FY 2016 Final Budget Summary | The Business Council

Construction / Transportation

Makes permanent the use of the design-build construction method on public projects,and expands its use to all State agencies and public authorities; requires projects over $50 million to prepare a project labor agreement feasibility study (S.2008/A.3008, Part B).

The final agreement extends limited design-build authorization for two years. Agencies may continue to prepare PLA feasibility studies. (S.4610, Part F).

Directs $3.5 billion to the DOT capital program in 2015-16 (S.2004/A.3004, Capital Projects)

Final agreement appropriates $5 billion for DOT.

Permanently extends the transfer of approximately $235 million in revenue from the DMV to the Dedicated Highway and Bridge Trust Fund (DHBTF) and the Dedicated Mass Transportation Trust Fund (DMTTF); (S.2008/A.3008, Part A.)

Only extended through 2020.

Creates a new Dedicated Infrastructure Investment Fund where part of the proceeds of the windfall legal settlements will be used for infrastructure projects (S.2005/A.3005, Part O).

Executive Budget proposal adopted (S.4610, Part H).

Authorizes the Department of Transportation and the New York State Thruway authority to enter into agreements to provide mutual aid through the sharing of employees, services and resources (S.2008/A.3008, Part G).

Executive Budget proposal adopted.

Streamlines the registration process of vehicles weighing over 80,000 pounds by eliminating the need for duplicate visits to the DMV and DOT for registration and overweight permits (S.2008/S.3008, Part H).

Executive Budget proposal rejected.

Aligns New York State law with federal requirements regarding commercial learners’ permits, retaining $43 million in federal highway funding (S.2008/A.3008, Part I).

Executive Budget proposal adopted.

Doubles fines and penalties for toll evasion on all roads, bridges and tunnels operated by public authorities (S.2008/A.3008, Part K).

Executive Budget proposal not adopted.

Contract Procurement

Permits the state, in the case of a construction emergency, to let emergency contracts of up to $1 million for public work or the purchase of supplies, materials or equipment without complying with formal competitive bidding requirements (current threshold is $300,000) (S.2005/A.3005, Part M).

Executive Budget proposal is modified; threshold is lowered to $600,000.

Extends through 2019 statutes that allow the MTA and the New York City Transit Authority to use procurement methods to procure systems and construction contracts and maintains the $15,000 threshold above which MTA and NYCT must solicit purchases via sealed bids (S.2008/A.3008, Part L).

Executive budget proposal not adopted.

Extends for one year the date by which a MWBE disparity study must be delivered to the governor and legislature (S.2008/A.3008, Part Q).

Executive Budget proposal is modified; date is extended to August 15, 2016, instead of February 15, 2017.

Economic Development

Staff Contact: Ken Pokalsky

Capital Projects (S.2004/A.3004):
The Executive proposes a new $1.5 billion appropriation for the Upstate Revitalization Fund located in the Urban Development Corporation. See details under “Financial Settlements” section below.

Executive Budget proposal adopted.

Provides $150 million in additional funding for the Regional Development Councils.

Executive Budget proposal adopted.

Provides $110 million in additional funding for the NY Challenge Grant program. The funding will be evenly divided between NYSUNY 2020 and NYCUNY 2020 initiatives.

Executive Budget proposal adopted.

Provides $45 million for the New York Works Economic Development Fund.

Executive Budget proposal adopted.

Includes a new $33.5 appropriation for services and expenses of the New York power electronics manufacturing consortium. This is the first phase of a multi-year program that will provide a total of $135 million in funding.

Executive Budget proposal adopted.

Provides $32.2 million for the Economic Development Fund.

Executive Budget proposal adopted.

Provides $25 million to complete the new school of pharmacy at Binghamton University.

Executive Budget proposal adopted

Provides $19 million to Cornell University College of Veterinary Medicine to expand and upgrade infrastructure and teaching facilities at the Cornell University College of Veterinary Medicine

Executive Budget proposal adopted

Provide $5 million in additional funding to the Clarkson-Trudeau partnership to help grow biotech industry in the North Country.

Executive Budget proposal adopted.

Extend for one year the authority of the Urban Development Corporation to administer the Empire State Development Fund. This has been extended every year since 2012.(S.2008/A.3008, Part M):

Executive Budget proposal adopted.

This part would extend for one year the general loan making authority of the Urban Development Corporation. This has been extended every year since 1997. (S.2008/A.3008, Part N).

Executive Budget proposal adopted.

