S01508 Summary:

BILL NOS01508B
 
SAME ASNo Same As
 
SPONSORBUDGET
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2019-2020 state fiscal year; clarifies the dormitory authority's authorization to finance certain health care facilities (Part A); relates to extending the authority of the dormitory authority to enter into certain design and construction contracts (Part B); transfers and conveys certain property and requires certain projects built to be deemed public works projects (Part C); relates to project delivery and authorization (Part D); makes certain waste tire management and recycling fees permanent and provides for project funding (Part E); establishes guidelines for carryout bag waste reduction (Part H); removes requirements for notice of freshwater wetlands maps and tidal wetlands boundary maps to be mailed by certified mail (Part J); requires manufacturer disclosure and labeling of personal care products and cleansing products containing carcinogens, mutagens or endocrine disruptors and other harmful chemicals (Part K); relates to student loan services (Part L); authorizes the commissioner of motor vehicles to approve demonstrations and tests consisting of the operation of motor vehicles equipped with autonomous vehicle technology; relates to the submission of reports extending the effectiveness thereof; and permits a driver to not have a hand on the steering mechanism of a vehicle while a driving automation system is engaged (Part M); extends the ignition interlock device program (Part N); extends the expiration of certain provisions relating to taxes and the mandatory surcharge and victim assistance fee to 2021 (Part O); extends provisions permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and permits additional levels of such expedited service (Part R); authorizes the commissioner of transportation to charge and collect a fee for the inspection or reinspection of certain for-hire motor vehicles (Part T); authorizes utility and cable television assessments to provide funds to the department of health from cable television markets, environmental conservation, office of parks, recreation and historic preservation (Part U); requires state agencies and authorities to enter into contracts only with service providers that adhere to net neutrality principles (Part V); authorizes the NYS energy and research development authority to finance a portion of its research, development and demonstration policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program from an assessment on gas and electric corporations (Part W); relates to the powers of the urban development corporation to make loans (Part Y); extends provisions relating to the empire state development fund (Part Z); reauthorizes the minority and women-owned business enterprise program and extends certain provisions relating to the New York state infrastructure trust fund, and establishes a workforce diversity program (Part AA); establishes the "Gateway Development Commission Act" (Part DD); directs the metropolitan transportation authority to contract for the provision of an independent forensic audit of such authority (Subpart A); requires the submission of a twenty-year capital needs assessment to the metropolitan transportation authority capital program review board (Subpart B); exempts the metropolitan transportation authority from bond issuance charges otherwise required to be paid to the state (Subpart C); relates to membership on the MTA board (Subpart D); relates to local bid preference for competitive requests for proposals (Subpart E); establishes metropolitan transportation authority transit performance metrics (Subpart F) (Part EE); provides certain metropolitan transportation commuter district supplemental taxes, surcharges and fees to the metropolitan transportation authority without appropriation (Part FF); relates to automated enforcement cameras for stopping, standing, parking and turning limitations within congestion toll zone and designated bus corridors (Part GG); extends the effective date of sections of law relating to the resolution of labor disputes (Part HH); classifies the assault of highway workers, airport workers, metropolitan transportation authority bus operators, and department of transportation inspectors, investigators and examiners as assault in the second degree (Part II); enacts the Toll Payer Protection Act (Part JJ); establishes the parks retail stores fund and the golf fund as enterprise funds (Part MM); allows the New York state olympic regional development authority to enter into contracts or agreements containing indemnity provisions in order to host olympic or other national or international games or events (Part NN); extends provisions related to procurements by the New York city transit authority and metropolitan authority (Part RR); relates to the creation of a searchable database and requires the Urban Development Corporation to create or modify an existing searchable database, including information on qualified participants receiving state economic development benefits (Part SS); relates to procurements and authorizes the state comptroller to oversee certain contracts of the research foundation of the state university of New York (Part TT); relates to the donation of excess food and recycling of food scraps (Part UU); and requires the department of transportation to maintain a website for the reporting of defects on state highways and bridges (Part VV).
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S01508 Actions:

BILL NOS01508B
 
01/18/2019REFERRED TO FINANCE
02/19/2019AMEND (T) AND RECOMMIT TO FINANCE
02/19/2019PRINT NUMBER 1508A
03/12/2019AMEND (T) AND RECOMMIT TO FINANCE
03/12/2019PRINT NUMBER 1508B
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S01508 Committee Votes:

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S01508 Floor Votes:

There are no votes for this bill in this legislative session.
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S01508 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1508--B
 
                    IN SENATE
 
                                    January 18, 2019
                                       ___________
 
        A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
          the Constitution -- read twice and ordered printed, and  when  printed
          to  be  committed to the Committee on Finance -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee  -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the public authorities law, in  relation  to  clarifying
          the dormitory authority's authorization to finance certain health care
          facilities  (Part A); to amend chapter 58 of the laws of 2012 amending
          the public authorities  law  relating  to  authorizing  the  dormitory
          authority  to  enter  into  certain design and construction management
          agreements, in relation to extending the effectiveness of such author-
          ization (Part B); to amend the public authorities law, in relation  to
          the  transfer  and  conveyance  of  certain real property (Part C); to
          amend chapter 60 of the laws of 2015, constituting the  infrastructure
          investment  act,  in  relation  to  project delivery and extending the
          effectiveness thereof; and to amend chapter 59 of the  laws  of  2018,
          constituting  the  New  York city BQE Design-Build act, in relation to
          public work authorization and extending the effectiveness thereof  and
          repealing  certain  provisions  of such chapter relating thereto (Part
          D); to amend the environmental conservation law, in relation to  waste
          tire  management  and  recycling  fees (Part E); intentionally omitted
          (Part F); intentionally omitted (Part G); to amend  the  environmental
          conservation  law,  the  alcoholic  beverage control law and the state
          finance law, in relation to establishing guidelines for  carryout  bag
          waste reduction (Part H); intentionally omitted (Part I); to amend the
          environmental  conservation  law,  in  relation to freshwater wetlands
          maps and tidal wetlands boundary maps (Part J); to amend the  environ-
          mental  conservation law and the public health law, in relation to the
          disclosure of cleansing products, labeling of consumer  products,  and
          requiring  manufacturer disclosure of the ingredients in personal care
          products (Part K); to amend the banking law, in  relation  to  student
          loan servicers (Part L); to amend part FF of chapter 55 of the laws of
          2017 relating to motor vehicles equipped with autonomous vehicle tech-
          nology,  in  relation  to the submission of reports and in relation to
          extending the effectiveness thereof; to authorize the commissioner  of
          motor  vehicles  to approve demonstrations and tests consisting of the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12573-05-9

        S. 1508--B                          2
 
          operation of motor vehicles equipped with autonomous vehicle technolo-
          gy; and to amend the vehicle and traffic law, in relation  to  permit-
          ting  a driver to not have a hand on the steering mechanism of a vehi-
          cle  while  a  driving automation system is engaged (Part M); to amend
          chapter 713 of the laws of 1988, amending the vehicle and traffic  law
          relating  to  the  ignition  interlock  device program, in relation to
          extending the provisions thereof (Part N); to amend chapter 166 of the
          laws of 1991, amending the tax law and other laws relating  to  taxes,
          in  relation to extending the expiration of certain provisions of such
          chapter and to amend the vehicle  and  traffic  law,  in  relation  to
          extending the expiration of the mandatory surcharge and victim assist-
          ance fee (Part O); intentionally omitted (Part P); intentionally omit-
          ted  (Part  Q);  to amend chapter 21 of the laws of 2003, amending the
          executive law relating to permitting the secretary of state to provide
          special handling for all documents filed or issued by the division  of
          corporations  and  to  permit  additional  levels  of  such  expedited
          service, in relation to extending the effectiveness thereof (Part  R);
          intentionally  omitted  (Part  S); to amend the transportation law, in
          relation to authorizing the commissioner of transportation  to  charge
          and  collect  a fee for the inspection or reinspection of certain for-
          hire motor vehicles; and to amend the  vehicle  and  traffic  law,  in
          relation  to  passengers  in  front  seat of a motor vehicle (Part T);
          authorizing utility and cable television assessments to provide  funds
          to  the department of health from cable television assessment revenues
          and to the  departments  of  agriculture  and  markets,  environmental
          conservation,  office  of parks, recreation and historic preservation;
          and providing for the repeal of  certain  provisions  upon  expiration
          thereof  (Part  U);  to  amend  the  public  service law and the state
          finance law, in relation to requiring state agencies  and  authorities
          to  enter  contracts  only  with  service providers that adhere to net
          neutrality principles (Part V); to authorize the New York state energy
          research and  development  authority  to  finance  a  portion  of  its
          research, development and demonstration, policy and planning, and Fuel
          NY programs, as well as the department of environmental conservation's
          climate  change program and the department of agriculture and markets'
          Fuel NY program, from an assessment on gas and  electric  corporations
          (Part  W); intentionally omitted (Part X); to amend chapter 393 of the
          laws of 1994, amending the New York  state  urban  development  corpo-
          ration  act, relating to the powers of the New York state urban devel-
          opment corporation to make loans, in  relation  to  the  effectiveness
          thereof (Part Y); to amend the New York state urban development corpo-
          ration  act,  in  relation to extending certain provisions relating to
          the empire state economic development fund  (Part  Z);  to  amend  the
          executive  law,  the  public buildings law, the state finance law, and
          the public authorities law, in relation to the reauthorization of  the
          minority  and  women-owned  business  enterprise  program and to amend
          chapter 261 of the laws of 1988, amending the state  finance  law  and
          other  laws  relating to the New York state infrastructure trust fund,
          in relation to the effectiveness thereof; and providing for the repeal
          of certain provisions upon expiration thereof (Part AA); intentionally
          omitted (Part BB); intentionally omitted (Part CC);  establishing  the
          "Gateway  Development Commission Act"; and to amend the transportation
          law, in relation to creating the gateway development commission  (Part
          DD); to amend the public authorities law, in relation to directing the
          metropolitan transportation authority to contract for the provision of
          an independent forensic audit of such authority; and providing for the

        S. 1508--B                          3
 
          repeal  of  such  provisions  upon  expiration thereof (Subpart A); to
          amend the public authorities law, in relation to the submission  of  a
          twenty-year  capital needs assessment (Subpart B); to amend the public
          authorities  law,  in relation to exempting certain public authorities
          from bond issuance charges (Subpart C); to amend the  public  authori-
          ties  law,  in relation to membership on the board of the metropolitan
          transportation authority (Subpart D); to amend the public  authorities
          law,  in relation to local bid preference for competitive requests for
          proposals (Subpart E); and to amend the  public  authorities  law,  in
          relation  to metropolitan transportation authority transit performance
          metrics (Subpart F) (Part EE); to amend the vehicle and  traffic  law,
          the  public authorities law, the tax law and the state finance law, in
          relation to providing  certain  metropolitan  transportation  commuter
          district  supplemental  taxes, surcharges and fees to the metropolitan
          transportation authority without appropriation (Part FF); to amend the
          vehicle and traffic law, in relation to  removing  caps  on  automated
          enforcement  cameras  for bus lanes, authorizing automated enforcement
          cameras for stopping, standing, parking and turning limitations within
          the congestion toll zone  and  along  designated  bus  corridors,  and
          increasing  penalties  and  creating a graduated schedule of fines for
          repeat offenders; and to amend part II of chapter 59 of  the  laws  of
          2010, amending the vehicle and traffic law and the public officers law
          relating  to establishing a bus rapid transit demonstration program to
          restrict the use of bus lanes by means of bus lane photo  devices,  in
          relation  to the effectiveness thereof (Part GG); to amend chapter 929
          of the laws of 1986 amending the tax law and other  laws  relating  to
          the  metropolitan  transportation  authority, in relation to extending
          certain provisions thereof  applicable  to  the  resolution  of  labor
          disputes (Part HH); to amend the penal law and the vehicle and traffic
          law, in relation to classifying the assault of airport workers, metro-
          politan  transportation  authority  bus  operators  and  department of
          transportation  inspectors,  investigators  and  examiners  as  second
          degree  assault  (Part  II);  to  amend the public authorities law, in
          relation to enacting  the  "toll  payer  protection  act";  to  repeal
          certain provisions of such law relating thereto; and providing for the
          repeal  of  such  provisions upon expiration thereof (Part JJ); inten-
          tionally omitted (Part KK); intentionally omitted (Part LL); to  amend
          the  state  finance  law, in relation to establishing the parks retail
          stores fund, and the golf fund, as  enterprise  funds  (Part  MM);  to
          amend the public authorities law, in relation to allowing the New York
          state  olympic  regional development authority to enter into contracts
          or agreements containing indemnity provisions in order to host olympic
          or other national or international games or events (Part  NN);  inten-
          tionally  omitted  (Part  OO); intentionally omitted (Part PP); inten-
          tionally omitted (Part QQ); to amend the public  authorities  law,  in
          relation  to  procurements  by the New York city transit authority and
          metropolitan transportation authority (Part RR); to amend the New York
          state urban development corporation act and the  economic  development
          law,  in  relation to the creation of a searchable database (Part SS);
          to amend the state finance law and the education law, in  relation  to
          procurement  to  repeal  section 6283 of the education law relating to
          procurements of the fund and  to  amend  the  state  finance  law,  in
          relation  to  authorizing  the  state  comptroller  to oversee certain
          contracts of the research foundation of the state  university  of  New
          York  (Part  TT);  to  amend  the  environmental  conservation law, in
          relation to the donation of excess food and recycling of  food  scraps

        S. 1508--B                          4
 
          (Part UU); and to amend the transportation law, in relation to requir-
          ing  the department of transportation to maintain a website or webpage
          where users may report defects on state highways and bridges (Part VV)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law major  components  of  legislation
     2  which are necessary to implement the state fiscal plan for the 2019-2020
     3  state  fiscal  year.  Each  component  is wholly contained within a Part
     4  identified as Parts A through VV. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part.   Any provision in  any  section  contained  within  a  Part,
     7  including  the  effective date of the Part, which makes a reference to a
     8  section "of this act", when used  in  connection  with  that  particular
     9  component,  shall  be  deemed  to  mean  and  refer to the corresponding
    10  section of the Part in which it is found. Section three of this act sets
    11  forth the general effective date of this act.
 
    12                                   PART A
 
    13    Section 1. Paragraph (b) of subdivision 6 of  section  1699-f  of  the
    14  public  authorities  law, as added by chapter 83 of the laws of 1995, is
    15  amended to read as follows:
    16    (b) The financing of any project initiated on or after  the  effective
    17  date  of this section, the entirety of which the agency would be author-
    18  ized to undertake by the  provisions  of  the  medical  care  facilities
    19  finance  agency  act  prior to such effective date, shall be governed by
    20  such act.
    21    § 2. This act shall take effect immediately.
 
    22                                   PART B
 
    23    Section 1. Section 2 of part BB of chapter 58  of  the  laws  of  2012
    24  amending the public authorities law relating to authorizing the dormito-
    25  ry  authority  to  enter into certain design and construction management
    26  agreements, as amended by section 1 of part W of chapter 58 of the  laws
    27  of 2017, is amended to read as follows:
    28    §  2.  This  act shall take effect immediately and shall expire and be
    29  deemed repealed April 1, [2019] 2021.
    30    § 2. Within 90 days of the effective date of this act,  the  dormitory
    31  authority  of  the  state  of  New York shall provide a report providing
    32  information regarding any project undertaken pursuant to  a  design  and
    33  construction  management  agreement, as authorized by part BB of chapter
    34  58 of the laws of 2012, between the dormitory authority of the state  of
    35  New  York  and  the  department of environmental conservation and/or the
    36  office of parks, recreation and historic preservation to  the  governor,
    37  the  temporary president of the senate and speaker of the assembly. Such
    38  report shall include but not be limited to a description  of  each  such
    39  project,  the  project  identification  number  of each such project, if
    40  applicable, the projected date of completion, the status of the project,
    41  the total cost or projected cost of each such project, and the location,
    42  including the names of any county, town, village  or  city,  where  each
    43  such project is located or proposed. In addition, such a report shall be
    44  provided to the aforementioned parties by the first day of March of each

        S. 1508--B                          5
 
     1  year  that  the authority to enter into such agreements pursuant to part
     2  BB to chapter 58 of the laws of 2012 is in effect.
     3    §  3.  This  act  shall take effect immediately and shall be deemed to
     4  have been in full force and effect on and after April 1, 2019.
 
     5                                   PART C
 
     6    Section 1. Subdivision 25 of section 1678 of  the  public  authorities
     7  law  is  amended  by adding four new paragraphs (e), (f), (g) and (h) to
     8  read as follows:
     9    (e) Notwithstanding any  other  provision  of  law  to  the  contrary,
    10  including  but not limited to title five-A of article nine of this chap-
    11  ter, the Atlantic Avenue  Healthcare  Property  Holding  Corporation  is
    12  hereby  authorized  and empowered to sell, exchange, lease, transfer and
    13  convey  certain  real  property  located  at  483-503  Herkimer  Street,
    14  1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,
    15  all  in  Brooklyn,  New York as directed by the commissioner of New York
    16  state division of homes and  community  renewal,  upon  such  terms  and
    17  conditions as such commissioner may fix and determine.
    18    Such  sale, exchange, lease, transfer and conveyance shall be consist-
    19  ent with and made pursuant to a plan to increase access and  quality  of
    20  health care services and preventative care and create affordable housing
    21  approved  by  the  commissioner  of New York state division of homes and
    22  community renewal, the commissioner of health and the  director  of  the
    23  division  of  the  budget to transform the Central Brooklyn region. Such
    24  plan may include, but shall not be limited to, initiatives  intended  to
    25  increase  access  to open spaces and healthy food, transform health care
    26  by increasing access and quality of health care services  and  preventa-
    27  tive  care, create affordable housing, create jobs, improve youth devel-
    28  opment, and prevent community violence.
    29    Notwithstanding the foregoing, no such sale, exchange, transfer, lease
    30  or conveyance shall be permitted pursuant to this section, unless in the
    31  opinion of bond counsel to the authority, such sale, exchange, transfer,
    32  lease or conveyance  does  not  impair  the  tax-exempt  status  of  any
    33  outstanding  bonds or other obligations, if any, issued by the authority
    34  to finance or refinance the subject property. For the purposes  of  such
    35  opinion,  the  valuation  of such property being sold, exchanged, trans-
    36  ferred, leased or conveyed may reflect  the  terms  and  conditions  set
    37  forth in the plan.
    38    (f)  The description in paragraph (e) of this subdivision of the lands
    39  to  be  transferred  and  conveyed  is  not  intended  to  be  a   legal
    40  description,  but  is  intended  only  to  identify  the  premises to be
    41  conveyed. As a condition of transfer and conveyance, the Atlantic Avenue
    42  Healthcare Property Holding Corporation shall receive an accurate survey
    43  and description of the lands generally described  in  paragraph  (e)  of
    44  this subdivision, which may be used in the conveyance thereof.
    45    (g)  Notwithstanding  any  other  provision  of law to the contrary, a
    46  project built pursuant to the provisions of this section shall be deemed
    47  to be a public works project for the purposes of article  eight  of  the
    48  labor  law,  and  all  the  provisions of article eight of the labor law
    49  shall be applicable to all the work involved in the construction,  demo-
    50  lition,  reconstruction, excavation, rehabilitation, repair, renovation,
    51  alteration, or improvement on lands described in paragraph (e)  of  this
    52  subdivision.
    53    (h) Notwithstanding any other provision of law in this subdivision, no
    54  such  sale,  exchange,  transfer, lease or conveyance shall be permitted

        S. 1508--B                          6
 
     1  pursuant to paragraph (e) of this subdivision without  the  approval  of
     2  the senate.
     3    §  2.  This act shall take effect immediately; provided, however, that
     4  the amendments to subdivision 25 of section 1678 of the public  authori-
     5  ties  law  made  by section one of this act shall survive the expiration
     6  and reversion of such subdivision as provided by section  2  of  chapter
     7  584 of the laws of 2011, as amended.
 
     8                                   PART D
 
     9    Section  1. The opening paragraph of paragraph (ii) of subdivision (a)
    10  of section 2 of part F of chapter 60 of the laws of  2015,  constituting
    11  the  infrastructure  investment act, as amended by section 1 of part RRR
    12  of chapter 59 of the laws of 2017, is amended to read as follows:
    13    Notwithstanding the provisions of subdivision 26 of  section  1678  of
    14  the  public  authorities  law,  section  8  of the public buildings law,
    15  sections 8 and 9 of section 1 of chapter 359 of  the  laws  of  1968  as
    16  amended, section 103 of the general municipal law, and the provisions of
    17  any  other  law to the contrary, and only when a project labor agreement
    18  is utilized, the term "authorized state entity" shall also refer to only
    19  those agencies or authorities identified below solely in connection with
    20  the following authorized projects,  provided  that  such  an  authorized
    21  state  entity may utilize the alternative delivery method referred to as
    22  design-build contracts solely in connection with the  following  author-
    23  ized  projects  should  the  total cost of each such project not be less
    24  than five million dollars ($5,000,000):
    25    § 2. Intentionally omitted.
    26    § 3. Intentionally omitted.
    27    § 4. Section 3 of part F of chapter 60 of the laws of 2015, constitut-
    28  ing the infrastructure investment act, as amended by section 3  of  part
    29  RRR of chapter 59 of the laws of 2017, is amended to read as follows:
    30    §  3. Notwithstanding the provisions of section 38 of the highway law,
    31  section 136-a of the state  finance  law,  section  359  of  the  public
    32  authorities  law,  section 7210 of the education law, and the provisions
    33  of any other law to the contrary, and in conformity  with  the  require-
    34  ments  of  this act, an authorized state entity may utilize the alterna-
    35  tive delivery method referred to as design-build contracts, in consulta-
    36  tion with relevant local labor organizations and  construction  industry
    37  and  only  when  a  project  labor  agreement  is  utilized, for capital
    38  projects related to the state's physical infrastructure, including,  but
    39  not  limited  to,  the  state's  highways,  bridges, dams, flood control
    40  projects, canals, and parks, including, but not limited  to,  to  repair
    41  damage caused by natural disaster, to correct health and safety defects,
    42  to  comply  with  federal and state laws, standards, and regulations, to
    43  extend the useful life of or  replace  the  state's  highways,  bridges,
    44  dams,  flood control projects, canals, and parks or to improve or add to
    45  the state's highways, bridges, dams, flood control projects, canals, and
    46  parks; provided that for the contracts executed  by  the  department  of
    47  transportation,  the  office of parks, recreation and historic preserva-
    48  tion, or the department of environmental conservation, the total cost of
    49  each  such  project  shall  not  be  less  than  ten   million   dollars
    50  ($10,000,000).  In  all  cases, the authorized state entity shall ensure
    51  that its procurement record reflects the design-build  contract  process
    52  authorized  by  this act. For purposes of this act, each capital project
    53  shall be let as an individual, functionally interdependent contract  for
    54  the  construction,  reconstruction, renovation, rehabilitation, improve-

        S. 1508--B                          7
 
     1  ment, or expansion activity associated with a single structure, or other
     2  improvement, including all directly related infrastructure and site work
     3  in contemplation thereof.
     4    Notwithstanding  any  provision  of law to the contrary, all rights or
     5  benefits, including terms and conditions of employment,  and  protection
     6  of  civil  service  and  collective  bargaining  status  of all existing
     7  employees of authorized state entities solely  in  connection  with  the
     8  authorized projects listed above, shall be preserved and protected.
     9    Nothing  in  this section shall result in the: (1) displacement of any
    10  currently  employed  worker  or  loss  of  position  (including  partial
    11  displacement  such  as  a  reduction  in the hours of non-overtime work,
    12  wages, or employment benefits) or result in the impairment  of  existing
    13  collective  bargaining  agreements;  and (2) transfer of existing duties
    14  and functions related to maintenance and operations currently  performed
    15  by  existing  employees  of  authorized  state entities to a contracting
    16  entity. Nothing contained herein shall be construed to  affect  (A)  the
    17  existing rights of employees pursuant to an existing collective bargain-
    18  ing agreement, and (B) the existing representational relationships among
    19  employee  organizations  or  the  bargaining  relationships  between the
    20  employer and an employee organization.
    21    § 5. Intentionally omitted.
    22    § 6. Section 7 of part F of chapter 60 of the laws of 2015, constitut-
    23  ing the infrastructure investment act, is amended to read as follows:
    24    § 7. If otherwise  applicable,  capital  projects  undertaken  by  the
    25  authorized state entity pursuant to this act shall be subject to section
    26  135  of  the  state  finance  law  and section 222 of the labor law.   A
    27  project labor agreement, as defined in section 222  of  the  labor  law,
    28  shall be included in the request for proposals for the project, provided
    29  that, based upon a study done by or for the authorized state entity, the
    30  authorized  state  entity  determines that its interest in obtaining the
    31  best work at the lowest possible price,  preventing  favoritism,  fraud,
    32  and  corruption,  and  other considerations such as the impact of delay,
    33  the possibility of cost savings advantages, and  any  local  history  of
    34  labor  unrest,  are best met by requiring a project labor agreement. The
    35  authorized entity shall contract for an independent study  to  determine
    36  the  feasibility of a project labor agreement. If a project agreement is
    37  not utilized on the project, then the authorized state entity shall  not
    38  utilize a design-build contract for the project.
    39    §  6-a. Section 6 of part F of chapter 60 of the laws of 2015, consti-
    40  tuting the infrastructure investment act, is amended to read as follows:
    41    § 6. Construction for each capital project undertaken by  the  author-
    42  ized  state  entity pursuant to this act shall be deemed a "public work"
    43  to be performed in accordance with the provisions of article  8  of  the
    44  labor  law,  as well as subject to sections 200, 240, 241 and 242 of the
    45  labor law and compliance with all such provisions shall be  required  of
    46  any  lessee,  sublessee,  contractor,  or  subcontractor  on the project
    47  including enforcement of prevailing wage requirements by  the  New  York
    48  state department of labor.
    49    § 7. Section 8 of part F of chapter 60 of the laws of 2015, constitut-
    50  ing the infrastructure investment act, is amended to read as follows:
    51    §  8. Each contract entered into by the authorized state entity pursu-
    52  ant to this section shall comply with the objectives and goals of minor-
    53  ity and women-owned business enterprises pursuant to article 15-A of the
    54  executive law and of service-disabled veteran-owned business enterprises
    55  pursuant to article 17-B of the executive law or, for projects receiving

        S. 1508--B                          8
 
     1  federal aid, shall  comply  with  applicable  federal  requirements  for
     2  disadvantaged business enterprises.
     3    § 8. Intentionally omitted.
     4    § 9. Intentionally omitted.
     5    § 10. Intentionally omitted.
     6    §  10-a.  Section  16  of  part  F  of chapter 60 of the laws of 2015,
     7  constituting the infrastructure investment act, is amended  to  read  as
     8  follows:
     9    §  16.  A report shall be submitted on or no later than June 30, 2016,
    10  and on June 30 of every year thereafter, to the governor, the  temporary
    11  president  of the senate and the speaker of the assembly by the New York
    12  state urban  development  corporation  containing  information  on  each
    13  authorized  state  entity  that has entered into a design-build contract
    14  pursuant to this act, which shall include, but  not  be  limited  to,  a
    15  description of each project, procurement information including the short
    16  list of qualified bidders, the total cost of each project, the estimated
    17  cost  and  schedule  savings  of each project, an explanation of how the
    18  savings were determined, and whether a project labor agreement was used,
    19  and if applicable, the justification for using a  project  labor  agree-
    20  ment.
    21    §  11. Section 17 of part F of chapter 60 of the laws of 2015, consti-
    22  tuting the infrastructure investment act, as amended by  section  14  of
    23  part  RRR  of  chapter  59  of  the  laws of 2017, is amended to read as
    24  follows:
    25    § 17. This act shall take effect immediately and shall expire  and  be
    26  deemed  repealed  [4]  6  years after such date, provided that, projects
    27  with requests for qualifications issued prior to such  repeal  shall  be
    28  permitted to continue under this act notwithstanding such repeal.
    29    §  11-a.  Section  1  of  part  QQQ of chapter 59 of the laws of 2018,
    30  constituting the New York city BQE Design-Build act, is amended to  read
    31  as follows:
    32    Section  1.  This act shall be known and may be cited as the "New York
    33  city [BQE] Design-Build act".
    34    § 11-b. Section 2 of part QQQ of chapter  59  of  the  laws  of  2018,
    35  constituting  the New York city BQE Design-Build act, is amended to read
    36  as follows:
    37    § 2. For the purposes of this act:
    38    (a) "Authorized entity" shall mean the New  York  city  department  of
    39  design and construction, [and] the New York city department of transpor-
    40  tation,  the  New  York city department of environmental protection, the
    41  New York city school construction authority, the New York  city  depart-
    42  ment  of housing preservation, the New York city department of parks and
    43  recreation, the New York city health and hospitals corporation, and  New
    44  York city housing authority.
    45    (b)  "Best  value"  shall  mean  the  basis for awarding contracts for
    46  services to a proposer that  optimizes  quality,  cost  and  efficiency,
    47  price  and  performance  criteria, which may include, but is not limited
    48  to:
    49    (1) The quality of the proposer's performance on previous projects;
    50    (2) The timeliness of the proposer's performance on previous projects;
    51    (3) The level of customer satisfaction with the proposer's performance
    52  on previous projects;
    53    (4) The proposer's record of performing previous  projects  on  budget
    54  and ability to minimize cost overruns;
    55    (5) The proposer's ability to limit change orders;
    56    (6) The proposer's ability to prepare appropriate project plans;

        S. 1508--B                          9
 
     1    (7) The proposer's technical capacities;
     2    (8) The individual qualifications of the proposer's key personnel;
     3    (9) The proposer's ability to assess and manage risk and minimize risk
     4  impact;
     5    (10) The proposer's financial capability;
     6    (11)  The  proposer's  ability to comply with applicable requirements,
     7  including the provisions of articles 145, 147 and 148 of  the  education
     8  law;
     9    (12)  The proposer's past record of compliance with federal, state and
    10  local laws, rules, licensing requirements, where applicable, and  execu-
    11  tive  orders, including but not limited to compliance with the labor law
    12  and other applicable labor and prevailing wage laws, article 15-A of the
    13  executive law, and any other applicable laws  concerning  minority-  and
    14  women-owned business enterprise participation;
    15    (13) The proposer's record of complying with existing labor standards,
    16  maintaining  harmonious  labor  relations, and protecting the health and
    17  safety of workers and payment of wages above any locally-defined  living
    18  wage; and
    19    (14)  A quantitative factor to be used in evaluation of bids or offers
    20  for awarding of contracts for bidders or offerers that are certified  as
    21  minority-  or  women-owned business enterprises pursuant to article 15-A
    22  of the executive law, and certified pursuant to local law  as  minority-
    23  or  women-owned business enterprises. Where an agency identifies a quan-
    24  titative factor pursuant to this paragraph, the agency must specify that
    25  businesses certified as minority- or  women-owned  business  enterprises
    26  pursuant to article 15-A of the executive law as well as those certified
    27  as  minority- or women-owned business enterprises or pursuant to section
    28  1304 of the New York City charter  are  eligible  to  qualify  for  such
    29  factor.  Nothing  in  this paragraph shall be construed as a requirement
    30  that such businesses be concurrently certified as  minority-  or  women-
    31  owned  business enterprises under both article 15-A of the executive law
    32  and section 1304 of the New York City charter to qualify for such  quan-
    33  titative   factors.   In  addition,  where  the  New  York  city  school
    34  construction authority acts as the authorized entity, businesses  certi-
    35  fied  as  minority-  or  women-owned  business  enterprises  pursuant to
    36  section 1743 of the public authorities law shall be eligible to  qualify
    37  for  such factor. Such basis shall reflect, wherever possible, objective
    38  and quantifiable analysis.
    39    (c) "Cost plus" shall mean compensating a contractor for the  cost  to
    40  complete a contract by reimbursing actual costs for labor, equipment and
    41  materials plus an additional amount for overhead and profit.
    42    (d)  "Design-build  contract" shall mean a contract for the design and
    43  construction of a public work with a single entity, which may be a  team
    44  comprised of separate entities.
    45    (e)  "Project  labor  agreement"  shall  have the meaning set forth in
    46  subdivision 1 of section 222 of the labor law. A project labor agreement
    47  shall require participation in apprentice training programs  in  accord-
    48  ance with paragraph (e) of subdivision 2 of such section.
    49    [(f)  "Public  work"  shall mean a public work in the city of New York
    50  related to the following, and shall refer to this public work;  Brooklyn
    51  Queens  Expressway, from the vicinity of Atlantic avenue to the vicinity
    52  of Sands street in Kings county.]
    53    § 11-c. Section 4 of part QQQ of chapter  59  of  the  laws  of  2018,
    54  constituting  the New York city BQE Design-Build act, is amended to read
    55  as follows:

        S. 1508--B                         10
 
     1    § 4. Notwithstanding any general, special or local law, rule or  regu-
     2  lation  to the contrary, including but not limited to article 5-A of the
     3  general municipal law and sections 1734 and 1735 of the public  authori-
     4  ties  law  and  article 8 of the public housing law, section 7210 of the
     5  education  law,  and section 8 of the New York city health and hospitals
     6  corporation act, and in conformity with the requirements  of  this  act,
     7  for  any  public  work  that  has an estimated cost of not less than ten
     8  million dollars and is undertaken pursuant to a project labor  agreement
     9  in  accordance  with  section 222 of the labor law, an authorized entity
    10  charged with awarding a contract for public work may use the alternative
    11  delivery method referred to as design-build contracts.
    12    (a) A contractor selected by such authorized entity to  enter  into  a
    13  design-build  contract  shall  be selected through a two-step method, as
    14  follows:
    15    (1) Step one. Generation of a list of responding  entities  that  have
    16  demonstrated   the   general  capability  to  perform  the  design-build
    17  contract. Such list shall consist of a specified  number  of  responding
    18  entities,  as determined by an authorized entity, and shall be generated
    19  based upon the authorized entity's review of  responses  to  a  publicly
    20  advertised  request for qualifications.  The authorized entity's request
    21  for qualifications shall include a general  description  of  the  public
    22  work,  the  maximum  number of responding entities to be included on the
    23  list, the selection criteria to be used and the relative weight of  each
    24  criteria  in  generating the list. Such selection criteria shall include
    25  the qualifications and experience of the design and  construction  team,
    26  organization,  demonstrated  responsibility, ability of the team or of a
    27  member or members of the team to comply  with  applicable  requirements,
    28  including  the provisions of articles 145, 147, and 148 of the education
    29  law, past record of compliance with the labor law, and such other quali-
    30  fications the authorized entity deems appropriate, which may include but
    31  are not limited  to  project  understanding,  financial  capability  and
    32  record  of  past  performance.  The authorized entity shall evaluate and
    33  rate all responding entities to the request  for  qualifications.  Based
    34  upon such ratings, the authorized entity shall list the responding enti-
    35  ties that shall receive a request for proposals in accordance with para-
    36  graph two of this subdivision.  To the extent consistent with applicable
    37  federal  law,  the  authorized  entity shall consider, when awarding any
    38  contract pursuant to this section, the participation of: (i)  responding
    39  entities  that are certified as minority- or women-owned business enter-
    40  prises pursuant to article 15-A  of  the  executive  law,  or  certified
    41  pursuant  to local law as minority- or women-owned business enterprises;
    42  and (ii) small business concerns identified pursuant to subdivision  (b)
    43  of section 139-g of the state finance law.
    44    (2) Step two. Selection of the proposal which is the best value to the
    45  authorized  entity.  The  authorized  entity  shall  issue a request for
    46  proposals to the responding entities listed pursuant to paragraph one of
    47  this subdivision. If such a responding entity  consists  of  a  team  of
    48  separate  entities,  the  entities that comprise such a team must remain
    49  unchanged from the responding entity as listed pursuant to paragraph one
    50  of this subdivision unless otherwise approved by the authorized  entity.
    51  The  request  for  proposals  shall set forth the public work's scope of
    52  work, and other requirements, as determined by  the  authorized  entity,
    53  which  may  include  separate  goals  for  work under the contract to be
    54  performed by businesses certified as minority- or  women-owned  business
    55  enterprises  pursuant  to  article  15-A of the executive law or section
    56  1743 of the public authorities law, or certified pursuant to  local  law

        S. 1508--B                         11
 
     1  as  minority-  or  women-owned  business  enterprises.  The  request for
     2  proposals shall also specify the criteria to be  used  to  evaluate  the
     3  responses  and the relative weight of each of such criteria. Such crite-
     4  ria  shall  include  the  proposal's cost, the quality of the proposal's
     5  solution, the qualifications and experience of the proposer,  and  other
     6  factors  deemed  pertinent  by the authorized entity, which may include,
     7  but shall not be limited to,  the  proposal's  manner  and  schedule  of
     8  project implementation, the proposer's ability to complete the work in a
     9  timely  and  satisfactory  manner,  maintenance  costs  of the completed
    10  public work, maintenance of traffic approach, and community impact.  Any
    11  contract  awarded  pursuant to this act shall be awarded to a responsive
    12  and responsible proposer, which, in consideration  of  these  and  other
    13  specified  criteria  deemed  pertinent, offers the best value, as deter-
    14  mined by the authorized entity. The request for proposals shall  include
    15  a  statement that proposers shall designate in writing those portions of
    16  the proposal that contain trade secrets or other proprietary information
    17  that are to remain confidential; that the material designated as  confi-
    18  dential  shall  be  readily separable from the proposal. Nothing in this
    19  subdivision shall be construed to prohibit the  authorized  entity  from
    20  negotiating  final  contract  terms  and  conditions including cost. All
    21  proposals submitted shall be scored according to the criteria listed  in
    22  the  request  for  proposals and such final scores shall be published on
    23  the authorized entity's website.
    24    (b) An  authorized  entity  awarding  a  design-build  contract  to  a
    25  contractor  offering the best value may but shall not be required to use
    26  the following types of contracts:
    27    (1) A cost-plus  not  to  exceed  guaranteed  maximum  price  form  of
    28  contract in which the authorized entity shall be entitled to monitor and
    29  audit  all costs. In establishing the schedule and process for determin-
    30  ing a guaranteed maximum price,  the  contract  between  the  authorized
    31  entity and the contractor shall:
    32    (i)  Describe  the  scope  of the work and the cost of performing such
    33  work,
    34    (ii) Include a detailed line item cost breakdown,
    35    (iii) Include a list of all drawings, specifications and other  infor-
    36  mation on which the guaranteed maximum price is based,
    37    (iv)  Include  the  dates of substantial and final completion on which
    38  the guaranteed maximum price is based, and
    39    (v) Include a schedule of unit prices; or
    40    (2) A lump sum contract in which the contractor agrees to accept a set
    41  dollar amount for a  contract  which  comprises  a  single  bid  without
    42  providing  a  cost breakdown for all costs such as for equipment, labor,
    43  materials, as well as such contractor's profit for completing all  items
    44  of work comprising the public work.
    45    §  11-d.  Section  7  of  part  QQQ of chapter 59 of the laws of 2018,
    46  constituting the New York city BQE Design-Build act, is amended to  read
    47  as follows:
    48    §  7.  Each  contract entered into by an authorized entity pursuant to
    49  this act shall comply with the  objectives  and  goals  with  regard  to
    50  minority-  and women-owned business enterprises pursuant to, as applica-
    51  ble, section 6-129 of the administrative code of the city of  New  York,
    52  subdivision  6  of  section  8 of the New York city health and hospitals
    53  corporation act, section 1743 of the  public  authorities  law  or,  for
    54  projects  or  public  works  receiving  federal  aid, applicable federal
    55  requirements for disadvantaged business  enterprises  or  minority-  and
    56  women-owned business enterprises.

        S. 1508--B                         12
 
     1    §  11-e.  Section  12  of  part QQQ of chapter 59 of the laws of 2018,
     2  constituting the New York city BQE Design-Build act, is REPEALED  and  a
     3  new section 12 is added to read as follows:
     4    §  12.  The authority conferred by this act shall not impact or impair
     5  the authorization granted to any public work covered  by  the  New  York
     6  city  BQE  Design-Build Act, the New York city housing authority modern-
     7  ization investment act or the New York city Rikers Island  jail  complex
     8  replacement  act shall continue to be governed by the provisions of such
     9  act while such provisions are in effect.
    10    § 11-f. Section 13 of part QQQ of chapter 59  of  the  laws  of  2018,
    11  constituting  the New York city BQE Design-Build act, is amended to read
    12  as follows:
    13    § 13. This act shall take effect immediately and shall expire  and  be
    14  deemed repealed [2] 3 years after such date, provided that, public works
    15  with  requests  for  qualifications issued prior to such repeal shall be
    16  permitted to continue under this act notwithstanding such repeal.
    17    § 12. This act shall take effect immediately; provided,  however  that
    18  the  amendments  to  the  infrastructure investment act made by sections
    19  one, four, six, six-a, seven, and ten-a of this act shall not affect the
    20  repeal of such act and shall be deemed repealed therewith; and  provided
    21  further  that the amendments to the "New York city BQE Design-Build act"
    22  made by section eleven-a, eleven-b, eleven-c,  eleven-d,  eleven-e,  and
    23  eleven-f  of  this act shall not affect the repeal of such act and shall
    24  be deemed therewith.
 
    25                                   PART E
 
    26    Section 1. Subdivision 1 and the opening paragraph of subdivision 2 of
    27  section 27-1905 of the environmental conservation  law,  as  amended  by
    28  section  1  of  part T of chapter 58 of the laws of 2016, are amended to
    29  read as follows:
    30    1. [Until December thirty-first, two thousand nineteen, accept] Accept
    31  from a customer, waste tires of approximately the same  size  and  in  a
    32  quantity  equal to the number of new tires purchased or installed by the
    33  customer; and
    34    [Until December thirty-first, two thousand nineteen, post] Post  writ-
    35  ten  notice  in  a  prominent location, which must be at least eight and
    36  one-half inches by fourteen inches in size  and  contain  the  following
    37  language:
    38    §  2.    Subdivisions  1,  2, 3, and paragraph (a) of subdivision 6 of
    39  section 27-1913 of the environmental conservation  law,  as  amended  by
    40  section  2  of  part T of chapter 58 of the laws of 2016, are amended to
    41  read as follows:
    42    1. [Until December thirty-first, two thousand  nineteen,  a]  A  waste
    43  tire  management  and recycling fee of two dollars and fifty cents shall
    44  be charged on each new tire sold. The fee shall be paid by the purchaser
    45  to the tire service at the time the new tire or  new  motor  vehicle  is
    46  purchased.
    47    The waste tire management and recycling fee does not apply to:
    48    (a) recapped or resold tires;
    49    (b) mail-order sales; or
    50    (c)  the  sale  of  new motor vehicle tires to a person solely for the
    51  purpose of resale provided the subsequent retail sale in this  state  is
    52  subject to such fee.
    53    2.  [Until December thirty-first, two thousand nineteen, the] The tire
    54  service shall collect the waste tire management and recycling  fee  from

        S. 1508--B                         13
 
     1  the  purchaser  at  the time of the sale and shall remit such fee to the
     2  department of taxation and  finance  with  the  quarterly  report  filed
     3  pursuant to subdivision three of this section.
     4    (a)  The  fee  imposed shall be stated as an invoice item separate and
     5  distinct from the selling price of the tire.
     6    (b) The tire service shall be entitled to retain an allowance of twen-
     7  ty-five cents per tire from fees collected.
     8    3. [Until March thirty-first, two thousand  twenty,  each]  Each  tire
     9  service  maintaining  a  place  of  business  in this state shall make a
    10  return to the department of taxation and finance on a  quarterly  basis,
    11  with  the  return  for  December,  January, and February being due on or
    12  before the immediately following  March  thirty-first;  the  return  for
    13  March,  April,  and May being due on or before the immediately following
    14  June thirtieth; the return for June, July, and August being  due  on  or
    15  before the immediately following September thirtieth; and the return for
    16  September,  October, and November being due on or before the immediately
    17  following December thirty-first.
    18    (a) Each return shall include:
    19    (i) the name of the tire service;
    20    (ii) the address of the tire service's principal place of business and
    21  the address of the principal place of business (if that is  a  different
    22  address)  from  which the tire service engages in the business of making
    23  retail sales of tires;
    24    (iii) the name and signature of the person preparing the return;
    25    (iv) the total number of new tires sold at retail  for  the  preceding
    26  quarter and the total number of new tires placed on motor vehicles prior
    27  to original retail sale;
    28    (v) the amount of waste tire management and recycling fees due; and
    29    (vi)  such  other reasonable information as the department of taxation
    30  and finance may require.
    31    (b) Copies of each report shall be retained by the  tire  service  for
    32  three years.
    33    If  a  tire  service ceases business, it shall file a final return and
    34  remit all fees due under this title with the department of taxation  and
    35  finance not more than one month after discontinuing that business.
    36    (a)  [Until  December  thirty-first,  two  thousand nineteen, any] Any
    37  additional waste tire management and recycling costs of the tire service
    38  in excess of the amount authorized to be retained pursuant to  paragraph
    39  (b)  of subdivision two of this section may be included in the published
    40  selling price of the new tire, or charged as a separate per-tire  charge
    41  on  each  new  tire sold. When such costs are charged as a separate per-
    42  tire charge: (i) such charge shall be stated as an invoice item separate
    43  and distinct from the selling price of the tire; (ii) the invoice  shall
    44  state  that  the  charge  is  imposed at the sole discretion of the tire
    45  service; and (iii) the amount of such charge shall  reflect  the  actual
    46  cost to the tire service for the management and recycling of waste tires
    47  accepted  by the tire service pursuant to section 27-1905 of this title,
    48  provided however, that in no event shall such charge exceed two  dollars
    49  and fifty cents on each new tire sold.
    50    § 3. Paragraphs (b) and (c) of subdivision 1 of section 27-1915 of the
    51  environmental  conservation  law,  as amended by section 5 of part DD of
    52  chapter 59 of the laws of 2010, are amended and a new paragraph  (d)  is
    53  added to read as follows:
    54    (b) abatement of noncompliant waste tire stockpiles; [and]
    55    (c)  administration  and enforcement of the requirements of this arti-
    56  cle, exclusive of titles thirteen and fourteen[.]; and

        S. 1508--B                         14
 
     1    (d) conducting an updated market analysis of outlets  for  waste  tire
     2  utilization including recycling and energy recovery opportunities.
     3    §  4. Section 27-1915 of the environmental conservation law is amended
     4  by adding a new subdivision 7 to read as follows:
     5    7. costs of the department of agriculture and markets for the  follow-
     6  ing:
     7    (a) funding of demonstration and other projects;
     8    (b)  establishment  of a program to provide funds to assist farms with
     9  beneficial use waste tires, including but not  limited  to  waste  tires
    10  commonly used to secure tarpaulins for weather protection practices; and
    11    (c) administration of requirements of this section.
    12    §  5.  Subdivision 5 of section 27-1907 of the environmental conserva-
    13  tion law, as amended by section 2 of part DD of chapter 59 of  the  laws
    14  of 2010, is amended to read as follows:
    15    5.  The  department  shall  make all reasonable efforts to recover the
    16  full amount of any funds expended from the waste management and  cleanup
    17  fund  for  abatement  or  remediation  through litigation or cooperative
    18  agreements, but excluding any costs associated with the removal,  abate-
    19  ment,  and  processing of waste tires used in the course of agricultural
    20  production.  Any and all moneys recovered, repaid or reimbursed pursuant
    21  to this section shall be deposited with the comptroller and credited  to
    22  such fund.
    23    § 6. This act shall take effect immediately.
 
    24                                   PART F
 
    25                            Intentionally Omitted
 
    26                                   PART G
 
    27                            Intentionally Omitted
 
    28                                   PART H
 
    29    Section  1.  This act shall be known and may be cited as the "New York
    30  state bring your own bag act".
    31    § 2. Article 27 of the environmental conservation law  is  amended  by
    32  adding a new title 28 to read as follows:
    33                                  TITLE 28
    34                        CARRYOUT BAG WASTE REDUCTION
    35  Section 27-2801. Definitions.
    36          27-2802. Charges.
    37          27-2803. Additional obligations for stores.
    38          27-2804. Deposit and disposition of fees.
    39          27-2805. Violations.
    40          27-2806. Preemption of local law.
    41  § 27-2801. Definitions.
    42    As used in this article:
    43    1. "Carryout bag" means a bag made of plastic, paper, or other materi-
    44  al  that  is intended for the purpose of carrying purchased items and is
    45  provided by a store to a customer at the point of sale and that is not a
    46  reusable grocery bag;
    47    2. "Exempt bag" means a bag intended to directly contain food, includ-
    48  ing, but not limited to sandwich bags, handleless produce bags and  bags
    49  provided by a pharmacy to carry prescription drugs;

        S. 1508--B                         15
 
     1    3. "Store" means a general vendor, or a retail or wholesale establish-
     2  ment  engaged  in  the  sale  of  personal,  consumer or household items
     3  including but not limited to drug stores,  pharmacies,  grocery  stores,
     4  supermarkets, convenience food stores or foodmarts that provide carryout
     5  bags  to consumers in which to place items purchased or obtained at such
     6  establishments. Such term shall not include food service establishments,
     7  mobile food service  establishments,  or  emergency  food  providers  or
     8  501(c)(3) organizations;
     9    4.  "Reusable  grocery  bag"  means a bag with handles that is specif-
    10  ically designed and manufactured for multiple reuse that is provided  by
    11  a store to a customer at the point of sale and capable of carrying twen-
    12  ty-two pounds over a distance of one hundred and seventy-five feet for a
    13  minimum  of  one  hundred and twenty-five uses and is either (a) made of
    14  cloth or other machine washable fabric, or (b) made of  durable  plastic
    15  that  is at least 2.25 mils thick, measured according to the ASTM stand-
    16  ard D6988-13;
    17    5. "Mobile food vendor" means a self-contained food service operation,
    18  located in a readily movable pushcart, motorized wheeled or towed  vehi-
    19  cle, used to store, prepare, display or serve food intended for individ-
    20  ual portion service.
    21  § 27-2802. Charges.
    22    1.  (a)  Stores  shall charge a fee of no less than ten cents for each
    23  carryout bag or reusable grocery bag provided to any  person.  No  store
    24  shall  charge  more  than  twenty-five cents for each carryout bag. This
    25  charge shall be incurred by the customer at the point of sale, and  will
    26  appear  as a separate charge on the receipt received by the customer for
    27  the purchased items.
    28    (b) The store collecting fees pursuant to paragraph (a) of this subdi-
    29  vision shall retain twenty percent of all such fees and shall remit  the
    30  remaining  eighty  percent of all such fees to the commissioner of taxa-
    31  tion and finance in accordance with the provisions of section 27-2804 of
    32  this title for deposit to the credit  of  the  environmental  protection
    33  fund  established  pursuant to section ninety-two-s of the state finance
    34  law.   All such funds shall be made  available  to  localities  for  the
    35  purpose  of  pollution reduction, cleanup, and education, and purchasing
    36  and distributing reusable bags, with priority given to low and fixed-in-
    37  come communities.
    38    2. (a) No store shall charge a carryout bag fee for bags of  any  kind
    39  provided  by the customer in lieu of a carryout bag of any kind provided
    40  by any such store.
    41    (b) No store shall be required to charge such fee for an exempt bag.
    42    3. No store shall prevent a person from using a bag of any  kind  that
    43  they  have brought to any such store for purposes of carrying goods from
    44  such store.
    45    4. All stores that provide carryout bags to  customers  shall  provide
    46  carryout  bags  free of charge for items purchased at such stores by any
    47  person using the New  York  state  supplemental  nutritional  assistance
    48  program or the New York state special supplemental nutrition program for
    49  women, infants and children as a full or partial payment.
    50    5.  The  department  shall promulgate all necessary or desirable rules
    51  and regulations to effect the purposes  set  forth  in  this  title  and
    52  educate  the  general  public  about such purposes. The department shall
    53  conduct outreach programs to  educate  the  general  public  about  such
    54  purposes and shall publicize such rules and regulations on its website.
    55  § 27-2803. Additional obligations for stores.

