Senate Bill S3384

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

                                  3384

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 18, 2009
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cultural Affairs, Tourism,
  Parks and Recreation

AN ACT to amend the parks, recreation and historic preservation law, the
  canal law, the public authorities law,  the  transportation  law,  the
  public  officers  law and the state finance law, in relation to trans-
  ferring powers to the office of parks, recreation and historic preser-
  vation; and to repeal certain provisions of the public authorities law
  and the canal law relating thereto

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

  Section  1.  The  parks,  recreation  and historic preservation law is
amended by adding a new article 4 to read as follows:
                                 ARTICLE 4
                            CANAL CORPORATION
SECTION 4.01 CANAL CORPORATION.
        4.02 BONDING OF CANAL CORPORATION.
  S 4.01 CANAL CORPORATION. 1. THERE IS HEREBY CREATED A PUBLIC  BENEFIT
CORPORATION  KNOWN AS THE "NEW YORK STATE CANAL CORPORATION" (HEREINAFT-
ER, REFERRED TO AS THE "CANAL CORPORATION"). FOR THE  PURPOSES  OF  THIS
ARTICLE,  THE  TERM  "CANAL  CORPORATION"  SHALL MEAN THE NEW YORK STATE
CANAL CORPORATION CREATED PURSUANT TO THIS  SECTION.  THE  CANAL  CORPO-
RATION  IS SOLELY CREATED TO, AND SHALL HAVE ONLY THE POWER TO, OPERATE,
MAINTAIN, CONSTRUCT, RECONSTRUCT, IMPROVE, DEVELOP, FINANCE, AND PROMOTE
THE NEW YORK STATE CANAL SYSTEM.
  2. THE CANAL CORPORATION AND  ANY  OF  ITS  PROPERTY,  FUNCTIONS,  AND
ACTIVITIES  SHALL HAVE ALL OF THE PRIVILEGES, IMMUNITIES, TAX EXEMPTIONS
AND OTHER EXEMPTIONS OF THE OFFICE AND OF THE OFFICE'S  PROPERTY,  FUNC-
TIONS, AND ACTIVITIES. THE CANAL CORPORATION MAY DELEGATE TO ONE OR MORE
OF  ITS  MEMBERS, OR ITS OFFICERS, AGENTS AND EMPLOYEES, SUCH DUTIES AND
POWERS AS IT MAY DEEM PROPER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00880-01-9
              

