Establishes the dedicated highway and bridge trust fund reform act; ensures that money deposited into the dedicated highway and bridge trust fund is spent on construction purposes and not DOT and DMV operational activities.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6366
SPONSOR: Palmesano TITLE OF BILL:
An act to amend the state finance law, in relation to establishing the
dedicated highway and bridge trust fund reform act
PURPOSE:
This bill will ensure that money deposited into the Dedicated Highway
and Bridge Trust Fund is spent on construction purposes and not DOT and
DMV operational activities..
SUMMARY OF PROVISIONS:
Section one titles the bill the Dedicated Highway and Bridge Trust Fund
Reform Act.
Section two repeals section 1 of part B of Chapter 84 of the Laws of
2002 by forbidding the Dedicated Fund from being used to pay for costs
of the Department of Motor Vehicles (DMV), including personal and non-
personal services.
Section three repeals section 1 of part 0 of Chapter .151 of the Laws of
2001 by forbidding that the Dedicated Fund from being used for snow and
ice removal by the Department of Transportation (DOT) and other, costs
related to that program.
Section four states that the act shall take effect immediately.
JUSTIFICATION:
When it was created in 1991, the Dedicated Highway and Bridge Trust Fund
(DHBTF) was intended to fund transportation capital projects, supported
through dedicated taxes and fees, Unfortunately, in the years since the
Fund's establishment, less and less of these revenues have gone toward
capital construction.
This legislation is an attempt return the DHBTF to its original purpose
of providing a secure and reliable funding stream for bridge and road
investment.
Although Part UU of Chapter 59 of the Laws of 2018 redirects DOT and DMV
operational programs out of the DHBTF and to the General Fund, State
Finance Law still allows the DHBTF to be used for expenses of these
programs.
This bill would ensure that these programs are not returned to the
DHBTF, allowing it to operate more like the capital construction fund
that it was always intended to be.
With so many bridges and roads in need of investment across the State,
it is imperative that we safeguard revenues and ensure they are used for
transportation infrastructure investment and not unrelated purposes.
LEGISLATIVE HISTORY:
2023-24 A. 5082: held in Ways & Means
2021 - A.5790: held in Ways & Means
2020 - A.6798: held in Ways & Means
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately, provided that the amendments to
paragraph a of subdivision 5 of section 89-b of the state finance law
made by section two of this act shall be subject to the expiration and
reversion of such paragraph pursuant to section 2 of part B of chapter
B4 of the laws of 2002, as amended, when upon such date the provision of
section three of this act shall take effect.
STATE OF NEW YORK
________________________________________________________________________
6366
2025-2026 Regular Sessions
IN ASSEMBLY
March 4, 2025
___________
Introduced by M. of A. PALMESANO, BARCLAY, RA, BLANKENBUSH, BRABENEC,
DeSTEFANO, DiPIETRO, FRIEND, MANKTELOW, McDONOUGH, MILLER, MORINELLO,
REILLY, SMULLEN, TAGUE, WALSH -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the state finance law, in relation to establishing the
dedicated highway and bridge trust fund reform act
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "dedicated highway and bridge trust fund reform act".
3 § 2. Paragraph a of subdivision 5 of section 89-b of the state finance
4 law, as amended by section 10 of part C of chapter 57 of the laws of
5 2014, is amended to read as follows:
6 a. Moneys in the dedicated highway and bridge trust fund shall,
7 following appropriation by the legislature, be utilized for: recon-
8 struction, replacement, reconditioning, restoration, rehabilitation and
9 preservation of state, county, town, city and village roads, highways,
10 parkways, and bridges thereon, to restore such facilities to their
11 intended functions; construction, reconstruction, enhancement and
12 improvement of state, county, town, city, and village roads, highways,
13 parkways, and bridges thereon, to address current and projected capacity
14 problems including costs for traffic mitigation activities; aviation
15 projects authorized pursuant to section fourteen-j of the transportation
16 law and for payments to the general debt service fund of amounts equal
17 to amounts required for service contract payments related to aviation
18 projects as provided and authorized by section three hundred eighty-six
19 of the public authorities law; programs to assist small and minority and
20 women-owned firms engaged in transportation construction and recon-
21 struction projects, including a revolving fund for working capital
22 loans, and a bonding guarantee assistance program in accordance with
23 provisions of this chapter; matching federal grants or apportionments to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03727-01-5
A. 6366 2
1 the state for highway, parkway and bridge capital projects; the acquisi-
2 tion of real property and interests therein required or expected to be