        S. 1508--B                         16
 
     1    1. All stores subject to the provisions of this title shall post signs
     2  provided or approved by the department at or near points of sale located
     3  in  such  covered  stores  to notify customers of the provisions of this
     4  section.
     5    2.    No store subject to the provisions of this title shall provide a
     6  credit to any person specifically  for  the  purpose  of  offsetting  or
     7  avoiding  the  carryout  bag  charge required by section 27-2802 of this
     8  title.
     9    3. A store may not charge a fee pursuant to subdivision one of section
    10  27-2802 of this title,  for  a  reusable  grocery  bag  that  meets  the
    11  requirements  of  subdivision  four of section 27-2801 of this title and
    12  which is distributed to a customer without charge during a limited dura-
    13  tion promotional event, not to exceed fourteen days per year.
    14    4. Paper carryout bags subject  to  provisions  of  this  title  shall
    15  contain a minimum of forty percent post-consumer recycled content.
    16    5.  No store shall distribute any plastic carryout bags to its custom-
    17  ers unless such bags are exempt bags as defined in  subdivision  two  of
    18  section 27-2801 of this title.
    19  § 27-2804. Deposit and disposition of fees.
    20    1.  Each  store collecting fees as provided in section 27-2802 of this
    21  title shall deposit all such fees collected into a  designated  carryout
    22  bag  account.  Such  store  shall  hold  the amounts in the carryout bag
    23  account in trust for the state. A  carryout  bag  account  shall  be  an
    24  interest-bearing account established in a banking institution located in
    25  this state, the deposits in which are insured by an agency of the feder-
    26  al  government.  Deposits  of such amounts into the carryout bag account
    27  shall be made not less frequently than every  five  business  days.  All
    28  interest,  dividends  and  returns  earned on monies in the carryout bag
    29  account shall be paid directly into said account.  The  monies  in  such
    30  account  shall  be  kept separate and apart from all other monies in the
    31  possession of the store. The commissioner of taxation  and  finance  may
    32  specify a system of account and records to be maintained with respect to
    33  accounts established under this subdivision.
    34    2.  Each  store  shall file quarterly reports with the commissioner of
    35  taxation and finance on a form and in  the  manner  prescribed  by  such
    36  commissioner.  The commissioner of taxation and finance may require such
    37  reports to be filed electronically. The quarterly  reports  required  by
    38  this  subdivision shall be filed for the quarterly periods ending on the
    39  last day of May, August, November and February of each  year,  and  each
    40  such report shall be filed within twenty days after the end of the quar-
    41  terly  period covered thereby. Each such report shall include all infor-
    42  mation such commissioner shall determine appropriate including  but  not
    43  limited to the following information:
    44    a.  the  balance  in  the carryout bag account at the beginning of the
    45  quarter for which the report is prepared;
    46    b. all such deposits credited to the  carryout  bag  account  and  all
    47  interest,  dividends  or  returns  received on such account, during such
    48  quarter;
    49    c. all service charges on the account, and all payments made  pursuant
    50  to subdivision three of this section; and
    51    d.  the balance in the carryout bag account at the close of such quar-
    52  ter.
    53    3. a. An amount equal to eighty percent of the balance outstanding  in
    54  the  carryout  bag account at the close of each quarter shall be paid to
    55  the commissioner of taxation and finance at the time the report provided
    56  for in subdivision two of this section is  required  to  be  filed.  The

        S. 1508--B                         17
 
     1  commissioner  of  taxation  and finance may require that the payments be
     2  made  electronically.  The  remaining  twenty  percent  of  the  balance
     3  outstanding  at  the  close  of  each quarter shall be the monies of the
     4  store  and  may  be  withdrawn  from  such  account by the store. If the
     5  provisions of this section with respect to such account  have  not  been
     6  fully  complied  with, each store shall pay to such commissioner at such
     7  time, in lieu of the amount described  in  the  preceding  sentence,  an
     8  amount  equal  to  the balance which would have been outstanding on such
     9  date had such provisions been fully complied with. The  commissioner  of
    10  taxation  and  finance  may  require that the payments be made electron-
    11  ically.
    12    b. A store who ceases to do business in this state as  a  store  shall
    13  file  a  final report and remit payment of eighty percent of all amounts
    14  remaining in the carryout bag account as of the  close  of  the  store's
    15  last  day  of  business.  The  commissioner  of taxation and finance may
    16  require that the payments be made electronically. The store shall  indi-
    17  cate  on the report that it is a "final report". The final report is due
    18  to be filed with payment twenty days after the close  of  the  quarterly
    19  period in which the store ceases to do business.
    20    4.  All monies collected or received by the department of taxation and
    21  finance pursuant to this title shall be deposited to the credit  of  the
    22  comptroller  with such responsible banks, banking houses or trust compa-
    23  nies as may be designated by the comptroller.  Such  deposits  shall  be
    24  kept  separate  and apart from all other monies in the possession of the
    25  comptroller. The comptroller shall require adequate  security  from  all
    26  such depositories. The comptroller must, by the tenth day of each month,
    27  pay  into  the  state  treasury  to  the  credit  of  the  environmental
    28  protection fund established pursuant  to  section  ninety-two-s  of  the
    29  state  finance  law  the revenue deposited under this subdivision during
    30  the preceding calendar month and remaining to the  comptroller's  credit
    31  on the last day of that preceding month.
    32    5. The commissioner and the commissioner of taxation and finance shall
    33  promulgate, and shall consult each other in promulgating, such rules and
    34  regulations  as  may  be  necessary  to  effectuate the purposes of this
    35  title. The commissioner and the commissioner  of  taxation  and  finance
    36  shall  provide all necessary aid and assistance to each other, including
    37  the sharing of any information that is  necessary  to  their  respective
    38  administration   and   enforcement   responsibilities  pursuant  to  the
    39  provisions of this title.
    40    6. a. Any store in operation prior  to  the  effective  date  of  this
    41  title,  must  apply  within  three  months of the effective date of this
    42  title to the commissioner of taxation and finance  for  registration  to
    43  collect  fees  as  provided  in section 27-2802 of this title. Any store
    44  commencing operations on or after three months from the  effective  date
    45  of this title shall apply for registration prior to collecting any fees.
    46  Such  application  shall  be in a form prescribed by the commissioner of
    47  taxation and finance and shall require such  information  deemed  to  be
    48  necessary  for  proper administration of this title. The commissioner of
    49  taxation and finance may require that applications for registration must
    50  be submitted electronically.  The commissioner of taxation  and  finance
    51  shall  electronically  issue  a store registration certificate in a form
    52  prescribed by the commissioner of taxation and  finance  within  fifteen
    53  days  of  receipt of such application or may take an additional ten days
    54  if the commissioner of  taxation  and  finance  deems  it  necessary  to
    55  consult  with  the commissioner before issuing such registration certif-
    56  icate. A registration certificate issued pursuant  to  this  subdivision

        S. 1508--B                         18

     1  may  be  issued  for  a  specified term of not less than three years and
     2  shall be subject to renewal in accordance with procedures  specified  by
     3  the  commissioner  of taxation and finance. The commissioner of taxation
     4  and  finance shall furnish to the commissioner a complete list of regis-
     5  tered stores and shall continually update such list  as  warranted.  The
     6  commissioner  shall share any information with the commissioner of taxa-
     7  tion and finance that is necessary for the administration of this subdi-
     8  vision.
     9    b. The commissioner of taxation and finance shall have  the  authority
    10  to  revoke  or  refuse to renew any registration issued pursuant to this
    11  subdivision when he or she has determined or has been  informed  by  the
    12  commissioner that any of the provisions of this title or rules and regu-
    13  lations promulgated thereunder have been violated. Such violations shall
    14  include,  but  not be limited to, the failure to file quarterly reports,
    15  the failure to make payments pursuant to this subdivision, the providing
    16  of false or fraudulent information to either the department of  taxation
    17  and  finance  or the department, or knowingly aiding or abetting another
    18  person in violating any of the provisions of this  title.  A  notice  of
    19  proposed  revocation  or  non-renewal shall be given to the store in the
    20  manner prescribed for  a  notice  of  deficiency  of  tax  and  all  the
    21  provisions  applicable  to  a notice of deficiency under article twenty-
    22  seven of the tax law shall apply to a notice  issued  pursuant  to  this
    23  paragraph, insofar as such provisions can be made applicable to a notice
    24  authorized  by  this paragraph, with such modifications as may be neces-
    25  sary in order to adapt the language of such  provisions  to  the  notice
    26  authorized by this paragraph. All such notices issued by the commission-
    27  er  of  taxation  and finance pursuant to this paragraph shall contain a
    28  statement advising the store  that  the  revocation  or  non-renewal  of
    29  registration  may  be challenged through a hearing process and the peti-
    30  tion for such a challenge must be filed with the commissioner  of  taxa-
    31  tion and finance within ninety days after such notice is issued. A store
    32  whose  registration has been so revoked or not renewed shall cease to do
    33  business in this state, until this title has been complied  with  and  a
    34  new registration has been issued.
    35    7.  The  commissioner  of taxation and finance may require the mainte-
    36  nance of such accounts, records or documents relating to the  collection
    37  of  fees  for  carryout bags, by any store as such commissioner may deem
    38  appropriate for the administration of this  section.  Such  commissioner
    39  may make examinations, including the conduct of store inspections during
    40  regular  business  hours, with respect to the accounts, records or docu-
    41  ments required to be maintained under this subdivision.  Such  accounts,
    42  records  and  documents  shall be preserved for a period of three years,
    43  except that such commissioner may consent to  their  destruction  within
    44  that  period  or  may  require  that they be kept longer. Such accounts,
    45  records and documents may be kept within the meaning of this subdivision
    46  when reproduced by any photographic, photostatic, microfilm, micro-card,
    47  miniature photographic or other process which  actually  reproduces  the
    48  original accounts, records or documents.
    49    8.  If  any  store  fails  or  refuses to file a report or furnish any
    50  information requested in writing  by  the  department  of  taxation  and
    51  finance  or  the department, the department of taxation and finance with
    52  the assistance of the  department  may,  from  any  information  in  its
    53  possession,  make  an  estimate of the deficiency and collect such defi-
    54  ciency from such store.
    55  § 27-2805. Violations.

        S. 1508--B                         19
 
     1    1.  Any retailer who shall violate any provision of this  title  shall
     2  receive  a warning notice for the first such violation. A retailer shall
     3  be liable to the state of New York for a civil penalty  of  two  hundred
     4  fifty dollars for the first violation after receiving a warning and five
     5  hundred  dollars for any subsequent violation in the same calendar year.
     6  For purposes of this section, each commercial transaction shall  consti-
     7  tute  no  more  than one violation. A hearing or opportunity to be heard
     8  shall be provided prior to the assessment of any civil penalty.
     9    2. It shall not be a violation of this title for a general  vendor  or
    10  green  cart  to fail to provide a receipt to a customer with an itemized
    11  charge for a carryout bag fee.
    12    3. (a) The department, the department of agriculture and markets,  the
    13  department  of health, and the attorney general are hereby authorized to
    14  enforce the provisions of this title, and all monies collected shall  be
    15  deposited to the credit of the environmental protection fund established
    16  pursuant to section ninety-two-s of the state finance law.
    17    (b)  The  provisions of this section may also be enforced by a county,
    18  city, town or village and the local legislative body thereof  may  adopt
    19  local laws, ordinances or regulations consistent with this title provid-
    20  ing for the enforcement of such provisions.
    21    4. Any fines that are collected by the state during proceedings by the
    22  state  to  enforce the provisions of this title shall be retained by the
    23  state. Any fines that are collected by a municipality during proceedings
    24  by the municipality to enforce the provisions of this  title  against  a
    25  retailer  located  in  the municipality shall be retained by the munici-
    26  pality.
    27  § 27-2806. Preemption of local law.
    28    Jurisdiction in all matters pertaining  to  carryout  bags  is  vested
    29  exclusively  in  the state. Any provision of any local law or ordinance,
    30  or any rule or regulation promulgated thereto, governing charges or bans
    31  related to carryout bags shall, upon the effective date of  this  title,
    32  be  preempted. Provided, however, nothing in this section shall preclude
    33  a local law or ordinance, or any rule or regulation from implementing  a
    34  higher fee for carryout bags or reusable grocery bags, or a ban on addi-
    35  tional types of carryout bags.
    36    §  3.  Subdivision  4  of section 63 of the alcoholic beverage control
    37  law, as amended by chapter 360 of the laws of 2017, is amended  to  read
    38  as follows:
    39    4.  No licensee under this section shall be engaged in any other busi-
    40  ness on the licensed premises. The sale of lottery  tickets,  when  duly
    41  authorized  and lawfully conducted, the sale of carryout bags as defined
    42  in subdivision one of section 27-2801 of the environmental  conservation
    43  law  and reusable grocery bags as defined in subdivision four of section
    44  27-2801 of the environmental conservation law, the sale of corkscrews or
    45  the sale of ice or the sale of publications, including prerecorded video
    46  and/or audio cassette tapes, or educational seminars, designed  to  help
    47  educate  consumers  in  their  knowledge  and  appreciation of alcoholic
    48  beverages, as defined in section  three  of  this  chapter  and  allowed
    49  pursuant  to  their license, or the sale of non-carbonated, non-flavored
    50  mineral waters, spring waters and drinking waters or the sale of glasses
    51  designed for the consumption of wine, racks designed for the storage  of
    52  wine,  and  devices  designed  to  minimize oxidation in bottles of wine
    53  which have been uncorked, or the sale of gift bags, gift boxes, or wrap-
    54  ping, for alcoholic beverages purchased at the licensed  premises  shall
    55  not  constitute  engaging in another business within the meaning of this
    56  subdivision. Any fee obtained from the sale of  an  educational  seminar

        S. 1508--B                         20
 
     1  shall  not  be  considered  as a fee for any tasting that may be offered
     2  during an educational seminar, provided that such tastings are available
     3  to persons who have not paid to attend the seminar and all tastings  are
     4  conducted in accordance with section sixty-three-a of this article.
     5    §  4. Subdivision 3 and paragraph (b) of subdivision 6 of section 92-s
     6  of the state finance law, subdivision 3 as amended by section 1 of  part
     7  AA  of chapter 58 of the laws of 2018 and paragraph (b) of subdivision 6
     8  as amended by section 3 of part U of chapter 58 of the laws of 2016, are
     9  amended to read as follows:
    10    3. Such fund shall consist of the amount of revenue  collected  within
    11  the  state  from the amount of revenue, interest and penalties deposited
    12  pursuant to section fourteen hundred twenty-one  of  the  tax  law,  the
    13  amount  of fees and penalties received from easements or leases pursuant
    14  to subdivision fourteen of section seventy-five of the public lands  law
    15  and  the  money  received  as annual service charges pursuant to section
    16  four hundred four-n of the vehicle and traffic law, all moneys  required
    17  to  be  deposited  therein from the contingency reserve fund pursuant to
    18  section two hundred ninety-four of chapter fifty-seven of  the  laws  of
    19  nineteen  hundred  ninety-three,  all  moneys  required  to be deposited
    20  pursuant to section thirteen of chapter six hundred ten of the  laws  of
    21  nineteen  hundred  ninety-three,  repayments  of  loans made pursuant to
    22  section 54-0511 of the environmental conservation law, all moneys to  be
    23  deposited from the Northville settlement pursuant to section one hundred
    24  twenty-four  of  chapter  three  hundred  nine  of  the laws of nineteen
    25  hundred ninety-six, provided however, that such  moneys  shall  only  be
    26  used  for  the cost of the purchase of private lands in the core area of
    27  the central Suffolk pine barrens pursuant to a consent  order  with  the
    28  Northville  industries  signed  on  October thirteenth, nineteen hundred
    29  ninety-four and the related resource restoration and  replacement  plan,
    30  the  amount  of  penalties  required  to be deposited therein by section
    31  71-2724 of the environmental conservation law, all moneys required to be
    32  deposited pursuant to article thirty-three of the environmental  conser-
    33  vation  law, all fees collected pursuant to subdivision eight of section
    34  70-0117 of the environmental  conservation  law,  all  moneys  collected
    35  pursuant  to  title thirty-three of article fifteen of the environmental
    36  conservation law, beginning with the fiscal  year  commencing  on  April
    37  first,  two  thousand thirteen, nineteen million dollars, and all fiscal
    38  years thereafter, twenty-three million dollars plus all  funds  received
    39  by  the  state  each  fiscal year in excess of the greater of the amount
    40  received from April first, two thousand  twelve  through  March  thirty-
    41  first,  two  thousand  thirteen  or  one  hundred twenty-two million two
    42  hundred thousand dollars, from the payments collected pursuant to subdi-
    43  vision four of section 27-1012 of the environmental conservation law and
    44  all funds collected pursuant to section  27-1015  of  the  environmental
    45  conservation  law,  all  moneys  required  to  be  deposited pursuant to
    46  section 27-2804 of the environmental conservation  law,  and  all  other
    47  moneys  credited  or  transferred  thereto from any other fund or source
    48  pursuant to law. All such revenue shall be initially deposited into  the
    49  environmental  protection  fund, for application as provided in subdivi-
    50  sion five of this section.
    51    (b) Moneys from the solid waste account shall be  available,  pursuant
    52  to appropriation and upon certificate of approval of availability by the
    53  director of the budget, for any non-hazardous municipal landfill closure
    54  project;  municipal  waste reduction or recycling project, as defined in
    55  article fifty-four  of  the  environmental  conservation  law;  for  the
    56  purposes  of  section  two  hundred  sixty-one  and  section two hundred

        S. 1508--B                         21
 
     1  sixty-four of the economic development law; any project for the develop-
     2  ment, updating or revision of local solid waste management plans  pursu-
     3  ant  to  sections  27-0107 and 27-0109 of the environmental conservation
     4  law;  environmental  justice projects and grants and for the development
     5  of the pesticide sales and use data base pursuant  to  title  twelve  of
     6  article  thirty-three  of  the  environmental conservation law; provided
     7  that all funds collected pursuant to title twenty-eight of article twen-
     8  ty-seven of the environmental conservation law shall be  made  available
     9  to  localities  for  the  purpose  of  pollution reduction, cleanup, and
    10  education, and purchasing and distributing reusable bags, with  priority
    11  given to low and fixed-income communities.
    12    §  5.  This  act  shall  take effect on the two hundred seventieth day
    13  after it shall have become a law.  Effective immediately  the  addition,
    14  amendment  and/or  repeal  of  any  rule or regulation necessary for the
    15  implementation of this act on its effective date are  authorized  to  be
    16  made on or before such date.
 
    17                                   PART I
 
    18                            Intentionally Omitted
 
    19                                   PART J
 
    20    Section  1.  Subdivisions  4  and 5 of section 24-0301 of the environ-
    21  mental conservation law, as amended by chapter 16 of the laws  of  2010,
    22  are amended to read as follows:
    23    4.  Upon  completion  of  the  tentative freshwater wetlands map for a
    24  particular area, the commissioner or his or her designated hearing offi-
    25  cer shall hold a public hearing in that  area  in  order  to  afford  an
    26  opportunity  for  any person to propose additions or deletions from such
    27  map. The commissioner shall give notice of such hearing to each owner of
    28  record as shown on the latest completed tax assessment rolls,  of  lands
    29  designated  as  such wetlands as shown on said map and also to the chief
    30  administrative officer and clerk of each  local  government  within  the
    31  boundaries  of  which  any  such wetland or a portion thereof is located
    32  and, in the case of a tentative freshwater wetlands  map  for  any  area
    33  within the Adirondack park, to the Adirondack park agency, [by certified
    34  mail]  not  less than thirty days prior to the date set for such hearing
    35  and shall assure that a copy of the relevant map is available for public
    36  inspection at a convenient location in such local  government.  The  map
    37  filed with a local government may, at the local government's request, be
    38  either  a physical copy of the tentative freshwater wetlands map, or, if
    39  available, a digital file that represents  it.  The  commissioner  shall
    40  also  cause  notice  of  such hearing to be published at least once, not
    41  more than thirty days nor fewer than ten days before the  date  set  for
    42  such  hearing,  in at least two newspapers having general circulation in
    43  the area where such wetlands are located. The commissioner may  post  on
    44  the  department's  website a digital image that represents the tentative
    45  freshwater wetlands map.
    46    5. After considering the testimony given at such hearing and any other
    47  facts which may be deemed pertinent, after  considering  the  rights  of
    48  affected  property  owners and the ecological balance in accordance with
    49  the policy and purposes of this article, and, in the case of wetlands or
    50  portions thereof within the Adirondack park, after consulting  with  the
    51  Adirondack  park  agency, the commissioner shall promulgate by order the
    52  final freshwater wetlands map. Such order shall not be promulgated  less

        S. 1508--B                         22
 
     1  than  sixty  days  from  the date of the hearing required by subdivision
     2  four of this section. A copy of the order, together with a copy of  such
     3  map  or  relevant  portion  thereof  shall be filed in the office of the
     4  clerk  of  each local government in which each such wetland or a portion
     5  thereof is located and, in the case of a map for  any  area  within  the
     6  Adirondack  park,  with the Adirondack park agency. The map filed with a
     7  local government may, at the local government's  request,  be  either  a
     8  physical  copy of the final freshwater wetlands map, or, if available, a
     9  digital file that represents it. The commissioner  shall  simultaneously
    10  give notice of such order to each owner of lands, as shown on the latest
    11  completed tax assessment rolls, designated as such wetlands by mailing a
    12  copy  of such order to such owner [by certified mail in any case where a
    13  notice by certified mail was not sent pursuant to  subdivision  four  of
    14  this  section,  and in all other cases by first class mail]. The commis-
    15  sioner shall also give notice of such order at such time  to  the  chief
    16  administrative officer of each local government within the boundaries of
    17  which  any  such wetland or a portion thereof is located. At the time of
    18  filing with such clerk or clerks, the commissioner shall  also  cause  a
    19  copy  of  such  order  to be published in at least two newspapers having
    20  general circulation in the area where such  wetlands  are  located.  The
    21  commissioner  may  post on the department's website a digital image that
    22  represents the final freshwater wetlands map.
    23    § 2. Subdivisions 3 and 4 of  section  25-0201  of  the  environmental
    24  conservation  law,  as  amended  by chapter 598 of the laws of 1976, are
    25  amended to read as follows:
    26    3. Upon completion of a tentative tidal wetlands boundary  map  for  a
    27  particular area, the commissioner or his or her designated hearing offi-
    28  cer  shall  hold  a public hearing in order to afford an opportunity for
    29  any person to propose additions or deletions from such map. The  commis-
    30  sioner  shall give notice of such hearing to each owner of record of all
    31  lands designated as such wetland as shown on such maps, and also to  the
    32  chief  administrative officer of each municipality within whose boundary
    33  any such wetland or portion thereof  is  located[,  by  certified  mail,
    34  return  receipt  requested,] not less than thirty days prior to the date
    35  set for such hearing. The commissioner shall also cause notice  of  such
    36  hearing to be published [at least once], not [more than thirty days nor]
    37  fewer than [ten] thirty days before the date set for such hearing, in at
    38  least two newspapers having a general circulation in the area where such
    39  wetlands are located.
    40    4. After considering the testimony given at such hearing and any other
    41  facts  which may be deemed pertinent and after considering the rights of
    42  affected property owners and the policy and purposes of  this  act,  the
    43  commissioner  shall  establish  by  order  the final bounds of each such
    44  wetland. A copy of the order, together with a copy of the map  depicting
    45  such  final boundary lines, shall be filed in the office of the clerk of
    46  the county in which each such wetland is located. The commissioner shall
    47  simultaneously give notice of such order to  each  owner  of  all  lands
    48  designated  as  such  wetlands  by  mailing a copy of such order to such
    49  owner. The commissioner shall also simultaneously give  notice  of  such
    50  order  [by  certified  mail] to the chief administrative officer of each
    51  municipality within whose boundary any such wetland or  portion  thereof
    52  is located. The commissioner shall also cause a copy of such order to be
    53  published in at least two newspapers having a general circulation in the
    54  area where such wetlands are located.
    55    § 3. This act shall take effect immediately.

        S. 1508--B                         23
 
     1                                   PART K
 
     2    Section  1.    Legislative  intent.  The legislature hereby finds that
     3  consumers in the state do not have ready access to information about the
     4  products they may use and the product ingredients they may be exposed to
     5  every day. While the state has taken steps to ban certain product ingre-
     6  dients known to be harmful to human health  and  the  environment,  more
     7  must  be  done  to give consumers real time access to product ingredient
     8  information  so  consumers  can  make  informed  decisions  about  which
     9  products  to  buy and use. Specifically, consumers should have the right
    10  to know if a product contains a carcinogen, mutagen or endocrine disrup-
    11  tors and other chemicals of  concern,  the  state,  as  trustee  of  its
    12  natural resources should have the means to identify substances which may
    13  be discharged to the environment.
    14    §  2.  Subdivision 1 of section 35-0103 of the environmental conserva-
    15  tion law is amended to read as follows:
    16    1.  "[Household  cleansing]  Cleansing  product"  means  any  product,
    17  including  but not limited to soaps and detergents, containing a surfac-
    18  tant as a wetting or dirt  emulsifying  agent  and  used  primarily  for
    19  domestic  [or],  commercial,  or industrial cleaning purposes, including
    20  but not limited to, the cleansing of fabrics, dishes, food utensils  and
    21  household and commercial premises. [Household cleansing] Cleansing prod-
    22  uct shall not mean foods, drugs, cosmetics, insecticides, fungicides and
    23  rodenticides or cleansing products used primarily in industrial manufac-
    24  turing,  production  and assembling processes as provided by the commis-
    25  sioner by rule and regulation.
    26    § 3. Section 35-0107 of the environmental conservation law is  amended
    27  to read as follows:
    28  § 35-0107. Powers and duties of commissioner.
    29    1.  The  commissioner  is  hereby authorized to promulgate regulations
    30  requiring manufacturers of [household] cleansing  products  distributed,
    31  sold  or  offered for sale in this state, to furnish to the commissioner
    32  for the public record as  herein  provided  information  regarding  such
    33  products  in  a form prescribed by the commissioner including the nature
    34  and extent of investigations and research performed by the  manufacturer
    35  concerning the effects of such products on human health and the environ-
    36  ment.  These  reports shall be available to the public at the department
    37  of environmental conservation, except those  portions  the  manufacturer
    38  determines,  subject  to  the approval of the commissioner, would be, if
    39  disclosed, seriously prejudicial to the manufacturer's legitimate inter-
    40  est in trade secrets and economics of operation.
    41    2. [No later than February 1, 1973 the commissioner shall prepare  and
    42  submit  a  comprehensive  report  to the governor and legislature on the
    43  status of progress made in research and development to  provide  a  safe
    44  and effective substitute for phosphates in household cleansing products.
    45    3.]  Whenever  the  commissioner  finds, after investigation, that any
    46  ingredient of [household] cleansing products distributed, sold,  offered
    47  or  exposed  for  sale in this state, other than an ingredient for which
    48  limitations are set forth in subdivision 2 of section 35-0105,  will  or
    49  is  likely  to  materially affect adversely human health or the environ-
    50  ment, he may, after public hearing, restrict or limit by regulation  the
    51  use of such ingredient in such products.
    52    §  4.  Article  37 of the environmental conservation law is amended by
    53  adding a new title 9 to read as follows:
    54                                  TITLE IX
    55                         CONSUMER PRODUCT DISCLOSURE

        S. 1508--B                         24
 
     1  Section 37-0901. Short title.
     2          37-0903. Definitions.
     3          37-0905. Product labeling.
     4          37-0907. Chemical disclosure.
     5          37-0909. Initial chemical exposure list.
     6          37-0911. Public education.
     7          37-0913. Rules and regulations.
     8          37-0915. Enforcement.
     9          37-0917. Severability.
    10  § 37-0901. Short title.
    11    This  title  shall be known and may be cited as the "consumer chemical
    12  awareness act".
    13  § 37-0903. Definitions.
    14    As used in this title, the following terms shall mean:
    15    1. "Consumer product" means any product sold or offered in the  state,
    16  including  but  not  limited  to  (a)  cleansing  products as defined by
    17  section 35-0103 of this chapter; (b) any product intended  for  use,  or
    18  that  may  be reasonably expected to be used, by children; (c) any other
    19  such product that could, through normal use,  expose  the  user  to  any
    20  carcinogen,  mutagen,  endocrine disruptor or other chemicals of concern
    21  identified by the department.
    22    2. "Manufacturer" means any person,  firm,  association,  partnership,
    23  limited  liability  company, corporation, governmental entity, organiza-
    24  tion, combination or joint venture which is the last entity  to  produce
    25  or  assemble  a consumer product or, in the case of an imported consumer
    26  product, the importer or domestic distributor of such product.
    27    3. "Retailer" means any person, firm, association, partnership, limit-
    28  ed liability company, corporation,  governmental  entity,  organization,
    29  combination  or  joint  venture  which  sells  or  otherwise distributes
    30  consumer products to consumers or to any  other  person  for  any  other
    31  purpose other than resale.
    32  § 37-0905. Product labeling.
    33    Except  where  prohibited by federal law, the department, in consulta-
    34  tion with the department of health and department of  state,  is  hereby
    35  authorized  to  establish  standards  governing the labeling of consumer
    36  products identified by  the  department  in  regulations  which  informs
    37  consumers  of the ingredients of such products including any carcinogen,
    38  mutagen, endocrine disrupter or other chemicals of concern identified by
    39  the department.
    40  § 37-0907. Chemical disclosure.
    41    The commissioner is hereby  authorized  to  require  manufacturers  of
    42  consumer  products  distributed, sold or offered for sale in this state,
    43  to furnish to the commissioner for the public record as herein  provided
    44  information  regarding such products in a form prescribed by the commis-
    45  sioner including the nature and extent of  investigations  and  research
    46  performed by the manufacturer concerning the effects of such products on
    47  human  health  and  the environment. These reports shall be available to
    48  the public at the department, except  those  portions  the  manufacturer
    49  determines,  subject  to  the approval of the commissioner, would be, if
    50  disclosed, seriously prejudicial to the manufacturer's legitimate inter-
    51  est in trade secrets and economics of operation.
    52  § 37-0909. Initial chemical disclosure list.
    53    The commissioner  shall  require  that  such  lists  of  chemicals  as
    54  required  pursuant  to section 37-0905 of this title include, at a mini-
    55  mum, all the substances:

        S. 1508--B                         25
 
     1    (a) on the list of "extremely hazardous substances" promulgated pursu-
     2  ant to the federal Emergency Planning and Community  Right-to-Know  Act,
     3  42 USC §11002(a)(2);
     4    (b)  on  the  list  of  "toxic  chemicals" promulgated pursuant to the
     5  federal Toxics Release Inventory Act, 42 USC §11023;
     6    (c) defined as a "hazardous substance" pursuant to the federal Compre-
     7  hensive Environmental Response, Compensation and Liability Act,  42  USC
     8  §9601;
     9    (d)  for  which  the United States Environmental Protection Agency has
    10  issued a chemical of concern action plan pursuant to the  federal  Toxic
    11  Substances Control Act, 15 USC §26;
    12    (e)  for which a health effect has been listed by the Agency for Toxic
    13  Substances and Disease Registry;
    14    (f) for which the United States Environmental  Protection  Agency  has
    15  published an emerging contaminants fact sheet; and
    16    (g)  on  the  lists  of  substances  hazardous or acutely hazardous to
    17  public health established by the department pursuant to this article.
    18  § 37-0911. Public education.
    19    The commissioner shall establish a public education program to dissem-
    20  inate information regarding implementation of this title. Such  informa-
    21  tion  may  include,  but  not  be limited to, publication of the website
    22  maintained by the state  where  information  required  to  be  disclosed
    23  pursuant  to  this  title is maintained; publication of a manufacturer's
    24  website where disclosure pursuant to this  title  is  effectuated;  and,
    25  requirements for retailers to post information in a conspicuous location
    26  for the benefit of consumers.
    27  § 37-0913. Rules and regulations.
    28    1.  The  department  is  authorized to promulgate such rules and regu-
    29  lations as it shall deem  necessary  to  implement  provisions  of  this
    30  title,  and shall designate in such rules specific consumer products and
    31  chemicals of concern that trigger the labeling and  disclosure  require-
    32  ments  of this title taking into account factors such as levels of expo-
    33  sure and the feasibility of requiring labeling for such products.
    34    2. Any regulations promulgated pursuant to  section  37-0905  of  this
    35  title  shall  specify  the content of such label and shall at a minimum,
    36  direct consumers to where they can find additional information about the
    37  product and its ingredients.
    38  § 37-0915. Enforcement.
    39    1. Any person who violates any of the provisions of or  who  fails  to
    40  perform any duty imposed by this title or any rule or regulation promul-
    41  gated pursuant hereto, shall be liable for a civil penalty not to exceed
    42  two  thousand  five hundred dollars for each such violation and an addi-
    43  tional penalty of not more than five hundred dollars for each day during
    44  which such violation continues.
    45  § 37-0917. Severability.
    46    The provisions of this title shall be severable  and  if  any  phrase,
    47  clause, sentence or provision of this title, or the applicability there-
    48  of to any person or circumstance shall be held invalid, the remainder of
    49  this title and the application thereof shall not be affected thereby.
    50    §  5. The public health law is amended by adding a new article 48-A to
    51  read as follows:
    52                                ARTICLE 48-A
    53                    REGULATION OF PERSONAL CARE PRODUCTS
    54  Section 4850. Declaration of legislative intent and findings.
    55          4851. Definitions.
    56          4852. Disclosure.

        S. 1508--B                         26
 
     1          4853. Penalties.
     2          4854. Severability.
     3    §  4850.  Declaration  of  legislative intent and findings.  There are
     4  tens of thousands of chemicals used commercially in the  United  States,
     5  and each year approximately one thousand chemicals are added for commer-
     6  cial  use.  The  majority  of  chemicals in commercial use in the United
     7  States, including those used as ingredients in personal  care  products,
     8  have  never  been  fully tested for potential impacts on human health or
     9  the environment.
    10    Some chemicals used in personal care  products  have  been  identified
    11  through  scientific studies as being potential carcinogens, reproductive
    12  or developmental toxicants, or endocrine disruptors. Some have also been
    13  found through biomonitoring studies to be present in human blood, breast
    14  milk, or urine. These findings have led national and international agen-
    15  cies to develop lists of chemicals of concern based  on  the  chemicals'
    16  potential  to  impact  human health, and their presence in products that
    17  consumers use everyday.
    18    Federal law requires personal care product labels to list ingredients.
    19  However, information concerning the potential health effects of exposure
    20  to these chemical ingredients is not widely available, chemicals used as
    21  fragrances or flavoring are  exempt  from  labelling  requirements,  and
    22  personal care products sold for commercial use are not required to carry
    23  any ingredient labelling. At present, the only way to identify a product
    24  as containing a chemical of concern is to compare labeled product ingre-
    25  dients with chemical lists developed by many different agencies.
    26    Furthermore,  independent  testing  and  laboratory  analyses by other
    27  states have identified  products  that  contain  substances  that  could
    28  potentially  cause harmful health effects but that are not identified as
    29  an ingredient on the product's label. Nevertheless,  under  the  federal
    30  Food,  Drug and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), many personal
    31  care products and their ingredients are not subject to premarket  safety
    32  testing, review, or approval before they are sold to the public.
    33    Therefore,  the legislature hereby finds and declares that the disclo-
    34  sures required under federal law of ingredients  contained  in  personal
    35  care  products  fail  to  adequately educate and protect consumers.   In
    36  order to empower consumers with the information needed to make  well-in-
    37  formed  decisions  regarding products that their families are exposed to
    38  daily, it shall be the policy of the state to require the personal  care
    39  product  industry  to  more fully disclose the ingredients they use and,
    40  where applicable, identify ingredients that have  been  published  as  a
    41  chemical of concern on one or more lists identified by the commissioner.
    42  This  will  benefit  consumers, encourage manufacturers to remove poten-
    43  tially harmful chemicals from their products, and encourage  development
    44  of  innovative methods including green chemistry to replace these ingre-
    45  dients with more environmentally-preferable alternatives.
    46    § 4851. Definitions. As used  in  this  article,  unless  the  context
    47  requires otherwise:
    48    1. "Ingredient" shall mean all of the following:
    49    (a)  An  intentionally added ingredient present in any quantity in the
    50  personal care product;
    51    (b) A nonfunctional byproduct or nonfunctional contaminant, present in
    52  a personal care product  in  any  quantity  exceeding  one-half  of  one
    53  percent  (0.5%)  of the content of the product by weight or other amount
    54  determined by the commissioner;
    55    (c) A nonfunctional byproduct present in a personal  care  product  in
    56  any quantity not exceeding one-half of one percent (0.5%) of the content

        S. 1508--B                         27
 
     1  of  the  product  by  weight, provided such element or compound has been
     2  published as a chemical of concern on one or more  lists  identified  by
     3  the commissioner;
     4    (d)  A nonfunctional contaminant present in a personal care product in
     5  a quantity determined by the commissioner and not exceeding one-half  of
     6  one  percent  (0.5%)  of  the content of the product by weight, provided
     7  such element or compound has been published as a chemical of concern  on
     8  one or more lists identified by the commissioner.
     9    2. "Intentionally added ingredient" shall mean any element or compound
    10  that  a manufacturer has intentionally added to a personal care product,
    11  and which has a functional or technical effect in the finished  product,
    12  including,  but  not  limited  to, the components of intentionally added
    13  fragrance,  flavoring  and  colorants,  and  the  intentional  breakdown
    14  products  of an added element or compound that also have a functional or
    15  technical effect on the finished product.
    16    3. "nonfunctional byproduct" shall mean any element or compound  which
    17  has  no functional or technical effect in the finished product which (a)
    18  was intentionally added during the manufacturing process for a  personal
    19  care  product  at any point in a product's, a raw material's or ingredi-
    20  ent's supply chain or (b) was created for formed during the  manufactur-
    21  ing  process as an intentional or unintentional consequence of the manu-
    22  facturing process at any point in a product's, a raw material's,  or  an
    23  ingredient's supply chain. This shall include, but is not limited to, an
    24  unreacted  raw  material,  a breakdown product of an intentionally added
    25  ingredient, or a byproduct of the manufacturing process.
    26    4. "Nonfunctional contaminant" shall  mean  any  element  or  compound
    27  present  in  a  personal care product as an unintentional consequence of
    28  manufacturing which  has  no  functional  or  technical  effect  in  the
    29  finished product. Nonfunctional contaminants include, but are not limit-
    30  ed  to, elements or compounds present in the environment as contaminants
    31  which were introduced into a product,  a  raw  material,  or  a  product
    32  ingredient  as a result of the use of an environmental medium, such as a
    33  naturally occurring mineral, air, soil or water,  in  the  manufacturing
    34  process  at  any  point in a product's, a raw material's, or an ingredi-
    35  ent's supply chain.
    36    5. "Manufacturer" shall mean any person, firm,  association,  partner-
    37  ship,   limited   liability  company,  or  corporation  which  produces,
    38  prepares, formulates, or compounds a personal  care  product,  or  whose
    39  brand  name  is affixed to such product.  In the case of a personal care
    40  product imported into the United States, "manufacturer" shall  mean  the
    41  importer or first domestic distributor of the product if the entity that
    42  manufactures  the  product or whose brand name is affixed to the product
    43  does not have a presence in the United States.
    44    6. "Personal care product" shall mean articles intended to be  rubbed,
    45  poured,  sprinkled, or sprayed on, introduced into, or otherwise applied
    46  to the human body  or  any  part  thereof  for  cleansing,  beautifying,
    47  promoting  attractiveness,  or  altering  the  appearance,  and articles
    48  intended for use as a component of any such articles; except  that  such
    49  term shall not include soap.
    50    7.  "Soap" shall mean articles comprised entirely of an alkali salt of
    51  fatty acids where the detergent properties of the article are due to the
    52  alkali-fatty acid compounds, and the article shall be labeled, sold, and
    53  represented only as a soap.
    54    §  4852.  Disclosure.  1.  Manufacturers  of  personal  care  products
    55  distributed,  sold  or offered for sale in this state, whether at retail
    56  or wholesale, for personal or commercial use, or distributed for  promo-

        S. 1508--B                         28

     1  tional purposes, shall furnish to the commissioner for public record and
     2  post  on  the  manufacturer's  website,  in  a  manner prescribed by the
     3  commissioner that is readily accessible to the public and machine  read-
     4  able,  such  information  regarding  such products pursuant to rules and
     5  regulations promulgated by the  commissioner.  For  each  personal  care
     6  product, such information shall include, but shall not be limited to:
     7    (a)  A  list  naming each ingredient, as defined in subdivision one of
     8  section forty-eight hundred fifty-one of this article, of the product in
     9  descending order of predominance by weight in the product,  except  that
    10  ingredients  present  at  a  weight below one percent (1%) may be listed
    11  following other ingredients without respect to the order of predominance
    12  by weight;
    13    (b) The nature and extent of investigations and research performed  by
    14  or  for  the manufacturer concerning the effects on human health and the
    15  environment of such product or such ingredients; and
    16    (c) Where applicable, a statement disclosing  that  an  ingredient  is
    17  published  as  a  chemical of concern on one or more lists identified by
    18  the commissioner. Such chemicals of concern identified  by  the  commis-
    19  sioner  and subject to the disclosure requirements of this section shall
    20  include, at a minimum, those substances identified in section 37-0909 of
    21  the environmental conservation law.
    22    2. Such manufacturers shall furnish  information  on  or  before  July
    23  first,  two thousand twenty and every two years thereafter. In addition,
    24  such manufacturers shall furnish such information prior to the  sale  of
    25  any  new  personal  care  product,  when  the formulation of a currently
    26  disclosed product is changed such that the predominance of the  ingredi-
    27  ents  in  such product is changed, when any list of chemicals of concern
    28  identified by the commissioner pursuant to this article  is  changed  to
    29  include an ingredient present in a personal care product subject to this
    30  article, or at such other times as may be required by the commissioner.
    31    3.  Such  information  shall  be  made  available to the public by the
    32  commissioner and manufacturer, in accordance with this section, with the
    33  exception of those portions which the manufacturer  determines,  subject
    34  to the approval of the commissioner, is related to a proprietary process
    35  the  disclosure of which would compromise the manufacturer's competitive
    36  position. The commissioner shall not approve any exceptions  under  this
    37  subdivision  with  respect  to any ingredient published as a chemical of
    38  concern on one or more lists identified by the commissioner.
    39    § 4853. Penalties. A manufacturer in  violation  of  this  article  is
    40  subject  to a civil penalty not to exceed five thousand dollars for each
    41  violation in the case of a first offense. Manufacturers who  are  repeat
    42  violators  are  subject  to  a  civil penalty not to exceed ten thousand
    43  dollars for each repeat offense.
    44    § 4854. Severability. The provisions of this article shall be  severa-
    45  ble and if any phrase, clause, sentence or provision of this article, or
    46  the  applicability  thereof  to any person or circumstance shall be held
    47  invalid, the remainder of this article and the application thereof shall
    48  not be affected thereby.
    49    § 6. This act shall take effect on the sixtieth  day  after  it  shall
    50  have  become  a  law,  provided,  however,  that  any rule or regulation
    51  promulgated pursuant to this act shall not take effect prior to April 1,
    52  2021; provided, however, that section five of this act shall take effect
    53  on January 1, 2020, provided that, effective  immediately,  the  commis-
    54  sioner of health shall be authorized to promulgate any and all rules and
    55  regulations necessary to implement the provisions of section five on its
    56  effective date.

        S. 1508--B                         29
 
     1                                   PART L
 
     2    Section  1. The banking law is amended by adding a new article 14-A to
     3  read as follows:
     4                                ARTICLE 14-A
     5                           STUDENT LOAN SERVICERS
     6  Section 710. Definitions.
     7          711. Licensing.
     8          712. Application for a student loan servicer license; fees.
     9          713. Application process to receive license  to  engage  in  the
    10                 business of student loan servicing.
    11          714. Changes in officers and directors.
    12          715. Changes in control.
    13          716. Grounds for suspension or revocation of license.
    14          717. Books and records; reports and electronic filing.
    15          718. Rules and regulations.
    16          719. Prohibited practices.
    17          720. Servicing student loans without a license.
    18          721. Responsibilities.
    19          722. Examinations.
    20          723. Penalties for violations of this article.
    21          724. Severability of provisions.
    22          725. Compliance with other laws.
    23    §  710. Definitions. 1. "Applicant" shall mean any person applying for
    24  a license under this article.
    25    2. "Borrower" shall mean any resident of this state who has received a
    26  student loan or agreed in writing to pay a student loan  or  any  person
    27  who  shares a legal obligation with such resident for repaying a student
    28  loan.
    29    3. "Borrower benefit" shall mean an incentive offered to a borrower in
    30  connection with the origination of a student  loan,  including  but  not
    31  limited  to  an interest rate reduction, principal rebate, fee waiver or
    32  rebate, loan cancellation, or cosigner release.
    33    4. "Exempt organization" shall mean any banking organization,  foreign
    34  banking corporation, national bank, federal savings association, federal
    35  credit union, or any bank, trust company, savings bank, savings and loan
    36  association,  or  credit  union  organized  under  the laws of any other
    37  state, or any person  licensed  or  supervised  by  the  department  and
    38  exempted  by  the  superintendent pursuant to regulations promulgated in
    39  accordance with this article.
    40    5. "Person"  shall  mean  any  individual,  association,  corporation,
    41  limited  liability company, partnership, trust, unincorporated organiza-
    42  tion, government, and any other entity.
    43    6. "Servicer" or "student loan servicer" shall mean a person  licensed
    44  pursuant  to  section  seven hundred eleven of this article to engage in
    45  the business of servicing student loans owed by one  or  more  borrowers
    46  residing in this state.
    47    7. "Servicing" shall mean:
    48    (a) receiving any payment from a borrower pursuant to the terms of any
    49  student loan;
    50    (b)  applying  any  payment  to the borrower's account pursuant to the
    51  terms of a student loan or the contract governing the servicing  of  any
    52  such loans;
    53    (c) providing any notification of amounts owed on a student loan by or
    54  on account of any borrower;

        S. 1508--B                         30
 
     1    (d) during a period where a borrower is not required to make a payment
     2  on  a student loan, maintaining account records for the student loan and
     3  communicating with the borrower regarding the student loan on behalf  of
     4  the owner of the student loan promissory note;
     5    (e)  interacting  with  a  borrower  with  respect to or regarding any
     6  attempt to avoid default on the borrower's student loan, or facilitating
     7  the activities described in paragraph (a) or (b) of this subdivision; or
     8    (f) performing other administrative services with respect to a borrow-
     9  er's student loan.
    10    8. "Student loan" shall mean any loan to a borrower to finance postse-
    11  condary education or expenses related to postsecondary education.
    12    § 711. Licensing. 1. No person shall engage in the business of servic-
    13  ing student loans owed by one or more borrowers residing in  this  state
    14  without  first  being  licensed  by the superintendent as a student loan
    15  servicer in accordance with this article and such regulations as may  be
    16  prescribed by the superintendent.
    17    2.  The  licensing  provisions  of this article shall not apply to any
    18  exempt organization that is a student loan servicer; provided that  such
    19  exempt  organization  notifies  the  superintendent that it is servicing
    20  student loans in this state and complies  with  sections  seven  hundred
    21  seventeen,  seven  hundred nineteen, seven hundred twenty-one, and seven
    22  hundred twenty-five of this article and  any  regulation  applicable  to
    23  student loan servicers promulgated by the superintendent.
    24    §  712. Application for a student loan servicer license; fees.  1. The
    25  application for a license to engage in the business of servicing student
    26  loans shall be in writing, under oath, and in the form prescribed by the
    27  superintendent. Notwithstanding article three of  the  state  technology
    28  law  or  any  other  law to the contrary, the superintendent may require
    29  that an application for a license or any other submission or application
    30  for approval as may be required by this article be made or  executed  by
    31  electronic means if he or she deems it necessary to ensure the efficient
    32  and  effective  administration  of  this  article. The application shall
    33  include a description of the activities of the applicant, in such detail
    34  and for such periods as the superintendent may require; including:
    35    (a) an affirmation of financial solvency  noting  such  capitalization
    36  requirements  as  may  be  required by the superintendent, and access to
    37  such credit as may be required by the superintendent;
    38    (b) a financial statement prepared by a certified  public  accountant,
    39  the  accuracy  of which is sworn to under oath before a notary public by
    40  an officer or other representative of the applicant who is authorized to
    41  execute such documents;
    42    (c) an affirmation that the applicant, or its members, officers, part-
    43  ners, directors and principals as may be appropriate, are at least twen-
    44  ty-one years of age;
    45    (d) information as to the character, fitness, financial  and  business
    46  responsibility,  background  and  experiences  of  the applicant, or its
    47  members, officers, partners, directors and principals as may  be  appro-
    48  priate;
    49    (e)  any  additional detail or information required by the superinten-
    50  dent.
    51    2. An application to become a licensed student loan  servicer  or  any
    52  application  with  respect  to  a  student loan servicer shall be accom-
    53  plished by a fee as prescribed pursuant to section  eighteen-a  of  this
    54  chapter.
    55    §  713.  Application process to receive license to engage in the busi-
    56  ness of student loan servicing. 1. Upon the filing of an application for

        S. 1508--B                         31
 
     1  a license, if the superintendent shall find that the financial responsi-
     2  bility, experience, character, and general fitness of the applicant and,
     3  if applicable, the members, officers, partners, directors and principals
     4  of  the applicant are such as to command the confidence of the community
     5  and to warrant belief that the business will be operated honestly, fair-
     6  ly, and efficiently within the purpose of this article, the  superinten-
     7  dent shall thereupon issue a license in duplicate to engage in the busi-
     8  ness  of  servicing student loans described in section seven hundred ten
     9  of this article in accordance with the provisions of  this  article.  If
    10  the superintendent shall not so find, the superintendent shall not issue
    11  a  license,  and  the  superintendent shall so notify the applicant. The
    12  superintendent shall transmit one copy of a license to the applicant and
    13  file another in the office of the department of financial services. Upon
    14  receipt of such license, a student loan servicer shall be authorized  to
    15  engage in the business of servicing student loans in accordance with the
    16  provisions  of this article. Such license shall remain in full force and
    17  effect until it is surrendered by the servicer or revoked  or  suspended
    18  as hereinafter provided.
    19    2.  The  superintendent may refuse to issue a license pursuant to this
    20  article if he or she shall find that the applicant, or any person who is
    21  a director, officer, partner, agent, employee,  member,  or  substantial
    22  stockholder of the applicant:
    23    (a)  has  been  convicted  of a crime involving an activity which is a
    24  felony under this chapter or under article one hundred  fifty-five,  one
    25  hundred  seventy, one hundred seventy-five, one hundred seventy-six, one
    26  hundred eighty, one hundred eighty-five, one hundred  eighty-seven,  one
    27  hundred  ninety, two hundred, two hundred ten or four hundred seventy of
    28  the penal law or any comparable felony under the laws of any other state
    29  of the United States, provided that such crime  would  be  a  felony  if
    30  committed and prosecuted under the laws of this state;
    31    (b) has had a license or registration revoked by the superintendent or
    32  any other regulator or jurisdiction;
    33    (c)  has  been  an  officer,  director, partner, member or substantial
    34  stockholder of an entity which has had a license or registration revoked
    35  by the superintendent or any other regulator or jurisdiction;
    36    (d) has been an agent, employee, officer, director, partner or  member
    37  of  an  entity  which  has  had a license or registration revoked by the
    38  superintendent where such person shall have been  found  by  the  super-
    39  intendent to bear responsibility in connection with the revocation; or
    40    (e)  lacks  the  good  moral  character and general fitness such as to
    41  warrant belief that the licensed  entity  would  be  operated  honestly,
    42  fairly, and efficiently within the purposes of this article.
    43    3.  The term "substantial stockholder", as used in this section, shall
    44  be deemed to refer to a person owning or controlling directly  or  indi-
    45  rectly ten per centum or more of the total outstanding stock of a corpo-
    46  ration.
    47    §  714.  Changes  in officers and directors. Upon any change of any of
    48  the executive officers, directors, partners or members  of  any  student
    49  loan servicer required to be licensed under section seven hundred eleven
    50  of  this  article,  the student loan servicer shall submit to the super-
    51  intendent the name, address, and occupation of each new officer,  direc-
    52  tor, partner or member, and provide such other information as the super-
    53  intendent may require.
    54    §  715.  Changes  in  control. 1. It shall be unlawful except with the
    55  prior approval of the superintendent for any action to  be  taken  which
    56  results  in a change of control of the business of a student loan servi-

        S. 1508--B                         32
 
     1  cer required to be licensed under section seven hundred eleven  of  this
     2  article.  Prior to any change of control, the person desirous of acquir-
     3  ing control of the business of a student loan servicer shall make  writ-
     4  ten  application  to  the superintendent and pay an investigation fee as
     5  prescribed pursuant to section eighteen-a of this chapter to the  super-
     6  intendent.  The application shall contain such information as the super-
     7  intendent, by rule or regulation, may prescribe as necessary  or  appro-
     8  priate   for  the  purpose  of  making  the  determination  required  by
     9  subdivision two of this section. This information shall include but  not
    10  be  limited to the information and other material required for a student
    11  loan servicer by subdivision one of section seven hundred twelve of this
    12  article.
    13    2. The superintendent shall approve or disapprove the proposed  change
    14  of  control  of  a  student  loan servicer required to be licensed under
    15  section seven hundred eleven of this  article  in  accordance  with  the
    16  provisions of section seven hundred thirteen of this article.
    17    3.  For  a period of six months from the date of qualification thereof
    18  and for such  additional  period  of  time  as  the  superintendent  may
    19  prescribe,  in  writing,  the  provisions of subdivisions one and two of
    20  this section shall not apply to a transfer of control  by  operation  of
    21  law  to the legal representative, as hereinafter defined, of one who has
    22  control of a student loan servicer.  Thereafter,  such  legal  represen-
    23  tative  shall  comply with the provisions of subdivisions one and two of
    24  this section. The provisions of subdivisions one and two of this section
    25  shall be applicable to an application made under such section by a legal
    26  representative. The term "legal representative",  for  the  purposes  of
    27  this  subdivision, shall mean one duly appointed by a court of competent
    28  jurisdiction to act  as  executor,  administrator,  trustee,  committee,
    29  conservator  or  receiver,  including one who succeeds a legal represen-
    30  tative and one acting in an ancillary  capacity  thereto  in  accordance
    31  with the provisions of such court appointment.
    32    4.  As  used  in this section the term "control" means the possession,
    33  directly or indirectly, of the power to direct or cause the direction of
    34  the management and policies of a student loan servicer, whether  through
    35  the  ownership of voting stock of such student loan servicer, the owner-
    36  ship of voting stock of any person which possesses such power or  other-
    37  wise.  Control  shall  be  presumed  to exist if any person, directly or
    38  indirectly, owns, controls or holds with power to vote ten per centum or
    39  more of the voting stock of any student loan servicer or of  any  person
    40  which  owns, controls or holds with power to vote ten per centum or more
    41  of the voting stock of any student loan servicer, but no person shall be
    42  deemed to control a student loan servicer solely by reason of  being  an
    43  officer  or  director  of such student loan servicer. The superintendent
    44  may in his or her discretion, upon the application  of  a  student  loan
    45  servicer  or  any  person who, directly or indirectly, owns, controls or
    46  holds with power to vote or seeks to own, control or hold with power  to
    47  vote  any  voting stock of such student loan servicer, determine whether
    48  or not the ownership, control or holding of such  voting  stock  consti-
    49  tutes  or  would  constitute  control  of such student loan servicer for
    50  purposes of this section.
    51    § 716. Grounds for suspension  or  revocation  of  license.  1.  After
    52  notice and hearing, the superintendent may revoke or suspend any license
    53  to  engage in the business of a student loan servicer issued pursuant to
    54  this article if he or she shall find that:

        S. 1508--B                         33
 
     1    (a) a servicer has violated any provision of this article, any rule or
     2  regulation promulgated  by  the  superintendent  under  and  within  the
     3  authority of this article, or any other applicable law;
     4    (b)  any fact or condition exists which, if it had existed at the time
     5  of the original application for such license, would have  warranted  the
     6  superintendent refusing originally to issue such license;
     7    (c) a servicer does not cooperate with an examination or investigation
     8  by the superintendent;
     9    (d)  a  servicer  engages  in fraud, intentional misrepresentation, or
    10  gross negligence in servicing a student loan;
    11    (e) the competence, experience, character, or general fitness  of  the
    12  servicer, an individual controlling, directly or indirectly, ten percent
    13  or  more  of  the  outstanding  interests, or any person responsible for
    14  servicing a student loan for the servicer indicates that it  is  not  in
    15  the public interest to permit the servicer to continue servicing student
    16  loans;
    17    (f) the servicer engages in an unsafe or unsound practice;
    18    (g) the servicer is insolvent, suspends payment of its obligations, or
    19  makes a general assignment for the benefit of its creditors; or
    20    (h) a servicer has violated the laws of this state, any other state or
    21  any  federal  law  involving fraudulent or dishonest dealing, or a final
    22  judgement has been entered against a student loan servicer  in  a  civil
    23  action upon grounds of fraud, misrepresentation or deceit.
    24    2.  The  superintendent  may, on good cause shown, or where there is a
    25  substantial risk of public harm, suspend any license for  a  period  not
    26  exceeding  thirty  days, pending investigation. "Good cause", as used in
    27  this subdivision, shall exist when a student loan servicer has defaulted
    28  or is likely to default  in  performing  its  financial  engagements  or
    29  engages  in  dishonest or inequitable practices which may cause substan-
    30  tial harm to the persons afforded the protection of this article.
    31    3. Except as provided in subdivision two of this section,  no  license
    32  shall  be  revoked or suspended except after notice and hearing thereon.
    33  Any order of suspension issued after notice and a hearing may include as
    34  a condition of reinstatement that the student loan servicer make  resti-
    35  tution  to consumers of fees or other charges which have been improperly
    36  charged or  collected,  including  but  not  limited  to  by  allocating
    37  payments contrary to a borrower's direction or in a manner that fails to
    38  help  a borrower avoid default, as determined by the superintendent. Any
    39  hearing held pursuant  to  the  provisions  of  this  section  shall  be
    40  noticed,  conducted and administered in compliance with the state admin-
    41  istrative procedure act.
    42    4. Any student loan servicer may surrender any license  by  delivering
    43  to  the  superintendent  written  notice that it thereby surrenders such
    44  license, but such surrender shall not affect such  servicer's  civil  or
    45  criminal  liability  for acts committed prior to such surrender. If such
    46  surrender is made after the issuance by the superintendent of  a  state-
    47  ment  of  charges  and notice of hearing, the superintendent may proceed
    48  against the servicer as if such surrender had not taken place.
    49    5. No revocation, suspension, or surrender of any license shall impair
    50  or affect the obligation of any pre-existing lawful contract between the
    51  student loan servicer and any person, including the department of finan-
    52  cial services.
    53    6. Every license issued pursuant to this article shall remain in force
    54  and effect until the  same  shall  have  been  surrendered,  revoked  or
    55  suspended in accordance with any other provisions of this article.