New Provisions

Provide $400 million for the Transformative Investment Program which provides for the payment of capital costs for regionally significant economic development initiatives that create or retain private sector jobs. Funds shall not be available to regions that eligible for the upstate revitalization initiative or the Buffalo Regional Innovation Cluster.
Specifies that monies appropriated under the Farmers NY Fund may be used to: 1) assist farmers in demonstrating innovative agricultural techniques including, but not limited to, organic farming and specialty crops; and 2) award capital grants, pursuant to a business plan to improve farm profitability. Upon completion of such business plan, recipients shall be eligible for capital grants to enhance the profitability of farming operations. Such grants may be used for purposes including, but not limited to, the purchase of machinery or the construction or improvement of physical structures. Any capital grant shall be issued with a one-to-one match between the state and recipient. (S.2008-B/ A.3008-B, Part FF)

Education / Workforce Development

Allows for local school districts, private schools and BOCES to submit waivers from special education requirements for a specific school year and provides for 60 days for the parents of students being affected to submit comments (S.2006/A.3006, Part A).

Executive Budget proposal not adopted.

Directs the commissioner of education to establish regional tuition rates for special education itinerant services based on average actual costs, and provides for the phase in over a four-year period (S.2006/A.3005, Part A).

Executive Budget proposal adopted.

Provides that any new curriculum or program of study offered by a four-year college or community college that does not require board of regents approval of a master plan amendment and that is approved by the board of trustees shall be deemed registered with the department. The board of trustees must notify the department within 30 days of such approval (S.2006/A.3006, Part B).

Executive Budget proposal not adopted.

Provides $3 million to support a third round of P-TECH school designations (S.2003/A.3003).

Executive Budget proposal adopted.

Enacts the New York State Get On Your Feet Loan Forgiveness Program; eligible applicants must: graduated from a high school located in New York State or attended or received a high school equivalency diploma in New York State; earn an undergraduate degree from a college or university with its headquarters located in New York State in or after 2015; participate in a federal income-driven repayment plan; have an income of less than $50,000; reside in New York; and, if employed, work in New York State. Awards will be equal to 100 percent of the participant’s monthly federal income-driven repayment plan payments for the first two years of repayment under the federal program (S.2006/A.3006, Part C).

Executive Budget proposal adopted.

Requires the SUNY and CUNY board of trustees to pass resolutions (by the end of 2015) providing that students be required to participate in an approved experiential or applied learning activity as a degree requirement (S.2006/A.3006, Part Q).

Executive Budget language was modified: boards will have to pass a resolution by June 1, 2015, and complete the plan by June 1, 2016, and experiential and applied learning activities are defined.

Institutes the Dream Act, extending eligibility for financial awards to applicants without lawful immigration status if the student attended a New York State high school for two or more years (and graduated) or received a high school equivalency diploma. (S.2006/A.3006, Part D).

Executive Budget proposal not adopted.

Adopts a new non-refundable education tax credit (S.2010/A.3010, Part E).

Executive Budget proposal not adopted.

Modifies the Youth Works Tax Credit (S.2009/A.3009, Part M).

Executive Budget proposal was modified. See Taxation section below for details.

Creates the Employee Training Incentive Program (ETIP) tax credit (S.2009/A.3009, Part O).

Executive Budget proposal adopted. See Taxation section below for details.

Amends the tenure process for teachers and principals hired after July 1, 2015, stipulating that new teachers will remain on probation until they receive five consecutive ratings of “effective” or “highly effective” on the APPR (S.2010/A.3010, Part A).

Executive Budget proposal was modified; probationary period is changed to four years, and teachers and principals must be rated as “effective” or “highly effective” for at least three of the four preceding years.

Authorizes the Commissioner of Education to a categorize a school district as failing (one that has scored in the lowest 2.5 percent of school districts statewide, when compared to other districts based on student achievement and performance on state assessments, graduation rates and drop-out rates) and appoint a receiver to create and enact a plan to improve student achievement (S.2010/A.3010, Part A).

Executive Budget proposal was modified; schools identified under the state’s accountability system to be in the lowest five percent of public schools for at least three consecutive school years will be categorized as “failing” and have two years to institute an intervention model/comprehensive ed. plan. Those that have been identified to be among the lowest achieving public schools in the state for 10 consecutive school years will be deemed as “persistently failing” and have one year to institute such a plan.

Increases the cap on charter schools by 100 to 560 (S.2010/A.3010, Part A).

Executive Budget proposal not adopted.

Requires institutions with graduate-level teacher education programs to adopt rigorous selection criteria including, including achievement of 3.0 or higher GPA in a candidate’s undergraduate program and a minimum GRE score (or comparable admission examination) as determined by the institution, and provides for the suspension of the institution’s operations if fewer than 50 percent of its students pass examinations required for certification. Also requires teachers to register with state ed. every five years and imposes a $10/month late fee, and requires teachers to complete at least 100 hours of continuing teacher education during each registration period (S.2010/A.3010, Part A).

