH AMOUNTS AS THE
COMMISSIONER OF TAXATION AND FINANCE MAY DETERMINE TO BE  NECESSARY  FOR
REFUNDS.   ON AND AFTER THE DATE THAT ALL OF THE OBLIGATIONS AND LIABIL-
ITIES OF THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORPORATION SHALL HAVE
BEEN  MET  OR  OTHERWISE  DISCHARGED,  OTHER  THAN  PAYMENT  OBLIGATIONS
REQUIRED  BY  SECTION  THIRTY-TWO  HUNDRED  THIRTY-EIGHT-A OF THE PUBLIC
AUTHORITIES LAW, IT SHALL EQUAL THE AMOUNT ATTRIBUTABLE TO A TWO PERCENT
RATE OF TAXATION, LESS SUCH AMOUNTS AS THE COMMISSIONER OF TAXATION  AND
FINANCE  MAY  DETERMINE  TO  BE  NECESSARY FOR REFUNDS.   SUCH SALES AND
COMPENSATING USE TAX REVENUES SHALL BE SEPARATE AND  DISTINCT  FROM  THE
SALES  AND  COMPENSATING USE TAX REVENUES DEPOSITED FROM TIME TO TIME IN
THE  LOCAL  GOVERNMENT  ASSISTANCE  TAX  FUND,   PURSUANT   TO   SECTION
NINETY-TWO-R OF THIS CHAPTER.
  3.  ON  OR  BEFORE  THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE  AMOUNTS
SPECIFIED  IN  SUBDIVISION TWO OF THIS SECTION RELATING TO THE PRECEDING
MONTH AND, IN ADDITION, NO LATER THAN MARCH THIRTY-FIRST OF EACH  FISCAL
YEAR THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS
RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED
SHALL  BE  DEPOSITED  BY  THE STATE COMPTROLLER IN THE SALES TAX REVENUE
BOND TAX FUND.
  4. MONEYS IN THE SALES TAX REVENUE BOND TAX FUND SHALL BE  KEPT  SEPA-
RATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. ALL
DEPOSITS OF SUCH REVENUES SHALL, IF REQUIRED BY THE  STATE  COMPTROLLER,
BE  SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE HAVING A
MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF SUCH DEPOSITS  AND  ALL
BANKS  AND  TRUST  COMPANIES  ARE  AUTHORIZED  TO GIVE SECURITY FOR SUCH
DEPOSITS. ANY SUCH MONEYS IN SUCH FUND MAY, IN  THE  DISCRETION  OF  THE
STATE  COMPTROLLER,  BE INVESTED IN OBLIGATIONS IN WHICH THE STATE COMP-
TROLLER IS AUTHORIZED TO INVEST PURSUANT TO  SECTION  NINETY-EIGHT-A  OF
THIS ARTICLE.

S. 2607--D                         210                        A. 3007--D

  5.  (A) THE STATE COMPTROLLER SHALL FROM TIME TO TIME, BUT IN NO EVENT
LATER THAN THE FIFTEENTH DAY OF EACH MONTH (OTHER THAN  THE  LAST  MONTH
OF  THE  FISCAL YEAR) AND NO LATER THAN THE THIRTY-FIRST DAY OF THE LAST
MONTH OF EACH FISCAL YEAR, PAY OVER AND DISTRIBUTE TO THE CREDIT OF  THE
GENERAL  FUND  OF THE STATE TREASURY ALL MONEYS IN THE SALES TAX REVENUE
BOND TAX FUND, IF ANY, IN EXCESS OF THE AGGREGATE AMOUNT REQUIRED TO  BE
SET ASIDE FOR THE PAYMENT OF CASH REQUIREMENTS PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION, PROVIDED THAT AN APPROPRIATION HAS BEEN MADE TO PAY
ALL  AMOUNTS  SPECIFIED  IN ANY CERTIFICATE OR CERTIFICATES DELIVERED BY
THE DIRECTOR OF THE BUDGET PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION
AS BEING REQUIRED BY ANY AUTHORIZED ISSUER AS SUCH TERM  IS  DEFINED  IN
SECTION  SIXTY-NINE-M  OF  THIS CHAPTER FOR THE PAYMENT OF CASH REQUIRE-
MENTS OF SUCH AUTHORIZED ISSUERS FOR SUCH FISCAL YEAR.   SUBJECT TO  THE
RIGHTS  OF  HOLDERS  OF  DEBT  OF THE STATE, IN NO EVENT SHALL THE STATE
COMPTROLLER PAY OVER AND DISTRIBUTE ANY MONEYS ON DEPOSIT IN  THE  SALES
TAX  REVENUE BOND TAX FUND TO ANY PERSON OTHER THAN AN AUTHORIZED ISSUER
PURSUANT TO SUCH CERTIFICATE OR CERTIFICATES (I) UNLESS  AND  UNTIL  THE
AGGREGATE OF ALL CASH REQUIREMENTS CERTIFIED TO THE STATE COMPTROLLER AS
REQUIRED  BY  SUCH  AUTHORIZED ISSUERS TO BE SET ASIDE PURSUANT TO PARA-
GRAPH (B) OF THIS SUBDIVISION FOR  SUCH  FISCAL  YEAR  SHALL  HAVE  BEEN
APPROPRIATED  TO SUCH AUTHORIZED ISSUERS IN ACCORDANCE WITH THE SCHEDULE
SPECIFIED IN THE CERTIFICATE OR CERTIFICATES FILED BY  THE  DIRECTOR  OF
THE  BUDGET OR (II) IF, AFTER HAVING BEEN SO CERTIFIED AND APPROPRIATED,
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO PARAGRAPH (B) OF THIS SUBDI-
VISION HAS NOT BEEN MADE TO THE  AUTHORIZED  ISSUERS  PURSUANT  TO  SUCH
CERTIFICATE  OR CERTIFICATES; PROVIDED, HOWEVER, THAT NO PERSON, INCLUD-
ING SUCH AUTHORIZED ISSUERS OR THE HOLDERS OF REVENUE BONDS, SHALL  HAVE
ANY  LIEN  ON  MONEYS ON DEPOSIT IN THE SALES TAX REVENUE BOND TAX FUND.
ANY AGREEMENT ENTERED INTO PURSUANT  TO  SECTION  SIXTY-NINE-O  OF  THIS
CHAPTER  RELATED  TO  ANY  PAYMENT  AUTHORIZED  BY THIS SECTION SHALL BE
EXECUTORY ONLY TO THE EXTENT OF SUCH REVENUES AVAILABLE TO THE STATE  IN
SUCH  FUND.  NOTWITHSTANDING SUBDIVISIONS TWO AND THREE OF THIS SECTION,
IN THE EVENT THE AGGREGATE OF ALL CASH  REQUIREMENTS  CERTIFIED  TO  THE
STATE COMPTROLLER AS REQUIRED BY SUCH AUTHORIZED ISSUERS TO BE SET ASIDE
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION FOR THE FISCAL YEAR BEGIN-
NING  ON APRIL FIRST SHALL NOT HAVE BEEN APPROPRIATED TO SUCH AUTHORIZED
ISSUERS IN ACCORDANCE WITH THE SCHEDULE SPECIFIED IN THE CERTIFICATE  OR
CERTIFICATES  FILED BY THE DIRECTOR OF THE BUDGET OR, IF, HAVING BEEN SO
CERTIFIED AND APPROPRIATED, ANY PAYMENT REQUIRED TO BE MADE PURSUANT  TO
PARAGRAPH  (B)  OF  THIS  SUBDIVISION HAS NOT BEEN MADE PURSUANT TO SUCH
CERTIFICATE OR CERTIFICATES, ALL RECEIPTS COLLECTED AND DEPOSITED IN THE
SALES TAX REVENUE BOND TAX FUND SHALL REMAIN IN SUCH FUND. NOTWITHSTAND-
ING ANY OTHER PROVISION OF LAW, IF THE STATE HAS APPROPRIATED  AND  PAID
TO  THE  AUTHORIZED  ISSUERS  ALL  AMOUNTS  NECESSARY FOR THE AUTHORIZED
ISSUERS TO MEET THEIR CASH REQUIREMENTS  FOR  THE  CURRENT  FISCAL  YEAR
PURSUANT TO THE CERTIFICATE OR CERTIFICATES SUBMITTED BY THE DIRECTOR OF
THE  BUDGET  PURSUANT  TO PARAGRAPH (B) OF THIS SECTION, THE STATE COMP-
TROLLER SHALL, ON THE LAST DAY OF EACH FISCAL YEAR, PAY TO  THE  GENERAL
FUND  OF  THE STATE ALL SUMS REMAINING IN THE SALES TAX REVENUE BOND TAX
FUND ON SUCH DATE EXCEPT SUCH AMOUNTS AS THE DIRECTOR OF THE BUDGET  MAY
CERTIFY  ARE  NEEDED TO MEET THE CASH REQUIREMENTS OF AUTHORIZED ISSUERS
DURING THE SUBSEQUENT FISCAL YEAR.
  (B) NO LATER THAN THIRTY DAYS AFTER THE SUBMISSION  OF  THE  EXECUTIVE
BUDGET  IN ACCORDANCE WITH ARTICLE SEVEN OF THE CONSTITUTION, THE DIREC-
TOR OF THE BUDGET SHALL PREPARE A CERTIFICATE OF THE AMOUNT  OF  MONTHLY
RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO SUBDIVISION TWO OF THIS

