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FY 2014 Executive Budget Summary

Overview

The Executive Budget for Fiscal 2014 proposes a modest increase in total state spending of under 2 percent and closes a $1.3 billion gap between projected revenues and spending for FY 2014. Structural gaps persist, however, with projected deficits for the following three fiscal years of $2.0 billion, $3.5 billion and $4.5 billion, respectively for an aggregate 3 year gap of about $10 billion. The Executive Budget's gap-closing provisions include $974 million in savings, and the remainder in various revenue measures. Spending reductions are split roughly even between state operations ($474 million) and local assistance ($412 million, which includes freezing planned increases in payments to health and social service providers.)

On the spending side, the proposed budget would increase state tax and fee-funded spending by 1.6 percent, or $1.4 billion, to $91.1  billion; “all funds” spending, including both state and federal funds, would increase by 1.9 percent, or $2.5 billion, to $136.4 billion. It also projects $6.1 billion in “extraordinary” federal assistance (i.e., Sandy relief) in Fiscal 2013 and 2014 combined.

Citing the need for a “stable tax code,” the Executive Budget proposes extensions of several “temporary” tax and fee increases, as well as tax credits that were due to expire in 2013 or 2014. The most significant are a five year extension of 2 percent “Section 18-a” assessments on utility energy sales, with a $500 million annual impact on business and residential ratepayers, and a five year extension of the $420 million per year “film production” tax credit. These and other revenue and tax credit measures are detailed below.

The package also includes a major overhaul of the state's unemployment insurance program, addressing the competing goals of repaying our $3.5 billion federal UI borrowing, making cost-saving reforms, and providing an increase in maximum weekly benefits. It also contains several reforms to the state's workers' compensation system, including provisions to help former members of defaulted self-insured trusts refinance some $1 billion in unfunded liabilities.

The following presents issue-specific details on key Executive Budget proposals, including additional details. Please feel free to contact The Business Council's government affairs staff with any questions or comments on this proposal.

Construction

Temporarily (for FY 2014) extends the authority to engage in "design build" contracts and related financing contracts to any state department, division, board, commission, bureau, office, committee or council of any state department, any public benefit corporation, public authority or commission where the governor appoints at least one member, but excludes SUNY and CUNY. Allows design-build and design-build-finance contracts to be used for buildings in addition to the types of capital projects design-build is already authorized to be used as an alternative delivery method. (S.2605-B / A.3005-B, Part S).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Contract Procurement

Allows food grown or processed in New York to be procured by a state agency without competitive bidding, up to $200,000 per contract. (S.2605-B/A.3005-B, Part P).

Senate: Accepts the executives proposal but adds a section requiring agencies to advertise in the state newsletter about any such food purchase opportunity that exceeds $50,000 and award based on lowest price. (A.3005-C, Part P).

Assembly: Accepts the proposal to all food grown, produced or harvested in New York State to be procured without a formal competitive bidding process but removes the provision that would extend this to foods manufactured or processed into food products in NYS located facilities. (S.2605-C, Part P).

Allows any state agency, public corporation or other public entity to enter individually or collectively into contracts with the not-for-profit corporation that operates the multi-state information sharing and analysis center for services related to cyber security through September 30, 2014 without competitive bidding, subject to OSC approval where applicable. This includes services for monitoring, detecting and responding to cyber incidents. (S.2605-B/A.3005-B, Part N).

Senate: Accepts the Executive's proposal. (S.2605-C, Part N).

Assembly: A accepts most of the Executive's proposal, but modifies it to allow transferred employees to keep the status and rights of their collective bargaining agreement. (A.3005-C, Part N).

Economic Development

Staff Contact: Ken Pokalsky

Creates the “Innovation Hot Spots” program, which will create or designate ten university-affiliated business incubators. Sponsoring organizations would be required to provide start-ups with various support services; participating star-up businesses would get income and sales tax relief for a five year period (details provided below in Tax/Revenue section). ESDC, with input from the REDCs, will designate five hot spots in FY 2014, and five additional in FY 2015. (S.2609-B / A.3009-B, Part C).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Provides the Regional Economic Development Council (REDC) program with $150 million in additional capital funding, as well as designating another $70 million in Excelsior Jobs tax credit authority, for REDCs-recommended projects. (S.2604 / A.3004)

Senate: Rejects "without prejudice" Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Makes permanent the general loan powers of the New York State Urban Development Corporation (UDC); its authority is currently set to expire on July 1, 2013. (S.2608-B / A.3008-B, Part h).