S. 3384                             2

  3. NO OFFICER OR MEMBER OF THE CANAL  CORPORATION  SHALL  RECEIVE  ANY
ADDITIONAL   COMPENSATION,   EITHER   DIRECT  OR  INDIRECT,  OTHER  THAN
REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
ANCE OF HIS OR HER DUTIES, BY REASON OF HIS OR HER SERVING AS A  MEMBER,
DIRECTOR, OR TRUSTEE OF THE CANAL CORPORATION.
  4.  ALL  OFFICERS, AGENTS AND EMPLOYEES OF THE CANAL CORPORATION SHALL
BE SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAW WHICH SHALL  APPLY
TO  THE  CANAL CORPORATION AS A MUNICIPAL CORPORATION OTHER THAN A CITY.
THE CANAL CORPORATION SHALL PARTICIPATE IN THE NEW YORK STATE AND  LOCAL
EMPLOYEES' RETIREMENT SYSTEM.
  5.  THE  FISCAL YEAR OF THE CANAL CORPORATION SHALL BE THE SAME AS THE
FISCAL YEAR FOR THE OFFICE.
  6. THE CANAL CORPORATION SHALL HAVE THE POWER TO: (A)  OPERATE,  MAIN-
TAIN, CONSTRUCT, RECONSTRUCT, IMPROVE, DEVELOP, FINANCE, AND PROMOTE THE
NEW YORK STATE CANAL SYSTEM AS DEFINED IN THE CANAL LAW;
  (B) SUE AND BE SUED;
  (C) HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  (D)  MAKE  AND ALTER BY-LAWS FOR ITS ORGANIZATION AND INTERNAL MANAGE-
MENT AND MAKE RULES AND REGULATIONS GOVERNING THE USE  OF  ITS  PROPERTY
AND FACILITIES;
  (E)  APPOINT  OFFICERS,  AGENTS AND EMPLOYEES, WHO SHALL BE SUBJECT TO
SECTION ONE HUNDRED THIRTY-EIGHT-A OF  THE  CANAL  LAW,  AND  FIX  THEIR
COMPENSATION;
  (F)  MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS NECESSARY OR
CONVENIENT FOR THE EXERCISE OF ITS POWERS AND FUNCTIONS UNDER THIS CHAP-
TER;
  (G) ACQUIRE, HOLD, AND DISPOSE OF REAL OR PERSONAL  PROPERTY  FOR  ITS
CORPORATE PURPOSES;
  (H) ENGAGE THE SERVICES OF PRIVATE CONSULTANTS ON A CONTRACT BASIS FOR
RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
  (I)  PROCURE  INSURANCE AGAINST ANY LOSS IN CONNECTION WITH ITS ACTIV-
ITIES, PROPERTIES, AND OTHER ASSETS, IN SUCH AMOUNT AND FROM SUCH INSUR-
ERS AS IT DEEMS DESIRABLE;
  (J) INVEST ANY FUNDS OF THE CANAL CORPORATION,  OR  ANY  OTHER  MONIES
UNDER  ITS  CUSTODY  AND  CONTROL  NOT  REQUIRED  FOR  IMMEDIATE  USE OR
DISBURSEMENT, AT THE DISCRETION OF THE CANAL CORPORATION, IN OBLIGATIONS
OF THE STATE OR THE UNITED STATES GOVERNMENT OR OBLIGATIONS THE  PRINCI-
PAL  AND  INTEREST  OF  WHICH  ARE GUARANTEED BY THE STATE OR THE UNITED
STATES GOVERNMENT, OR IN ANY OTHER OBLIGATIONS IN WHICH THE  COMPTROLLER
OF  THE STATE IS AUTHORIZED TO INVEST PURSUANT TO SECTION NINETY-EIGHT-A
OF THE STATE FINANCE LAW;
  (K) PREPARE AND SUBMIT A CAPITAL PROGRAM PLAN PURSUANT TO SECTION  TEN
OF THE CANAL LAW;
  (L)  APPROVE AND IMPLEMENT THE NEW YORK STATE CANAL RECREATIONWAY PLAN
SUBMITTED PURSUANT TO SECTION ONE HUNDRED THIRTY-EIGHT-C  OF  THE  CANAL
LAW.  THE  CANAL  CORPORATION'S REVIEW AND APPROVAL OF THE CANAL RECREA-
TIONWAY PLAN SHALL BE BASED UPON ITS CONSIDERATION OF A GENERIC ENVIRON-
MENTAL IMPACT STATEMENT PREPARED BY THE CANAL CORPORATION IN  ACCORDANCE
WITH  ARTICLE  EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW AND THE REGU-
LATIONS THEREUNDER. PRIOR  TO  THE  IMPLEMENTATION  OF  ANY  SUBSTANTIAL
IMPROVEMENT BY THE CANAL CORPORATION ON CANAL LANDS, CANAL TERMINALS, OR
CANAL  TERMINAL  LANDS, OR THE LEASE OF CANAL LANDS, CANAL TERMINALS, OR
CANAL TERMINAL LANDS FOR SUBSTANTIAL COMMERCIAL IMPROVEMENT,  THE  CANAL
CORPORATION,  IN  ADDITION TO ANY REVIEW TAKEN PURSUANT TO SECTION 14.09
OF THIS CHAPTER, SHALL CONDUCT  A  RECONNAISSANCE  LEVEL  SURVEY  WITHIN
THREE  THOUSAND FEET OF SUCH LANDS TO BE IMPROVED OF THE TYPE, LOCATION,