S. 2607--D                         211                        A. 3007--D

SECTION  DURING  THE  FISCAL  YEAR  BEGINNING  APRIL  FIRST OF THAT YEAR
TOGETHER WITH THE MONTHLY AMOUNTS NECESSARY TO BE  SET  ASIDE  FROM  THE
RECEIPTS  OF  SUCH  FUND,  AS SHALL BE SUFFICIENT TO MEET THE TOTAL CASH
REQUIREMENTS  OF  AUTHORIZED ISSUERS, AS DEFINED BY SECTION SIXTY-NINE-M
OF THIS CHAPTER DURING SUCH FISCAL YEAR, BASED ON INFORMATION THAT SHALL
BE PROVIDED BY SUCH AUTHORIZED ISSUERS, CONSISTENT WITH THE TERMS OF ANY
CONTRACT WITH OUTSTANDING BONDHOLDERS. EXCEPT FOR THE PURPOSE OF MEETING
CASH REQUIREMENTS OF AN AUTHORIZED ISSUER THAT ARE DUE ON A  MONTHLY  OR
MORE  FREQUENT  BASIS, PRIOR TO TRANSFERRING ANY MONEYS FROM THE ACCOUNT
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, THE COMPTROLLER SHALL SET
ASIDE ON A MONTHLY BASIS ALL REVENUES DEPOSITED PURSUANT TO THIS  SUBDI-
VISION  AS  RECEIVED UNTIL THE AMOUNT SET ASIDE IS EQUAL TO ONE-FIFTH OF
THE INTEREST DUE ON SUCH OBLIGATIONS ON  THE  NEXT  SUCCEEDING  INTEREST
PAYMENT  DATE  MULTIPLIED  BY  THE  NUMBER  OF MONTHS FROM THE LAST SUCH
PAYMENT AND ONE-ELEVENTH OF THE NEXT PRINCIPAL INSTALLMENT DUE  ON  SUCH
OBLIGATIONS  MULTIPLIED BY THE NUMBER OF MONTHS FROM THE LAST SUCH PRIN-
CIPAL INSTALLMENT WHERE PRINCIPAL IS DUE ON AN ANNUAL BASIS OR ONE-FIFTH
OF THE NEXT PRINCIPAL INSTALLMENT DUE ON SUCH OBLIGATIONS MULTIPLIED  BY
THE  NUMBER  OF  MONTHS  FROM  THE LAST SUCH PRINCIPAL INSTALLMENT WHERE
PRINCIPAL IS DUE ON A SEMIANNUAL BASIS. FOR THE PURPOSE OF MEETING  CASH
REQUIREMENTS  OF AN AUTHORIZED ISSUER THAT ARE DUE ON A MONTHLY BASIS OR
MORE FREQUENTLY, THE COMPTROLLER SHALL SET ASIDE ALL REVENUES  DEPOSITED
PURSUANT TO SUBDIVISION TWO OF THIS SECTION AS RECEIVED UNTIL THE AMOUNT
SO SET ASIDE IS, IN THE REASONABLE JUDGMENT OF THE DIRECTOR OF THE BUDG-
ET  AS  SET  FORTH  IN SUCH CERTIFICATE, SUFFICIENT TO MAKE THE REQUIRED
PAYMENT ON OR BEFORE  SUCH  PAYMENT  DATE.  NOTWITHSTANDING  SUBDIVISION
THREE  OF, SECTION SEVENTY-TWO OF THIS ARTICLE OR ANY OTHER PROVISION OF
LAW, ALL MONEYS SET ASIDE IN THE SALES TAX REVENUE BOND TAX FUND TO MEET
THE ANNUAL CASH REQUIREMENTS OF AUTHORIZED ISSUERS PURSUANT TO A CERTIF-
ICATE OR CERTIFICATES AS REQUIRED IN THIS PARAGRAPH SHALL REMAIN IN  THE
SALES  TAX  REVENUE BOND TAX FUND UNTIL NEEDED FOR PAYMENT TO AUTHORIZED
ISSUERS, AS PROVIDED IN THIS SECTION. IN THE EVENT THAT THE  AMOUNT  SET
ASIDE  BY THE STATE COMPTROLLER PURSUANT TO THIS PARAGRAPH IS NOT SUFFI-
CIENT TO MEET THE CASH REQUIREMENTS REQUIRED PURSUANT TO  A  CERTIFICATE
OR CERTIFICATES SUBMITTED BY THE DIRECTOR OF THE BUDGET, THE STATE COMP-
TROLLER  SHALL  IMMEDIATELY  TRANSFER FROM THE GENERAL FUND TO THE SALES
TAX REVENUE BOND TAX FUND AN AMOUNT WHICH, WHEN COMBINED WITH THE AMOUNT
SET ASIDE PURSUANT TO THIS PARAGRAPH, SHALL BE SUFFICIENT  TO  MEET  THE
PAYMENT  REQUIRED  PURSUANT  TO  SUCH  CERTIFICATE  OR CERTIFICATES. THE
DIRECTOR OF THE BUDGET MAY REVISE SUCH CERTIFICATION AT  SUCH  TIMES  AS
SHALL  BE  NECESSARY, PROVIDED, HOWEVER, THAT THE DIRECTOR OF THE BUDGET
SHALL, AS NECESSARY, REVISE SUCH CERTIFICATION  NOT  LATER  THAN  THIRTY
DAYS AFTER THE ISSUANCE OF ANY REVENUE BONDS, INCLUDING REFUNDING BONDS,
AND  AFTER THE ADOPTION OF ANY INTEREST RATE EXCHANGE OR OTHER FINANCIAL
ARRANGEMENT AFFECTING THE CASH REQUIREMENTS  OF THE AUTHORIZED  ISSUERS.
IN  NO EVENT SHALL THE STATE COMPTROLLER BE  HELD LIABLE FOR THE FAILURE
TO SET ASIDE AN AMOUNT SUFFICIENT TO PAY  ANY  REQUIRED  PAYMENT  OF  AN
AUTHORIZED ISSUER.
  6. ALL PAYMENTS OF MONEYS FROM THE REVENUE BOND TAX FUND SHALL BE MADE
ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER.
  S 57. Section 1148 of the tax law, as amended by chapter 3 of the laws
of 2004, is amended to read as follows:
  S  1148.  Deposit  and disposition of revenue. All taxes, interest and
penalties collected or received by the commissioner under  this  article
shall be deposited and disposed of pursuant to the provisions of section
one  hundred  seventy-one-a of this chapter; provided however, the comp-

S. 2607--D                         212                        A. 3007--D

troller shall on or before the twelfth day of each month, pay  all  such
taxes, interest and penalties collected under this article and remaining
to  the  comptroller's  credit  in  such  banks, banking houses or trust
companies  at  the  close  of  business on the last day of the preceding
month, into the general fund of the state treasury, except as  otherwise
provided in sections ninety-two-d, NINETY-TWO-H, and ninety-two-r of the
state  finance  law and sections eleven hundred two, eleven hundred four
and eleven hundred nine of this article.
  S 58. The state finance law is amended by adding a new article 5-F  to
read as follows:
                               ARTICLE 5-F
                SALES TAX REVENUE BOND FINANCING PROGRAM
SECTION 69-M. DEFINITIONS.
        69-N. ISSUANCE OF BONDS AND NOTES.
        69-O. PAYMENTS TO AUTHORIZED ISSUERS.
  S  69-M.  DEFINITIONS. 1. "AUTHORIZED ISSUER" SHALL MEAN THE DORMITORY
AUTHORITY OF THE STATE OF NEW YORK, THE NEW YORK STATE URBAN DEVELOPMENT
CORPORATION, THE NEW YORK STATE THRUWAY AUTHORITY,  AND  ANY  SUCCESSORS
THERETO.
  2. "AUTHORIZED PURPOSE" FOR PURPOSES OF THIS ARTICLE AND SECTION NINE-
TY-TWO-H  OF  THIS  CHAPTER SHALL MEAN ANY PURPOSES FOR WHICH STATE-SUP-
PORTED DEBT, AS DEFINED BY SECTION SIXTY-SEVEN-A OF THIS CHAPTER, MAY OR
HAS BEEN ISSUED, EXCEPT DEBT FOR WHICH  THE  STATE  IS  CONSTITUTIONALLY
OBLIGATED THEREUNDER TO PAY DEBT SERVICE AND RELATED EXPENSES.
  3.  "REVENUE BONDS" FOR THE PURPOSES OF THIS ARTICLE AND SECTION NINE-
TY-TWO-H OF THIS CHAPTER SHALL MEAN  ANY  BONDS,  NOTES  OR  OBLIGATIONS
ISSUED OR INCURRED PURSUANT TO SECTION SIXTY-NINE-N OF THIS ARTICLE.
  S  69-N. ISSUANCE OF BONDS AND NOTES.  1. (A) AUTHORIZED ISSUERS SHALL
HAVE THE POWER AND ARE HEREBY AUTHORIZED FROM  TIME  TO  TIME  TO  ISSUE
REVENUE  BONDS, IN SUCH PRINCIPAL AMOUNT OR AMOUNTS, SUBJECT TO SUBDIVI-
SION EIGHT OF THIS SECTION AND AS  THE  DIRECTOR  OF  THE  BUDGET  SHALL
DETERMINE  TO  BE  NECESSARY, TO PROVIDE SUFFICIENT FUNDS FOR AUTHORIZED
PURPOSES, THE ESTABLISHMENT OF RESERVES TO SECURE  SUCH  REVENUE  BONDS,
THE PAYMENT OF AMOUNTS REQUIRED UNDER REVENUE BONDS OR AGREEMENTS RELAT-
ING  THERETO,  AND THE PAYMENT OF ALL COSTS OF ISSUANCE OF THEIR REVENUE
BONDS.
  (B) THE AUTHORIZED ISSUERS SHALL HAVE THE POWER AND ARE HEREBY AUTHOR-
IZED FROM TIME TO TIME TO ISSUE (I) REVENUE BONDS TO RENEW  NOTES,  (II)
REVENUE  BONDS TO PAY NOTES, AND (III) WHENEVER IT DEEMS REFUNDING EXPE-
DIENT, TO REFUND ANY BONDS, NOTES OR OTHER  OBLIGATIONS  ISSUED  FOR  AN
AUTHORIZED  PURPOSE  OR  PURPOSES, INCLUDING BONDS, NOTES OR OTHER OBLI-
GATIONS THAT WERE ISSUED PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE, BY
THE ISSUANCE OF NEW REVENUE BONDS, WHETHER THE BONDS,  NOTES,  OR  OTHER
OBLIGATIONS TO BE REFUNDED HAVE OR HAVE NOT MATURED, AND TO ISSUE REVEN-
UE  BONDS  IN  PART  TO  REFUND  BONDS, NOTES, OR OTHER OBLIGATIONS THEN
OUTSTANDING AND IN PART FOR ANY OF ITS OTHER  AUTHORIZED  PURPOSES.  THE
REFUNDING  REVENUE  BONDS  MAY  BE  EXCHANGED FOR BONDS, NOTES, OR OTHER
OBLIGATIONS TO BE REFUNDED, OR SOLD AND  THE  PROCEEDS  APPLIED  TO  THE
PURCHASE,  REDEMPTION  OR  PAYMENT  OF SUCH BONDS, NOTES, OR OTHER OBLI-
GATIONS.
  (C) EXCEPT AS MAY OTHERWISE BE EXPRESSLY  PROVIDED  BY  AN  AUTHORIZED
ISSUER, EVERY ISSUE OF REVENUE BONDS OF AN AUTHORIZED ISSUER PURSUANT TO
THIS SECTION SHALL BE SPECIAL OBLIGATIONS OF THE AUTHORIZED ISSUER PAYA-
BLE  SOLELY OUT OF ANY REVENUES PAID OVER TO SUCH AUTHORIZED ISSUER FROM
THE SALES TAX REVENUE BOND TAX FUND, ESTABLISHED PURSUANT    TO  SECTION
NINETY-TWO-H OF THIS CHAPTER.