Senate: Provides a one year extender.

Assembly: Provides a one year extender.

Adds grant-making to the general powers of the Urban Development Corporation (UDC), and clarifies UDC's ability to make grants as well as loans with all available funds. (Deleted from the Executive Budget in the 21 day amendments).

Other capital funding proposals include:

New Senate Proposals

New Assembly Proposals

Education

The Executive Budget provides an $889 million increase in total school aid funding including:

State aid increases continue to be linked to compliance with the teacher and principal evaluation process; districts will be ineligible for school aid if they have not fully implemented the teacher evaluation process for the 2013-14 year by September 1, 2013. The budget provides a 3.3 percent increase in school aid for the 2014-15 school year, based on projected growth in New York State personal income.

Senate: Increases school aid $415 million above the Governor's budget. Accepts the September 1 deadline and alignment of increased school aid with the implementation of a teacher and principal evaluation process.

Assembly: Increases school aid $334 million over Executive budget proposal. Restores $240 million in school aid to New York City (Background: New York City lost this funding after the school district failed to reach a deal on teacher evaluations by the January 14 deadline, as required by state legislation passed in 2012). Assembly budget rejects implementation deadline of September 1 of the current year, and adds date for submission and implementation of an evaluation plan to January 15, 2014 and January 15, 2015. The Assembly allocates $35 million of the Executive's proposed $75 million in New NY Education Reform Commission grants to total school aid, maintaining $40 million of the grants.

Education, Labor and Family Assistance (Part A) Adds a new section 4403-a to the state Education Law (Waivers from certain duties). Allows school districts, BOCES and approved private special education programs to petition the SED for flexibility from certain special education mandates.

Senate: The Senate accepts the Executive Budget proposal.

Assembly: Rejects addition of this new section.

Transportation, Economic Development and Environmental Conservation Part D). The “Next Generation NY Job Linkage Program,” which will make community college funding in part dependent upon the college's partnership with local employers and the regional economic development council, and the program's alignment with the current or emerging workforce needs of the region. This includes a $5 million Next Generation NY Job Linkage Program Incentive Fund, for discretionary awards based on the number of students employed following the program, and their wage gains, as well as the number of degree and certificate completions and the number such completions by students who are at-risk or underrepresented within the field of study.

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.


$110 million to support the SUNY and CUNY 2020 initiatives.

Senate: Accepts the Executive proposal.

Assembly: Accepts $55 million for SUNY 2020, proposes $106 million in capital funds for CUNY.

New Assembly Provisions

A.3007-C (Part U) Creates the New York DREAM fund commission to advance educational opportunities for the children of immigrants.

New Two-House Provisions

Both the Senate and Assembly proposals increase community college base aid by $150 per student.

Energy

Staff Contact: Darren Suarez

The Executive Budget recommends $86.6 million for the Department of Public Service, an increase of $4.3 million.

$1 million from Federal utility settlements to fund a wholesale market consumer advocacy initiative, to be operated in conjunction with the Department of State's Division of Consumer Protection.

An increase in local assistance funding of $3.25 million, in anticipation of additional electric transmission line siting projects in 2013-14 resulting from the Governor's Energy Highway Initiative.

A $23 million increase for NYSERDA; with $25 million in funding for the “Cleaner, Greener Communities” sustainability planning grants program.

Expands the PSC ability to initiate an administrative proceeding to recover penalties against a public utility company, without having to prove a “knowingviolation; requires each electric utility to provide its emergency management plan to the PSC for review and approval, with the PSC authorized to issue orders requiring implementation of specific measures and assessing a civil penalty; the PSL § 68 would be amended to authorize the PSC to modify or revoke a certificate of public convenience and necessity previously issued to any gas or electric utility, including certain additional gas distribution systems. (A.3008-C / S.2600-C Part O).

Senate: Rejects Executive Budget Proposal.

Assembly: The Assembly budget (A.3008A Part O) proposal provided many substantive amends to this section. The proposal requires violations of PSL section 24 are “knowingly” committed. Additionally, the management audit provisions are significantly amended. The Assembly removed §5, that would allowed for the revocation of a corporation's service territory. The Assembly has proposed to remove the provisions of this section related to the safety of 300 psi natural gas gathering lines.