S. 3384                             3

AND SIGNIFICANCE OF HISTORIC BUILDINGS, SITES, AND DISTRICTS LISTED  ON,
OR WHICH MAY BE ELIGIBLE, FOR THE STATE OR NATIONAL REGISTERS OF HISTOR-
IC PLACES. THE FINDINGS OF SUCH SURVEY SHALL BE USED TO IDENTIFY SIGNIF-
ICANT  HISTORICAL  RESOURCES  AND  TO  DETERMINE  WHETHER  THE  PROPOSED
IMPROVEMENTS ARE COMPATIBLE WITH SUCH  HISTORIC  BUILDINGS,  SITES,  AND
DISTRICTS;
  (M)  ENTER ON ANY LANDS, WATERS, OR PREMISES FOR THE PURPOSE OF MAKING
BORINGS, SOUNDINGS, AND SURVEYS; AND
  (N) ACCEPT ANY GIFTS OR ANY GRANT OF FUNDS OR PROPERTY FROM THE FEDER-
AL GOVERNMENT OR FROM THE STATE OR ANY OTHER  FEDERAL  OR  STATE  PUBLIC
BODY OR POLITICAL SUBDIVISION OR ANY OTHER PERSON AND TO COMPLY WITH THE
TERMS AND CONDITIONS THEREOF.
  7. (A) THE CANAL CORPORATION SHALL REVIEW THE BUDGET REQUEST SUBMITTED
BY  THE  CANAL  RECREATIONWAY COMMISSION PURSUANT TO SECTION ONE HUNDRED
THIRTY-EIGHT-C OF THE CANAL LAW.
  (B) THE CANAL CORPORATION, ON OR BEFORE THE FIRST DAY OF NOVEMBER, TWO
THOUSAND NINE AND ON OR BEFORE THE FIFTEENTH DAY OF  SEPTEMBER  OF  EACH
YEAR  THEREAFTER,  SHALL  SUBMIT TO THE DIRECTOR OF THE BUDGET A REQUEST
FOR THE EXPENDITURE OF FUNDS AVAILABLE FROM THE  NEW  YORK  STATE  CANAL
SYSTEM  DEVELOPMENT  FUND  PURSUANT TO SECTION NINETY-TWO-U OF THE STATE
FINANCE LAW OR AVAILABLE FROM ANY OTHER NON-FEDERAL SOURCES APPROPRIATED
FROM THE STATE TREASURY.
  (C) IN THE EVENT THAT THE REQUEST SUBMITTED BY THE  CANAL  CORPORATION
TO  THE DIRECTOR OF THE BUDGET DIFFERS FROM THE REQUEST SUBMITTED BY THE
CANAL RECREATIONWAY  COMMISSION  TO  THE  CANAL  CORPORATION,  THEN  THE
REQUEST SUBMITTED BY THE CANAL CORPORATION TO THE DIRECTOR OF THE BUDGET
SHALL  SPECIFY  THE DIFFERENCES AND SHALL SET FORTH THE REASONS FOR SUCH
DIFFERENCES.
  8. THE CANAL CORPORATION SHALL REVIEW THE RECOMMENDATIONS OF THE CANAL
RECREATIONWAY COMMISSION CONCERNING THE FUTURE USE OF CANAL LANDS IN THE
ADIRONDACK PARK ISSUED PURSUANT TO SECTION ONE HUNDRED THIRTY-EIGHT-B OF
THE CANAL LAW, AND SHALL REPORT TO THE GOVERNOR AND THE LEGISLATURE  NOT
LATER  THAN  THE  FIRST DAY OF OCTOBER, TWO THOUSAND ELEVEN, IDENTIFYING
ANY PROPERTY NOT NEEDED FOR CANAL PURPOSES THAT MAY  BE  TRANSFERRED  TO
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
  9.  THE  CANAL CORPORATION SHALL HAVE THE POWER TO ISSUE BONDS, NOTES,
OR OTHER OBLIGATIONS.
  S 4.02 BONDING OF CANAL CORPORATION. 1. THE CANAL CORPORATION IS HERE-
BY AUTHORIZED, AS AN ADDITIONAL CORPORATE PURPOSE THEREOF, TO ISSUE  ITS
BONDS,  NOTES  AND  OTHER  OBLIGATIONS  IN  CONFORMITY  WITH  APPLICABLE
PROVISIONS OF THE UNIFORM COMMERCIAL CODE FOR PURPOSES OF FINANCING  THE
CONSTRUCTION,  RECONSTRUCTION,  DEVELOPMENT  AND  IMPROVEMENT OF THE NEW
YORK STATE CANAL SYSTEM.
  2. THE CANAL CORPORATION MAY ISSUE BONDS, NOTES OR  OTHER  OBLIGATIONS
PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION IN AN AGGREGATE PRINCIPAL
AMOUNT NOT EXCEEDING SIXTY MILLION DOLLARS PLUS A  PRINCIPAL  AMOUNT  OF
BONDS,  NOTES  OR  OTHER OBLIGATIONS ISSUED (A) TO FUND ANY RELATED DEBT
SERVICE RESERVE FUND, (B) TO PROVIDE CAPITALIZED INTEREST FOR  A  PERIOD
NOT  EXCEEDING SIX MONTHS, EXCEPT THAT WHERE THE PROCEEDS OF SUCH BONDS,
NOTES OR OTHER OBLIGATIONS ARE EXPENDED ON A REVENUE-PRODUCING  PROJECT,
SUCH  PERIOD  SHALL  BE  THAT ALLOWABLE UNDER THE UNITED STATES INTERNAL
REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX, AS  AMENDED,  IN  ORDER  TO
PRESERVE  THE  EXCLUSION OF INTEREST ON SUCH BONDS, NOTES OR OTHER OBLI-
GATIONS FROM FEDERAL INCOME TAXATION, AND (C) TO PROVIDE FEES AND  OTHER
CHARGES  AND EXPENSES, INCLUDING UNDERWRITERS' DISCOUNTS, RELATED TO THE
ISSUANCE OF SUCH BONDS, NOTES AND OTHER OBLIGATIONS AND THE  MAINTENANCE