3 required in connection with such projects; preventive maintenance activ-
4 ities necessary to ensure that highways, parkways and bridges meet or
5 exceed their optimum useful life; [expenses of control of snow and ice
6 on state highways by the department of transportation including but not
7 limited to personal services, nonpersonal services and fringe benefits,
8 payment of emergency aid for control of snow and ice in municipalities
9 pursuant to section fifty-five of the highway law, expenses of control
10 of snow and ice on state highways by municipalities pursuant to section
11 twelve of the highway law, and for expenses of arterial maintenance
12 agreements with cities pursuant to section three hundred forty-nine of
13 the highway law; personal services, nonpersonal services, and fringe
14 benefit costs of the department of transportation for bus safety
15 inspection activities, rail safety inspection activities, and truck
16 safety inspection activities; costs of the department of motor vehicles,
17 including but not limited to personal and nonpersonal services;] costs
18 of engineering and administrative services of the department of trans-
19 portation, including but not limited to fringe benefits; the contract
20 services provided by private firms in accordance with section fourteen
21 of the transportation law; personal services and nonpersonal services,
22 for activities including but not limited to the preparation of designs,
23 plans, specifications and estimates; construction management and super-
24 vision activities; costs of appraisals, surveys, testing and environ-
25 mental impact statements for transportation projects; expenses in
26 connection with buildings, equipment, materials and facilities used or
27 useful in connection with the maintenance, operation, and repair of
28 highways, parkways and bridges thereon; and project costs for:
29 construction, reconstruction, improvement, reconditioning and preserva-
30 tion of rail freight facilities and intercity rail passenger facilities
31 and equipment; construction, reconstruction, improvement, reconditioning
32 and preservation of state, municipal and privately owned ports;
33 construction, reconstruction, improvement, reconditioning and preserva-
34 tion of municipal airports; privately owned airports and aviation capi-
35 tal facilities, excluding airports operated by the state or operated by
36 a bi-state municipal corporate instrumentality for which federal funding
37 is not available provided the project is consistent with an approved
38 airport layout plan; and construction, reconstruction, enhancement,
39 improvement, replacement, reconditioning, restoration, rehabilitation
40 and preservation of state, county, town, city and village roads, high-
41 ways, parkways and bridges; and construction, reconstruction, improve-
42 ment, reconditioning and preservation of fixed ferry facilities of
43 municipal and privately owned ferry lines for transportation purposes,
44 and the payment of debt service required on any bonds, notes or other
45 obligations and related expenses for highway, parkway, bridge and
46 project costs for: construction, reconstruction, improvement, recondi-
47 tioning and preservation of rail freight facilities and intercity rail
48 passenger facilities and equipment; construction, reconstruction,
49 improvement, reconditioning and preservation of state, municipal and
50 privately owned ports; construction, reconstruction, improvement, recon-
51 ditioning and preservation of municipal airports; privately owned
52 airports and aviation capital facilities, excluding airports operated by
53 the state or operated by a bi-state municipal corporate instrumentality
54 for which federal funding is not available provided the project is
55 consistent with an approved airport layout plan; construction, recon-
56 struction, enhancement, improvement, replacement, reconditioning, resto-
A. 6366 3
1 ration, rehabilitation and preservation of state, county, town, city and
2 village roads, highways, parkways and bridges; and construction, recon-
3 struction, improvement, reconditioning and preservation of fixed ferry
4 facilities of municipal and privately owned ferry lines for transporta-
5 tion purposes, purposes authorized on or after the effective date of
6 this section. Beginning with disbursements made on and after the first
7 day of April, nineteen hundred ninety-three, moneys in such fund shall
8 be available to pay such costs or expenses made pursuant to appropri-
9 ations or reappropriations made during the state fiscal year which began
10 on the first of April, nineteen hundred ninety-two. Beginning the first
11 day of April, nineteen hundred ninety-three, moneys in such fund shall
12 also be used for transfers to the general debt service fund and the
13 revenue bond tax fund of amounts equal to that respectively required for
14 service contract and financing agreement payments as provided and
15 authorized by section three hundred eighty of the public authorities
16 law, section eleven of chapter three hundred twenty-nine of the laws of
17 nineteen hundred ninety-one, as amended, and sections sixty-eight-c and
18 sixty-nine-o of this chapter.
