FY 2014 Final Budget Summary
The following describes how key proposals in the Executive Budget were addressed in the final budget agreement. Please feel free to contact The Business Council's government affairs staff with any questions or comments on this proposal.
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).
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).
Adopts the executive's proposal to allow some food products to be procured by an agency without competitive bidding, up to $200,000 but only allows food, including milk and milk products that are grown, produced or harvested in New York. Also requires agencies that wish to purchase such commodities to advertise on their website any purchases that exceed $50,000 and they must make the purchase based on the lowest price meeting the form, function and utility as required by the agency. (S.2605-D/A.3005-D, 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).
Additional Provision Added
Amends the Small Business Revolving Loan Fund to allow MWBEs and other small businesses that receive loans to also be eligible to accept short-term financing loans provided under a new section eleven. This new provision allows Empire State Development Corporation to also provide at least $500,000 in program funds to lending organizations for the purpose of making short-term financing available to MWBE and other small businesses performing contracts to provide construction or professional services for state procurement purposes. These loans will be used to underwrite the cost of labor materials, and equipment directly associated with the contract being financed or a contract that has been satisfied for which the business is awaiting payment from the state. (S.2609-D/A.3009-D, Part II).
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).
Modified to create an integrated NYS incubator and hot spot program; provides competitive grants to designated incubators; certain incubators may also be designated as “hot spots” with additional tax incentives available to incubator businesses, including income and sales tax abatements.
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)
The $150 appropriation was adopted in the final budget. The Excelsior credit set-aside is done administratively, and not subject to legislation.
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).
UDC loan authority is extended by one year, thru 7/1/14.
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).
This proposal was deleted from the Executive Budget in the 21 day amendments, and therefore was not considered for the final budget agreement.
Other capital funding proposals include:
- $165 million in additional economic development capital grants funding. (S.2604 / A.3004).
This appropriation was not included in the final budget agreement. The budget did include a new $385 million “state and municipal faculties” fund, to finance the construction, improvement, rehabilitation and reconstruction of facilities owned by the state or municipal corporations, the MTA, and colleges and universities.
- An additional $100 million to support the “Buffalo billion” commitment made in the FY 2012 budget; includes $75 million in capital (S.2604 / A.3004) and $25 million in Excelsior credits.
The $75 million appropriation was adopted in the final budget. The Excelsior credit set-aside is done administratively, and not subject to legislation.
- $32 million for university-based matching grants and other NYSTAR programs. (S.2600-B/A.3000-B).
Adopted as proposed; the final budget also added another $4 million for technology centers in Stony Brook, Buffalo, Rochester, Fredonia and Albany.
- $110 million to support the SUNY and CUNY 2020 initiatives. (S.2604/A.3004).
Additional Provision Adopted
- Expands purposes of the Excelsior linked deposit program to include biotechnology, information/communications technology, advanced materials and processing, electronic/photonic devices, energy efficiency and similar produces, and small scale systems integration and packaging. (S.2609-D/A.3009-D, Part HH).
- Allows the small business revolving loan fund to support financing to MWBE enterprises and small businesses with state contracts for services or construction, up to $5,000 per participant. (S.2609-D/A.3009-D, Part II).
- Directs the Urban Development Corporation to creates the NYS Innovation Venture Capital Fund, pursuant to a plan approved by the Division of Budget, state senate and state assembly. (S.2609-D/A.3009-D, Part JJ).
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.
Accepts state aid increases linked to implementation of teacher evaluations. Includes a nearly $1 billion increase in education aid. Provides that if a district does not have a performance review plan approved by the commissioner for the applicable school year as of September 1 of that year, the most recently approved plan will remain in effect until a subsequent plan is agreed to.
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.
Does not include provision on waivers from special education mandates.
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.
Includes Next Generation NY Job Linkage Incentive Fund, and provides that for the 2013-14 community college fiscal year, programs that confer a credit-bearing certificate, an AAS or AOS shall demonstrate that they are preparing students for current and future job opportunities by partnering with employers (note: there is no wording directly linking aid to such partnerships, as there was in the original executive budget). State university and city university trustees will be required to submit a “job linkage report” to the director of budget, chairs of senate and assembly higher education committees and the chair of the senate finance committee, and the chair of the assembly ways and means committee.
$110 million to support the SUNY and CUNY 2020 initiatives.
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.
Restored $505,000 in funding for the Public Utility Law Project
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 “knowing” violation; 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).
Significantly amends original executive proposal and applies largely to combination gas and electric corporations. Additionally, the new section 25-a of the PSL contains numerous due process and procedural changes. (A.3007-D/S. 2607-D, Part X).
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).
