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FY 2019 Budget Summary

Contact: Ken Pokalsky

CAMPAIGN FINANCE & ETHICS REFORM

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

LLC “Loophole”

Extend to limited liability companies the $5,000 annual campaign contribution limit applicable to corporations.

Ethics Article VII bill, Part D

 

 

Social Media Advertising

Subject online and social media political advertising to same disclosure standards as all other traditional media outlets; require digital platforms to maintain public records of all political advertisements purchased by a person or group and published on that digital platform.

Ethics Article VII bill, Part A

 

 

Public Campaign Financing

Adopt system of public financing of campaigns, with new lower limits on direct contributions to statewide and state legislative candidates; Establish the “New York State Campaign Finance Fund", with transfers from the Abandoned Property Fund and taxpayer designations of PIT liability; and limiting contributions to “housekeeping accounts” to $25,000.

Ethics Article VII bill, Part F

 

 

FOIL Reform

Extend the freedom of information law to the NYS legislature; make proposed terms of a collective bargaining agreement available to the public; clarify that access to records may be denied where disclosure could endanger critical infrastructure; require commercial entities to renew requests for trademark protection; and outline the process to handle suits by commercial entities to block disclosure.

Ethics Article VII bill, Part G

 

 

CONSTRUCTION

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Dormitory Authority

Authorize DASNY to provide capital construction services to Office of Children and Family Services

ELFA Article VII bill – Part K

 

 

Infrastructure Funds

Would re-direct certain revenues and program spending from the Dedicated Highway and Bridge Trust Fund to the General Fund, and direct that future revenues raised by the Payroll Mobility Tax be sent straight to the MTA without need of appropriation.

TED Article VII bill – Part K

 

 

MTA RPT Assessment

Authorizes the Metropolitan Transit Authority to designate areas that benefited from its capital projects, and impose an assessment on property in the designated areas up to 75% of the incremental increase in real property taxes levied on such property.

TED Article VII Bill, Part L

 

 

NYC Subway System Capital

Amends public authorities’ law to pay for capital expenses in New York City Transit Authority capital plan; in case of natural disaster NYS to pay appropriate amount for repairs and NYC to match that amount.

TED Article VII bill – Part M

 

 

MTA Procurement

Changes threshold for bidding for lowest responsible bidder to $1million from $100,000. Allows look back in certain areas to “terminate, modify or amend any service or funding agreement approved prior to the effective date of this subdivision that does not include a defined duration term, or contains an initial term that explicitly or in effect has a duration longer than twenty years.”

TED Article VII bill – Part N

 

 

MWBE Reauthorization and Executive Law Article 15-A

Extends program to all “state-funded entity”; personal net worth levels to be determined by director in regulations; state contract level now $50,000 (was $25,000) to expend or “grant” funds; primary residence net worth changed to reflect holding company assets.

Diversity practices now include “minority groups and women as members of board or officers”

"State-funded entity" shall mean any unit of local government, including, but not limited to, a county, city, town, village, or school district that is paid pursuant to an appropriation in any state fiscal year.

Statewide advocate to investigate and monitor program throughout agencies; conduct periodic statewide audits.

Director to promulgate regulations based on…”the findings of the disparity study” and “establish criteria for agencies to credit the participation of minority and women-owned business enterprises towards the achievement of the minority and women-owned business enterprise participation goals on a state contract based on the commercially useful function provided by each minority and women-owned business enterprise on the contract” and base “contract-specific participation goals”

Public buildings law amended to give 10% bid preference to MWBEs in low bid contracts.

Create new crimes of defrauding and/or providing misinformation in regards to MWBE for purpose of being awarded contract.

New Workforce Diversity Program to sets “aspirational goals” for minorities and women in “each trade, profession, and occupation” for “each county of the state.” Requires reporting of hours worked by contractors and subs identifying “race, ethnicity, gender, and trade, profession, or occupation of each employee preforming work on a state contract.” 

Provisions to take effect 4/1/18; deemed repealed 12/31/23.