S. 3384                             4

OF  SUCH  RESERVES,  ALL  AS  DETERMINED BY THE OFFICE, EXCLUDING BONDS,
NOTES AND OTHER OBLIGATIONS ISSUED TO REFUND  OUTSTANDING  BONDS,  NOTES
AND OTHER OBLIGATIONS ISSUED PURSUANT TO THIS SECTION.
  3.  THE  CANAL  CORPORATION, IN ADDITION TO THE BONDS, NOTES AND OTHER
OBLIGATIONS AUTHORIZED PURSUANT TO SUBDIVISION TWO OF THIS SECTION,  MAY
ISSUE  BONDS,  NOTES OR OTHER OBLIGATIONS PURSUANT TO SUBDIVISION ONE OF
THIS SECTION IN AN AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING TEN  MILLION
DOLLARS  FOR  THE  PURPOSE  OF  FUNDING  CAPITAL CONSTRUCTION AND RECON-
STRUCTION PROJECTS ON THE NEW YORK STATE CANAL SYSTEM WHICH  ARE  DEEMED
BY  THE  AUTHORITY  AS  NECESSARY  DUE  TO THE EXISTENCE OF AN EMERGENCY
INVOLVING DANGER TO LIFE, SAFETY OR PROPERTY  WHICH  REQUIRES  IMMEDIATE
ACTION.  PROVIDED,  HOWEVER,  THAT NO SUCH BONDS,   NOTES OR OTHER OBLI-
GATIONS SHALL BE ISSUED PURSUANT TO THIS SUBDIVISION UNTIL THE AUTHORITY
HAS EXHAUSTED ITS AUTHORIZATION PURSUANT  TO  SUBDIVISION  TWO  OF  THIS
SECTION.
  4.  IN  COMPUTING THE TOTAL PRINCIPAL AMOUNT OF BONDS, NOTES AND OTHER
OBLIGATIONS THAT MAY AT ANY TIME BE ISSUED FOR ANY  PURPOSE  UNDER  THIS
SECTION,  THE  AMOUNT  OF  THE  BONDS,  NOTES  OR OTHER OBLIGATIONS THAT
CONSTITUTES INTEREST UNDER THE UNITED STATES INTERNAL  REVENUE  CODE  OF
NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED, SHALL BE EXCLUDED.
  5.  ALL  OF  THE PROVISIONS OF THIS TITLE RELATING TO BONDS, NOTES AND
OTHER OBLIGATIONS, WHICH ARE NOT INCONSISTENT WITH THIS  SECTION,  SHALL
APPLY  TO  OBLIGATIONS  AUTHORIZED  BY  THIS  SECTION, INCLUDING BUT NOT
LIMITED TO THE POWER TO ISSUE RENEWAL NOTES OR REFUNDING BONDS THEREOF.
  S 2. Section 2 of the canal law is amended by adding a new subdivision
24 to read as follows:
  24. "OFFICE" SHALL MEAN THE OFFICE OF PARKS, RECREATION  AND  HISTORIC
PRESERVATION.
  S 3. Section 5 of the canal law, as amended by chapter 335 of the laws
of 2001, is amended to read as follows:
  S  5. Transfer of powers and duties relating to canals and canal lands
to the [New York state thruway authority] OFFICE. The powers and  duties
of  the  commissioner  of  transportation relating to the New York state
canal system as set forth in articles one through  and  including  four-
teen,  except  article  seven, of this chapter, and except properties in
use on the effective date of this article in support of highway  mainte-
nance, equipment management and traffic signal operations of the depart-
ment  of  transportation,  are hereby transferred to and merged with the
[authority] OFFICE, to be exercised by the [authority] OFFICE on  behalf
of the people of the state of New York. In addition, the commissioner of
transportation  and  the [chairman of the authority] COMMISSIONER OF THE
OFFICE may, in their discretion, enter into an agreement  or  agreements
transferring the powers and duties of the commissioner of transportation
relating to any or all of the bridges and highways as set forth in arti-
cle  seven of this chapter, to be exercised by the [authority] OFFICE on
behalf of the people of the state of New York, and shall enter  into  an
agreement  or agreements for the financing, construction, reconstruction
or improvement of lift and movable bridges on the  canal  system.  [Such
powers  shall be in addition to other powers enumerated in title nine of
article two of the public authorities law.   All of  the  provisions  of
title  nine  of  article two of such law which are not inconsistent with
this chapter shall apply to the actions  and  duties  of  the  authority
pursuant  to this chapter.] The [authority] OFFICE shall be deemed to be
the state in exercising the powers and duties  transferred  pursuant  to
this section but for no other purposes.

