BILL NUMBER:A9777

TITLE OF BILL:  An act to amend the tax law, in relation to the distrib-
ution   of  monies  collected  from  the  public  safety  communications
surcharge

PURPOSE OR GENERAL IDEA OF BILL: This  bill  will  establish  an  annual
emergency  communications competitive grant program in the amount of $25
million per year, commencing in FY 2010-11.

SUMMARY OF SPECIFIC PROVISIONS: New York State Tax Law §186-f is amended
to dedicate $25 million per year of funds generated by the public safety
communications surcharge to a competitive grant program to assist county
governments with costs associated with the maintenance  and/or  improve-
ment  of  emergency communications systems.   Priority would go to those
grant applicants who propose system enhancements that  are  designed  to
achieve regional or statewide interoperability.

JUSTIFICATION: The public safety communications surcharge was originally
conceived as a funding mechanism for the statewide operation of a cellu-
lar  911 telecommunications system and later, for the Statewide Wireless
Network (SWN). After years of developing bid  criteria,  evaluating  bid
proposals,  design and development, the state has cancelled the contract
with M/A-COM for the development of the SWN after  repeated  test  fail-
ures. Any funds expended by the state towards the development of the SWN
(approximately  $51.5 million) are supposed to be reimbursed by M/A-CON.
              

There has been no indication that 'the state will  re-let  the  contract
for a SWN.

Currently  about $198 million per year is generated by the public safety
communications surcharge.  Of that amount, about $119,460,000 was depos-
ited in the Public Safety Communications Account (PSCA) in  FY  2008-09;
the remainder went to the General Fund. Since the Public Safety Communi-
cations Account   started FY 2008-09 with a balance of $110,377,000, the
account  balance  was increased to $229,837,000 with the addition of the
FY 2008-09 deposit.

In February 2009, the state's Deficit Reduction Plan (Chapter 2  of  the
Laws  of  2009)  authorized $65 million to be swept from the PSCA to the
General Fund. In addition, Tax Law §186-f currently directs the  follow-
ing  annual  payments from the PSCA: $25.5 million for the State Police,
$1.5 million for the Emergency Services Revolving Loan Fund, $10 million
for the Local Reimbursement Grant Program  (for  county  Public  Service
Answering  Points) and the costs associated for the SWN, as appropriated
by the Legislature. After accounting  for  the  statutory  distributions
from  the  PSCA,  the  account  still  had an end of fiscal year 2008-09
balance of approximately $54,529,000. It is part of  this  balance  that
this  bill seeks to return to county governments to assist them with the
cost of providing essential emergency services communications systems.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: No fiscal impact to the state General Fund  as  all
funds  would  come  from  the  dedicated  Public  Safety  Communications
Account.

EFFECTIVE DATE: This act shall take effect immediately.