TED Article VII bill– Part Q

 

 

Expands the Use of Design-Build but with PLAs

Expands use of design-build method but in conformity with Section 222 of Labor Law (PLAs) to the dormitory authority, the New York state urban development corporation, the office general services, the department of health, and the New York state Olympic regional development authority. Adds “buildings and appurtenant structures”.

“The design-build contract may include both lump sum elements and cost-plus not to exceed guaranteed maximum price elements, and also may provide for professional services on a fee-for-service basis.”

Requires project labor agreements for design build contracts.

TED Article VII bill – Part R

 

 

CONTRACT PROCUREMENT

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Extend Article 15-A

Extends applicability of the state’s MWBE contracting provisions to 12/31/23; expands applicability to municipal contracts. Additional details in Construction section above.

TED Article VII bill, Part Q

 

 

Chief Procurement Officer

Establish the office of NYS Chief Procurement Officer to oversee all procurements by state agencies and authorities.

Ethics Article VII bill, Part K

 

 

Sexual Harassment Provisions

Require state contractors to annually report on sexual harassment violations; nondisclosure agreements executed by the contractor; and employee training practices related to sexual harassment prevention (Part A)

Prohibit employers from requiring, as a condition of employment, contracts restricting employees’ ability to file claims for sexual harassment (Women’s Agenda Article VII bill, Part I)

 

 

Ban on Vendor Contribution

Prohibits campaign contributions from parties actively bidding on or have recently bid on any government procurement contract to office-holders and candidates associated with the branch of government requesting the procurement.

Ethics Article VII bill, Part L

 

 

MTA Procurement

Changes threshold for bidding for lowest responsible bidder to $1million from $100,000. Allows look back in certain areas to “terminate . . . agreements . . .  that do not include a defined duration term, or contains an initial term that explicitly or in effect has a duration longer than twenty years.”

 

 

Vendor ID codes

Require a study on the feasibility of single identifying codes for contractors, vendors, and other State payees to improve the State’s oversight and monitoring of business activities. Report due by 9/1/18.

Ethics Article VII bill, Part M

 

 

ECONOMIC DEVELOPMEMT

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

CPA Minority Ownership

Allow public accounting firms to have minority ownership by individuals who are not Certified Public Accountants.

ELFA Article VII Bill, Part F

 

 

UDC Authority

Extends by one year, to 7/1/19, UDC’s authority to administer the Empire State Economic Development Fund.

TED Article VII Bill, Part O

 

 

UDC Loan Authority

Extends by one year, to 7/1/19, the UDC’s general loan authority.

TED Article VII bill, Part P

 

 

Community Service Block Grants

Repeals state requirement that recipients of federal CSBGs obtain a 25% local funding match.

TED Article VII bill, Part V

 

 

Ag & Dairy Marketing Orders

Make permanent the ESDC’s authority to administer agricultural and dairy marketing orders, which expires in 2018.

ED Article VII bill, Part Y

 

 

Hotel Liquor License

Creates a new special on-premises liquor license for hotels without a full-service restaurant to allow for room service and mini-bar access without requiring an on-premises full service restaurant.

PPGG Article VII bill, Part Q

 

 

Liquor Exports

Creates a new exporter license for businesses that export NYS-made alcoholic beverages and do not sell to wholesalers or retailers within the state.

PPGG Article VII bill, Part S

 

 

 

EDUCATION / WORKFORCE DEVELOPMENT

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Education Funding / General Policies

$769 million school aid increase (3% increase).

Foundation Aid is increased by $338 million. Over 70 percent of the increase goes to high‐need school districts.

$15 Million Pre‐K Expansion. The additional investment in prekindergarten will bring high‐quality prekindergarten instruction to 3,000 three‐ and four‐year‐old children in high need school districts.
ELFA Article VII bill, Part A

$9 million increase for Early College High School Programs to create 15 new early college high school programs.

“Smart Start” program, $6 million to expand high‐quality computer science and engineering education.

$2.5 million increase in funding for Advanced Placement (AP) and International Baccalaureate (IB) program support; $2 million each to subsidize AP and IB exams for low income students. $500,000 for schools to expand advanced coursework for those with limited offerings.

