BILL NUMBER:  S6814

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


 PURPOSE :
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 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 improvement 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 cellular 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 failures. Any funds expended by the state towards the development
of the SWN (approximately $51.5 million) are supposed to be reimbursed
by MIA-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.e Of that amount, about $119,460,000
was deposited in the Public Safety Communications Account (PSCA) in FY
2008-09; the remainder went to the General Fund. Since the Public
Safety Communications Account e 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
following 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.

 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.