S. 2607--D                         213                        A. 3007--D

  (D)  ALL  OF  THE  PROVISIONS  OF  THE ENABLING ACTS OF THE AUTHORIZED
ISSUERS RELATING TO BONDS AND NOTES, WHICH ARE NOT INCONSISTENT WITH THE
PROVISIONS OF THIS SECTION, MAY, AT THE DISCRETION OF  THE    AUTHORIZED
ISSUER, APPLY TO REVENUE BONDS AUTHORIZED BY THIS SECTION.
  (E)  THE  REVENUE  BONDS  OF THE AUTHORIZED ISSUERS AUTHORIZED BY THIS
SECTION SHALL NOT BE A DEBT OF THE STATE AND  THE  STATE  SHALL  NOT  BE
LIABLE  THEREON,  NOR  SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN
THOSE OF THE AUTHORIZED ISSUERS PLEDGED THEREFOR; AND SUCH REVENUE BONDS
SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.  IN  ADDI-
TION,  ANY  AGREEMENTS  ENTERED  INTO BY ANY ENTITY PURSUANT TO SECTIONS
SIXTY-NINE-O AND NINETY-TWO-H OF THIS CHAPTER ON BEHALF OF THE STATE  TO
EFFECT  THE IMPLEMENTATION OF ANY OF THE ACTIVITIES FINANCED IN WHOLE OR
IN PART WITH PROCEEDS OF THE REVENUE BONDS OF  THE  AUTHORIZED  ISSUERS,
AUTHORIZED  IN  THIS  SECTION  DO NOT CONSTITUTE OR CREATE A DEBT OF THE
STATE, NOR A CONTRACTUAL OBLIGATION IN EXCESS OF THE  AMOUNTS  APPROPRI-
ATED THEREFOR, AND THE STATE HAS NO CONTINUING LEGAL OR MORAL OBLIGATION
TO APPROPRIATE MONEY FOR PAYMENTS DUE UNDER ANY SUCH AGREEMENT.
  (F) (I) REVENUE BONDS SHALL BE AUTHORIZED BY RESOLUTION OF THE AUTHOR-
IZED  ISSUERS,  BE  IN  SUCH  DENOMINATIONS, BEAR SUCH DATE OR DATES AND
MATURE AT SUCH TIME OR TIMES, AS SUCH RESOLUTION OR OTHER AGREEMENT  MAY
PROVIDE.
  (II)  REVENUE BONDS SHALL BE SUBJECT TO SUCH TERMS OF REDEMPTION, BEAR
INTEREST AT SUCH RATE OR RATES, BE PAYABLE AT SUCH  TIMES,  BE  IN  SUCH
FORM, EITHER COUPON, REGISTERED OR BOOK ENTRY FORM, CARRY SUCH REGISTRA-
TION  PRIVILEGES,  BE EXECUTED IN SUCH MANNER, BE PAYABLE IN SUCH MEDIUM
OF PAYMENT AT SUCH PLACE OR PLACES, AND BE SUBJECT  TO  SUCH  TERMS  AND
CONDITIONS AS SUCH RESOLUTION MAY PROVIDE.
  (G)  REVENUE  BONDS  AUTHORIZED  HEREUNDER SHALL BE SOLD BY AUTHORIZED
ISSUERS, AT PUBLIC OR PRIVATE SALE, AT  SUCH  PRICE  OR  PRICES  AS  THE
AUTHORIZED  ISSUERS  MAY  DETERMINE.  REVENUE  BONDS  OF  THE AUTHORIZED
ISSUERS SHALL NOT BE SOLD BY THE AUTHORIZED  ISSUERS  AT  PRIVATE  SALES
UNLESS  SUCH  SALE AND THE TERMS THEREOF HAVE BEEN APPROVED BY THE STATE
COMPTROLLER.
  2. CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE, AND SUBJECT TO  THE
APPROVAL  OF  THE DIRECTOR OF THE BUDGET, ANY RESOLUTION OR OTHER AGREE-
MENT  AUTHORIZING  REVENUE  BONDS  OR  ANY  ISSUE  THEREOF  MAY  CONTAIN
PROVISIONS, WHICH SHALL BE A PART OF THE CONTRACT WITH THE HOLDERS THER-
EOF, AS TO:
  (A)  PLEDGING  ALL OR ANY PART OF THE REVENUES RECEIVED BY THE AUTHOR-
IZED ISSUERS PURSUANT TO SECTION SIXTY-NINE-O OF THIS ARTICLE TO  SECURE
THE  PAYMENT  OF  THE BONDS OR NOTES OR OF ANY ISSUE THEREOF, SUBJECT TO
SUCH AGREEMENTS WITH HOLDERS OF REVENUE BONDS AS MAY THEN EXIST;
  (B) PLEDGING ALL OR ANY PART OF THE ASSETS OF THE  AUTHORIZED  ISSUERS
TO  SECURE  THE  PAYMENT OF THE REVENUE BONDS OR OF ANY ISSUE OF REVENUE
BONDS SUBJECT TO SUCH AGREEMENTS WITH HOLDERS OF REVENUE  BONDS  AS  MAY
THEN EXIST;
  (C)  THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE REGULATION
AND DISPOSITION THEREOF;
  (D) LIMITATIONS ON THE PURPOSES TO  WHICH  THE  PROCEEDS  OF  SALE  OF
REVENUE  BONDS,  MAY BE APPLIED AND PLEDGING SUCH PROCEEDS TO SECURE THE
PAYMENT OF THE REVENUE BONDS OR OF ANY ISSUE THEREOF;
  (E) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL REVENUE BONDS, THE TERMS
UPON WHICH ADDITIONAL REVENUE BONDS MAY BE ISSUED AND  SECURED  AND  THE
REFUNDING OF OUTSTANDING OR OTHER REVENUE BONDS;
  (F)  THE  PROCEDURE,  IF  ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH
HOLDERS OF REVENUE BONDS MAY BE AMENDED  OR  ABROGATED,  THE  AMOUNT  OF

S. 2607--D                         214                        A. 3007--D

REVENUE  BONDS  THE HOLDERS OF WHICH MUST CONSENT THERETO AND THE MANNER
IN WHICH SUCH CONSENT MAY BE GIVEN;
  (G)  VESTING  IN  A  TRUSTEE,  AS DESCRIBED IN SUBDIVISION SIX OF THIS
SECTION, SUCH PROPERTY, RIGHTS,  POWERS  AND  DUTIES  IN  TRUST  AS  THE
AUTHORIZED  ISSUERS  MAY  DETERMINE, WHICH MAY INCLUDE ANY OR ALL OF THE
RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED  BY  THE  HOLDERS  OF
REVENUE  BONDS  OF  THE  RESPECTIVE  AUTHORIZED ISSUERS PURSUANT TO THIS
ARTICLE, AND LIMITING OR ABROGATING THE RIGHT OF SUCH REVENUE BOND HOLD-
ERS TO APPOINT A TRUSTEE  UNDER  THIS  TITLE  OR  LIMITING  THE  RIGHTS,
POWERS, AND DUTIES OF SUCH TRUSTEE;
  (H)  THE  ACTS OR OMISSIONS TO ACT WHICH SHALL CONSTITUTE A DEFAULT IN
THE OBLIGATIONS AND DUTIES OF THE AUTHORIZED ISSUERS TO THE  HOLDERS  OF
THE REVENUE BONDS AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE HOLD-
ERS  OF  THE REVENUE BONDS IN EVENT OF SUCH DEFAULT, INCLUDING THE RIGHT
TO APPOINTMENT OF A RECEIVER; PROVIDED, HOWEVER, THAT  SUCH  RIGHTS  AND
REMEDIES  SHALL  NOT  BE  INCONSISTENT WITH THE OTHER PROVISIONS OF THIS
ARTICLE;
  (I) ANY OTHER MATTERS, OF LIKE OR DIFFERENT CHARACTER,  WHICH  IN  ANY
WAY  AFFECT  THE  SECURITY  OR  PROTECTION OF THE HOLDERS OF THE REVENUE
BONDS; AND
  (J) THE APPLICATION OF ANY OF THE FOREGOING PROVISIONS TO ANY PROVIDER
OF ANY APPLICABLE BOND, NOTE OR OTHER FINANCIAL FACILITY.
  NOTWITHSTANDING THE FOREGOING, THE AUTHORIZED  ISSUERS  SHALL  NOT  BE
AUTHORIZED  TO MAKE ANY COVENANT, PLEDGE, PROMISE, OR AGREEMENT PURPORT-
ING TO BIND THE STATE EXCEPT AS  OTHERWISE  SPECIFICALLY  AUTHORIZED  BY
THIS ARTICLE.
  3. ANY PLEDGE MADE BY THE RESPECTIVE AUTHORIZED ISSUERS SHALL BE VALID
AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE. THE REVENUES OR PROP-
ERTY  SO  PLEDGED  AND  THEREAFTER RECEIVED BY THE RESPECTIVE AUTHORIZED
ISSUERS SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF SUCH PLEDGE  WITHOUT
ANY  PHYSICAL  DELIVERY THEREOF OR FURTHER ACT, AND THE LIEN OF ANY SUCH
PLEDGE SHALL BE VALID AND BINDING AS AGAINST ALL PARTIES  HAVING  CLAIMS
OF  ANY  KIND  IN  TORT,  CONTRACT OR OTHERWISE   AGAINST THE RESPECTIVE
AUTHORIZED ISSUERS, IRRESPECTIVE OF WHETHER  SUCH  PARTIES  HAVE  NOTICE
THEREOF.  NEITHER  THE  RESOLUTION  NOR  ANY OTHER INSTRUMENT BY WHICH A
PLEDGE IS CREATED NEED BE RECORDED OR FILED TO PROTECT SUCH PLEDGE.
  4. NEITHER THE DIRECTORS OR MEMBERS OF THE AUTHORIZED ISSUERS NOR  ANY
OTHER PERSON EXECUTING THE REVENUE BONDS OF THE AUTHORIZED ISSUERS SHALL
BE  LIABLE PERSONALLY THEREON OR BE SUBJECT TO ANY PERSONAL LIABILITY OR
ACCOUNTABILITY SOLELY BY REASON OF THE ISSUANCE THEREOF.
  5. THE AUTHORIZED ISSUERS, SUBJECT TO SUCH AGREEMENTS WITH HOLDERS  OF
REVENUE BONDS AS MAY THEN EXIST, OR WITH THE PROVIDERS OF ANY APPLICABLE
BOND  OR NOTE OR OTHER FINANCIAL OR AGREEMENT FACILITY, SHALL HAVE POWER
OUT OF ANY FUNDS AVAILABLE THEREFOR TO PURCHASE  REVENUE  BONDS  OF  THE
AUTHORIZED  ISSUERS,  WHICH  MAY  OR MAY NOT THEREUPON BE CANCELED, AT A
PRICE NOT EXCEEDING:
  (A) IF THE REVENUE BONDS ARE THEN  REDEEMABLE,  THE  REDEMPTION  PRICE
THEN APPLICABLE, INCLUDING ANY ACCRUED INTEREST;
  (B) IF THE REVENUE BONDS ARE NOT THEN REDEEMABLE, THE REDEMPTION PRICE
AND  ACCRUED  INTEREST  APPLICABLE ON THE FIRST DATE AFTER SUCH PURCHASE
UPON WHICH THE REVENUE BONDS BECOME SUBJECT TO REDEMPTION.
  6. IN THE DISCRETION OF AUTHORIZED ISSUERS, THE REVENUE BONDS  MAY  BE
SECURED BY A TRUST INDENTURE BY AND BETWEEN THE AUTHORIZED ISSUERS AND A
CORPORATE  TRUSTEE,  OR  A  CORPORATE TRUSTEE MAY BE APPOINTED UNDER THE
RESOLUTION AS PROVIDED IN SUBDIVISION TWO OF THIS SECTION.