        S. 1508--B                         34
 
     1    7.  Whenever  the  superintendent  shall  revoke  or suspend a license
     2  issued pursuant to this article, he or she shall  forthwith  execute  in
     3  duplicate  a written order to that effect. The superintendent shall file
     4  one copy of such order in the office of the department and shall  forth-
     5  with serve the other copy upon the student loan servicer. Any such order
     6  may  be  reviewed in the manner provided by article seventy-eight of the
     7  civil practice law and rules.
     8    § 717. Books and records;  reports  and  electronic  filing.  1.  Each
     9  student  loan  servicer  shall  keep and use in its business such books,
    10  accounts and records as will  enable  the  superintendent  to  determine
    11  whether  such  servicer  or  exempt  organization  is complying with the
    12  provisions of this article and with the rules and  regulations  lawfully
    13  made  by  the  superintendent. Every servicer shall preserve such books,
    14  accounts, and records, for at least three years.
    15    2. (a) Each student loan servicer, other than an exempt  organization,
    16  shall  annually, on or before a date to be determined by the superinten-
    17  dent, file a report with the superintendent giving such  information  as
    18  the  superintendent  may  require concerning the business and operations
    19  during the preceding calendar year of such servicer under  authority  of
    20  this  article.  Such  report shall be subscribed and affirmed as true by
    21  the servicer under the penalties of perjury and shall  be  in  the  form
    22  prescribed by the superintendent.
    23    (b) In addition to annual reports, the superintendent may require such
    24  additional regular or special reports as he or she may deem necessary to
    25  the  proper  supervision  of  student loan servicers under this article.
    26  Such additional reports shall be subscribed and affirmed as true by  the
    27  servicer  under  the  penalties  of  perjury  and  shall  be in the form
    28  prescribed by the superintendent.
    29    3. Notwithstanding article three of the state technology  law  or  any
    30  other  law  to  the  contrary,  the  superintendent may require that any
    31  submission or approval as may be required by the superintendent be  made
    32  or  executed  by  electronic  means  if  he or she deems it necessary to
    33  ensure the efficient administration of this article.
    34    § 718. Rules and Regulations. 1. In addition to  such  powers  as  may
    35  otherwise  be prescribed by law, the superintendent is hereby authorized
    36  and empowered to promulgate such rules and regulations  as  may  in  the
    37  judgement  of the superintendent be consistent with the purposes of this
    38  article, or appropriate for the effective administration of  this  arti-
    39  cle, including, but not limited to:
    40    (a)  Such  rules  and regulations in connection with the activities of
    41  student loan servicers as may  be  necessary  and  appropriate  for  the
    42  protection of borrowers in this state.
    43    (b)  Such rules and regulations as may be necessary and appropriate to
    44  define unfair, deceptive or abusive acts or practices in connection with
    45  the activities of student loan servicers.
    46    (c) Such rules and regulations as may define the terms  used  in  this
    47  article  and as may be necessary and appropriate to interpret and imple-
    48  ment the provisions of this article.
    49    (d) Such rules and regulations as may be necessary for the enforcement
    50  of this article.
    51    2. The superintendent is hereby authorized and empowered to make  such
    52  specific  rulings,  demands  and findings as the superintendent may deem
    53  necessary for the proper conduct of the student loan servicing industry.
    54    § 719. Prohibited practices. No student loan servicer shall:
    55    1. Employ any scheme, device or  artifice  to  defraud  or  mislead  a
    56  borrower;

        S. 1508--B                         35
 
     1    2. Engage in any unfair, deceptive or predatory act or practice toward
     2  any   person  or  misrepresent  or  omit  any  material  information  in
     3  connection with the servicing of a  student  loan,  including,  but  not
     4  limited  to,  misrepresenting  the amount, nature or terms of any fee or
     5  payment due or claimed to be due on a student loan, the terms and condi-
     6  tions  of  the  loan  agreement  or the borrower's obligations under the
     7  loan;
     8    3. Misapply payments to the outstanding balance of any student loan or
     9  to any related interest or fees;
    10    4. Provide inaccurate information to a consumer reporting agency;
    11    5. Refuse to communicate with  an  authorized  representative  of  the
    12  borrower  who  provides  a written authorization signed by the borrower,
    13  provided that the servicer may adopt procedures  reasonably  related  to
    14  verifying that the representative is in fact authorized to act on behalf
    15  of the borrower;
    16    6. Make any false statement or make any omission of a material fact in
    17  connection  with  any  information  or reports filed with a governmental
    18  agency or in connection with any investigation conducted by  the  super-
    19  intendent or another governmental agency;
    20    7. Fail to respond within fifteen calendar days to communications from
    21  the  department,  or within such shorter, reasonable time as the depart-
    22  ment may request in his or her communication; or
    23    8. Fail to provide a  response  within  fifteen  calendar  days  to  a
    24  consumer  complaint  submitted  to  the  servicer  by the department. If
    25  necessary, a student loan servicer may request additional time up  to  a
    26  maximum  of  forty-five  calendar  days,  provided  that such request is
    27  accompanied by an explanation why such additional time is reasonable and
    28  necessary.
    29    § 720. Servicing student loans without a license. 1. Whenever, in  the
    30  opinion  of  the  superintendent, a person is engaged in the business of
    31  servicing student loans either actually or through subterfuge, without a
    32  license from the  superintendent,  the  superintendent  may  order  that
    33  person  to desist and refrain from engaging in the business of servicing
    34  student loans in the state. If, within thirty days  after  an  order  is
    35  served,  a  request for a hearing is filed in writing and the hearing is
    36  not held within sixty days of the filing, the order shall be rescinded.
    37    2. This section does not apply to exempt organizations.
    38    § 721. Responsibilities. 1.  If  a  student  loan  servicer  regularly
    39  reports  information  to a consumer reporting agency, the servicer shall
    40  accurately report a borrower's  payment  performance  to  at  least  one
    41  consumer reporting agency that compiles and maintains files on consumers
    42  on  a  nationwide basis as defined in Section 603(p) of the federal Fair
    43  Credit Reporting Act (15 U.S.C. Sec. 1681a(p)),  upon  acceptance  as  a
    44  data furnisher by that consumer reporting agency.
    45    2. (a) Except as provided in federal law or required by a student loan
    46  agreement,  a  student  loan servicer shall inquire of a borrower how to
    47  apply a borrower's nonconforming payment. A borrower's direction on  how
    48  to  apply  a nonconforming payment shall remain in effect for any future
    49  nonconforming payment during the  term  of  a  student  loan  until  the
    50  borrower provides different directions.
    51    (b)  For  purposes  of this subdivision, "nonconforming payment" shall
    52  mean a payment that is either more or less than the borrower's  required
    53  student loan payment.
    54    3.  (a) If the sale, assignment, or other transfer of the servicing of
    55  a student loan results in a change in the identity of the person to whom
    56  the borrower is required to  send  subsequent  payments  or  direct  any

        S. 1508--B                         36
 
     1  communications  concerning  the  student  loan,  a student loan servicer
     2  shall transfer  all  information  regarding  a  borrower,  a  borrower's
     3  account, and a borrower's student loan, including but not limited to the
     4  borrower's  repayment  status  and any borrower benefits associated with
     5  the borrower's student loan, to the new student loan servicer  servicing
     6  the borrower's student loan within forty-five days.
     7    (b)  A  student  loan  servicer shall adopt policies and procedures to
     8  verify that it has received all  information  regarding  a  borrower,  a
     9  borrower's  account,  and  a  borrower's student loan, including but not
    10  limited to the borrower's repayment status  and  any  borrower  benefits
    11  associated  with  the borrower's student loan, when the servicer obtains
    12  the right to service a student loan.
    13    4. If a student loan servicer sells, assigns, or  otherwise  transfers
    14  the  servicing of a student loan to a new servicer, the sale, assignment
    15  or other transfer shall be completed at  least  seven  days  before  the
    16  borrower's next payment is due.
    17    5.  (a)  A  student  loan  servicer  that sells, assigns, or otherwise
    18  transfers the servicing of a student loan shall require as  a  condition
    19  of  such  sale,  assignment  or other transfer that the new student loan
    20  servicer shall honor all borrower  benefits  originally  represented  as
    21  being  available  to a borrower during the repayment of the student loan
    22  and the possibility of such benefits, including any benefits  that  were
    23  represented  as  being  available but for which the borrower had not yet
    24  qualified.
    25    (b) A student loan servicer  that  obtains  the  right  to  service  a
    26  student loan shall honor all borrower benefits originally represented as
    27  being  available  to a borrower during the repayment of the student loan
    28  and the possibility of such benefits, including any benefits  that  were
    29  represented  as  being  available but for which the borrower had not yet
    30  qualified.
    31    6. A student loan servicer shall  respond  within  thirty  days  after
    32  receipt  to a written inquiry from a borrower or a borrower's authorized
    33  representative.
    34    7. A student loan servicer shall preserve records of each student loan
    35  and all communications with  borrowers  for  not  less  than  two  years
    36  following the final payment on such student loan or the sale, assignment
    37  or  other  transfer  of  the  servicing  of such student loan, whichever
    38  occurs first, or such longer period as may  be  required  by  any  other
    39  provision of law.
    40    §  722.  Examinations.  1.  The superintendent may at any time, and as
    41  often as he or she may determine, either personally or by a person  duly
    42  designated  by  the superintendent, investigate the business and examine
    43  the books, accounts, records, and files used therein  of  every  student
    44  loan  servicer.  For that purpose the superintendent and his or her duly
    45  designated representative shall have free  access  to  the  offices  and
    46  places  of  business, books, accounts, papers, records, files, safes and
    47  vaults of all such servicers. The superintendent  and  any  person  duly
    48  designated  by him or her shall have authority to require the attendance
    49  of and to examine under oath all persons whose testimony he or  she  may
    50  require relative to such business.
    51    2.  No  person  subject  to  investigation  or  examination under this
    52  section may knowingly withhold, abstract, remove, mutilate,  destroy  or
    53  secrete any books, records, computer records or other information.
    54    3.  The  expenses  incurred in making any examination pursuant to this
    55  section shall be assessed against and paid by the student loan  servicer
    56  so examined, except that travelling and subsistence expenses so incurred

        S. 1508--B                         37
 
     1  shall  be  charged  against and paid by servicers in such proportions as
     2  the superintendent shall deem just  and  reasonable,  and  such  propor-
     3  tionate  charges  shall be added to the assessment of the other expenses
     4  incurred  upon  each examination. Upon written notice by the superinten-
     5  dent of the total amount of such assessment, the servicer  shall  become
     6  liable for and shall pay such assessment to the superintendent.
     7    4. In any hearing in which a department employee acting under authori-
     8  ty  of  this  chapter  is  available for cross-examination, any official
     9  written report, worksheet, other related papers, or duly certified  copy
    10  thereof,  compiled, prepared, drafted, or otherwise made by said depart-
    11  ment employee, after being duly authenticated by said employee,  may  be
    12  admitted  as competent evidence upon the oath of said employee that said
    13  worksheet,  investigative  report,  or  other  related  documents   were
    14  prepared  as  a  result  of an examination of the books and records of a
    15  servicer or other person, conducted pursuant to the  authority  of  this
    16  chapter.
    17    5.  Unless  it is an exempt organization, affiliates of a student loan
    18  servicer are subject to examination by the superintendent  on  the  same
    19  terms  as the servicer, but only when reports from, or examination of, a
    20  servicer provides evidence of unlawful activity between a  servicer  and
    21  affiliate  benefitting,  affecting, or arising from the activities regu-
    22  lated by this article.
    23    § 723. Penalties for violation of this article. 1. In addition to such
    24  penalties as may otherwise be  applicable  by  law,  including  but  not
    25  limited  to  the  penalties  available  under section forty-four of this
    26  chapter, the superintendent may, after notice and hearing,  require  any
    27  person  found  violating  the provisions of this article or the rules or
    28  regulations promulgated hereunder to pay to the people of this  state  a
    29  penalty  for  each  violation of the article or any regulation or policy
    30  promulgated hereunder a sum not to exceed the greater of (i)  ten  thou-
    31  sand  dollars  for each offense; (ii) a multiple of two times the aggre-
    32  gate damages attributable to the violation; or (iii) a multiple  of  two
    33  times the aggregate economic gain attributable to the violation.
    34    2.  Nothing  in  this  article shall limit any statutory or common-law
    35  right of any person to bring any action in any court for any act, or the
    36  right of the state to punish any person for any violation of any law.
    37    § 724. Severability of provisions. If any provision of  this  article,
    38  or  the  application  of  such  provision to any person or circumstance,
    39  shall be held invalid, illegal or unenforceable, the  remainder  of  the
    40  article,  and  the  application  of such provision to persons or circum-
    41  stances other than those as to which it  is  held  invalid,  illegal  or
    42  unenforceable, shall not be affected thereby.
    43    §  725.  Compliance  with  other laws. 1. Student loan servicers shall
    44  engage in the business of servicing student loans in conformity with the
    45  provisions of the financial services law, this chapter, such  rules  and
    46  regulations  as  may be promulgated by the superintendent thereunder and
    47  all applicable federal laws and the rules  and  regulations  promulgated
    48  thereunder.
    49    2.  Nothing  in this section shall be construed to limit any otherwise
    50  applicable state or federal law or regulations.
    51    § 2. Subdivision 10 of section 36 of the banking law,  as  amended  by
    52  chapter 182 of the laws of 2011, is amended to read as follows:
    53    10. All reports of examinations and investigations, correspondence and
    54  memoranda  concerning  or  arising  out of such examination and investi-
    55  gations, including any duly authenticated copy or copies thereof in  the
    56  possession  of  any  banking  organization,  bank holding company or any

        S. 1508--B                         38
 
     1  subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
     2  iary"  are  defined in article three-A of this chapter), any corporation
     3  or any other entity affiliated with a banking  organization  within  the
     4  meaning  of  subdivision six of this section and any non-banking subsid-
     5  iary of a corporation or any other entity which is  an  affiliate  of  a
     6  banking  organization  within  the  meaning of subdivision six-a of this
     7  section, foreign banking corporation, licensed lender,  licensed  casher
     8  of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
     9  licensed mortgage  loan  originator,  licensed  sales  finance  company,
    10  registered  mortgage  loan  servicer,  licensed  student  loan servicer,
    11  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    12  money,  licensed  budget  planner, any other person or entity subject to
    13  supervision under this chapter, or the department, shall be confidential
    14  communications, shall not be subject to subpoena and shall not  be  made
    15  public  unless,  in  the  judgment  of  the  superintendent, the ends of
    16  justice and the public advantage will be subserved  by  the  publication
    17  thereof,  in which event the superintendent may publish or authorize the
    18  publication of a copy of any such report or any  part  thereof  in  such
    19  manner  as may be deemed proper or unless such laws specifically author-
    20  ize such disclosure. For the purposes of this subdivision,  "reports  of
    21  examinations  and  investigations,  and any correspondence and memoranda
    22  concerning or arising out  of  such  examinations  and  investigations",
    23  includes any such materials of a bank, insurance or securities regulato-
    24  ry  agency  or  any unit of the federal government or that of this state
    25  any other state or that of any foreign government which  are  considered
    26  confidential  by  such agency or unit and which are in the possession of
    27  the department or which are otherwise confidential materials  that  have
    28  been  shared  by  the department with any such agency or unit and are in
    29  the possession of such agency or unit.
    30    § 3. Section 39 of the banking law, as amended by section 1 of part FF
    31  of chapter 59 of the laws of 2004, subdivisions 1, 2 and 5 as amended by
    32  chapter 123 of the laws of 2009, subdivision 3 as amended by chapter 155
    33  of the laws of 2012 and subdivision 6 as amended by chapter 217  of  the
    34  laws of 2010, is amended to read as follows:
    35    § 39.  Orders  of superintendent. 1. To appear and explain an apparent
    36  violation. Whenever it shall appear to the superintendent that any bank-
    37  ing organization, bank  holding  company,  registered  mortgage  broker,
    38  licensed  mortgage  banker,  licensed  student load servicer, registered
    39  mortgage loan servicer,  licensed  mortgage  loan  originator,  licensed
    40  lender,  licensed  casher  of  checks,  licensed  sales finance company,
    41  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    42  money, licensed budget planner, out-of-state state bank that maintains a
    43  branch  or branches or representative or other offices in this state, or
    44  foreign banking corporation licensed by the superintendent to  do  busi-
    45  ness  or maintain a representative office in this state has violated any
    46  law or regulation, he or she may, in his or  her  discretion,  issue  an
    47  order  describing  such  apparent  violation  and requiring such banking
    48  organization, bank holding company, registered mortgage broker, licensed
    49  mortgage banker, licensed student loan servicer, licensed mortgage  loan
    50  originator,  licensed  lender, licensed casher of checks, licensed sales
    51  finance company, licensed insurance  premium  finance  agency,  licensed
    52  transmitter  of  money, licensed budget planner, out-of-state state bank
    53  that maintains a branch or branches or representative or  other  offices
    54  in  this  state,  or foreign banking corporation to appear before him or
    55  her, at a time and place fixed in said order, to present an  explanation
    56  of such apparent violation.

        S. 1508--B                         39
 
     1    2.  To discontinue unauthorized or unsafe and unsound practices. When-
     2  ever it shall appear to the superintendent that  any  banking  organiza-
     3  tion,  bank  holding company, registered mortgage broker, licensed mort-
     4  gage banker, licensed student loan servicer,  registered  mortgage  loan
     5  servicer,  licensed  mortgage loan originator, licensed lender, licensed
     6  casher of checks, licensed sales  finance  company,  licensed  insurance
     7  premium  finance  agency, licensed transmitter of money, licensed budget
     8  planner, out-of-state state bank that maintains a branch or branches  or
     9  representative or other offices in this state, or foreign banking corpo-
    10  ration  licensed  by  the superintendent to do business in this state is
    11  conducting business in an unauthorized or unsafe and unsound manner,  he
    12  or  she  may,  in  his  or  her discretion, issue an order directing the
    13  discontinuance of such unauthorized or unsafe and unsound practices, and
    14  fixing a time and place at which such banking organization, bank holding
    15  company, registered mortgage broker, licensed mortgage banker,  licensed
    16  student loan servicer, registered mortgage loan servicer, licensed mort-
    17  gage  loan  originator,  licensed  lender,  licensed  casher  of checks,
    18  licensed sales finance company, licensed insurance premium finance agen-
    19  cy, licensed transmitter of money, licensed budget planner, out-of-state
    20  state bank that maintains a branch  or  branches  or  representative  or
    21  other  offices  in this state, or foreign banking corporation may volun-
    22  tarily appear before him or her to present any explanation in defense of
    23  the practices directed in said order to be discontinued.
    24    3. To make good impairment of capital or  to  ensure  compliance  with
    25  financial  requirements.  Whenever it shall appear to the superintendent
    26  that the capital or capital stock  of  any  banking  organization,  bank
    27  holding  company  or any subsidiary thereof which is organized, licensed
    28  or registered pursuant to this chapter, is impaired,  or  the  financial
    29  requirements  imposed by subdivision one of section two hundred two-b of
    30  this chapter or any regulation of the superintendent on  any  branch  or
    31  agency  of  a  foreign banking corporation or the financial requirements
    32  imposed by this chapter or any regulation of the superintendent  on  any
    33  licensed  lender,  registered mortgage broker, licensed mortgage banker,
    34  licensed student loan servicer,  licensed  casher  of  checks,  licensed
    35  sales  finance  company,  licensed  insurance  premium  finance  agency,
    36  licensed transmitter of money, licensed budget planner or private banker
    37  are not satisfied,  the  superintendent  may,  in  the  superintendent's
    38  discretion,  issue  an  order  directing that such banking organization,
    39  bank holding company, branch or agency of a foreign banking corporation,
    40  registered mortgage broker, licensed mortgage banker,  licensed  student
    41  loan  servicer,  licensed  lender,  licensed  casher of checks, licensed
    42  sales  finance  company,  licensed  insurance  premium  finance  agency,
    43  licensed transmitter of money, licensed budget planner, or private bank-
    44  er  make  good  such  deficiency forthwith or within a time specified in
    45  such order.
    46    4. To make good encroachments on reserves. Whenever it shall appear to
    47  the superintendent that either the total reserves or reserves on hand of
    48  any banking organization, branch or agency of a foreign  banking  corpo-
    49  ration  are  below the amount required by or pursuant to this chapter or
    50  any other applicable provision of law or regulation to be maintained, or
    51  that such banking organization, branch or agency of  a  foreign  banking
    52  corporation  is  not  keeping  its  reserves on hand as required by this
    53  chapter or any other applicable provision of law or  regulation,  he  or
    54  she  may,  in  his or her discretion, issue an order directing that such
    55  banking organization, branch or agency of a foreign banking  corporation

        S. 1508--B                         40
 
     1  make  good  such  reserves  forthwith or within a time specified in such
     2  order, or that it keep its reserves on hand as required by this chapter.
     3    5.  To keep books and accounts as prescribed. Whenever it shall appear
     4  to the superintendent that any banking organization, bank holding compa-
     5  ny, registered  mortgage  broker,  licensed  mortgage  banker,  licensed
     6  student loan servicer, registered mortgage loan servicer, licensed mort-
     7  gage  loan  originator,  licensed  lender,  licensed  casher  of checks,
     8  licensed sales finance company, licensed insurance premium finance agen-
     9  cy, licensed transmitter of money, licensed budget  planner,  agency  or
    10  branch  of  a foreign banking corporation licensed by the superintendent
    11  to do business in this state, does not keep its books  and  accounts  in
    12  such manner as to enable him or her to readily ascertain its true condi-
    13  tion,  he or she may, in his or her discretion, issue an order requiring
    14  such banking organization, bank  holding  company,  registered  mortgage
    15  broker, licensed mortgage banker, licensed student loan servicer, regis-
    16  tered   mortgage  loan  servicer,  licensed  mortgage  loan  originator,
    17  licensed lender, licensed  casher  of  checks,  licensed  sales  finance
    18  company, licensed insurance premium finance agency, licensed transmitter
    19  of  money,  licensed  budget planner, or foreign banking corporation, or
    20  the officers or agents thereof, or any of them, to open  and  keep  such
    21  books  or accounts as he or she may, in his or her discretion, determine
    22  and prescribe for the purpose of keeping accurate and convenient records
    23  of its transactions and accounts.
    24    6. As used in this section, "bank holding company" shall have the same
    25  meaning as that term is defined in section one hundred forty-one of this
    26  chapter.
    27    § 4. Paragraph (a) of subdivision 1 of section 44 of the banking  law,
    28  as  amended  by  chapter  155 of the laws of 2012, is amended to read as
    29  follows:
    30    (a) Without limiting any power granted to the superintendent under any
    31  other provision of this chapter, the superintendent may, in a proceeding
    32  after notice and a hearing, require any safe deposit  company,  licensed
    33  lender,  licensed  casher  of  checks,  licensed  sales finance company,
    34  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    35  money,  licensed mortgage banker, licensed student loan servicer, regis-
    36  tered mortgage broker, licensed  mortgage  loan  originator,  registered
    37  mortgage  loan  servicer or licensed budget planner to pay to the people
    38  of this state a penalty for any violation of  this  chapter,  any  regu-
    39  lation  promulgated  thereunder,  any  final  or  temporary order issued
    40  pursuant to section thirty-nine of this article, any  condition  imposed
    41  in  writing  by  the  superintendent in connection with the grant of any
    42  application or request, or any written agreement entered into  with  the
    43  superintendent.
    44    § 5. This act shall take effect on the one hundred eightieth day after
    45  it shall have become a law.
 
    46                                   PART M
 
    47    Section  1.  Section  2  of  part FF of chapter 55 of the laws of 2017
    48  relating to motor vehicles equipped with autonomous vehicle  technology,
    49  as  amended by section 2 of part H of chapter 58 of the laws of 2018, is
    50  amended to read as follows:
    51    § 2. The commissioner of motor vehicles shall,  in  consultation  with
    52  the superintendent of state police, submit a report to the governor, the
    53  temporary  president of the senate, the speaker of the assembly, and the
    54  chairs of the senate  and  assembly  transportation  committees  on  the

        S. 1508--B                         41
 
     1  demonstrations  and  tests  authorized  by section one of this act. Such
     2  report shall include, but not be limited to, a description of the param-
     3  eters and purpose of such demonstrations  and  tests,  the  location  or
     4  locations  where  demonstrations  and  tests  were conducted, the demon-
     5  strations' and  tests'  impacts  on  safety,  traffic  control,  traffic
     6  enforcement,  emergency services, and such other areas as may be identi-
     7  fied by such commissioner. Such commissioner shall  submit  such  report
     8  [on  or  before  June  1, 2018 and June 1, 2019] June first of each year
     9  this section remains in effect.
    10    § 2. Section 3 of part FF of chapter 55 of the laws of  2017  relating
    11  to  motor  vehicles  equipped  with  autonomous  vehicle  technology, as
    12  amended by section 3 of part H of chapter 58 of the  laws  of  2018,  is
    13  amended to read as follows:
    14    § 3. This act shall take effect April 1, 2017; provided, however, that
    15  section  one  of  this  act shall expire and be deemed repealed April 1,
    16  [2019] 2021.
    17    § 3. a. The New York state commissioner of motor vehicles may  approve
    18  demonstrations  and tests consisting of the operation of a motor vehicle
    19  equipped with autonomous vehicle technology while such motor vehicle  is
    20  engaged  in  the  use  of such technology on public highways within this
    21  state for the purposes of demonstrating and assessing the current devel-
    22  opment of autonomous vehicle technology and to begin identifying  poten-
    23  tial  impacts  of  such  technology  on safety, traffic control, traffic
    24  enforcement, emergency services, and such other areas as may be  identi-
    25  fied  by  such  commissioner.  Such  demonstrations and tests shall take
    26  place in a manner and form prescribed by the commissioner of motor vehi-
    27  cles including, but not limited to: a requirement that the motor vehicle
    28  utilized in such demonstrations and tests bears the required manufactur-
    29  er's certification label indicating that, at the time  of  its  manufac-
    30  ture,  it  has  been certified in compliance with all applicable federal
    31  motor  vehicle  safety  standards  and  New  York  state  motor  vehicle
    32  inspection  standards; and a requirement that the motor vehicle utilized
    33  in such demonstrations and tests has in place, at a  minimum,  financial
    34  security  in  the  amount  of  five million dollars. Nothing in this act
    35  shall authorize the motor vehicle utilized in  such  demonstrations  and
    36  tests  to  operate  in violation of article 22 or title 7 of the vehicle
    37  and traffic law, excluding section 1226 of such law.
    38    b. For the purposes of this  section,  the  term  "autonomous  vehicle
    39  technology"  shall  mean the hardware and software that are collectively
    40  capable of performing part or all of  the  dynamic  driving  task  on  a
    41  sustained  basis,  and the term "dynamic driving task" shall mean all of
    42  the real-time operational and tactical functions required to  operate  a
    43  vehicle  in  on-road  traffic, excluding the strategic functions such as
    44  trip scheduling and selection of destinations and waypoints.
    45    § 4. The commissioner of motor vehicles shall,  in  consultation  with
    46  the superintendent of state police, submit a report to the governor, the
    47  temporary  president of the senate, the speaker of the assembly, and the
    48  chairs of the senate  and  assembly  transportation  committees  on  the
    49  demonstrations  and  tests authorized by section three of this act. Such
    50  report shall include, but not be limited to, a description of the param-
    51  eters and purpose of such demonstrations  and  tests,  the  location  or
    52  locations  where  demonstrations  and  tests  were conducted, the demon-
    53  strations' and  tests'  impacts  on  safety,  traffic  control,  traffic
    54  enforcement,  emergency  services,  the commissioner's plan for ensuring
    55  enforcement of driving regulations on motor vehicles when engaged in the
    56  use of autonomous vehicle technology, a record  of  all  private  sector

        S. 1508--B                         42
 
     1  investments  made  in  the  state  of  New York relating to research and
     2  development of autonomous vehicle technology within one  year  preceding
     3  the date of the report, a record of investments made by the state of New
     4  York relating to research and development of autonomous vehicle technol-
     5  ogy  within  one  year  preceding the date of the report, and such other
     6  areas as may be identified by such commissioner. The commissioner  shall
     7  submit such report on or before June first of each year.
     8    §  5. Section 1226 of the vehicle and traffic law, as amended by chap-
     9  ter 506 of the laws of 1971, is amended to read as follows:
    10    § 1226. Control of steering mechanism. No person shall operate a motor
    11  vehicle without having at least one hand or, in the case of a physically
    12  handicapped person, at least one prosthetic device or aid on the  steer-
    13  ing  mechanism at all times when the motor vehicle is in motion unless a
    14  driving automation system, as  defined  in  SAE  J3016  as  periodically
    15  revised, is engaged to perform steering function.
    16    §  6.  The  commissioner  of  motor vehicles and the superintendent of
    17  financial services shall establish regulations consistent with this act.
    18    § 7. This act shall take effect immediately; provided,  however,  that
    19  section  three  of  this  act shall take effect April 1, 2021; provided,
    20  further, that section five of this act shall take effect on the first of
    21  November next succeeding the date on which it shall have  become  a  law
    22  and shall apply to violations committed on and after such date.
 
    23                                   PART N
 
    24    Section  1. Section 6 of chapter 713 of the laws of 1988, amending the
    25  vehicle and traffic  law  relating  to  the  ignition  interlock  device
    26  program, as amended by section 14 of part A of chapter 55 of the laws of
    27  2017, is amended to read as follows:
    28    §  6.  This  act  shall  take  effect  on  the first day of April next
    29  succeeding the date on which it  shall  have  become  a  law;  provided,
    30  however,  that  effective immediately, the addition, amendment or repeal
    31  of any rule or regulation necessary for the implementation of the  fore-
    32  going  sections  of  this  act on their effective date is authorized and
    33  directed to be made and completed on or before such effective  date  and
    34  shall  remain in full force and effect until the first day of September,
    35  [2019] 2021 when upon such date the provisions  of  this  act  shall  be
    36  deemed repealed.
    37    § 2. This act shall take effect immediately.
 
    38                                   PART O
 
    39    Section  1.  Subdivision (p) of section 406 of chapter 166 of the laws
    40  of 1991, amending the tax law and  other  laws  relating  to  taxes,  as
    41  amended  by  section  12 of part A of chapter 55 of the laws of 2017, is
    42  amended to read as follows:
    43    (p) The amendments to section 1809 of the vehicle and traffic law made
    44  by sections three hundred thirty-seven and three hundred thirty-eight of
    45  this act shall not apply to any offense committed prior to  such  effec-
    46  tive  date;  provided,  further, that section three hundred forty-one of
    47  this act shall take effect immediately and shall expire November 1, 1993
    48  at which time it  shall  be  deemed  repealed;  sections  three  hundred
    49  forty-five  and  three  hundred  forty-six of this act shall take effect
    50  July 1, 1991; sections three hundred fifty-five,  three  hundred  fifty-
    51  six,  three hundred fifty-seven and three hundred fifty-nine of this act
    52  shall take effect immediately and shall expire June 30, 1995  and  shall

        S. 1508--B                         43
 
     1  revert to and be read as if this act had not been enacted; section three
     2  hundred  fifty-eight of this act shall take effect immediately and shall
     3  expire June 30, 1998 and shall revert to and be read as if this act  had
     4  not been enacted; section three hundred sixty-four through three hundred
     5  sixty-seven  of  this  act  shall apply to claims filed on or after such
     6  effective date; sections three hundred sixty-nine, three hundred  seven-
     7  ty-two,  three  hundred seventy-three, three hundred seventy-four, three
     8  hundred seventy-five and three hundred seventy-six  of  this  act  shall
     9  remain  in  effect  until  September  1, [2019] 2021, at which time they
    10  shall  be  deemed  repealed;  provided,  however,  that  the   mandatory
    11  surcharge  provided  in  section  three hundred seventy-four of this act
    12  shall apply to parking violations occurring on or after  said  effective
    13  date;  and  provided  further that the amendments made to section 235 of
    14  the vehicle and traffic law by section three hundred seventy-two of this
    15  act, the amendments made to section 1809 of the vehicle and traffic  law
    16  by sections three hundred thirty-seven and three hundred thirty-eight of
    17  this  act  and  the amendments made to section 215-a of the labor law by
    18  section three hundred seventy-five of this act shall expire on September
    19  1, [2019] 2021 and upon such date the provisions  of  such  subdivisions
    20  and  sections  shall  revert to and be read as if the provisions of this
    21  act had not been enacted; the amendments to  subdivisions  2  and  3  of
    22  section  400.05 of the penal law made by sections three hundred seventy-
    23  seven and three hundred seventy-eight of this act shall expire  on  July
    24  1,  1992  and  upon  such date the provisions of such subdivisions shall
    25  revert and shall be read as if the provisions of this act had  not  been
    26  enacted;  the  state board of law examiners shall take such action as is
    27  necessary to assure that all applicants for examination for admission to
    28  practice as an attorney and counsellor at law shall  pay  the  increased
    29  examination fee provided for by the amendment made to section 465 of the
    30  judiciary  law by section three hundred eighty of this act for any exam-
    31  ination given on or after the effective date of this act notwithstanding
    32  that an applicant for such examination may have prepaid a lesser fee for
    33  such examination as required by the provisions of such section 465 as of
    34  the date prior to the effective date of  this  act;  the  provisions  of
    35  section  306-a  of  the civil practice law and rules as added by section
    36  three hundred eighty-one of this act shall apply to all actions  pending
    37  on  or  commenced on or after September 1, 1991, provided, however, that
    38  for the purposes of this section service of such summons made  prior  to
    39  such  date  shall be deemed to have been completed on September 1, 1991;
    40  the provisions of section three hundred eighty-three of this  act  shall
    41  apply  to  all  money  deposited  in  connection  with  a cash bail or a
    42  partially secured bail bond on or after such  effective  date;  and  the
    43  provisions  of  sections  three  hundred  eighty-four  and three hundred
    44  eighty-five of this act shall  apply  only  to  jury  service  commenced
    45  during  a judicial term beginning on or after the effective date of this
    46  act; provided, however, that nothing contained herein shall be deemed to
    47  affect the application,  qualification,  expiration  or  repeal  of  any
    48  provision  of law amended by any section of this act and such provisions
    49  shall be applied or qualified or shall expire or be deemed  repealed  in
    50  the same manner, to the same extent and on the same date as the case may
    51  be as otherwise provided by law;
    52    §  2. Subdivision 8 of section 1809 of the vehicle and traffic law, as
    53  amended by section 13 of part A of chapter 55 of the laws  of  2017,  is
    54  amended to read as follows:
    55    8. The provisions of this section shall only apply to offenses commit-
    56  ted on or before September first, two thousand [nineteen] twenty-one.

        S. 1508--B                         44
 
     1    § 3. This act shall take effect immediately.
 
     2                                   PART P
 
     3                            Intentionally Omitted
 
     4                                   PART Q

     5                            Intentionally Omitted
 
     6                                   PART R
 
     7    Section  1.  Section 2 of chapter 21 of the laws of 2003, amending the
     8  executive law relating to permitting the secretary of state  to  provide
     9  special  handling  for  all documents filed or issued by the division of
    10  corporations and to permit additional levels of such expedited  service,
    11  as  amended by section 1 of part S of chapter 58 of the laws of 2018, is
    12  amended to read as follows:
    13    § 2. This act shall take effect immediately,  provided  however,  that
    14  section  one  of this act shall be deemed to have been in full force and
    15  effect on and after April 1, 2003 and shall expire  March  31,  [2019]
    16  2020.
    17    §  2.  This  act  shall take effect immediately and shall be deemed to
    18  have been in full force and effect on and after March 31, 2019.

    19                                   PART S
 
    20                            Intentionally Omitted
 
    21                                   PART T
 
    22    Section 1. Intentionally omitted.
    23    § 2. Intentionally omitted.
    24    § 3. Intentionally omitted.
    25    § 4. Intentionally omitted.
    26    § 5. The transportation law is amended by adding a new section 144  to
    27  read as follows:
    28    §  144.  Fees  and  charges. The commissioner or authorized officer or
    29  employee of the department shall charge and collect one  hundred  twenty
    30  dollars  for  the inspection or reinspection of all for-hire motor vehi-
    31  cles transporting passengers  subject  to  the  department's  inspection
    32  requirements  pursuant  to  section  one  hundred forty of this article,
    33  except such motor vehicles operated under contract with  a  municipality
    34  to  provide  statewide mass transportation operating assistance eligible
    35  service; vehicles operated under contract with a municipality or  school
    36  district  to  provide  school-related  transportation services; or motor
    37  vehicles authorized by the commissioner of health to  provide  non-emer-
    38  gency   medical   transportation   services.  The  department  may  deny
    39  inspection of any motor vehicle transporting passengers subject  to  the
    40  department's  inspection  requirements  if  such  fee is not paid within
    41  ninety days of the date noted on the department invoice.
    42    § 6. Intentionally omitted.
    43    § 7. Intentionally omitted.
    44    § 8. Intentionally omitted.
    45    § 9. Intentionally omitted.
    46    § 10. Intentionally omitted.

        S. 1508--B                         45
 
     1    § 11. Intentionally omitted.
     2    § 12. Intentionally omitted.
     3    § 13. Intentionally omitted.
     4    § 14. Intentionally omitted.
     5    § 15. Intentionally omitted.
     6    §  16. Subdivision 3 of section 1229-c of the vehicle and traffic law,
     7  as added by chapter 365 of the laws of  1984,  is  amended  to  read  as
     8  follows:
     9    3.  No  person  shall  operate  a  motor vehicle unless such person is
    10  restrained by a safety belt approved  by  the  commissioner.  No  person
    11  sixteen years of age or over shall be a passenger in [the front seat of]
    12  a  motor  vehicle  unless  such  person  is  restrained by a safety belt
    13  approved by the commissioner.
    14    § 17. Intentionally omitted.
    15    § 18. This act  shall  take  effect  immediately;  provided,  however,
    16  section five of this act shall take effect October 1, 2019.
 
    17                                   PART U
 
    18    Section  1.  Expenditures  of  moneys appropriated in a chapter of the
    19  laws of 2019 to the department  of  agriculture  and  markets  from  the
    20  special  revenue  funds-other/state  operations,  miscellaneous  special
    21  revenue fund-339,  public  service  account  shall  be  subject  to  the
    22  provisions  of  this section. Notwithstanding any other provision of law
    23  to the contrary, direct and indirect expenses relating to the department
    24  of  agriculture  and  markets'  participation  in   general   ratemaking
    25  proceedings  pursuant to section 65 of the public service law or certif-
    26  ication proceedings pursuant to article 7 or 10 of  the  public  service
    27  law, shall be deemed expenses of the department of public service within
    28  the  meaning  of  section  18-a of the public service law. No later than
    29  August 15, 2020, the commissioner of the department of  agriculture  and
    30  markets  shall submit an accounting of such expenses, including, but not
    31  limited to, expenses in the 2019--2020 state fiscal  year  for  personal
    32  and  non-personal  services  and  fringe  benefits,  to the chair of the
    33  public service  commission  for  the  chair's  review  pursuant  to  the
    34  provisions  of  section  18-a  of the public service law.  No later than
    35  August 15, 2021, the commissioner of the department of  agriculture  and
    36  markets  shall submit an accounting of such expenses, including, but not
    37  limited to, expenses in the 2020--2021 state fiscal  year  for  personal
    38  and  non-personal  services  and  fringe  benefits,  to the chair of the
    39  public service  commission  for  the  chair's  review  pursuant  to  the
    40  provisions of section 18-a of the public service law.
    41    §  2.  Expenditures of moneys appropriated in a chapter of the laws of
    42  2019 to  the  department  of  state  from  the  special  revenue  funds-
    43  other/state  operations,  miscellaneous special revenue fund-339, public
    44  service account shall be subject to  the  provisions  of  this  section.
    45  Notwithstanding  any  other provision of law to the contrary, direct and
    46  indirect expenses relating  to  the  activities  of  the  department  of
    47  state's  utility  intervention unit pursuant to subdivision 4 of section
    48  94-a of the executive law, including, but not limited  to  participation
    49  in  general  ratemaking proceedings pursuant to section 65 of the public
    50  service law or certification proceedings pursuant to article 7 or 10  of
    51  the  public  service  law, shall be deemed expenses of the department of
    52  public service within the meaning of section 18-a of the public  service
    53  law.  No later than August 15, 2020, the secretary of state shall submit
    54  an  accounting of such expenses, including, but not limited to, expenses

        S. 1508--B                         46
 
     1  in the 2019--2020  state  fiscal  year  for  personal  and  non-personal
     2  services and fringe benefits, to the chair of the public service commis-
     3  sion  for  the chair's review pursuant to the provisions of section 18-a
     4  of the public service law.  No later than August 15, 2021, the secretary
     5  of state shall submit an accounting of such expenses, including, but not
     6  limited  to,  expenses  in the 2020--2021 state fiscal year for personal
     7  and non-personal services and fringe  benefits,  to  the  chair  of  the
     8  public  service  commission  for  the  chair's  review  pursuant  to the
     9  provisions of section 18-a of the public service law.
    10    § 3. Expenditures of moneys appropriated in a chapter of the  laws  of
    11  2019  to  the office of parks, recreation and historic preservation from
    12  the special revenue funds-other/state operations, miscellaneous  special
    13  revenue  fund-339,  public  service  account  shall  be  subject  to the
    14  provisions of this section. Notwithstanding any other provision  of  law
    15  to  the contrary, direct and indirect expenses relating to the office of
    16  parks, recreation and historic preservation's participation  in  general
    17  ratemaking  proceedings pursuant to section 65 of the public service law
    18  or certification proceedings pursuant to article 7 or 10 of  the  public
    19  service  law,  shall  be  deemed  expenses  of  the department of public
    20  service within the meaning of section 18-a of the public service law. No
    21  later than August 15, 2020, the commissioner of  the  office  of  parks,
    22  recreation  and historic preservation shall submit an accounting of such
    23  expenses, including, but not limited  to,  expenses  in  the  2019--2020
    24  state  fiscal  year  for  personal  and non-personal services and fringe
    25  benefits, to the chair of the public service commission for the  chair's
    26  review  pursuant to the provisions of section 18-a of the public service
    27  law.  No later than August 15, 2021, the commissioner of the  office  of
    28  parks,  recreation  and historic preservation shall submit an accounting
    29  of such expenses,  including,  but  not  limited  to,  expenses  in  the
    30  2020--2021  state fiscal year for personal and non-personal services and
    31  fringe benefits, to the chair of the public service commission  for  the
    32  chair's  review pursuant to the provisions of section 18-a of the public
    33  service law.
    34    § 4. Expenditures of moneys appropriated in a chapter of the  laws  of
    35  2019  to  the  department of environmental conservation from the special
    36  revenue funds-other/state operations, environmental conservation special
    37  revenue fund-301, utility  environmental  regulation  account  shall  be
    38  subject  to  the  provisions  of this section. Notwithstanding any other
    39  provision of law to the contrary, direct and indirect expenses  relating
    40  to the department of environmental conservation's participation in state
    41  energy  policy  proceedings,  or  certification  proceedings pursuant to
    42  article 7 or 10 of the public service law, shall be deemed  expenses  of
    43  the  department  of public service within the meaning of section 18-a of
    44  the public service law. No later than August 15, 2020, the  commissioner
    45  of the department of environmental conservation shall submit an account-
    46  ing  of  such  expenses,  including, but not limited to, expenses in the
    47  2019--2020 state fiscal year for personal and non-personal services  and
    48  fringe  benefits,  to the chair of the public service commission for the
    49  chair's review pursuant to the provisions of section 18-a of the  public
    50  service  law.    No  later than August 15, 2021, the commissioner of the
    51  department of environmental conservation shall submit an  accounting  of
    52  such expenses, including, but not limited to, expenses in the 2020--2021
    53  state  fiscal  year  for  personal  and non-personal services and fringe
    54  benefits, to the chair of the public service commission for the  chair's
    55  review  pursuant to the provisions of section 18-a of the public service
    56  law.

        S. 1508--B                         47

     1    § 5. Intentionally omitted.
     2    §  6. Notwithstanding any other law, rule or regulation to the contra-
     3  ry, expenses of  the  department  of  health  public  service  education
     4  program  incurred  pursuant  to appropriations from the cable television
     5  account of the state miscellaneous special revenue funds shall be deemed
     6  expenses of the department of public service. No later than  August  15,
     7  2020,  the  commissioner  of  the  department  of health shall submit an
     8  accounting of expenses in the 2019--2020 state fiscal year to the  chair
     9  of  the public service commission for the chair's review pursuant to the
    10  provisions of section 217 of the public service  law.    No  later  than
    11  August  15,  2021,  the  commissioner  of the department of health shall
    12  submit an accounting of such expenses, including, but  not  limited  to,
    13  expenses  in  the 2020--2021 state fiscal year for personal and non-per-
    14  sonal services and fringe benefits, to the chair of the  public  service
    15  commission  for the chair's review pursuant to the provisions of section
    16  18-a of the public service law.
    17    § 7. Any expense deemed to be expenses of  the  department  of  public
    18  service  pursuant  to sections one through four of this act shall not be
    19  recovered through assessments imposed  upon  telephone  corporations  as
    20  defined in subdivision 17 of section 2 of the public service law.
    21    §  8.  This  act  shall take effect immediately and shall be deemed to
    22  have been in full force and effect  on  and  after  April  1,  2019  and
    23  sections one, two, three, four and six shall be deemed repealed April 1,
    24  2021.
 
    25                                   PART V
 
    26    Section  1.  The  article  heading of article 11 of the public service
    27  law, as added by chapter 83 of the laws of 1995, is amended to  read  as
    28  follows:
    29       PROVISIONS RELATING TO CABLE TELEVISION COMPANIES AND BROADBAND
    30                         INTERNET SERVICE PROVIDERS
    31    §  2.  Subdivision 1 of section 5 of the public service law is amended
    32  by adding a new paragraph i to read as follows:
    33    i. To every broadband internet line which lies wholly within the state
    34  and that part within the state of New York of every  broadband  internet
    35  line  which  lies  partly within and partly without the state and to the
    36  persons or corporations owning, leasing or operating any such  broadband
    37  internet line.
    38    §  3.  Section  212 of the public service law is amended by adding two
    39  new subdivisions 15 and 16 to read as follows:
    40    15. "Broadband internet  access  service"  shall  mean  a  mass-market
    41  retail  service  that  provides  the  capability to transmit data to and
    42  receive data from all or substantially all internet endpoints, including
    43  any capabilities that are incidental to and enable the operation of  the
    44  communications  service,  but  shall not include dial-up internet access
    45  service.
    46    16. "Broadband internet service provider" shall mean any person, busi-
    47  ness or organization qualified to do business in this  state,  including
    48  municipal  broadband providers, that provides individuals, corporations,
    49  or other entities with broadband internet access service.
    50    § 4. The section heading of section 215 of the public service law,  as
    51  added  by  chapter 83 of the laws of 1995, is amended and a new subdivi-
    52  sion 14 is added to read as follows:
    53    Duties of the commission in respect to cable television companies  and
    54  broadband internet service providers.

        S. 1508--B                         48
 
     1    14. Develop and maintain a statewide plan for the monitoring of broad-
     2  band internet service providers, including the annual certification that
     3  broadband  internet  service  providers comply with the internet service
     4  neutrality requirements established in section two hundred thirty-one of
     5  this article.
     6    §  5.  The state finance law is amended by adding a new section 148 to
     7  read as follows:
     8    § 148. Internet service neutrality requirements in certain procurement
     9  contracts. 1. Notwithstanding any other provision of law to the  contra-
    10  ry, where a contract that includes broadband internet access services is
    11  to  be awarded by a state agency as defined in section one hundred sixty
    12  of this chapter or any state  or  local  authority  as  such  terms  are
    13  defined  in  section two of the public authorities law, municipal corpo-
    14  ration as defined in section two of the general  municipal  law,  public
    15  library or association library, as such terms are defined in section two
    16  hundred  fifty-three  of  the education law, the legislature, judiciary,
    17  state university of New York, or city university of New York pursuant to
    18  a competitive bidding process or a request for  proposal  process,  such
    19  competitive  bidding  process or request for proposal and the subsequent
    20  awarded contract shall require  that  such  broadbrand  internet  access
    21  services are compliant with the internet service neutrality requirements
    22  established in section two hundred thirty-one of the public service law.
    23  Provided,  however,  the  entity  awarding  such contract may award such
    24  contract to any broadband internet service provider that is  not  certi-
    25  fied  by  the  public  service commission pursuant to subdivision two of
    26  section two hundred thirty-one of the public service law  only  if  such
    27  entity  demonstrates  to  the  public service commission that either (i)
    28  there are no other broadband internet  service  providers  available  to
    29  contract  with,  or (ii) awarding such contract to a certified broadband
    30  internet service provider would result in a significant financial  hard-
    31  ship  when  compared  to  awarding  the contract to a broadband internet
    32  service provider not certified by the public service commission.
    33    2. In addition to the authority granted to the commission pursuant  to
    34  this  chapter,  the  attorney general may enforce the provisions of this
    35  section to the extent permitted under section sixty-three of the  execu-
    36  tive law.
    37    3.  Nothing  in  this  section  supersedes  or  limits any obligation,
    38  authorization, or ability of an Internet service provider to address the
    39  needs of emergency communications or law enforcement, public safety,  or
    40  national security authorities.
    41    §  6.  Section 165 of the state finance law is amended by adding a new
    42  subdivision 9 to read as follows:
    43    9. Broadband Internet access  service.    If,  after  execution  of  a
    44  contract for broadband Internet access service the state determines that
    45  the Internet service provider has violated the provisions of section two
    46  hundred thirty-one of the public service law in providing service to the
    47  state,  the  state  may  declare  the contract void from the time it was
    48  entered into and require repayment of any payments made to the  Internet
    49  service provider pursuant to the contract. The remedies available pursu-
    50  ant  to this section are in addition to any remedy available pursuant to
    51  article twenty-two-A of the general business law.
    52    § 7. The public service law is amended by adding  three  new  sections
    53  231, 232 and 233 to read as follows:
    54    §  231.  Internet service neutrality. 1. For purposes of this section,
    55  "network management practice" shall mean a practice that has a primarily
    56  technical network management justification, but does not  include  other

        S. 1508--B                         49
 
     1  business  practices.  A  "reasonable  network management practice" shall
     2  mean a network management  practice  that  is  primarily  used  for  and
     3  tailored  to  achieving  a legitimate network management purpose, taking
     4  into  account  the particular network architecture and technology of the
     5  broadband internet access service.
     6    2. The commission shall certify annually that any  broadband  internet
     7  service provider qualified to do business in this state, does not:
     8    (a)  block  lawful  content,  applications,  services,  or non-harmful
     9  devices, subject to reasonable network management.
    10    (b) impair or degrade lawful internet traffic on the basis of internet
    11  content, application, or  service,  or  use  of  a  non-harmful  device,
    12  subject to reasonable network management.
    13    (c)  engage  in  paid  prioritization,  including, but not limited to,
    14  traffic shaping, prioritization, resource reservation, or other forms of
    15  preferential traffic management, either (i) in exchange for any form  of
    16  consideration from a third party, or (ii) to benefit an affiliated enti-
    17  ty, unless the broadband internet service provider demonstrates that the
    18  practice  would  provide a significant public interest benefit and would
    19  not harm the open nature of the internet.
    20    3. The commission shall annually  prepare  a  report  that  lists  the
    21  certification status for every broadband internet service provider qual-
    22  ified  to  do  business in this state. Such report shall be published on
    23  the commission's website and updated at least annually.  The  commission
    24  shall  notify  the  governor, the temporary president of the senate, and
    25  the speaker of the assembly of the publication of such  report  and  any
    26  updates.
    27    §  232. Infrastructure awards. 1. An award of moneys by the NYS Broad-
    28  band Program Office for the building  of  infrastructure  for  broadband
    29  communications shall require the awardee to prevent any Internet service
    30  provider  that provides broadband Internet access service utilizing that
    31  infrastructure from violating the  provisions  of  section  two  hundred
    32  thirty-one of this article.
    33    2.  An  award of moneys by the NYS Broadband Program Office for access
    34  to the Internet  shall  prohibit  any  Internet  service  provider  that
    35  receives  those  moneys  from  violating  the  provisions of section two
    36  hundred thirty-one of this article.
    37    § 233.  Broadband  Internet  access  evaluation.  The  commission,  in
    38  consultation  with the power authority of the state of New York, the NYS
    39  Broadband Program Office and electrical corporations, shall evaluate the
    40  role broadband Internet access and tools, especially as they  relate  to
    41  private  consumers,  will  play  in  the future operation of the state's
    42  power grid. The evaluation should consider at least the following:
    43    1. the reliance  of  electrical  corporations  on  consumer  broadband
    44  services to manage energy resources;
    45    2.  the  impact  that paid prioritization, throttling, and blocking in
    46  consumer broadband Internet service would have  on  resource  management
    47  and grid reliability; and
    48    3. the future cost to the state and agencies if state agencies need to
    49  enter  into  long-term  paid  prioritization contracts if net neutrality
    50  principles are no longer in place.
    51    § 8. This act shall take effect on the one hundred eightieth day after
    52  it shall have become a law.
 
    53                                   PART W

        S. 1508--B                         50
 
     1    Section 1. Expenditures  of  moneys  by  the  New  York  state  energy
     2  research  and  development  authority  for  services and expenses of the
     3  energy  research,  development  and  demonstration  program,   including
     4  grants, the energy policy and planning program, the zero emissions vehi-
     5  cle  and  electric vehicle rebate program, and the Fuel NY program shall
     6  be subject to  the  provisions  of  this  section.  Notwithstanding  the
     7  provisions of subdivision 4-a of section 18-a of the public service law,
     8  all  moneys committed or expended in an amount not to exceed $19,700,000
     9  shall be reimbursed by assessment against gas corporations,  as  defined
    10  in  subdivision  11  of section 2 of the public service law and electric
    11  corporations as defined in subdivision 13 of section  2  of  the  public
    12  service  law, where such gas corporations and electric corporations have
    13  gross revenues from intrastate utility operations in excess of  $500,000
    14  in  the  preceding  calendar  year,  and  the  total amount which may be
    15  charged to any gas corporation and any electric  corporation  shall  not
    16  exceed  one  cent  per one thousand cubic feet of gas sold and .010 cent
    17  per kilowatt-hour of electricity sold  by  such  corporations  in  their
    18  intrastate  utility operations in calendar year 2017. Such amounts shall
    19  be excluded from the general assessment provisions of subdivision  2  of
    20  section  18-a of the public service law. The chair of the public service
    21  commission shall bill such gas and/or  electric  corporations  for  such
    22  amounts  on  or before August 10, 2019 and such amounts shall be paid to
    23  the New York state energy  research  and  development  authority  on  or
    24  before  September  10,  2019.  Upon  receipt,  the New York state energy
    25  research and development authority shall deposit such funds in the ener-
    26  gy research and  development  operating  fund  established  pursuant  to
    27  section  1859  of  the public authorities law. The New York state energy
    28  research and development authority is authorized and  directed  to:  (1)
    29  transfer  $1 million to the state general fund for services and expenses
    30  of the department of environmental conservation, $150,000 to  the  state
    31  general  fund for services and expenses of the department of agriculture
    32  and markets, and $825,000 to the University of Rochester laboratory  for
    33  laser  energetics  from  the funds received; and (2) commencing in 2016,
    34  provide to the chair of the public service commission and  the  director
    35  of  the  budget and the chairs and secretaries of the legislative fiscal
    36  committees, on or before August first of each year, an itemized  record,
    37  certified by the president and chief executive officer of the authority,
    38  or  his  or her designee, detailing any and all expenditures and commit-
    39  ments ascribable to moneys received as a result of  this  assessment  by
    40  the  chair  of the department of public service pursuant to section 18-a
    41  of the public service law.  This itemized record shall include an  item-
    42  ized  breakdown  of  the  programs  being funded by this section and the
    43  amount committed to each program.  The authority shall  not  commit  for
    44  any  expenditure, any moneys derived from the assessment provided for in
    45  this section, until the chair of such authority  shall  have  submitted,
    46  and  the  director  of  the  budget shall have approved, a comprehensive
    47  financial plan encompassing all moneys available to and all  anticipated
    48  commitments  and  expenditures by such authority from any source for the
    49  operations of such authority.   Copies  of  the  approved  comprehensive
    50  financial plan shall be immediately submitted by the chair to the chairs
    51  and  secretaries  of the legislative fiscal committees.  Any such amount
    52  not committed by such authority to contracts or contracts to be  awarded
    53  or  otherwise  expended by the authority during the fiscal year shall be
    54  refunded by such authority on a pro-rata basis to such gas and/or  elec-
    55  tric  corporations,  in  a  manner to be determined by the department of

        S. 1508--B                         51
 
     1  public service, and any refund amounts must be explicitly lined  out  in
     2  the itemized record described above.
     3    §  2.  This  act  shall take effect immediately and shall be deemed to
     4  have been in full force and effect on and after April 1, 2019.
 
     5                                   PART X
 
     6                            Intentionally Omitted
 
     7                                   PART Y
 
     8    Section 1. Section 2 of chapter 393 of the laws of 1994, amending  the
     9  New York state urban development corporation act, relating to the powers
    10  of  the  New  York state urban development corporation to make loans, as
    11  amended by section 1 of part P of chapter 58 of the  laws  of  2018,  is
    12  amended to read as follows:
    13    §  2.  This  act shall take effect immediately provided, however, that
    14  section one of this act shall expire on July 1, [2019]  2020,  at  which
    15  time the provisions of subdivision 26 of section 5 of the New York state
    16  urban  development  corporation  act shall be deemed repealed; provided,
    17  however, that neither the expiration nor the repeal of such  subdivision
    18  as provided for herein shall be deemed to affect or impair in any manner
    19  any  loan  made  pursuant  to the authority of such subdivision prior to
    20  such expiration and repeal.
    21    § 2. This act shall take effect immediately and  shall  be  deemed  to
    22  have been in full force and effect on and after April 1, 2019.
 
