Assembly Bill A41011A

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

    S. 11--A                                                A. 11--A

                      Second Extraordinary Session

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

                             August 3, 2010
                               ___________

IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed  to  the Committee on Rules -- committee discharged and said
  bill committed to the Committee on Finance  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at  request  of  the
  Governor) -- read once and referred to the Committee on Ways and Means
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the state finance law, in relation to  establishing  the
  FMAP  contingency fund and providing for the repeal of such provisions
  upon expiration thereof (Part A); and to amend chapter 100 of the laws
  of 2010 relating to making appropriations for the support  of  govern-
  ment,  in relation to the effectiveness thereof; and to repeal certain
  provisions of such chapter relating thereto and relating to state  aid
  payment dates to school districts (Part B)

  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 2010-2011
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through B. 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 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12314-05-0
              

S. 11--A                            2                           A. 11--A

                                 PART A

  Section 1. Notwithstanding any other provision of law to the contrary,
to  maintain  a balanced budget in the event that the federal government
does not enact an  extension  of  enhanced  Federal  Medical  Assistance
Percentages  ("FMAP") for the state of New York in the amount assumed in
the 2010--2011 financial plan, the individual payments from  all  undis-
bursed  general  fund  and  state special revenue fund aid to localities
appropriations, commencing on September 16,  2010,  shall  be  uniformly
reduced  by  the  percentage  set  forth  in the written allocation plan
required by this section and such reduction shall  be  applied,  to  the
extent  practicable,  in  equal  amounts  during the fiscal year.   Such
percent reduction to payments shall be calculated on  the  amounts  that
were undisbursed as of September 16, 2010 to provide for a maximum annu-
al reduction of $1,085,000,000 by the end of the 2010--2011 state fiscal
year.    Beginning  on  September 16, 2010, all payments from non-exempt
appropriations shall be reduced by the percentage set forth in the writ-
ten allocation plan required by this section.   The following  types  of
appropriations  shall  be  exempt  from  uniform  reduction:  (a) public
assistance payments for families and individuals and payments for eligi-
ble aged, blind and disabled  persons  related  to  supplemental  social
security;  (b)  any  reductions  that  would  violate  federal  law; (c)
payments of debt service and related expenses for  which  the  state  is
constitutionally obligated to pay debt service or is contractually obli-
gated  to pay debt service, subject to an appropriation, including where
the state has a contingent  contractual  obligation;  (d)  payments  the
state  is  obligated  to make pursuant to court orders or judgments; (e)
payments for CUNY senior colleges; and (f) payments to the  metropolitan
transportation  authority  related  to the mobility tax.  With regard to
Medicaid payments, such reductions shall be subject to  the  receipt  of
all  necessary  federal  approvals.  Reductions under this section shall
commence on September 16, 2010 and be made in accordance with a  written
allocation  plan  prepared by the director of the budget, which shall be
filed with the state comptroller, the chairman  of  the  senate  finance
committee  and  the  chairman  of the assembly ways and means committee.
Such written allocation plan shall include a summary of the  methodology
for  calculating  the percentage reductions to the payments from non-ex-
empt appropriations and cash  disbursements  and  the  reasons  for  any
exemptions,  and  a  detailed schedule of the reductions and exemptions.
The director of the budget shall prepare appropriately  reduced  certif-
icates, which shall be filed with the state comptroller, the chairman of
the  senate  finance committee and the chairman of the assembly ways and
means committee. Upon request of the director of the budget,  the  comp-
troller  shall  transfer  the  cash  equal  to the uniform appropriation
reduction to the FMAP contingency fund established pursuant  to  section
99-r  of the state finance law to the extent such cash is available.  If
an extension of enhanced FMAP is not enacted by November 15,  2010,  the
governor,  temporary  president  of  the  senate, and the speaker of the
assembly shall cause their respective appropriate personnel to  meet  to
review the impact of the uniform reductions and discuss potential alter-
native reductions.
  S  2.  The payment reductions shall be subject to the following condi-
tions: (a) if at any time after the effective date of  this  section  an
extension of enhanced FMAP has been enacted by the Federal government in
an amount equal to or greater than $1,085,000,000 in the fiscal year two
thousand  ten--two thousand eleven financial plan, no further reductions