S. 2607--D                         215                        A. 3007--D

  7. WHETHER OR NOT THE REVENUE BONDS ARE OF SUCH FORM AND CHARACTER  AS
TO  BE  NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM COMMERCIAL
CODE, THE REVENUE BONDS ARE HEREBY MADE  NEGOTIABLE  INSTRUMENTS  WITHIN
THE  MEANING  OF  AND  FOR  ALL PURPOSES OF THE UNIFORM COMMERCIAL CODE,
SUBJECT  ONLY TO THE PROVISIONS OF THE REVENUE BONDS FOR REGISTRATION OR
ANY BOOK-ENTRY-ONLY SYSTEM.
  8. REVENUE BONDS MAY  ONLY  BE  ISSUED  FOR  AUTHORIZED  PURPOSES,  AS
DEFINED  IN  SECTION  SIXTY-NINE-M  OF THIS ARTICLE. NOTWITHSTANDING THE
FOREGOING, ANY AUTHORIZED ISSUER MAY ISSUE REVENUE BONDS FOR ANY AUTHOR-
IZED PURPOSE. THE AUTHORIZED ISSUERS SHALL NOT ISSUE ANY  REVENUE  BONDS
IN  AN  AMOUNT IN EXCESS OF STATUTORY AUTHORIZATIONS FOR SUCH AUTHORIZED
PURPOSES. AUTHORIZATIONS FOR SUCH AUTHORIZED PURPOSES SHALL  BE  REDUCED
IN  AN  AMOUNT  EQUAL  TO  THE  AMOUNT  OF REVENUE BONDS ISSUED FOR SUCH
AUTHORIZED PURPOSES UNDER THIS ARTICLE. SUCH REDUCTION SHALL NOT BE MADE
IN RELATION TO REVENUE BONDS ISSUED TO FUND RESERVE FUNDS, IF  ANY,  AND
COSTS OF ISSUANCE, IF THESE ITEMS ARE NOT COUNTED UNDER EXISTING AUTHOR-
IZATIONS,  NOR  SHALL  REVENUE BONDS ISSUED TO REFUND BONDS ISSUED UNDER
EXISTING AUTHORIZATIONS REDUCE THE AMOUNT OF SUCH  AUTHORIZATIONS.
  9. EXCEPT UPON THE AMENDMENT OF THE NEW YORK STATE CONSTITUTION ALLOW-
ING THE ISSUANCE OR ASSUMPTION OF  BONDS,  NOTES  OR  OTHER  OBLIGATIONS
SECURED  BY  REVENUES,  WHICH  MAY INCLUDE THE REVENUES SECURING REVENUE
BONDS OF AUTHORIZED ISSUERS, AND  THE  AFFIRMATIVE  ASSUMPTION  OF  SUCH
BONDS, NOTES OR OTHER OBLIGATIONS BY THE STATE, THE REVENUE BONDS OF THE
AUTHORIZED ISSUERS AUTHORIZED BY THIS SECTION SHALL NOT BE A DEBT OF THE
STATE AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY BE PAYA-
BLE  OUT OF ANY FUNDS OTHER THAN THOSE OF THE AUTHORIZED ISSUERS PLEDGED
THEREFOR; AND SUCH REVENUE BONDS SHALL CONTAIN ON  THE  FACE  THEREOF  A
STATEMENT  TO  SUCH  EFFECT. IN ADDITION, ANY AGREEMENTS ENTERED INTO BY
ANY ENTITY PURSUANT TO SECTIONS SIXTY-NINE-O AND  NINETY-TWO-H  OF  THIS
CHAPTER  ON  BEHALF  OF THE STATE TO EFFECT THE IMPLEMENTATION OF ANY OF
THE ACTIVITIES FINANCED IN WHOLE OR IN PART WITH PROCEEDS OF  THE  OBLI-
GATIONS  OF  THE  AUTHORIZED  ISSUERS  AUTHORIZED IN THIS SECTION DO NOT
CONSTITUTE OR CREATE A DEBT OF THE STATE, NOR A  CONTRACTUAL  OBLIGATION
IN  EXCESS  OF  THE  AMOUNTS  APPROPRIATED THEREFOR AND THE STATE HAS NO
CONTINUING LEGAL OR MORAL OBLIGATION TO APPROPRIATE MONEY  FOR  PAYMENTS
DUE UNDER ANY SUCH AGREEMENT.
  10.  NOTHING IN THIS ARTICLE SHALL AFFECT THE AUTHORITY OF EACH OF THE
AUTHORIZED ISSUERS TO ISSUE  OR  INCUR  INDEBTEDNESS  FOR  ANY  PURPOSES
OTHERWISE  AUTHORIZED BY LAW AND NOTHING IN THIS ARTICLE SHALL BE DEEMED
TO ALTER OR AFFECT THE RIGHTS OF OUTSTANDING BONDHOLDERS OR  NOTEHOLDERS
OF ANY AUTHORIZED ISSUER.
  11.  THE AUTHORIZATION, SALE AND ISSUANCE OF REVENUE BONDS PURSUANT TO
THIS  SECTION  SHALL  NOT BE DEEMED AN ACTION AS SUCH TERM IS DEFINED IN
ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW FOR THE PURPOSES  OF
SUCH  ARTICLE.  SUCH EXEMPTION SHALL BE STRICTLY LIMITED IN ITS APPLICA-
TION TO SUCH FINANCING ACTIVITIES OF THE  AUTHORIZED  ISSUERS  HEREUNDER
AND DOES NOT EXEMPT ANY OTHER ENTITY FROM COMPLIANCE WITH  SUCH ARTICLE.
  S  69-O.  PAYMENTS TO AUTHORIZED ISSUERS. 1. THE STATE, ACTING THROUGH
THE DIRECTOR OF THE BUDGET,  AND  AUTHORIZED  ISSUERS  MAY  ENTER  INTO,
AMEND, MODIFY OR RESCIND ONE OR MORE FINANCING  AGREEMENTS PROVIDING FOR
THE  SPECIFIC  MANNER,  TIMING,  AND AMOUNT OF PAYMENTS TO BE MADE UNDER
THIS SECTION, BUT ONLY IN CONFORMITY WITH THIS SECTION.
  2. NO LATER THAN OCTOBER FIRST OF EACH  YEAR,  THE  AUTHORITY  ISSUERS
SHALL  CERTIFY  TO  THE  DIRECTOR  OF  THE  BUDGET  THE ANTICIPATED CASH
REQUIREMENTS RELATED TO REVENUE BONDS DURING THE SUBSEQUENT STATE FISCAL
YEAR IN SUCH DETAIL AS THE DIRECTOR MAY REQUIRE.

S. 2607--D                         216                        A. 3007--D

  3. UPON RECEIPT OF A VOUCHER FROM  ANY  AUTHORIZED  ISSUER  REQUESTING
PAYMENT  FOR  SUCH  AMOUNT  OR  AMOUNTS CERTIFIED BY THE DIRECTOR OF THE
BUDGET PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FIVE OF SECTION  NINETY-
TWO-H  OF  THIS  CHAPTER, THE STATE COMPTROLLER SHALL PAY SUCH AMOUNT OR
AMOUNTS TO BE AUTHORIZED ISSUER FROM APPROPRIATIONS FOR SUCH PURPOSE.
  4.  THE  AGREEMENT  OF  THE  STATE  CONTAINED IN THIS SECTION SHALL BE
DEEMED EXECUTORY ONLY TO THE  EXTENT  OF  APPROPRIATIONS  AVAILABLE  FOR
PAYMENTS  UNDER  THIS  SECTION,  AND NO LIABILITY ON ACCOUNT OF ANY SUCH
PAYMENT SHALL BE INCURRED BY THE STATE BEYOND SUCH APPROPRIATIONS.
  5. NOTHING CONTAINED IN THIS ARTICLE SHALL BE DEEMED TO  RESTRICT  THE
RIGHT  OF THE STATE TO AMEND, REPEAL, MODIFY OR OTHERWISE ALTER STATUTES
IMPOSING OR RELATING TO THE TAXES IMPOSED  PURSUANT  TO  SECTION  ELEVEN
HUNDRED  FIVE AND SECTION ELEVEN HUNDRED TEN OF THE TAX LAW. THE AUTHOR-
IZED ISSUERS SHALL NOT INCLUDE WITHIN ANY RESOLUTION, CONTRACT OR AGREE-
MENT WITH HOLDERS OF THE REVENUE BONDS ISSUED  UNDER  THIS  ARTICLE  ANY
PROVISION  WHICH PROVIDES THAT A DEFAULT OCCURS AS A RESULT OF THE STATE
EXERCISING ITS RIGHT TO AMEND, REPEAL, MODIFY  OR  OTHERWISE  ALTER  THE
TAXES IMPOSED PURSUANT TO SECTION ELEVEN HUNDRED FIVE AND SECTION ELEVEN
HUNDRED TEN OF THE TAX LAW.
  6.  ANY  RESOLUTION OR OTHER AGREEMENT AUTHORIZING REVENUE BONDS UNDER
THIS ARTICLE SHALL RESERVE THE RIGHT OF THE STATE, UPON AMENDMENT OF THE
NEW YORK STATE CONSTITUTION  ALLOWING  THE  ISSUANCE  OR  ASSUMPTION  OF
BONDS, NOTES OR OTHER OBLIGATIONS SECURED BY REVENUES, WHICH MAY INCLUDE
THE REVENUES SECURING REVENUE BONDS OF AUTHORIZED ISSUERS (A) TO ASSUME,
IN  WHOLE  OR  IN  PART, REVENUE BONDS OF THE AUTHORIZED ISSUERS, (B) TO
EXTINGUISH THE EXISTING LIEN OF SUCH RESOLUTION, OR OTHER AGREEMENT  AND
(C)  TO  SUBSTITUTE  SECURITY  FOR  THE  REVENUE BONDS OF THE AUTHORIZED
ISSUERS, IN EACH CASE ONLY SO LONG AS SUCH ASSUMPTION, EXTINGUISHMENT OR
SUBSTITUTION IS DONE IN ACCORDANCE WITH SUCH RESOLUTION OR OTHER  AGREE-
MENT.
  S 59. Subdivision 8 of section 97-f of the state finance law, as added
by section 56-b of part PP of chapter 56 of the laws of 2009, is amended
to read as follows:
  8.  In addition to the amounts required to be maintained on deposit in
the mental health services fund pursuant to  subdivision  five  of  this
section,  the fund shall maintain on deposit an amount equal to the debt
service and other cash requirements on mental health services facilities
bonds issued by [the dormitory authority] AUTHORIZED ISSUERS pursuant to
[section] SECTIONS sixty-eight-b AND SIXTY-NINE-N of this  chapter.  The
amount  required  to  be  maintained  in  such  fund shall be (i) twenty
percent of the amount of the next payment coming due relating to  mental
health  services  facilities bonds issued by an authorized issuer multi-
plied by the number of months from the date of  the  last  such  payment
with  respect  to  payments required to be made semi-annually, plus (ii)
those amounts specified in any financing agreement  between  the  issuer
and  the  state, acting through the director of the budget, with respect
to payments required to be made other than semi-annually, including  for
variable  rate  bonds,  interest  rate exchange or similar agreements or
other financing arrangements permitted by law.  Prior to making any such
payment, the comptroller shall make and deliver to the director  of  the
budget  and  the  chairmen of the facilities development corporation and
the New York state medical care facilities finance agency, a certificate
stating the aggregate amount to be maintained on deposit in  the  mental
health  services  fund  to  comply  in  full with the provisions of this
subdivision.