Executive Budget proposal was modified; programs may exempt up to 15 percent of incoming students from the selection criteria. Final enacted budget language also extends the start date of the continuing teacher/leader education to July 1, 2016 (the original star date was July 1, 2015).

Creates the New York State Masters-in-Education Teacher Incentive Program for students in approved masters’ education programs who meet the following criteria: earned an undergraduate degree from a New York college and resided in New York while earning the degree; achieved academic excellence as defined by the corporation in regulation; and agree to teach on a full-time basis in New York for five years (S.2010/A.3010, Part A).

Executive Budget proposal adopted.

Amends the components of the teacher evaluation system to remove the local test portion and changes the weightings of the score components to 50 percent state tests and other comparable measures and 50 percent classroom observations.

Executive Budget proposal was modified; the APPR will include multiple measures in student performance and teacher observations. (Business Council Education/Workforce Development Committee members will be sent an update this week detailing the new APPR plan.)

While not included in the Executive Budget language, the Governor will create regional planning councils to work with community colleges to assure their programs address workforce needs.

Election and Campaign Finance Reform

Staff Contact: Ken Pokalsky

Requires campaign committee reports to identify “intermediaries” (i.e., bundlers) that deliver contributions to committees (S.2005/A.3005. Part E, Section 3).

Executive Budget proposal not adopted.

Establish a $25,000 annual limit for contributions to housekeeping accounts (S.2005/A.3005. Part E, Section 4).

Executive Budget proposal not adopted.

Establishes contribution limits for participants in the voluntary public financing program of $12,000 for statewide candidates ($6,000 for both the primary and general election); $8,000 for Senate candidates; and $4,000 for Assembly candidates. Lowers contribution limits for non-participating candidates to $25,000 for statewide offices ($10,000 for the primary and $15,000 for the general), $10,000 for senate candidates ($5,000 for each election), and $6,000 for assembly candidates ($3,000 for each election). (S.2005/A.3005. Part E, Section 6.)

Executive Budget proposal not adopted.

Establishes a $1,000 annual aggregate contribution limit for corporations and LLCs (S.2005/A.3005. Part E, Section 7).

Executive Budget proposal not adopted.

Prohibits the use of campaign contributions for “personal use”, to pay interest on loans to a committee by the candidate, and for specific categories of “personal use,” including household items; rental expenses on candidate-owned property that exceed market-rate levels; most clothing items; salaries for services not solely for campaign purposes; admissions to non-campaign related events; and others (S.2005/A.3005. Part E, Section 8).

The Legislation was modified and included in the Ethics package. Key modification was changing “personal use” to “converted by any person to a personal use”. Also states that any formal or informal State Board of Election advisory opinions on what is and isn’t a personal use of contributions will be binding on the Board of Election, Chief Enforcement Council and in any subsequent civil or criminal action or proceeding or administrative proceeding. S.2006-B/A.3006-B. Part CC, Section 9.

Effective for 2018 elections, creates a public campaign funding program; Sets public funding limits for primary and general elections for governor ($8 and $10 million respectively), other statewide offices ($4 million for both), for senate ($375,000 for both) and for assembly ($175,000 for both).
- Sets qualification thresholds for candidates, based on total contributions and number of contributors; Funding to be provided through tax return check-off contributions, transfers from the states’ abandoned property fund, appropriations from the state general fund and direct contributions; Provides a 6 to 1 match for qualifying contributions of up to $175; Only contributions from “natural persons” are matchable; lobbyists are categorically prohibited from making matchable contributions. (S.2005/A 3005. Part E, Section 9).

Executive Budget proposal not adopted.

New Provisions

Amends definition of "Independent expenditure" to include communications that references a “clearly identified candidate” issued within thirty days of a primary election or sixty days of a general election, precludes from the definition communications from a party or constituted committee. Also excludes from the definition interal communications by membership organizations with less than 500 members, and such communications by charitable organizations. S.2006-B/A.3006-B. Part CC, Section 8.

Energy

Staff Contact: Darren Suarez

Directs a payment of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA) to the General Fund. This transfer has been authorized for a number of years to cover the costs of West Valley. (S2008/A3008 Part O).

Executive Budget proposal adopted.

Authorizes $19.7 million in assessments on utilities to fund NYSERDA’s research, development and demonstration, and policy and planning programs, and DEC's climate change program. (S.2008/A.3008, Part P)

Amended to accept the assessment but cap collections at $19.7 million, and requires reporting of future expenditures.

Transfers $36 million of RGGI proceeds to the State, including $13 million to Environmental Protection Fund (EPF) to cover revenue shortfalls and to increase the EPF. (S.2005/A.3005, Part P.)