Increase Charter School tuition in alignment with public school spending.

ELFA Article VII bill, Part A

 

 

Higher Education

$7.5 Billion for higher education, a $103 million increase (an increase of $1.4 billion or 24 percent since FY 2012.)

 

 

Excelsior Scholarship

Second Phase of the Excelsior Free Tuition Program, increasing the income eligibility threshold for the 2018‐2019 academic year to include New Yorkers with household incomes up to $110,000.

 

 

NYS DREAM Act

Would make students without lawful immigration status eligible for the Excelsior Scholarship, the Tuition Assistance Program, the Enhanced Tuition Award, and other State financial assistance programs offered to college students who are New York State residents.

Eligible student have lived continuously in NYS while attending high school (or pursing GED), and apply to in-state college within five years of high school graduation.

ELFA Article VII bill, Part E

 

 

Workforce Development Funding
[from State of the State, not specifically addressed in Executive Budget]

Establish new, $175 million Consolidated Funding Application (CFA) program through the REDCs. The funding for the workforce CFA will consist of $150 million in new, flexible resources and $25 million in existing streams of workforce funding.

Create new office of Workforce Development that will serve as a focal point of accountability and coordination for all workforce training programs for the state, including the new CFA program. Headed by a new Director of Workforce Development, the Office will establish standards for program performance and ensure alignment with the economic development goals of the state and the individual regions.

Launch One-Stop Shop for Workers and Businesses
The State will create a new One-Stop Shop for all New York's Workforce that offers key information to workers and businesses through a straightforward and useful online portal.

Utilize State-of-the-Art Data Analytics to Plan and Map New York's Innovation Economy. Scale the Monroe County Community College data mining methodology to identify local workforce needs across New York State; ensuring that all regions have access to the data needed to develop sector-based workforce development plans.

 

 

ENERGY

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Sales Tax on ESCOs

Repeals the sales tax exemption for the cost of transporting, transmitting, or delivering taxable gas or electricity, if the commodity is purchased from an ESCO. Enacting this legislation will result in an increase of $128 million in State sales tax.

Revenue Article VII bill, Part V

 

 

NYSERDA Transfer

Directs the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from NYSERDA.

PPGG Article VII bill, Part GG

 

 

RGGI Sweep

Directs the Comptroller to receive for deposit to the General Fund up to $23,000,000 from proceeds collected by NYSERDA from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation.

PPGG Article VII bill Part GG

 

 

“Little 18-a Assessment”

Authorizes NYSERDA to finance its research, development and demonstration, policy and planning, and Fuel NY programs, and to finance the Department of Environmental Conservation’s (DEC) climate change program, from a special assessment on gas and electric corporations not to exceed $19.7 million.

Directs a transfer $1 million to the state general fund for services and expenses of the department of environmental conservation & $ 150,000 to Ag & Markets and to transfer $825,000 to the University of Rochester laboratory for laser energetics from the funds received.

TED Article VII bill, Part EE

 

 

Expanded 18-a Assessment

Authorize utility oversight related expenditures of the Department of State ($1,130,000), Departments of Agriculture and Markets ($435,000), Environmental Conservation, State ($1,170,000)  and the Office of Parks, Recreation and Historic Preservation ($99,000) as eligible expenses of utility assessment revenues (18-a).

TED Article VII bill, Part DD

 

 

NYPA to Provide Energy Related Projects

Authorizes NYPA to engage in energy-related projects, programs and services with any of its power customers, not just those customers who purchase power under the specific power programs.  Additionally, this legislation would also amend expand the definitions of “energy-related projects, programs and services” and “public entity.”

TED Article VII bill, Part FF

 

 

NYPA to Develop Renewable Energy Projects

Authorizes NYPA to develop renewable energy projects, procure renewable products, allocate and sell renewable products that it produces or procures to public entities and NYPA customers, fully recover its associated costs from the entities that purchase renewable products.

TED Article VII bill Part GG

 

 

ENVIRONMENT

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Brownfield Opportunity Area (BOA)

Amends the BOA program which provides grants and technical support to help municipalities and community organizations implement hazardous waste site revitalization strategies for their communities. The proposal would eliminate steps in the BOA designation process.