S. 2607--D                         217                        A. 3007--D

  No later than five days prior to the payment to be made by  the  state
comptroller  on such mental health services facilities bonds pursuant to
[section] SECTIONS ninety-two-z AND NINETY-TWO-H of  this  article,  the
amount  of  such  payment  shall be transferred by the state comptroller
from the mental health services fund to the revenue bond tax fund estab-
lished  by  section  ninety-two-z  of  this article. The accumulation of
moneys pursuant to this  subdivision  and  subsequent  transfer  to  the
revenue  bond  tax fund shall be subordinate in all respects to payments
to be made to the New York state medical care facilities finance  agency
and  to  any  pledge  or  assignment pursuant to subdivision six of this
section.
  S 60. Paragraph a of subdivision  5  of  section  89-b  of  the  state
finance law, as amended by section 1 of part B of chapter 84 of the laws
of 2002, is amended to read as follows:
  a.  Moneys  in  the  dedicated  highway  and  bridge trust fund shall,
following appropriation by the legislature, be  utilized  for:    recon-
struction,  replacement, reconditioning, restoration, rehabilitation and
preservation of state, county, town, city and village  roads,  highways,
parkways,  and  bridges  thereon,  to  restore  such facilities to their
intended  functions;  construction,  reconstruction,   enhancement   and
improvement  of  state, county, town, city, and village roads, highways,
parkways, and bridges thereon, to address current and projected capacity
problems including costs for  traffic  mitigation  activities;  aviation
projects authorized pursuant to section fourteen-j of the transportation
law  and  for payments to the general debt service fund of amounts equal
to amounts required for service contract payments  related  to  aviation
projects  as provided and authorized by section three hundred eighty-six
of the public authorities law; programs to assist small and minority and
women-owned firms engaged  in  transportation  construction  and  recon-
struction  projects,  including  a  revolving  fund  for working capital
loans, and a bonding guarantee assistance  program  in  accordance  with
provisions of this chapter; matching federal grants or apportionments to
the state for highway, parkway and bridge capital projects; the acquisi-
tion  of  real property and interests therein required or expected to be
required in connection with such projects; preventive maintenance activ-
ities necessary to ensure that highways, parkways and  bridges  meet  or
exceed their optimum useful life; expenses of control of snow and ice on
state  highways  by  the  department of transportation including but not
limited to personal services, nonpersonal services and fringe  benefits,
payment  of  emergency aid for control of snow and ice in municipalities
pursuant to section fifty-five of the highway law, expenses  of  control
of  snow and ice on state highways by municipalities pursuant to section
twelve of the highway law, and  for  expenses  of  arterial  maintenance
agreements  with  cities pursuant to section three hundred forty-nine of
the highway law; personal services  and  fringe  benefit  costs  of  the
department of transportation for bus safety inspection activities; costs
of  the  department  of  motor  vehicles,  including  but not limited to
personal and nonpersonal services; costs of engineering and  administra-
tive  services  of  the  department of transportation, including but not
limited to fringe benefits; the contract services  provided  by  private
firms  in  accordance  with  section fourteen of the transportation law;
personal services and nonpersonal services, for activities including but
not limited to the preparation of  designs,  plans,  specifications  and
estimates;  construction management and supervision activities; costs of
appraisals, surveys, testing and  environmental  impact  statements  for
transportation  projects;  expenses in connection with buildings, equip-

S. 2607--D                         218                        A. 3007--D

ment, materials and facilities used or useful  in  connection  with  the
maintenance,  operation,  and  repair  of highways, parkways and bridges
thereon; and project costs for: construction,  reconstruction,  improve-
ment,  reconditioning  and  preservation  of rail freight facilities and
intercity rail passenger facilities and equipment; construction,  recon-
struction, improvement, reconditioning and preservation of state, munic-
ipal  and  privately owned ports; construction, reconstruction, improve-
ment, reconditioning and preservation of municipal  airports;  privately
owned airports and aviation capital facilities, excluding airports oper-
ated  by the state or operated by a bi-state municipal corporate instru-
mentality for which  federal  funding  is  not  available  provided  the
project  is  consistent  with  an  approved  airport  layout  plan;  and
construction,  reconstruction,  enhancement,  improvement,  replacement,
reconditioning,  restoration,  rehabilitation and preservation of state,
county, town, city and village roads, highways,  parkways  and  bridges;
and  construction, reconstruction, improvement, reconditioning and pres-
ervation of fixed ferry facilities  of  municipal  and  privately  owned
ferry lines for transportation purposes, and the payment of debt service
required  on  any bonds, notes or other obligations and related expenses
for highway, parkway, bridge and project costs for: construction, recon-
struction, improvement, reconditioning and preservation of rail  freight
facilities  and  intercity  rail  passenger  facilities  and  equipment;
construction, reconstruction, improvement, reconditioning and  preserva-
tion of state, municipal and privately owned ports; construction, recon-
struction,  improvement,  reconditioning  and  preservation of municipal
airports; privately owned  airports  and  aviation  capital  facilities,
excluding  airports  operated  by  the  state  or operated by a bi-state
municipal corporate instrumentality for which  federal  funding  is  not
available  provided  the  project is consistent with an approved airport
layout plan;  construction,  reconstruction,  enhancement,  improvement,
replacement,  reconditioning,  restoration, rehabilitation and preserva-
tion of state, county, town, city and village roads, highways,  parkways
and bridges; and construction, reconstruction, improvement, recondition-
ing and preservation of fixed ferry facilities of municipal and private-
ly owned ferry lines for transportation purposes, purposes authorized on
or  after  the  effective date of this section. Beginning with disburse-
ments made on and after the first day of April, nineteen  hundred  nine-
ty-three,  moneys  in  such fund shall be available to pay such costs or
expenses made pursuant to appropriations or reappropriations made during
the state fiscal year which  began  on  the  first  of  April,  nineteen
hundred  ninety-two.  Beginning the first day of April, nineteen hundred
ninety-three, moneys in such fund shall  also  be  used  for  [payments]
TRANSFERS to the general debt service fund AND THE REVENUE BOND TAX FUND
of  amounts  equal  to  [amounts] THAT RESPECTIVELY required for service
contract AND FINANCING AGREEMENT payments as provided and authorized  by
section  three  hundred  eighty  of the public authorities law [and by],
section eleven of chapter three hundred twenty-nine of the laws of nine-
teen hundred ninety-one, as  amended,  AND  SECTIONS  SIXTY-EIGHT-C  AND
SIXTY-NINE-O OF THIS CHAPTER.
  S  60-a.  Paragraph  a  of  subdivision 5 of section 89-b of the state
finance law, as amended by section 1 of part D of  chapter  151  of  the
laws of 2001, is amended to read as follows:
  a.  Moneys  in  the  dedicated  highway  and  bridge trust fund shall,
following appropriation by the legislature, be  utilized  for:    recon-
struction,  replacement, reconditioning, restoration, rehabilitation and
preservation of state, county, town, city and village  roads,  highways,

S. 2607--D                         219                        A. 3007--D

parkways,  and  bridges  thereon,  to  restore  such facilities to their
intended  functions;  construction,  reconstruction,   enhancement   and
improvement  of  state, county, town, city, and village roads, highways,
parkways, and bridges thereon, to address current and projected capacity
problems  including  costs  for  traffic mitigation activities; aviation
projects authorized pursuant to section fourteen-j of the transportation
law and for payments to the general debt service fund of  amounts  equal
to  amounts  required  for service contract payments related to aviation
projects as provided and authorized by section three hundred  eighty-six
of the public authorities law; programs to assist small and minority and
women-owned  firms  engaged  in  transportation  construction and recon-
struction projects, including  a  revolving  fund  for  working  capital
loans,  and  a  bonding  guarantee assistance program in accordance with
provisions of this chapter; matching federal grants or apportionments to
the state for highway, parkway and bridge capital projects; the acquisi-
tion of real property and interests therein required or expected  to  be
required in connection with such projects; preventive maintenance activ-
ities  necessary  to  ensure that highways, parkways and bridges meet or
exceed their optimum useful life; expenses of control of snow and ice on
state highways by the department of  transportation  including  but  not
limited  to personal services, nonpersonal services and fringe benefits,
payment of emergency aid for control of snow and ice  in  municipalities
pursuant  to  section fifty-five of the highway law, expenses of control
of snow and ice on state highways by municipalities pursuant to  section
twelve  of  the  highway  law,  and for expenses of arterial maintenance
agreements with cities pursuant to section three hundred  forty-nine  of
the  highway  law;  personal  services  and  fringe benefit costs of the
department of transportation for bus safety inspection activities; costs
of engineering and administrative services of the department  of  trans-
portation,  including  but  not limited to fringe benefits; the contract
services provided by private firms in accordance with  section  fourteen
of  the  transportation law; personal services and nonpersonal services,
for activities including but not limited to the preparation of  designs,
plans,  specifications and estimates; construction management and super-
vision activities; costs of appraisals, surveys,  testing  and  environ-
mental  impact  statements  for  transportation  projects;  expenses  in
connection with buildings, equipment, materials and facilities  used  or
useful  in  connection  with  the  maintenance, operation, and repair of
highways,  parkways  and  bridges  thereon;  and  project   costs   for:
construction,  reconstruction, improvement, reconditioning and preserva-
tion of rail freight facilities and intercity rail passenger  facilities
and equipment; construction, reconstruction, improvement, reconditioning
and   preservation  of  state,  municipal  and  privately  owned  ports;
construction, reconstruction, improvement, reconditioning and  preserva-
tion  of municipal airports; privately owned airports and aviation capi-
tal facilities, excluding airports operated by the state or operated  by
a bi-state municipal corporate instrumentality for which federal funding
is  not  available  provided  the project is consistent with an approved
airport layout  plan;  and  construction,  reconstruction,  enhancement,
improvement,  replacement,  reconditioning,  restoration, rehabilitation
and preservation of state, county, town, city and village  roads,  high-
ways,  parkways  and bridges; and construction, reconstruction, improve-
ment, reconditioning and  preservation  of  fixed  ferry  facilities  of
municipal  and  privately owned ferry lines for transportation purposes,
and the payment of debt service required on any bonds,  notes  or  other
obligations  and  related  expenses  for  highway,  parkway,  bridge and