Amended to increase the RGGI sweep to $41 million.

Authorizes the Long Island Power Authority (LIPA) to issue specialsecuritized restructuring bonds that would reduce the interest rates paid on LIPA’s debt. (S2008/A3008, Part W.)

Amended to provide that LIPA must perform an engineering, environmental permitting and cost feasibility analysis and study of repowering the Port Jefferson power station and the E.F. Barrett power and the Northport power station.

New Additions

Requirement that NYSERDA provide the legislature with a semi-annual report which shall include information related to all proceeds collected and administered by NYSERDA pursuant to an order of the PSC. (S.2008/A.3008, Part RR).
Extends the Green Jobs/Green New York program, and requires NYSERDA to take steps to increase participation by low and moderate income individuals. (S.2008/A.3008, Part QQ).

Environment

Staff Contact: Darren Suarez

Extend the Brownfield program for ten years and limits the number of projects eligible for the tangible property credit. Program reforms include: adoption of the BCP---EZ, a fast---track approval option without tax credits; requiring sites in the Brownfield Cleanup Program (BCP) prior to 4/1/15 to obtain a certificate of completion by 12/31/17, or meet new tangible property credit eligibility criteria; exempt hazardous waste generated at certain remedial sites from fees and special assessments. Tax credit provisions are under
Taxation below. (S.2009/A.3009, Part R).

The final agreement contained significant modifications a more detailed review can be found here

Increases operating permit program fees for all sources subject to federal Clean Air Act permitting (Title V facilities): $2,500 for a source subject to state facility permit, $250 for a source subject to a minor facility registration, and $2,500 for a facility with any other operating approval (S.2008/A.3008, Part Y.)

Amended to remove increases to the State Facilities Permit fees, but all other fees were adopted as proposed.

State Pollutant Discharge Elimination System (SPDES) permit fees are increased between 15% to 25%, depending on the facility. (S.2008/A.3008, Part Y.)

Executive Budget proposal adopted.

Repeals the fee assessed by the Department of Environmental Conservation (DEC) on water well drillers. (S.2008/A.3008, Part Z).

Executive Budget proposal not adopted.

Provides $100 million to finance the New York State Superfund program. (S.2004/A.3005 P.85)Provides $155 million of new capital appropriations including $110 million for Parks infrastructure, $40 million for DEC capital needs, $2.5 million for ORDA infrastructure, and $2.5 million for improvements on the State fairgrounds.

Amended to extend the New York State Superfund program for 10 years at $100M per year with up to $10M annual devoted to the municipal brownfield program. Additionally, $200 million over the next three years will be awarded as grants to municipalities to repair and replace existing wastewater and drinking water infrastructure. The EPF includes an increase of $15 million over last year.

Amends the State Oil Spill Fund to expand the purposes of the Fund, to transfer its operations to DEC, and to increase the fees for oil transported through New York to 13.75 cents per barrel and to increase the per---barrel license fee for major oil storage facilities (MOSFs), irrespective of whether the oil remains in New York or is transferred to another State. (S.2008/A.3008, Part X)

Amended to exclude MOSFs from the fee increase if they transfer petroleum for their own use, and do not sell or transfer the product.

New Additions

State agencies would not have to comply with the requirement of Diesel Emissions Reduction Act (“DERA”) until December 31, 2016. (S.2008/A.3008 PART II)

Financial Services

Allows public accounting firms to incorporate in New York State with minority ownership by individuals who are not Certified Public Accountants. (S.2006/A.3006, Part G)

Executive Budget proposal not adopted.

Restructures New York City general corporate tax structure, which would apply to all corporations including financial corporations effective 1/1/15.

Adopted as S.4610/A.6721, Part D. See details under Taxation.

Financial Settlement Funding

Staff Contact: Ken Pokalsky

New York received $5.7 billion in financial settlements in the current state fiscal year which exceeded budgeted financial settlement projections by $5.4 billion. The Executive Budget proposal has dedicated this money to the following initiatives in the State Financial Plan:

Special Infrastructure Account ($3.05 Billion)

Thruway Stabilization Program ($1.28 billion), to fund the Thruway Stabilization Program for expenses related to both the new Tappan Zee Bridge and the statewide system.

Executive Budget proposal adopted.

Penn Station Access ($250 million), for MTA’s Penn Station Access project, which will open a new Metro-North link directly into Penn Station and construction of four new Metro-North stations in the Bronx.

Executive Budget proposal adopted.

Infrastructure Improvements ($115 million), for infrastructure improvements to support transportation, upstate transit, rail, airport, port, and other infrastructure improvements or economic development projects.

Executive Budget proposal adopted.