S. 3384                             5

  S  4.  Section 6 of the canal law, as added by chapter 766 of the laws
of 1992, subdivisions 1, 3 and 4 and paragraph (b) of subdivision  6  as
amended  by  chapter  335  of  the  laws  of 2001, is amended to read as
follows:
  S 6. Transfer of canal lands and other assets.  1. The jurisdiction of
the  commissioner of transportation over the New York state canal system
and over all state assets, equipment and  property,  both  tangible  and
intangible,  owned or used in connection with the planning, development,
construction, reconstruction, maintenance and operation of the New  York
state  canal  system, as set forth in articles one through and including
fourteen, except article seven, of this chapter, and  except  properties
in use on the effective date of this article in support of highway main-
tenance,  equipment  management  and  traffic  signal  operations of the
department of transportation are hereby  transferred  without  consider-
ation to the [authority] OFFICE, to be held by the [authority] OFFICE in
the name of the people of the state of New York. In addition the commis-
sioner of transportation and the [chairman of the authority] COMMISSION-
ER  OF  THE  OFFICE may, in their discretion, enter into an agreement or
agreements transferring jurisdiction over any or all of the bridges  and
highways  set  forth  in  article  seven of this chapter, and any or all
state assets, equipment and  property,  both  tangible  and  intangible,
owned   or   used   in   connection   with  the  planning,  development,
construction, reconstruction, maintenance and operation of such  bridges
and  highways,  which  shall be transferred without consideration to the
[authority] OFFICE, to be held by [the authority]  SUCH  OFFICE  through
the  corporation in the name of the people of the state of New York. Any
other rights and obligations resulting from or arising out of the  plan-
ning,  development,  construction,  reconstruction, operation or mainte-
nance of the New York state canal system shall be deemed assigned to and
shall be exercised by the [authority] OFFICE  through  the  corporation,
except  that  the  [authority]  OFFICE may designate the commissioner of
transportation to be its agent for the operation and maintenance of  the
New  York  state canal system, provided that such designation shall have
no force or effect after March thirty-first,  nineteen  hundred  ninety-
three.  Such  canal  system  shall  remain the property of the state and
under its management  and  control  as  exercised  by  and  through  the
[authority,]  OFFICE through the corporation which shall be deemed to be
the state for the purposes of such management and control of the  canals
but for no other purposes.
  2.  The  department of transportation shall deliver to the [authority]
OFFICE all books, policies, procedures, papers,  plans,  maps,  records,
equipment  and  property  of such department pertaining to the functions
transferred pursuant to this article.
  3. All rules, regulations, acts, determinations, orders and  decisions
of the commissioner of transportation and of the department of transpor-
tation  pertaining to the functions transferred pursuant to this article
in force at the time of such transfer shall continue in force and effect
as rules, regulations, acts, determinations, orders and decisions of the
[authority] OFFICE and corporation until duly modified or  abrogated  by
such [authority] OFFICE and corporation.
  4.  Any  business  or  other  matters  undertaken  or commenced by the
commissioner of transportation  or  the  department  of  transportation,
including  executed  contracts, permits and other agreements, pertaining
to or connected with  the  functions,  powers,  obligations  and  duties
transferred  pursuant  to  this  article, and in effect on the effective
date hereof, shall be conducted and completed by the [authority]  OFFICE

S. 3384                             6

through  the corporation in the same manner and under the same terms and
conditions and with the same effect as if conducted and completed by the
commissioner of transportation or the department of transportation.
  5. No existing rights or remedies of the state, including the [author-
ity] OFFICE, shall be lost, impaired or affected by reason of this arti-
cle.
  6.  (a)  No action or proceeding pending on the effective date of this
article, brought by or against the commissioner of transportation or the
department of transportation shall be  affected  by  this  article.  Any
liability  arising  out  of  any  act or omission occurring prior to the
effective date of the transfer of powers and duties authorized herein of
the officers, employees or agents of the department  of  transportation,
or  any other agency of the state, other than the [authority] OFFICE, in
the performance of their obligations or duties  under  [the  canal  law]
THIS CHAPTER, any other law of the state or any federal law, or pursuant
to  a contract entered into prior to the effective date of such transfer
shall remain a liability of the department  of  transportation  or  such
other agency of the state and not of the [authority] OFFICE.
  (b)  Notwithstanding  any provision to the contrary contained in para-
graph (a) of this subdivision, the state shall indemnify and hold  harm-
less  the  [authority]  OFFICE  and  corporation for any and all claims,
damages, or liabilities, whether or not caused by negligence,  including
civil  and criminal fines, arising out of or relating to any generation,
processing, handling, transportation, storage, treatment, or disposal of
solid or hazardous wastes in the canal system by any  person  or  entity
other  than the [authority] OFFICE occurring prior to the effective date
of the transfer of powers and duties authorized [herein] IN  THIS  PARA-
GRAPH.  Such  indemnification  shall  extend to, without limitation, any
releases into land, water or air, including but not limited to  releases
as  defined  under  the  federal  comprehensive  environmental  response
compensation and liability act of nineteen hundred eighty, occurring  or
existing  prior to the effective date of this section; provided that the
[authority] OFFICE shall cooperate in the investigation and  remediation
of hazardous waste and other environmental problems.
  S  5.  Subdivisions 1 and 3 of section 55 of the canal law, as amended
by chapter 335 of the laws of 2001, are amended to read as follows:
  1. The corporation is hereby authorized, after review and  comment  by
the  commission  as  to  consistency  with  the canal recreationway plan
approved pursuant to section one hundred thirty-eight-c of this  chapter
and  section  [three  hundred  eighty-two of the public authorities law]
4.01 OF THE PARKS, RECREATION AND HISTORIC PRESERVATION  LAW,  to  enter
into  leases  of  canal lands, canal terminals, and canal terminal lands
which are consistent with the canal recreationway plan. Such review  and
comment shall be provided within the time period set forth in the proce-
dures  of  the  commission  established  pursuant to section one hundred
thirty-eight-b of this chapter which shall be no more than sixty days.
  3. Leases of canal lands, canal terminals  and  canal  terminal  lands
shall be for purposes which are consistent with the New York state canal
recreationway  plan  approved  pursuant  to  section one hundred thirty-
eight-c of this chapter and section [three  hundred  eighty-two  of  the
public authorities law] 4.01 OF THE PARKS, RECREATION AND HISTORIC PRES-
ERVATION LAW.
  S  6.  Paragraph a of subdivision 1 and subdivision 2 of section 138-a
of the canal law, paragraph a of subdivision 1 as amended by chapter 243
of the laws of 1993 and subdivision 2 as added by  chapter  766  of  the
laws of 1992, are amended to read as follows:

S. 3384                             7

  a.  [the  chairman  of the authority,] the commissioner of transporta-
tion, the commissioner of the office of parks, recreation  and  historic
preservation  and  the  commissioner  of  environmental conservation, or
their representatives;
  2.  The  chairperson  of  the commission shall be the [chairman of the
authority] COMMISSIONER OF THE OFFICE OF PARKS, RECREATION AND  HISTORIC
PRESERVATION.    The members of the commission may elect a secretary and
other necessary officers to serve for such a period as the members shall
decide.
  S 7. Paragraph g of subdivision 1 and clause (v)  of  paragraph  a  of
subdivision  3  of section 138-c of the canal law, as amended by chapter
335 of the laws of 2001, are amended to read as follows:
  g. provisions which give  guidance  to  the  [authority]  OFFICE  with
respect  to  managing water levels in reservoirs to provide water to the
canal system and retain water for recreational purposes;
  (v) is inconsistent with the findings  of  the  generic  environmental
impact  statement  undertaken pursuant to section [three hundred eighty-
two of the public authorities law] 4.01 OF  THE  PARKS,  RECREATION  AND
HISTORIC PRESERVATION LAW.
  S  8.  Subdivisions  10,  11,  12  and 13 of section 351 of the public
authorities law, subdivision 10 as added by chapter 766 of the  laws  of
1992,  subdivision  11 as added and subdivision 12 as amended by chapter
583 of the laws of 1993, subdivision 13 as added by chapter 138  of  the
laws of 1997, are amended to read as follows:
  10.  [The  term  "New  York  state canal system" shall mean all of the
canals, canal lands, feeder canals, reservoirs, canal  terminals,  canal
terminal lands and other property under the jurisdiction of the authori-
ty pursuant to article one-A of the canal law.
  11.] The term "Tappan Zee ferry service" shall mean a high speed ferry
service  for  use by commuters and others between Rockland county, West-
chester county and the city of New York. It shall include all real prop-
erty, buildings, terminals, vessels,  structures  and  other  facilities
related thereto as the authority may determine.
  12.  The  term  "thruway  system" shall mean: (a) the thruway; AND (b)
[the New York state canal system; and (c)] the Tappan Zee ferry service.
  [13. The term "canal corporation" shall mean the New York state  canal
corporation created pursuant to section three hundred eighty-two of this
title.]
  S  9. Section 355 of the public authorities law, as amended by chapter
138 of the laws of 1997, is amended to read as follows:
  S 355. Officers and employees; transfer, promotion and  seniority.  1.
Officers  and  employees  of  state  departments[,] OR agencies[, or the
canal corporation] may be transferred to  the  authority  and  officers,
agents  and  employees  of  the  authority  may  be transferred to state
departments, agencies[, or the canal  corporation,  without  examination
and without loss of any civil service status or rights. No such transfer
from  the authority or canal corporation] to any state department, agen-
cy, or division may, however, be made except with the  approval  of  the
head  of  the  state  department,  agency,  or division involved and the
director of the budget and in compliance with the rules and  regulations
of the state civil service commission.
  2.  Promotions  from  positions  in  state departments and agencies to
positions in the authority [or canal corporation], and vice  versa,  may
be  made from interdepartmental promotion lists resulting from promotion
examinations in which employees of  the  authority,  [employees  of  the