S. 2607--D                         220                        A. 3007--D

project costs for: construction, reconstruction,  improvement,  recondi-
tioning  and  preservation of rail freight facilities and intercity rail
passenger  facilities  and  equipment;   construction,   reconstruction,
improvement,  reconditioning  and  preservation  of state, municipal and
privately owned ports; construction, reconstruction, improvement, recon-
ditioning  and  preservation  of  municipal  airports;  privately  owned
airports and aviation capital facilities, excluding airports operated by
the  state or operated by a bi-state municipal corporate instrumentality
for which federal funding is  not  available  provided  the  project  is
consistent  with  an  approved airport layout plan; construction, recon-
struction, enhancement, improvement, replacement, reconditioning, resto-
ration, rehabilitation and preservation of state, county, town, city and
village roads, highways, parkways and bridges; and construction,  recon-
struction,  improvement,  reconditioning and preservation of fixed ferry
facilities of municipal and privately owned ferry lines for  transporta-
tion  purposes,  purposes  authorized  on or after the effective date of
this section. Beginning with disbursements made on and after  the  first
day  of  April, nineteen hundred ninety-three, moneys in such fund shall
be available to pay such costs or expenses made  pursuant  to  appropri-
ations or reappropriations made during the state fiscal year which began
on  the first of April, nineteen hundred ninety-two. Beginning the first
day of April, nineteen hundred ninety-three, moneys in such  fund  shall
also  be  used for [payments] TRANSFERS to the general debt service fund
AND THE REVENUE BOND TAX FUND of amounts equal to [amounts] THAT RESPEC-
TIVELY required for service contract AND FINANCING AGREEMENT payments as
provided and authorized by section three hundred eighty  of  the  public
authorities  law [and by], section eleven of chapter three hundred twen-
ty-nine of the laws of nineteen  hundred  ninety-one,  as  amended,  AND
SECTIONS SIXTY-EIGHT-C AND SIXTY-NINE-O OF THIS CHAPTER.
  S  61.  Subdivision  5  of  section  89-b  of the state finance law is
amended by adding a new paragraph c to read as follows:
  C. IN ADDITION TO THE PURPOSES FOR WHICH MONEYS IN THE DEDICATED HIGH-
WAY AND BRIDGE TRUST FUND CAN BE USED AS DESCRIBED IN  THIS  SUBSECTION,
SUBJECT  TO APPROPRIATION, AFTER MEETING THE REQUIREMENTS OF SUBDIVISION
THREE OF THIS SECTION, SUCH MONEYS SHALL BE USED  FOR  TRANSFER  TO  THE
REVENUE  BOND  TAX  FUND, AS ESTABLISHED BY SECTION NINETY-TWO-Z OF THIS
ARTICLE, IN AN AMOUNT EQUAL TO THAT  REQUIRED  FOR  FINANCING  AGREEMENT
PAYMENTS  PAID  ON  BONDS  AUTHORIZED  PURSUANT TO SECTION THREE HUNDRED
EIGHTY-FIVE OF THE  PUBLIC  AUTHORITIES  LAW,  AND  ISSUED  PURSUANT  TO
SECTIONS SIXTY-EIGHT-B AND SIXTY-NINE-N OF THIS CHAPTER.
  S  62.  Subdivision  3  of  section  97-g of the state finance law, as
amended by section 1 of subpart A of part C of chapter 97 of the laws of
2011, is amended to read as follows:
  3. Moneys of the fund shall be available to the commissioner of gener-
al services for the purchase of food, supplies and equipment  for  state
agencies,  and  for  the  purpose of furnishing or providing centralized
services to or for state agencies; provided  further  that  such  moneys
shall  be available to the commissioner of general services for purposes
pursuant to items (d) and (f) of subdivision four of this section to  or
for  political subdivisions. Beginning the first day of April, two thou-
sand two, moneys in such fund shall also be  transferred  by  the  state
comptroller  to  the  revenue  bond tax fund account of the general debt
service fund in amounts equal to those required for payments to  author-
ized  issuers  for  revenue  bonds issued pursuant to article five-C AND
ARTICLE FIVE-F of this chapter for the purpose of  lease  purchases  and

S. 2607--D                         221                        A. 3007--D

installment  purchases  by  or  for  state agencies and institutions for
personal or real property purposes.
  S  63.  Subdivision  (j) of section 92-dd of the state finance law, as
added by section 56 of part PP of chapter 56 of the  laws  of  2009,  is
amended to read as follows:
  (j)  The state comptroller shall transfer from the HCRA resources fund
to the general debt service fund, revenue bond tax fund (311.02) amounts
equal to the debt service paid for bonds, notes,  or  other  obligations
issued  PURSUANT TO ARTICLE FIVE-C AND ARTICLE FIVE-F OF THIS CHAPTER to
finance the HEAL NY capital grant program authorized pursuant to section
sixteen hundred eighty-j of the public authorities law.
  S 64. The state finance law is amended by adding a new section 93-a to
read as follows:
  S 93-A. NEW YORK STATE STORM RECOVERY CAPITAL FUND.  1. (A)  THERE  IS
HEREBY  ESTABLISHED  IN  THE  JOINT  CUSTODY  OF THE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
"NEW YORK STATE STORM RECOVERY CAPITAL FUND".
  (B)  THE SOURCES OF FUNDS SHALL CONSIST OF ALL MONEYS COLLECTED THERE-
FOR, OR MONEYS CREDITED, APPROPRIATED OR TRANSFERRED  THERETO  FROM  ANY
OTHER FUND OR SOURCE PURSUANT TO LAW, OR ANY OTHER MONEYS MADE AVAILABLE
FOR  THE  PURPOSES OF THE FUND. ANY INTEREST RECEIVED BY THE COMPTROLLER
ON MONEYS ON DEPOSIT SHALL BE RETAINED IN AND BECOME A PART OF THE FUND,
UNLESS OTHERWISE DIRECTED BY LAW.
  2. FOLLOWING APPROPRIATION BY THE LEGISLATURE,  MONEYS  IN  THE  STORM
RECOVERY CAPITAL FUND SHALL BE AVAILABLE TO FINANCE THE REPAIR, REHABIL-
ITATION,  OR  REPLACEMENT OF CAPITAL WORKS OR PURPOSES DAMAGED BY HURRI-
CANE SANDY OR ANY FUTURE NATURAL DISASTER EXPECTED TO  BE  ELIGIBLE  FOR
REIMBURSEMENT  BY  THE  FEDERAL  EMERGENCY MANAGEMENT AGENCY (FEMA), THE
FEDERAL TRANSIT ADMINISTRATION (FTA), THE FEDERAL HIGHWAY ADMINISTRATION
(FHWA) AND ANY OTHER FEDERAL REIMBURSEMENT  SOURCE.  NO  MONEY  IN  THIS
ACCOUNT MAY BE EXPENDED FOR ANY PROJECT UNTIL THE DIRECTOR OF THE BUDGET
HAS  DETERMINED THAT THERE IS A SUBSTANTIAL LIKELIHOOD THAT THE COSTS OF
SUCH PROJECT SHALL BE REIMBURSED BY FEDERAL SOURCES. THE DIRECTOR  SHALL
ISSUE  FORMAL  RULES  THAT SET FORTH THE PROCESS BY WHICH HE OR SHE WILL
DETERMINE WHETHER THERE IS A SUBSTANTIAL LIKELIHOOD OF REIMBURSEMENT  BY
FEDERAL SOURCES.
  S  65.  Subdivision 1 of section 45 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, as amended by section 49 of part U of chapter 59 of the laws
of 2012, is amended to read as follows:
  1.  Notwithstanding  the  provisions of any other law to the contrary,
the urban development corporation of the state of  New  York  is  hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the implementation of a NY-SUNY AND NY-CUNY
2020  challenge  grant  program subject to the approval of a NY-SUNY AND
NY-CUNY 2020 plan or plans by the governor and EITHER the chancellor  of
the state university of New York OR THE CHANCELLOR OF THE CITY UNIVERSI-
TY  OF NEW YORK, AS APPLICABLE.  The aggregate principal amount of bonds
authorized to be issued  pursuant  to  this  section  shall  not  exceed
[$110,000,000]  $220,000,000, excluding bonds issued to fund one or more
debt service reserve funds, to pay costs of issuance of such bonds,  and
bonds  or  notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the corporation shall not  be
a  debt  of  the  state,  and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated  by
the  state  to  the  corporation  for  principal,  interest, and related