Broadband Initiative ($500 million), for the New NY Broadband Fund to expand the availability and capacity of broadband across the State.

Executive Budget proposal adopted.

Hospitals ($400 million), to support the restructuring of debt obligations and to fund capital improvements for, and to facilitate mergers and consolidations of, hospitals in rural communities.

Executive Budget proposal was modified by reducing the appropriation to $355 million.

Transit-Oriented Development ($150 million), funding to create new transit-oriented development, including but not limited to, the development of structured parking facilities at Nassau hub and Ronkonkoma hub.

Executive Budget proposal not adopted.

Resiliency, Mitigation, Security, and Emergency Response ($150 million), to support preparedness and response efforts.

Executive Budget proposal adopted.

Municipal Restructuring ($150 million), for local governments and school districts to implement shared services, cooperation agreements, mergers, and other actions that permanently reduce operational costs and property tax burdens.

Executive Budget proposal adopted.

Southern Tier/Hudson Valley Farm Initiative ($50 million) for landowners in the Southern Tier and Hudson Valley maintain and develop farming, agricultural, and related businesses.

Executive Budget proposal adopted.

Upstate Revitalization Account ($1.5 Billion)
The Upstate Revitalization Account will support the Upstate New York Economic Revitalization Competition, whereby $500 million grants will be awarded to three upstate regions. Funding will focus on economically distressed upstate metropolitan areas and surrounding regions; and on projects with region wide impacts, that strengthen critical infrastructure, that promote workforce development, and improve quality of life. Seven regions are eligible to compete for one of three $500 million grants: Mid-Hudson, Capital Region, Mohawk Valley, Central New York, North Country, Southern Tier, and Finger Lakes. The Governor announced the competition and process for winning upstate revitalization funds will be guided by a five-member Strategic Plan ReviewCommittee comprised of the following committee members: Bruce Katz, Brookings Institution; Marc Morial, President, National Urban League; Cesar Perales, New York Secretary of State; and Susan Christopherson, Professor and Chair of City and Regional Planning, Cornell University. There is no Article VII language associated with this program. The money is scheduled to be disbursed over a 5 year period as seen in the chart below.

Executive Budget proposal adopted.

Miscellaneous ($855 million)

Financial Plan Reserves ($850 million): The Executive Budget sets aside $850 million in settlement funds for potential Financial Plan risks.

Executive Budget proposal not adopted. These fund are set aside for reimbursement for Medicaid over payments.

Office of Alcoholism and Substance Abuse Services ($5 million): The Budget assumes that $5 million of settlement funds will be used to expand services provided by OASAS to individuals with dependencies on alcohol or drugs, or who have gambling problems.

Executive Budget proposal not adopted.

New Provisions

Roswell Park Capital Expenses ($15.5 million), to support capital expenses for the Roswell Park Cancer Institute.
Community Health Care Revolving Loan Fund ($19.5 million), monies in the revolving capital fund shall be utilized for the purpose of making loans to qualifying participating borrowers to improve access to affordable capital financing to expand and improve capacity to provide health care in the State.
Medicaid Managed Care Benefit Package ($10 million), for the acquisition of information technology systems, electronic health records, billing systems, or other hardware as well as infrastructure costs associated with the inclusion of behavioral health services in the Medicaid managed care benefit package.
Transformative Economic Development Projects ($150 million), for projects in Nassau and Suffolk County that demonstrate the investment of public fund will create private investment resulting in significant economic development reflected in the creation of temporary and permanent jobs, the growth of the commercial or residential tax base or an enhancement of the environment and quality of life.

Health Care / Health Insurance

Staff Contact: Lev Ginsburg

Adds a new Financial Services Law (FSL) § 208 creating a new assessment (tax) on all health insurers in the individual, small group and large group insurance markets on qualified health plans, to pay for the $69 million costs of the NY State of Health, the State health insurance exchange, operation, for each fiscal year commencing on or after 4/1/15. It also creates record retention requirements, audits and a noncompliance penalty regime. S. 2007/A. 3007, Part G, Section 1.

Executive Budget proposal not adopted.

Amends Social Services Law (SSL) §367-a(7) to allow the State to negotiate supplemental rebates directly with pharmaceutical manufacturers both inside and outside of Managed Care on covered out-patient drugs with a pre-existing rebate agreement with the federal government. S.2007/A.3007, Part B, Section 1.

Modified to apply only to antiretroviral and hepatitis drugs only.

Adds PHL §272(a-1) authorizing the Commissioner to require supplemental rebates from manufacturers of brand name drugs utilized in the Medicaid fee-for-service, subjecting these pharmaceuticals to prior authorization if supplemental rebate is not provided. S.2007/A.3007, Part B, Section 5.