Extends the Temporary State Energy and Utility Service Conservation Assessment (often referred to as “Section 18-a assessments) for five additional years. The 2% assessment was scheduled to expire December 31, 2013. Extending the assessment will cost energy consumers $236 million in calendar 2014 and $472M per year for the next four years. (A.3008C / S.2600C Part N).

Senate: Rejects and restores the pre -2009 cap on 18-a; which is the lesser of the PSC expense or 1/3% of a utility entity's gross intrastate utility revenues.

Assembly: Accepts.

Authorizes the New York State Energy Research and Development Authority to financ  a portion of its research, development and demonstration, and policy and planning programs, and to finance the Department of Environmental  Conservation's climate change  program, from an assessment on gas electric corporations.

Senate: Rejects.

Assembly: Accepts.

New Senate Proposals

A proposed new assessment on out of state electric generators that have power sold into New York. The assessment is intended to provide parity with in-state generators whom are required to participate in RGGI. (S.2600-C, Part MM).

The proceeds from the out-of-state generators subject to RGGI would be used to repower select power plants, and help provide some communities adversely impacted by power plant closures to receive community assistance. (Part JJ).

Allow the New York State Power Authority to provide a loan for the repowering of an electric facility. Additionally the provisions encourage the issuance of a purchase power agreement with NYPA. The acquired above market power would used for the State Recharge New York program (PART II).

Create the Northern New York Power Proceeds Allocations Board, similar to the Western New York Power Proceeds Allocation Board. (Part GG).

Environment

Staff Contact: Darren Suarez

The Executive Budget proposes a total reduction in Department of Environmental Conservation (DEC) spending of 5.5%, reflecting a slower pace of capital spending, non-recurring local assistance, and a statewide consolidation of IT personnel.

An additional $40 million in capital for the DEC under the New York Works statewide capital infrastructure program. The DEC funding will be used for the Environmental Restoration grant program for municipal brownfields ($10 million), recreational facilities updates and health and safety repairs, wastewater treatment infrastructure, the plugging and remediation of abandoned oil and gas wells ($500,000), and e-business initiatives to allow businesses file regulatory applications and data with the department.

Increases the Environmental Protection Fund by $19 million, raising the appropriation to $153 million.

Proposes the “Cleaner Greener New York Act of 2013,” to increase enforcement and penalties for violation of the Bottle Bill, including criminal penalties, while also providing administrative and operational relief to small retailers, and deposit originators, producing additional revenues for deposit to the EPF. (Part F).

Senate: Accepts Executive Budget proposal.

Assembly: Amends the provision, to expand the covered bottles to include sports drinks, fruit drinks with less than 70% fruit, and new aged beverages.

Makes permanent the waste tire disposal fee ($2.50 per tire), raising an additional $9 million in 2013-14 and $24 million annual thereafter. The original waste tire fee was established to address illegal or dangerous waste tire dumps; the majority of the collected fee has been used for general fund relief. (Part G).

Senate: Amends the Waste Tire Management Act to include a $3 Million dollar competitive grant to a manufacture whom reuses waste tires.

Assembly: Extends the Waste Tire Management Act until 2017.

New Assembly Provisions

New Senate Provisions

Financial Services

Suspends New York State drivers licenses of taxpayers who owe certain past due tax liabilities. Prohibits an insurance company from using the fact that a taxpayer's license is suspended under this part from increasing, cancelling or declining a vehicle insurance policy. (S.2609-B / A.3009-B, Part P).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

New Assembly Provision

Authorizes the State to license certified capital companies (CAPCO) to raise $150 million in private venture capital from insurance companies, which would be invested in the companies in exchange for tax credits. (A.3009-C).

Allocates $32 million from the Department of Financial Services budget to fund the physicians excess medical malpractice program, formerly funded out of the General Fund. (A.3003-C, page 513, lines 18-20).

Health Care / Health Insurance

Staff Contact: Lev Ginsburg

The Executive Budget health-related proposals focus on Healthcare Exchanges/ACA compliance and Medicaid issues. While it contains no new revenue measures, it extends the duration of some existing taxes. The budget also proposes new mandates on business, such as a requirement that a pharmaceutical manufacturer provides a minimum supplemental rebate for drugs that are eligible for state public health plan reimbursement.