S. 2607--D                         222                        A. 3007--D

expenses pursuant to a service contract and such bonds and  notes  shall
contain  on  the  face  thereof  a  statement to such effect. Except for
purposes of complying with  the  internal  revenue  code,  any  interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
  S  65-a.  Section  16  of chapter 260 of the laws of 2011 amending the
education law and the New York state urban development corporation  act,
relating  to establishing components of the NY-SUNY 2020 challenge grant
program, is amended to read as follows:
  S 16. This act shall take effect July 1,  2011  [and];  PROVIDED  THAT
SECTIONS  ONE,  TWO,  THREE,  FOUR, FIVE, SIX, EIGHT, NINE, TEN, ELEVEN,
TWELVE, THIRTEEN, FOURTEEN AND FIFTEEN OF THIS ACT shall expire 5  years
after such effective date when upon such date the provisions of this act
shall be deemed repealed.
  S  66. Subdivision 10-a of section 1680 of the public authorities law,
as amended by section 51 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
two  thousand, but notwithstanding any other provision of the law to the
contrary, the maximum amount of bonds and notes to be issued after March
thirty-first, two thousand two, on behalf of the state, in  relation  to
any  locally  sponsored community college, shall be six hundred [twenty-
three] SIXTY-THREE million dollars. Such amount shall  be  exclusive  of
bonds and notes issued to fund any reserve fund or funds, costs of issu-
ance  and to refund any outstanding bonds and notes, issued on behalf of
the state, relating to a locally sponsored community college.
  S 67. Paragraph (c) of subdivision 14 of section 1680  of  the  public
authorities  law,  as  amended by section 39 of part PP of chapter 56 of
the laws of 2009, is amended to read as follows:
  (c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, (i) the dormitory authority shall  not  deliver  a  series  of
bonds for city university community college facilities, except to refund
or  to  be substituted for or in lieu of other bonds in relation to city
university community college facilities pursuant to a resolution of  the
dormitory  authority adopted before July first, nineteen hundred eighty-
five or any resolution supplemental thereto, if the principal amount  of
bonds  so  to  be  issued  when  added to all principal amounts of bonds
previously issued by the dormitory authority for city university  commu-
nity  college  facilities, except to refund or to be substituted in lieu
of other bonds in relation to city university community college  facili-
ties will exceed the sum of four hundred twenty-five million dollars and
(ii)  the dormitory authority shall not deliver a series of bonds issued
for city university facilities, including community college  facilities,
pursuant  to a resolution of the dormitory authority adopted on or after
July first, nineteen hundred eighty-five, except  to  refund  or  to  be
substituted for or in lieu of other bonds in relation to city university
facilities  and except for bonds issued pursuant to a resolution supple-
mental to a resolution of the dormitory authority adopted prior to  July
first, nineteen hundred eighty-five, if the principal amount of bonds so
to  be  issued  when  added  to the principal amount of bonds previously
issued pursuant to any such resolution, except bonds issued to refund or
to be substituted for or in lieu of other  bonds  in  relation  to  city
university  facilities,  will  exceed  six billion eight hundred [forty-
three] FIFTY-THREE million two hundred thousand dollars.   The  legisla-
ture  reserves the right to amend or repeal such limit, and the state of
New York, the dormitory authority, the city university, and the fund are

S. 2607--D                         223                        A. 3007--D

prohibited from covenanting or making any other agreements with  or  for
the benefit of bondholders which might in any way affect such right.
  S  68.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
laws of 2002, providing for the  administration  of  certain  funds  and
accounts  related  to  the 2002-2003 budget, as amended by section 40 of
part BB of chapter 58 of the  laws  of  2011,  is  amended  to  read  as
follows:
  (a)  Subject  to  the provisions of chapter 59 of the laws of 2000 but
notwithstanding the provisions of section 18 of  the  urban  development
corporation  act, the corporation is hereby authorized to issue bonds or
notes in one or more series in an  aggregate  principal  amount  not  to
exceed  $67,000,000  excluding  bonds  issued  to  fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes  previ-
ously  issued,  for  the  purpose  of financing capital costs related to
homeland security and training facilities  for  the  division  of  state
police,  the division of military and naval affairs, and any other state
agency, including the reimbursement of any disbursements made  from  the
state  capital projects fund, and is hereby authorized to issue bonds or
notes in one or more series in an  aggregate  principal  amount  not  to
exceed  [$205,800,000]  $220,800,000, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs  of  issuance  of  such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued, for the purpose of financing improvements to
State office buildings and other facilities located statewide, including
the  reimbursement  of  any  disbursements  made  from the state capital
projects fund. Such bonds and notes of the corporation shall  not  be  a
debt  of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those  appropriated  by  the
state  to the corporation for debt service and related expenses pursuant
to any service contracts executed pursuant to subdivision  (b)  of  this
section,  and  such  bonds and notes shall contain on the face thereof a
statement to such effect.
  S 69. The section heading and subdivision 1 of section  386-b  of  the
public  authorities  law, as added by section 48 of part U of chapter 59
of the laws of 2012, is amended to read as follows:
  Financing of peace bridge  AND  TRANSPORTATION  CAPITAL  projects.  1.
Notwithstanding any other provision of law to the contrary, the authori-
ty,  the  dormitory  authority and the urban development corporation are
hereby authorized to issue bonds or notes in one or more series for  the
purpose  of  financing  peace bridge projects AND CAPITAL COSTS OF STATE
AND LOCAL HIGHWAYS, PARKWAYS, BRIDGES, THE NEW YORK STATE THRUWAY, INDI-
AN RESERVATION ROADS, AND FACILITIES, AND TRANSPORTATION  INFRASTRUCTURE
PROJECTS INCLUDING AVIATION PROJECTS, NON-MTA MASS TRANSIT PROJECTS, AND
RAIL  SERVICE  PRESERVATION  PROJECTS,  INCLUDING  WORK  APPURTENANT AND
ANCILLARY THERETO.  The aggregate principal amount of  bonds  authorized
to  be  issued  pursuant  to this section shall not exceed [fifteen] TWO
HUNDRED FORTY million dollars [($15,000,000)] ($240,000,000),  excluding
bonds  issued  to  fund  one  or more debt service reserve funds, to pay
costs of issuance of such bonds, and to refund or otherwise  repay  such
bonds or notes previously issued. Such bonds and notes of the authority,
the  dormitory authority and the urban development corporation shall not
be a debt of the state, and the state shall not be liable  thereon,  nor
shall  they be payable out of any funds other than those appropriated by
the state to the authority, the dormitory authority and the urban devel-
opment corporation for principal, interest, and related expenses  pursu-

S. 2607--D                         224                        A. 3007--D

ant  to a service contract and such bonds and notes shall contain on the
face thereof a statement to such effect. Except for purposes of  comply-
ing  with  the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
  S  69-a. Paragraph (c) of subdivision 19 of section 1680 of the public
authorities law, as amended by section 52 of part U of chapter 59 of the
laws of 2012, is amended to read as follows:
  (c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, the dormitory authority shall not issue any  bonds  for  state
university  educational  facilities  purposes if the principal amount of
bonds to be issued when added to the aggregate principal amount of bonds
issued by the dormitory authority on  and  after  July  first,  nineteen
hundred  eighty-eight  for  state university educational facilities will
exceed ten  billion  [three]  FOUR  hundred  [four]  TWENTY-TWO  million
dollars;  provided,  however, that bonds issued or to be issued shall be
excluded from such limitation if: (1) such bonds are  issued  to  refund
state  university  construction  bonds and state university construction
notes previously issued by the housing finance agency; or (2) such bonds
are issued to refund bonds of the authority or other obligations  issued
for  state  university  educational  facilities purposes and the present
value of the aggregate debt service on  the  refunding  bonds  does  not
exceed  the  present  value  of  the aggregate debt service on the bonds
refunded thereby; provided,  further  that  upon  certification  by  the
director  of  the  budget  that the issuance of refunding bonds or other
obligations issued between April first, nineteen hundred ninety-two  and
March  thirty-first,  nineteen  hundred  ninety-three will generate long
term economic benefits to the state, as  assessed  on  a  present  value
basis,  such  issuance will be deemed to have met the present value test
noted above. For purposes of this subdivision, the present value of  the
aggregate  debt  service  of  the refunding bonds and the aggregate debt
service of the bonds refunded, shall be calculated by utilizing the true
interest cost of the refunding bonds, which shall be that  rate  arrived
at  by doubling the semi-annual interest rate (compounded semi-annually)
necessary to discount the debt service payments on the  refunding  bonds
from  the  payment  dates  thereof to the date of issue of the refunding
bonds to the purchase price of the refunding bonds,  including  interest
accrued  thereon  prior  to  the  issuance thereof. The maturity of such
bonds, other than bonds issued to refund outstanding  bonds,  shall  not
exceed  the  weighted  average  economic life, as certified by the state
university construction fund, of the facilities in connection with which
the bonds are issued, and in any case not  later  than  the  earlier  of
thirty  years  or  the  expiration of the term of any lease, sublease or
other agreement relating  thereto;  provided  that  no  note,  including
renewals  thereof,  shall mature later than five years after the date of
issuance of such note. The legislature reserves the right  to  amend  or
repeal  such  limit, and the state of New York, the dormitory authority,
the state university of New York, and the state university  construction
fund are prohibited from covenanting or making any other agreements with
or  for  the  benefit  of bondholders which might in any way affect such
right.
  S 69-b. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 48 to read as follows:
  S 48. AUTHORIZATION  FOR  TRANSPORTATION  INFRASTRUCTURE  FINANCE  AND
INNOVATION ACT LOANS. 1. (A) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER
LAW  TO  THE  CONTRARY,  EACH OF THE AUTHORIZED ISSUERS, AS SUCH TERM IS