Executive Budget proposal not adopted.

Amends PHL §273 eliminating prescriber prevails provisions for fee-for-service Medicaid drugs not on the preferred drug list. S. 2007/A. 3007, Part B, Section 6.

Executive Budget proposal not adopted.

Authorizes the commissioner to establish a reinsurance pool, and to make changes to value based payments or methodologies of reimbursement that are value based as necessary to conform to the terms and conditions of the DSRIP waiver. S.2007/A.3007, Part F, Section 1.

Executive Budget proposal not adopted.

Adds a new section PHL §2801-a(17) authorizes limited services clinics to provide health care services within retail space or a space used by an employer for providing health care services to its employees. The Commissioner of Health shall promulgate regulations for the operation of limited services clinics. S.2007/A.3007, Part H, Section 1.

Executive Budget proposal not adopted.

Amends SSL §367-a increasing the current average wholesale price (AWP) for brand name drugs from AWP minus 17% to AWP minus 24%; and increases DOH brand name drug dispensing fees from $3.50 to $8.00 per prescription. S.2007/A.3007, Part B, Sections 2 and 3.

Executive Budget proposal not adopted.

Adds SSL §364-j(24-a) requiring federally participating section 340B drug providers bill managed care plans at the actual acquisition cost for 340B drugs. S. 2007/A.3007, Part B, Section 7.

Executive Budget proposal not adopted.

Adds Public Health Law §2801 to establish a private equity pilot program, allowing up to five non-publicly traded businesses, affiliated with at least one medical institution or a teaching hospital, to make private capital investments to assist in restructuring healthcare delivery systems; and allow debt financing provided through the Dormitory Authority of the State of New York (DASNY) S.2007/A. 3007, Part Q.

Executive Budget proposal not adopted

New Provisions

The final budget adds new requirements that all office-based surgical practices conduct quality improvement and quality assurance activities and utilize certification by appropriate certifying organizations or other equivalent methods to determine the competency of practitioners to perform office-based surgery. S.2007/A.3007 Part L

Labor / Human Resources

Staff Contact: Frank Kerbein

Increases the state’s minimum wage to $10.50 per hour and authorizes a New York City minimum wage of $11.50 per hour, effective December 31, 2016 (S.2006/A.3006, Part N).

Executive Budget proposal not adopted.

Temporarily (through 12/1/16) provides a public or private healthcare professional who volunteers to fight the Ebola virus overseas with a right take to an unpaid leave of absence unless it would impose an undue hardship on the business operations of the healthcare professional’s employer. (S.2006/A.3006, Part O).

In the final agreement, the length of the leave will be negotiated by the employee and employer. If no agreement is reached, the leave will be denied.

Repeals twenty one separate fees assessed by the Department of Labor for a variety of inspection and enforcement activities and permits, including two Professional Employer Organization (PEO) fees covering the initial $1,000 state registration fee and a $250 annual fee for out-of-state PEOs with less than 25 employees in New York State (S.2006/A.3006, Part P).

Executive Budget proposal adopted.

Creates a commission that would convene every four years to make pay recommendations for the governor, lieutenant governor, attorney general, comptroller and members of the legislature (S.2005/A.3005, Part I).

Establishes a commission on legislative, judicial and executive compensation to provide periodic salary increases to state officers. (S.4610, Part E).

Racing and Gaming

Staff Contact: Ken Pokalsky

Extends the vendor capital award program for video lottery gaming facilities for one year. (S.2009/A.3009, Part NN)

Executive Budget proposal adopted.

Amends the definition of Video lottery gaming to expand the types of video lottery terminals that may operate at video gaming facilities under law. (S.2009/A.3009, Part OO

Executive Budget proposal adopted.

New Provisions

Increase by 1% the retention of purse monies related to Worker’s Compensation Insurance coverage (S.2009-B/A.3009-B, Part VV).
Extend for one year the vendor fee rates for a vendor track located in Sullivan County (S.2009-B/A.3009-B, Part WW).
Clarifies that market origination fees shall be paid by out of state advanced wagering entities who have contracts with in state tracks (S.2009-B/A.3009-B, Part XX).

Taxation / Revenues / Tax Credits

Staff Contact: Ken Pokalsky

Brings New York City business taxes into conformance with state-level corporate franchise tax reforms adopted in 2014, effective 1/1/15. In addition, adopts small business tax rate reductions and adopts a $10 million cap on capital based tax liability. S.2009/A.3009, Part QQ.