Healthcare Exchanges and ACA related peripheral issues

Mandates

Medicaid

New Senate Provisions

New Assembly Provision

New Two-House Provisions

Labor / Human Resources

Increases the state's minimum wage from the current $7.25/hr. to $8.75/hr. on July 1, 2013. No automatic indexing of future increases is mentioned in the budget proposal; includes an increase in the minimum wage for food service workers receiving tips from the current wage of $4.60/hr. to $6.03/hr. and an increase in the meal and lodging allowance for food service workers as well. (S.2607-B / A.3007-B, Part P).

Senate: Rejects Executive Budget proposal but will consider phasing in a minimum wage increase over three years beginning in 2013.

Assembly:  Rejects Executive Budget proposal. Passed a separate minimum wage bill on March 5, 2013 that would increase the minimum wage to $9.00 per hour on January 1, 2014 with an automatic COLA adjustment annually thereafter.

Consolidates the state's Financial and Human Resources transactional activities of over 50 state agencies into the Business Services Center within the Office of General Services by the end of 2013-14. (S.2600-B / A.3000-B).

Senate:  Accepts Executive Budget proposal but reduces funding by $465,000.

\Assembly:  Accepts Executive Budget proposal.

Taxation / Revenues / Tax Credits

Staff Contact: Ken Pokalsky

Extends the MTA surcharges on the corporation, corporate franchise, bank and insurance tax, currently scheduled to sunset December 31, 2013, by five years through December 31, 2018. (S.2609-B / A.3009-B, Part A).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Extends the “Temporary State Energy and Utility Service Conservation Assessment,” a temporary 2 percent assessment on electric, gas, steam and water utilities, for 5 years, until March 31, 2019. Originally enacted in 2009, the assessment currently provides over $500 million in revenues annually to the General Fund. (S.2608-B / A.3008-B, Part N).

Senate: Rejects Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Five year extension of the film production tax credit, at $420 million per year, for five additional years (through 2019), and increase the share available for post-production credit costs from $7 million per year to $25 million per year. (S.2609-B / A.3009-B, Part B).

Senate: Two year extender only (through 2016); increases the basic credit to 35% in nine downstate counties outside of New York City and to 40% elsewhere in New York State; requires a comprehensive, third-party economic impact study of the program.

Assembly: Accepts Executive Budget proposal.

Tax reduction for businesses operating in “innovation hot spots” (see Economic Development section above for details). For Article 9-A taxpayers, limits tax liability to the fixed dollar minimum for a five year period; for Article 9-A taxpayers that are “partners” in a “hot spot” entity, provides a deduction for income attributed to such entities. For Article 22 taxpayers, provides a deduction for income attributed to such entities. Provides a credit or refund for state and local sales tax liability for retail sales of tangible personal property for such entities. Any taxpayer using these benefits would be ineligible for any other state tax exemption or deduction; the election to take “hot spot” tax benefits is irrevocable. (S.2609-B / A.3009-b, Part C).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Limits state sales tax exemptions for IDA-financed projects to instances where: the project is certified by the state as eligible for participation in the Excelsior Jobs program; ESDC determines that such benefits are consistent with regional economic development strategies. Further provides that any state sales tax benefits would be awarded as a credit or refund, not an up-front exemption, and that if any share of the value of state sales tax exemption is included in a PILOT agreement, the IDA must remit those payments to the state. (S.2609-B / A.3009-B, Part J).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Eliminates the exclusion of royalty income received by a taxpayer if a related entity that made the payment was required to add back the payment to its income; creates new exclusions from this provisions in instances where the related member paid significant tax on the income in another jurisdiction, if the payment was for a valid business purpose, or where the related member is incorporated in foreign countries. This change is expected to produce a net $28 million increase in state revenue in Fiscal 2015. (S.2609-B / A.3009-B, Part E).