S. 2607--D                         225                        A. 3007--D

DEFINED IN PARAGRAPHS (A) AND (B) OF SUBDIVISION 1 OF  SECTION  68-A  OF
THE  STATE  FINANCE  LAW, ARE HEREBY AUTHORIZED TO ACCEPT TRANSPORTATION
INFRASTRUCTURE FINANCE AND INNOVATION ACT (TIFIA) LOANS FROM THE  UNITED
STATES  OF AMERICA, SUBJECT TO ANY APPLICABLE AGREEMENT WITH BONDHOLDERS
OR NOTEHOLDERS,  TO  ENTER  INTO  CONTRACTS,  SECURED  LOAN  AGREEMENTS,
SERVICE  AGREEMENTS  OR  REPAYMENT AGREEMENTS AND TO EXECUTE ALL INSTRU-
MENTS  NECESSARY,  CONVENIENT  OR  DESIRABLE  IN  CONNECTION  THEREWITH,
INCLUDING,  ITS  BONDS,  NOTES  OR OTHER OBLIGATIONS EVIDENCING ANY SUCH
LOAN FROM THE UNITED STATES OF AMERICA, AND  TO  PLEDGE  AND  ASSIGN  AS
SECURITY  FOR  ANY  SUCH  GRANTS OR LOANS, BONDS OR NOTES ISSUED BY SUCH
AUTHORIZED  ISSUER  OR  PAYMENTS  DUE  TO  SUCH  AUTHORIZED  ISSUER   IN
CONNECTION  THEREWITH OR REVENUES OF SUCH AUTHORIZED ISSUER, AS APPLICA-
BLE. THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO BE ISSUED  BY
THE  AUTHORIZED  ISSUERS PURSUANT TO THIS SECTION SHALL NOT EXCEED SEVEN
HUNDRED FIFTY MILLION DOLLARS, EXCLUDING BONDS ISSUED  TO  FUND  ONE  OR
MORE DEBT SERVICE RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS,
AND  BONDS,  NOTES,  OR  OTHER OBLIGATIONS ISSUED TO REFUND OR OTHERWISE
REPAY SUCH BONDS, NOTES, OR OTHER OBLIGATIONS PREVIOUSLY ISSUED. IF SUCH
BONDS, NOTES, OR OTHER OBLIGATIONS ARE SECURED  BY  A  SERVICE  CONTRACT
WITH  THE  STATE OF NEW YORK, SUCH BONDS, NOTES, OR OTHER OBLIGATIONS OF
THE AUTHORIZED ISSUERS SHALL NOT BE A DEBT OF THE STATE, AND  THE  STATE
SHALL  NOT BE LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY FUNDS
OTHER THAN THOSE APPROPRIATED BY THE STATE TO THE AUTHORIZED ISSUERS FOR
PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT TO A SERVICE CONTRACT
AND SUCH BONDS, NOTES, AND OTHER OBLIGATIONS SHALL CONTAIN ON  THE  FACE
THEREOF  A  STATEMENT  TO  SUCH EFFECT. EXCEPT FOR PURPOSES OF COMPLYING
WITH THE INTERNAL REVENUE CODE,  ANY  INTEREST  INCOME  EARNED  ON  BOND
PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
  (B)  ANY  BONDS,  NOTES,  OR OTHER OBLIGATIONS ISSUED PURSUANT TO THIS
SECTION SHALL (I) BE IN  FURTHERANCE  OF  CAPITAL  PROJECTS  AND  PUBLIC
PURPOSES  CONSISTENT  WITH  THE  OBJECTIVES  OF THE TIFIA LOANS FROM THE
UNITED STATES OF AMERICA, AND (II) ANY SUCH FINANCINGS SHALL  PROVIDE  A
DEMONSTRABLE BENEFIT TO THE STATE OF NEW YORK AND THE AUTHORIZED ISSUERS
THROUGH  A  LOWER COST OF FINANCING THAN COULD OTHERWISE BE ACHIEVED, AS
EVIDENCED BY A REPORT FROM AN INDEPENDENT FINANCIAL ADVISOR.
  2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, IN
ORDER TO ASSIST THE AUTHORIZED ISSUERS IN UNDERTAKING  THE  TIFIA  LOANS
FROM THE UNITED STATES OF AMERICA, THE STATE OF NEW YORK, ACTING THROUGH
THE  DIRECTOR  OF  THE BUDGET, IS HEREBY AUTHORIZED TO ENTER INTO ONE OR
MORE SERVICE CONTRACTS WITH THE AUTHORIZED ISSUERS UPON SUCH  TERMS  AND
CONDITIONS  AS  THE  DIRECTOR  OF  THE BUDGET AND THE AUTHORIZED ISSUERS
AGREE, SO AS TO ANNUALLY PROVIDE  TO  THE  AUTHORIZED  ISSUERS,  IN  THE
AGGREGATE,  A  SUM  NOT  TO  EXCEED THE PRINCIPAL, INTEREST, AND RELATED
EXPENSES REQUIRED FOR SUCH BONDS,  NOTES,  AND  OTHER  OBLIGATIONS.  ANY
SERVICE  CONTRACT  ENTERED  INTO  PURSUANT TO THIS SECTION SHALL PROVIDE
THAT THE OBLIGATION OF THE STATE TO  PAY  THE  AMOUNT  THEREIN  PROVIDED
SHALL  NOT  CONSTITUTE  A  DEBT  OF  THE STATE WITHIN THE MEANING OF ANY
CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY
TO THE EXTENT OF  MONIES  AVAILABLE  AND  THAT  NO  LIABILITY  SHALL  BE
INCURRED  BY  THE  STATE  BEYOND  THE MONIES AVAILABLE FOR SUCH PURPOSE,
SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH CONTRACT OR
ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED  AND  PLEDGED
BY  THE AUTHORIZED ISSUERS AS SECURITY FOR THEIR BONDS, NOTES, AND OTHER
OBLIGATIONS AS AUTHORIZED BY THIS SECTION.
  3. THE STATE COMPTROLLER IS HEREBY  AUTHORIZED  TO  RECEIVE  FROM  THE
AUTHORIZED  ISSUERS TIFIA LOAN PROCEEDS FROM THE UNITED STATES OF AMERI-

S. 2607--D                         226                        A. 3007--D

CA, TO REIMBURSE THE STATE FOR COSTS ASSOCIATED  WITH  CAPITAL  PROJECTS
RELATED  THERETO AND TO CREDIT SUCH AMOUNTS TO THE CAPITAL PROJECTS FUND
OR ANY OTHER APPROPRIATE FUND.
  4.  PRIOR  TO  SUBMITTING  A  LETTER  OF INTEREST TO THE UNITED STATES
DEPARTMENT OF TRANSPORTATION FOR A TIFIA LOAN, THE DIRECTOR OF THE BUDG-
ET SHALL SUBMIT A REPORT FROM AN INDEPENDENT FINANCIAL  ADVISOR  TO  THE
SPEAKER  OF  THE  ASSEMBLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE
CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE EVIDENCING A DEMONSTRABLE BENEFIT TO  THE  STATE  OF
NEW  YORK  THROUGH  A  LOWER  COST  OF FINANCING THAN COULD OTHERWISE BE
ACHIEVED.
  S 69-c. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 49 to read as follows:
  S 49. 1. NOTWITHSTANDING THE  PROVISIONS  OF  ANY  OTHER  LAW  TO  THE
CONTRARY, THE DORMITORY AUTHORITY AND THE CORPORATION ARE HEREBY AUTHOR-
IZED  TO  ISSUE  BONDS OR NOTES IN ONE OR MORE SERIES FOR THE PURPOSE OF
FUNDING PROJECT COSTS FOR THE STATE AND MUNICIPAL FACILITIES PROGRAM AND
OTHER STATE COSTS ASSOCIATED WITH SUCH CAPITAL PROJECTS.  THE  AGGREGATE
PRINCIPAL  AMOUNT  OF  BONDS  AUTHORIZED  TO  BE ISSUED PURSUANT TO THIS
SECTION SHALL NOT EXCEED  THREE  HUNDRED  EIGHTY-FIVE  MILLION  DOLLARS,
EXCLUDING  BONDS  ISSUED TO FUND ONE OR MORE DEBT SERVICE RESERVE FUNDS,
TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS  OR  NOTES  ISSUED  TO
REFUND  OR  OTHERWISE  REPAY SUCH BONDS OR NOTES PREVIOUSLY ISSUED. SUCH
BONDS AND NOTES OF THE DORMITORY AUTHORITY AND THE CORPORATION SHALL NOT
BE A DEBT OF THE STATE, AND THE STATE SHALL NOT BE LIABLE  THEREON,  NOR
SHALL  THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE APPROPRIATED BY
THE STATE TO THE DORMITORY AUTHORITY AND THE CORPORATION FOR  PRINCIPAL,
INTEREST,  AND  RELATED EXPENSES PURSUANT TO A SERVICE CONTRACT AND SUCH
BONDS AND NOTES SHALL CONTAIN ON THE FACE THEREOF A  STATEMENT  TO  SUCH
EFFECT. EXCEPT FOR PURPOSES OF COMPLYING WITH THE INTERNAL REVENUE CODE,
ANY  INTEREST  INCOME  EARNED ON BOND PROCEEDS SHALL ONLY BE USED TO PAY
DEBT SERVICE ON SUCH BONDS.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IN
ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE CORPORATION IN UNDERTAK-
ING  THE FINANCING FOR PROJECT COSTS FOR THE STATE AND MUNICIPAL FACILI-
TIES  PROGRAM  AND  OTHER  STATE  COSTS  ASSOCIATED  WITH  SUCH  CAPITAL
PROJECTS,  THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER INTO
ONE OR MORE SERVICE CONTRACTS  WITH  THE  DORMITORY  AUTHORITY  AND  THE
CORPORATION,  NONE  OF WHICH SHALL EXCEED THIRTY YEARS IN DURATION, UPON
SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND THE DORMITO-
RY AUTHORITY AND THE CORPORATION AGREE, SO AS TO ANNUALLY PROVIDE TO THE
DORMITORY AUTHORITY AND THE CORPORATION, IN THE AGGREGATE, A SUM NOT  TO
EXCEED  THE  PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR SUCH
BONDS AND NOTES. ANY SERVICE CONTRACT  ENTERED  INTO  PURSUANT  TO  THIS
SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT
THEREIN  PROVIDED  SHALL  NOT  CONSTITUTE A DEBT OF THE STATE WITHIN THE
MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED
EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND THAT  NO  LIABILITY
SHALL  BE  INCURRED  BY  THE  STATE BEYOND THE MONIES AVAILABLE FOR SUCH
PURPOSE, SUBJECT TO ANNUAL APPROPRIATION BY THE  LEGISLATURE.  ANY  SUCH
CONTRACT  OR  ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED
AND PLEDGED BY THE DORMITORY AUTHORITY AND THE CORPORATION  AS  SECURITY
FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS SECTION.
  3.  THE COMPTROLLER IS HEREBY AUTHORIZED TO RECEIVE FROM THE DORMITORY
AUTHORITY AND THE CORPORATION ANY  PORTION  OF  BOND  PROCEEDS  PAID  TO

S. 2607--D                         227                        A. 3007--D

PROVIDE  FUNDS  FOR OR REIMBURSE THE STATE FOR ITS COSTS ASSOCIATED WITH
SUCH CAPITAL PROJECT COSTS AND TO CREDIT SUCH  AMOUNTS  TO  THE  CAPITAL
PROJECTS FUND OR ANY OTHER APPROPRIATE FUND.
  S  70.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2013;  provided
that:
  (a)  sections one through nine, and sections thirteen through eighteen
of this act shall expire March  31,  2014,  when  upon  such  date,  the
provisions of such sections shall be deemed repealed;
  (b)  the  amendments  to  subdivision  3  of section 99-h of the state
finance law made by section twenty-three of this act shall  take  effect
on  the  same  date  as the reversion of such subdivision as provided in
section 3 of part W of chapter 60 of the laws of 2011, as amended;
  (c) the amendments to subdivision 5 of  section  3234  of  the  public
authorities law made by section forty-five of this act shall take effect
upon  the  expiration  and  reversion of such subdivision as provided in
section 59 of part BB of chapter 58 of the laws of 2011;
  (d) the amendments to paragraph a of subdivision 5 of section 89-b  of
the state finance law made by section sixty of this act shall be subject
to  the expiration and reversion of such paragraph pursuant to section 2
of part B of chapter 84 of the laws of 2002, as amended, when upon  such
date  the  provisions  of section sixty-a of this act shall take effect;
and
  (e) the amendments to subdivision 3  of  section  97-g  of  the  state
finance  law  made by section sixty-two of this act shall not affect the
expiration and reversion of such subdivision  and  shall  be  deemed  to
expire therewith.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the applicable effective date of Parts A through HH of this act shall be
as specifically set forth in the last section of such Parts.

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