Adopted as S.4610/A.6721, Part D, with amendments, including: rejection of receipts-based nexus; modified definitions and treatment of “investment capital” and “qualified financial instruments;” new income exclusions related to affordable housing loans; an increase in the business income tax rate for certain financial corporations to 9 percent; modification of new small business tax rates; expanded definition of manufacturing corporations; a new apportionment election for taxpayers with $50 million or less of NYC receipts; and others.

Expands the Section 184 utility gross receipts tax and MTA surcharge to wireless communications providers S.2009/A.3009, Part P.

Executive Budget proposal was rejected; and was replace by provisions subjecting certain mobile telecommunications services to a new excise tax of 2.9 percent under Section 186-e of the Tax Law, effective 5/1/15.

Extends the brownfield cleanup program’s remediation and redevelopment investment tax credits through 12/31/25; repeals the programs’ environmental insurance and real property tax credits, applicable to projects entering the program on or after 4/1/15; limits the category of sites eligible for the tangible property credit (e.g., projected investigation and cleanup cost must the appraised value of property “absent contamination”); reduces the eligibility period for the tangible property credit from 10 to 5 years. S.2009/A.3009, Part R.

Adopted with amendments. Tax credits extended for projects accepted in to the program prior to 12/31/22 and clean ups completed prior to 3/31/2026; tangible property redevelopment credit limited to sites that are either 50% located in an “En-zone”, underutilized, used for affordable housing or have a combined investigation and remediation project cost exceeding 75% of the assessed value of the site if uncontaminated; overall brownfield project eligibility was modified; Real Property and Environmental Insurance Credits are repealed for projects entering the program on or after 7/1/15. See details under “Environment” above. S.2006-B/ A.3006-B, Part BB.

Reduces the corporate franchise tax rate on “small business taxpayers” (e.g., less than 100 employees, less than $1 million in capital) with a business income base under $290,000 to 3.25% in 2016, 2.9% in 2017, and 2.5% in 2018 and thereafter; business with an income base under $390,000 receive these rates for that portion of their income under $290,000. S.2009/A.3009, Part N.

Executive Budget proposal not adopted.

Makes “technical” amendments to 2014 state business tax reforms related to: definition of investment capital; residential loan portfolios; criteria for economic nexus threshold; basis for manufacturers’ rate differential; PNOLCs and NOLs; apportionment rules for mark to market gains; financial service ITC; START-UP NY credits; and mandatory S corporation election. S.2009/A.3009, Part T.

Executive Budget language was largely adopted, with amendments, including: revised definition of “investment capital,” definition and treatment of “investment income” (including a “cap” of 8 percent of ENI), “exempt CFC income,” and “qualified financial instrument.” Provisions restricting treatment of QETCs were rejected.

Adopts a job training program tax credit equal to 50% of training costs, up to $10,000 in costs per eligible employee; employer must have 10 net new jobs or a $1 million capital investment; statewide cap of $5 million of such credits to be authorized annually; credits count against the annual Excelsior jobs credit cap. S.2009/A.3009, Part O.

Executive Budget proposal was adopted, with additional provisions for tax credits for advanced technology internships.

Requires IDA to obtain ESDC approval before providing new or increased state tax abatements; establishes timetable and criteria for approval; authorizes the Department of Taxation and Finance to audit IDA projects; allows state credit claw-backs if project goals are not achieved; disallows IDS benefits to project operators with past due tax liabilities. S.2009/A.3009, Part W.

Executive Budget proposal not adopted.

Modifies the youth works tax credit program; makes $10 million in credits available annually for 2015, 2016 and 2017; limits program to the state’s six highest unemployment areas. S.2009/A.3009, Part M.

Executive Budget proposal was modified; credit cap was increased by $10 million for 2015, 2016 and 2017, and proposed geographic targeting was rejected. S.2006-B/A3006-B Part AA.

Adopts provisions to limit sales tax avoidance; applies sales tax when property brought into NYS by an entity that had not been in business outside NYS for six months; treats a single member LLC and its member as one person for sales tax transactions; requires up-front payment of all sales tax due pursuant to a lease; prevents sales-tax-free transfers of any tangible property between affiliated entities in exchange for stock or partnership interest. S.2009/A.3009, Part Y.

Executive Budget proposal not adopted.

Defines “marketplace providers” (i.e., collects purchase prices and performs other sales function) and requires them to collect sales tax on taxable sales they facilitate. S.2009/A.3009, Part X.

Executive Budget proposal not adopted.

Requires Article 9 taxpayers who pass tax costs onto customers to refund tax payments to customers before seeking a tax refund or credit of such taxes paid to the state. S.2009/A.3009, Part Q.

Executive Budget proposal not adopted.

Expands the Excelsior jobs credit program to include “entertainment companies,” defined as entities engaged in the production or post-production of movies, television shows and commercials, animated films and similar products. S.2009/A.3009, Part K.