TED Article VII bill, Part U

 

 

Empire Forests for the Future Initiative

Modifies existing forestry property tax law (480a), create a new property tax incentive for privately owned forests and open space (480b); also provides EPF appropriations for the Community Forest ($500,000) and Empire Forest Incentive Program (i.e. private forest stewardship cost share) ($500,000).

TED Article VII bill, Part Z

 

 

Mandated Recycling of Organic Waste

Beginning January 1, 2021, would require certain high volume generators of food waste high volume food waste generators such as manufacturers, supermarkets, large restaurants, higher educational institutions and healthcare facilities that produce an annual average of two tons per week or more of excess food and food scraps at a single location  to divert excess edible food and food scraps to food banks, animal feed operations, composting facilities, anaerobic digesters, or other organics recycling facilities.  The proposal has been amended from last year to address some concerns.

TED Article VII bill Part BB

 

 

Clean Water Infrastructure Act Technical Amendments

Amends the Clean Water Infrastructure Act of 2017 "solid waste mitigation" and "drinking water response" accounts and in order to provide for programmatic spending directly against the CWIA appropriation.

Makes corresponding change to cost recoveries from responsible parties pursuant to Title 12 of Article 27 of the Environmental Conservation Law (ECL), which relates to the remediation of drinking water contamination.

TED Article VII bill, Part AA

 

 

Expansion of Core Preservation Area of the Central Pine Barrens

Expands the Core Preservation Area of the Central Pine Barrens through the inclusion of two areas; also requires the Town of Brookhaven, Suffolk County, and the Central Pine Barrens Joint Planning and Policy Commission to provide an assessment of properties that would be suitable for solar projects in the Town of Brookhaven, while minimizing the need to utilize open space that may be suitable for future addition to the Core Preservation Area.

TED Article VII bill Part CC

 

 

FINANCIAL SERVICES

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Non-CPA Ownership of Accounting Firms

Allow public accounting firms to have minority ownership by individuals who are not Certified Public Accountants.

ELFA Article VII bill, Part F

 

 

Private Sector Savings Plan

Empowers the New York State Deferred Compensation Board to Create a Voluntary Retirement Savings Program for Private-Sector Employees.

PPGG Article VII bill, Part X

 

 

Increases DFS Fines on Insurers

Increases fines on insurers for failure to pay a claim or making a false statement to the superintendent from $1000 to $10,000.

HMH Article VII bill, Part O

 

 

HEALTH

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Pharmaceutical-Related Medicaid Redesign (Social Services Law §365-a and §367-a)

Update pharmacy co-payment rates for prescription and non-prescription drugs to align with federal regulations.

HMH Article VII bill, Part D

 

 

Pharmaceutical-Related Medicaid Redesign (Public Health Law §273 and Social Services Law §364-j)

To reduce inappropriate prescribing, eliminates the prescriber’s right of final determination in both FFS and managed care when the justification for use is not clinically supported.

HMH Article VII bill, Part D

 

 

Establish an Opioid Epidemic Surcharge

Establishes an opioid epidemic surcharge, thereby imposing a surcharge, in the amount of two cents per morphine milligram equivalent sold, on the first sale of all opioids in the State to fund and opioid prevention, treatment and recovery account. In order to “dis-incentivize the use of opioids by placing the share of societal costs from opioid use on the manufacturers, producers and distributors who financially gain from the use of these drugs.”

Revenue Article VII bill, Part CC

 

 

Healthcare Insurance Windfall Profit Fee

Imposes a healthcare insurance windfall profit fee in the amount of 14% on the net under writing gain from the sale of health insurance in the State.

Revenue Article VII bill, Part DD

 

 

INFORMATION TECHNOLOGY & TELECOMMUNICATIONS

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Permits Term Appointments for Eligible, Highly-Specialized ITS Positions Without Initial Civil Service Examination

allows a term appointment without examination to a temporary position requiring special expertise or qualifications in information technology within ITS. Max of 60 months; 300 appointment limit.