Senate: Rejects Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Extends the enhanced tax credit available for rehabilitation of historic properties through tax years beginning before January 1, 2020, and to make necessary technical corrections to the method of determining eligible census tracts. (S.2609-B / A.3009-B, Part F).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Creates a new, non refundable tax credit under the corporation, corporate franchise and personal income tax for the purchase of electric vehicle recharging property, equal to the lesser of $5,000 or fifty percent of the cost of such property. (S.2609-B / A.3009-B, Part G).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Makes permanent several tax “modernization” provisions adopted in 2011 and currently set to expire at the end of 2013, including the requirement for e-filing of tax returns by professional preparers and individuals that use pre-packaged software to prepare their taxes; and authority for the Department of Taxation and Finance to require segregated bank accounts for sales that vendors that have failed to collect, account for, or pay to the state required sales tax collections. (S.2609-B / A.3009-B, Part H).

Senate: Rejects Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Provides a new state and local sales/use tax exemption for receipts from sales of tangible personal property and food and drink where the sale is made at a Taste-NY facility. (S.2609-B / A.3009-B, Part I).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Creates a sales and use tax exemption for natural gas that is purchased and converted into compressed natural gas (CNG) for use or consumption in the engine of a motor vehicle. (S.2609-B, Part K).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Extends high income charitable contribution deduction limitation for three years (to 25 percent of federal allowable deductions for taxpayers with New York adjusted gross income over $10 million). (S.2609-B / A.3009-B, Part D).

Senate: Rejects Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Makes grounds for revoking a sales tax certificate of authority consistent with the grounds denying a COA application. This bill would also allow the Department to refuse to issue a COA for any unpaid tax finally determined to be due from a responsible person, not just for that person's unpaid sales and use taxes as under current law. (S.2609-B / A.3009-B, Part M).

Senate: Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

With regard to cigarette taxes, the proposal would: a) allow the Tax Department to refuse to register retail dealers if they have any unpaid state tax liabilities or have been convicted of a tax crime within one year, and b) increase the penalty for possessing or controlling unstamped or unlawfully stamped cigarettes from a maximum of $150 to $600. (S.2609-B / A.3009-B, Parts N and O, respectively).

Senate: Accepts Executive Budget proposal.

Assembly: Rejects Executive Budget proposed Part N, accepts proposed Part O.

Makes permanent the current state authorization for counties with sales taxes above 3 percent to continue their current rates, provided that these higher rates would be subject to biennial approval by the county's legislative body. (S.2609-B /A.3009-B, Part R).

Senate: Accepts Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

New Senate Provisions

Additional Assembly Proposals

Technology / Telecommunications

Consolidates the state's information technology functions into the office of Information Technology Services (ITS); adopts uniform IT standards across state agencies; integrates the Department of Cybersecurity into ITS; and consolidates additional staff from other agencies into ITS. (S.2605-B / A.3005-B, Part N).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Adopts the “Resilient Information System” to create a mobile messaging and social networking apparatus for disaster planning and response. NY-TEXT will allow mobile phone users to receive mass text messages regarding community outages and other pertinent information.

New Senate Provision

Allow telephone service providers to post on their websites the rates, terms and conditions for the services they offer, rather than requiring them to file tariffs or schedules with the Public Service Commission for approval. (S.2608-C, Part EE).

Transportation

Extends the MTA Business Tax Surcharge for 5 years through tax year 2018 generating about $950 million annually. (S.2609-B / A.3009-B, Part A).

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Provides $300 million in new money for repair of roads, bridges and infrastructure under the transportation component of the NY Works program with $100 million of it awarded competitively through the Regional Economic Development Councils. (S.2604-B / A.3004-B).

Senate: Accepts the Executive Budget NY Works transportation funding proposal of $300 million but does not allocate $100 million of it through Regional Economic Development Councils.

Assembly: Reduces the Executive Budget NY Works transportation proposal to $200 million and does not allocate $100 million of it through Regional Economic Development Councils.

Provides a total Department of Transportation capital program of $3.7 billion. (S.2604-B / A.3004-B).

Senate: Increases funding by $60 million.

Assembly: Decreases funding by $100 million.

Maintains the CHIPS and Marchiselli funding at $402.3 million. (S.2608-B / A.3008-B, Part A).

Senate: Increases the funding to $502.8 million.

Assembly: Increases the funding to $417.8 million.

Provides for a state takeover the $85 million cost of running State Police patrols on the Thruway from the Thruway Authority. This was part of the recent agreement that cancelled anticipated Thruway toll increases for commercial vehicles. (S.2608-B / A.3008-B, Part E).