19 § 3. Paragraph a of subdivision 5 of section 89-b of the state finance
20 law, as amended by section 52 of part JJJ of chapter 59 of the laws of
21 2021, is amended to read as follows:
22 a. Moneys in the dedicated highway and bridge trust fund shall,
23 following appropriation by the legislature, be utilized for: recon-
24 struction, replacement, reconditioning, restoration, rehabilitation and
25 preservation of state, county, town, city and village roads, highways,
26 parkways, and bridges thereon, to restore such facilities to their
27 intended functions; construction, reconstruction, enhancement and
28 improvement of state, county, town, city, and village roads, highways,
29 parkways, and bridges thereon, to address current and projected capacity
30 problems including costs for traffic mitigation activities; aviation
31 projects authorized pursuant to section fourteen-j of the transportation
32 law and for payments to the general debt service fund of amounts equal
33 to amounts required for service contract payments related to aviation
34 projects as provided and authorized by section three hundred eighty-six
35 of the public authorities law; programs to assist small and minority and
36 women-owned firms engaged in transportation construction and recon-
37 struction projects, including a revolving fund for working capital
38 loans, and a bonding guarantee assistance program in accordance with
39 provisions of this chapter; matching federal grants or apportionments to
40 the state for highway, parkway and bridge capital projects; the acquisi-
41 tion of real property and interests therein required or expected to be
42 required in connection with such projects; preventive maintenance activ-
43 ities necessary to ensure that highways, parkways and bridges meet or
44 exceed their optimum useful life; [expenses of control of snow and ice
45 on state highways by the department of transportation including but not
46 limited to personal services, nonpersonal services and fringe benefits,
47 payment of emergency aid for control of snow and ice in municipalities
48 pursuant to section fifty-five of the highway law, expenses of control
49 of snow and ice on state highways by municipalities pursuant to section
50 twelve of the highway law, and for expenses of arterial maintenance
51 agreements with cities pursuant to section three hundred forty-nine of
52 the highway law; personal services, nonpersonal services, and fringe
53 benefit costs of the department of transportation for bus safety
54 inspection activities, rail safety inspection activities, and truck
55 safety inspection activities; costs of the department of motor vehicles,
56 including but not limited to personal and nonpersonal services;] costs
A. 6366 4
1 of engineering and administrative services of the department of trans-
2 portation, including but not limited to fringe benefits; the contract
3 services provided by private firms in accordance with section fourteen
4 of the transportation law; personal services and nonpersonal services,
5 for activities including but not limited to the preparation of designs,
6 plans, specifications and estimates; construction management and super-
7 vision activities; costs of appraisals, surveys, testing and environ-
8 mental impact statements for transportation projects; expenses in
9 connection with buildings, equipment, materials and facilities used or
10 useful in connection with the maintenance, operation, and repair of
11 highways, parkways and bridges thereon; and project costs for:
12 construction, reconstruction, improvement, reconditioning and preserva-
13 tion of rail freight facilities and intercity rail passenger facilities
14 and equipment; construction, reconstruction, improvement, reconditioning
15 and preservation of state, municipal and privately owned ports;
16 construction, reconstruction, improvement, reconditioning and preserva-
17 tion of municipal airports; privately owned airports and aviation capi-
18 tal facilities, excluding airports operated by the state or operated by
19 a bi-state municipal corporate instrumentality for which federal funding
20 is not available provided the project is consistent with an approved
21 airport layout plan; and construction, reconstruction, enhancement,
22 improvement, replacement, reconditioning, restoration, rehabilitation
23 and preservation of state, county, town, city and village roads, high-
24 ways, parkways and bridges; and construction, reconstruction, improve-
25 ment, reconditioning and preservation of fixed ferry facilities of
26 municipal and privately owned ferry lines for transportation purposes,
27 and the payment of debt service required on any bonds, notes or other
28 obligations and related expenses for highway, parkway, bridge and
29 project costs for: construction, reconstruction, improvement, recondi-
30 tioning and preservation of rail freight facilities and intercity rail
31 passenger facilities and equipment; construction, reconstruction,
32 improvement, reconditioning and preservation of state, municipal and
33 privately owned ports; construction, reconstruction, improvement, recon-
34 ditioning and preservation of municipal airports; privately owned
35 airports and aviation capital facilities, excluding airports operated by
36 the state or operated by a bi-state municipal corporate instrumentality
37 for which federal funding is not available provided the project is
38 consistent with an approved airport layout plan; construction, recon-
39 struction, enhancement, improvement, replacement, reconditioning, resto-
40 ration, rehabilitation and preservation of state, county, town, city and
41 village roads, highways, parkways and bridges; and construction, recon-
42 struction, improvement, reconditioning and preservation of fixed ferry
43 facilities of municipal and privately owned ferry lines for transporta-
44 tion purposes, purposes authorized on or after the effective date of
45 this section. Beginning with disbursements made on and after the first
46 day of April, nineteen hundred ninety-three, moneys in such fund shall
47 be available to pay such costs or expenses made pursuant to appropri-
48 ations or reappropriations made during the state fiscal year which began
49 on the first of April, nineteen hundred ninety-two. Beginning the first
50 day of April, nineteen hundred ninety-three, moneys in such fund shall
51 also be used for transfers to the general debt service fund and the
52 general fund of amounts equal to that respectively required for service
53 contract and financing agreement payments as provided and authorized by
54 section three hundred eighty of the public authorities law, section
55 eleven of chapter three hundred twenty-nine of the laws of nineteen
A. 6366 5
1 hundred ninety-one, as amended, and sections sixty-eight-c and sixty-
2 nine-o of this chapter.
3 § 4. This act shall take effect immediately; provided, however, that
4 the amendments to paragraph a of subdivision 5 of section 89-b of the
5 state finance law made by section two of this act shall be subject to
6 the expiration and reversion of such paragraph pursuant to section 2 of
7 part B of chapter 84 of the laws of 2002, as amended, when upon such
8 date the provisions of section three of this act shall take effect.