S. 11--A                            3                           A. 11--A

shall occur and all payment amounts withheld pursuant  to  this  section
shall  be  paid to the recipients from which they were withheld by March
31, 2011 or in the case of Medicaid payments,  as  soon  as  practicable
following  receipt  of all necessary federal approvals; (b) if an exten-
sion of enhanced FMAP is not enacted by March 31, 2011,  the  reductions
authorized by this section shall continue until the total amount of such
reductions  is  equal  to  $1,085,000,000;  or  (c)  if  an extension of
enhanced FMAP is enacted in  an  amount  less  than  the  $1,085,000,000
assumed  in the fiscal year two thousand ten--two thousand eleven finan-
cial plan, the reductions authorized  by  this  section  shall  continue
until  the  total  amount  of such reductions is equal to the difference
between $1,085,000,000 and the amount of enhanced FMAP provided,  howev-
er,  if  an extension of enhanced FMAP is enacted in an amount less than
the $1,085,000,000 and at the time of the enactment the total amount  of
the  reductions  is  equal  to  or  greater than the amount by which the
extension differs from the amount in the fiscal year two thousand  ten--
two  thousand eleven financial plan, no further reductions shall be made
and the amount of  the  reductions  previously  made  that  exceeds  the
difference  between $1,085,000,000 and the amount of the extension shall
be paid to the recipients subject to reduced payments in  proportion  to
those  reductions,  and  such  payments shall be made by March 31, 2011.
Notwithstanding any other provision of law to  the  contrary,  liability
for amounts due under any appropriation or other applicable provision of
law  subject  to uniform reduction pursuant to this act shall be reduced
by March 31, 2011 in the amounts equal to any payment  reduction  up  to
$1,085,000,000, and the appropriation shall be reduced by a commensurate
amount  pursuant  to subdivisions (b) and (c) of this section, as appro-
priate.   Notwithstanding any inconsistent provision  of  law,  rule  or
regulation,  the  effectiveness  of  the provisions of sections 2807 and
3614 of the public health law, section 18 of chapter 2 of  the  laws  of
1988,  and  18  NYCRR  S  505.14(h),  as  they relate to time frames for
notice, approval or  certification  of  rates  of  payment,  are  hereby
suspended  and  without force or effect for purposes of implementing the
provisions of this act.
  S 3. On March 31, 2011, the director of the budget shall calculate the
difference, if any, between the actual closing balance  in  the  general
fund on March 31, 2011 and the closing balance projected by the division
of the budget in the 2010-11 enacted budget financial plan. If the actu-
al  closing balance is in excess of the projected balance, the amount of
the difference shall be disbursed by April 15, 2011 or, in the  case  of
Medicaid,  as soon as practicable following the receipt of all necessary
federal approvals, to uniformly mitigate  the  uniform  reductions  made
pursuant  to  section  one  of this act, provided, however, that no such
amount shall be available for disbursement until  the  director  of  the
budget  certifies  that  (a)  the general fund made all planned payments
anticipated in the 2010-11 financial plan including tax refunds, without
the issuance of deficit bonds or notes or extraordinary cash  management
actions, (b) the balances in the tax stabilization reserve and rainy day
reserve  (together,  the  "rainy  day reserves") have been restored to a
level equal to the level as of the start of the  fiscal  year,  and  (c)
other designated balances have been maintained, as provided by law.
  S  4. The state finance law is amended by adding a new section 99-r to
read as follows:
  S 99-R. FMAP CONTINGENCY FUND.  1. THERE IS HEREBY ESTABLISHED IN  THE
STATE TREASURY AN ACCOUNT IN THE GENERAL FUND KNOWN AS THE "FMAP CONTIN-
GENCY FUND".