S. 3384                             8

canal  corporation,]  and employees of the state are eligible to partic-
ipate.
  3. In computing seniority for purposes of promotion or for purposes of
suspension or demotion upon the abolition of positions in the service of
the authority or in the service of the state, in the case of an employee
of  the  authority  a  period  of prior employment in the service of the
state shall be counted in the same  manner  as  though  such  period  of
employment  had been in the service of the authority, and in the case of
an employee of the state a period of prior employment in the service  of
the  authority shall be counted in the same manner as though such period
of employment had been in the service of the state. For the purposes  of
the  establishment  and  certification  of  preferred  lists,  employees
suspended from the authority shall be eligible for reinstatement in  the
service  of  the  state, and employees suspended from the service of the
state shall be eligible for reinstatement in the service of the authori-
ty, in the same manner as though the authority were a department of  the
state.  [All provisions contained within this subdivision shall apply to
the canal corporation in the same manner that they apply to the authori-
ty.]
  S  10.  Paragraph  (a)  of  subdivision 1 of section 384 of the public
authorities law, as amended by chapter 634  of  the  laws  of  1996,  is
amended to read as follows:
  (a)  The authority is hereby authorized and directed, as an additional
corporate purpose thereof, to enter into contracts  or  agreements  with
any private person or corporation or with the state or local governments
or  with  other  public corporations to finance, construct, reconstruct,
improve or develop the following transportation projects subject to  the
limitations  prescribed  by  this section: (i) the projects, or portions
thereof, known as the inner harbor project and the intermodal  transpor-
tation project located in Onondaga county, including but not limited to,
the  consolidation  of  the  Syracuse  canal  terminal and the planning,
design  and  construction  of  an  intermodal  transportation  facility,
provided,  however,  that  prior  to  proceeding  with  the inner harbor
project, the authority and the city of Syracuse shall enter into a memo-
randum of understanding regarding the undertaking of such project;  (ii)
the  project,  or  portions  thereof,  known  as the horizons waterfront
development project generally located in and around Erie county, and the
New York state canal system generally located along the  Erie  canal  in
Erie  and  Niagara counties; and (iii) the project, or portions thereof,
known as the Stewart airport access project located in Orange county  to
provide  direct  access to Stewart international airport from interstate
eighty-four  in  the  vicinity  of  the  airport.  [Notwithstanding  the
provisions of article VI-A and section one hundred thirty-eight-c of the
canal  law  and  paragraph  (m)  of  subdivision  seven of section three
hundred eighty-two of this chapter, the New York state thruway  authori-
ty,  or  the subsidiary corporation thereof, is authorized to enter into
an agreement with the city of Syracuse  for  the  leasing  of  the  land
comprising  the  inner  harbor project in Onondaga county.] Any projects
for the construction,  reconstruction  or  improvement  of  property  or
structures  undertaken pursuant to this section shall be in full compli-
ance with title thirteen of article twenty-seven  of  the  environmental
conservation  law  and  shall be deemed public works for the purposes of
section two hundred twenty of the labor  law  and  section  one  hundred
three of the general municipal law, except that any contracts let by the
authority  for  the  construction, reconstruction or improvement of such
projects shall be subject to section three hundred  fifty-nine  of  this