Senate: Rejects Executive Budget proposal.

Assembly:  Accepts Executive Budget proposal.

Allows for the suspension of delinquent taxpayer's driver's license for those who owe in excess of $10,000 past due taxes. (S.2609-B / A.3009-B, Part P).

Senate:  Rejects Executive Budget proposal.

Assembly: Rejects Executive Budget proposal.

Travel and Tourism

Creates a New York State Gaming Commission Account to pay administrative expenses of the New York State Gaming Commission, funded with monies transferred from the state lottery fund administration account, the regulation of racing account, the bell jar collection account and/or the regulation of Indian gaming account. (S.2605-B / A.3005-B, Part I).

Senate: Accepts the Executive Budget proposal. (A.3005-C, Part I).

Assembly: Accepts the Executive's proposal but includes a section barring the use the any net proceeds to be used to pay non-lottery related expenses of the gaming commission, including administrative. (S.2605-C, Part I).

Requires that 1 percent of vendor fees used for purse enhancement from video lottery terminal operators (with the exception of Aqueduct) be paid to the gaming commission to promote and ensure equine health and safety in New York. Any unused funds will be returned to the video gaming operators on a pro rata basis for the purpose of enhancing purses. (S.2605-B / A.3005-B, Part J).

Senate: Proposes 1 percent of vendor fees used for purse enhancement from video lottery terminal operators (with the exception of Aqueduct) be paid to the gaming commission to be used to implement the recommendations of the Governor's task force on racehorse health and safety. Any portion unused will be returned to the VLT operators on a pro rata basis and shall be used for enhancing purses. This proposal would also require 2.5% of the portion of the vendor fees received from a thoroughbred track be paid to the jockey's organization that represents 51% of the jockeys that race at NYS thoroughbred tracks to provide benefits for active, retired or disabled jockeys. Any portion of the funds unused by the gaming commission or the jockey's organization during the fiscal year will be returned to the VLT operators on a pro rata basis for purse enhancement. The Senate would also require a portion of the vendor fees received for purse enhancement, an amount equal to one-half of one percent of such purse enhancement shall be paid to the commission and used for fan development. The gaming commission will be required to make annual reports on how all this money was used. (S.2605-C, Part J).

Assembly: The Assembly version would require 2.5% of the vendor fees from video lottery terminals that are used for purse enhancement at a thoroughbred racetrack (with the exception of Aqueduct) be paid to the gaming commission to be used to promote and ensure equine health and safety in New York. A portion of that will be paid to the jockey's organization that represents 51% of the jockeys that race at NYS thoroughbred tracks to provide benefits for active, retired or disabled jockeys. Any portion of the funds unused by the gaming commission or the jockey's organization during the fiscal year will be returned to the VLT operators on a pro rata basis. (A.3005-C, Part J).

Creates “Taste-NY” facilities to sell products including but not limited to products produced within the state, including alcoholic beverages free of sales and use taxes. (S.2609-B / A.3009-B, Part I).

Senate: Removes program entirely.

Assembly: Rejects the Executive's proposal but creates a new Taste-NY proposal. ESDC would be allowed to enter into a written agreement with anyone with a Farm Winery or Farm Brewery license to open and operate an additional branch to be known as a Taste-NY retail establishment. ESDC will provide technical and financial support to establish the retail establishments, subject to funds appropriated and help licensees find a suitable location that will ensure the maximum promotion of the locally produced and sourced products they are authorized to sell and help to ensure that the Taste-NY establishments are helping to promote other regional interests. (A.3008-C, Part U).

Eliminates restrictions on Quick Draw sales to promote additional sales. (S.2609-B / A.3009-B, Part S).

Senate: Accepts most of the Budget proposal except it maintains the section of law that forbids any person under the age of 21 from playing while at an establishment that has a license to sell alcohol. (S.2609-C, Part S).

Assembly: Removes this part entirely. (A.3009-C, Part S).

Extends current commission rate paid to Monticello as avideo lottery agent for one year. (S.2609-B / A.3009-B, Part T).

Senate: Accepts the Executive Budget proposal.

Assembly: Accepts the Executive Budget proposal.

Amends some provisions in the Racing, Pari-mutuel wagering and breeding law that were set to expire including (S.2609-B / A.3009-B, Part U):

Provides tourism related funding as follows:

Unemployment Insurance

Staff Contact: Lev Ginsburg

(S.2607-B / A.3007-B, Part O).