S. 11--A                            4                           A. 11--A

  2.  THE  FUND SHALL CONSIST OF ALL MONIES REQUIRED BY LAW TO BE TRANS-
FERRED TO THE FUND.
  3.  MONIES  IN  THE  FUND  SHALL BE DISBURSED, WHEN ALLOCATED, FOR THE
PURPOSE OF MAKING PAYMENTS THAT HAD PREVIOUSLY BEEN SUBJECT TO REDUCTION
PURSUANT TO LAW AS A RESULT OF FEDERAL GOVERNMENT FAILURE  TO  ENACT  AN
EXTENSION OF ENHANCED FEDERAL MEDICAL ASSISTANCE PERCENTAGES ("FMAP").
  4. IF BY FEBRUARY FIFTEENTH, TWO THOUSAND ELEVEN, ENHANCED FMAP IS NOT
EXTENDED   OR   IS   EXTENDED  IN  AN  AMOUNT  THAT  IS  LESS  THAN  THE
$1,085,000,000 IN THE FISCAL YEAR TWO THOUSAND TEN--TWO THOUSAND  ELEVEN
FINANCIAL  PLAN  AS  DETERMINED BY THE DIRECTOR OF THE BUDGET, MONIES IN
THE FUND ON SUCH DATE NOT REQUIRED TO BE PAID PURSUANT TO THE PROVISIONS
OF SECTION TWO OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  TEN  WHICH
ADDED  THIS  SECTION  MAY  BE  TRANSFERRED  TO  THE GENERAL FUND AND ANY
AMOUNTS DEPOSITED IN THE FUND AFTER SUCH DATE MAY BE TRANSFERRED TO  THE
GENERAL FUND UPON THE REQUEST OF THE DIRECTOR OF THE BUDGET.
  S  5.  This act shall take effect immediately; provided, however, that
section three of this act shall take effect upon the  enactment  of  the
2010-2011  budget,  and provided further, that this act shall expire and
be deemed repealed April 15, 2011, except in the case of Medicaid,  when
such act shall expire and be deemed repealed July 1, 2011.

                                 PART B

  Section  1.    Sections  1  and  4 of chapter 100 of the laws of 2010,
relating to making appropriations for the  support  of  government,  are
REPEALED.
  S  2. Section 5 of chapter 100 of the laws of 2010, relating to making
appropriations for the support of government,  is  amended  to  read  as
follows:
  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,  2010[;
provided,  however, that upon the transfer of expenditures and disburse-
ments by the comptroller as provided in section four of  this  act,  the
appropriations  made  by  this  act and subject to such section shall be
deemed repealed].
  S 3.  Notwithstanding any provision of the law to  the  contrary,  any
payment otherwise due and payable during the month of September pursuant
to:   subparagraph (1) of paragraph a of subdivision 1 of section 3609-a
of the education law, subparagraph (2) of paragraph a of  subdivision  1
of  section 3609-a of the education law, subparagraph (3) of paragraph a
of subdivision 1 of section 3609-a of the education law, clause (vii) of
subparagraph (3) of paragraph b of subdivision 1 of  section  3609-a  of
the  education  law, subparagraph (5) of paragraph a of subdivision 2 of
section 3609-b of the education law, subdivision 1 of section 3609-d  of
the  education law, and paragraph (a) of subdivision 1 of section 3609-f
of the education law for the 2010-11 school year shall be due and  paya-
ble on or before September 30, 2010.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2010,  provided
however that notwithstanding any inconsistent provision of law, sections
one  and  two of this act shall be deemed to have been in full force and
effect on and after the effective date of chapter 100  of  the  laws  of
2010.
  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,

S. 11--A                            5                           A. 11--A

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 B of this act shall be
as specifically set forth in the last section of such Parts.