Extends the Temporary State Energy and Utility Service Conservation Assessment at 2% for 2015; 1.75% for 2016 and 1.5% for 2017; and requires an additional payment equal to 50% of 2017 assessment. This agreement will cost energy customers $1.9B.
Authorizes the New York State Energy Research and Development Authority to finance 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.
Additional Provisions Adopted
Codifies the Public Service Commission Order Instituting Proceeding and Requiring Evaluation of Generation Repowering, as provided in Case 12-E-0577, regarding the examination of repowering alternatives to transmission reinforcements (A.3007-D/ S. 2607-D Part Y).
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).
The proposed language was amended significantly, but did not contained amendments proposed by the Assembly that would have expanded the bottle bill 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).
Extends the waste tire disposal tax until 2016.
Extends the effective date for the Diesel Emissions Reduction Act from December 2013, until December 2015 (S.2068, Part T).
Extends the effective date until December 2014.
Provides authority for the New York Property Insurance Underwriting Association (NYPIUA) to issue broad form insurance coverage for 10 years beginning June 30, 2008. (S.2605-D/A.3005-D, Part W).
Suspends New York State drivers licenses of taxpayers who owe certain past due tax liabilities. (S.2609-D/A.3009-D, Part P).
Basic provision adopted, the provision which prohibits an insurance company from using the fact that a taxpayer's license is suspended from increasing, cancelling or declining a vehicle insurance policy was deleted.
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
- Eliminates the Healthy NY program for individuals, sole proprietors and small group insurance as of December 31, 2013, eliminates the Healthy NY stop loss fund effective 1/1/15 and eliminates the Family Health Plus program, effective January 1, 2015. The bill creates a transition process for enrollees from these programs to the Exchange.
(S.2606-B / A.3006-B, Part C).
- Increases small group employer group size up to 100, effective January 1, 2016 and adopts the ACA's narrower definition of “employee” effective on the same day. (S.2606-B / A.3006-B, Part A).
- Modifies autism annual benefit cap of $45,000 to 680 hours to circumvent ACA's dollar cap prohibition. (S.2606-B / A.3006-B, Part D).
- Authorizes DFS to suspend or terminate the State's risk adjustment mechanism for individual and small group markets, Regulation 146. (S.2606-B / A.3006-B, Part D).
- Immediately amends “Ian's Law's” notification requirements, when plans seek to discontinue or change benefit structures. (S.2606-B / A.3006-B, Part D).
- Community Rating of Professional Employer Organizations. (S.2606-B / A.3006-B, Part D).
- Effective January 1, 2014, establishes standardized rating regions and separate community rating pools for catastrophic coverage. Authorizes DFS to establish standard premium tiers and rating relativities between tiers.
- Establishes an open enrollment period in the individual market to mirror that contained within the ACA.
- Mandates Early Intervention services on private health insurance providers. To mitigate costs, it also:
- Allows health insurance representatives to be part of a team that develops and reviews a child's Individualized Family Services Plan (IFSP).
- Requires EI providers to join health insurance networks, negotiate rates insurers, and fully exhaust all appeals over claims. (S.2606-B /A.3006-B, Part E).
- Requires pharmaceutical manufacturers to provide a minimum supplemental rebate for drugs that are eligible for state public health plan reimbursement. (S.2606-B / A.3006-B, Part A).
- Continues the 2% across-the-board reduction of Medicaid payments for two years through March 31, 2015.
- Repeals “prescriber prevails” for atypical anti psychotics.
- Broadens the population subject and transitioned to Medicaid Managed Care and creates the process by which the disabled population will come into managed care programs.
- Eliminates the cap on the maximum number of Managed Long Term Care plans that can be authorized.
Additional Provisions Adopted
- Both houses added a provision requiring prompt payment of healthcare provider bills but failed to include any provision mandating prompt billing by healthcare providers.
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).
Increases the state's minimum wage from the current $7.25/hr. to $8.00/hr. on December 31, 2013, $8.75/hr. on December 31, 2014 and $9.00/hr. on December 31, 2015. No automatic indexing of future increases is included. Adopts related tax credit (see tax section for details).
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.
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).
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).
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).
This proposal was modified to impose a 2% assessment in FY 2015, 1.75% in FY 2016, 1.5% in FY 2017 and in effect 1.5% for one half of FY 2018, for an aggregate increase in Article 18-A revenue of $1.3 billion.
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).
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).
Expand the NYS False Claims act to include acts, including tax-related acts, that “knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the state or a local government, or conspires to do the same.” Mandates awarding of costs to prevailing state and local entities and qui tam plaintiff, even if they do not prevail in court. (S.2606—B/A. 3006—B, Part A)
Amendments were modified to preclude alleged tax law violations from the expanded definition of a false claims; proposed expansion of broadly applicable provisions regarding recovery of court costs were limited, and allows for awarding to costs of prevailing defendant in frivolous qui tam case.