S. 3384                             9

title.  For the purposes of article fifteen-A of the executive law only,
the authority shall be deemed a state agency as that  term  is  used  in
such  article  and  its  contracts for such projects as provided in this
article  shall be deemed state contracts within the meaning set forth in
such article.
  S 11. Subdivisions 9 and 10 of section 481 of the transportation  law,
as  added  by section 1 of part A of chapter 60 of the laws of 2005, are
amended to read as follows:
  9. "Canal corporation" shall mean the New York state canal corporation
created pursuant to section [three  hundred  eighty-two  of  the  public
authorities law] 4.01 OF THE PARKS, RECREATION AND HISTORIC PRESERVATION
LAW.
  10.  "Canal  system"  shall mean the "New York state canal system", as
such term is defined by subdivision [ten] ONE of section [three  hundred
fifty-one of the public authorities] TWO OF THE CANAL law.
  S 12. Sections 382 and 383 of the public authorities law are REPEALED.
  S  13. Subdivision 21 of section 2 of the canal law, as added by chap-
ter 442 of the laws of 1996, and as renumbered by  chapter  335  of  the
laws of 2001, is amended to read as follows:
  21.  "Corporation" shall mean the New York state canal corporation[, a
subsidiary of the New York state thruway authority, created pursuant  to
section three hundred eighty-two of the public authorities law].
  S 14. Section 359-a of the public authorities law, as added by chapter
140 of the laws of 2002, is amended to read as follows:
  S  359-a.  Procurement  contracts. For the purposes of section twenty-
eight hundred seventy-nine of this chapter as applied to  the  authority
[or  the  canal corporation], the term "procurement contract" shall mean
any written agreement for the acquisition of goods or  services  of  any
kind  by the authority [or the canal corporation] in the actual or esti-
mated amount of fifteen thousand dollars or more.
  S 15. Paragraph (i) of subdivision 1 of section 19 of the public offi-
cers law, as added by chapter 115 of the laws of  2000,  is  amended  to
read as follows:
  (i)  For  purposes  of this section, the term "employee" shall include
directors, officers and employees of  the  thruway  authority  [and  its
subsidiary,  the canal corporation]. In those cases where the definition
of the term "employee" provided in this  paragraph  is  applicable,  the
term  "state",  as utilized in subdivisions two, three, and four of this
section, shall mean the thruway authority when the employee is a  direc-
tor,  officer, or employee of the thruway authority[, or its subsidiary,
the canal corporation, when the employee  is  a  director,  officer,  or
employee of the canal corporation].
  S  16.  Subdivision  1  of  section  19  of the public officers law is
amended by adding a new paragraph (j) to read as follows:
  (J) FOR THE PURPOSES  OF  THIS  SECTION,  THE  TERM  "EMPLOYEE"  SHALL
INCLUDE  DIRECTORS,  OFFICERS,  AND  EMPLOYEES  OF THE CANAL CORPORATION
PURSUANT TO SECTION 4.01 OF THE PARKS, RECREATION AND HISTORIC PRESERVA-
TION LAW.
  S 17. Subdivision 18 of section 2 of the canal law is REPEALED.
  S 18. Subdivisions 2 and 5 of section 92-u of the state  finance  law,
subdivision  2  as added by chapter 766 of the laws of 1992 and subdivi-
sion 5 as amended by chapter 483 of the laws of  1996,  are  amended  to
read as follows:
  2. Such fund shall consist of all revenues received from the operation
of  the New York state canal system as defined in section [three hundred
fifty-one of the public authorities law and section] two  of  the  canal

S. 3384                            10

law,  including payments on leases for use of canal lands, terminals and
terminal lands,  tolls  received  for  lock  and  lift  bridge  passage,
payments  for  hydroelectric  easements and sales, for purchase of other
abandoned  canal  lands,  payments for any permits and leases for use of
the water and lands of the system and payments for use of dry docks  and
other moneys made available to the fund from any other source other than
a  grant,  loan  or  other inter-corporate transfer of funds of the [New
York state thruway authority] OFFICE OF PARKS, RECREATION  AND  HISTORIC
PRESERVATION,  and any income earned by, or incremental to, the fund due
to investment thereof, or any repayment of any moneys  advanced  by  the
fund.
  5.  Moneys  of  the  fund, following appropriation by the legislature,
shall be available to the [New York state thruway authority and shall be
expended by such authority or subsidiary corporation thereof] OFFICE  OF
PARKS,  RECREATION  AND  HISTORIC PRESERVATION only for the maintenance,
construction, reconstruction, development  or  promotion  of  the  canal
system;  provided,  however,  that in the initial years, expenditures of
moneys of the fund for the development and/or  promotion  of  the  canal
system  shall  be  accorded  a  priority by [the authority or subsidiary
corporation thereof] SUCH OFFICE.  In addition, moneys of the  fund  may
be  used  for  the  purposes  of  interpretive signage and promotion for
appropriate historically significant Erie canal lands and related sites.
Moneys shall be paid out of the fund by the state comptroller on certif-
icates issued by the director of the budget.
  S 19. Paragraph (a) of subdivision 1 of  section  365  of  the  public
authorities  law,  as  amended  by  chapter  766 of the laws of 1992, is
amended to read as follows:
  (a) Subject to the provisions of section three  hundred  sixty-six  of
this  title, the authority shall have the power and is hereby authorized
from time to time to issue its negotiable notes and bonds in  conformity
with  applicable provisions of the uniform commercial code in such prin-
cipal amount as, in the opinion of the authority, shall be necessary  to
provide  sufficient moneys for achieving the corporate purposes thereof,
including construction, reconstruction and improvement  of  the  thruway
sections and connections, and highway connections herein described, [the
New  York  state canal system subject to the provisions of section three
hundred eighty-three of this title,] together with  suitable  facilities
and  appurtenances,  the  payment  of all indebtedness to the state, the
cost of acquisition of all real property, the expense of maintenance and
operation, interest on notes and bonds during  construction  and  for  a
reasonable  period thereafter, establishment of reserves to secure notes
or bonds, and all other expenditures of the authority  incident  to  and
necessary or convenient to carry out its corporate purposes and powers.
  S  20.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a  law;  provided,  however,  that  effective
immediately,  the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this  act  on  its  effective
date  are  authorized and directed to be made and completed on or before
such effective date.