PPGG Article VII bill, Part W

 

 

Allow the Thruway to Set Fees for Use of Its Fiber Optic System

Agreement for use of the New York state thruway authority's fiber optic system, or any part thereof, may be made through agreements based on set fees rather than public auction or negotiation based on “best interest of thruway” and “appraisal of the fair market value.”

TED Article VII bill, Part D

 

 

Authorize the Department of Transportation (DOT) to Charge for Use and Occupancy of Fiber Optic Lines on DOT Right of Way and Establish a Uniform Process for the Siting of Small Cell Wireless Facilities

Authorizes DOT to charge for fiber optics right of way; exempts those participating in the New NY Broadband Program; prohibits fee from being passed onto consumers;

Adds a new article 13-E: Small Wireless Facilities Deployment. Defines terms, size and measurements of equipment and antennas; collocation of small wireless facilities and micro wireless facilities; Rights of way (ROWS) and conditions; application structure and associated fees; fee adjustments; methods for charging for use of ROWS when additional entities also utilize them, repairs; addresses municipal agreements with companies; dispute resolution; indemnification.

TED Article VII bill, Part F

 

 

TAXATION

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Income Tax  Restructuring

The Executive Budget includes no proposed changes to Articles 9A or 22 in response to federal reforms.  Department of Taxation and Finance has issue a report on options to mitigate limits on federal SALT deductions.

 

 

Business Tax Credit Deferral

For taxpayers’ with more than $2 million in NYS tax credits in 2019 and 2020 tax years, defers realization of such credits; applies to most business credits under Articles 9, 9A, 22 and 33 including the ITC, EZ and QEZE, brownfield, alternative energy, Tax Free NY, manufacturing RPT and other credit program; major exclusion is the film production credit.  Deferred nonrefundable credits would be claimed and carried forward in tax years starting 2021; 50% of deferred refundable credits could be claimed in 2021, 75% of remaining deferred credits claimed in 2022; remainder claimed in 2023.

Article VII Revenue Bill, Part S

 

 

“Marketplace Providers”

Requires “marketplace providers” to collect sales tax on sales of tangible personal property it facilitates; marketplace provider defined as providing the sales forum and collects receipts on behalf of a seller, with $100 million in annual facilitated sales.

 

 

Tax Tribunal Appeals

Authorizes the Tax Commissioner to appeal decisions of the Tax Tribunal.

Article VII Revenue Bill, Part N.                             

 

 

“Health Insurance Windfall Profit Fee”

Amends the Insurance Tax to impose a 14% surcharge on the “net underwriting gains from the sale of health insurance” to New York customers.

Article VII Revenue Bill, Part DD.

 

 

“Opioid Epidemic Surcharge”

Imposes a new 2 cent per milligram tax on the initial sale of opioids and similar products, with proceeds to be used to support for opioid treatment, recovery and prevention and education services.

Article VII Revenue Bill, Part CC

 

 

MTA RPT Assessment

Authorizes the Metropolitan Transit Authority to designate areas that benefited from its capital projects, and impose an assessment on property in the designated areas up to 75% of the incremental increase in real property taxes levied on such property.

TED Article VII Bill, Part L.

 

 

“Carried Interest Fairness Fee”

Imposes a 17% surcharge on certain newly defined “investment management services;” provisions becomes effective when adopted by CT, NJ, MA and PA. Similar to S.1991 (Klein)/A.3554 (Aubry)

Article VII Revenue Bill, Part M

 

 

ESCO Sales Tax Exemption

Repeals the sales tax exemption for gas and electric service associated with gas and electricity purchased from an energy service company (ESCO).

Article VII Revenue Bill, Part V

 

 

Telecom Property Assessments

Extends the assessment ceiling program for telecommunications property to 1/1/23 (current law expires 1/1/19); allows assessment ceilings to deviate from 2014 assessments by 25% in 2018, 50% in 2019 and 75% in 2020.

Article VII Revenue Bill, Part G

 

 

Statute of Limitations

Extend the statute of limitations for assessing additional tax to 3 years after filing of an amended return, under Articles 9, 9-A, 22, and 33 and NYC PIT.