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).
Largely rejected. Instead, the final agreement: reinstates the pre-2002 prohibition on IDA's support for most retail projects (with exceptions for where projects address underserved or highly distressed communities); imposes new recordkeeping and recapture requirements on IDA-provided state sales tax abatement.
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).
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).
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).
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).
Extends these provisions for three years, through December 31, 2016.
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).
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).
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).
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).
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).
Part N was rejected; Part O was adopted.
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).
Additional Provisions Added
- Adopted a corporate franchise tax reduction for “qualified NY manufacturer,” (i.e., a taxpayer or combined group with >50% of income from manufacturing activity that either has at least $1 million in mnfg-related capital in NY or all of its capital in NYS.) With regard to the entire net income basis tax rate, the new rates as follows: 2014 = 5.9%; 2015 = 5.7%; 2016-18 = 5.5%; 2019 and thereafter = 4.875%. Comparable reductions were adopted for Article 9A capital base, AMT and fixed dollar minimum 9A calculations for these qualifying manufactures. (Note: there is no corresponding reduction under the personal income tax for manufacturing-related income from sub-S corps, partnerships or LLCs.) (S.2609-D/A.3009-D, Part Z).
- Extends the “temporary” personal income tax rates, adopted in December 2011, for tax years 2015 through 2017. This maintains the 8.82% rates on income over $1 million for singles, $2 million for joint filers; and lower rates (below the permanent rate of 8.65%) for incomes below $300,000. Net revenue impact is $2 billion/year. The budget also included a $350 per yeasr PIT rebate to residents with one or more dependent children under the age of 17, and AGI between $40,000 and $300,00, for tax years 2014, 2015 and 2015. (S.2609-D/A.3009-D, Part FF).
- A refundable minimum wage credit, applicable to C and S-corporations, sole proprietors, LLCs and partnerships taxed under the state's corporation, corporate franchise, personal income, bank and insurance taxes; applicable to employees 16 to 19 (inclusive) that are a “student” at the time they are being paid the minimum wage; the refundable credit applies under and is set at: 2014 = $0.75/hour; 2015 = $1.31/hour; 2016-18 = $1.35/hour. If federal minimum wage increases to at least 85% of the applicable NYS minimum wage, these credits are reduced to the difference that the state min wage exceeds the federal. If the feds go higher, these credits go to 0. (S.2609-D/A.3009-D, Part EE).
- A non-refundable tax credit for hiring qualified veterans (discharged after 9/11/01, not fully employed for previous 6 months), equal to 10 percent of wages paid in first year of employment, up to a maximum of $5,000 (or 15% and $15,000 for qualified disabled veteran); credit is in tax years 2015 and 2016, available under Corporate Franchise, Personal Income, Bank and Insurance tax. (S.2609-D/A.3009-D, Part Z).
- Extends the at risk youth employment tax credit through 2018, and modifies eligibility to persons residing in cities with populations over 55,000 (rather than 62,000). (S.2609-D/A.3009-D, Part DD).
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 / A.3005-B, Part N).
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.
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).
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).
Provisions in final agreement; provides $225 million for repair of roads, bridges and infrastructure under the NY Works program; $100 million awarded competitively through the Regional Economic Development Councils.
Provides a total Department of Transportation capital program of $4.3 billion. (S.2604-B / A.3004-B).
Provisions in final agreement; provides a total Department of Transportation capital program of $4.266 billion.
Maintains the CHIPS and Marchiselli funding at $402.3 million. (S.2608-B / A.3008-B, Part A).
Provision in final agreement; increases the CHIPS and Marchiselli funding to $477.8 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).
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).
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).
Accepts the Executive's proposal but prohibits the use of any net proceeds from the lottery including proceeds from Video Lottery gaming for payment of non-lottery expenses.
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).
Accepts the Executive's proposal but also requires one percent of VLT fees from Aqueduct that are for purse enhancement at the thoroughbred tracks be paid to the Gaming Commission to promote and ensure equine health and safety; any unused funds during the fiscal year shall be returned on a pro-rata basis for purse enhancement.
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).
The “Taste-NY” program was deleted entirely from the Article VII budget language. An additional $2 million was appropriated for “Market-NY” which is now intended to be a marketing and promotion program of both NYS regional events and NYS produced goods and products. (S.2603-E/A.3003-E).
Eliminates restrictions on Quick Draw sales to promote additional sales. (S.2609-B / A.3009-B, Part S).
Extends current commission rate paid to Monticello as a video lottery agent for one year. (S.2609-B / A.3009-B, Part T).
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):
- Removing the expiration date for in home simulcasting.