    23                                   PART Z
 
    24    Section  1.  Subdivision 3 of section 16-m of section 1 of chapter 174
    25  of the laws of 1968 constituting the New York  state  urban  development
    26  corporation  act, as amended by section 1 of part O of chapter 58 of the
    27  laws of 2018, is amended to read as follows:
    28    3. The provisions of this section shall  expire,  notwithstanding  any
    29  inconsistent provision of subdivision 4 of section 469 of chapter 309 of
    30  the laws of 1996 or of any other law, on July 1, [2019] 2020.
    31    §  2.  This  act  shall take effect immediately and shall be deemed to
    32  have been in full force and effect on and after July 1, 2019.
 
    33                                   PART AA
 
    34    Section 1. Paragraph (b) of subdivision 8, subdivisions 16, 19, 21 and
    35  22 of section 310 of the executive law, as added by chapter 261  of  the
    36  laws of 1988, subdivision 16 as added by section 3 of part BB of chapter
    37  59 of the laws of 2006, and subdivisions 19, 21 and 22 as added by chap-
    38  ter 175 of the laws of 2010, are amended to read as follows:
    39    (b)  [Hispanic]  Hispanic/Latino  persons  of  Mexican,  Puerto Rican,
    40  Dominican, Cuban, Central or South American of either Indian or Hispanic
    41  origin, regardless of race;
    42    16. "Statewide advocate"  shall  mean  the  person  appointed  by  the
    43  [commissioner]  director  to  serve  in the capacity of the minority and
    44  women-owned  business  enterprise  statewide  advocate  and  procurement
    45  ombudsman.
    46    19.  "Personal  net worth" shall mean the aggregate adjusted net value
    47  of the assets of an individual remaining  after  total  liabilities  are
    48  deducted.  Personal  net worth includes the individual's share of assets

        S. 1508--B                         52
 
     1  held jointly with said individual's spouse  and  does  not  include  the
     2  individual's  ownership  interest  in  the certified minority and women-
     3  owned business enterprise, the individual's equity in his or her primary
     4  residence,  ownership  interest  in  a  holding company that leases real
     5  property, machinery, equipment, or vehicles exclusively to the certified
     6  minority or women-owned business enterprise that is  majority  owned  by
     7  the minority group members or women relied upon for certification, or up
     8  to  [five  hundred]  seven hundred fifty thousand dollars of the present
     9  cash value of  any  qualified  retirement  savings  plan  or  individual
    10  retirement  account  held by the individual less any penalties for early
    11  withdrawal.
    12    21. "The [2010] 2016 disparity study" shall  refer  to  the  disparity
    13  study commissioned by the [empire state development corporation] depart-
    14  ment of economic development, pursuant to section three hundred twelve-a
    15  of  this article, and published on [April twenty-nine, two thousand ten]
    16  June thirtieth, two thousand seventeen.
    17    22. "Diversity practices" shall mean the  contractor's  practices  and
    18  policies with respect to:
    19    (a)  [utilizing] mentoring certified minority and women-owned business
    20  enterprises in contracts awarded by  a  state  agency  or  other  public
    21  corporation, as subcontractors and suppliers; [and]
    22    (b)  entering  into  partnerships,  joint  ventures  or  other similar
    23  arrangements with certified minority  and  women-owned  business  enter-
    24  prises  as  defined in this article or other applicable statute or regu-
    25  lation governing an entity's  utilization  of  minority  or  women-owned
    26  business enterprises; and
    27    (c)  the representation of minority group members and women as members
    28  of the board of directors or executive officers of the contractor.
    29    § 1-a. Paragraphs (e) and (f) of subdivision 3 of section 311  of  the
    30  executive  law,  paragraph  (e)  as amended by chapter 55 of the laws of
    31  1992 and paragraph (f) as added by chapter 261 of the laws of 1988,  are
    32  amended to read as follows:
    33    (e)  on  January  first  of  each  year report to the governor and the
    34  chairpersons of the senate finance and assembly ways and  means  commit-
    35  tees  on  the  level  of  minority  and women-owned business enterprises
    36  participating in each agency's contracts for goods and services  and  on
    37  activities  of  the  office  and  effort  by  each contracting agency to
    38  promote employment of minority group members and women, and  to  promote
    39  and increase participation by certified businesses with respect to state
    40  contracts and subcontracts so as to facilitate the award of a fair share
    41  of  state  contracts  to such businesses.  Such report shall itemize the
    42  total value of design-build contracts used by  each  contracting  agency
    43  when  applicable,  and  each contracting agency authorized to enter into
    44  design-build contracts shall itemize the rate  of  minority  and  women-
    45  owned  business  enterprises  participation  on  design-build contracts,
    46  design-bid-build contracts, as well  as  the  agency's  overall  partic-
    47  ipation  rate.  The  comptroller shall assist the division in collecting
    48  information  on  the  participation  of  certified  business  for   each
    49  contracting  agency.  Such  report  may  recommend  new  activities  and
    50  programs to effectuate the purposes of this article;
    51    (f) to prepare and update  [periodically]  quarterly  a  directory  of
    52  certified  minority  and  women-owned  business enterprises which shall,
    53  wherever practicable, be divided into  categories  of  labor,  services,
    54  supplies,  equipment,  materials  and recognized construction trades and
    55  which shall indicate areas or locations of the state where  such  enter-
    56  prises are available to perform services;

        S. 1508--B                         53
 
     1    §  1-b.  Paragraphs (h) and (i) of subdivision 3 of section 311 of the
     2  executive law, paragraph (h) as amended and paragraph (i)  as  added  by
     3  section  1 of part BB of chapter 59 of the laws of 2006, are amended and
     4  a new paragraph (j) is added to read as follows:
     5    (h)  notwithstanding  the provisions of section two hundred ninety-six
     6  of this chapter, to file a  complaint  pursuant  to  the  provisions  of
     7  section  two hundred ninety-seven of this chapter where the director has
     8  knowledge that a contractor may have violated the  provisions  of  para-
     9  graph  (a), (b) or (c) of subdivision one of section two hundred ninety-
    10  six of this chapter where  such  violation  is  unrelated,  separate  or
    11  distinct from the state contract as expressed by its terms; [and]
    12    (i)  to  streamline  the state certification process to accept federal
    13  and municipal corporation certifications[.]; and
    14    (j) to keep a record  of  partial  and  total  waivers  of  compliance
    15  reported  pursuant  to paragraph (b) of subdivision six of section three
    16  hundred thirteen of this article and to make such record publicly avail-
    17  able on the division's website as a searchable list.  The  record  shall
    18  provide, at a minimum: (A) information identifying the contract, includ-
    19  ing the value of the contract; (B) information identifying the contract-
    20  ing agency; (C) the name of the contractor receiving the waiver; and (D)
    21  the date of the waiver.
    22    §  2.  The  opening  paragraph  of subdivision 4 of section 311 of the
    23  executive law, as amended by chapter 361 of the laws of 2009, is amended
    24  to read as follows:
    25    The director [may] shall provide assistance to, and facilitate  access
    26  to programs serving certified businesses as well as applicants to ensure
    27  that  such businesses benefit, as needed, from technical, managerial and
    28  financial, and general business assistance; training; marketing;  organ-
    29  ization  and personnel skill development; project management assistance;
    30  technology assistance; bond  and  insurance  education  assistance;  and
    31  other  business  development  assistance.  The director shall maintain a
    32  toll-free number and an interactive online presence at the department of
    33  economic development to be used to answer questions concerning the  MWBE
    34  certification  process.  In addition, the director may, either independ-
    35  ently or in conjunction with other state agencies:
    36    § 3. Section 311-a of the executive law, as added by section 4 of part
    37  BB of chapter 59 of the laws of 2006, is amended to read as follows:
    38    § 311-a. Minority and women-owned business enterprise statewide  advo-
    39  cate.  1. There is hereby established within the [department of economic
    40  development] division of minority and women's business an office of  the
    41  minority  and  women-owned  business  enterprise statewide advocate. The
    42  statewide advocate shall be  appointed  by  the  commissioner  with  the
    43  advice  of  the  small business advisory board as established in section
    44  one hundred thirty-three of the economic development law and shall serve
    45  in the unclassified service of  the  director.  The  statewide  advocate
    46  shall be located in the Albany empire state development office.
    47    2.  The  advocate  shall act as a liaison for minority and women-owned
    48  business enterprises (MWBEs) to  assist  them  in  obtaining  technical,
    49  managerial,  financial and other business assistance for certified busi-
    50  nesses and  applicants.  The  advocate  shall  receive  and  investigate
    51  complaints  brought  by  or  on behalf of MWBEs concerning certification
    52  delays and instances of violations of [law]  the  requirements  of  this
    53  article  by  contractors  and  by state agencies. The statewide advocate
    54  shall assist certified businesses and applicants  in  the  certification
    55  process.  Other functions of the statewide advocate shall be directed by
    56  the commissioner. The advocate shall have  the  resources  necessary  to

        S. 1508--B                         54
 
     1  perform  its  functions,  and, as such, may request and the director may
     2  appoint staff and employees of the division of minority and women  busi-
     3  ness  development  to  support  the  administration of the office of the
     4  statewide advocate.
     5    3.  The  statewide advocate [shall establish a toll-free number at the
     6  department of economic  development  to  be  used  to  answer  questions
     7  concerning the MWBE certification process] shall conduct periodic audits
     8  of  state  agencies'  compliance  with the requirements of section three
     9  hundred fifteen of this article, such audits shall include a  review  of
    10  the  books and records of state agencies concerning, among other things,
    11  annual agency expenditures, annual participation of minority and  women-
    12  owned  business  enterprises  as prime contractors and subcontractors in
    13  state agencies' state contracts, and documentation  of  state  agencies'
    14  good  faith efforts to maximize minority and women-owned business enter-
    15  prise participation in such agencies' contracting.
    16    4. The statewide advocate shall investigate  complaints  by  minority-
    17  owned  business  enterprises or women-owned business enterprises, certi-
    18  fied as such by the division of minority and women's  business  develop-
    19  ment,  concerning  a  procuring  governmental entity's failure to comply
    20  with the requirements of section three hundred fifteen of this article.
    21    5. The statewide advocate shall report to the director and commission-
    22  er by November fifteenth on an annual basis on all activities related to
    23  fulfilling the obligations of the  office  of  the  statewide  advocate,
    24  including  but not limited to (a) the number of complaints investigated;
    25  (b) the resolution of said complaints;  and  (c)  details  about  audits
    26  conducted pursuant to subdivision three of this section. The commission-
    27  er  shall  include  the unedited text of the statewide advocate's report
    28  within the reports submitted by the department of  economic  development
    29  to the governor and the legislature.
    30    §  4.  Section  312-a of the executive law, as amended by section 1 of
    31  part Q of chapter 58 of the laws of 2015, is amended to read as follows:
    32    § 312-a.  Study  of  minority  and  women-owned  business  [enterprise
    33  programs]  enterprises.  1. The director of the division of minority and
    34  women-owned business development [in the department of economic develop-
    35  ment] is authorized and directed to recommission a  statewide  disparity
    36  study  regarding  the participation of minority and women-owned business
    37  enterprises in state contracts since the amendment of this article to be
    38  delivered  to  the  governor  and  legislature  no  later  than   August
    39  fifteenth,  two  thousand  [sixteen]  twenty-three.  The  study shall be
    40  prepared by an entity independent of the department and selected through
    41  a request for proposal process. The purpose of such study is:
    42    (a) to determine whether there is a disparity between  the  number  of
    43  qualified minority and women-owned businesses ready, willing and able to
    44  perform  state contracts for commodities, services and construction, and
    45  the  number  of  such  contractors  actually  engaged  to  perform  such
    46  contracts,  and  to  determine  what  changes, if any, should be made to
    47  state policies affecting minority and women-owned business  enterprises;
    48  and  (b) to determine whether there is a disparity between the number of
    49  qualified minorities and women ready, willing and able, with respect  to
    50  labor markets, qualifications and other relevant factors, to participate
    51  in  contractor  employment, management level bodies, including boards of
    52  directors, and as senior executive officers within contracting  entities
    53  and  the  number  of  such group members actually employed or affiliated
    54  with state contractors in the aforementioned capacities, and  to  deter-
    55  mine  what  changes,  if any, should be made to state policies affecting
    56  minority and women group populations with regard to  state  contractors'

        S. 1508--B                         55

     1  employment  and appointment practices relative to diverse group members.
     2  Such study shall include, but not be limited  to,  an  analysis  of  the
     3  history  of  minority  and  women-owned business enterprise programs and
     4  their effectiveness as a means of securing and ensuring participation by
     5  minorities and women, and a disparity analysis by market area and region
     6  of  the  state.  Such  study  shall  distinguish between minority males,
     7  minority females and non-minority females in the statistical analysis.
     8    2. The director of the division of minority and  women-owned  business
     9  development  is directed to transmit the disparity study to the governor
    10  and the legislature  not  later  than  August  fifteenth,  two  thousand
    11  [sixteen]  twenty-three,  and  to  post  the study on the website of the
    12  department of economic development.
    13    § 5. Section 313 of the executive law, as amended by  chapter  175  of
    14  the laws of 2010, is amended to read as follows:
    15    § 313. Opportunities  for  minority  and  women-owned  business enter-
    16  prises. 1. Goals and requirements for agencies and  contractors.    Each
    17  agency shall structure procurement procedures for contracts made direct-
    18  ly  or  indirectly  to minority and women-owned business enterprises, in
    19  accordance with the findings of the two thousand [ten] sixteen disparity
    20  study, consistent with the purposes  of  this  article,  to  attempt  to
    21  achieve  the [following] recommended results with regard to total annual
    22  statewide procurement for each of the following:
    23    (a) construction industry for certified minority-owned business enter-
    24  prises[: fourteen and thirty-four hundredths percent];
    25    (b) construction industry for certified  women-owned  business  enter-
    26  prises[: eight and forty-one hundredths percent];
    27    (c)  construction related professional services industry for certified
    28  minority-owned business enterprises[: thirteen and twenty-one hundredths
    29  percent];
    30    (d) construction related professional services industry for  certified
    31  women-owned  business  enterprises[:  eleven  and  thirty-two hundredths
    32  percent];
    33    (e) non-construction related services industry for  certified  minori-
    34  ty-owned business enterprises[: nineteen and sixty hundredths percent];
    35    (f)  non-construction  related  services industry for certified women-
    36  owned  business  enterprises[:  seventeen  and   forty-four   hundredths
    37  percent];
    38    (g)  commodities industry for certified minority-owned business enter-
    39  prises[: sixteen and eleven hundredths percent];
    40    (h) commodities industry for  certified  women-owned  business  enter-
    41  prises[:  ten and ninety-three hundredths percent];
    42    (i)  overall  agency  total  dollar value of procurement for certified
    43  minority-owned business enterprises[: sixteen and fifty-three hundredths
    44  percent];
    45    (j) overall agency total dollar value  of  procurement  for  certified
    46  women-owned  business  enterprises[:  twelve  and thirty-nine hundredths
    47  percent]; and
    48    (k) overall agency total dollar value  of  procurement  for  certified
    49  minority, women-owned business enterprises[: twenty-eight and ninety-two
    50  hundredths percent].
    51    1-a.  The  director  shall  ensure  that  each  state  agency has been
    52  provided with a copy of the two thousand [ten] sixteen disparity study.
    53    1-b. Each agency shall develop and adopt agency-specific  goals  based
    54  on the findings of the two thousand [ten] sixteen disparity study.

        S. 1508--B                         56
 
     1    1-c.  The  goals set pursuant to subdivision one of this section shall
     2  be consistent with the findings of the two  thousand  sixteen  disparity
     3  study.
     4    2. The director shall promulgate rules and regulations pursuant to the
     5  goals established in subdivision one of this section and findings of the
     6  two  thousand  sixteen  disparity study that provide measures and proce-
     7  dures to ensure that certified minority and women-owned businesses shall
     8  be given the opportunity  for  maximum  feasible  participation  in  the
     9  performance of state contracts and to assist in the agency's identifica-
    10  tion  of those state contracts for which minority and women-owned certi-
    11  fied businesses may best bid to actively and affirmatively  promote  and
    12  assist  their  participation in the performance of state contracts so as
    13  to facilitate the agency's achievement of the maximum  feasible  portion
    14  of the goals for state contracts to such businesses.
    15    2-a.  The  director  shall  promulgate rules and regulations that will
    16  accomplish the following:
    17    (a) provide for the certification and decertification of minority  and
    18  women-owned business enterprises for all agencies through a single proc-
    19  ess that meets applicable requirements;
    20    (b) require that each contract solicitation document accompanying each
    21  solicitation  set  forth the expected degree of minority and women-owned
    22  business enterprise participation based, in part, on:
    23    (i) the potential subcontract opportunities  available  in  the  prime
    24  procurement contract; and
    25    (ii)  the  availability,  as  contained within the study, of certified
    26  minority and women-owned business enterprises to  respond  competitively
    27  to the potential subcontract opportunities;
    28    (iii) the findings of the two thousand sixteen disparity study;
    29    (c)  require  that  each  agency  provide  a current list of certified
    30  minority business enterprises to each prospective contractor;
    31    (d) allow a contractor that is a certified  minority-owned  or  women-
    32  owned  business  enterprise to use the work it performs to meet require-
    33  ments for use of certified minority-owned or women-owned business enter-
    34  prises as subcontractors;
    35    (e) establish criteria for agencies to  credit  the  participation  of
    36  minority and women-owned business enterprises towards the achievement of
    37  the  minority and women-owned business enterprise participation goals on
    38  a state contract based on the commercially useful function  provided  by
    39  each minority and women-owned business enterprise on the contract;
    40    (f)  provide for joint ventures, which a bidder may count toward meet-
    41  ing its minority and women-owned business enterprise participation;
    42    [(f)] (g) consistent with subdivision six of this section, provide for
    43  circumstances under  which  an  agency  may  waive  obligations  of  the
    44  contractor  relating  to  minority  and  women-owned business enterprise
    45  participation;
    46    [(g)] (h) require that an agency verify that minority and  women-owned
    47  business enterprises listed in a successful bid are actually participat-
    48  ing to the extent listed in the project for which the bid was submitted;
    49    [(h)] (i) provide for the collection of statistical data by each agen-
    50  cy  concerning  actual  minority  and  women-owned  business  enterprise
    51  participation; and
    52    [(i)] (j) require each agency to consult the  most  current  disparity
    53  study  when  calculating agency-wide and contract specific participation
    54  goals pursuant to this article.
    55    3. Solely for the purpose of providing the opportunity for  meaningful
    56  participation  by  certified  businesses  in  the  performance  of state

        S. 1508--B                         57
 
     1  contracts as provided in this section,  state  contracts  shall  include
     2  leases  of  real property by a state agency to a lessee where: the terms
     3  of such leases provide for the  construction,  demolition,  replacement,
     4  major  repair or renovation of real property and improvements thereon by
     5  such lessee; and the cost of such construction, demolition, replacement,
     6  major repair or renovation of real  property  and  improvements  thereon
     7  shall  exceed  the  sum  of one hundred thousand dollars. Reports to the
     8  director pursuant to section three hundred fifteen of this article shall
     9  include activities with respect to all such state contracts. Contracting
    10  agencies shall include or require to be included with respect  to  state
    11  contracts  for  the  acquisition, construction, demolition, replacement,
    12  major repair or renovation of real property  and  improvements  thereon,
    13  such provisions as may be necessary to effectuate the provisions of this
    14  section  in  every  bid specification and state contract, including, but
    15  not limited to: (a) provisions requiring  contractors  to  make  a  good
    16  faith  effort  to solicit active participation by enterprises identified
    17  in the directory of certified businesses [provided  to  the  contracting
    18  agency by the office]; (b) requiring the parties to agree as a condition
    19  of entering into such contract, to be bound by the provisions of section
    20  three  hundred sixteen of this article; and (c) requiring the contractor
    21  to include the provisions set forth in paragraphs (a) and  (b)  of  this
    22  subdivision in every subcontract in a manner that the provisions will be
    23  binding  upon  each  subcontractor  as  to  work in connection with such
    24  contract. Provided, however, that no such provisions  shall  be  binding
    25  upon  contractors  or  subcontractors  in the performance of work or the
    26  provision of services that are unrelated, separate or distinct from  the
    27  state  contract  as  expressed by its terms, and nothing in this section
    28  shall authorize the director or any contracting  agency  to  impose  any
    29  requirement  on  a  contractor or subcontractor except with respect to a
    30  state contract.
    31    4. In the implementation of this section, the contracting agency shall
    32  (a) consult the findings contained within the disparity study evidencing
    33  relevant industry specific availability of certified businesses;
    34    (b) implement a program that will enable the agency to  evaluate  each
    35  contract  to  determine  the  [appropriateness  of the] appropriate goal
    36  pursuant to subdivision one of this section for participation by minori-
    37  ty-owned business enterprises and women-owned business enterprises;
    38    (c) consider  where  practicable,  the  severability  of  construction
    39  projects and other bundled contracts; and
    40    (d)  consider  compliance  with  the  requirements  of any federal law
    41  concerning opportunities for minority and  women-owned  business  enter-
    42  prises  which  effectuates  the purpose of this section. The contracting
    43  agency shall determine whether the imposition of the requirements of any
    44  such law duplicate or conflict with the provisions hereof  and  if  such
    45  duplication  or  conflict exists, the contracting agency shall waive the
    46  applicability of this section to  the  extent  of  such  duplication  or
    47  conflict.
    48    5. (a) Contracting agencies shall administer the rules and regulations
    49  promulgated  by  the director in a good faith effort to meet the maximum
    50  feasible portion of the agency's goals adopted pursuant to this  article
    51  and  the  regulations of the director. Such rules and regulations: shall
    52  require a contractor to submit a utilization plan after bids are opened,
    53  when bids are required, but prior to the  award  of  a  state  contract;
    54  shall  require  the  contracting  agency  to review the utilization plan
    55  submitted by the contractor and to post the  utilization  plan  and  any
    56  waivers of compliance issued pursuant to subdivision six of this section

        S. 1508--B                         58
 
     1  on  the website of the contracting agency [within a reasonable period of
     2  time as established by the  director];  shall  require  the  contracting
     3  agency to notify the contractor in writing within a period of time spec-
     4  ified  by  the director as to any deficiencies contained in the contrac-
     5  tor's utilization plan; shall require remedy thereof within a period  of
     6  time  specified  by the director; shall require the contractor to submit
     7  periodic compliance reports relating to the operation and implementation
     8  of any utilization plan; shall not allow any automatic waivers but shall
     9  allow a contractor to apply for a partial or total waiver of the minori-
    10  ty and women-owned business enterprise participation requirements pursu-
    11  ant to subdivisions six  and  seven  of  this  section;  shall  allow  a
    12  contractor to file a complaint with the director pursuant to subdivision
    13  eight  of  this  section in the event a contracting agency has failed or
    14  refused to issue a waiver  of  the  minority  and  women-owned  business
    15  enterprise  participation  requirements or has denied such request for a
    16  waiver; and shall allow a contracting agency to file  a  complaint  with
    17  the director pursuant to subdivision nine of this section in the event a
    18  contractor  is  failing  or  has  failed to comply with the minority and
    19  women-owned business enterprise participation requirements set forth  in
    20  the state contract where no waiver has been granted.
    21    (b) The rules and regulations promulgated pursuant to this subdivision
    22  regarding  a  utilization plan shall provide that where enterprises have
    23  been identified within a utilization plan, a contractor  shall  attempt,
    24  in  good  faith, to utilize such enterprise at least to the extent indi-
    25  cated. A contracting agency may require a contractor to indicate, within
    26  a utilization plan, what measures and procedures he or  she  intends  to
    27  take to comply with the provisions of this article, but may not require,
    28  as  a  condition  of  award  of,  or  compliance with, a contract that a
    29  contractor  utilize  a  particular  enterprise  in  performance  of  the
    30  contract.
    31    (c) Without limiting other grounds for the disqualification of bids or
    32  proposals  on  the basis of non-responsibility, a contracting agency may
    33  disqualify the bid or proposal of a contractor as being  non-responsible
    34  for  failure  to  remedy notified deficiencies contained in the contrac-
    35  tor's utilization plan within a period of time specified in  regulations
    36  promulgated  by  the director after receiving notification of such defi-
    37  ciencies from the contracting agency. Where failure to remedy any  noti-
    38  fied  deficiency  in  the utilization plan is a ground for disqualifica-
    39  tion, that issue and all other grounds  for  disqualification  shall  be
    40  stated in writing by the contracting agency. Where the contracting agen-
    41  cy states that a failure to remedy any notified deficiency in the utili-
    42  zation  plan  is  a  ground for disqualification the contractor shall be
    43  entitled to an  administrative  hearing,  on  a  record,  involving  all
    44  grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
    45  conducted by the appropriate authority  of  the  contracting  agency  to
    46  review  the  determination  of  disqualification. A final administrative
    47  determination made following such  hearing  shall  be  reviewable  in  a
    48  proceeding  commenced  under article seventy-eight of the civil practice
    49  law and rules, provided that such proceeding is commenced within  thirty
    50  days  of  the  notice  given  by certified mail return receipt requested
    51  rendering such final administrative determination. Such proceeding shall
    52  be commenced in the supreme court, appellate division, third  department
    53  and  such  proceeding  shall  be  preferred  over all other civil causes
    54  except election causes, and shall be heard and determined in  preference
    55  to  all  other  civil business pending therein, except election matters,
    56  irrespective of position on the calendar. Appeals taken to the court  of

        S. 1508--B                         59
 
     1  appeals  of  the  state of New York shall be subject to the same prefer-
     2  ence.
     3    6.  (a)  Where it appears that a contractor cannot, after a good faith
     4  effort, comply with the minority  and  women-owned  business  enterprise
     5  participation  requirements  set forth in a particular state contract, a
     6  contractor may file a written application with  the  contracting  agency
     7  requesting  a partial or total waiver of such requirements setting forth
     8  the reasons for such contractor's inability to meet any or  all  of  the
     9  participation  requirements  together with an explanation of the efforts
    10  undertaken by the contractor to obtain the required minority and  women-
    11  owned  business enterprise participation. In implementing the provisions
    12  of this section, the contracting agency shall consider  the  number  and
    13  types  of  minority  and women-owned business enterprises located in the
    14  region in which the state contract is to be performed, the total  dollar
    15  value  of  the state contract, the scope of work to be performed and the
    16  project size and term. If, based on such considerations, the contracting
    17  agency determines there is not a reasonable availability of  contractors
    18  on  the  list of certified business to furnish services for the project,
    19  it shall issue a waiver of compliance to the contractor. In making  such
    20  determination,  the  contracting  agency shall first consider the avail-
    21  ability of other business enterprises located in the  region  and  shall
    22  thereafter  consider  the  financial ability of minority and women-owned
    23  businesses located outside the region in which the  contract  is  to  be
    24  performed to perform the state contract.
    25    (b) Within thirty days of the issuance of a partial or total waiver of
    26  compliance  as  provided  in  paragraph  (a)  of  this  subdivision, the
    27  contracting agency shall:
    28    (i) report the issuance of the waiver to the director; and
    29    (ii) publish on the contracting agency's website: a searchable list of
    30  (A) information identifying the contract, including  the  value  of  the
    31  contract;  (B)  the name of the contractor receiving the waiver; (C) the
    32  date of the waiver; (D) whether the waiver was a total or partial  waiv-
    33  er;  and  (E)  the  specific  contract  provisions  to  which the waiver
    34  applies.
    35    7. For purposes of determining a contractor's  good  faith  effort  to
    36  comply  with  the  requirements  of  this section or to be entitled to a
    37  waiver therefrom the contracting agency shall consider:
    38    (a) whether the  contractor  has  advertised  in  general  circulation
    39  media,  trade association publications, and minority-focus and women-fo-
    40  cus media and, in such event, (i) whether or not certified  minority  or
    41  women-owned  businesses  which  have  been  solicited  by the contractor
    42  exhibited interest in submitting proposals for a particular  project  by
    43  attending a pre-bid conference; and
    44    (ii)  whether  certified  businesses  which have been solicited by the
    45  contractor have responded in a timely fashion to the contractor's solic-
    46  itations for timely competitive bid quotations prior to the  contracting
    47  agency's bid date; and
    48    (b)  whether there has been written notification to appropriate certi-
    49  fied businesses that appear in the  directory  of  certified  businesses
    50  prepared pursuant to paragraph (f) of subdivision three of section three
    51  hundred eleven of this article; and
    52    (c) whether the contractor can reasonably structure the amount of work
    53  to  be  performed under subcontracts in order to increase the likelihood
    54  of participation by certified businesses.
    55    8. In the event that a contracting agency fails or refuses to issue  a
    56  waiver to a contractor as requested within twenty days after having made

        S. 1508--B                         60
 
     1  application  therefor  pursuant to subdivision six of this section or if
     2  the contracting agency denies such application, in whole or in part, the
     3  contractor may file a complaint with the director  pursuant  to  section
     4  three  hundred  sixteen  of  this  article  setting  forth the facts and
     5  circumstances giving rise to the contractor's complaint together with  a
     6  demand  for  relief. The contractor shall serve a copy of such complaint
     7  upon the contracting agency by personal service or  by  certified  mail,
     8  return  receipt  requested.  The contracting agency shall be afforded an
     9  opportunity to respond to such complaint in writing.
    10    9. If, after the review of a contractor's minority and  [women  owned]
    11  women-owned business utilization plan or review of a periodic compliance
    12  report  and  after  such  contractor has been afforded an opportunity to
    13  respond to a notice of deficiency issued by the  contracting  agency  in
    14  connection  therewith, it appears that a contractor is failing or refus-
    15  ing to comply with the minority and women-owned  business  participation
    16  requirements as set forth in the state contract and where no waiver from
    17  such  requirements  has  been granted, the contracting agency may file a
    18  written complaint with the director pursuant to  section  three  hundred
    19  sixteen of this article setting forth the facts and circumstances giving
    20  rise  to  the  contracting agency's complaint together with a demand for
    21  relief.  The contracting agency shall serve a  copy  of  such  complaint
    22  upon  the  contractor  by  personal service or by certified mail, return
    23  receipt requested. The contractor shall be afforded  an  opportunity  to
    24  respond to such complaint in writing.
    25    §  6. Section 314 of the executive law, as added by chapter 261 of the
    26  laws of 1988, subdivision 2-a as amended by chapter 175 of the  laws  of
    27  2010,  subdivision  2-b  as  added  by  chapter 409 of the laws of 2018,
    28  subdivision 4 as amended and subdivision 5 as added by  chapter  399  of
    29  the laws of 2014, is amended to read as follows:
    30    § 314. Statewide  certification program. 1. The director shall promul-
    31  gate rules and regulations providing for the establishment of  a  state-
    32  wide certification program including rules and regulations governing the
    33  approval, denial or revocation of any such certification including revo-
    34  cations  for  convictions for fraudulently misrepresenting the status of
    35  minority or women-owned business enterprises.    Such  rules  and  regu-
    36  lations  shall  include,  but  not be limited to, such matters as may be
    37  required to ensure that the established procedures thereunder  shall  at
    38  least  be  in  compliance  with  the code of fair procedure set forth in
    39  section seventy-three of the civil rights law and  consistent  with  the
    40  provisions of article twenty-three of the correction law.
    41    2.  For  the purposes of this article, the office shall be responsible
    42  for verifying businesses as being owned,  operated,  and  controlled  by
    43  minority  group  members or women and for certifying such verified busi-
    44  nesses. The director shall prepare a directory of  certified  businesses
    45  for  use  by  contracting  agencies  and contractors in carrying out the
    46  provisions of this article. The director shall [periodically]  quarterly
    47  update the directory.
    48    2-a.  (a) The director shall establish a procedure enabling the office
    49  to accept New York municipal corporation certification verification  for
    50  minority  and  women-owned  business  enterprise  applicants  in lieu of
    51  requiring the applicant to complete the state certification process. The
    52  director shall promulgate rules and regulations to  set  forth  criteria
    53  for  the acceptance of municipal corporation certification. All eligible
    54  municipal corporation certifications shall require business  enterprises
    55  seeking certification to meet the following standards:

        S. 1508--B                         61
 
     1    (i)  have  at  least  fifty-one  percent  ownership by a minority or a
     2  women-owned enterprise and be owned by United States citizens or  perma-
     3  nent resident aliens;
     4    (ii)  be  an  enterprise  in which the minority and/or women-ownership
     5  interest is real, substantial and continuing;
     6    (iii) be an enterprise in which the  minority  and/or  women-ownership
     7  has  and exercises the authority to control independently the day-to-day
     8  business decisions of the enterprise;
     9    (iv) be an enterprise authorized to do business in this state;
    10    (v) be subject to a physical site inspection to verify  the  fifty-one
    11  percent ownership requirement;
    12    (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
    13  control and operation are relied upon for certification, with a personal
    14  net worth that does not  exceed  three  million  five  hundred  thousand
    15  dollars,  as  adjusted  annually for inflation according to the consumer
    16  price index; and
    17    (vii) be an enterprise that is a small business pursuant  to  subdivi-
    18  sion twenty of section three hundred ten of this article.
    19    (b)  The director shall work with all municipal corporations that have
    20  a municipal minority and  women-owned  business  enterprise  program  to
    21  develop  standards  to  accept state certification to meet the municipal
    22  corporation minority and women-owned business  enterprise  certification
    23  standards.
    24    (c)  The director shall establish a procedure enabling the division to
    25  accept federal certification verification for minority  and  women-owned
    26  business  enterprise  applicants,  provided  said standards comport with
    27  those required by the state minority and women-owned  business  program,
    28  in  lieu  of requiring the applicant to complete the state certification
    29  process. The director shall promulgate  rules  and  regulations  to  set
    30  forth criteria for the acceptance of federal certification.
    31    2-b.  The  director  shall establish a procedure enabling an applicant
    32  who was a military service member to prove his or her race or ethnicity,
    33  date of birth, place of birth and verification of address  for  purposes
    34  of  certification  of the applicant's business as a minority-owned busi-
    35  ness by submission of the DD Form 214 issued to  the  applicant  by  the
    36  United  States  department  of defense upon such applicant's retirement,
    37  separation, or discharge from active duty in the  armed  forces  of  the
    38  United  States,  provided  the DD Form 214 contains such information, in
    39  lieu of requiring the applicant to otherwise prove his or  her  race  or
    40  ethnicity.  The  director  shall promulgate rules and regulations to set
    41  forth criteria for the acceptance of the DD Form 214 by the office.
    42    3. Following application for certification pursuant to  this  section,
    43  the  director  shall  provide  the  applicant with written notice of the
    44  status of the application, including notice of any outstanding deficien-
    45  cies, within [thirty]  fifteen  days.  Within  [sixty]  thirty  days  of
    46  submission  of a final completed application, the director shall provide
    47  the applicant with written notice  of  a  determination  by  the  office
    48  approving  or denying such certification and, in the event of a denial a
    49  statement setting forth the reasons for such  denial.  Upon  a  determi-
    50  nation  denying  or  revoking certification, the business enterprise for
    51  which certification has been so denied or revoked  shall,  upon  written
    52  request  made within thirty days from receipt of notice of such determi-
    53  nation, be entitled to a hearing before an independent  hearing  officer
    54  designated for such purpose by the director. In the event that a request
    55  for  a  hearing is not made within such thirty day period, such determi-
    56  nation shall be deemed to be final.   The  independent  hearing  officer

        S. 1508--B                         62
 
     1  shall conduct a hearing and upon the conclusion of such hearing, issue a
     2  written recommendation to the director to affirm, reverse or modify such
     3  determination  of  the  director.  Such  written recommendation shall be
     4  issued to the parties.  The director, within thirty days, by order, must
     5  accept,  reject or modify such recommendation of the hearing officer and
     6  set forth in writing the reasons therefor. The director  shall  serve  a
     7  copy  of such order and reasons therefor upon the business enterprise by
     8  personal service or by certified  mail  return  receipt  requested.  The
     9  order  of  the  director  shall be subject to review pursuant to article
    10  seventy-eight of the civil practice law and rules.
    11    4. The director may, after performing  an  availability  analysis  and
    12  upon  a finding that industry-specific factors coupled with personal net
    13  worth or small business eligibility requirements  pursuant  to  subdivi-
    14  sions  nineteen and twenty of section three hundred ten of this article,
    15  respectively, have led to the significant exclusion of businesses  owned
    16  by  minority  group members or women in that industry, grant provisional
    17  MWBE certification status to applicants from that  designated  industry,
    18  provided,  however,  that all other eligibility requirements pursuant to
    19  subdivision seven or fifteen of section three hundred ten of this  arti-
    20  cle, as applicable, are satisfied. Any industry-based determination made
    21  under this section by the director shall be made widely available to the
    22  public and posted on the division's website.
    23    5.  With  the exception of provisional MWBE certification, as provided
    24  for in subdivision twenty-three of section three  hundred  ten  of  this
    25  article, all minority and women-owned business enterprise certifications
    26  shall be valid for a period of [three] five years.
    27    §  7. Section 315 of the executive law, as added by chapter 261 of the
    28  laws of 1988, subdivision 3 as amended and subdivisions 4, 5, 6,  and  7
    29  as  added  by  chapter  175  of  the laws of 2010, is amended to read as
    30  follows:
    31    § 315. Responsibilities of contracting agencies. 1.  Each  contracting
    32  agency  shall  be  responsible  for monitoring state contracts under its
    33  jurisdiction, and recommending matters to the office respecting non-com-
    34  pliance with the provisions of this article so that the office may  take
    35  such  action  as  is  appropriate to [insure] ensure compliance with the
    36  provisions of this article, the rules and regulations  of  the  director
    37  issued  hereunder  and  the  contractual provisions required pursuant to
    38  this article. All contracting agencies shall comply with the  rules  and
    39  regulations  of the office and are directed to cooperate with the office
    40  and to furnish to the office such information and assistance as  may  be
    41  required in the performance of its functions under this article.
    42    2.  Each  contracting  agency  shall  provide to prospective bidders a
    43  current copy of the directory of certified businesses, and a copy of the
    44  regulations required pursuant to sections three hundred twelve and three
    45  hundred thirteen of this article at  the  time  bids  or  proposals  are
    46  solicited.
    47    2-a.  Each contracting agency when notifying a contractor of a winning
    48  bid award shall also notify any minority or women-owned business  enter-
    49  prises  affiliated  with such contractor, per the contractor's submitted
    50  utilization plan, of such contractor's receipt of the winning bid award.
    51    3. Each contracting agency shall report to the director  with  respect
    52  to activities undertaken to promote employment of minority group members
    53  and women and promote and increase participation by certified businesses
    54  with  respect to state contracts and subcontracts. Such reports shall be
    55  submitted [periodically, but  not  less  frequently  than  annually,  as
    56  required by the director,] no later than January fifteenth of every year

        S. 1508--B                         63

     1  and  shall  include such information as is necessary for the director to
     2  determine whether the contracting  agency  and  any  contractor  to  the
     3  contracting  agency  have  complied  with  the purposes of this article,
     4  including,  without limitation, a summary of all waivers of the require-
     5  ments of subdivisions six and seven of section three hundred thirteen of
     6  this article allowed by the contracting agency during the period covered
     7  by the report, including a  description  of  the  basis  of  the  waiver
     8  request  [and],  the  rationale  for  granting  any  such waiver and any
     9  instances in which the contracting agency has  deemed  a  contractor  to
    10  have  committed a violation pursuant to section three hundred sixteen of
    11  this article and such other information as the director  shall  require.
    12  Each  agency  shall also include in such annual report whether or not it
    13  has been required to prepare a remedial plan, and, if so, the  plan  and
    14  the  extent  to  which  the agency has complied with each element of the
    15  plan.
    16    4.  The division of minority and women's  business  development  shall
    17  issue  an  annual  report  which: (a) summarizes the report submitted by
    18  each contracting agency pursuant to subdivision three of  this  section;
    19  (b) contains such comparative or other information as the director deems
    20  appropriate,  including  but  not  limited  to  goals compared to actual
    21  participation of minority and women-owned business enterprises in  state
    22  contracting  and  a  listing  of annual goals compared to actual partic-
    23  ipation for each agency, the total  number  of  certified  minority  and
    24  women-owned  businesses  for  that  reporting  year as well as the total
    25  number reported in each of the previous five years, and the total dollar
    26  value of state expenditures on certified minority and women-owned  busi-
    27  ness  contracts and subcontract for the previous five years, to evaluate
    28  the effectiveness of the activities undertaken by each such  contracting
    29  agency  to  promote  increased  participation  by  certified minority or
    30  women-owned businesses with respect to state contracts and subcontracts;
    31  (c) contains a summary of all waivers of the  requirements  of  subdivi-
    32  sions  six  and  seven of section three hundred thirteen of this article
    33  allowed by each contracting agency during  the  period  covered  by  the
    34  report,  including  a description of the basis of the waiver request and
    35  the contracting agency's rationale for granting  any  such  waiver;  (d)
    36  describes  any efforts to create a database or other information storage
    37  and retrieval system containing information relevant to contracting with
    38  minority and women-owned business  enterprises;  [and]  (e)  contains  a
    39  summary  of  (i)  all  determinations of violations of this article by a
    40  contractor or a contracting agency made during the period covered by the
    41  annual report pursuant to section three hundred sixteen-a of this  arti-
    42  cle  and (ii) the penalties or sanctions, if any, assessed in connection
    43  with such determinations and the rationale for such penalties  or  sanc-
    44  tions;  (f) provides a written rationale for instances where an agency's
    45  participation goals or remedial plans do not meet the goals supported by
    46  the two thousand sixteen disparity study; and  (g)  provides  a  written
    47  explanation  of  the  reason  that  agency  expenditures are exempt from
    48  complying with participation goals. Copies of the annual report shall be
    49  provided to the commissioner, the governor, the comptroller, the  tempo-
    50  rary  president of the senate, the speaker of the assembly, the minority
    51  leader of the senate, the minority leader of the assembly and shall also
    52  be made widely available to the public via, among other things, publica-
    53  tion on a website maintained by the division  of  minority  and  women's
    54  business development.
    55    5.  Each agency shall include in its annual report to the governor and
    56  legislature pursuant to section one hundred sixty-four of [the executive

        S. 1508--B                         64

     1  law]  this  chapter:  (a)  its annual goals for contracts with minority-
     2  owned and women-owned business enterprises[,]; (b) the number of  actual
     3  contracts issued to minority-owned and women-owned business enterprises;
     4  [and]  (c)  a summary of all waivers of the requirements of subdivisions
     5  six and seven of section three hundred thirteen of this article  allowed
     6  by   the  reporting  agency  during  the  preceding  year,  including  a
     7  description of the basis of the waiver request  and  the  rationale  for
     8  granting  such  waiver[.  Each  agency shall also include in such annual
     9  report]; (d) whether or not it has been required to prepare  a  remedial
    10  plan,  and,  if  so,  the  plan  and  the extent to which the agency has
    11  complied with each element of the plan; and (e) which  expenditures  are
    12  exempt  from  participation  goals and the rationale for such exemption.
    13  Such report shall also itemize the total value of design-build contracts
    14  used by each contracting agency when applicable,  and  each  contracting
    15  agency authorized to enter into design-build contracts shall itemize the
    16  rate  of  minority and women-owned business enterprises participation on
    17  design-build contracts, design-bid-build contracts, as well as the agen-
    18  cy's overall participation rate.
    19    6. Each contracting agency that substantially fails to meet the  goals
    20  supported by the disparity study, as defined by regulation of the direc-
    21  tor,  shall be required to submit to the director a remedial action plan
    22  to remedy such failure.
    23    7. If it is determined by the director that any agency has  failed  to
    24  act  in  good  faith  to implement the remedial action plan, pursuant to
    25  subdivision six of this section within  one  year,  the  director  shall
    26  provide written notice of such a finding, which shall be publicly avail-
    27  able, and direct implementation of remedial actions to:
    28    (a) assure that sufficient and effective solicitation efforts to women
    29  and minority-owned business enterprises are being made by said agency;
    30    (b)  divide  contract  requirements,  when economically feasible, into
    31  quantities that will expand the participation  of  women  and  minority-
    32  owned business enterprises;
    33    (c) eliminate extended experience or capitalization requirements, when
    34  programmatically  and  economically  feasible,  that will expand partic-
    35  ipation by women and minority-owned business enterprises;
    36    (d) identify specific proposed contracts as particularly attractive or
    37  appropriate for  participation  by  women  and  minority-owned  business
    38  enterprises  with such identification to result from and be coupled with
    39  the efforts of paragraphs (a), (b), and (c) of this subdivision; and
    40    (e) upon a finding by the director that an agency has failed  to  take
    41  affirmative measures to implement the remedial plan and to follow any of
    42  the  remedial  actions  set forth by the director, and in the absence of
    43  any objective progress towards the agency's goals, require some  or  all
    44  of  the  agency's procurement, for a specified period of time, be placed
    45  under the direction and control of another agency or agencies.
    46    § 8. Intentionally Omitted.
    47    § 9. Subdivision 6 of section 163 of the state finance law, as amended
    48  by chapter 569 of the laws of 2015, is amended to read as follows:
    49    6. Discretionary buying thresholds. Pursuant to guidelines established
    50  by the state procurement council: the commissioner may purchase services
    51  and commodities in an amount not exceeding eighty-five thousand  dollars
    52  without  a  formal  competitive  process;  state  agencies  may purchase
    53  services and commodities in  an  amount  not  exceeding  fifty  thousand
    54  dollars  without  a  formal  competitive process; and state agencies may
    55  purchase commodities or services from small business concerns  or  those
    56  certified  pursuant  to articles fifteen-A and seventeen-B of the execu-

        S. 1508--B                         65
 
     1  tive law, or commodities or technology that are recycled  or  remanufac-
     2  tured,  or  commodities that are food, including milk and milk products,
     3  grown, produced or harvested in New York state in an amount not  exceed-
     4  ing  [two]  four  hundred  thousand dollars without a formal competitive
     5  process.
     6    § 10. Subparagraph (i) of paragraph (b) of subdivision  3  of  section
     7  2879  of  the  public  authorities law, as amended by chapter 174 of the
     8  laws of 2010, is amended to read as follows:
     9    (i) for the selection of such contractors on a competitive basis,  and
    10  provisions  relating  to  the circumstances under which the board may by
    11  resolution  waive  competition,  including,  notwithstanding  any  other
    12  provision  of  law  requiring  competition,  the  purchase  of  goods or
    13  services from small business concerns [or] those certified  as  minority
    14  or  women-owned  business  enterprises,  or goods or technology that are
    15  recycled or remanufactured, in  an  amount  not  to  exceed  [two]  four
    16  hundred thousand dollars without a formal competitive process;
    17    §  11.  Paragraph  (a)  of subdivision 3 of section 139-j of the state
    18  finance law is amended by adding two new subparagraphs 10 and 11 to read
    19  as follows:
    20    (10) Complaints by minority-owned business enterprises or  women-owned
    21  business  enterprises, certified as such by the division of minority and
    22  women's business development, to the minority and  women-owned  business
    23  enterprise  statewide  advocate  concerning  the  procuring governmental
    24  entity's failure to  comply  with  the  requirements  of  section  three
    25  hundred fifteen of the executive law;
    26    (11)  Communications  between  the  minority  and women-owned business
    27  enterprise statewide advocate and the procuring governmental  entity  in
    28  furtherance of an investigation of the minority and women-owned business
    29  enterprise statewide advocate pursuant to section three hundred twelve-a
    30  of the executive law.
    31    §  12.  Subdivision  6  of  section  8 of the public buildings law, as
    32  amended by chapter 840 of the laws  of  1980,  is  amended  to  read  as
    33  follows:
    34    6.  All  contracts  for amounts in excess of five thousand dollars for
    35  the work of construction, reconstruction, alteration, repair or improve-
    36  ment of any state building, whether constructed  or  to  be  constructed
    37  must  be  offered  for  public  bidding and may be awarded to the lowest
    38  responsible and reliable bidder, as will best promote the public  inter-
    39  est,  by  the  said  department or other agency with the approval of the
    40  comptroller for the whole or any part of the work to be performed,  and,
    41  in the discretion of the said department or other agency, such contracts
    42  may be sublet; provided, however, that no such contract shall be awarded
    43  to  a  bidder  other  than  the  lowest responsible and reliable bidder,
    44  except for certain contracts awarded to minority or women-owned business
    45  enterprises as provided herein, without  the  written  approval  of  the
    46  comptroller.  When a proposal consists of unit prices of items specified
    47  to be performed, except for certain contracts  awarded  to  minority  or
    48  women-owned  business  enterprises  as  provided  herein, the lowest bid
    49  shall be deemed to be that which specifically states  the  lowest  gross
    50  sum for which the entire work will be performed, including all the items
    51  specified in the proposal thereof. The lowest bid shall be determined by
    52  the  commissioner  of general services on the basis of the gross sum for
    53  which the entire work will be performed, arrived at by a correct  compu-
    54  tation  of  all the items specified in the proposal therefor at the unit
    55  prices contained in the bid.  Provided, however, that where a  responsi-
    56  ble  and  reliable  bidder certified as a minority-owned business enter-

        S. 1508--B                         66
 
     1  prise or women-owned business enterprise pursuant to  article  fifteen-A
     2  of  the executive law submits a bid of one million four hundred thousand
     3  dollars or less, as adjusted annually for  inflation  beginning  January
     4  first, two thousand twenty, the bid of the minority or women-owned busi-
     5  ness enterprise shall be deemed the lowest bid unless it exceeds the bid
     6  of any other bidder by more than ten percent.
     7    § 13. Intentionally Omitted.
     8    § 14. The opening paragraph of subdivision (h) of section 121 of chap-
     9  ter  261  of  the laws of 1988, amending the state finance law and other
    10  laws relating to the  New  York  state  infrastructure  trust  fund,  as
    11  amended  by  section 1 of part OOO of chapter 59 of the laws of 2018, is
    12  amended to read as follows:
    13    The provisions of sections sixty-two through  sixty-six  of  this  act
    14  shall expire April fifteenth, two thousand twenty-four, provided, howev-
    15  er, that if the statewide disparity study regarding the participation of
    16  minority   and  women-owned  business  enterprises  in  state  contracts
    17  required pursuant to subdivision 1 of section 312-a of the executive law
    18  is completed and delivered to the governor and  the  legislature  on  or
    19  before  August  fifteenth two thousand twenty-three, then the provisions
    20  of sections sixty-two through sixty-six of this act shall expire and  be
    21  deemed  repealed on December thirty-first, two thousand [nineteen] twen-
    22  ty-four, except that:
    23    § 15. The executive law is amended by adding a new article 28 to  read
    24  as follows:
 
    25                                 ARTICLE 28
    26                         WORKFORCE DIVERSITY PROGRAM

    27  Section 821. Definitions.
    28          822. Workforce participation goals.
    29          823. Reporting.
    30          824. Enforcement.
    31          825. Powers and responsibilities of the division.
    32          826. Severability.
    33    § 821. Definitions. As used in this article, the following terms shall
    34  have the following meanings:
    35    1.  "Contractor"  shall  mean  an  individual,  a business enterprise,
    36  including a sole proprietorship, a partnership, a  corporation,  a  not-
    37  for-profit  corporation,  or  any  other party to a state contract, or a
    38  bidder in conjunction with the award of a state contract or  a  proposed
    39  party to a state contract.
    40    2. "Department" shall mean the department of labor.
    41    3.  "Director" shall mean the director of the division of minority and
    42  women's business development.
    43    4. "Disparity study" shall mean the most recent study  of  disparities
    44  between  the  utilization  of  minority  group  members and women in the
    45  performance of state contracts and the availability  of  minority  group
    46  members and women to perform such work by the director pursuant to arti-
    47  cle fifteen-A of this chapter.
    48    5.  "Division"  shall  mean  the  department of economic development's
    49  division of minority and women's business development.
    50    6. "List of non-compliant contractors" shall mean a list  of  contrac-
    51  tors and subcontractors, maintained by the division and published on the
    52  website  of the division, that are ineligible to participate as contrac-
    53  tors or subcontractors in the performance of state contracts for a  term
    54  determined by the director.