Article VII Revenue Bill, Part H

 

 

Wage Reporting

Changes DTF wage and withholding requirements from annual to quarterly, to be consistent with current NYS DOL reporting timetable.

Article VII Revenue Bill, Part I

 

 

Sale for Resale Exemption

Provides an explicit sale for resale sales tax exemption for restaurants, cafeterias, caterers and other vendors when purchasing prepared food for resale.

Article VII Revenue Bill, Part J

 

 

NYS Residency

Amends NYS and NYC PIT laws to provide that a person present in the jurisdiction for more than 183 days in a year is a statutory regardless of their domicile.

Article VII Revenue Bill, Part O

 

 

Youth Jobs Credit

Increases the maximum amount of the youth jobs credit, adds additional documentation and reporting requirements.

Article VII Revenue Bill, Part R

 

 

Sales Tax Liability

Provide relief from sales tax liability to minority members of limited partnerships LLCs.

Article VII Revenue Bill, Part X

 

 

Wireless Surcharge

Extends for two years the existing suspension of the annual transfer of $1.5 million in Tax Law Section 186-f surcharges on wireless services to the Emergency Services Revolving Loan Fund.

PPGG Article VII Bill, Part M

 

 

TOURISM & TRAVEL

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Creates a New License for Production and Sale of Mead and Braggot in New York State.

Amend the alcoholic beverage control law, in relation to the production and sale of mead (sold as wine) and braggot (sold as beer).

PPGG Article VII bill, Part R

 

 

Creates a New Exporter License for Businesses that Export New York Alcoholic Beverages

An exporter's license shall authorize the holder thereof to purchase alcoholic beverages from licensed manufacturers solely for purposes of export outside of this state pursuant to and in accordance with the laws of the place of delivery. Annual fee of $125.

PPGG Article VII bill, Part S

 

 

Allow the Sale of Locally-Sourced Food and Beverages at Roadside Rest Areas Operated by DOT

Amends Highway Law to allow Allows DOT commissioner to approve “commercial facilities as are suitable for rest and relaxation stops by highway travelers”.

TED Article VII bill, Part B

 

 

TRANSPORTATION

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Strengthen the State’s Authority to Enforce Federal Motor Carrier Safety Regulations

Department of Transportation (DOT) commissioner enabled to suspend registrations because of an out of service order issued by the United States department of transportation, hold suspension until federal notice, and fine incrementally, after a hearing, each successive violation.

TED Article VII bill, Part A

 

 

Enhance Public Transportation Safety Board (PTSB) Enforcement Power in Compliance with Federal Requirements

Aligns NYS transportation law with federal law relating to federal rail fixed guideway public transportation systems.

TED Article VII bill, Part C

 

 

Authorize DOT to Collect a $120 Fee for Semi-Annual Inspections of Certain For-Profit Vehicles.

DOT shall charge and collect $120 for the inspection or re-inspection of all motor vehicles transporting passengers subject to the department's inspection requirements; exempts municipalities.

TED Article VII bill, Part E

 

 

Extends the Authorization of Autonomous Vehicle Testing in the State of New York.

Proscribes rules for the testing and driving of autonomous vehicles under supervision of commissioner of motor vehicles including security in amount of $5 million. Report on issue yearly, sunset in 2020.

TED Article VII bill, Part H

 

 

 WORKERS’ COMPENSATION

ISSUE

EXECUTIVE BUDGET

SENATE

ASSEMBLY

Allowing the State Insurance Fund Much Greater Latitude in its Ability to Invest Funds

Allows SIF to invest surplus funds in the obligations of American companies that are rated “A” or higher as described in subdivision (2) of Insurance Law § 1404(a); • Up to 25 percent of surplus funds in obligations of American companies that are rated investment grade by a nationally recognized securities rating organization; and • Up to 50 percent of surplus funds in the equities of American companies irrespective of the rating of an institution’s obligations or qualitative standard described in § 1404(a).

PPGG Article VII bill, Part Y