To generate additional UI tax payments necessary to repay $3.5 billion in federal borrowing by 2016, rather than 2018, the Executive budget would:

Eliminate charges to an employer's UI account in instances where they terminated an employee for misconduct or an employee voluntarily resigns, and that person is laid off from a subsequent job.

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget and adds a provision wherein an employer's account shall not be charged, and the charges will be made to the general account when a claimant lost employment as a direct result of Super Storm Sandy.

Require a minimum of two documented prospective employer contacts per week, subject to random audit.

Senate: Accepts Executive Budget proposal.

Assembly: Removes Executive Budget proposal.

Increase the maximum and minimum weekly benefits for claimants on a graduated scale. From October, 2014 through October 2018, the maximum benefit incrementally rises from $405 to $450. From October, 2019 through October, 2026, the maximum benefit incrementally increases from 36 percent of the average weekly wage to 50 percent.

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Provide that no increase in maximum benefits will occur in year if: if there is a decrease in private sector jobs each month of the first two quarters of any year; if the fund does not have sufficient resources to pay for scheduled benefit increases; or if the fund balance is not at least 30 percent of the fund's average high cost multiple as defined in federal law.

Senate: Accepts Executive Budget proposal.

Assembly: Modifies from fund amount on December 31 of the previous year to the second quarter of current year.

Provide that benefits will be based on a claimant's two highest quarters of earnings in their base period, rather than the single highest quarter as in current law.

Senate: Accepts Executive Budget proposal.

Assembly: Removes Executive Budget proposal.

Require $2,100 in income in a claimant's high earning quarter and $3,150 in income during their base period, in order to qualify for UI benefits (these would be increased from $1,600 and $2,400, respectively, in current law).

Senate: Accepts Executive Budget proposal.

Assembly: Removes Executive Budget proposal. In addition, the Assembly removes penalty and interest charges as well as the ability to file with a county clerk judgments against a claimant for monies received because of false statement or representations.

Workers' Compensation

Staff Contact: Lev Ginsburg

(S.2605-B / A.3005-B, Part O).

Consolidates all Workers' Compensation Board (WCB) assessments (other than Section 50-5 assessments for self-insured entities) into one consolidated assessment charged to all employers. The assessment methodology is not specified in the bill and will be developed in regulation. The WCB's stated intent is to charge all employers based on a common factor such as premium (or its equivalent), regardless of the type of coverage an employer chooses, but such language does not appear in bill.

Senate: Accepted the proposed restructuring of WCB assessments.

Assembly: Generally accepted these changes, except as it related to the ATF and reopened case fund.

Closes the Reopened Case Fund (25-a) to any new claims, and a resultant reduction in assessments for 25-a purposes.

Senate: Accepts Executive Budget proposal but modifies the Chair's authority to administer the fund.

Assembly: Removes Executive Budget proposal.

Eliminates mandatory deposits into the Aggregate Trust Fund (ATF) for commercial carriers and the closing of the ATF to any new deposits.

Senate: Accepts Executive Budget proposal.

Assembly: Removes Executive Budget proposal.

Provides the WCB, through the Dormitory Authority, authority to issue up to $900 million in bonds, ultimately backed by the new Workers' Compensation consolidated assessment, to finance assumption of liability policies for defaulted group self-insured trusts. While not specified in legislation, recoveries from former members of defaulted trusts would be the initial source of debt service.

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

Increases from $100 to $150, the minimum weekly benefit fo injured claimants, applicable only to claimants injured after May 1, 2013.

Senate: Accepts Executive Budget proposal.

Assembly: Accepts Executive Budget proposal.

The modification of WCB assessment criteria will eliminate the requirement for the State Insurance Fund to hold reserves for assessments; as a result, the Executive Budget proposes to direct SIF to release $1.75 billion in reserves to the state to support its capital plan over the next four fiscal years.

Senate: Removes Executive Budget proposal.

Assembly: Modifies Executive Budget proposal and transfers money into a "Fiscal Stabilization Fund."

New Senate Proposals

Adds that any and all data provided to the WCB by CIRB shall be kept confidential by the Boars and shall not be subject to the provisions of Article 6 of the Public Officers Law.

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