        S. 1508--B                         67
 
     1    7.  "Minority  group  member"  shall  mean  a United States citizen or
     2  permanent resident alien who is and can demonstrate membership in one of
     3  the following groups:
     4    (a)  Black  persons  having origins in any of the Black African racial
     5  groups;
     6    (b) Hispanic/Latino  persons  of  Mexican,  Puerto  Rican,  Dominican,
     7  Cuban,  Central  or  South American of either Indian or Hispanic origin,
     8  regardless of race;
     9    (c) Native American or Alaskan native persons having origins in any of
    10  the original peoples of North America;
    11    (d) Asian and Pacific Islander persons having origins in  any  of  the
    12  Far  East  countries,  South  East  Asia, the Indian subcontinent or the
    13  Pacific Islands.
    14    8. "Non-compliant contractor" shall mean a contractor or subcontractor
    15  that has failed to make a  good  faith  effort  to  meet  the  workforce
    16  participation  goal  established  by a state agency on a state contract,
    17  and has been listed  by  the  division  on  its  list  of  non-compliant
    18  contractors.
    19    9.  "State agency" shall mean (a)(i) any state department, or (ii) any
    20  division, board, commission or bureau of any state department, or  (iii)
    21  the  state  university  of New York and the city university of New York,
    22  including all their constituent units except community colleges and  the
    23  independent  institutions  operating  statutory  or contract colleges on
    24  behalf of the state, or (iv) a board, a majority of  whose  members  are
    25  appointed by the governor or who serve by virtue of being state officers
    26  or  employees as defined in subparagraph (i), (ii) or (iii) of paragraph
    27  (i) of subdivision one of section seventy-three of the  public  officers
    28  law.
    29    (b)  a "state authority," as defined in subdivision one of section two
    30  of the public authorities law, and the following:
    31  Albany County Airport Authority;
    32  Albany Port District Commission;
    33  Alfred, Almond, Hornellsville Sewer Authority;
    34  Battery Park City Authority;
    35  Cayuga County Water and Sewer Authority;
    36  (Nelson A. Rockefeller) Empire State Plaza Performing Arts Center
    37  Corporation;
    38  Industrial Exhibit Authority;
    39  Livingston County Water and Sewer Authority;
    40  Long Island Power Authority;
    41  Long Island Rail Road;
    42  Long Island Market Authority;
    43  Manhattan and Bronx Surface Transit Operating Authority;
    44  Metro-North Commuter Railroad;
    45  Metropolitan Suburban Bus Authority;
    46  Metropolitan Transportation Authority;
    47  Natural Heritage Trust;
    48  New York City Transit Authority;
    49  New York Convention Center Operating Corporation;
    50  New York State Bridge Authority;
    51  New York State Olympic Regional Development Authority;
    52  New York State Thruway Authority;
    53  Niagara Falls Public Water Authority;
    54  Niagara Falls Water Board;
    55  Port of Oswego Authority;
    56  Power Authority of the State of New York;

        S. 1508--B                         68
 
     1  Roosevelt Island Operating Corporation;
     2  Schenectady Metroplex Development Authority;
     3  State Insurance Fund;
     4  Staten Island Rapid Transit Operating Authority;
     5  State University Construction Fund;
     6  Syracuse Regional Airport Authority;
     7  Triborough Bridge and Tunnel Authority;
     8  Upper Mohawk Valley Regional Water Board;
     9  Upper Mohawk Valley Regional Water Finance Authority;
    10  Upper Mohawk Valley Memorial Auditorium Authority;
    11  Urban Development Corporation and its subsidiary corporations.
    12    (c)  the  following only to the extent of state contracts entered into
    13  for its own account or for the benefit of a state agency as  defined  in
    14  paragraph (a) or (b) of this subdivision:
    15  Dormitory Authority of the State of New York;
    16  Facilities Development Corporation;
    17  New York State Energy Research and Development Authority;
    18  New York State Science and Technology Foundation.
    19    10.  "State  contract" shall mean: (a) a written agreement or purchase
    20  order instrument, providing for a total expenditure in excess  of  fifty
    21  thousand  dollars, whereby a state agency is committed to expend or does
    22  expend or grant funds in return for labor, services  including  but  not
    23  limited  to  legal, financial and other professional services, supplies,
    24  equipment,  materials  or  any  combination  of  the  foregoing,  to  be
    25  performed on behalf of, for, or rendered or furnished to the state agen-
    26  cy;  (b)  a  written agreement in excess of one hundred thousand dollars
    27  whereby a state agency is committed to expend or does  expend  or  grant
    28  funds  for the acquisition, construction, demolition, replacement, major
    29  repair or renovation of real property and improvements thereon; and  (c)
    30  a  written  agreement  in excess of one hundred thousand dollars whereby
    31  the owner of a state assisted housing project is committed to expend  or
    32  does   expend  funds  for  the  acquisition,  construction,  demolition,
    33  replacement, major repair or renovation of real  property  and  improve-
    34  ments thereon for such project.
    35    11.  "Subcontractor"  shall mean any individual or business enterprise
    36  that provides goods or services to any individual or business for use in
    37  the performance of a state  contract,  whether  or  not  such  goods  or
    38  services are provided to a party to a state contract.
    39    §  822.  Workforce participation goals.  1. The director, in consulta-
    40  tion with the department,  shall  develop  aspirational  goals  for  the
    41  utilization  of  minority  group members and women in any trade, profes-
    42  sion, occupation, or categories thereof.
    43    (a) Aspirational goals for the utilization of minority  group  members
    44  and  women  must  set forth the expected participation of minority group
    45  members and women in each trade, profession, and occupation, or  catego-
    46  ries  thereof  and shall be expressed as a percentage of the total hours
    47  of work to be performed by each trade, profession, and occupation  based
    48  on  the  availability  of  minority  group members and women within each
    49  trade, profession, and occupation or categories thereof.
    50    (i) The aspirational goals shall set forth separate levels of expected
    51  participation by men and women for each minority group, and  for  Cauca-
    52  sian  women,  in  each  trade,  profession, and occupation of categories
    53  thereof.
    54    (ii) Aspirational goals for the  expected  participation  of  minority
    55  group  members  and  women  shall  be established for each county of the
    56  state. The director may establish aspirational goals  for  the  expected

        S. 1508--B                         69
 
     1  participation  of  minority  group  members and women for municipalities
     2  where the director deems feasible and appropriate.
     3    (iii)  The  director  shall,  in  establishing the aspirational goals,
     4  consider the findings of the most recent disparity study and  any  rele-
     5  vant data published by the United States Census Bureau.
     6    (b)  The  director  shall  update the aspirational goals on a periodic
     7  basis, no less than biannually.
     8    2. State agencies shall, for each invitation  for  bids,  request  for
     9  proposals,  or  other  solicitation  that  will result in the award of a
    10  state contract, set forth the expected degree of workforce participation
    11  by minority group members and women.
    12    (a) Each workforce participation goal established by  a  state  agency
    13  shall  set  forth  the expected level of participation by minority group
    14  members and women in the performance  of  each  trade,  profession,  and
    15  occupation required in the performance of the contract.
    16    (b)  Goals  for  the participation of minority group members and women
    17  shall set forth separate goals for each of the following groups in  each
    18  trade, profession, and occupation or categories thereof:
    19    (i) Black men;
    20    (ii) Black women;
    21    (iii) Hispanic men;
    22    (iv) Hispanic women;
    23    (v) Native American men;
    24    (vi) Native American women;
    25    (vii) Asian men;
    26    (viii) Asian women;
    27    (ix) Caucasian women.
    28    (c)  In  establishing  workforce  participation  goals, state agencies
    29  shall consider factors including, but not limited to:
    30    (i) the findings of the disparity study;
    31    (ii) any relevant data published by the United States  Census  Bureau;
    32  and
    33    (iii)  if  applicable,  any aspirational goal established by the divi-
    34  sion.
    35    (d) In any case where a state agency establishes a  workforce  partic-
    36  ipation  goal on an invitation for bids, request for proposals, or other
    37  solicitation that will result in the award  of  a  state  contract  that
    38  deviates from the aspirational goal for work or service in the county or
    39  municipality  in  which the work or service will be performed, the state
    40  agency shall document numerical evidence demonstrating that the applica-
    41  tion of the aspirational goal  would  not  be  practical,  feasible,  or
    42  appropriate.
    43    3.  Every contractor responding to an invitation for bids, request for
    44  proposals, or other solicitation that will result  in  the  award  of  a
    45  state contract subject to workforce participation goals pursuant to this
    46  section  shall  agree  to make a good faith effort to achieve such work-
    47  force participation goal or request a waiver of such goal.
    48    (a) A contractor that certifies that it will make a good faith  effort
    49  to  achieve  a  workforce  participation  goal  shall  provide  with its
    50  response to the applicable invitation for bids, request  for  proposals,
    51  or other solicitation:
    52    (i) A certification stating that the contractor will make a good faith
    53  effort  to  achieve the applicable workforce participation goal and will
    54  contractually require any subcontractors to the  contractor  to  make  a
    55  good faith effort to achieve the applicable workforce participation goal
    56  in  any  subcontracted  work, which certification shall acknowledge that

        S. 1508--B                         70

     1  failure by the contractor or any of its subcontractors to  make  a  good
     2  faith  effort to achieve the applicable workforce participation goal may
     3  result in a determination by  the  contracting  state  agency  that  the
     4  contractor or its subcontractor is a non-compliant contractor;
     5    (ii)  The level of anticipated participation by minority group members
     6  and women as employees to the contractor, or, if the  state  agency  has
     7  specifically  indicated  that such documentation is not required as part
     8  of the response to the invitation for bids, request  for  proposals,  or
     9  other solicitation, a date certain for the submission of such documenta-
    10  tion after the award of the state contract;
    11    (iii)  A list of all subcontractors anticipated to perform work on the
    12  state contract and the level of anticipated  participation  by  minority
    13  group  members  and women as employees to each subcontractor, or, if the
    14  state agency has specifically indicated that such documentation  is  not
    15  required as part of the response to the invitation for bids, request for
    16  proposals,  or  other solicitation, a date certain for the submission of
    17  such documentation after the award of the state contract; and
    18    (iv) Such other information as  the  contracting  state  agency  shall
    19  require.
    20    (b)  A  contractor that requests a waiver of a workforce participation
    21  goal shall provide with its response to the  applicable  invitation  for
    22  bids, request for proposals, or other solicitation:
    23    (i)  Numerical evidence setting forth why the achievement of the work-
    24  force participation goal is not practical, feasible, or  appropriate  in
    25  light  of  the  trades, professions, and occupations required to perform
    26  the work of the state contract;
    27    (ii) Documentation of the contractor's efforts,  and  any  efforts  by
    28  subcontractors  to  the contractor, to promote the inclusion of minority
    29  group members and women in trades, professions, and occupations required
    30  in the performance of the state contract;
    31    (iii) The maximum feasible level of participation  by  minority  group
    32  members  and  women  in each of the trades, professions, and occupations
    33  required in the performance of the work of the state contract;
    34    (iv) The level of anticipated participation by minority group  members
    35  and women as employees to the contractor;
    36    (v)  A  list  of all subcontractors anticipated to perform work on the
    37  state contract and the level of anticipated  participation  by  minority
    38  group members and women as employees to each subcontractor; and
    39    (vi)  Any  other relevant information evidencing that the contractor's
    40  achievement of the workforce participation goal would not be  practical,
    41  feasible, or appropriate.
    42    4.  A  state  agency  shall not award a state contract to a contractor
    43  unless the contractor has (i) certified that it will make a  good  faith
    44  effort  to  achieve  the  applicable  workforce  participation  goal and
    45  provided documentation of the workforce anticipated to perform the  work
    46  of the state contract or (ii) submitted a waiver request which the state
    47  agency  deems  to reflect the maximum feasible participation of minority
    48  group members and women in each of the trades, professions, and  occupa-
    49  tions required in performance of the work of the state contract.
    50    (a)  In  the event that a contractor submits a certification or waiver
    51  request that is accepted by the state agency,  the  state  agency  shall
    52  establish  in  the state contract the expected level of participation by
    53  minority group members and women in each of the trades, professions, and
    54  occupations required in performance of the work of the  state  contract,
    55  require  that  the  contractor  make  good faith efforts to achieve such
    56  workforce participation goals, require that the contractor  require  any

        S. 1508--B                         71
 
     1  subcontractors  to  make  a  good faith effort to achieve the applicable
     2  workforce participation goal in any  subcontracted  work,  and  indicate
     3  that  the failure of the contractor or any of its subcontractors to make
     4  a  good  faith  effort  to  achieve the workforce participation goal may
     5  result in the contractor or subcontractor being deemed  a  non-compliant
     6  contractor.
     7    (b)  In  the  event that a contractor fails to submit a certification,
     8  waiver request, or any other information required by the  state  agency,
     9  or  the  state agency determines that a contractor's waiver request does
    10  not demonstrate that the  applicable  workforce  participation  goal  is
    11  impractical, unfeasible, or inappropriate, the state agency shall notify
    12  the  contractor  of the deficiency in writing and provide the contractor
    13  five business days to remedy the  noticed  deficiency.  A  state  agency
    14  shall  reject  any  bid or proposal of a contractor that fails to timely
    15  respond to a notice of deficiency or to provide documentation  remedying
    16  the deficiency to the satisfaction of the state agency.
    17    (i)  Where  failure to remedy any notified deficiency in the workforce
    18  utilization plan is a ground for disqualification, that  issue  and  all
    19  other  grounds  for  disqualification  shall be stated in writing by the
    20  contracting state agency. The contractor shall be entitled to an  admin-
    21  istrative  hearing,  on  the record, involving all grounds stated by the
    22  contracting state agency in its notice of the contractor's disqualifica-
    23  tion. Such hearing shall be conducted by the  appropriate  authority  of
    24  the  contracting agency to review the determination of disqualification.
    25  A final administrative determination made following such  hearing  shall
    26  be  reviewable  in a proceeding commenced under article seventy-eight of
    27  the civil practice law and  rules,  provided  that  such  proceeding  is
    28  commenced  within  thirty  days  of  the  notice given by certified mail
    29  return receipt requested rendering such  final  administrative  determi-
    30  nation.  Such proceeding shall be commenced in the supreme court, appel-
    31  late division, third department and such proceeding shall  be  preferred
    32  over  all  other civil causes except election causes, and shall be heard
    33  and determined in preference to all other civil business pending  there-
    34  in,  except  election matters, irrespective of position on the calendar.
    35  Appeals taken to the court of appeals of the state of New York shall  be
    36  subject to the same preference.
    37    §  823.  Reporting.  1.  State  contracts shall require contractors to
    38  submit, and to require any subcontractors to submit, to the  contracting
    39  state  agency  reports  documenting the hours worked by employees of the
    40  contractor and any subcontractors in the performance of the work of  the
    41  state  contract. Such reports shall be submitted no less frequently than
    42  monthly for state contracts for construction and quarterly for all other
    43  state contracts.  Such  reports  shall  identify  the  race,  ethnicity,
    44  gender, and trade, profession, or occupation of each employee performing
    45  work on a state contract.
    46    2.  State  agencies  shall submit periodic reports to the director, or
    47  the designee of the director, concerning the participation  of  minority
    48  group members and women in state contracts let by such agencies and such
    49  state  agencies'  compliance  with  this  article. Such reports shall be
    50  submitted at such time, and include such information,  as  the  director
    51  shall  require in regulations. State agencies shall make available their
    52  facilities, books, and records for inspection, upon  reasonable  notice,
    53  by the director or the director's designee.
    54    3.  The department shall provide such assistance as the director shall
    55  require in carrying out the requirements of this section.

        S. 1508--B                         72
 
     1    § 824. Enforcement.  1. Where it appears  that  a  contractor  cannot,
     2  after  a  good  faith effort, meet the workforce participation goals set
     3  forth in a particular state contract, a contractor may  file  a  written
     4  application  with  the  contracting state agency requesting a partial or
     5  total  waiver  of  such  requirements.  Such request shall set forth the
     6  reasons for such contractor's inability to meet  the  workforce  partic-
     7  ipation  goal, specifically describe the reasons for any deviations from
     8  the anticipated workforce participation goal set forth in  the  contrac-
     9  tor's  bid  or  proposal leading to the award of the state contract, and
    10  describe the efforts by the contractor and any subcontractors to achieve
    11  the maximum feasible participation of minority group members  and  women
    12  in the performance of the work of the state contract. Where the contrac-
    13  tor's  inability  to achieve the workforce participation goal on a state
    14  contract is attributable to the failure of one or more subcontractors to
    15  make good faith efforts to achieve the maximum feasible participation of
    16  minority group members and women in the performance of the work  of  the
    17  state  contract,  the  contractor  shall  identify such subcontractor or
    18  subcontractors to the contracting state agency.
    19    2. A state agency shall grant a request  for  a  waiver  of  workforce
    20  participation goals on a state contract where:
    21    (a)  The  contractor  demonstrates that the contractor and its subcon-
    22  tractors made good faith efforts to achieve the workforce  participation
    23  goal on the state contract, and that insufficient minority group members
    24  or  women  were  available  in  the trades, professions, and occupations
    25  required to perform the work of the state contract; or
    26    (b) The contractor contractually required each of  its  subcontractors
    27  to  make  a  good  faith  effort to achieve the maximum feasible partic-
    28  ipation of minority group members and women in the  performance  of  the
    29  subcontracted  work, periodically monitored such subcontractors' deploy-
    30  ment of minority group members and  women  in  the  performance  of  the
    31  subcontracted  work, provided notice to such subcontractors of any defi-
    32  ciencies in their deployment of minority group members and women in  the
    33  performance  of such subcontracted work, and could not achieve the work-
    34  force participation goal for one or more trades, professions, or occupa-
    35  tions without the good faith efforts of such subcontractors.
    36    3. Where a state agency denies a contractor's request for a waiver  of
    37  workforce participation goals pursuant to this section, the state agency
    38  shall  recommend  to the director and the department that the contractor
    39  be deemed a non-compliant contractor.
    40    4. Where a state agency grants a request for  a  waiver  of  workforce
    41  participation  goals  pursuant  to  this  section  based  on one or more
    42  subcontractors' failure to make good faith efforts to achieve the  maxi-
    43  mum  feasible  participation  of minority group members and women in the
    44  performance of the subcontracted work, the state agency shall  recommend
    45  to  the  director  and the department that the subcontractor be deemed a
    46  non-compliant contractor.
    47    5. Upon receipt of  a  recommendation  from  a  state  agency  that  a
    48  contractor or subcontractor should be deemed a non-compliant contractor,
    49  the  director  shall,  with the assistance of the department, review the
    50  facts and circumstances forming the  basis  of  the  recommendation  and
    51  issue a determination as to whether or not the contractor or subcontrac-
    52  tor should be deemed a non-compliant contractor and, if so, the duration
    53  of  such  status as a non-compliant contractor. In determining the dura-
    54  tion of a contractor's or  subcontractor's  status  as  a  non-compliant
    55  contractor, the director shall consider:

        S. 1508--B                         73

     1    (i) whether the contractor or subcontractor has previously been deemed
     2  a non-compliant contractor;
     3    (ii)  the  number of hours of expected participation by minority group
     4  members and women lost as a result of the  contractor's  or  subcontrac-
     5  tor's  failure  to  make  good  faith  efforts to include minority group
     6  members or women in the performance of one or more state contracts; and
     7    (iii) whether the contractor or subcontractor has offered  to  provide
     8  employment opportunities, training, or other remedial benefits to minor-
     9  ity  group  members or women in relevant trades, professions, or occupa-
    10  tions.
    11    6. A contractor or subcontractor deemed a non-compliant contractor  by
    12  the director may request an administrative hearing before an independent
    13  hearing  officer  to appeal the determination of the director. The deci-
    14  sion of the hearing officer shall be final and may only  be  vacated  or
    15  modified  as provided in article seventy-eight of the civil practice law
    16  and rules upon an application made within  the  time  provided  by  such
    17  article.
    18    7.  Upon a final determination that a contractor or subcontractor is a
    19  non-compliant contractor, the director  shall  list  the  contractor  or
    20  subcontractor  as  such  on  its  website  and indicate the term of such
    21  contractor's or subcontractor's status as a non-compliant contractor.  A
    22  non-compliant  contractor  shall  be  ineligible  to  participate  as  a
    23  contractor or subcontractor on any state contract.
    24    § 825. Powers and responsibilities of the division.   1. The  director
    25  shall  post to the website of the division on or before October first of
    26  each year the aspirational goals for the utilization of  minority  group
    27  members  and  women in certain trades, professions and/or occupations as
    28  required pursuant to section eight hundred twenty-two of this article.
    29    2. The director shall promulgate rules and regulations for the  imple-
    30  mentation of this article, including, but not limited to, procedures for
    31  the  submission  of  certifications  and  workforce utilization plans by
    32  contractors, criteria for granting waivers  of  workforce  participation
    33  goals,  and  the  contents of reports by state agencies concerning their
    34  implementation of the requirements of this article.
    35    3. The division shall, from  time  to  time,  review  the  facilities,
    36  books,  and records of state agencies to ascertain the accuracy of their
    37  reports and their compliance with the requirements of this article.  The
    38  department  shall  provide such assistance as the director shall require
    39  in carrying out the requirements of this section.
    40    § 826. Severability. If any clause, sentence,  paragraph,  section  or
    41  part  of this article shall be adjudged by any court of competent juris-
    42  diction to be invalid, the judgment shall not affect, impair or  invali-
    43  date  the  remainder  thereof, but shall be confined in its operation to
    44  the clause, sentence, paragraph, section or part of this article direct-
    45  ly involved in the controversy in which the  judgment  shall  have  been
    46  rendered.
    47    §  16.  This act shall take effect immediately, and shall be deemed to
    48  have been in full force and effect on and after April 1, 2019; provided,
    49  however, that:
    50    (a) the amendments to article 15-A  of  the  executive  law,  made  by
    51  sections  one,  one-a,  one-b, two, three, four, five, six and seven  of
    52  this act, shall not affect the expiration  of  such  article  and  shall
    53  expire and be deemed expired therewith;
    54    (b)  the  amendments  to section 163 of the state finance law, made by
    55  section nine of this act, shall not affect the expiration and repeal  of
    56  such section, and shall expire and be deemed repealed therewith;

        S. 1508--B                         74
 
     1    (c)  the amendments to section 139-j of the state finance law, made by
     2  section eleven of this act, shall not affect the expiration  and  repeal
     3  of such section, and shall expire and be deemed repealed therewith;
     4    (d) subdivision 2-b of section 314 of the executive law, as amended by
     5  section  six  of this act, shall take effect on the same date and in the
     6  same manner as section 1 of chapter  409  of  the  laws  of  2018  takes
     7  effect;
     8    (e)  section  fifteen  of this act shall expire and be deemed repealed
     9  December 31, 2024; and
    10    (f) provided that the division of minority and women's business devel-
    11  opment shall notify the legislative bill drafting  commission  upon  the
    12  occurrence  of  the enactment of the legislation provided for in section
    13  fourteen of this act in order that the commission may maintain an  accu-
    14  rate  and timely effective data base of the official text of the laws of
    15  the state of New York in furtherance of effectuating the  provisions  of
    16  section  44  of the legislative law and section 70-b of the public offi-
    17  cers law.
 
    18                                   PART BB
 
    19                            Intentionally Omitted
 
    20                                   PART CC
 
    21                            Intentionally Omitted
 
    22                                   PART DD
 
    23    Section 1. Short title. This act shall be known and may  be  cited  as
    24  the "Gateway Development Commission Act".
    25    §  2.  Gateway Development Commission. 1. (a) Legislative findings and
    26  intent. The Legislature finds and declares that: the State of New Jersey
    27  and the State of New York and their respective citizens share  a  common
    28  concern  to  preserve the functionality and strengthen the resiliency of
    29  long-distance and commuter rail infrastructure between  New  Jersey  and
    30  New  York, including passenger rail infrastructure owned, controlled, or
    31  utilized by the National Railroad Passenger Corporation, also  known  as
    32  "Amtrak";  the  two states and their respective citizens share the bene-
    33  fits of existing interstate passenger rail  infrastructure  between  the
    34  two  states,  including  the  existing  North  River  Tunnel; interstate
    35  passenger rail service and infrastructure is vital to the  economies  of
    36  New  Jersey  and  New  York;,  because of the passage of time and damage
    37  caused by natural disasters, both states recognize the  existing  inter-
    38  state  passenger rail infrastructure, including the existing North River
    39  Tunnel, is at risk of system failures that  could  result  in  prolonged
    40  service  disruptions that would severely damage the economies of the two
    41  states and many other participants  in  the  economy  of  the  Northeast
    42  Corridor  both  states  recognize  the urgent need to undertake projects
    43  necessary to create passenger rail  capacity  under  the  Hudson  River,
    44  rehabilitate  passenger  rail infrastructure, maintain current levels of
    45  long-distance and commuter rail  service  between  the  two  states  and
    46  provide  additional  reliability,  safety  and security; the citizens of
    47  both states will share the benefits of expanded capacity  and  rehabili-
    48  tated  passenger  rail  infrastructure between the two states; and there
    49  has been a long history of cooperation among  state  and  local  govern-
    50  mental  entities, Amtrak, and various private organizations and individ-

        S. 1508--B                         75
 
     1  uals in the two states to  ensure  the  preservation  of  a  variety  of
     2  passenger rail service options.
     3    (b)  The  legislature  therefore  determines  that  there is a need to
     4  endorse and formalize that bi-state cooperative effort  to  help  ensure
     5  that the functionality of long-distance and commuter rail infrastructure
     6  between  New  Jersey  and  New  York and thence throughout the Northeast
     7  Corridor, is preserved and maintained for the benefit of the economy  of
     8  New  Jersey  and  New  York and for the well-being of present and future
     9  generations of citizens in both states;  and  that  the  creation  of  a
    10  bi-state  commission  that  shall be a body corporate and politic estab-
    11  lished by the State of New Jersey and the State of New York,  acting  in
    12  the  public interest and exercising essential governmental functions, is
    13  an appropriate means to accomplish these very important goals and is not
    14  intended to impair, limit, diminish,  or  otherwise  affect  any  right,
    15  power,  or  jurisdiction  of the United States of America or any depart-
    16  ment, branch, agency, court, bureau, or  other  instrumentality  thereof
    17  with  respect  to  any  matter, or grant or confer any right or power on
    18  such bi-state commission, or any officer or trustee thereof, to regulate
    19  commerce between the states.
    20    (c) It is the intention of the  legislature  that  the  commission  so
    21  created  constitute  an  institution  which  has been established by the
    22  states to effectuate a public purpose and is therefore eligible to apply
    23  for financial assistance from the United  States  government,  including
    24  the agencies thereof.
    25    2.  Definitions.  Except where different meanings are expressly speci-
    26  fied in subsequent provisions of this section, the following terms shall
    27  have the following meanings:
    28    (a) "Act" means the Gateway Development Commission act.
    29    (b) "Amtrak" means the  National  Railroad  Passenger  Corporation,  a
    30  corporation  organized  under 49 U.S.C. § 24101 et. seq. and the laws of
    31  the District of Columbia.
    32    (c) "Board" means the board of commissioners of the commission.
    33    (d) "Commission" shall mean the gateway development  commission  which
    34  is established pursuant to this act.
    35    (e)  "Facilitate"  means  the planning, designing, financing, acquisi-
    36  tion,  development,  redevelopment,  expansion,   construction,   recon-
    37  struction,  replacement, approval of works, lease, leaseback, licensing,
    38  cosigning,  asset  management,  optimization,  rehabilitation,   repair,
    39  alteration,  improvement,  extension,  management,  ownership,  use  and
    40  effectuation of the matters described in this act. "Facilitation"  shall
    41  have a concomitant meaning.
    42    (f)  "Full Funding" means the sum of commitments to fund, from sources
    43  deemed by the Commission to be creditworthy,  plus  Commission  cash-on-
    44  hand,  plus  any  institution of a tariff or an agreement to impose user
    45  fees not subject to further approvals (if any), plus such other  sources
    46  of funding deemed certain to be available as and when required, found by
    47  the  Commission to be sufficient to facilitate the project or a discrete
    48  component thereof which is beneficial to the public.
    49    (g) "Meeting" means any gathering, whether corporeal or  by  means  of
    50  communication  equipment,  which  is attended by, or open to, the Board,
    51  held with the intent, on the part of the commissioners present,  to  act
    52  as a unit upon the specific public business of the Commission. "Meeting"
    53  does  not mean a gathering (i) attended by less than a quorum of commis-
    54  sioners; (ii) in which the board is engaged in  ordinary  course  super-
    55  vision  of  Commission staff; (iii) in which consideration of Commission
    56  business matters are informally discussed without the intent  or  effect

        S. 1508--B                         76
 
     1  of  effectuating  any  action  of the Commission; or (iv) attended by or
     2  open to all the members of three or more  similar  public  bodies  at  a
     3  convention or similar gathering.
     4    (h)  "Project"  means  a passenger rail transportation project between
     5  Penn Station, Newark, New Jersey and Penn Station, New  York,  New  York
     6  currently referred to as the "Gateway Program".
     7    (i)  "Public business" means matters which relate in any way, directly
     8  or indirectly, to the performance of the functions of the commission  or
     9  the conduct of its business.
    10    3.  Creation  of the Commission; purposes. There is hereby created the
    11  Gateway Development Commission, a body corporate and politic established
    12  by the State of New Jersey and the State of New  York,  which  shall  be
    13  deemed  to  be  acting  in  the public interest and exercising essential
    14  government functions in taking action hereunder and  which  shall  be  a
    15  public  authority  and a government sponsored authority. The purposes of
    16  the Commission shall include the following:
    17    (a) Facilitate the project;
    18    (b)  Coordinate  activities  of  governmental  entities,  Amtrak,  and
    19  private  entities providing assistance to the project or otherwise regu-
    20  lating the Project, with a view to achieving Full funding, and encourage
    21  and enable such parties  to  participate  in  the  effectuation  of  the
    22  Project;
    23    (c)  act as a coordinating agency to arrange for cooperation among the
    24  federal government, the State of New Jersey, any local government there-
    25  of, the state of New York, any local  government  thereof,  any  agency,
    26  instrumentality, department, commission, or authority of any one or more
    27  of the foregoing, any bi-state agency, Amtrak, any individual or private
    28  firm,  entity or corporation, or with any one or more of them (including
    29  by contract among the parties), for and in connection with  the  Facili-
    30  tation  of the Project for any of the purposes of this act, and to enter
    31  into an agreement or agreements (and from time to  time  to  enter  into
    32  agreements  amending or supplementing the same) with the federal govern-
    33  ment, the State of New Jersey, any local government thereof,  the  state
    34  of  New York, any local government thereof, any agency, instrumentality,
    35  department, commission, or authority of any one or more of  the  forego-
    36  ing, any bi-state agency, Amtrak, any individual or private firm, entity
    37  or corporation, or with any one or more of them, for or relating to such
    38  purposes, including but not limited to agreements with respect to finan-
    39  cial  assistance, loans, grants or any other funding as may be available
    40  for the Project. The Commission  is  hereby  intended  to  qualify  for,
    41  authorized, and empowered to apply for and accept, financial assistance,
    42  loans,  grants,  or  any  other funding for such purposes under federal,
    43  state, or local laws, and to make application directly to the  appropri-
    44  ate  officials or agencies for the application for and receipt of feder-
    45  al, state or local assistance, loans, grants or any other funding in aid
    46  of any of the purposes of this act;
    47    (d) pursue efforts to assist federal or state agencies and other enti-
    48  ties to fulfill their goals set forth in federal law or the laws of  New
    49  York  or  New  Jersey  to  further passenger rail transportation between
    50  states including 49 U.S.C.  §24901, et seq.;
    51    (e) take any and all actions authorized by this act which are  or  may
    52  be  necessary  or  appropriate  to  constitute and maintain itself as an
    53  applicant eligible to qualify to apply  for  and  be  awarded  financial
    54  assistance,  loans,  grants or other funding as may be available for the
    55  Project, including that awarded by federal, state, and local governments
    56  and the agencies thereof; and

        S. 1508--B                         77
 
     1    (f) facilitate the Project by making  and  enforcing  such  rules  and
     2  regulations  and  establishing, levying and collecting such tolls, fees,
     3  rates, charges and rentals in connection with the Project or any portion
     4  thereof, as it may deem necessary  or  appropriate,  which  said  tolls,
     5  fees,  rates,  charges  and  rentals  shall  not be established at rates
     6  intended to be greater than  necessary  to  meet  the  expenses  of  the
     7  financing,  construction, asset management and optimization thereof, and
     8  to provide for the payment of, with interest upon, and the  amortization
     9  and  retirement  of  bonds  or other securities or obligations issued or
    10  incurred  for  Project  purposes,  including  establishment  of  prudent
    11  reserves, and provided that such tolls, fees, rates, charges and rentals
    12  do not conflict with applicable federal law and the laws of the State of
    13  New Jersey and the State of New York.
    14    4.  Board  of  commissioners.   (a) The Commission shall act through a
    15  vote of its three commissioners: one of which will be directly appointed
    16  by the Commissioner of the New York State Department of  Transportation;
    17  one of which will be directly appointed by the Board of Directors of the
    18  New  Jersey  Transit  Corporation;  and  one  of  which will be directly
    19  appointed by Amtrak. The commissioner appointed by Amtrak will serve  to
    20  represent  Amtrak's interest, as owner-operator or user of the Northeast
    21  Corridor, in the work to be undertaken by the  Commission.  The  commis-
    22  sioner appointed by the Department of Transportation shall be subject to
    23  the advice and consent of the senate.
    24    (b)  The  Commission's  initial commissioners shall be the individuals
    25  serving as trustees of the Gateway Program  Development  Corporation,  a
    26  New  Jersey non-profit corporation, at the time of the effective date of
    27  this act.  The Gateway Program Development  Corporation  trustees  shall
    28  each  serve an initial term as commissioners of the Commission following
    29  this initial term the commissioners appointed in  accordance  with  this
    30  section shall serve for a term of three years.
    31    (c)  At  the conclusion of a commissioner's term (including an initial
    32  commissioner's term), the commissioner may be reappointed for a  succes-
    33  sive  three  year  term  at  the  pleasure  of  the party who originally
    34  appointed that commissioner (or in the case of the  initial  commission-
    35  ers,  the party who originally appointed that individual as a trustee of
    36  the Gateway Program Development Corporation). A commissioner shall auto-
    37  matically continue to serve following the expiration of the  Commission-
    38  er's  term  until  a successor is appointed in accordance with paragraph
    39  (a) of this subdivision and seated.
    40    (d) In the event that a commissioner ceases to serve before the stated
    41  expiration  of  the  Commissioner's  term,  the  party  that  originally
    42  appointed  the  commissioner  may appoint a replacement to serve out the
    43  remainder of the replaced commissioner's term and thereafter, the vacan-
    44  cy shall be filled as provided for in paragraph (a) of this subdivision.
    45    (e) Commissioners shall serve without compensation, but the Commission
    46  may, within the limits of funds appropriated or otherwise made available
    47  to it, reimburse commissioners for actual expenses necessarily  incurred
    48  in the discharge of their official duties.
    49    (f) The commissioner from the State of New Jersey and the commissioner
    50  from  the  State  of  New  York shall be indemnified by the State of New
    51  Jersey and the State of New York, respectively, to the  same  extent  as
    52  such  state indemnifies a public officer for any claim or judgment aris-
    53  ing out of such public officer's official duties.
    54    5. Organization of the Commission; meetings.   (a)  The  commissioners
    55  shall  select  a  chairperson. The chairperson shall be elected from the
    56  representatives of New Jersey and New York.    The  initial  chairperson

        S. 1508--B                         78
 
     1  shall be the commissioner who was serving as chairperson of the board of
     2  trustees  of  the  Gateway Program Development Corporation whose term as
     3  chairperson shall continue until the earlier to occur of (i) the date on
     4  which such commissioner's term as the Gateway Program Development Corpo-
     5  ration  chairperson  would  have expired; or (ii) the date on which that
     6  commissioner is otherwise terminated as a commissioner.  Thereafter, the
     7  commissioner appointed by the state which did not  appoint  the  initial
     8  chairperson  shall  succeed as chairperson. The chairpersonship shall be
     9  alternated between the two states and  each  chairperson  following  the
    10  initial  chairperson  shall serve as chairperson for a term of one year.
    11  The commissioner appointed by Amtrak shall serve as vice-chairperson.
    12    (b) The Commission shall meet regularly as it may determine.  Meetings
    13  of the Commission shall be held at such times and places as  the  chair-
    14  person  of  the  Commission deems appropriate, but to the maximum extent
    15  practicable and feasible, meetings shall be held on an alternating basis
    16  in New Jersey and New York.
    17    (c) The powers of the Commission may be exercised by the commissioners
    18  at a meeting duly called and held where a quorum of  all  three  commis-
    19  sioners  are  present;  provided,  however,  that in the event a vacancy
    20  remains for ninety days, the powers of the Commission may  be  exercised
    21  by the commissioners at a meeting duly called and held where all remain-
    22  ing  commissioners  are  present.    Action may be taken and motions and
    23  resolutions adopted by the Commission at any meeting thereof  by  unani-
    24  mous  affirmative  vote  of  the  commissioners. The commissioners shall
    25  adopt bylaws providing for attendance protocols, voting procedures,  and
    26  other matters related to the conduct of the business of the Commission.
    27    (d)  The  commission  may  request the assistance and services of such
    28  employees and agents as it may require and as may be made  available  to
    29  it  for  the  purpose  of  carrying out its duties under this act, which
    30  agents may include private consultants and persons employed by or acting
    31  as a consultant for the federal government, the state of New Jersey, any
    32  local government thereof, the state of New York,  any  local  government
    33  thereof, any agency, instrumentality, department, commission or authori-
    34  ty  of  any  one  or  more  of the foregoing, any bi-state agency, or of
    35  Amtrak, and each such government and enumerated party is  authorized  to
    36  provide any such assistance and services to the Commission.
    37    (e)  The  Commission  may,  within the limits of funds appropriated or
    38  otherwise made available to it for those purposes, employ  such  profes-
    39  sional,  technical,  clerical  staff  and  consultants  and  incur  such
    40  expenses as it may deem necessary or appropriate in order to perform its
    41  duties.
    42    (f) The legislature finds and declares that the right of the public to
    43  be present at meetings of the Commission, and to  witness  the  deliber-
    44  ation,  policy  formulation,  and  decision making of the Commission, is
    45  vital to the enhancement and proper functioning of the democratic  proc-
    46  ess,  and  that  secrecy  in  public affairs undermines the faith of the
    47  public in government and the public's effectiveness  in  fulfilling  its
    48  role in a democratic society; and declares it to be the public policy of
    49  the state of New Jersey and the state of New York to ensure the right of
    50  its  citizens to have adequate advance notice of and the right to attend
    51  all meetings of the Commission at which any  public  business  is  acted
    52  upon  in  any  way,  except only in those circumstances where the public
    53  interest would be clearly endangered,  the  relevant  matters  are  made
    54  confidential  by  federal or state law, or the personal privacy of indi-
    55  viduals would be clearly in danger of unwarranted invasion.

        S. 1508--B                         79
 
     1    (g) The Commission shall  adopt  and  promulgate  appropriate  bylaws,
     2  rules  and  regulations concerning the right of the public to be present
     3  at Meetings of the Commission and to obtain records of the  Commission's
     4  activities  or  public  business. Any rules or regulations adopted here-
     5  under shall become a part of the minutes of the Commission and be posted
     6  on its website.
     7    6.  Duties of the Commission. The duties of the Commission shall be to
     8  use its efforts to accomplish, at such times as it is appropriate to  do
     9  so,  the following actions, provided that the Commission shall not be in
    10  dereliction of its duties so long as it acts in good faith to accomplish
    11  such:
    12    (a) Make appropriate application  for,  and  act  as  a  coordinating,
    13  distributing,  or recipient agency for, federal, state, or private fund-
    14  ing and  authorizations  necessary  or  appropriate  to  Facilitate  the
    15  project;
    16    (b)  Cooperate  with  other  agencies  or  authorities  or departments
    17  (federal, state, local, and bi-state), Amtrak, and  private  parties  to
    18  Facilitate  the Project, including entering into agreements specifying a
    19  party's rights and obligations with respect to the Project, to create  a
    20  Project capable of achieving long-term stability and Full Funding, with-
    21  out  obligating  the  full  faith  and credit of the federal government,
    22  either state or any local government thereof, or any other party, except
    23  as explicitly authorized by any party empowered by law to do so;
    24    (c) Adopt bylaws to govern the conduct of its affairs, and adopt rules
    25  and regulations, including a conflict of interest  policy  and  code  of
    26  ethics for commissioners and officers of the Commission, and make appro-
    27  priate  orders  to carry out and discharge its powers, duties, and func-
    28  tions;
    29    (d) Expend such funds as are required to effectuate the  purposes  set
    30  forth  in  this  section and, until expenditure is required, to hold and
    31  prudently invest funds;
    32    (e) Recommend appropriate federal, state, and local government  legis-
    33  lation and agency administrative action pertaining to the Project;
    34    (f) Within 18 months of the date the commission organizes and not less
    35  than  annually  thereafter, prepare a progress report on its activities,
    36  and submit it, together with any  recommendations  for  state  or  local
    37  government  legislation  or agency administrative action to the governor
    38  of the state of New Jersey, the president of the senate of the state  of
    39  New  Jersey,  the  speaker  of  the general assembly of the state of New
    40  Jersey, the governor of the state of New York, the  temporary  president
    41  of  the senate of the state of New York, and the speaker of the assembly
    42  of the state of New York; and
    43    (g) Take such other action as  may  be  necessary  or  appropriate  to
    44  further the purposes of this act.
    45    7.  Powers  of the commission.  The commission shall have the power to
    46  undertake the following:
    47    (a) Facilitate the project, including, but  not  limited  to,  through
    48  contracts  and  agreements and other documents and instruments which the
    49  Commission is otherwise authorized to make,  enter  into,  execute,  and
    50  deliver;  provided,  however,  that  the  Commission  shall not have the
    51  authority to operate or directly engage in transportation services  such
    52  that  the Commission would be subject to the jurisdiction of the federal
    53  Surface Transportation Board;
    54    (b) Sue and be sued in its own name in federal  and  state  courts  in
    55  Mercer county, New Jersey and New York county, New York, it being under-

        S. 1508--B                         80
 
     1  stood  that  the commissioners shall have no obligation or liability for
     2  the acts or omissions of the commission;
     3    (c) Accept, receive, disburse, encumber and expend funds from whatever
     4  source  derived,  including,  without  limitation,  federal  assistance,
     5  grants and loans; state and  local  government  assistance,  grants  and
     6  loans; single state or bi-state agency assistance, grants and loans; and
     7  revenues  received  from  the  deposition  of property; private sources,
     8  grants and loans; and Amtrak grants and loans, in each case  as  may  be
     9  necessary  to  accomplish  any  lawful  purpose  which the commissioners
    10  determine will Facilitate the Project and  achieve  long-term  stability
    11  and Full Funding;
    12    (d)   Acquire  (including,  without  limitation,  by  gift,  purchase,
    13  exchange or condemnation in accordance with  the  requirements  of  this
    14  act),  subdivide,  lease,  license,  take,  and  hold  property of every
    15  description and to manage such  property  and  develop  any  undeveloped
    16  property  owned,  leased,  or  controlled by it in a manner necessary or
    17  appropriate to Facilitate the Project;
    18    (e) Make, procure, enter  into,  execute  and  deliver  contracts  and
    19  agreements  and  other  documents and instruments as may be necessary or
    20  appropriate to carry out any power of the Commission under this act  and
    21  to  otherwise  accomplish  any  lawful  purpose  which the commissioners
    22  determine will Facilitate the Project,  including,  without  limitation,
    23  with  the federal government, the State of New Jersey, any local govern-
    24  ment thereof, the state of New York, with any local government  thereof,
    25  with any agency, instrumentality, department, commission or authority of
    26  any one or more of the foregoing, any bi-state agency, Amtrak, any indi-
    27  vidual  or  private firm, entity or corporation, or with any one or more
    28  of them;
    29    (f) Make applications for and accept funding, permits,  authorizations
    30  and  approvals  as  may  be  necessary  or appropriate to accomplish any
    31  lawful purpose which the commissioners  determine  will  Facilitate  the
    32  Project, including, without limitation, with the federal government, the
    33  State  of  New  Jersey,  any  local government thereof, the State of New
    34  York, any local government thereof, with  any  agency,  instrumentality,
    35  department, commission or authority of any one or more of the foregoing,
    36  any  bi-state  agency, Amtrak, any individual or private firm, entity or
    37  corporation, or with any one or more of them;
    38    (g) Grant public and private entities the use  of  the  Project  or  a
    39  portion  thereof  by  way  of  franchise, concession, license, lease, or
    40  otherwise, provide for payments to and accept payments from  such  enti-
    41  ties  in  exchange  for  value received from such use, work, or services
    42  performed or otherwise and to establish or agree with Project  users  on
    43  tolls,  fees,  rates,  charges, revenue sharing, and rentals for the use
    44  thereof, provided that such tolls, fees, rates, charges,  revenue  shar-
    45  ing,  and  rentals  do  not conflict with applicable federal law and the
    46  laws of the State of New Jersey and the State of New York, and  provided
    47  further  that the Commission shall not have the authority to set passen-
    48  ger fares for Amtrak  or  any  publicly  owned  and  operated  passenger
    49  service utilizing the Project;
    50    (h)  Adopt  its  own  public procurement rules and guidelines that the
    51  Commission deems necessary or  appropriate  to  Facilitate  the  Project
    52  through  any combination of means and methods generally available to the
    53  State of New Jersey, any local government  thereof,  the  State  of  New
    54  York, any local government thereof, any agency, instrumentality, depart-
    55  ment,  commission  or  authority of any one or more of the foregoing, or

        S. 1508--B                         81
 
     1  any bi-state agency, and engage  and  contract  with  third  parties  in
     2  accordance with such procurement rules and guidelines;
     3    (i)  Dispose  of, convey or transfer all or any portion of the Project
     4  for value as may be expeditious for the Facilitation of the Project,  so
     5  long  as it has determined that the transferee has or is provided with a
     6  sufficient source of financing to acquire, operate, maintain and own the
     7  Project;
     8    (j) Issue and guarantee bonds, notes, or  other  evidence  of  indebt-
     9  edness,  enter into loan agreements and otherwise borrow funds, or incur
    10  indebtedness or other  future  payment  obligations  for  any  corporate
    11  purpose,  including  to  effectuate Full Funding, and to assign, pledge,
    12  mortgage, secure, encumber and use its funds,  assets,  properties,  and
    13  revenues  for repayment thereof, to be payable out of the funds, assets,
    14  properties, and revenues of the Commission without recourse to taxation,
    15  provided that the Commission shall have no  power  to  pledge  the  full
    16  faith and credit of the federal government, the state of New Jersey, any
    17  local  government  thereof,  the state of New York, any local government
    18  thereof or of Amtrak or the Port Authority of New York and New Jersey in
    19  connection with the project, or to impose any obligation for payment  of
    20  the  bonds  upon  the  federal  government, the state of New Jersey, any
    21  local government thereof, the state of New York,  any  local  government
    22  thereof  or  of Amtrak or the Port Authority of New York and New Jersey,
    23  in each case except as set forth in a binding agreement, or to otherwise
    24  commit any party to incur any liability in  excess  of  its  contractual
    25  obligations  in  connection  with the Project, and provided further that
    26  neither the commissioners nor any person executing any bonds  issued  or
    27  guaranteed by the Commission shall be liable personally on such bonds or
    28  be  subject to any personal liability or accountability by reason of the
    29  issuance thereof;
    30    (k)  Acquire  and  hold  securities  for  investment  purposes  or  in
    31  connection with the Facilitation of the Project;
    32    (l)  Appoint,  employ,  contract  with,  and compensate such officers,
    33  employees  and  agents,  including  engineers,  attorneys,  consultants,
    34  financial  advisors,  and such other persons or entities as the business
    35  of the Commission may require and to engage and dismiss  such  officers,
    36  employees,  and  agents  at will, and fix and provide for the qualifica-
    37  tion, appointment, removal, term,  tenure,  compensation,  pension,  and
    38  retirement rights of its officers and employees;
    39    (m)  Obtain  insurance  as  the  Commission  may deem advisable and to
    40  create a captive insurer to self-insure risk as  deemed  appropriate  by
    41  the Commission;
    42    (n)  Cooperate  with  the federal government, the state of New Jersey,
    43  any local government thereof, the state of New York, any  local  govern-
    44  ment thereof with any local government thereof, with any agency, instru-
    45  mentality, department, commission or authority of any one or more of the
    46  foregoing,  any bi-state agency, Amtrak, any individual or private firm,
    47  entity or corporation, or with any one or more of  them,  in  connection
    48  with the Project, and to enter into an agreement or agreements, notwith-
    49  standing  any  other  provision  of law of the states, general, special,
    50  charter or local, with the federal government, with  the  state  of  New
    51  Jersey,  any  local government thereof, the state of New York, any local
    52  government thereof any agency, instrumentality, department,  commission,
    53  or  authority  of any one or more of the foregoing, any bi-state agency,
    54  Amtrak, any individual or private firm, entity, or corporation, or  with
    55  any one or more of the same for or relating to the Project;

        S. 1508--B                         82
 
     1    (o)  Indemnify  individuals  and  entities  to  the extent required to
     2  facilitate the project;
     3    (p)  Establish  or  acquire subsidiaries as required to Facilitate the
     4  Project;
     5    (q) Utilize the existing labor force in the states  and  foster  labor
     6  harmony in allowing for adoption of efficient labor work rules and prac-
     7  tices during construction of the Project; and
     8    (r)  Exercise  all  other powers as may be necessary or appropriate in
     9  furtherance of, and consistent with, the purposes of this act.
    10    8. Exemption from taxes, local  laws.  (a)  The  Commission  shall  be
    11  performing essential governmental functions in exercising its powers and
    12  functions  and in carrying out the provisions of this act and of any law
    13  relating thereto, and shall not be required to pay any taxes or  assess-
    14  ments  of  any character, levied by either state or any local government
    15  thereof, upon any of the property used by it or its agents  or  contrac-
    16  tors for the Facilitation of the Project, or any income or revenue ther-
    17  efrom,  including  any  profit  from  a  sale,  lease or exchange, or in
    18  connection with the transfer thereof or of any  real  property  interest
    19  therein.  Any  bonds  or other securities   or obligations issued by the
    20  Commission, their transfer and the interest paid thereon or income ther-
    21  efrom, including any profit from a sale or exchange, shall at all  times
    22  be free from taxation by either state or any subdivision thereof.
    23    (b) The Commission shall, as a matter of policy, conform to the enact-
    24  ments, ordinances, resolutions, and regulations of the respective states
    25  and  local  governments  where  the  Project is located in regard to the
    26  construction and maintenance of the Project and in regard to health  and
    27  fire  protection  which  would  be  applicable  if the Commission were a
    28  private corporation, to the extent that the Commission finds it  practi-
    29  cable  so  to  do, without interfering with, impairing, or affecting the
    30  efficiency of its purposes under this act, or its ability to  effectuate
    31  the  Project  upon  a self-supporting basis, or its obligations, duties,
    32  and responsibilities to the two states, its bondholders, if any, and the
    33  general public, but the decision of the Commission as to whether  it  is
    34  practicable  so  to do shall be controlling. To that end, the Commission
    35  shall submit copies of plans and specifications for buildings and struc-
    36  tures to the appropriate state and local government officials and  shall
    37  consult with them with respect thereto, and shall receive their comments
    38  and  suggestions thereon, but the Commission shall make the final deter-
    39  mination as to which comments and suggestions to accept in  effectuating
    40  the project.
    41    (c) Notwithstanding the provisions of paragraph a of this subdivision,
    42  the Commission is hereby authorized and empowered, in its discretion, to
    43  enter into a voluntary agreement or agreements with any local government
    44  whereby  the Commission may undertake to pay in lieu of taxes a fair and
    45  reasonable sum, if any, annually in connection with  any  real  property
    46  acquired  and  owned  by  the Commission for any of the purposes of this
    47  act, and to provide for the payment as a  rental  or  additional  rental
    48  charge  by  any  person  occupying  any portion of such real property as
    49  lessee, vendee or otherwise of such fair and  reasonable  sum,  provided
    50  that  in  no  event  shall  any  voluntary agreement entered into by the
    51  commission provide for the payment of an amount  in  lieu  of  taxes  in
    52  excess of the amount last paid as taxes upon such real property prior to
    53  the time of its acquisition by the Commission.
    54    (d)  Notwithstanding  any  other  provision  of law, general, special,
    55  charter, or local,  each  local  government  is  hereby  authorized  and
    56  empowered  to  enter  into such agreement or agreements with the Commis-

        S. 1508--B                         83
 
     1  sion, and to accept the payment or  payments  which  the  Commission  is
     2  hereby  authorized  and  empowered  to make, and the sums so received by
     3  such local government shall be devoted to purposes to which taxes may be
     4  applied  in all affected taxing jurisdictions unless and until otherwise
     5  directed by law of the state in which such local government is located.
     6    § 3. Subdivisions 1, 2 and 3 of section  14-c  of  the  transportation
     7  law, as added by chapter 639 of the laws of 1971, are amended to read as
     8  follows:
     9    1.  The  department  of transportation may cooperate and contract with
    10  the national railroad passenger  corporation  or  if  deemed  necessary,
    11  desirable  or  convenient by the commissioner to facilitate the purposes
    12  of this section with the gateway development commission  to  the  extent
    13  that  commission  is so authorized to act under its authorizing statute,
    14  for any intercity rail passenger services deemed  necessary,  convenient
    15  or desirable by the commissioner, within the amounts available by appro-
    16  priation  therefor,  as such services are made available pursuant to the
    17  provisions of the rail passenger service act of nineteen hundred seventy
    18  and any acts amendatory or supplemental thereto, subject to the approval
    19  of the director of the budget or  pursuant  to  reimbursement  available
    20  from the gateway development commission, any railroad company, any other
    21  state  or  agency,  the federal government, any public authority of this
    22  state or any other state or two or more states, or any political  subdi-
    23  vision  or  municipality of the state.  Notwithstanding any inconsistent
    24  law, general, special or local, the  commissioner,  as  funds  are  made
    25  available  for the purposes hereof, is hereby empowered to contract with
    26  such corporation or Commission and to do  all  other  things  necessary,
    27  convenient  or desirable on behalf of the state to secure the full bene-
    28  fits available under and pursuant to such act and any other federal  act
    29  which  provides  funding  for  intercity rail passenger services, and to
    30  contract and do all other things necessary as  hereinafter  provided  on
    31  behalf  of  the  state  to  effect  [the]  and facilitate intercity rail
    32  passenger [service program] services which he determines  is  necessary,
    33  convenient or desirable and the department of transportation may cooper-
    34  ate  and  contract with the gateway development commission for passenger
    35  rail activities, to the extent that the gateway  development  commission
    36  is  so authorized to act under its authorizing statute, provided, howev-
    37  er, that the department of transportation shall only contract  with  the
    38  gateway  development  commission  if  such  contract is approved by that
    39  commission's board of commissioners in accordance with  its  authorizing
    40  statute.
    41    2.  The  commissioner  shall  coordinate  the intercity rail passenger
    42  activities of the state and other interested public and  private  organ-
    43  izations  and  persons  to  effectuate  the purposes of this section and
    44  shall have the responsibility for negotiating with the  federal  govern-
    45  ment  with  respect  to  intercity rail passenger service programs.  The
    46  commissioner is authorized to enter into joint  service  agreements  and
    47  other  agreements  between the state and any railroad company, any other
    48  state department or agency, the federal government, the Canadian govern-
    49  ment, any other state, or agency or instrumentality thereof, any  public
    50  authority of this state or any other state or two or more states, or any
    51  political  subdivision or municipality of the state, relating to proper-
    52  ty, buildings, structures, facilities, services, rates,  fares,  classi-
    53  fications,  dividends,  allowances or charges (including charges between
    54  intercity rail passenger service facilities), or  rules  or  regulations
    55  pertaining thereto, for or in connection with or incidental to transpor-
    56  tation  in part upon intercity rail passenger service facilities. Inter-

        S. 1508--B                         84
 
     1  city rail passenger service facilities include  the  right  of  way  and
     2  related  trackage,  rails,  cars,  locomotives,  or other rolling stock,
     3  signal,  power,  fuel,  communication  and  ventilation  systems,  power
     4  plants,  stations, terminals, tunnels, storage yards, repair and mainte-
     5  nance shops, yards, equipment and parts, offices and other  real  estate
     6  or  personnel used or held for or incidental to the operation, rehabili-
     7  tation or improvement of any railroad operating intercity rail passenger
     8  service or to operate such service, including but not limited to  build-
     9  ings, structures, and rail property.
    10    3.  The commissioner may on such terms and conditions as he may deter-
    11  mine necessary, convenient or desirable, establish, construct,  effectu-
    12  ate,  operate,  maintain,  renovate,  improve, extend or repair any such
    13  intercity rail passenger service facility or any  related  services  and
    14  activities, or may provide for such by contract, lease or other arrange-
    15  ment on such terms as the commissioner may deem necessary, convenient or
    16  desirable  with  any  agency,  corporation  or person, including but not
    17  limited to any railroad company, any state agency, the  federal  govern-
    18  ment,  the  Canadian government, any other state or agency or instrumen-
    19  tality thereof, any public authority of this or any other state  or  two
    20  or  more  states,  or  any  political subdivision or municipality of the
    21  state.
    22    § 4. Notwithstanding any other provision of law of  New  York  or  New
    23  Jersey, general, special, charter or local, each state and local govern-
    24  ment,  any  agency, instrumentality, department, commission or authority
    25  thereof, and any bi-state agency are hereby authorized and empowered  to
    26  cooperate  with,  aid  and  assist  the  Commission  in effectuating the
    27  provisions of this act, as it may be amended or supplemented hereafter.
    28    § 5. Upon the concurrence of the State of New Jersey, the State of New
    29  Jersey  and  the  State  of  New  York  consent  to  suits,  actions  or
    30  proceedings  of  any  form  or  nature  at  law, in equity, or otherwise
    31  (including proceedings to enforce arbitration agreements),  against  the
    32  Commission,  and  to  appeals  therefrom  and reviews thereof, except as
    33  hereinafter provided. The foregoing consent  does  not  extend  to:  (a)
    34  suits,  actions,  or  proceedings  upon  any causes of action whatsoever
    35  accruing before the effective date of this act; (b)  suits,  actions  or
    36  proceedings  upon  any  causes of action whatsoever, upon, in connection
    37  with, or arising out of any contract, express or implied,  entered  into
    38  or assumed by or assigned to the Commission before the effective date of
    39  this  act  (including  any  supplement  to,  or  amendment, extension or
    40  renewal of any such contract, even if such supplement, amendment, exten-
    41  sion or renewal is made on or after the effective  date  of  this  act),
    42  regardless  of whether such cause of action accrued before or after that
    43  date; (c) civil suits, actions or proceedings for the recovery of statu-
    44  tory penalties; and (d) suits, actions  or  proceedings  for  judgments,
    45  orders  or  decrees  restraining, enjoining or preventing the Commission
    46  from committing or continuing to commit any  act  or  acts,  other  than
    47  suits,  actions  or proceedings by the Attorney General of New Jersey or
    48  by the Attorney General of New York, each of whom is  hereby  authorized
    49  to  bring such suits, actions or proceedings in his or her discretion on
    50  behalf of any person or persons whatsoever  who  requests  the  Attorney
    51  General  to  do  so, except in the cases otherwise excluded by this act;
    52  provided, that in any such suit,  action  or  proceeding,  no  judgment,
    53  order  or  decree  shall be entered except upon at least two days' prior
    54  written notice to the [Gateway Development] Commission of  the  proposed
    55  entry thereof.