- Making permanent: the current percentage of total pools allocated to purses at Westchester county tracks; provisions governing the simulcasting of races conducted at out of state harness tracks; provisions for the simulcasting of out of state thoroughbred races on days the Saratoga thoroughbred track is closed; the current distribution of revenue from out of state simulcasting during the Saratoga meet; the current amount of off track betting wagers on NYRA pools dedicated to purse enhancement; and the current distribution of revenue from on track wagering on NYRA races.
- Repealing the expiration date for account wagering.
Amends the expiration for the below provisions by one year:
In-home simulcasting; the current percentage of total pools allocated to purses at Westchester county tracks; provisions governing the simulcasting of races conducted at out of state harness tracks; provisions for the simulcasting of out of state thoroughbred races on days the Saratoga thoroughbred track is closed; the current distribution of revenue from out of state simulcasting during the Saratoga meet; the current amount of off track betting wagers on NYRA pools dedicated to purse enhancement; and the current distribution of revenue from on track wagering on NYRA races. (S.2609-D / A.3009-C, Part U).
Provides tourism related funding as follows:
- $5,000,000 for “Market-NY,” a new regional competitive grants program for tourism marketing.
- $2,500,000 for tourism marketing through I Love NY.
- $2,000,000 for the “Taste-NY” program.
- $3,815,000 for tourism marketing through the County Matching Funds Program. $196,000 for the operation of a gateway information center in Beekmantown.
- $196,000 for the operation of a gateway information center in Binghamton.
- $713,000 for the Wine and Grape Foundation.
- $40,000 for the Cornell University Geneva experiment station hop evaluation and field testing program.
Provides tourism related funding as follows:
- Increases the funding for “Market-NY” to $7,000,000. “Market-NY” will be a new marketing and promotion program for both NYS regional events and NYS produced goods and products.
- Kept funding for I Love NY at the Executive's proposed level of $2,500,000.
- Kept the funding of the County Matching Funds Program for tourism marketing at $3,815,000.
- Kept the executive's proposed level of funding for both Beekmantown and Binghamton's gateway information centers
- Increases the total funding for the Wine and Grape Foundation to $1,000,000.
- Kept the executive's proposed funding for the Cornell University Geneva experiment station hop evaluation and field testing program at $40,000.
- Allocates $70,000 for the Queens Tourism Council.
- Allocates $75,000 for the Finger Lakes Tourism Alliance.
(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:
- Increase the taxable wage base to $10,300 in 2014 and in steps to $13,000 in 2026, and to 16 percent of the average annual wage in subsequent years.
- Eliminate the six lowest tax brackets in the state's UI tax table (raising the tax rate for the post positive experienced-rated employers from 0.9 percent to 1.5 percent).
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.
Require a minimum of two documented prospective employer contacts per week, subject to random audit.
Removed and replaced by "the commissioner shall promulgate regulations defining systematic and sustained efforts to find work and setting standards for the proof of work search efforts."
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.
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.
Modified from fund amount on December 31 of the previous year to May 1 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.
Agreed to but modified to include that a claimant whose high calendar quarter is $4000 or less but greater than $3575 shall have a weekly benefit amount of one twenty-sixth of such high calendar quarter.
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).
Replaced with a qualification based on a calculation of 221 times the minimum wage.
Additionally, the penalty and interest charges as well as the ability to file with a county clerk judgments have been modified to include a number of requirement, including, the need to include, “Conspicuous language that reads as follows: "Once entered, a judgment is good and can be used against you for twenty years, and your money, including a portion of your paycheck and/or bank account, may be taken. Also, a judgment will hurt your credit score and can affect your ability to rent a home, find a job, or take out a loan."
Additional Provision Adopted
An individual who has filed a previous valid original claim must have worked in employment and been paid remuneration for such work since the beginning of such previous claim in an amount equal to at least ten times the claimant's weekly benefit rate in order to be able to file a subsequent valid original claim. The original proposal was “five times the claimant's weekly benefit.”
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. (S.2605-B / A.3005-B, Part O).
In Final Agreement with the addition of a provision granting the chair the authority to conduct periodic audits of any employer, self-insurer, insurance carrier and the state insurance fund concerning any information or payment required under the section. An insurance carrier or employer that knowingly makes a material misrepresentation of information required for the purpose of effectuating this section shall be guilty of a class E felony. (All workers' comp provisions are in S.2607-D / A.3007-D, Part GG).
Closes the Reopened Case Fund (25-a) to any new claims, and a resultant reduction in assessments for 25-a purposes.
Eliminates mandatory deposits into the Aggregate Trust Fund (ATF) for commercial carriers and the closing of the ATF to any new deposits.
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.
Increases from $100 to $150, the minimum weekly benefit for injured claimants, applicable only to claimants injured after May 1, 2013.
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.