Executive Budget proposal was adopted; the legislature also: authorized benefits for “music production” companies creating at least five new jobs; and expanded the definition of eligible software development companies to include the production and/or post-production of video games.

Adopts a number of tax enforcement provisions: makes provisions for warrantless wage garnishments permanent (Part DD); reduces from $10,000 to $5,000 the threshold of past due tax liability that provides the basis for suspension of drivers’ license (Part EE); requires state tax compliance as a condition of excess malpractice coverage (Part FF), receiving state or local grants (Part GG), obtaining a professional or business license (Part JJ), or enter the state workforce (Part KK). All provisions are in S.2009/A.3009.

Authority for warrantless wage garnishments was extended by two years through 4/1/17; all of these other proposals were not adopted.

Authorizes the Tax Commissioner to enter into reciprocal agreements with other states for the collection of fixed and final state tax liabilities. S.2009/A.3009, Part HH.

Executive Budget proposal not adopted.

Make technical amendments to the 2014 Estate Tax reforms. S.2009/A.3009, Part BB.

Executive Budget proposal was adopted, with amendments to require that gifts of property with situs outside of New York State be included in the definition of taxable gift.

Makes permanent the limitations on charitable deductions under the PIT for taxpayers with AGI above $1 million. S.2009/A.3009, Part H.

Cap was extended for two years, for tax years in 2016 and 2017.

Makes "technical” amendments to the personal income tax; clarifies payment of the MTA mobility tax by non-resident self-employed taxpayers; clarifies the basis for the manufacturer’s real property tax credit under Article 22; modifies the Start Up NY telecomm excise tax credit. S.2009/A.3009, Part I.

Executive Budget proposal adopted.

Adopts a new non-refundable education tax credit under both the corporate franchise tax and personal income tax; equal to 75% of qualifying contribution, up to $1 million per taxpayers; contributions are to public or non-public schools, school improvement associations, local education funds, and scholarship-granting entities; up to $100 million in credits are allowable each year. S.2010/A.3010, Part E.
Executive Budget proposal

Executive Budget proposal not adopted.

Extends the wine tasting sales and use tax exemption to other alcoholic beverages. S.2009/A.3009, Part U.

Executive Budget proposal adopted.

Adopts a new residential real property tax circuit breaker for households with incomes below $250,000, and a renters’ credit for households with income below $150,000, with a cost of $1.7 billion annually once fully implemented (S.2009/A.3009, Part G); makes numerous changes to the STAR program (S.2009/A.3009, Parts A thru F)

Only Parts B (NYC STAR personal income tax credit), E (recoupment of STAR awards) and F (STAR re-application deadline) were approved.

New Provisions

Modifies the calculation of credits for alternative fuel vehicle refueling and electric vehicle recharging property (S.2009/A.3009 Part RR).
Provides a sales tax exemption for receipts in excess of $230,000 for the sale of “vessels” (S.2009/A.3009 Part SS)
Exempts general aviation aircraft from the requirement that all sales taxes due on a lease of greater than one year be paid up front; and allows sales tax exemption for such aircraft transferred as part of business mergers and similar transactions (S.2009/A.3009 Part TT)
Provides a sales tax exemption for the sale of tangible personal property or services between related parties where the sales are part of a divestiture required under Federal “Dodd Frank” statute. (S.2009/A.3009 Part UU).

Technology / Telecommunications

Adopts a new $500 million appropriation for the New NY Broadband initiative to be disbursed out of the Special Infrastructure Account. The program seeks to develop broadband infrastructure to help bring high speed internet access to underserved regions of the State. There is no Article VII language associated with this program. Money is scheduled to be disbursed over a 5 year period; it was announced that broadband providers and communities seeking to access this funding must commit to: providing at least a $1 for $1 financial match; providing internet speeds of at least 100 Mbps; and seeking local input to guide their development by working with the regional development councils to submit a plan to the state. In addition, the program will also explore ways to streamline permitting and processes, embrace dig-once and make-ready policies, and institute uniform state agency procedures that encourage broadband deployment. (S.2004/A.3004).

Executive proposal was modified to make projects that bring high-speed internet access to unserved areas of the state, public libraries and educational opportunity centers a priority. In addition, the Urban Development Corporation will be required to submit a report on the progress of the program by June 30, 2016.

Workers’ Compensation

Staff Contact: Lev Ginsburg

Sections 10-12 amend section 134 of the Workers' Compensation Law removing the Workplace Safety and Loss Certification fees for certification to conduct workplace safety and loss prevention consultations, loss prevention management specialists and per diem DOL charges to clients who receive a workplace safety and loss prevention consultation from DOL staff. S.2006/A.3006, Part P.