        S. 1508--B                         85
 
     1    The  Commission  shall  be immune from liability as though it were the
     2  State of New York, except to the extent that such immunity is waived  by
     3  the  State  of  New York under section 8 of the New York Court of Claims
     4  Act.
     5    § 6. Severability. (a) If any provision of this act or the application
     6  thereof  to any person or circumstance is held invalid, including as not
     7  in accordance with federal law or federal  constitutional  requirements,
     8  such invalidity shall not affect other provisions or applications of the
     9  act  which can be given effect without the invalid provision or applica-
    10  tion and to this end the provisions of  this  act  are  declared  to  be
    11  severable.
    12    (b)  The  provisions of this act, and the powers vested in the Gateway
    13  Development Commission, shall be liberally construed to give  effect  to
    14  the purposes of this act.
    15    § 7. (a) This act shall take effect upon the enactment into law by the
    16  state  of New Jersey of legislation having an identical effect with this
    17  act, but if the state of New Jersey  shall  have  already  enacted  such
    18  legislation,  this  act shall take effect immediately; provided that the
    19  state of New Jersey shall notify the legislative bill  drafting  commis-
    20  sion  upon  the  occurrence of the enactment of the legislation provided
    21  for in this act in order that the commission may  maintain  an  accurate
    22  and  timely  effective data base of the official text of the laws of the
    23  state of New York in  furtherance  of  effectuating  the  provisions  of
    24  section  44  of the legislative law and section 70-b of the public offi-
    25  cers law; and
    26    (b) the Commission shall dissolve following a joint  determination  by
    27  the Governor of New Jersey and the Governor of New York that the Project
    28  has  been  completed or should be transferred to another agency, instru-
    29  mentality or entity and: (i) any bonds or other  securities  issued  and
    30  any  other  debt  incurred for such Project purposes have been repaid or
    31  arrangements have been made to ensure such repayment  in  full,  without
    32  impairment  of  credit  worthiness and; (ii) Amtrak is not unduly preju-
    33  diced by such dissolution; provided that the Gateway Development Commis-
    34  sion shall notify the legislative  bill  drafting  commission  upon  the
    35  occurrence  of the intended dissolution in order that the commission may
    36  maintain an accurate and timely effective data base of the official text
    37  of the laws of the state of New York in furtherance of effectuating  the
    38  provisions  of section 44 of the legislative law and section 70-b of the
    39  public officers law.
 
    40                                   PART EE
 
    41    Section 1. This Part, which shall be known and may  be  cited  as  the
    42  "MTA Revitalization, Accountability, Improvement and Legitimization Act"
    43  or  the  "MTA RAIL Act", enacts into law major components of legislation
    44  which are necessary to improve the metropolitan transportation  authori-
    45  ty.  Each  component  is wholly contained within a Subpart identified as
    46  Subparts A through F. The effective date for each  particular  provision
    47  contained  within  such Subpart is set forth in the last section of such
    48  Subpart. Any provision  in  any  section  contained  within  a  Subpart,
    49  including  the effective date of the Subpart, which makes a reference to
    50  a section "of this act", when used in connection  with  that  particular
    51  component,  shall  be  deemed  to  mean  and  refer to the corresponding
    52  section of the Subpart in which it is found.
 
    53                                  SUBPART A

        S. 1508--B                         86
 
     1    Section 1. The public authorities law  is  amended  by  adding  a  new
     2  section 1265-c to read as follows:
     3    §  1265-c.  Independent forensic audit. 1. The authority shall, within
     4  sixty days of the effective date of this section, contract with a certi-
     5  fied public accounting firm for the provision of an independent, compre-
     6  hensive, forensic audit of the authority. Such audit shall be  performed
     7  in  accordance  with  generally  accepted government auditing standards.
     8  Such audit shall be independent of and in addition  to  the  independent
     9  audit  of  the  authority  conducted  pursuant  to  section twenty-eight
    10  hundred two of this chapter.
    11    2. The certified independent  public  accounting  firm  providing  the
    12  authority's  independent, comprehensive, forensic audit shall be prohib-
    13  ited from providing audit services if the lead (or  coordinating)  audit
    14  partner  (having  primary  responsibility  for  the audit), or the audit
    15  partner  responsible  for  reviewing  the  audit,  has  performed  audit
    16  services  for  the authority within any of the ten previous fiscal years
    17  of the authority.
    18    3. The certified independent  accounting  firm  performing  the  audit
    19  pursuant to this section shall be prohibited from performing any non-au-
    20  dit services for the authority contemporaneously with the audit.
    21    4.  It  shall  be  prohibited  for  the  certified  independent public
    22  accounting firm to perform for the authority any audit  service  if  the
    23  chief  executive  officer,  comptroller,  chief financial officer, chief
    24  accounting officer or any other person serving in an equivalent position
    25  in the authority was  employed  by  that  certified  independent  public
    26  accounting  firm  and  participated  in any capacity in the audit of the
    27  authority at any time in the past.
    28    5.  The authority shall include,  without  limitation,  the  following
    29  questions and any others it deems necessary to improve its operations in
    30  procuring the independent, comprehensive, forensic audit:
    31    (i)  Is  any  individual  committing  fraud  within the authority with
    32  respect to capital project procurement, management, or forecasting;
    33    (ii) Does the authority have any active or ongoing projects  in  which
    34  the  number of employees or contractors being paid exceeds the number of
    35  employees or contractors  budgeted  by  project  managers  or  otherwise
    36  contractually agreed upon;
    37    (iii) Does the authority have sufficient internal controls in place to
    38  prevent nepotism, self-dealing, or bid-rigging;
    39    (iv)  What  internal  controls or reforms are recommended to bring the
    40  authority's capital construction costs to comparable levels  with  other
    41  large transit systems; and
    42    (v)  Is fraud, negligence, or anti-competitive conduct causing dispro-
    43  portionately high design and project management costs at the authority.
    44    6.  The certified independent public  accounting  firm  contracted  to
    45  perform  the  independent comprehensive, forensic audit of the authority
    46  shall, on or before January first, two thousand twenty-one,  report  its
    47  findings,  conclusions  and  recommendations  to the governor, the state
    48  comptroller, the temporary president of the senate, the speaker  of  the
    49  assembly,  the  chair  and ranking minority member of the senate finance
    50  committee, the chair and ranking minority member of  the  assembly  ways
    51  and  means  committee,  the  chairs  and ranking minority members of the
    52  senate  and  the  assembly  corporations,  authorities  and  commissions
    53  committees,  and  the  chairs and ranking minority members of the senate
    54  and the assembly transportation committees.
    55    § 2. This act shall take effect immediately, and shall expire  and  be
    56  deemed repealed January 2, 2021.

        S. 1508--B                         87
 
     1                                  SUBPART B
 
     2    Section  1. Section 1269-c of the public authorities law is amended by
     3  adding a new subdivision c to read as follows:
     4    c. On or before October first, two thousand twenty-three,  and  on  or
     5  before October first of every fifth year thereafter, the authority shall
     6  submit  to  the  metropolitan  transportation  authority capital program
     7  review board a twenty-year capital needs assessment.    Such  assessment
     8  shall begin with the period commencing January first, two thousand twen-
     9  ty-five, and begin each assessment with every fifth year thereafter, and
    10  describe  capital  investments  over  the  succeeding twenty years. Such
    11  assessment shall: (1) set forth broad long-term capital  investments  to
    12  be  made  throughout the district; and (2) establish a non-binding basis
    13  to be used by the authority in the  planning  of  strategic  investments
    14  involving capital elements in its five-year capital plans.  Such assess-
    15  ment shall not require a vote of the metropolitan transportation author-
    16  ity capital program review board and shall be for informational purposes
    17  only.  For  purposes  of  this section, "broad long-term capital invest-
    18  ments" shall include but not be limited to: system rebuilding,  enhance-
    19  ment,  and  expansion needs; agency needs broken down by capital element
    20  or investment category; and projected future trends and  network  impli-
    21  cations.  Such  assessment  shall  be  certified  by the chairman of the
    22  authority and shall be entered into the permanent record of the  minutes
    23  of the review board.
    24    § 2. This act shall take effect immediately.
 
    25                                  SUBPART C
 
    26    Section  1.  Subdivision  4  of section 2976 of the public authorities
    27  law, as added by section 12 of part E of chapter  494  of  the  laws  of
    28  2009, is amended to read as follows:
    29    4.  The  provisions  of subdivisions one and two of this section shall
    30  not apply to bonds, notes or other obligations issued by  the  metropol-
    31  itan  transportation authority, and the New York city transit authority,
    32  the Triborough bridge and tunnel authority, or  to  recovery  act  bonds
    33  issued by the state of New York municipal bond bank agency in connection
    34  with  local  American  Recovery and Reinvestment Act pursuant to section
    35  two thousand four hundred thirty-six-b of this chapter.
    36    § 2. This act shall take effect immediately.
 
    37                                  SUBPART D
 
    38    Section 1. Paragraph (a) of subdivision  1  of  section  1263  of  the
    39  public  authorities  law,  as amended by chapter 549 of the laws of 1994
    40  and subparagraph 1 as amended by section 3 of part H of  chapter  25  of
    41  the laws of 2009, is amended to read as follows:
    42    (a)  (1)  There  is  hereby  created  the "metropolitan transportation
    43  authority." The authority shall be a body corporate and politic  consti-
    44  tuting  a  public  benefit corporation. The authority shall consist of a
    45  [chairman] chairperson, [sixteen] twenty other voting members, and [two]
    46  three non-voting [and four alternate non-voting members],  as  described
    47  in  subparagraph  two of this paragraph appointed by the governor by and
    48  with the advice and consent of the senate. Any  member  appointed  to  a
    49  term commencing on or after June thirtieth, two thousand nine shall have
    50  experience in one or more of the following areas: transportation, public
    51  administration, business management, finance, accounting, law, engineer-

        S. 1508--B                         88
 
     1  ing,  land use, urban and regional planning, management of large capital
     2  projects, labor relations, or have experience  in  some  other  area  of
     3  activity  central to the mission of the authority. Four of the [sixteen]
     4  twenty  voting  members  other  than the [chairman] chairperson shall be
     5  appointed on the written recommendation of the mayor of the city of  New
     6  York;  one of the twenty voting members other than the chairperson shall
     7  be appointed on the written recommendation of the New York city  transit
     8  authority  advisory council; one of the twenty voting members other than
     9  the chairperson shall be appointed on the written recommendation of  the
    10  Metro-North  rail  commuter  council;  one  of the twenty voting members
    11  other than the chairperson shall be appointed on the written recommenda-
    12  tion of the Long Island rail road commuter's council; one of the  twenty
    13  voting  members  other  than  the  chairperson shall be appointed on the
    14  written recommendation of the MTA New York  city  transit's  paratransit
    15  advisory  committee  selection committee; and each of seven other voting
    16  members other than the [chairman] chairperson shall be  appointed  after
    17  selection  from  a  written list of three recommendations from the chief
    18  executive officer of the  county  in  which  the  particular  member  is
    19  required  to  reside  pursuant to the provisions of this subdivision. Of
    20  the members appointed on recommendation of the chief  executive  officer
    21  of  a  county,  one  such member shall be, at the time of appointment, a
    22  resident of the county of Nassau,  one  a  resident  of  the  county  of
    23  Suffolk,  one a resident of the county of Westchester, one a resident of
    24  the county of Dutchess, one a resident of the county of  Orange,  one  a
    25  resident  of  the  county  of Putnam and one a resident of the county of
    26  Rockland, provided that the term of any member who is a  resident  of  a
    27  county  that has withdrawn from the metropolitan commuter transportation
    28  district pursuant to section twelve hundred seventy-nine-b of this arti-
    29  cle shall terminate upon the effective date of such county's  withdrawal
    30  from  such  district. Of the five voting members, other than the [chair-
    31  man] chairperson, appointed by the governor without recommendation  from
    32  any  other person, three shall be, at the time of appointment, residents
    33  of the city of New York and two shall be, at the  time  of  appointment,
    34  residents  of  such city or of any of the aforementioned counties in the
    35  metropolitan commuter transportation  district.  The  [chairman]  chair-
    36  person  and  each  of  the  members shall be appointed for a term of six
    37  years, provided however, that the [chairman] chairperson first appointed
    38  shall serve for a term ending June thirtieth, nineteen  hundred  eighty-
    39  one,  provided  that thirty days after the effective date of the chapter
    40  of the laws of two thousand nine which amended  this  subparagraph,  the
    41  term of the [chairman] chairperson shall expire; provided, further, that
    42  such  [chairman] chairperson may continue to discharge the duties of his
    43  or her office until the position of [chairman] chairperson is filled  by
    44  appointment  by  the  governor upon the advice and consent of the senate
    45  and the term of such new [chairman]  chairperson  shall  terminate  June
    46  thirtieth,  two  thousand  fifteen.  The  [sixteen] twenty other members
    47  first appointed shall serve for the following terms:  The  members  from
    48  the  counties  of  Nassau  and  Westchester  shall each serve for a term
    49  ending June thirtieth, nineteen hundred eighty-five;  the  members  from
    50  the  county of Suffolk and from the counties of Dutchess, Orange, Putnam
    51  and Rockland shall each serve for a term ending June thirtieth, nineteen
    52  hundred ninety-two; two of the members appointed  on  recommendation  of
    53  the  mayor  of  the  city of New York shall each serve for a term ending
    54  June thirtieth, nineteen hundred eighty-four and, two shall  each  serve
    55  for  a  term  ending June thirtieth, nineteen hundred eighty-one; two of
    56  the members appointed by the governor without the recommendation of  any

        S. 1508--B                         89
 
     1  other person shall each serve for a term ending June thirtieth, nineteen
     2  hundred  eighty-two, two shall each serve for a term ending June thirti-
     3  eth, nineteen hundred eighty and one shall serve for a term ending  June
     4  thirtieth,  nineteen  hundred  eighty-five;  the member appointed by the
     5  governor on recommendation of the New York city transit authority  advi-
     6  sory  council shall serve for a term ending June thirtieth, two thousand
     7  twenty-three; the member appointed by the governor on recommendation  of
     8  the Metro-North rail commuter council shall serve for a term ending June
     9  thirtieth, two thousand twenty-three; the member appointed by the gover-
    10  nor  on  recommendation  of the Long Island rail road commuter's council
    11  shall serve for a term ending June thirtieth, two thousand twenty-three;
    12  and the member appointed by the governor on recommendation  of  the  MTA
    13  New York city transit's paratransit advisory committee selection commit-
    14  tee  shall  serve for a term ending June thirtieth, two thousand twenty-
    15  three. [The two non-voting and four alternate non-voting  members  shall
    16  serve until January first, two thousand one.] The members from the coun-
    17  ties  of Dutchess, Orange, Putnam and Rockland shall cast one collective
    18  vote.
    19    (2) There shall be [two] three non-voting members [and four  alternate
    20  non-voting members] of the authority, as referred to in subparagraph one
    21  of this paragraph.
    22    The  first  non-voting member shall be [a regular mass transit user of
    23  the facilities of the authority and be recommended to  the  governor  by
    24  the  New  York city transit authority advisory council. The first alter-
    25  nate non-voting member shall be a  regular  mass  transit  user  of  the
    26  facilities  of  the  authority and be recommended to the governor by the
    27  Metro-North commuter council. The  second  alternate  non-voting  member
    28  shall  be a regular mass transit user of the facilities of the authority
    29  and be recommended  to  the  governor  by  the  Long  Island  Rail  Road
    30  commuter's council.
    31    The  second non-voting member shall be] recommended to the governor by
    32  the labor organization representing the majority  of  employees  of  the
    33  Long  Island  Rail  Road. The [third alternate] second non-voting member
    34  shall be recommended to the governor by the labor  organization  repres-
    35  enting the majority of employees of the New York city transit authority.
    36  The  [fourth  alternate] third non-voting member shall be recommended to
    37  the governor by the labor  organization  representing  the  majority  of
    38  employees  of  the Metro-North Commuter Railroad Company. The [chairman]
    39  chairperson of the authority, at  his  or  her  direction,  may  exclude
    40  [such]  any  non-voting  member  [or  alternate  non-voting member] from
    41  attending any portion of a meeting of the authority or of any  committee
    42  established  pursuant  to  paragraph  (b)  of  subdivision  four of this
    43  section held for the  purpose  of  discussing  negotiations  with  labor
    44  organizations.
    45    [The  non-voting  member  and  the  two  alternate  non-voting members
    46  representing the New York York city transit authority advisory  council,
    47  the  Metro-North  commuter  council,  and  the  Long  Island  Rail  Road
    48  commuter's council shall serve  eighteen  month  rotating  terms,  after
    49  which  time  an  alternate non-voting member shall become the non-voting
    50  member and the rotation shall continue until each alternate  member  has
    51  served  at  least  one  eighteen  month term as a non-voting member. The
    52  other non-voting member and alternate  non-voting  members  representing
    53  the  New  York  city  transit  authority,  Metro-North Commuter Railroad
    54  Company, and the Long Island Rail Road labor organizations  shall  serve
    55  eighteen  month rotating terms, after which time an alternate non-voting
    56  member shall become the non-voting member and the rotation shall contin-

        S. 1508--B                         90

     1  ue until each alternate member has served at least  one  eighteen  month
     2  term  as  a  non-voting  member.  The transit authority and the commuter
     3  railroads shall not be represented concurrently by  the  two  non-voting
     4  members during any such eighteen month period.]
     5    §  2.  Paragraph  (a)  of  subdivision 1 of section 1263 of the public
     6  authorities law, as amended by section 4 of part H of chapter 25 of  the
     7  laws of 2009, is amended to read as follows:
     8    (a)  There is hereby created the "metropolitan transportation authori-
     9  ty." The authority shall be a body corporate and politic constituting  a
    10  public  benefit corporation. The authority shall consist of a [chairman]
    11  chairperson and [sixteen] twenty other members appointed by the governor
    12  by and with the advice and consent of the senate. Any  member  appointed
    13  to a term commencing on or after June thirtieth, two thousand nine shall
    14  have  experience  in  one  or  more of the following areas of expertise:
    15  transportation, public  administration,  business  management,  finance,
    16  accounting,  law,  engineering,  land  use, urban and regional planning,
    17  management of large capital projects, labor relations, or  have  experi-
    18  ence  in  some  other  area  of  activity  central to the mission of the
    19  authority. Four of the [sixteen] twenty members other than  the  [chair-
    20  man] chairperson shall be appointed on the written recommendation of the
    21  mayor  of  the  city of New York; one of the twenty voting members other
    22  than the chairperson shall be appointed on the written recommendation of
    23  the New York city transit authority advisory council; one of the  twenty
    24  voting  members  other  than  the  chairperson shall be appointed on the
    25  written recommendation of the Metro-North rail commuter council; one  of
    26  the  twenty voting members other than the chairperson shall be appointed
    27  on the written recommendation of the Long Island  rail  road  commuter's
    28  council;  one  of  the  twenty voting members other than the chairperson
    29  shall be appointed on the written recommendation of  the  MTA  New  York
    30  city  transit's  paratransit advisory committee selection committee; and
    31  each of seven other members other than the [chairman] chairperson  shall
    32  be  appointed  after  selection from a written list of three recommenda-
    33  tions from the chief executive  officer  of  the  county  in  which  the
    34  particular  member  is  required to reside pursuant to the provisions of
    35  this subdivision. Of the members  appointed  on  recommendation  of  the
    36  chief  executive  officer  of a county, one such member shall be, at the
    37  time of appointment, a resident of the county of Nassau; one a  resident
    38  of  the  county of Suffolk; one a resident of the county of Westchester;
    39  and one a resident of the county of Dutchess,  one  a  resident  of  the
    40  county of Orange, one a resident of the county of Putnam and one a resi-
    41  dent of the county of Rockland, provided that the term of any member who
    42  is  a  resident  of  a  county  that has withdrawn from the metropolitan
    43  commuter transportation district  pursuant  to  section  twelve  hundred
    44  seventy-nine-b  of  this article shall terminate upon the effective date
    45  of such county's withdrawal from such district.  Of  the  five  members,
    46  other than the [chairman] chairperson, appointed by the governor without
    47  recommendation  from  any  other  person, three shall be, at the time of
    48  appointment, residents of the city of New York and two shall be, at  the
    49  time  of  appointment, residents of such city or of any of the aforemen-
    50  tioned counties in the metropolitan  commuter  transportation  district.
    51  The  [chairman]  chairperson  and each of the members shall be appointed
    52  for a term of six years, provided however, that  the  [chairman]  chair-
    53  person  first  appointed  shall  serve for a term ending June thirtieth,
    54  nineteen hundred eighty-one, provided that thirty days after the  effec-
    55  tive  date of the chapter of the laws of two thousand nine which amended
    56  this paragraph, the term of the  [chairman]  chairperson  shall  expire;

        S. 1508--B                         91
 
     1  provided,  further,  that  such  [chairman]  chairperson may continue to
     2  discharge the duties of his or her office until the position of  [chair-
     3  man]  chairperson  is  filled  by  appointment  by the governor upon the
     4  advice  and  consent  of  the senate and the term of such new [chairman]
     5  chairperson shall terminate June thirtieth, two  thousand  fifteen.  The
     6  [sixteen]  twenty  other  members  first  appointed  shall serve for the
     7  following terms: The members from the counties of Nassau and Westchester
     8  shall each serve for a term  ending  June  thirtieth,  nineteen  hundred
     9  eighty-five;  the  members from the county of Suffolk and from the coun-
    10  ties of Dutchess, Orange, Putnam and Rockland shall  each  serve  for  a
    11  term  ending  June  thirtieth,  nineteen  hundred ninety-two; two of the
    12  members appointed on recommendation of the mayor of the city of New York
    13  shall each serve for a term  ending  June  thirtieth,  nineteen  hundred
    14  eighty-four  and, two shall each serve for a term ending June thirtieth,
    15  nineteen hundred eighty-one; two of the members appointed by the  gover-
    16  nor  without the recommendation of any other person shall each serve for
    17  a term ending June thirtieth, nineteen  hundred  eighty-two,  two  shall
    18  each serve for a term ending June thirtieth, nineteen hundred eighty and
    19  one  shall  serve  for  a  term  ending June thirtieth, nineteen hundred
    20  eighty-five the member appointed by the governor  on  recommendation  of
    21  the  New  York city transit authority advisory council shall serve for a
    22  term ending  June  thirtieth,  two  thousand  twenty-three;  the  member
    23  appointed  by  the  governor  on  recommendation of the Metro-North rail
    24  commuter council shall serve for a term ending June thirtieth, two thou-
    25  sand twenty-three; the member appointed by the governor  on  recommenda-
    26  tion  of  the Long Island rail road commuter's council shall serve for a
    27  term ending June thirtieth, two thousand twenty-three;  and  the  member
    28  appointed  by  the  governor  on recommendation of the MTA New York city
    29  transit's paratransit advisory committee selection committee shall serve
    30  for a term ending June thirtieth, two thousand twenty-three. The members
    31  from the counties of Dutchess, Orange, Putnam and  Rockland  shall  cast
    32  one collective vote.
    33    §  3.  Subdivision 2 of section 1263 of the public authorities law, as
    34  amended by chapter 55 of the  laws  of  1992,  is  amended  to  read  as
    35  follows:
    36    2.  The  [chairman]  chairperson  and the first vice [chairman] chair-
    37  person shall be paid a salary in the amount determined by the authority;
    38  the other members shall not receive a salary or other compensation. Each
    39  member, including the [chairman] chairperson and the first vice  [chair-
    40  man]  chairperson,  shall  be  entitled  to reimbursement for actual and
    41  necessary expenses incurred in the performance of his  or  her  official
    42  duties.
    43    §  4.  Paragraph  (a)  of  subdivision 4 of section 1263 of the public
    44  authorities law, as amended by chapter 506  of  the  laws  of  2009,  is
    45  amended to read as follows:
    46    (a)  Notwithstanding any provision of law to the contrary, the [chair-
    47  man] chairperson shall be the chief executive officer of  the  authority
    48  and shall be responsible for the discharge of the executive and adminis-
    49  trative  functions  and  powers  of the authority. The [chairman] chair-
    50  person may appoint an executive director and such  other  officials  and
    51  employees  as  shall  in  his or her judgment be needed to discharge the
    52  executive and administrative functions and powers of the authority.
    53    § 5. Paragraph (b) of subdivision 4 of  section  1263  of  the  public
    54  authorities  law,  as amended by section 1 of chapter 425 of the laws of
    55  2018, is amended to read as follows:

        S. 1508--B                         92
 
     1    (b) The [chairman] chairperson shall establish  committees  to  assist
     2  him  or  her  in  the performance of his or her duties and shall appoint
     3  members of the authority to  such  committees.  Among  such  committees,
     4  there  shall  be  a committee on operations of the New York city transit
     5  authority,  the  Manhattan and Bronx surface transit operating authority
     6  and the Staten Island rapid transit operating authority; a committee  on
     7  operations  of  the  Long Island Rail Road and the metropolitan suburban
     8  bus authority; a committee on operations  of  the  Metro-North  commuter
     9  railroad;  a committee on operations of the Triborough bridge and tunnel
    10  authority; a committee on finance; a committee on capital program  over-
    11  sight; and a committee on safety. In addition to such appointed members,
    12  each  of the non-voting members referred to in subparagraph two of para-
    13  graph (a) of subdivision one of this section shall serve on the  commit-
    14  tee  on capital program oversight, the committee on finance, the commit-
    15  tee on safety, the committee on operations of the Triborough bridge  and
    16  tunnel  authority, and the operations committee relevant to the commuter
    17  council that recommended such member. [The alternate non-voting  members
    18  shall  each serve on the respective operations committee relevant to the
    19  commuter council that recommended each member.] The committee on capital
    20  program oversight and the committee on safety  shall  include  not  less
    21  than  three members, and shall include the chairpersons of the committee
    22  on operations of the New York city transit authority, the Manhattan  and
    23  Bronx  surface  transit  operating authority and the Staten Island rapid
    24  transit operating authority, the committee on  operations  of  the  Long
    25  Island  Rail  Road  and the metropolitan suburban bus authority, and the
    26  committee on  operations  of  the  Metro-North  commuter  railroad.  The
    27  committee  on  safety  shall  convene  at  least  once annually and each
    28  committee chairperson, that is a member  of  the  committee  on  safety,
    29  shall  report  to  the  committee  on  safety  any  and all initiatives,
    30  concerns, improvements, or failures involving the safety of: (1) custom-
    31  ers; (2) employees; and (3) the public at large, in relation to authori-
    32  ty facilities and services. The capital program  committee  shall,  with
    33  respect  to  any approved or proposed capital program plans, (i) monitor
    34  the current and future availability of funds to  be  utilized  for  such
    35  plans approved or proposed to be submitted to the metropolitan transpor-
    36  tation  capital  program  review  board  as  provided  in section twelve
    37  hundred sixty-nine-b of this title; (ii) monitor the contract awards  of
    38  the  metropolitan transportation authority and the New York city transit
    39  authority to insure that such awards are consistent with (A)  provisions
    40  of law authorizing United States content and New York state content; (B)
    41  collective  bargaining  agreements;  (C) provisions of law providing for
    42  participation by minority and women-owned businesses; (D) New York state
    43  labor laws; (E) competitive bidding requirements including those regard-
    44  ing sole source contracts;  and  (F)  any  other  relevant  requirements
    45  established by law; (iii) monitor the award of contracts to determine if
    46  such  awards are consistent with the manner in which the work was tradi-
    47  tionally performed in the past provided, however, that any such determi-
    48  nation shall not be admissible as evidence in any arbitration  or  judi-
    49  cial   proceeding;   (iv)   review   the  relationship  between  capital
    50  expenditures pursuant to each such capital program plan and current  and
    51  future  operating budget requirements; (v) monitor the progress of capi-
    52  tal elements described in each capital program plan approved as provided
    53  in section twelve hundred sixty-nine-b of this title; (vi)  monitor  the
    54  expenditures  incurred  and  to  be  incurred for each such element; and
    55  (vii) identify capital elements not progressing on  schedule,  ascertain
    56  responsibility  therefor  and recommend those actions required or appro-

        S. 1508--B                         93
 
     1  priate to accelerate their implementation. The capital program committee
     2  shall issue a quarterly report on its activities and findings, and shall
     3  in connection with the preparation of  such  quarterly  report,  consult
     4  with the state division of the budget, the state department of transpor-
     5  tation, the members of the metropolitan transportation authority capital
     6  program  review  board and any other group the committee deems relevant,
     7  including public employee organizations, and, at least annually, with  a
     8  nationally  recognized independent transit engineering firm. Such report
     9  shall be made available to the members of the authority, to the  members
    10  of  the  metropolitan  transportation  authority  capital program review
    11  board, and the directors of the municipal assistance corporation for the
    12  city of New York.
    13    § 6. Paragraph (b) of subdivision 4 of  section  1263  of  the  public
    14  authorities  law,  as amended by section 2 of chapter 425 of the laws of
    15  2018, is amended to read as follows:
    16    (b) The [chairman] chairperson shall establish  committees  to  assist
    17  him  or  her  in  the performance of his or her duties and shall appoint
    18  members of the authority to  such  committees.  Among  such  committees,
    19  there  shall  be  a committee on operations of the New York city transit
    20  authority, the Manhattan and Bronx surface transit  operating  authority
    21  and  the Staten Island rapid transit operating authority; a committee on
    22  operations of the Long Island Rail Road and  the  metropolitan  suburban
    23  bus  authority;  a  committee  on operations of the Metro-North commuter
    24  railroad; a committee on operations of the Triborough bridge and  tunnel
    25  authority;  a committee on finance; a committee on capital program over-
    26  sight; and a committee on safety. The committee on capital program over-
    27  sight shall include not less than four members, and  shall  include  the
    28  chairpersons of the committee on operations of the New York city transit
    29  authority,  the  Manhattan and Bronx surface transit operating authority
    30  and the Staten Island rapid transit operating authority,  the  committee
    31  on operations of the Long Island Rail Road and the metropolitan suburban
    32  bus  authority,  the committee on operations of the Metro-North commuter
    33  railroad, and the committee on safety. The  committee  on  safety  shall
    34  convene at least once annually and each committee chairperson, that is a
    35  member  of  the  committee  on  safety, shall report to the committee on
    36  safety any and all  initiatives,  concerns,  improvements,  or  failures
    37  involving  the  safety  of:  (1)  customers;  (2) employees; and (3) the
    38  public at large, in relation to authority facilities and  services.  The
    39  capital  program  committee  shall,  with  respect  to  any  approved or
    40  proposed capital program plans,  (i)  monitor  the  current  and  future
    41  availability of funds to be utilized for such plans approved or proposed
    42  to  be  submitted  to  the  metropolitan  transportation capital program
    43  review board as provided in section twelve hundred sixty-nine-b of  this
    44  title;  (ii) monitor the contract awards of the metropolitan transporta-
    45  tion authority and the New York city transit authority  to  insure  that
    46  such awards are consistent with (A) provisions of law authorizing United
    47  States  content  and  New  York state content; (B) collective bargaining
    48  agreements; (C) provisions of law providing for participation by minori-
    49  ty and women-owned businesses;  (D)  New  York  state  labor  laws;  (E)
    50  competitive  bidding  requirements including those regarding sole source
    51  contracts; and (F) any other relevant requirements established  by  law;
    52  (iii)  monitor  the  award  of contracts to determine if such awards are
    53  consistent with the manner in which the work was traditionally performed
    54  in the past provided, however, that any such determination shall not  be
    55  admissible  as  evidence in any arbitration or judicial proceeding; (iv)
    56  review the relationship between capital expenditures  pursuant  to  each

        S. 1508--B                         94
 
     1  such  capital  program  plan  and  current  and  future operating budget
     2  requirements; (v) monitor the progress of capital elements described  in
     3  each capital program plan approved as provided in section twelve hundred
     4  sixty-nine-b  of  this title; (vi) monitor the expenditures incurred and
     5  to be incurred  for  each  such  element;  and  (vii)  identify  capital
     6  elements  not progressing on schedule, ascertain responsibility therefor
     7  and recommend those actions required or appropriate to accelerate  their
     8  implementation.  The  capital  program committee shall issue a quarterly
     9  report on its activities and findings, and shall in connection with  the
    10  preparation of such quarterly report, consult with the state division of
    11  the  budget,  the state department of transportation, the members of the
    12  metropolitan transportation authority capital program review  board  and
    13  any  other group the committee deems relevant, including public employee
    14  organizations, and, at least  annually,  with  a  nationally  recognized
    15  independent  transit  engineering firm. Such report shall be made avail-
    16  able to the members of the authority, to the members of the metropolitan
    17  transportation authority capital program review board, and the directors
    18  of the municipal assistance corporation for the city of New York.
    19    § 7. Paragraphs (c) and (d) of subdivision 4 of section  1263  of  the
    20  public  authorities  law,  paragraph  (c) as added by chapter 247 of the
    21  laws of 1990, paragraph (d) as added by section 5 of part H  of  chapter
    22  25 of the laws of 2009, are amended to read as follows:
    23    (c)  The  [chairman] chairperson shall ensure that at every meeting of
    24  the board and at every meeting of each committee  the  public  shall  be
    25  allotted a period of time, not less than thirty minutes, to speak on any
    26  topic on the agenda.
    27    (d)  Notwithstanding paragraph (c) of subdivision one of section twen-
    28  ty-eight hundred twenty-four of this chapter or any other  provision  of
    29  law to the contrary, the [chairman] chairperson shall not participate in
    30  establishing authority policies regarding the payment of salary, compen-
    31  sation  and  reimbursement  to,  nor  establish  rules  for the time and
    32  attendance of, the chief executive officer. The salary of the [chairman]
    33  chairperson, as determined pursuant to subdivision two of this  section,
    34  shall also be compensation for all services performed as chief executive
    35  officer.
    36    §  8. This act shall take effect immediately; provided that the amend-
    37  ments to paragraph (a) of subdivision 1 of section 1263  of  the  public
    38  authorities  law made by section one of this act shall be subject to the
    39  expiration and reversion of such paragraph  pursuant  to  section  3  of
    40  chapter  549  of  the  laws of 1994, as amended, when upon such date the
    41  provisions of section two of this act shall take  effect;  and  provided
    42  further that the amendments to paragraph (b) of subdivision 4 of section
    43  1263  of  the  public  authorities  law made by section five of this act
    44  shall be subject to the expiration and  reversion  of  such  subdivision
    45  pursuant  to  section  3 of chapter 549 of the laws of 1994, as amended,
    46  when upon such date the provisions of section six of this act shall take
    47  effect.
 
    48                                  SUBPART E
 
    49    Section 1. The opening paragraph of paragraph (g) of subdivision 9  of
    50  section  1209  of the public authorities law, as added by chapter 929 of
    51  the laws of 1986, is amended to read as follows:
    52    the authority issues a competitive request for proposals  pursuant  to
    53  the  procedures of paragraph (f) of this subdivision for the purchase or
    54  rehabilitation of rapid transit cars and omnibuses. Any such request may

        S. 1508--B                         95
 
     1  include among the stated selection criteria the performance of all or  a
     2  portion  of  the contract at sites within the state of New York by busi-
     3  nesses located within the state at the time the competitive request  for
     4  proposals  is  issued  or the use of goods produced or services provided
     5  within the state of New York, provided however that in  no  event  shall
     6  the  authority  award a contract to a manufacturer whose final offer, as
     7  expressed in unit cost is more than ten percent  higher  than  the  unit
     8  cost  of any qualified competing final offer, if the sole basis for such
     9  award is that the higher priced offer includes more favorable  provision
    10  for  the  performance  of  the  contract within the state of New York by
    11  businesses located within the state at the time the competitive  request
    12  for  proposals  is  issued  or  the  use  of  goods produced or services
    13  provided within the state of New York, and  further  provided  that  the
    14  authority's discretion to award a contract to any manufacturer shall not
    15  be so limited if a basis for such award, as determined by the authority,
    16  is  superior  financing,  delivery schedule, life cycle, reliability, or
    17  any other  factor  the  authority  deems  relevant  to  its  operations.
    18  Provided,  however,  that  this authorization shall apply to any capital
    19  element proposed to be initiated using state funds  or  authority-issued
    20  bonds  in  the  two  thousand  twenty--two  thousand twenty-four capital
    21  program required pursuant to section twelve hundred sixty-nine-b of this
    22  article or for any expenditure related to implementation of a congestion
    23  tolling collection system, and  that  the  unit  cost  for  any  capital
    24  element  cannot  exceed  the  unit cost of any qualified competing final
    25  offer by twenty-five percent.
    26    § 2. The opening paragraph  of  paragraph  (g)  of  subdivision  4  of
    27  section 1265-a of the public authorities law, as added by chapter 929 of
    28  the laws of 1986, is amended to read as follows:
    29    the  authority  issues a competitive request for proposals pursuant to
    30  the procedures of paragraph (f) of this subdivision for the purchase  or
    31  rehabilitation  of rail cars and omnibuses. Any such request may include
    32  among the stated selection criteria the performance of all or a  portion
    33  of  the  contract  at  sites  within the state of New York by businesses
    34  located within the  state  at  the  time  the  competitive  request  for
    35  proposals  is  issued  or the use of goods produced or services provided
    36  within the state of New York, provided however that in  no  event  shall
    37  the  authority  award a contract to a manufacturer whose final offer, as
    38  expressed in unit cost is more than ten percent  higher  than  the  unit
    39  cost  of any qualified competing final offer, if the sole basis for such
    40  award is that the higher priced offer includes more favorable  provision
    41  for  the  performance  of  the  contract within the state of New York by
    42  businesses located within the state at the time the competitive  request
    43  for  proposals  is  issued  or  the  use  of  goods produced or services
    44  provided within the state of New York, and  further  provided  that  the
    45  authority's discretion to award a contract to any manufacturer shall not
    46  be so limited if a basis for such award, as determined by the authority,
    47  is  superior  financing,  delivery schedule, life cycle, reliability, or
    48  any other  factor  the  authority  deems  relevant  to  its  operations.
    49  Provided,  however,  that  this authorization shall apply to any capital
    50  element proposed to be initiated using state funds  or  authority-issued
    51  bonds  in  the  two  thousand  twenty--two  thousand twenty-four capital
    52  program required pursuant to section twelve hundred sixty-nine-b of this
    53  article or for any expenditure related to implementation of a congestion
    54  tolling collection system, and  that  the  unit  cost  for  any  capital
    55  element  cannot  exceed  the  unit cost of any qualified competing final
    56  offer by twenty-five percent.

        S. 1508--B                         96
 
     1    § 3. Section 559 of the public authorities law, as amended by  chapter
     2  6 of the laws of 1940, is amended to read as follows:
     3    §  559. [Construction contracts] Contracts.  1. The authority shall do
     4  all construction pursuant to a contract or contracts in the  manner,  so
     5  far as practicable, provided in the charter of the city for contracts of
     6  such city except that where the estimated expense of a contract does not
     7  exceed  ten  thousand  dollars such contract may be entered into without
     8  public letting, but failure to comply with this section shall not inval-
     9  idate such contracts.
    10    2. When issuing a competitive request for proposals  for  purposes  of
    11  establishing and implementing a congestion tolling program, the authori-
    12  ty  shall include among the stated selection criteria the performance of
    13  all or a portion of the contract at sites within the state of  New  York
    14  by  businesses  located  within  the  state  at the time the competitive
    15  request for proposals is issued or the use of goods produced or services
    16  provided within the state of New York, provided however that in no event
    17  shall the authority award a  contract  to  a  manufacturer  whose  final
    18  offer, as expressed in unit cost is more than twenty-five percent higher
    19  than  the  unit cost of any qualified competing final offer, if the sole
    20  basis for such award is that  the  higher  priced  offer  includes  more
    21  favorable provision for the performance of the contract within the state
    22  of  New  York  by  businesses  located  within the state at the time the
    23  competitive request for  proposals  is  issued,  or  the  use  of  goods
    24  produced  or services provided within the state of New York, and further
    25  provided that the authority's discretion to  award  a  contract  to  any
    26  manufacturer  shall  not  be  so  limited  if a basis for such award, as
    27  determined by the authority, is superior financing,  delivery  schedule,
    28  life  cycle,  reliability, or any other factor the authority deems rele-
    29  vant to its operations.
    30    § 4. This act shall take effect immediately; provided,  however,  that
    31  sections one and two of this act shall take effect October 1, 2019.
 
    32                                  SUBPART F
 
    33    Section 1. Legislative intent. The legislature finds and declares that
    34  performance metrics used by the Metropolitan Transportation Authority do
    35  not provide adequate information about the actual performance and deliv-
    36  ery  of  the Authority's services, and that improved data collection and
    37  sharing on system performance and service delivery could  yield  signif-
    38  icant improvements at the Authority.
    39    §  2.  The  public  authorities law is amended by adding a new section
    40  1276-f to read as follows:
    41    § 1276-f. Metropolitan transportation  authority  transit  performance
    42  metrics. 1. Definitions. For the purposes of this section, the following
    43  terms shall have the following meanings:
    44    (a)  "additional  platform  time"  means  the  average added time that
    45  customers spend waiting on the platform for a train, compared with their
    46  scheduled wait time.
    47    (b) "additional train time" means the average additional time  custom-
    48  ers spend onboard the train due to various service issues.
    49    (c)  "customer  journey  time  performance"  means  the  percentage of
    50  customer trips with an estimated total travel time within two minutes of
    51  the scheduled total travel time.
    52    (d)  "elevator  availability"  means  percentage  of  facilities  that
    53  require the use of stairs and have an operational elevator.

        S. 1508--B                         97
 
     1    (e)  "escalator  availability"  means  percentage  of  facilities that
     2  require the use of stairs and have an operational escalator.
     3    (f)  "excess  journey  time" means comparison of measured journey time
     4  compared to scheduled and standard journey times.
     5    (g) "journey time metric" means the times of each component of a  trip
     6  including  access,  egress, interchange, time in queue for tickets, time
     7  on platform and time on train. Journey time and its  components  may  be
     8  based on a manual or an automatically generated sample.
     9    (h) "major incidents" mean incidents that delay twenty or more trains.
    10    (i)  "staff  hours  lost  to  accidents" means staff hours lost due to
    11  accidents or illegal activity per billion passenger journeys.
    12    (j) "standard journey time" means the ideal journey time calculated by
    13  the metropolitan transportation authority for a particular journey.
    14    (k) "terminal on-time performance"  means  the  percentage  of  trains
    15  arriving  at  their  destination  terminals as scheduled. A train may be
    16  counted as on-time if it arrives at its destination early, on  time,  or
    17  no more than two minutes late, and has not skipped any planned stops.
    18    2. Reporting. The metropolitan transportation authority shall take all
    19  practicable measures to collect, compile and publish performance metrics
    20  of  all  services provided by New York city transit subways, long island
    21  railroad and metro-north railroad on a weekly basis. These metrics shall
    22  include but not be limited to:
    23    (a) additional platform time;
    24    (b) additional train time;
    25    (c) customer journey time performance;
    26    (d) elevator availability;
    27    (e) escalator availability;
    28    (f) excess journey time;
    29    (g) journey time metric;
    30    (h) major incidents metric;
    31    (i) staff hours lost to accidents; and
    32    (j) terminal on-time performance.
    33    3. International benchmarking. (a)  The  authority  shall  publish  an
    34  annual  report presenting the authority's performance in comparison with
    35  other metros who are members of the community of metros known as  CoMET.
    36  This report shall include, but not be limited to, the following metrics:
    37    (i) total operating cost per car per mile;
    38    (ii) maintenance cost per car per km;
    39    (iii) passenger journeys per total staff and contractor hours; and
    40    (iv) staff hours lost to accidents.
    41    (b)  The  authority shall also provide an annual implementation report
    42  to the governor, the temporary president of the senate, the  speaker  of
    43  the  assembly,  the  minority leader of the assembly and senate, and the
    44  chairs and ranking  members  of  the  transportation  and  corporations,
    45  authorities  and  commissions  committees  on or before December thirty-
    46  first every year, and publish such report on its website.
    47    § 3. This act shall take effect on the one hundred eightieth day after
    48  it shall have become a law.
    49    § 2. If any  clause,  sentence,  paragraph,  subdivision,  section  or
    50  subpart  of  this act shall be adjudged by any court of competent juris-
    51  diction to be invalid, such judgment shall not affect, impair, or inval-
    52  idate the remainder thereof, but shall be confined in its  operation  to
    53  the clause, sentence, paragraph, subdivision, section or subpart thereof
    54  directly  involved  in the controversy in which such judgment shall have
    55  been rendered. It is hereby declared to be the intent of the legislature

        S. 1508--B                         98

     1  that this act would have been enacted even if  such  invalid  provisions
     2  had not been included herein.
     3    §  3.  This  act shall take effect immediately provided, however, that
     4  the applicable effective date of Subparts A through F of this act  shall
     5  be as specifically set forth in the last section of such Subparts.
 
     6                                   PART FF
 
     7    Section  1. Paragraphs (b-1) and (c-3) of subdivision 2 of section 503
     8  of the vehicle and traffic law, paragraph (b-1) as added  by  section  1
     9  and paragraph (c-3) as added by section 2 of part A of chapter 25 of the
    10  laws of 2009, are amended  to read as follows:
    11    (b-1)  Supplemental  learner  permit/license  fee  in the metropolitan
    12  commuter transportation district. (i) Upon passage of the knowledge test
    13  required to obtain a learner's  permit,  an  applicant  for  a  driver's
    14  license who resides in the metropolitan commuter transportation district
    15  established  by section one thousand two hundred sixty-two of the public
    16  authorities law shall be required to  pay  a  supplemental  fee  of  one
    17  dollar  for each six months or portion thereof of the period of validity
    18  of a learner's permit or license which is or may be issued  pursuant  to
    19  the  provisions  of  subparagraph  (i)  or (ii) of paragraph (b) of this
    20  subdivision.
    21    (ii) The commissioner shall deposit daily all funds collected pursuant
    22  to subparagraph (i) of this paragraph with such responsible banks, bank-
    23  ing houses or trust companies as may be designated by  the  state  comp-
    24  troller,  [to  the credit of the comptroller] in trust for the credit of
    25  the metropolitan transportation authority. An account may be established
    26  in one or more of such depositories. Such deposits shall be  kept  sepa-
    27  rate   and  apart  from  all  other  money  in  the  possession  of  the
    28  comptroller. On or before the twelfth day of each month, the commission-
    29  er shall certify to the comptroller the amount of all revenues  received
    30  pursuant to subparagraph (i) of this paragraph during the prior month as
    31  a  result  of  the  supplemental fee imposed, including any interest and
    32  penalties thereon. The revenues so certified over the prior three months
    33  in total shall be [deposited by the state comptroller in  the  metropol-
    34  itan  transportation  authority  aid  trust  account of the metropolitan
    35  transportation authority financial assistance fund established  pursuant
    36  to  section  ninety-two-ff of the state finance law for deposit, subject
    37  to] paid over by the fifteenth day of the last month  of  each  calendar
    38  quarter  from  such account, without appropriation, [in] into the corpo-
    39  rate transportation account of the metropolitan transportation authority
    40  special assistance fund established by section twelve hundred  seventy-a
    41  of  the  public  authorities law, to be applied as provided in paragraph
    42  (e) of subdivision four of such section. Any money collected pursuant to
    43  this section that is deposited by the comptroller in  the  [metropolitan
    44  transportation  authority  aid  trust  account] corporate transportation
    45  account of the metropolitan transportation authority [financial] special
    46  assistance fund shall be held in such fund free and clear of  any  claim
    47  by  any  person  or  entity  paying  an  additional fee pursuant to this
    48  section, including, without limiting the generality  of  the  foregoing,
    49  any  right  or  claim against the metropolitan transportation authority,
    50  any of its bondholders, or any subsidiary or affiliate of the  metropol-
    51  itan transportation authority.
    52    (c-3) (i) Supplemental renewal fee in the metropolitan commuter trans-
    53  portation district. In addition to the fees required to be paid pursuant
    54  to  paragraph  (c) of this subdivision, a supplemental fee of one dollar

        S. 1508--B                         99
 
     1  for each six months or portion thereof of the validity  of  the  license
     2  shall  be  paid  for renewal of a license of a person who resides in the
     3  metropolitan commuter transportation district established by section one
     4  thousand  two  hundred sixty-two of the public authorities law issued by
     5  the commissioner.
     6    (ii) The commissioner shall deposit daily all funds collected pursuant
     7  to this paragraph with such responsible banks, banking houses  or  trust
     8  companies  as may be designated by the state comptroller, [to the credit
     9  of the comptroller] in trust for the credit of the  metropolitan  trans-
    10  portation  authority.  An  account  may be established in one or more of
    11  such depositories. Such deposits shall be kept separate and  apart  from
    12  all  other money in the possession of the comptroller.  On or before the
    13  twelfth day of each month, the commissioner shall certify to  the  comp-
    14  troller  the  amount of all revenues received pursuant to this paragraph
    15  during the prior month as a result of  the  supplemental  fees  imposed,
    16  including  any interest and penalties thereon. The revenues so certified
    17  over the prior three months in total shall be [deposited  by  the  state
    18  comptroller  in  the  metropolitan  transportation  authority  aid trust
    19  account of the metropolitan transportation authority  financial  assist-
    20  ance  fund  established  pursuant  to section ninety-two-ff of the state
    21  finance law for deposit, subject to] paid over by the fifteenth  day  of
    22  the  last  month  of  each  calendar  quarter from such account, without
    23  appropriation, [in] into the corporate  transportation  account  of  the
    24  metropolitan  transportation  authority  special  assistance fund estab-
    25  lished by section twelve hundred seventy-a  of  the  public  authorities
    26  law,  to  be applied as provided in paragraph (e) of subdivision four of
    27  such section. Any money collected  pursuant  to  this  section  that  is
    28  deposited by the comptroller in the [metropolitan transportation author-
    29  ity aid trust account] corporate transportation account of the metropol-
    30  itan  transportation authority [financial] special assistance fund shall
    31  be held in such fund free and clear of any claim by any person or entity
    32  paying an additional fee pursuant to this  section,  including,  without
    33  limiting the generality of the foregoing, any right or claim against the
    34  metropolitan  transportation  authority,  any of its bondholders, or any
    35  subsidiary or affiliate of the metropolitan transportation authority.
    36    § 2.   Section 499-d of the vehicle  and  traffic  law,  as  added  by
    37  section  1  of  part  B of chapter 25 of the laws of 2009, is amended to
    38  read as follows:
    39    § 499-d. Deposit and disposition of revenue from supplemental fee. The
    40  commissioner shall deposit daily all funds derived from  the  collection
    41  of  the  supplemental fee established pursuant to this article with such
    42  responsible banks, banking houses or trust companies as  may  be  desig-
    43  nated  by  the  state comptroller, [to the credit of the comptroller] in
    44  trust for the credit of the metropolitan  transportation  authority.  An
    45  account  may  be  established  in one or more of such depositories. Such
    46  deposits shall be kept separate and apart from all other  money  in  the
    47  possession  of  the  comptroller.   On or before the twelfth day of each
    48  month, the commissioner shall certify to the comptroller the  amount  of
    49  all revenues received pursuant to this article during the prior month as
    50  a  result  of  the  supplemental fee imposed, including any interest and
    51  penalties thereon. The revenues so certified over the prior three months
    52  in total shall be [deposited by the state comptroller in  the  metropol-
    53  itan  transportation  authority  aid  trust  account of the metropolitan
    54  transportation authority financial assistance fund established  pursuant
    55  to  section  ninety-two-ff of the state finance law for deposit, subject
    56  to] paid over by the fifteenth day of the last month  of  each  calendar

        S. 1508--B                         100
 
     1  quarter  from  such account, without appropriation, [in] into the corpo-
     2  rate transportation account of the metropolitan transportation authority
     3  special assistance fund established by section twelve hundred  seventy-a
     4  of  the  public  authorities law, to be applied as provided in paragraph
     5  (e) of subdivision four of such section. Any money collected pursuant to
     6  this section that is deposited by the comptroller in  the  [metropolitan
     7  transportation  authority  aid  trust  account] corporate transportation
     8  account of the metropolitan transportation authority [financial] special
     9  assistance fund shall be held in such fund free and clear of  any  claim
    10  by  any  person  or  entity  paying  an  additional fee pursuant to this
    11  section, including, without limiting the generality  of  the  foregoing,
    12  any  right  or  claim against the metropolitan transportation authority,
    13  any of its bondholders, or any subsidiary or affiliate of the  metropol-
    14  itan transportation authority.
    15    §  3.  Section 1288 of the tax law, as added by section 1 of part E of
    16  chapter 25 of the laws of 2009, is amended to read as follows:
    17    § 1288.  Deposit  and  disposition  of  revenue.  Notwithstanding  any
    18  provision  of law to the contrary: (a) All taxes, interest and penalties
    19  collected or received by the commissioner pursuant to this article shall
    20  be deposited daily with such responsible banks, banking houses or  trust
    21  companies,  as  may  be designated by the comptroller, [to the credit of
    22  the comptroller] in trust for the credit of the metropolitan transporta-
    23  tion authority. [Such an] An account may be established in one  or  more
    24  of  such  depositories.  Such  deposits shall be kept separate and apart
    25  from all other money in the possession of  the  comptroller.  The  comp-
    26  troller  shall  require adequate security from all such depositories. Of
    27  the total revenue collected or received under this  section,  the  comp-
    28  troller  shall  retain  in  the  comptroller's  hands such amount as the
    29  commissioner may determine to be necessary for refunds under this  arti-
    30  cle.  The  commissioner  is  authorized and directed to deduct from such
    31  amounts collected or received under this article,  before  deposit  into
    32  the accounts specified by the comptroller, a reasonable amount necessary
    33  to  effectuate  refunds of appropriations of the department to reimburse
    34  the department for the costs to administer, collect and  distribute  the
    35  taxes imposed by this article.
    36    (b)  On  or  before  the  twelfth day following the end of each month,
    37  after reserving such amount for such refunds and such costs, the commis-
    38  sioner shall certify to the comptroller the amount of  all  revenues  so
    39  received  pursuant to this article during the prior month as a result of
    40  the taxes, interest and penalties so imposed.
    41    (c) [The] By the fifteenth day of the  last  month  of  each  calendar
    42  quarter  the  comptroller shall pay over the amount of revenues from the
    43  prior three months in total so certified by  the  commissioner  [to  the
    44  metropolitan transportation authority aid trust account of the metropol-
    45  itan  transportation  authority financial assistance fund established by
    46  section ninety-two-ff of the state finance law for deposit, subject to],
    47  without appropriation, [in] into the corporate transportation account of
    48  the metropolitan transportation authority special assistance fund estab-
    49  lished by section twelve hundred seventy-a of the public authorities law
    50  to be applied as provided in paragraph (e) of subdivision four  of  such
    51  section  twelve  hundred seventy-a. Any money collected pursuant to this
    52  article that is deposited by the comptroller in the [metropolitan trans-
    53  portation authority aid trust account] corporate transportation  account
    54  of the metropolitan transportation authority [financial] special assist-
    55  ance  fund shall be held in such fund free and clear of any claim by any
    56  person or entity paying the tax pursuant  to  this  article,  including,

        S. 1508--B                         101
 
     1  without  limiting  the  generality  of the foregoing, any right or claim
     2  against the metropolitan transportation authority, any of its  bondhold-
     3  ers,  or  any subsidiary or affiliate of the metropolitan transportation
     4  authority.
     5    § 4. Section 1167 of the tax law, as amended by section 3 of part F of
     6  chapter 25 of the laws of 2009, is amended to read as follows:
     7    § 1167. Deposit and disposition of revenue. 1. All taxes, interest and
     8  penalties  collected  or received by the commissioner under this article
     9  shall be deposited and disposed of pursuant to the provisions of section
    10  one hundred seventy-one-a of this chapter, except that  after  reserving
    11  amounts  in  accordance  with  such section one hundred seventy-one-a of
    12  this chapter, the remainder shall be paid  by  the  comptroller  to  the
    13  credit  of  the  highway  and  bridge  trust fund established by section
    14  eighty-nine-b of the state finance law, provided, however, taxes, inter-
    15  est and penalties collected  or  received  pursuant  to  section  eleven
    16  hundred  sixty-six-a of this article shall be [paid to the credit of the
    17  metropolitan transportation authority aid trust account of the metropol-
    18  itan transportation authority financial assistance fund  established  by
    19  section  ninety-two-ff  of the state finance law] deposited and disposed
    20  of pursuant to subdivision two of this section.
    21    2. All taxes, interest, and penalties collected  or  received  by  the
    22  commissioner  pursuant  to  section  eleven  hundred sixty-six-a of this
    23  article shall be deposited daily with such  responsible  banks,  banking
    24  houses  or  trust companies, as may be designated by the comptroller, in
    25  trust for the credit of the metropolitan  transportation  authority.  An
    26  account  may  be  established  in one or more of such depositories. Such
    27  deposits will be kept separate and apart from all  other  money  in  the
    28  possession  of  the  comptroller.  Of  the  total  revenue  collected or
    29  received under this article, the comptroller shall retain such amount as
    30  the commissioner may determine to be necessary for  refunds  under  this
    31  article.  On  or  before  the twelfth day of each month, after reserving
    32  such amount for such refunds and deducting such amounts for such  costs,
    33  the  commissioner  shall  certify  to  the comptroller the amount of all
    34  revenues received pursuant to this article during the prior month  as  a
    35  result of the tax imposed, including any interest and penalties thereon.
    36  The amount of revenues so certified over the prior three months in total
    37  shall be paid over by the fifteenth day of the last month of each calen-
    38  dar quarter from such account, without appropriation, into the corporate
    39  transportation  account  of  the  metropolitan  transportation authority
    40  special assistance fund established by section twelve hundred  seventy-a
    41  of  the  public  authorities law, to be applied as provided in paragraph
    42  (e) of subdivision four of such section.
    43    § 5.  Subdivision 3 and paragraph (a)  of  subdivision  6  of  section
    44  92-ff  of  the state finance law, subdivision 3 as amended by section 14
    45  of part UU of chapter 59 of the laws of 2018 and paragraph (a) of subdi-
    46  vision 6 as added by section 1 of part G of chapter 25 of  the  laws  of
    47  2009, are amended to read as follows:
    48    3. Such fund shall consist of all moneys collected therefor or credit-
    49  ed  or  transferred  thereto  from  any  other fund, account or source[,
    50  including, without limitation, the revenues  derived  from  the  special
    51  supplemental  tax  on  passenger  car  rentals imposed by section eleven
    52  hundred sixty-six-a of the tax law; revenues derived from the  transpor-
    53  tation  surcharge  imposed  by article twenty-nine-A of the tax law; the
    54  supplemental registration fees imposed by  article  seventeen-C  of  the
    55  vehicle  and  traffic  law;  and  the supplemental metropolitan commuter
    56  transportation district license fees imposed  by  section  five  hundred

        S. 1508--B                         102

     1  three  of  the  vehicle  and  traffic law]. Any interest received by the
     2  comptroller on moneys on  deposit  in  the  metropolitan  transportation
     3  authority  financial  assistance  fund shall be retained in and become a
     4  part of such fund.
     5    (a)  The  "metropolitan  transportation  authority  aid trust account"
     6  shall consist of [revenues required to be deposited therein pursuant  to
     7  the  provisions  of  section  eleven hundred sixty-six-a of the tax law;
     8  article twenty-nine-A of the tax law; article seventeen-C of the vehicle
     9  and traffic law; and section five hundred three of the vehicle and traf-
    10  fic law, and all other] moneys credited or transferred thereto from  any
    11  other [fund or] source pursuant to law.
    12    §  6.  Section  4  of the state finance law is amended by adding a new
    13  subdivision 13 to read as follows:
    14    13. Notwithstanding subdivision one of this section and any other  law
    15  to the contrary, the revenue (including fees, taxes, interest and penal-
    16  ties)  from  the  metropolitan  commuter transportation district supple-
    17  mental fees and taxes imposed pursuant to paragraph (b-1) of subdivision
    18  two of section five hundred three of the vehicle and traffic law,  para-
    19  graph  (c-3)  of  subdivision  two  of section five hundred three of the
    20  vehicle and traffic law, article seventeen-C of the vehicle and  traffic
    21  law,  article  twenty-nine-A  of  the tax law and section eleven hundred
    22  sixty-six-a of the tax law which are paid in  accordance  with  subpara-
    23  graph (ii) of paragraph (b-1) of subdivision two of section five hundred
    24  three  of  the  vehicle  and traffic law, subparagraph (ii) of paragraph
    25  (c-3) of subdivision two of section five hundred three  of  the  vehicle
    26  and  traffic law, section twelve hundred eighty-eight of the tax law and
    27  section eleven hundred sixty-seven of the tax  law  into  the  corporate
    28  transportation  account  of  the  metropolitan  transportation authority
    29  special assistance fund established by section twelve hundred  seventy-a
    30  of  the  public  authorities  law  shall be made pursuant to statute but
    31  without an appropriation.
    32    § 7.  Subdivision 1 and paragraph (e)  of  subdivision  4  of  section
    33  1270-a  of  the  public  authorities  law,  subdivision  1 as amended by
    34  section 14 and paragraph (e) of subdivision 4 as added by section 15  of
    35  part  H  of  chapter  25  of  the  laws  of 2009, are amended to read as
    36  follows:
    37    1. The authority shall create and establish a fund to be known as  the
    38  "metropolitan  transportation  authority  special assistance fund" which
    39  shall be kept separate from and shall not be commingled with  any  other
    40  moneys  of  the  authority. The special assistance fund shall consist of
    41  three separate accounts: (i) the "transit account", (ii)  the  "commuter
    42  railroad account" and (iii) the "corporate transportation account".
    43    The  authority  shall  make  deposits  in  the transit account and the
    44  commuter railroad account of the moneys received by it pursuant  to  the
    45  provisions  of  subdivision  one of section two hundred sixty-one of the
    46  tax law in accordance with the provisions thereof, and shall make depos-
    47  its in the corporate transportation account of the moneys received by it
    48  pursuant to the provisions of subdivision two  of  section  two  hundred
    49  sixty-one  of the tax law and section ninety-two-ff of the state finance
    50  law. The comptroller shall  deposit,  without  appropriation,  into  the
    51  corporate  transportation  account the revenue fees, taxes, interest and
    52  penalties collected in accordance with paragraph  (b-1)  of  subdivision
    53  two  of section five hundred three of the vehicle and traffic law, para-
    54  graph (c-3) of subdivision two of section  five  hundred  three  of  the
    55  vehicle  and traffic law, article seventeen-C of the vehicle and traffic

        S. 1508--B                         103
 
     1  law, article twenty-nine-A of the tax law  and  section  eleven  hundred
     2  sixty-six-a of the tax law.
     3    (e)  Notwithstanding the foregoing provisions of this subdivision, any
     4  moneys in the corporate transportation account that are received by  the
     5  authority: (i) without appropriation pursuant to subdivision one of this
     6  section,  or (ii) pursuant to the provisions of section ninety-two-ff of
     7  the state finance law may be pledged by the authority, or pledged to the
     8  Triborough bridge and tunnel authority, to secure bonds, notes or  other
     9  obligations of the authority or the Triborough bridge and tunnel author-
    10  ity, as the case may be, and, if so pledged to the Triborough bridge and
    11  tunnel  authority,  shall  be  paid  to the Triborough bridge and tunnel
    12  authority in such amounts and at such times as necessary to  pay  or  to
    13  reimburse  that  authority  for  its payment of debt service and reserve
    14  requirements, if any, on that portion of special Triborough  bridge  and
    15  tunnel  authority  bonds  and notes issued by that authority pursuant to
    16  section five hundred fifty-three-d  of  this  chapter.  Subject  to  the
    17  provisions  of any such pledge, or in the event there is no such pledge,
    18  any moneys in the  corporate  transportation  account  received  by  the
    19  authority: (i) without appropriation pursuant to subdivision one of this
    20  section,  or (ii) pursuant to the provisions of section ninety-two-ff of
    21  the state finance law may be used by the authority for payment of  oper-
    22  ating  costs  of,  and capital costs, including debt service and reserve
    23  requirements, if any, of or for the authority, the New York city transit
    24  authority and their subsidiaries as the authority  shall  determine.  No
    25  moneys  in the corporate transportation account that are reserved by the
    26  authority: (i) without appropriation pursuant to subdivision one of this
    27  section; or (ii) pursuant to the provisions of section ninety-two-ff  of
    28  the  state  finance law may be used for making any payment to the Dutch-
    29  ess, Orange and Rockland fund created by section twelve  hundred  seven-
    30  ty-b  of this title or considered in calculating the amounts required to
    31  be paid into such fund.
    32    § 8. This act shall take effect immediately.
 
    33                                   PART GG
 
    34    Section 1. Paragraph 5 of  subdivision  (c)  and  subdivision  (e)  of
    35  section  1111-c  of the vehicle and traffic law, as amended by section 6
    36  of part NNN of chapter 59 of the laws of 2018, are  amended  and  a  new
    37  subdivision (n) is added to read as follows:
    38    5. "bus rapid transit program" shall mean [up to ten routes] any route
    39  designated  by the New York city department of transportation in consul-
    40  tation with the applicable mass transit agency, in addition to  the  Bus
    41  Rapid  Transit Phase I plan routes, that operate on designated bus lanes
    42  and that may include upgraded signage, enhanced road  markings,  minimum
    43  bus  stop  spacing,  off-board fare payment, traffic signal priority for
    44  buses, and any other enhancement that increases bus speed  or  reliabil-
    45  ity.
    46    (e)  An owner liable for a violation of a bus lane restriction imposed
    47  on any route within a bus rapid transit  program  shall  be  liable  for
    48  monetary  penalties in accordance with a schedule of fines and penalties
    49  promulgated by the parking violations bureau of the city  of  New  York;
    50  provided,  however,  that  the monetary penalty for violating a bus lane
    51  restriction shall not exceed one hundred [fifteen] twenty-five  dollars,
    52  one  hundred  fifty  dollars  for a second offense within a twelve-month
    53  period, two hundred dollars for a third offense  within  a  twelve-month
    54  period,  two hundred fifty dollars for a fourth offense within a twelve-

        S. 1508--B                         104
 
     1  month period, and  three  hundred  fifty  dollars  for  each  subsequent
     2  offense  within  a twelve-month period; provided, further, that an owner
     3  shall be liable for an additional  penalty  not  to  exceed  twenty-five
     4  dollars  for  each  violation  for the failure to respond to a notice of
     5  liability within the prescribed time period.
     6    (n) 1. Notwithstanding any other provision of law, in accordance  with
     7  the  provisions  of  this  subdivision,  the  city of New York is hereby
     8  authorized and empowered to impose monetary liability on the owner of  a
     9  vehicle for failure of an operator thereof to comply with the applicable
    10  local laws and regulations of the city of New York relating to stopping,
    11  standing, parking and turning movements as defined herein, while operat-
    12  ing  a  vehicle  within the congestion toll zone or along designated bus
    13  corridors. The department of transportation of  the  city  of  New  York
    14  and/or  an  applicable  mass transit agency, shall operate photo devices
    15  that may be stationary or mobile and shall  be  activated  at  locations
    16  determined by such department of transportation and/or on buses selected
    17  by such department of transportation in consultation with the applicable
    18  mass transit agency. Locations of such photo devices shall be within the
    19  congestion toll zone in the borough of Manhattan or along designated bus
    20  corridors  to  be determined jointly by the department of transportation
    21  and the applicable mass transit agency.
    22    2. Any image or images captured by photo devices shall be inadmissible
    23  in any disciplinary proceeding convened by the applicable  mass  transit
    24  agency  or  any  subsidiary  thereof and any proceeding initiated by the
    25  department involving licensure privileges of bus operators.  Any  mobile
    26  bus  lane photo device mounted on a bus shall be directed outwardly from
    27  such bus to capture images of vehicles  operated  in  violation  of  the
    28  local  laws  relating  to stopping, standing, parking and turning, or in
    29  violation of bus lane restrictions, and images produced by  such  device
    30  shall  not be used for any other purpose in the absence of a court order
    31  requiring such images to be produced.
    32    3. The city of New York shall adopt and enforce  measures  to  protect
    33  the privacy of drivers, passengers, pedestrians and cyclists whose iden-
    34  tity and identifying information may be captured by a photo device. Such
    35  measures shall include:
    36    (i)  utilization  of  necessary  technologies to ensure, to the extent
    37  practicable, that images  produced  by  such  photo  devices  shall  not
    38  include images that identify the driver, the passengers, or the contents
    39  of  the  vehicle,  provided, however, that no notice of liability issued
    40  pursuant to this section shall be  dismissed  solely  because  an  image
    41  allows  for  the  identification  of the driver, the passengers or other
    42  contents of a vehicle;
    43    (ii) a prohibition on the use or dissemination  of  vehicles'  license
    44  plate  information  and  other  information and images captured by photo
    45  devices except: (A)  as  required  to  establish  liability  under  this
    46  section or collect payment of penalties; (B) as required by court order;
    47  (C)  as  required pursuant to a search warrant issued in accordance with
    48  the criminal procedure law or a subpoena; or (D) as  otherwise  required
    49  by law;
    50    (iii)  the  installation  of  signage  at  regular  intervals  in  the
    51  congestion toll zone and along the designated bus corridors stating that
    52  photo devices are used to enforce restrictions  on  stopping,  standing,
    53  parking and turning movements; and
    54    (iv) oversight procedures to ensure compliance with the aforementioned
    55  privacy protection measures.

        S. 1508--B                         105
 
     1    4. Photo devices authorized by this subdivision shall only be operated
     2  from 6:00 a.m. to 10:00 p.m. Warning notices of violation will be issued
     3  during  the  first sixty days that photo device enforcement is active in
     4  the congestion toll zone or along a designated bus corridor.
     5    5. The owner of a vehicle shall be liable for a penalty imposed pursu-
     6  ant  to  this  subdivision if such vehicle was used or operated with the
     7  permission of the owner, express or implied, in violation of any  appli-
     8  cable  local law or regulation defined herein, while operated within the
     9  congestion toll zone or  along  a  designated  bus  corridor,  and  such
    10  violation  is  evidenced  by  information  obtained from a photo device;
    11  provided however that no owner of a vehicle shall be liable for a penal-
    12  ty imposed pursuant to this subdivision where the operator of such vehi-
    13  cle has been convicted of the underlying violation  of  such  applicable
    14  local law or regulation.
    15    6. For purposes of this subdivision the following terms shall have the
    16  following meanings:
    17    (i)  "owner"  shall have the meaning provided in article two-B of this
    18  chapter.
    19    (ii) "photo device" shall mean a device that is capable  of  operating
    20  independently  of an enforcement officer and produces one or more images
    21  of each vehicle at the time it is in violation of  an  applicable  local
    22  law or regulation.
    23    (iii)  "applicable  local  law  or regulation" shall mean Chapter 4 of
    24  Title 34 of the Rules of the City of  New  York  relating  to  stopping,
    25  standing,  parking,  and turning movements, including but not limited to
    26  the following:
    27    § 4-08(f)(4) and § 4-12(m): General no standing zones, Bus lanes
    28    § 4-08(c)(3): Violation of posted no standing  rules  prohibited,  Bus
    29  stop
    30    § 4-08(f)(1): General no standing zones, Double parking
    31    §  4-08(k)(2):  Special  rules  for  commercial  vehicles, No standing
    32  except trucks loading and unloading
    33    § 4-08(a)(3): Standing prohibited
    34    § 4-07(b)(1) and § 4-08(e)(11): Stopping prohibited
    35    § 4-07(e)(4): General no stopping zones, Intersections
    36    § 4-08 (e)(5): General no stopping zones, Crosswalks
    37    § 4-08(e)(12: General no stopping zones, Obstructing traffic at inter-
    38  section.
    39    § 4-05, § 4-07(h)(2): Turns
    40    (iv) "congestion toll  zone"  shall  include  any  roadways,  bridges,
    41  tunnels  or ramps that are located within, or enter into, the geographic
    42  area in the borough of Manhattan established pursuant to article  forty-
    43  four-C of this chapter.
    44    7. A certificate, sworn to or affirmed by a technician employed by the
    45  city  in  which  the charged violation occurred, or a facsimile thereof,
    46  based upon inspection of  photographs,  microphotographs,  videotape  or
    47  other  recorded  images produced by a photo device, shall be prima facie
    48  evidence of the facts contained therein.   Any photographs,  microphoto-
    49  graphs,  videotape  or other recorded images evidencing such a violation
    50  shall be available for inspection in any proceeding  to  adjudicate  the
    51  liability for such violation pursuant to this subdivision.
    52    8. An owner liable for a violation shall be liable for monetary penal-
    53  ties in accordance with a schedule of fines and penalties promulgated by
    54  the  parking violations bureau of the city of New York; provided, howev-
    55  er, that the monetary penalty for a first  offense  of  a  provision  of
    56  local  law  or  regulation of the city of New York relating to stopping,

        S. 1508--B                         106
 
     1  standing, parking and  turning  movement  violations  pursuant  to  this
     2  subdivision  shall  not  exceed  one  hundred  twenty-five  dollars, one
     3  hundred fifty dollars for a second offense within a twelve-month period,
     4  two  hundred  dollars  for a third offense within a twelve-month period,
     5  two hundred fifty dollars for a fourth  offense  within  a  twelve-month
     6  period,  and  three  hundred  fifty  dollars for each subsequent offense
     7  within a twelve-month period; and provided, further, that an owner shall
     8  be liable for an additional penalty not to  exceed  twenty-five  dollars
     9  for  each  violation for the failure to respond to a notice of liability
    10  within the prescribed time period set forth in the notice of violation.
    11    9. An imposition of liability pursuant to this subdivision  shall  not
    12  be  deemed a conviction of an operator and shall not be made part of the
    13  operating record of the person upon whom such liability is imposed,  nor
    14  shall  it be used for insurance purposes in the provision of motor vehi-
    15  cle insurance coverage.
    16    10. (i) A notice of liability shall be sent by  first  class  mail  to
    17  each  person alleged to be liable as an owner for a violation under this
    18  section. Personal delivery to the owner shall not be required. A  manual
    19  or  automatic record of mailing prepared in the ordinary course of busi-
    20  ness shall be prima facie evidence of the facts contained therein.
    21    (ii) A notice of liability shall contain the name and address  of  the
    22  person  alleged  to be liable as an owner for a violation, the registra-
    23  tion number of the vehicle involved  in  such  violation,  the  location
    24  where  such  violation  took place including the street address or cross
    25  streets, one or more images identifying the violation, the date and time
    26  of such violation and the identification  number  of  the  photo  device
    27  which recorded the violation or other document locator number.
    28    (iii)  The  notice of liability shall contain information advising the
    29  person charged of the manner and the time in which he or she may contest
    30  the liability alleged in the notice.   Such notice  of  liability  shall
    31  also  contain  a  warning  to advise the persons charged that failure to
    32  contest in the manner and time provided shall be deemed an admission  of
    33  liability and that a default judgment may be entered thereon.
    34    (iv) The notice of liability shall be prepared and mailed by the agen-
    35  cy  or  agencies designated by the city of New York, or any other entity
    36  authorized by such  city  to  prepare  and  mail  such  notification  of
    37  violation.
    38    11.  Adjudication of the liability imposed upon owners by this section
    39  shall be by the New York city parking violations bureau.
    40    12. If an owner of a vehicle receives a notice of  liability  pursuant
    41  to  this  subdivision  for any time period during which such vehicle was
    42  reported to the police department as having been stolen, it shall  be  a
    43  valid  defense  to  an allegation of liability that the vehicle had been
    44  reported to the police  as  stolen  prior  to  the  time  the  violation
    45  occurred  and  had  not  been  recovered  by  such time. For purposes of
    46  asserting the defense provided by this subdivision it  shall  be  suffi-
    47  cient  that  a certified copy of the police report on the stolen vehicle
    48  be sent by first class mail to the parking  violations  bureau  of  such
    49  city.
    50    13.  (i)  An  owner  who is a lessor of a vehicle to which a notice of
    51  liability was issued pursuant to this subdivision shall  not  be  liable
    52  for  the violation of a local law or regulation defined herein, provided
    53  that:
    54    (A) prior to the violation, the lessor has  filed  with  such  parking
    55  violations  bureau  in  accordance  with  the  provisions of section two
    56  hundred thirty-nine of this chapter; and

        S. 1508--B                         107
 
     1    (B) within thirty-seven days after receiving notice from  such  bureau
     2  of the date and time of a liability, together with the other information
     3  contained  in  the  original  notice of liability, the lessor submits to
     4  such bureau the correct name and address of the lessee  of  the  vehicle
     5  identified  in  the  notice  of liability at the time of such violation,
     6  together with such other additional information contained in the rental,
     7  lease or other contract document, as may be reasonably required by  such
     8  bureau pursuant to regulations that may be promulgated for such purpose.
     9  Failure to timely submit such information shall render the lessor liable
    10  for the penalty prescribed in this subdivision.
    11    (ii)  Where  the  lessor complies with the provisions of clause (A) of
    12  this paragraph, the lessee of such vehicle on the date of such violation
    13  shall be deemed to be the owner of such vehicle  for  purposes  of  this
    14  subdivision,  shall  be subject to liability for such violation pursuant
    15  to this subdivision and shall be sent a notice of liability pursuant  to
    16  paragraph ten of this subdivision.
    17    14.  If  the  owner liable for a violation was not the operator of the
    18  vehicle at the time of the violation, the owner may maintain  an  action
    19  for indemnification against the operator.
    20    15.  Nothing  in  this  subdivision  shall  be  construed to limit the
    21  liability of an operator of a vehicle for any violation of an applicable
    22  local law or regulation.
    23    16. The city of New York and the applicable mass transit agency  shall
    24  submit a report on the results of the use of photo devices to the gover-
    25  nor, the temporary president of the senate and the speaker of the assem-
    26  bly  by  April  first,  within  twelve months of operation of such photo
    27  devices and every two years thereafter. Such report shall  include,  but
    28  not be limited to:
    29    (i)  a  description  of the locations and/or buses where photo devices
    30  were used;
    31    (ii) the total number of violations recorded on a monthly  and  annual
    32  basis;
    33    (iii) the total number of notices of liability issued;
    34    (iv)  the  number  of  fines  and total amount of fines paid after the
    35  first notice of liability;
    36    (v) the number of violations adjudicated and results of  such  adjudi-
    37  cations including breakdowns of dispositions made;
    38    (vi) the total amount of revenue realized by such city and any partic-
    39  ipating mass transit agency;
    40    (vii) the quality of the adjudication process and its results;
    41    (viii) the total number of cameras by type of camera; and
    42    (ix)  the total cost to the city and the total cost to any participat-
    43  ing mass transit agency.
    44    17. Any revenue from fines and penalties collected  pursuant  to  this
    45  subdivision  from mobile bus photo devices shall be remitted by the city
    46  of New York to the applicable mass transit agency on a  quarterly  basis
    47  to  be  deposited in the outer borough transportation account of the New
    48  York city transportation assistance fund established pursuant to section
    49  twelve hundred seventy-i of the public authorities law, as well as state
    50  of good repair needs and accessibility capital projects of the New  York
    51  city  transit  authority,  in  addition to any otherwise programmed fund
    52  uses.
    53    § 2. The opening paragraph of section 14 of part II of chapter  59  of
    54  the  laws  of  2010, amending the vehicle and traffic law and the public
    55  officers law relating to establishing a bus rapid transit  demonstration
    56  program  to  restrict  the  use  of bus lanes by means of bus lane photo

        S. 1508--B                         108
 
     1  devices, as amended by chapter 239 of the laws of 2015,  is  amended  to
     2  read as follows:
     3    This  act  shall  take effect on the ninetieth day after it shall have
     4  become a law and shall expire [10] 15 years after  such  effective  date
     5  when upon such date the provisions of this act shall be deemed repealed;
     6  and provided that any rules and regulations related to this act shall be
     7  promulgated on or before such effective date, provided that:
     8    §  3. This act shall take effect immediately; provided that the amend-
     9  ments to section 1111-c of the vehicle and traffic law made  by  section
    10  one of this act shall not affect the repeal of such section and shall be
    11  deemed  repealed  therewith. Effective immediately, the addition, amend-
    12  ment and/or repeal of any rule or regulation necessary for the implemen-
    13  tation of this act on its effective date are authorized to be  made  and
    14  completed on or before such effective date.
 
    15                                   PART HH
 
    16    Section  1. Section 45 of chapter 929 of the laws of 1986 amending the
    17  tax law and other  laws  relating  to  the  metropolitan  transportation
    18  authority,  as  amended by chapter 63 of the laws of 2017, is amended to
    19  read as follows:
    20    § 45. This act shall take effect immediately; except that:  (a)  para-
    21  graph  (d)  of  subdivision  3 of section 1263 of the public authorities
    22  law, as added by section twenty-six of this act, shall be deemed to have
    23  been in full force and effect on and after August 5, 1986; (b)  sections
    24  thirty-three  and thirty-four of this act shall not apply to a certified
    25  or recognized public employee organization which represents  any  public
    26  employees  described  in  subdivision  16  of section 1204 of the public
    27  authorities law and such sections shall expire on July  1,  [2019]  2021
    28  and nothing contained within these sections shall be construed to divest
    29  the  public  employment relations board or any court of competent juris-
    30  diction of the full power or authority to enforce any order made by  the
    31  board  or  such  court  prior to the effective date of this act; (c) the
    32  provisions of section thirty-five of this act shall expire on March  31,
    33  1987;  and  (d)  provided,  however,  the  commissioner  of taxation and
    34  finance shall have the power to enforce the provisions of  sections  two
    35  through nine of this act beyond December 31, 1990 to enable such commis-
    36  sioner to collect any liabilities incurred prior to January 1, 1991.
    37    § 2. This act shall take effect immediately.
 
    38                                   PART II
 
    39    Section  1.  Subdivisions 3 and 11 of section 120.05 of the penal law,
    40  subdivision 3 as amended by chapter 267 of the laws of 2016 and subdivi-
    41  sion 11 as separately amended by chapters 268 and 281  of  the  laws  of
    42  2016, are amended to read as follows:
    43    3.  With intent to prevent a peace officer, a police officer, prosecu-
    44  tor as defined in subdivision thirty-one of section 1.20 of the criminal
    45  procedure law, registered nurse, licensed practical nurse, public health
    46  sanitarian, New York city public health sanitarian, sanitation  enforce-
    47  ment  agent, New York city sanitation worker, a firefighter, including a
    48  firefighter acting as a paramedic or emergency medical technician admin-
    49  istering first aid in the course of performance of duty  as  such  fire-
    50  fighter,  an  emergency  medical  service paramedic or emergency medical
    51  service technician, or medical or related personnel in a hospital  emer-
    52  gency  department,  a  city  marshal,  a school crossing guard appointed

        S. 1508--B                         109
 
     1  pursuant to section two hundred eight-a of the general municipal law,  a
     2  traffic  enforcement  officer, traffic enforcement agent, highway worker
     3  as defined in section one hundred eighteen-a of the vehicle and  traffic
     4  law,  motor  vehicle inspector and motor carrier investigator as defined
     5  in section one hundred eighteen-b of the vehicle and traffic law,  motor
     6  vehicle license examiner as defined in section one hundred eighteen-c of
     7  the  vehicle and traffic law, highway inspector as referenced by section
     8  19-152 of the administrative code of the city of New York,  or  employee
     9  of  any  entity  governed  by  the  public  service law in the course of
    10  performing an essential service, from performing a lawful duty, by means
    11  including releasing or failing to control an animal under  circumstances
    12  evincing the actor's intent that the animal obstruct the lawful activity
    13  of such peace officer, police officer, prosecutor as defined in subdivi-
    14  sion  thirty-one  of  section 1.20 of the criminal procedure law, regis-
    15  tered nurse, licensed practical nurse,  public  health  sanitarian,  New
    16  York  city  public  health sanitarian, sanitation enforcement agent, New
    17  York city sanitation worker, firefighter,  paramedic,  technician,  city
    18  marshal, school crossing guard appointed pursuant to section two hundred
    19  eight-a of the general municipal law, traffic enforcement officer, traf-
    20  fic  enforcement agent, highway worker as defined in section one hundred
    21  eighteen-a of the vehicle and traffic law, motor vehicle  inspector  and
    22  motor  carrier investigator as defined in section one hundred eighteen-b
    23  of the vehicle and  traffic  law,  motor  vehicle  license  examiner  as
    24  defined  in  section  one  hundred eighteen-c of the vehicle and traffic
    25  law, highway inspector as referenced by section 19-152 of  the  adminis-
    26  trative  code of the city of New York, or employee of an entity governed
    27  by the public service law, he or she  causes  physical  injury  to  such
    28  peace  officer,  police  officer,  prosecutor  as defined in subdivision
    29  thirty-one of section 1.20 of the  criminal  procedure  law,  registered
    30  nurse, licensed practical nurse, public health sanitarian, New York city
    31  public  health  sanitarian,  sanitation enforcement agent, New York city
    32  sanitation worker, firefighter,  paramedic,  technician  or  medical  or
    33  related  personnel  in  a  hospital  emergency department, city marshal,
    34  school crossing guard, traffic enforcement officer, traffic  enforcement
    35  agent,  highway  worker  as defined in section one hundred eighteen-a of
    36  the vehicle and traffic law, motor vehicle inspector and  motor  carrier
    37  investigator as defined in section one hundred eighteen-b of the vehicle
    38  and  traffic  law,  motor vehicle license examiner as defined in section
    39  one hundred eighteen-c of the vehicle and traffic law, highway inspector
    40  as referenced by section 19-152 of the administrative code of  the  city
    41  of  New  York,  or  employee of an entity governed by the public service
    42  law; or
    43    11. With intent to cause physical injury to a train  operator,  ticket
    44  inspector, conductor, signalperson, bus operator, station agent, station
    45  cleaner [or], terminal cleaner, station customer assistant, person whose
    46  official  duties  include  the  sale  or  collection of tickets, passes,
    47  vouchers or other fare payment media for use on a train or  bus,  person
    48  whose official duties include the maintenance, repair, inspection, trou-
    49  bleshooting, testing or cleaning of a transit signal system, elevated or
    50  underground subway tracks, transit station structure, train yard, reven-
    51  ue train in passenger service, or a train or bus station or terminal, or
    52  a supervisor of such personnel employed by any transit agency, authority
    53  or company, public or private, whose operation is authorized by New York
    54  state  or  any  of  its political subdivisions, a city marshal, a school
    55  crossing guard appointed pursuant to section two hundred eight-a of  the
    56  general  municipal  law, a traffic enforcement officer, traffic enforce-

        S. 1508--B                         110
 
     1  ment agent, highway worker as defined in section one hundred  eighteen-a
     2  of the vehicle and traffic law, motor vehicle inspector and motor carri-
     3  er  investigator  as  defined  in  section one hundred eighteen-b of the
     4  vehicle  and  traffic  law, motor vehicle license examiner as defined in
     5  section one hundred eighteen-c of the vehicle and traffic  law,  highway
     6  inspector  as referenced by section 19-152 of the administrative code of
     7  the city of New York, prosecutor as defined in subdivision thirty-one of
     8  section 1.20 of  the  criminal  procedure  law,  sanitation  enforcement
     9  agent,  New  York  city sanitation worker, public health sanitarian, New
    10  York city public health sanitarian, registered nurse, licensed practical
    11  nurse, emergency medical service paramedic, or emergency medical service
    12  technician, he or she causes physical injury  to  such  train  operator,
    13  ticket  inspector, conductor, signalperson, bus operator, station agent,
    14  station cleaner [or],  terminal  cleaner,  station  customer  assistant,
    15  person  whose official duties include the sale or collection of tickets,
    16  passes, vouchers or other fare payment media for use on a train or  bus,
    17  person   whose   official   duties   include  the  maintenance,  repair,
    18  inspection, troubleshooting, testing or cleaning  of  a  transit  signal
    19  system,  elevated  or  underground subway tracks, transit station struc-
    20  ture, train yard, revenue train in passenger service, or a train or  bus
    21  station  or  terminal,  or a supervisor of such personnel, city marshal,
    22  school crossing guard appointed pursuant to section two hundred  eight-a
    23  of  the  general  municipal  law,  traffic  enforcement officer, traffic
    24  enforcement agent, highway worker as  defined  in  section  one  hundred
    25  eighteen-a  of  the vehicle and traffic law, motor vehicle inspector and
    26  motor carrier investigator as defined in section one hundred  eighteen-b
    27  of  the  vehicle  and  traffic  law,  motor  vehicle license examiner as
    28  defined in section one hundred eighteen-c of  the  vehicle  and  traffic
    29  law,  highway  inspector as referenced by section 19-152 of the adminis-
    30  trative code of the city of New York, prosecutor as defined in  subdivi-
    31  sion  thirty-one  of  section 1.20 of the criminal procedure law, regis-
    32  tered nurse, licensed practical nurse,  public  health  sanitarian,  New
    33  York  city  public  health sanitarian, sanitation enforcement agent, New
    34  York city sanitation worker, emergency  medical  service  paramedic,  or
    35  emergency  medical service technician, while such employee is performing
    36  an assigned duty on, or directly related to, the operation of a train or
    37  bus, [including the cleaning of a train  or  bus  station  or  terminal]
    38  cleaning of a train or bus station or terminal or maintenance of a train
    39  or  bus  station  or  terminal,  signal  system, elevated or underground
    40  subway tracks, transit station structure, train yard or revenue train in
    41  passenger service, or such city marshal, school crossing guard,  traffic
    42  enforcement  officer,  traffic  enforcement  agent,  highway  worker  as
    43  defined in section one hundred eighteen-a of  the  vehicle  and  traffic
    44  law,  motor  vehicle inspector and motor carrier investigator as defined
    45  in section one hundred eighteen-b of the vehicle and traffic law,  motor
    46  vehicle license examiner as defined in section one hundred eighteen-c of
    47  the  vehicle and traffic law, highway inspector as referenced by section
    48  19-152 of the administrative code of the city of New York, prosecutor as
    49  defined in subdivision thirty-one of section 1.20 of the criminal proce-
    50  dure law, registered nurse,  licensed  practical  nurse,  public  health
    51  sanitarian,  New York city public health sanitarian, sanitation enforce-
    52  ment agent, New York city sanitation worker, emergency  medical  service
    53  paramedic,  or  emergency  medical  service  technician is performing an
    54  assigned duty; or
    55    § 2. The vehicle and traffic  law  is  amended  by  adding  three  new
    56  sections 118-a, 118-b and 118-c to read as follows:

        S. 1508--B                         111
 
     1    §  118-a.  Highway  worker. Any person employed by or on behalf of the
     2  state, a county, city, town or village,  a  public  authority,  a  local
     3  authority,  or  a  public utility company, or the agent or contractor of
     4  any such entity, who has been assigned to perform  work  on  a  highway,
     5  including  maintenance,  repair,  flagging,  utility work, construction,
     6  reconstruction or operation of equipment on public  highway  infrastruc-
     7  ture  and associated rights-of-way in highway work areas, and shall also
     8  include any flagperson as defined in section one  hundred  fifteen-b  of
     9  this article.
    10    §  118-b.  Motor vehicle inspector and motor carrier investigator. Any
    11  person employed by the New York State department of  transportation  who
    12  has been assigned to perform inspections of any motor vehicles or inves-
    13  tigation  of  any  carriers regulated by the commissioner of transporta-
    14  tion.
    15    § 118-c. Motor vehicle license examiner. Any person  employed  by  the
    16  department who conducts road tests to ensure that only qualified persons
    17  are  licensed to operate motor vehicles or performs field inspections of
    18  the licensing aspect of driving schools, private  service  bureaus,  and
    19  motor  carriers,  or  any employee of the department who directly super-
    20  vises such employees.
    21    § 3. The vehicle and traffic law is amended by adding  a  new  section
    22  1221-a to read as follows:
    23    §  1221-a. Intrusion into an active work zone. 1. No driver of a vehi-
    24  cle shall enter or intrude into an active work zone except  upon  direc-
    25  tion  from  a  flagperson,  police  officer  or other visibly designated
    26  person in charge of traffic control or direction from a traffic  control
    27  device regulating entry  therein. For purposes of this section, the term
    28  "active  work zone" shall mean the physical area of a highway, street or
    29  private road on which construction, maintenance or utility work is being
    30  conducted, which area is marked by any signs, channeling devices, barri-
    31  ers, pavement markings, or work vehicles, and where  workers  are  phys-
    32  ically present.
    33    2.  A  violation of subdivision one of this section shall constitute a
    34  class B misdemeanor punishable by a fine of not less  than  two  hundred
    35  fifty  dollars  nor  more  than  five hundred dollars, or by a period of
    36  imprisonment not to exceed three months, or by both such fine and impri-
    37  sonment.
    38    § 4. The vehicle and traffic law is amended by adding  a  new  section
    39  1221-b to read as follows:
    40    § 1221-b. Work zone safety and outreach. The governor's traffic safety
    41  committee,  upon  consultation  with the commissioner of transportation,
    42  the superintendent of state police, the commissioner,  the  chairman  of
    43  the  New  York  state thruway authority, local law enforcement agencies,
    44  and representatives for  contractors  and  laborers,  shall  design  and
    45  implement  a  public education and outreach program to increase motorist
    46  awareness of the importance of highway work zone safety, to  reduce  the
    47  number  of  work zone incidents, including speeding, unauthorized intru-
    48  sions into work zones, and any conduct resulting in threats or  injuries
    49  to highway workers, and to increase and promote work zone safety.
    50    § 5. Section 120.05 of the penal law is amended by adding a new subdi-
    51  vision 11-d to read as follows:
    52    11-d.  With  intent  to  cause  physical injury to a terminal cleaner,
    53  cabin cleaner, facilities cleaner, wheelchair assist  employee,  baggage
    54  handler,  skycap,  ticket  agent,  customer  services employee, security
    55  guard, queue management employee, shuttle bus driver,  or  any  employee
    56  whose  duties  require him or her to work on the tarmac, employed by any

        S. 1508--B                         112
 
     1  airport, airport authority or company, public or private, that  performs
     2  such  services  at  an airport, he or she causes physical injury to such
     3  terminal cleaner, cabin cleaner, facilities cleaner,  wheelchair  assist
     4  employee,  baggage  handler,  skycap,  ticket  agent,  customer services
     5  employee, security guard, queue management employee, shuttle bus driver,
     6  or any employee whose duties require him or her to work on  the  tarmac,
     7  while  such  employee  is  performing  an  assigned duty of, or directly
     8  related to, such services at an airport in the state of New York; or
     9    § 6. This act shall take effect immediately.
 
    10                                   PART JJ
 
    11    Section 1. This act shall be known and may be cited as the "Toll Payer
    12  Protection Act".
    13    § 2. Section 2985 of the public authorities law is REPEALED.
    14    § 3. Article 9 of the public authorities law is amended  by  adding  a
    15  new title 11-A to read as follows:
    16                                 TITLE 11-A
    17                              TOLL COLLECTIONS
    18  Section  2985. Owner  liability  for  failure of operator to comply with
    19                   toll collection regulations.
    20          2985-a. Cashless tolling and tolls by mail.
    21    § 2985. Owner liability for failure of operator to  comply  with  toll
    22  collection  regulations.  1. Notwithstanding any other provision of law,
    23  every public authority which  operates  a  toll  highway  bridge  and/or
    24  tunnel  facility  is  hereby authorized and empowered to impose monetary
    25  liability on the owner of a vehicle for failure of an  operator  thereof
    26  to  comply with the toll collection regulations of such public authority
    27  in accordance with the provisions of this section.
    28    2. The owner of a vehicle shall be liable for a civil penalty  imposed
    29  pursuant  to  this section if such vehicle was used or operated with the
    30  permission of the owner,  express  or  implied,  in  violation  of  toll
    31  collection  regulations,  and such violation is evidenced by information
    32  obtained from a photo-monitoring  system,  provided,  however,  that  no
    33  owner  of  a  vehicle  shall be liable for a penalty imposed pursuant to
    34  this section where the operator of such vehicle has been convicted of  a
    35  violation of toll collection regulations for the same incident.
    36    3.  For  purposes  of  this  section,  the term "owner" shall mean any
    37  person, corporation, partnership, firm, agency, association,  lessor  or
    38  organization  who,  at the time of the violation and with respect to the
    39  vehicle identified in the notice of liability: (a) is the beneficial  or
    40  equitable  owner  of  such vehicle; or (b) has title to such vehicle; or
    41  (c) is the registrant or co-registrant of such vehicle which  is  regis-
    42  tered  with  the department of motor vehicles of this state or any other
    43  state, territory, district, province, nation or other  jurisdiction;  or
    44  (d)  subject  to  the  limitations  set forth in subdivision ten of this
    45  section, uses such vehicle in its vehicle renting and/or  leasing  busi-
    46  ness;  and includes (e) a person entitled to the use and possession of a
    47  vehicle subject to a security interest in another person.  For  purposes
    48  of this section, the term "photo-monitoring system" shall mean a vehicle
    49  sensor  installed to work in conjunction with a toll collection facility
    50  which automatically produces one or more photographs, one or more micro-
    51  photographs, a videotape or other recorded images of each vehicle at the
    52  time it is used or operated in violation of toll collection regulations.
    53  For purposes of this section, the  term  "toll  collection  regulations"
    54  shall  mean  those rules and regulations of a public authority providing

        S. 1508--B                         113
 
     1  for and requiring the payment of tolls and/or charges prescribed by such
     2  public authority for the use of bridges, tunnels or highways  under  its
     3  jurisdiction or those rules and regulations of a public authority making
     4  it  unlawful  to  refuse  to  pay or to evade or to attempt to evade the
     5  payment of all or part of any toll and/or charge for the use of bridges,
     6  tunnels or highways under the jurisdiction of such public authority. For
     7  purposes of this section, the term "vehicle" shall mean every device in,
     8  upon or by which a person or property is or may be transported or  drawn
     9  upon a highway, except devices used exclusively upon stationary rails or
    10  tracks.
    11    4.  A  certificate,  sworn  to  or  affirmed by an agent of the public
    12  authority which charged that the  violation  occurred,  or  a  facsimile
    13  thereof,  based  upon inspection of photographs, microphotographs, vide-
    14  otape or other recorded images produced  by  a  photo-monitoring  system
    15  shall  be  prima facie evidence of the facts contained therein and shall
    16  be admissible in any proceeding charging a violation of toll  collection
    17  regulations,  provided that any photographs, microphotographs, videotape
    18  or other recorded images evidencing such a violation shall be  available
    19  for  inspection and admission into evidence in any proceeding to adjudi-
    20  cate the liability for such violation.
    21    5. An owner found liable for a  violation  of  toll  collection  regu-
    22  lations  pursuant to this section shall for a first violation thereof be
    23  liable for a monetary penalty not to exceed fifty dollars or  two  times
    24  the  toll  evaded  whichever  is greater; for a second violation thereof
    25  both within eighteen months be liable for  a  monetary  penalty  not  to
    26  exceed  one  hundred  dollars or five times the toll evaded whichever is
    27  greater; for a third or subsequent violation thereof all within eighteen
    28  months be liable for a monetary penalty not to exceed one hundred  fifty
    29  dollars or ten times the toll evaded whichever is greater.
    30    6.  An imposition of liability pursuant to this section shall be based
    31  upon a preponderance of evidence as submitted. An imposition of  liabil-
    32  ity  pursuant  to  this  section  shall not be deemed a conviction as an
    33  operator and shall not be made  part  of  the  motor  vehicle  operating
    34  record,  furnished  pursuant  to section three hundred fifty-four of the
    35  vehicle and traffic law, of the  person  upon  whom  such  liability  is
    36  imposed  nor shall it be used for insurance purposes in the provision of
    37  motor vehicle insurance coverage.
    38    7. (a) A notice of liability shall be sent by first class mail to each
    39  person alleged to be  liable  as  an  owner  for  a  violation  of  toll
    40  collection regulations. Such notice shall be mailed no later than thirty
    41  days  after  the alleged violation. Personal delivery on the owner shall
    42  not be required. A manual or automatic record of mailing prepared in the
    43  ordinary course of business shall be prima facie evidence of the mailing
    44  of the notice.
    45    (b) A notice of liability shall contain the name and  address  of  the
    46  person  alleged  to  be  liable  as  an  owner  for  a violation of toll
    47  collection regulations pursuant to this section, the registration number
    48  of the vehicle involved in  such  violation,  the  location  where  such
    49  violation  took place, the date and time of such violation and the iden-
    50  tification number of the  photo-monitoring  system  which  recorded  the
    51  violation or other document locator number.
    52    (c)  The  notice  of  liability shall contain information advising the
    53  person charged of the manner and the time in which he  may  contest  the
    54  liability  alleged  in  the  notice. Such notice of liability shall also
    55  contain a warning to advise the persons charged that failure to  contest

        S. 1508--B                         114
 
     1  in  the manner and time provided shall be deemed an admission of liabil-
     2  ity and that a default judgment may be entered thereon.
     3    (d) The notice of liability shall be prepared and mailed by the public
     4  authority having jurisdiction over the toll facility where the violation
     5  of toll collection regulations occurred.
     6    8.  Adjudication  of the liability imposed upon owners by this section
     7  shall be by the entity having jurisdiction over violations of the  rules
     8  and  regulations of the public authority serving the notice of liability
     9  or where authorized by an administrative  tribunal  and  all  violations
    10  shall  be  heard  and determined in the county in which the violation is
    11  alleged to have occurred, or in New York city and upon  the  consent  of
    12  both  parties,  in  any  county within New York city in which the public
    13  authority operates or maintains a facility, and in the  same  manner  as
    14  charges  of  other  regulatory  violations  of  such public authority or
    15  pursuant to the rules and regulations of such administrative tribunal as
    16  the case may be.
    17    9. If an owner receives a notice of liability pursuant to this section
    18  for any time period during which the vehicle was reported to the  police
    19  department  as  having  been  stolen,  it shall be a valid defense to an
    20  allegation of liability for a violation of toll  collection  regulations
    21  that  the vehicle had been reported to the police as stolen prior to the
    22  time the violation occurred and had not been recovered by such time.  If
    23  an owner receives a notice of liability pursuant to this section for any
    24  time period during which the vehicle was stolen, but not as yet reported
    25  to  the  police as having been stolen, it shall be a valid defense to an
    26  allegation of liability for a violation of toll  collection  regulations
    27  pursuant  to this section that the vehicle was reported as stolen within
    28  two hours after the discovery of the theft by the owner.   For  purposes
    29  of asserting the defense provided by this subdivision it shall be suffi-
    30  cient  that  a certified copy of the police report on the stolen vehicle
    31  be sent by first class mail to the court or other entity  having  juris-
    32  diction.
    33    10. An owner who is a lessor of a vehicle to which a notice of liabil-
    34  ity  was  issued pursuant to subdivision seven of this section shall not
    35  be liable for the violation of the toll collection  regulation  provided
    36  that  he  or  she  sends  to  the public authority serving the notice of
    37  liability and to the court or other entity having jurisdiction a copy of
    38  the rental, lease or other such contract document covering such  vehicle
    39  on  the  date  of the violation, with the name and address of the lessee
    40  clearly legible, within thirty days after receiving the original  notice
    41  of  liability.  Failure  to send such information within such thirty day
    42  time period shall render the lessor liable for the penalty prescribed by
    43  this section. Where the lessor complies  with  the  provisions  of  this
    44  subdivision,  the  lessee  of such vehicle on the date of such violation
    45  shall be deemed to be the owner of such vehicle  for  purposes  of  this
    46  section  and  shall  be  subject  to liability for the violation of toll
    47  collection regulations, provided  that  the  public  authority  mails  a
    48  notice  of  liability  to the lessee within ten days after the court, or
    49  other entity having jurisdiction, deems the lessee to be the owner.  For
    50  purposes  of  this  subdivision the term "lessor" shall mean any person,
    51  corporation, firm,  partnership,  agency,  association  or  organization
    52  engaged  in  the  business  of renting or leasing vehicles to any lessee
    53  under a rental agreement, lease or otherwise wherein the said lessee has
    54  the exclusive use of said vehicle for any period of time.  For  purposes
    55  of  this  subdivision,  the  term "lessee" shall mean any person, corpo-
    56  ration, firm, partnership,  agency,  association  or  organization  that

        S. 1508--B                         115
 
     1  rents,  leases  or contracts for the use of one or more vehicles and has
     2  exclusive use thereof for any period of time.
     3    11. Except as provided in subdivision ten of this section, if a person
     4  receives  a  notice  of liability pursuant to this section it shall be a
     5  valid defense to an allegation of liability  for  a  violation  of  toll
     6  collection  regulations  that  the individual who received the notice of
     7  liability pursuant to this section was not the owner of the  vehicle  at
     8  the  time the violation occurred. If the owner liable for a violation of
     9  toll collection regulations pursuant to this section was not the  opera-
    10  tor  of the vehicle at the time of the violation, the owner may maintain
    11  an action for indemnification against the operator.
    12    12. "Electronic  toll  collection  system"  shall  mean  a  system  of
    13  collecting  tolls  or  charges  which  is capable of charging an account
    14  holder the appropriate toll or charge  by  transmission  of  information
    15  from  an  electronic  device  on a motor vehicle to the toll lane, which
    16  information is used to  charge  the  account  the  appropriate  toll  or
    17  charge.  In  adopting  procedures  for  the preparation and mailing of a
    18  notice of liability, the public authority having jurisdiction  over  the
    19  toll  facility  shall  adopt  guidelines  to  ensure adequate and timely
    20  notice to all electronic  toll  collection  system  account  holders  to
    21  inform  them  when  their  accounts  are  delinquent. An owner who is an
    22  account holder under the electronic toll collection system shall not  be
    23  found  liable  for a violation of this section unless such authority has
    24  first sent a notice of  delinquency  to  such  account  holder  and  the
    25  account holder was in fact delinquent at the time of the violation.
    26    13.  Nothing in this section shall be construed to limit the liability
    27  of an operator of a vehicle for any violation of toll  collection  regu-
    28  lations.
    29    14.  Notwithstanding  any  other  provision  of  law, all photographs,
    30  microphotographs, videotape or other recorded images  prepared  pursuant
    31  to  this section shall be for the exclusive use of a public authority in
    32  the discharge of its duties under this section and shall not be open  to
    33  the  public nor be used in any court in any action or proceeding pending
    34  therein unless such action or proceeding relates to the imposition of or
    35  indemnification for liability  pursuant  to  this  section.  The  public
    36  authority  and any contractor or consultant with which it, or any of its
    37  subsidiaries, contracts shall be prohibited from  selling,  distributing
    38  or  making  available  in any way, the names and addresses of electronic
    39  toll collection system account holders or any  user-specific  data  with
    40  respect  to travel patterns to any entity that will use such information
    41  for any commercial purpose provided that the foregoing restriction shall
    42  not be deemed to preclude the exchange of such information  between  any
    43  entities  with  jurisdiction over and/or operating a toll highway bridge
    44  and/or tunnel facility.
    45    § 2985-a. Cashless tolling and tolls by mail.  1.  Definitions.    For
    46  purposes  of  this section, the following terms shall have the following
    47  meanings:
    48    (a) "Cashless tolling facility" shall mean a toll  highway  bridge  or
    49  tunnel  facility that does not provide for the immediate on-site payment
    50  in cash of a toll owed for the use of such facility.
    51    (b) "Owner" shall mean any  person,  corporation,  partnership,  firm,
    52  agency,  association,  lessor or organization who, at the time of incur-
    53  ring an obligation to pay a toll at a  cashless  tolling  facility,  and
    54  with respect to the vehicle identified in the notice of toll due: (i) is
    55  the  beneficial or equitable owner of such vehicle; or (ii) has title to
    56  such vehicle; or (iii) is the registrant or co-registrant of such  vehi-

        S. 1508--B                         116
 
     1  cle  which  is  registered with the department of motor vehicles of this
     2  state or any other state, territory, district, province, nation or other
     3  jurisdiction; or (iv) is subject to the limitations set forth in  subdi-
     4  vision  ten  of  section  twenty-nine hundred eighty-five of this title,
     5  uses such vehicle in its vehicle renting and/or leasing business; or (v)
     6  is a person entitled to the use and possession of a vehicle subject to a
     7  security interest in another person.
     8    (c) "Tolls by mail program" shall mean a program  operated  by  or  on
     9  behalf of a public authority to send a toll bill to an owner whose vehi-
    10  cle  crosses a cashless tolling facility without an "operable electronic
    11  device".
    12    (d) "Electronic  toll  collection  system"  shall  mean  a  system  of
    13  collecting  tolls  or  charges  which  is capable of charging an account
    14  holder the appropriate toll or charge  by  transmission  of  information
    15  from  an  electronic  device  on a motor vehicle to the toll lane, which
    16  information is used to  charge  the  account  the  appropriate  toll  or
    17  charge.
    18    (e)  "Operable electronic device" shall mean an electronic device that
    19  successfully transmits information through an electronic toll collection
    20  system as defined in subdivision twelve of section  twenty-nine  hundred
    21  eighty-five of this title.
    22    (f)  "Toll  bill"  shall mean a notice sent to an owner notifying such
    23  owner that the owner's vehicle has been used or operated at  a  cashless
    24  tolling facility, crossed a vehicle sensor without an operable electron-
    25  ic device and has incurred an obligation to pay a toll.
    26    (g) "Notice of violation" shall mean a notice sent to an owner notify-
    27  ing  such  owner  that a toll incurred at a cashless tolling facility by
    28  the owner has not been paid at the place and  time  and  in  the  manner
    29  established for collection of such toll in the notice of toll due.
    30    (h)  "Cashless  tolling program" shall mean any program operated by or
    31  on behalf of a public authority to identify vehicles that cross  through
    32  a cashless tolling facility without an operable electronic device and to
    33  send a toll bill or notice of violation to the owner of the vehicle.
    34    (i)  "Cashless  tolling monitoring system" shall mean a vehicle sensor
    35  which automatically produces a recorded image of a vehicle  and  license
    36  plate  at the time it is used or operated at a cashless tolling facility
    37  and whose owner has incurred an obligation to pay  a  toll  through  the
    38  cashless tolling program.
    39    (j)  "Penalty"  shall mean any late payment fees, charges, or monetary
    40  penalties imposed by a public authority, exclusive of any toll or  tolls
    41  incurred  at the cashless tolling facility, for failure to timely pay an
    42  obligation to pay a toll.
    43    (k) "Violation" shall mean the failure of the owner to timely  respond
    44  to a toll bill.
    45    2.  Authorization  for  cashless  tolling.  Notwithstanding  any other
    46  provision of the law, every public authority which operates a toll high-
    47  way, bridge and/or tunnel facility and is authorized pursuant to section
    48  two thousand nine hundred eighty-five of this title to  promulgate  toll
    49  collection  regulations  and to impose monetary liability for failure to
    50  comply with such regulations is hereby authorized and empowered to oper-
    51  ate a demonstration program for utilization of cashless tolling  facili-
    52  ties and a tolls by mail program and to impose monetary liability on the
    53  owner  of a vehicle for failure to comply with the toll collection regu-
    54  lations of such public authority in accordance with  the  provisions  of
    55  this  section. Such public authority shall promulgate regulations estab-
    56  lishing a demonstration program for the utilization of cashless  tolling

        S. 1508--B                         117
 
     1  facilities  and  a tolls by mail program that comply with the provisions
     2  of this section. Such regulations may impose monetary liability  on  the
     3  owner  of  a  vehicle  for  failure  to comply with such regulations. No
     4  public  authority  shall own, operate or otherwise facilitate a cashless
     5  tolling facility or cashless tolling program without first  promulgating
     6  regulations pursuant to and in compliance with this section.
     7    3.  Owner  liability  for  toll. The owner of a vehicle shall incur an
     8  obligation to pay a toll when such vehicle crosses  a  cashless  tolling
     9  facility  without  an  operable electronic device and is identified by a
    10  cashless tolling monitoring system.
    11    4. Owner liability for failure to comply. The owner of a vehicle shall
    12  be liable for a civil penalty imposed pursuant to this section  if  such
    13  owner  incurred  an  obligation to pay a toll and fails to timely pay or
    14  respond to such toll in the manner set forth in the notice of  toll  due
    15  and  shall  be liable for penalties in accordance with the penalties set
    16  forth herein. Provided, however, that no owner of  a  vehicle  shall  be
    17  liable for a penalty imposed pursuant to this section where the operator
    18  of  such  vehicle  has  been convicted of a violation of toll collection
    19  regulations for the same incident.
    20    5. Use of technology.  Such demonstration program shall utilize neces-
    21  sary technologies to ensure, to the extent  practicable,  that  recorded
    22  images  produced  by  such cashless tolling monitoring systems shall not
    23  include images that identify the driver, the passengers, or the contents
    24  of a vehicle. However, no notice of toll or notice of  violation  issued
    25  pursuant  to  this  section  shall  be invalid solely because a recorded
    26  image allows for the  identification  of  the  contents  of  a  vehicle,
    27  provided  that  such  public  authority  has made a reasonable effort to
    28  comply with the provisions of this subdivision.
    29    6. Notice of toll and violation.  (a) First notice. The public author-
    30  ity shall send a toll bill by first class mail to any owner  who  incurs
    31  an  obligation to pay a toll within thirty days of the owner's incurring
    32  the obligation to pay the toll. Within thirty days of the mailing of the
    33  notice of toll due the owner shall (i) (1) pay the toll, without liabil-
    34  ity for any penalty; or (2) contest the notice. The toll bill due  shall
    35  include:  (ii)  (1)  the  date, time, location, license plate number and
    36  vehicle registration for each assessed toll; (2) the total amount of the
    37  assessed toll due; (3) the date by which the toll must be paid; (4)  the
    38  authority,  and address and methods of payment for the toll due; (5) the
    39  procedure for  contesting  any  toll;  and  (6)  any  other  information
    40  required  by  law  or  by the authority. If an authority fails to send a
    41  toll bill as set forth in this section, the owner shall  not  be  liable
    42  for payment of the tolls, or any penalty.
    43    (b)  Second notice. If an owner fails to timely respond to a toll bill
    44  due within thirty days of the mailing  of  the  toll  bill,  the  public
    45  authority  shall  send  a second notice by first class mail. Such second
    46  notice of toll due may include a penalty for late payment,  which  shall
    47  not  exceed  five  dollars  and  shall  include  all  of the information
    48  required for a toll bill as set forth in this paragraph.  Within  thirty
    49  days of the mailing of the second notice of toll due the owner shall (i)
    50  pay the toll and penalty or (ii) contest the notice.
    51    (c)  Notice  of  violation.  If  an owner fails to timely respond to a
    52  second notice of toll due, the public  authority  shall  send  by  first
    53  class  mail  a  notice  of  violation within thirty days of the date the
    54  owner was required to respond to the second  notice  of  toll  due.  The
    55  notice  of  violation  may  include (i) (1) the assessed toll; and (2) a
    56  monetary penalty which shall be no greater than twenty-five dollars. The

        S. 1508--B                         118
 
     1  notice of violation shall include: (ii) (1) the  date,  time,  location,
     2  license plate number and vehicle registration for each toll due; (2) the
     3  total  amount  of  all  outstanding tolls and penalties as authorized by
     4  this  section;  (3)  the date by which payment of such sums are due; (4)
     5  the authority, and address and methods of payment for the sums due;  (5)
     6  the  procedure  for  contesting  any  of the aforesaid sums; and (6) any
     7  other information required by law or by the authority. If the  authority
     8  fails to send a timely notice of violation as set forth in this section,
     9  the  owner  shall  not be liable for payment of the alleged tolls or any
    10  penalty. The owner shall have thirty days from the date such  notice  of
    11  violation  was sent to (iii) (1) pay the assessed toll and penalties; or
    12  (2) contest the notice. If an owner fails to respond to  the  notice  of
    13  violation, the owner shall be liable for (iv) (1) the assessed toll; and
    14  (2)  a  monetary  penalty  which  shall  be  no greater than twenty-five
    15  dollars.
    16    (d) Electronic notice. Any notice of toll due required by this section
    17  to be sent by first class mail may instead be sent by  electronic  means
    18  of  communication  upon  the  affirmative consent of the owner in a form
    19  prescribed by the authority. Any notice of violation  required  by  this
    20  section  to  be  sent by first class mail may in addition to first class
    21  mail be sent by electronic means of communication upon  the  affirmative
    22  consent  of the owner in a form prescribed by the authority. A manual or
    23  automatic record of electronic communications prepared in  the  ordinary
    24  course  of business shall be sufficient record of electronic notice. Any
    25  affirmative consent to receive a notice of toll due by electronic  means
    26  shall  be  revocable  by the owner at any time with notice to the public
    27  authority or its agent and shall automatically be deemed revoked if  the
    28  authority  or  its agent is unable to deliver two consecutive notices by
    29  electronic means of communication.
    30    (e) Definitions. (i) The term "lessor" shall mean any  person,  corpo-
    31  ration,  firm, partnership, agency, association, or organization engaged
    32  in the business of renting or leasing vehicles to  any  lessee  under  a
    33  rental  agreement,  lease  or  otherwise wherein the said lessee has the
    34  exclusive use of said vehicle for any period of time.
    35    (ii) The term "lessee" shall mean any person, corporation, firm, part-
    36  nership, agency, association, or  organization  that  rents,  leases  or
    37  contracts  for  the  use  of  one or more vehicles and has exclusive use
    38  thereof for any period of time.
    39    7. Evidence.  An agent of any public authority which  has  assessed  a
    40  toll, may swear to or affirm a certificate or a facsimile thereof, based
    41  upon  inspection of recorded images produced by a cashless tolling moni-
    42  toring system,  which  shall  be  prima  facie  evidence  of  the  facts
    43  contained  therein  and shall be admissible in any proceeding charging a
    44  liability for an obligation to pay a toll or  a  violation  pursuant  to
    45  this  section, provided that any recorded images evidencing such liabil-
    46  ity shall be available for inspection and admission into evidence in any
    47  proceeding to adjudicate such liability.
    48    8. Imposing liability.  Any liability imposed pursuant to this section
    49  shall be based upon  a  preponderance  of  evidence  as  submitted.  Any
    50  liability  imposed  pursuant  to  this  section  shall  not  be deemed a
    51  conviction as an operator and shall not be made part of the motor  vehi-
    52  cle  operating  record,  furnished  pursuant  to  section  three hundred
    53  fifty-four of the vehicle and traffic law, of the person upon whom  such
    54  liability  is imposed nor shall it be used for insurance purposes in the
    55  provision of motor vehicle insurance coverage.

        S. 1508--B                         119
 
     1    9. Payment plan for penalties.  Every public authority which  operates
     2  a cashless tolling facility and a tolls by mail program shall promulgate
     3  rules and regulations that establish an installment payment plan for the
     4  payment of any toll and penalty incurred at a cashless tolling facility.
     5  Information related to such plan shall be included in any notice of toll
     6  due  and any notice of violation and shall be displayed conspicuously on
     7  the authority's website. Each owner, at his or her election, may partic-
     8  ipate in such plan. The public authority shall not charge any additional
     9  fees or penalties for enrollment into a payment plan.
    10    10. Procedure to contest. Every  public  authority  which  operates  a
    11  cashless  tolling  facility and a tolls by mail program shall promulgate
    12  regulations establishing a procedure by which a  person  alleged  to  be
    13  liable  for  the  payment of a toll or a violation may: (a) contest such
    14  alleged liability; (b) submit the contest to a hearing; and (c) have the
    15  right to appeal. Every toll bill, notice  of  toll  due  and  notice  of
    16  violation  shall on its face advise the owner of the manner and the time
    17  in which to contest the assessed toll  and/or  any  violation  and  that
    18  failure  to  contest  in the manner and time provided shall be deemed an
    19  admission of liability and that a default judgment may be entered there-
    20  on.
    21    11. Adjudication of liability. Adjudication of  an  owner's  liability
    22  shall  be  by the municipal entity having jurisdiction over the cashless
    23  tolling facility or, where authorized, by an administrative tribunal and
    24  all such liability determinations shall be heard and determined  either:
    25  (a)  in  the  county  in  which the obligation to pay a toll through the
    26  cashless tolling program was alleged to occur; or (b) where the toll  is
    27  alleged  to  have been incurred in New York city and upon the consent of
    28  both parties, in any county within New York city  in  which  the  public
    29  authority operates or maintains a cashless tolling facility.  Such adju-
    30  dications shall be heard and determined in the same manner as charges of
    31  other  regulatory violations of such public authority or pursuant to the
    32  rules and regulations of such administrative tribunal, as the  case  may
    33  be.
    34    12.  Defenses. It shall be a valid defense to an allegation of liabil-
    35  ity for a toll and/or violation that:
    36    (a) the vehicle was not used or operated in violation of this title or
    37  the regulations promulgated hereunder;
    38    (b) the vehicle was used or operated without  the  permission  of  the
    39  owner, express or implied;
    40    (c) the vehicle had been reported to the police as stolen prior to the
    41  time the obligation was incurred and had not been recovered by such time
    42  or the vehicle was reported as stolen within two hours after the discov-
    43  ery  of  the  theft  by  the  owner.  For the purposes of asserting this
    44  defense, it shall be sufficient that a  certified  copy  of  the  police
    45  report  on  the  stolen  vehicle is submitted by first class mail to the
    46  court or other entity having jurisdiction;
    47    (d) the owner who is a lessor of the vehicle who submits to the public
    48  authority a copy of the rental lease or  other  such  contract  document
    49  covering the vehicle on the date and time the toll was incurred, and the
    50  name and address of the lessee clearly legible, within thirty days after
    51  receiving the original toll bill or notice of violation and to the court
    52  or  other  entity  having jurisdiction. Failure to send such information
    53  within the thirty day time period shall render the lessor liable for the
    54  penalty prescribed by this section.  Where the lessor complies with  the
    55  provisions  of this section, the lessee of such vehicle on the date such
    56  obligation to pay the toll was incurred shall be deemed to be the  owner

        S. 1508--B                         120
 
     1  of  the  vehicle  for  purposes  of this section and shall be subject to
     2  liability pursuant to this section, provided that the authority mails  a
     3  notice  of  toll  due  to  the lessee within ten days after the court or
     4  other entity having jurisdiction, deems the lessee to be the owner;
     5    (e)  except  as  provided in subdivision thirteen of this section, the
     6  person was not the owner of the vehicle at the time  the  obligation  to
     7  pay the toll occurred.  If the owner liable pursuant to this section was
     8  not the operator of the vehicle at the time of the obligation to pay the
     9  toll  was incurred, the owner may maintain an action for indemnification
    10  against the operator.
    11    13. This section shall not apply to the payment of tolls by  means  of
    12  an  electronic  toll  device that transmits information through an elec-
    13  tronic toll collection  system  as  defined  in  subdivision  twelve  of
    14  section twenty-nine hundred eighty-five of this title.
    15    14. Notwithstanding any other provision of law, all images, videos and
    16  other  recorded  images  collected  by  the  authority  pursuant to this
    17  section shall be  for  the  exclusive  use  of  such  authority  in  the
    18  discharge  of its duties under this section and shall not be open to the
    19  public nor be used in any court in  any  action  or  proceeding  pending
    20  therein unless such action or proceeding relates to the imposition of or
    21  indemnification for liability pursuant to this section.
    22    15.  The public authority, and any contractor or consultant with which
    23  it, or any of its subsidiaries, contracts shall be prohibited from sell-
    24  ing, distributing  or  making  available  in  any  way,  the  names  and
    25  addresses  of  electronic  toll collection system account holders or any
    26  user-specific data with respect to travel patterns to  any  entity  that
    27  will  use  such information for any commercial purpose provided that the
    28  foregoing restriction shall not be deemed to preclude  the  exchange  of
    29  such  information  between  any  entities  with jurisdiction over and/or
    30  operating a toll highway bridge and/or tunnel facility.
    31    16. Any toll that will be charged for the usage of any bridge, tunnel,
    32  road, or any  other  entity  by  a  passenger  motor  vehicle  shall  be
    33  displayed  conspicuously and prominently on signage of a reasonable size
    34  in a manner reasonably calculated to provide ample and adequate  notice.
    35  The  violation  fees  for  failure  to pay toll bills shall be similarly
    36  provided.
    37    17. (a) On or after the effective date  of  this  section,  no  public
    38  authority  which  operates  a  cashless  tolling  facility shall sell or
    39  transfer any debt owed to  the  public  authority  by  an  owner  for  a
    40  violation  of  toll  collection  regulations to a debt collection agency
    41  unless one year has passed from the date the owner was found liable  for
    42  the  violation of toll collection regulations associated with such debt,
    43  or the owner has a total debt owed to the public authority of one  thou-
    44  sand dollars or more. The authority shall obtain a default judgment in a
    45  court  or  administrative  tribunal  with jurisdiction over the assessed
    46  toll before selling or transferring any debt to a debt collection  agen-
    47  cy.
    48    (b) A notice shall be sent by first class mail advising the owner that
    49  the  above  debt shall be sold or transferred by the authority to a debt
    50  collection agency on a specified date no less than thirty days prior  to
    51  such sale or transfer.
    52    (c)  For  purposes of this subdivision, "debt collection agency" shall
    53  mean a person, firm or corporation engaged in  business,  the  principal
    54  purpose  of  which  is  to regularly collect or attempt to collect debts
    55  owed or due or asserted to be owed or due  to  another  and  shall  also
    56  include a buyer of delinquent debt who seeks to collect such debt either

        S. 1508--B                         121
 
     1  directly or through the services of another by, including but not limit-
     2  ed  to, initiating or using legal processes or other means to collect or
     3  attempt to collect such debt. Any entity or subsidiary which maintains a
     4  contract with the authority for administering a cashless tolling program
     5  shall  be  prohibited  from  serving  as  a  debt  collection agency for
     6  purposes of this section.
     7    18. Notwithstanding the provisions of any other law,  order,  rule  or
     8  regulation  to  the contrary, no registration of any motor vehicle shall
     9  be suspended resulting from an obligation to pay a toll  at  a  cashless
    10  tolling  facility  as  described in this section and the commissioner of
    11  motor vehicles shall not suspend the registration  of  a  motor  vehicle
    12  resulting from an obligation to pay a toll at a cashless tolling facili-
    13  ty as described in this section.
    14    19.  Every public authority which operates a cashless tolling facility
    15  shall undertake a public awareness campaign regarding  the  use  of  and
    16  process  involved  with the payment of tolls at cashless tolling facili-
    17  ties. Each public authority shall provide  for  sufficient  methods  for
    18  owners to obtain an electronic device for the electronic toll collection
    19  system,  including making such devices available at all rest areas owned
    20  or operated by each authority. Any  public  authority  that  operates  a
    21  cashless  tolling  facility shall maintain a website and toll-free phone
    22  number for any person to obtain current information on  any  outstanding
    23  tolls and shall implement a system to notify those owners who so request
    24  by electronic mail and/or text message about tolls as they are incurred.
    25  Such  website  and  phone  number  shall  be printed on any toll bill or
    26  notice of violation. Such website shall additionally maintain photos  or
    27  video  of  each instance in which an owner has incurred an obligation to
    28  pay a toll when such vehicle crosses a cashless tolling facility without
    29  an operable electronic device for purposes of viewing by the owner.
    30    20. Any public authority which adopts a demonstration program pursuant
    31  to subdivision two of this section shall submit an annual report on  the
    32  cashless tolling program to the governor, the temporary president of the
    33  senate  and  the  speaker  of the assembly on or before the first day of
    34  June next succeeding the effective date of this section and on the  same
    35  date in each succeeding year in which the demonstration program is oper-
    36  able.  Such report shall include, but not be limited to:
    37    (a)  the locations where vehicle sensors for cashless tolling monitor-
    38  ing systems were used;
    39    (b) the aggregate number of tolls paid at the locations where cashless
    40  tolling facilities were used, including both through the use of an elec-
    41  tronic device that successfully transmits information through  an  elec-
    42  tronic  toll  collection  system  as  defined  in  subdivision twelve of
    43  section twenty-nine hundred eighty-five of this title  and  through  the
    44  cashless tolling program;
    45    (c)  the  number  of  owners that paid their toll through the cashless
    46  tolling program;
    47    (d) the number of owners that paid their  toll  upon  receipt  of  the
    48  first notice of toll due;
    49    (e)  the number of owners that paid their toll upon receipt the second
    50  notice of toll due;
    51    (f) the number of owners that were charged a five dollar fee for  late
    52  payment  and  the aggregate amount of fees for late payment collected by
    53  the authority;
    54    (g) the number of owners that were charged a penalty,  the  amount  of
    55  the  penalty  charged  to  owners  and  the aggregate amount of monetary
    56  penalties collected by the authority;

        S. 1508--B                         122
 
     1    (h) the number of owners that disputed the notice of toll due and  the
     2  number  of  owners that successfully disputed the notice of toll due and
     3  an itemized breakdown of the reasons for successfully disputed tolls;
     4    (i) the number of owners that disputed the notice of violation and the
     5  number of owners that successfully disputed the notice of violation;
     6    (j)  the  number  of  owners  that paid their toll upon receipt of the
     7  notice of violation;
     8    (k) the aggregate amount of penalties charged owners;
     9    (l) a copy of all  regulations  the  reporting  authority  promulgated
    10  pursuant to this title;
    11    (m)  the number of tolls adjudicated and results of such adjudications
    12  including breakdowns of dispositions made for  tolls  recorded  by  such
    13  systems;
    14    (n)  the  total amount of revenue realized by such authority from such
    15  adjudications;
    16    (o) expenses incurred by such authority in connection with  the  cash-
    17  less tolling program; and
    18    (p) the quality of the adjudication process and its results.
    19    §  4. a. Within 90 days of the effective date of this act, the Tribor-
    20  ough Bridge and Tunnel Authority, the public authority created  pursuant
    21  to  chapter  870 of the laws of 1939, shall implement an amnesty program
    22  for any and all  persons  who,  with  respect  to  any  toll  obligation
    23  incurred  on  or  after  November 1, 2016 at a cashless tolling facility
    24  operated by the authority, (1) (i) owes tolls, fines,  fees,  or  penal-
    25  ties; (ii) have been referred to a debt collection agency; or (iii) have
    26  had  their vehicle registration suspended. Such amnesty program shall be
    27  at least eight weeks in duration, and shall provide that upon an owner's
    28  payment or contesting the outstanding toll balance  during  the  amnesty
    29  program  period  (2)  (i) the authority shall waive all fees, fines, and
    30  penalties associated with the outstanding toll  balance;  and  (ii)  the
    31  authority  shall advise the commissioner of motor vehicles, in such form
    32  and manner that such  commissioner  shall  have  prescribed,  that  such
    33  person has responded and any registration suspension shall be rescinded.
    34    b.  The authority shall undertake a public awareness campaign for such
    35  amnesty program, maintain a public website  for  any  person  to  obtain
    36  information  on  any  outstanding  tolls  and  no later than thirty days
    37  preceding the commencement of the amnesty period, notify by first  class
    38  mail all persons with outstanding toll balances of their eligibility for
    39  the  amnesty program. The authority shall provide for sufficient methods
    40  to pay the outstanding toll balances, including but not limited  to,  by
    41  phone, by mail, or through the internet.
    42    §  5.  Toll advisory task force. 1. The commissioner of transportation
    43  and the chairman of the New York state thruway authority shall convene a
    44  toll advisory task force to review the New York state  thruway  authori-
    45  ty's  current  toll  rates, commuter discount options, resident discount
    46  programs and commercial vehicle rates  in  order  to  ensure  affordable
    47  travel on the toll roads and bridges within the state.
    48    2.  Such task force shall consist of eight members. Such members shall
    49  be as follows: two  members  appointed  by  the  governor;  two  members
    50  appointed  by  the  temporary  president  of  the  senate;  two  members
    51  appointed by the speaker of the assembly; the commissioner of  transpor-
    52  tation,  or  his or her designee; and the chairman of the New York state
    53  thruway authority, or his or her designee.
    54    3. The task force shall be co-chaired by the commissioner of transpor-
    55  tation and the chairman of the New  York  state  thruway  authority,  or
    56  their designees.

        S. 1508--B                         123
 
     1    4.  The goals of the task force shall include, but are not limited to,
     2  the study and evaluation of the New York state thruway authority's:
     3    (a) current toll rates;
     4    (b) commuter discount programs;
     5    (c) resident discount programs;
     6    (d) rates issued for commercial vehicles;
     7    (e) any other special toll discount plans; and
     8    (f)  potential  toll  increases as related to funding for the Governor
     9  Mario M. Cuomo bridge.
    10    5. The task force shall hold a minimum of  two  public  hearings,  the
    11  first  of  which shall be held no later than June 1, 2019.  At least one
    12  public hearing shall be held in the county of Rockland  and  one  public
    13  hearing  shall  be held in the county of Westchester.  During the public
    14  hearings,  the  task  force  shall  hear  the  testimony  of   voluntary
    15  witnesses,  shall  provide  an  opportunity  for public comment, and may
    16  request the production of any documents the task force deems  reasonably
    17  necessary to carry out its responsibilities.
    18    6. The task force shall make a report to the governor and the legisla-
    19  ture  of  its  findings,  conclusions  and  recommendations on or before
    20  December 31, 2020.
    21    § 6. This act shall take effect on the one hundred twentieth day after
    22  it shall have become a law and shall expire 5 years after such effective
    23  date when upon such date the provisions of  this  act  shall  be  deemed
    24  repealed.  Effective immediately, any authority or agency shall take any
    25  actions necessary to adopt, amend or  repeal  regulations  in  order  to
    26  implement the provisions of this act by such effective date.
 
    27                                   PART KK
 
    28                            Intentionally Omitted
 
    29                                   PART LL
 
    30                            Intentionally Omitted
 
    31                                   PART MM
 
    32    Section  1.  The  state finance law is amended by adding a new section
    33  99-ff to read as follows:
    34    § 99-ff. Parks retail stores fund. 1. Notwithstanding sections  eight,
    35  eight-a  and  seventy  of  this  chapter and any other provision of law,
    36  rule, regulation or practice to the contrary,  there  is  hereby  estab-
    37  lished in the joint custody of the state comptroller and the commission-
    38  er of tax and finance a parks retail stores fund, which shall be classi-
    39  fied  by  the  state  comptroller as an enterprise fund, and which shall
    40  consist of all moneys received from  private  entities  and  individuals
    41  from  retail  operations  at  state  parks,  recreational facilities and
    42  historic sites operated by the office of parks, recreation and  historic
    43  preservation.
    44    2.  Moneys within the parks retail stores fund shall be made available
    45  to the commissioner of parks, recreation and historic  preservation  for
    46  services  and expenses relating to the operation of retail stores and in
    47  support of the sale of retail goods at state parks, recreational facili-
    48  ties and historic sites.
    49    § 2. The state finance law is amended by adding a new section 99-gg to
    50  read as follows:

        S. 1508--B                         124
 
     1    § 99-gg. Golf fund.  1. Notwithstanding sections  eight,  eight-a  and
     2  seventy of this chapter and any other provision of law, rule, regulation
     3  or  practice  to  the contrary, there is hereby established in the joint
     4  custody of the state comptroller and the commissioner of tax and finance
     5  a  golf  fund,  which shall be classified by the state comptroller as an
     6  enterprise fund, and which shall consist of all  moneys  collected  from
     7  private  entities and individuals for the use of state-owned golf cours-
     8  es, any other miscellaneous fees associated with the use  of  such  golf
     9  courses,  and  sale  of  retail  goods  and services at state owned golf
    10  courses.
    11    2. Moneys within the golf fund shall be made available to the  commis-
    12  sioner  of  parks, recreation and historic preservation for services and
    13  expenses of the office of parks, recreation  and  historic  preservation
    14  relating  to  the  direct  maintenance and operation of state owned golf
    15  courses, and in support of the sale of  retail  goods  and  services  at
    16  state owned golf courses.
    17    §  3.  This  act  shall take effect immediately and shall be deemed to
    18  have been in full force and effect on and after April 1, 2019.
 
    19                                   PART NN
 
    20    Section 1. Subdivision 7 of section 2611  of  the  public  authorities
    21  law,  as  amended  by  section  3 of part C of chapter 60 of the laws of
    22  2012, is amended to read as follows:
    23    7. To enter into contracts, leases and subleases and  to  execute  all
    24  instruments  necessary  or convenient for the conduct of authority busi-
    25  ness, including agreements with the park district and any  state  agency
    26  which  administers, owns or supervises any olympic facility or Belleayre
    27  Mountain ski center, as provided in sections twenty-six  hundred  twelve
    28  and  twenty-six  hundred fourteen of this title, and including contracts
    29  or other agreements to plan, prepare  for  and  host  olympic  or  other
    30  national or international games or events where such contracts or agree-
    31  ments  would  obligate  the authority to defend, indemnify and/or insure
    32  third parties in connection with, arising out of, or  relating  to  such
    33  games  or  events,  such  authority  to  be limited by the amount of any
    34  lawful appropriation or other funding such as a performance bond surety,
    35  or other collateral instrument for that purpose.   With respect  to  the
    36  two  thousand  twenty-three  world  university games, the amount of such
    37  appropriation shall be no more than sixteen million dollars;
    38    § 2. This act shall take effect immediately.
 
    39                                   PART OO
 
    40                            Intentionally Omitted
 
    41                                   PART PP
 
    42                            Intentionally Omitted
 
    43                                   PART QQ
 
    44                            Intentionally Omitted
 
    45                                   PART RR

        S. 1508--B                         125
 
     1    Section 1. Subdivision 6 of section 1209  of  the  public  authorities
     2  law, as amended by chapter 30 of the laws of 2015, is amended to read as
     3  follows:
     4    6.  The  provisions  of  subdivisions one, two, three and four of this
     5  section shall not be applicable to  any  procurement  by  the  authority
     6  commenced  during the period from the effective date of this subdivision
     7  until December thirty-first, nineteen hundred ninety-one or  during  the
     8  period from December sixteenth, nineteen hundred ninety-three until June
     9  thirtieth,  two  thousand [nineteen] twenty-three; and the provisions of
    10  subdivisions seven, eight, nine, ten, eleven,  twelve  and  thirteen  of
    11  this section shall only apply to procurements by the authority commenced
    12  during such periods. The provisions of such subdivisions one, two, three
    13  and  four  shall apply to procurements by the authority commenced during
    14  the period from December thirty-first, nineteen hundred ninety-one until
    15  December sixteenth, nineteen hundred ninety-three, and  to  procurements
    16  by  the authority commenced on and after July first, two thousand [nine-
    17  teen] twenty-three. Notwithstanding the  foregoing,  the  provisions  of
    18  such  subdivisions one, two, three and four shall apply to (i) the award
    19  of any contract of the authority if the bid documents for such  contract
    20  so  provide  and  such bid documents are issued within sixty days of the
    21  effective date of this subdivision or  within  sixty  days  of  December
    22  sixteenth,  nineteen  hundred  ninety-three, or (ii) for a period of one
    23  hundred eighty days after the effective date of this subdivision, or for
    24  a period of one hundred eighty days after December  sixteenth,  nineteen
    25  hundred  ninety-three, the award of any contract for which an invitation
    26  to bid, solicitation, request for proposal, or any similar document  has
    27  been  issued by the authority prior to the effective date of this subdi-
    28  vision or during the period from January first, nineteen  hundred  nine-
    29  ty-two until December fifteenth, nineteen hundred ninety-three.
    30    § 2. Subdivision 1 of section 1265-a of the public authorities law, as
    31  amended  by  chapter  30  of  the  laws  of  2015, is amended to read as
    32  follows:
    33    1. The provisions of this section shall only apply to procurements  by
    34  the  authority  commenced  during  the period from April first, nineteen
    35  hundred eighty-seven until December thirty-first, nineteen hundred nine-
    36  ty-one, and during the period from December sixteenth, nineteen  hundred
    37  ninety-three until June thirtieth, two thousand [nineteen] twenty-three;
    38  provided,  however,  that the provisions of this section shall not apply
    39  to (i) the award of any contract of the authority if the  bid  documents
    40  for  such  contract  so provide and such bid documents are issued within
    41  sixty days of the effective date of this section or within sixty days of
    42  December sixteenth, nineteen hundred ninety-three, or (ii) for a  period
    43  of  one  hundred eighty days after the effective date of this section or
    44  for a period of one hundred eighty days after December sixteenth,  nine-
    45  teen  hundred ninety-three, the award of any contract for which an invi-
    46  tation to bid, solicitation, request for proposal, or any similar  docu-
    47  ment  has  been  issued  by the authority prior to the effective date of
    48  this section or during the period from January first,  nineteen  hundred
    49  ninety-two until December sixteenth, nineteen hundred ninety-three.
    50    § 3. Intentionally omitted.
    51    § 4. This act shall take effect immediately.
 
    52                                   PART SS

        S. 1508--B                         126
 
     1    Section  1. Section 1 of chapter 174 of the laws of 1968, constituting
     2  the New York state urban development  corporation  act,  is  amended  by
     3  adding a new section 53 to read as follows:
     4    §  53.  Reporting. (1) Definitions.  For the purposes of this section,
     5  the following terms shall have the following meanings:
     6    (a) "Economic development benefits" shall mean:
     7    (i) the available state resources including, but not limited to, state
     8  grants, loans, loan guarantees, loan interest subsidies,  and/or  subsi-
     9  dies allocated through the corporation; and
    10    (ii)  tax credits, tax exemptions or reduced tax rates and/or benefits
    11  which are applied for and preapproved or certified by a state agency;
    12    (b) "Qualified participant" shall mean an individual, business, or any
    13  other entity that has applied for and received approval  for  and/or  is
    14  the  beneficiary  of,  any economic development benefits of ten thousand
    15  dollars or more under any individual  economic  development  program  or
    16  project  overseen by the New York state urban development corporation or
    17  economic development benefits that  were  originally  allocated  to  the
    18  corporation or that flow through the corporation;
    19    (c)  "State  agency"  shall mean any New York state department, board,
    20  bureau, division, commission, committee, public authority, public corpo-
    21  ration, council, office or other state governmental entity performing  a
    22  governmental  or proprietary function for the state, as well as entities
    23  created by any of the preceding or that  are  governed  by  a  board  of
    24  directors  or  similar  body a majority of which is designated by one or
    25  more state officials;
    26    (d) "Full-time job" shall  mean  a  job  in  which  an  individual  is
    27  employed  by  a  qualified  participant for at least thirty-five hours a
    28  week;
    29    (e) "Full-time equivalent" shall mean a unit of measure which is equal
    30  to one filled, full-time, annual-salaried position;
    31    (f) "Part-time job" shall  mean  a  job  in  which  an  individual  is
    32  employed  by  a  qualified participant for less than thirty-five hours a
    33  week; and
    34    (g) "Contract job" shall mean a job in which an  individual  is  hired
    35  for a season or for a limited period of time.
    36    (2)  Searchable  state subsidy and economic development benefits data-
    37  base. Notwithstanding any laws to  the  contrary,  the  corporation,  in
    38  cooperation with the department of economic development, shall create or
    39  modify  an  existing  searchable  database, which includes the following
    40  features and functionality:
    41    (a) the ability to search the database by each of the reported  infor-
    42  mation  to the corporation and for the public viewer to show a qualified
    43  participant which is a recipient of an economic development benefit  and
    44  view a list of all types and amounts of benefits received by a qualified
    45  participant;
    46    (b) for the prior state fiscal year, the following information:
    47    (i) a qualified participant's name and location;
    48    (ii)  the  time  span  over which a qualified participant is to or has
    49  received economic development benefits;
    50    (iii) the type of such economic development  benefits  provided  to  a
    51  qualified  participant,  including  the  name of the program or programs
    52  through which economic development benefits are provided;
    53    (iv) for any economic development benefits provided for job  retention
    54  and  creation, the total number of employees at all sites covered by the
    55  project utilizing such economic development benefits at the time of  the
    56  agreement  including  the number of permanent full-time jobs, the number

        S. 1508--B                         127
 
     1  of permanent part-time jobs, the number of  full-time  equivalents,  and
     2  the number of contract jobs;
     3    (v) the number of jobs that a qualified participant receiving economic
     4  development  benefits  is  contractually  obligated to retain and create
     5  over the life of the project utilizing such economic  development  bene-
     6  fits,  except that such information shall be reported on an annual basis
     7  for agreements containing annual job retention or creation requirements,
     8  and for each reporting  year,  the  base  employment  level  the  entity
     9  receiving  economic  development benefits agrees to retain over the life
    10  of the project utilizing such economic  development  benefits,  any  job
    11  creation  scheduled  to  take place as a result of the project utilizing
    12  such  economic  development  benefits  and  where  applicable,  any  job
    13  creation targets for the current reporting year;
    14    (vi)  the amount of economic development benefits received by a quali-
    15  fied participant during the year covered by the report,  the  amount  of
    16  economic  development benefits received by a qualified participant since
    17  the beginning of the project  period,  and  the  present  value  of  the
    18  further  economic development benefits committed to by the state but not
    19  yet received by a qualified participant for the duration of the project;
    20    (vii) for any economic development benefits provided for job retention
    21  and creation, the total actual number of employees at all sites  covered
    22  by  the  project  utilizing  such  economic development benefits for the
    23  current reporting year, including  the  number  of  permanent  full-time
    24  jobs,  the  number  of permanent part-time jobs, the number of full-time
    25  equivalents, and the number of contract jobs;
    26    (viii) a  statement  of  compliance  indicating  whether,  during  the
    27  current  reporting  year,  the corporation and/or any other state agency
    28  has reduced, cancelled or recaptured economic development benefits  from
    29  such  qualified  participant,  and,  if  so,  the  total  amount  of the
    30  reduction, cancellation or recapture, and any penalty assessed  and  the
    31  reasons therefor;
    32    (c)  the  ability to digitally select defined individual fields corre-
    33  sponding to any of the reported information from qualified  participants
    34  to create unique database views;
    35    (d)  the ability to download the database in its entirety, or in part,
    36  in a common machine readable format;
    37    (e) the ability to view and download contracts or award agreements for
    38  each economic development benefit received by the qualified  participant
    39  to  the  extent  such contracts or award agreements are available to the
    40  public pursuant to article six of the public officers law;
    41    (f) a definition or description of terms for fields in  the  database;
    42  and
    43    (g) a summary of each economic development benefit available to quali-
    44  fied participants.
    45    (3)  Certification  regarding reporting. The corporation shall certify
    46  to the New York state authorities budget office, the corporation's board
    47  of directors and post to its website that it has fulfilled  all  of  its
    48  reporting requirements as required by law, rules, regulations, or execu-
    49  tive  orders.  The  corporation shall provide a list of all reports, the
    50  due dates of such reports, and certify to the New York state authorities
    51  budget office and the corporation's board of directors, that each report
    52  has been submitted to the individual, office, or entity as prescribed by
    53  applicable laws, rules, and regulations.
    54    (4) Database reporting. The corporation may request the specific  data
    55  from qualified participants, which is necessary and required in develop-
    56  ing,  updating  and  maintaining the searchable database. Such qualified

        S. 1508--B                         128
 
     1  participants shall provide any such information requested by the  corpo-
     2  ration.  Beginning  on  June first, two thousand twenty, the corporation
     3  shall make all reported data on such database available to the public on
     4  its  website.  Such  database shall be updated on a quarterly basis with
     5  qualified participants added to any programs and any new  data  provided
     6  by existing qualified participants required reporting.
     7    (5)  Reporting. The corporation's senior staff shall report on a quar-
     8  terly basis, to the corporation's  board  of  directors  with  a  status
     9  update on the development and maintenance of the searchable database.
    10    §  2. Section 100 of the economic development law is amended by adding
    11  a new subdivision 18-j to read as follows:
    12    18-j. to assist the  urban  development  corporation  to  establish  a
    13  searchable  database pursuant to section fifty-three of the urban devel-
    14  opment corporation act.
    15    § 3. This act shall take effect on the ninetieth day  after  it  shall
    16  have  become  a  law.    Effective  immediately, the addition, amendment
    17  and/or repeal of any rule or regulation necessary for the implementation
    18  of this act on  its  effective  date  are  authorized  to  be  made  and
    19  completed on or before such effective date.
 
    20                                   PART TT
 
    21    Section  1. Paragraph (a) of subdivision 2 of section 112 of the state
    22  finance law, as amended by section 18 of part L of  chapter  55  of  the
    23  laws of 2012, is amended to read as follows:
    24    (a)  Before  any contract made for or by any state agency, department,
    25  board, officer, commission, or institution, except the office of general
    26  services, shall be executed or become effective, whenever such  contract
    27  exceeds  fifty  thousand  dollars in amount and before any contract made
    28  for or by the office of general services shall  be  executed  or  become
    29  effective,  whenever  such contract exceeds eighty-five thousand dollars
    30  in amount, it shall first be approved by the comptroller  and  filed  in
    31  his  or  her  office,  [with the exception of contracts established as a
    32  centralized contract through the office of general services and purchase
    33  orders or other procurement transactions issued under  such  centralized
    34  contracts.  The]  provided,  however,  that the comptroller shall make a
    35  final written determination with respect to approval  of  such  contract
    36  within  ninety  days  of  the  submission of such contract to his or her
    37  office unless the comptroller shall notify, in writing, the state  agen-
    38  cy, department, board, officer, commission, or institution, prior to the
    39  expiration of the ninety day period, and for good cause, of the need for
    40  an  extension  of  not more than fifteen days, or a reasonable period of
    41  time agreed to by such state agency, department, board, officer, commis-
    42  sion, or institution and provided, further, that such  written  determi-
    43  nation  or extension shall be made part of the procurement record pursu-
    44  ant to paragraph f of subdivision one of section one hundred sixty-three
    45  of this chapter.
    46    § 2. Subdivisions 5 and 6 of section 355  of  the  education  law,  as
    47  amended by section 1 of subpart B of part D of chapter 58 of the laws of
    48  2011, paragraph a of subdivision 5 as amended by section 31 of part L of
    49  chapter 55 of the laws of 2012, are amended to read as follows:
    50    5.  Notwithstanding  the  provisions of subdivision two of section one
    51  hundred twelve and sections one hundred fifteen, one hundred  sixty-one,
    52  and  one hundred sixty-three of the state finance law and sections three
    53  and six of the New York state printing and public documents law  or  any

        S. 1508--B                         129
 
     1  other  law to the contrary, the state university trustees are authorized
     2  and empowered to:
     3    a.   (i)   purchase   materials,  proprietary  electronic  information
     4  resources including but  not  limited  to  academic,  professional,  and
     5  industry  journals,  reference  handbooks and manuals, research tracking
     6  tools, indexes and abstracts, equipment and supplies, including computer
     7  equipment and motor vehicles, where the amount  for  a  single  purchase
     8  does  not  exceed  two  hundred  fifty  thousand  dollars,  (ii) execute
     9  contracts  for  services  and  construction  [and   construction-related
    10  services]  contracts  to an amount not exceeding two hundred fifty thou-
    11  sand dollars, and (iii) contract for printing to an amount not exceeding
    12  two hundred fifty thousand dollars, without prior approval by any  other
    13  state  officer or agency, but subject to rules and regulations or guide-
    14  lines of the state  comptroller  not  otherwise  inconsistent  with  the
    15  provisions of this section and in accordance with guidelines promulgated
    16  by  the  state  university board of trustees after consultation with the
    17  state comptroller. Provided, however, that the dollar limits  set  forth
    18  in  this paragraph shall be one hundred twenty-five thousand dollars for
    19  single or sole source procurements or where there is a formal protest of
    20  the contract award. In addition, where the state comptroller  determines
    21  adequate  internal  controls  are  either  not in place or are not being
    22  utilized effectively, and such failure has resulted in procurement prac-
    23  tices that are inconsistent with the purposes underlying the competitive
    24  bidding statutes of the state, including those set forth in  subdivision
    25  two  of  section  one  hundred sixty-three of the state finance law, the
    26  comptroller may reduce the dollar limits set forth in this paragraph  to
    27  an  amount not less than fifty thousand dollars or, for state university
    28  health care facilities, seventy-five thousand dollars.
    29    (a-1) The trustees, after consultation with the commissioner of gener-
    30  al services, are authorized to annually negotiate with the  state  comp-
    31  troller  increases in the dollar limits set forth in paragraph a of this
    32  subdivision and the exemption of any articles, categories of articles or
    33  commodities from these limits.
    34    (a-2) Guidelines promulgated by the state university board of trustees
    35  shall, to the extent practicable, require that competitive proposals  be
    36  solicited  for  purchases, and shall include requirements that purchases
    37  and contracts authorized under this section be at the  lowest  available
    38  price,  including  consideration of prices available through other state
    39  agencies, consistent with quality requirements, and as will best promote
    40  the public interest. Such  purchases  may  be  made  directly  from  any
    41  contractor pursuant to any contract for commodities let by the office of
    42  general services or any other state agency;
    43    [a-1. execute contracts for services to an amount not exceeding twenty
    44  thousand  dollars  without  prior approval by any other state officer or
    45  agency, but subject to rules and regulations of  the  state  comptroller
    46  not  otherwise  inconsistent  with the provisions of this section and in
    47  accordance with the guidelines promulgated by the state university board
    48  of trustees after consultation with the state comptroller. In  addition,
    49  the  trustees,  after  consultation  with  the  commissioner  of general
    50  services, are authorized to annually  negotiate  with  the  state  comp-
    51  troller  increases in the aforementioned dollar limits and the exemption
    52  of any services or categories of services from these limits;]
    53    b. to establish cash advance accounts for the  purpose  of  purchasing
    54  materials,  supplies, or services, for cash advances for travel expenses
    55  and per diem allowances, or for advance payment of wages and salary. The
    56  account may be used to purchase such materials,  supplies,  or  services

        S. 1508--B                         130
 
     1  where the amount of a single purchase does not exceed [one thousand] two
     2  hundred  fifty  dollars,  in accordance with such guidelines as shall be
     3  prescribed by the state university trustees after consultation with  the
     4  state comptroller;
     5    c.  establish  guidelines  in  consultation  with  the commissioner of
     6  general services authorizing participation by the  state  university  in
     7  programs administered by the office of general services for the purchase
     8  of  available  New York state food products. The commissioner of general
     9  services shall provide assistance to the state university  necessary  to
    10  enable the university to participate in these programs;
    11    d. award contract extensions for campus transportation without compet-
    12  itive  bidding  where such contracts were secured either through compet-
    13  itive bidding or through  evaluation  of  proposals  in  response  to  a
    14  request  for  proposals,  however such extensions may be rejected if the
    15  amount to be paid to the contractor in any year of such proposed  exten-
    16  sion  fails to reflect any decrease in the regional consumer price index
    17  for the New York, New York-Northeastern, New Jersey area, based upon the
    18  index for all urban consumers (CPI-U) during the preceding  twelve-month
    19  period.  At  the  time of any contract extension, consideration shall be
    20  given to any competitive proposal offered  by  a  public  transportation
    21  agency.  Such  contract  may  be increased for each year of the contract
    22  extension by an amount not to exceed the regional consumer  price  index
    23  increase for the New York, New York-Northeastern, New Jersey area, based
    24  upon  the  index  for  all urban consumers (CPI-U), during the preceding
    25  twelve-month period, provided it has been satisfactorily established  by
    26  the  contractor  that  there has been at least an equivalent increase in
    27  the amount of his cost of operation, during the period of the contract.
    28    [e. guidelines promulgated by the state university board  of  trustees
    29  shall,  to the extent practicable, require that competitive proposals be
    30  solicited for purchases, and shall include requirements  that  purchases
    31  and  contracts  authorized under this section be at the lowest available
    32  price, including consideration of prices available through  other  state
    33  agencies, consistent with quality requirements, and as will best promote
    34  the  public  interest.  Such  purchases  may  be  made directly from any
    35  contractor pursuant to any contract for commodities let by the office of
    36  general services or any other state agency.]
    37    6. To enter into any contract or agreement deemed necessary or  advis-
    38  able after consultation with appropriate state agencies for carrying out
    39  the  objects  and  purposes  of state university without prior review or
    40  approval by any state officer or agency other than the state comptroller
    41  and the attorney general  including  contracts  with  non-profit  corpo-
    42  rations  organized  by  officers, employees, alumni or students of state
    43  university for the furtherance of its  academic  objects  and  purposes.
    44  Contracts  or  agreements  entered  into  with the federal government to
    45  enable participation in federal student loan programs, including any and
    46  all instruments  required  thereunder,  shall  not  be  subject  to  the
    47  requirements  of  section  forty-one of the state finance law; provided,
    48  however, that the state shall not be  liable  for  any  portion  of  any
    49  defaults which it has agreed to assume pursuant to any such agreement in
    50  an  amount  in excess of money appropriated or otherwise lawfully avail-
    51  able therefor at the time the liability for payment arises. [The forego-
    52  ing notwithstanding, any contract made for or by  the  state  university
    53  for  the  purchase  of: (i) materials, equipment and supplies, including
    54  computer  equipment;  (ii)  motor  vehicles;  (iii)   construction   and
    55  construction-related  services contracts; and (iv) printing shall not be
    56  subject to prior approval by any other state officer or agency.]

        S. 1508--B                         131
 
     1    § 3. Paragraph b of subdivision 16 of section  355  of  the  education
     2  law, as amended by section 1 of subpart C of part D of chapter 58 of the
     3  laws of 2011, is amended to read as follows:
     4    b.  Notwithstanding  the  provisions of subdivision two of section one
     5  hundred twelve of the state finance law[,] relating to the dollar thres-
     6  hold requiring the comptroller's approval of contracts, subdivision  six
     7  of section one hundred sixty-three of the state finance law [and section
     8  sixty-three  of  the  executive  law  (i)]  authorize  contracts for the
     9  purchase of goods for state university health care  facilities  [without
    10  prior  approval  by  any  other  state  officer  or  agency,]  including
    11  contracts for joint  or  group  purchasing  arrangements  of  goods,  in
    12  accordance  with  procedures  and  requirements  found in paragraph a of
    13  subdivision five of this section[,  and  (ii)  authorize  contracts  for
    14  services]  which do not exceed [seventy-five] two hundred fifty thousand
    15  dollars [without prior approval by any other state officer or agency  in
    16  accordance  with  procedures  and  requirements  found in paragraph a of
    17  subdivision five of this section]. Contracts authorized pursuant to this
    18  paragraph shall be subject to article fourteen of the civil service  law
    19  and  the  applicable  provisions  of  agreements  between  the state and
    20  employee organizations pursuant to article fourteen of the civil service
    21  law.
    22    The trustees are authorized to negotiate annually with the state comp-
    23  troller increases in the aforementioned dollar limits.
    24    § 4. Subdivision 12 of section 373 of the education law, as amended by
    25  section 2 of subpart A of part D of chapter 58 of the laws of  2011,  is
    26  amended to read as follows:
    27    12.  To procure and execute contracts, lease agreements, and all other
    28  instruments necessary or convenient for the exercise  of  its  corporate
    29  powers and the fulfillment of its corporate purposes under this article.
    30  [Notwithstanding  subdivision  two  of section one hundred twelve of the
    31  state finance law or any other law to the  contrary,  fund  procurements
    32  shall not be subject to the prior approval of any state officer or agen-
    33  cy;]
    34    §  5.  Subdivisions  a  and  a-1 of section 6218 of the education law,
    35  subdivision a as amended and subdivision a-1 as added by  section  2  of
    36  subpart  B of part D of chapter 58 of the laws of 2011, subparagraph (i)
    37  of paragraph 1 of subdivision a as amended by section 33 of  part  L  of
    38  chapter 55 of the laws of 2012, are amended to read as follows:
    39    a.  Notwithstanding  the  provisions of subdivision two of section one
    40  hundred twelve and sections one hundred fifteen, one  hundred  sixty-one
    41  and  one hundred sixty-three of the state finance law and sections three
    42  and six of the New York state printing and public documents law  or  any
    43  other  law  to  the  contrary,  the  city  university  is authorized and
    44  empowered to:
    45    [(1)]  (i)  purchase  materials;  proprietary  electronic  information
    46  resources,  including,  but  not  limited to, academic, professional and
    47  industry journals, reference handbooks and  manuals,  research  tracking
    48  tools,  indexes  and  abstracts;  and  equipment and supplies, including
    49  computer equipment and motor vehicles, where the  amount  for  a  single
    50  purchase  does  not  exceed  two  hundred  fifty  thousand dollars, (ii)
    51  execute contracts for [construction  and  construction-related  services
    52  contracts]  services  to an amount not exceeding two hundred fifty thou-
    53  sand dollars, and (iii) contract for printing to an amount not exceeding
    54  two hundred fifty thousand dollars, without prior approval by any  other
    55  state  officer or agency, but subject to rules and regulations or guide-
    56  lines of the state  comptroller  not  otherwise  inconsistent  with  the

        S. 1508--B                         132
 
     1  provisions of this section and in accordance with the guidelines promul-
     2  gated  by  the city university board of trustees after consultation with
     3  the state comptroller. Provided, however, that  the  dollar  limits  set
     4  forth  in  this  subdivision  shall  be one hundred twenty-five thousand
     5  dollars for single or sole source  procurements  or  where  there  is  a
     6  formal protest of the contract award. In addition, where the state comp-
     7  troller determines adequate internal controls are either not in place or
     8  are  not  being  utilized  effectively, and such failure has resulted in
     9  procurement practices that are inconsistent with the purposes underlying
    10  the competitive bidding statutes of the state, including those set forth
    11  in subdivision two of section  one  hundred  sixty-three  of  the  state
    12  finance  law,  the comptroller may reduce the dollar limits set forth in
    13  this subdivision to an amount not less than fifty thousand dollars.
    14    (a-1) The trustees are authorized to annually negotiate with the state
    15  comptroller increases in the dollar limits set forth in this subdivision
    16  and the exemption of any articles, categories of articles or commodities
    17  from these limits.
    18    (a-2) Guidelines promulgated by the city university board of  trustees
    19  shall,  to the extent practicable, require that competitive proposals be
    20  solicited for purchases, and shall include requirements  that  purchases
    21  and  contracts  authorized  under this section be at the lowest possible
    22  price.
    23    [(2) execute contracts for services to an amount not exceeding  twenty
    24  thousand  dollars  without  prior approval by any other state officer or
    25  agency, but subject to rules and regulations of  the  state  comptroller
    26  not  otherwise  inconsistent  with the provisions of this section and in
    27  accordance with the guidelines promulgated by the city university  board
    28  of  trustees after consultation with the state comptroller. In addition,
    29  the trustees,  after  consultation  with  the  commissioner  of  general
    30  services,  are  authorized  to  annually  negotiate with the state comp-
    31  troller increases in the aforementioned dollar limits and the  exemption
    32  of any services or categories of services from these limits.
    33    a-1.  Guidelines  promulgated by the city university board of trustees
    34  shall, to the extent practicable, require that competitive proposals  be
    35  solicited  for  purchases, and shall include requirements that purchases
    36  and contracts authorized under this section be at the  lowest  available
    37  price.]
    38    § 6. Section 6283 of the education law is REPEALED.
    39    §  7.  The state finance law is amended by adding a new section 148 to
    40  read as follows:
    41    § 148. Comptroller approval of the research foundation  of  the  state
    42  university of New York contracts. Notwithstanding any other provision of
    43  law,  before  any contract made for or by the research foundation of the
    44  state university of New York which is to be paid in  whole  or  in  part
    45  from  monies  appropriated or assigned by the state shall be executed or
    46  become effective, whenever such contract exceeds one million dollars  in
    47  amount, it shall first be approved by the state comptroller and filed in
    48  his  or  her office. The comptroller shall make a final written determi-
    49  nation with respect to approval of such contract within ninety  days  of
    50  the  submission  of  such contract to his or her office unless the comp-
    51  troller shall notify, in writing, the research foundation of  the  state
    52  university of New York prior to the expiration of the ninety day period,
    53  and  for  good  cause,  of  the  need  for an extension of not more than
    54  fifteen days, or a reasonable period of time agreed to by  the  research
    55  foundation  of  the  state university of New York and provided, further,

        S. 1508--B                         133

     1  that such written determination or extension shall be made part  of  the
     2  procurement record.
     3    § 8. This act shall take effect immediately; provided, however, that:
     4    (a) the amendments to subdivisions 5 and 6 of section 355 and subdivi-
     5  sions  a  and  a-1 of section 6218 of the education law made by sections
     6  two and five of this  act  shall  not  affect  the  expiration  of  such
     7  provisions pursuant to section 4 of subpart B of part D of chapter 58 of
     8  the laws of 2011, as amended, and shall be deemed to expire therewith;
     9    (b)  the amendments to paragraph b of subdivision 16 of section 355 of
    10  the education law made by section three of this act shall not affect the
    11  expiration of such paragraph pursuant to section 3 of subpart C of  part
    12  D of chapter 58 of the laws of 2011, as amended, and shall expire there-
    13  with;
    14    (c)  the  amendments to subdivision 12 of section 373 of the education
    15  law made by section four of this act shall not affect the expiration  of
    16  such subdivision pursuant to section 4 of subpart A of part D of chapter
    17  58 of the laws of 2011, as amended, and shall expire therewith; and
    18    (d)  section  148  of  the state finance law added by section seven of
    19  this act shall apply to contracts entered into on and after such date.
 
    20                                   PART UU
 
    21    Section 1. Approximately 40 percent of the food produced in the United
    22  States today goes uneaten. Much of this organic waste is disposed of  in
    23  solid  waste  landfills,  where  its  decomposition accounts for over 15
    24  percent of our nation's emissions of methane, a potent  greenhouse  gas.
    25  Meanwhile,  an  estimated  2.8 million New Yorkers are facing hunger and
    26  food insecurity.  Recognizing the importance of food scraps to our envi-
    27  ronment, economy, and the health of New Yorkers, this act establishes  a
    28  food  scraps  hierarchy for the state of New York. The first tier of the
    29  hierarchy is source reduction,  reducing  the  volume  of  surplus  food
    30  generated. The second tier is recovery, feeding wholesome food to hungry
    31  people.  Third  is  repurposing,  feeding  animals. Fourth is recycling,
    32  processing  any  leftover  food  such  as  by  composting  or  anaerobic
    33  digestion to create a nutrient-rich soil amendment.  This legislation is
    34  designed  to  address  each  tier of the hierarchy by:   encouraging the
    35  prevention of food waste generation by commercial generators  and  resi-
    36  dents;  directing  the  recovery  of excess edible food from high-volume
    37  commercial food  waste  generators;  and  ensuring  that  a  significant
    38  portion  of  inedible food waste from large volume food waste generators
    39  is managed in a sustainable manner, and does not end up  being  sent  to
    40  landfills  or  incinerators.    In addition, the state has supported the
    41  recovery of wholesome food by providing grants  from  the  environmental
    42  protection  fund to increase capacity of food banks, conduct food scraps
    43  audits of high-volume generators of food scraps, support  implementation
    44  of  pollution  prevention projects identified by such audits, and expand
    45  capacity of generators and municipalities to donate and recycle food.
    46    § 2. Article 27 of the environmental conservation law  is  amended  by
    47  adding a new title 22 to read as follows:
    48                                  TITLE 22
    49                   FOOD DONATION AND FOOD SCRAPS RECYCLING
    50  Section 27-2201. Definitions.
    51          27-2203. Designated food scraps generator responsibilities.
    52          27-2205. Waste transporter responsibilities.
    53          27-2207. Transfer station.
    54          27-2209. Food scraps disposal prohibition.

        S. 1508--B                         134
 
     1          27-2211. Department responsibilities.
     2          27-2213. Regulations.
     3          27-2215. Exclusions.
     4          27-2217. Annual Report.
     5          27-2219. Severability.
     6  § 27-2201. Definitions.
     7    1.  "Designated food scraps generator" means a person who generates at
     8  a single location an annual average of two tons per week or more of food
     9  scraps based on a methodology established by the department pursuant  to
    10  regulations,  including,  supermarkets,  restaurants, higher educational
    11  institutions, hotels, food processors, correctional  facilities,  sports
    12  or  entertainment venues and health care facilities. For a location with
    13  multiple independent food service businesses, such as a mall or  college
    14  campus,  the  entity responsible for contracting for solid waste hauling
    15  services is responsible for managing food scraps  from  the  independent
    16  businesses.
    17    2.  "Food  scraps" means inedible food, trimmings from the preparation
    18  of food, food-soiled paper, and edible food that is  not  donated.  Food
    19  scraps  shall  not  include used cooking oil, yellow grease or food from
    20  residential sources, or any food identified in  regulations  promulgated
    21  by the department in consultation with the department of agriculture and
    22  markets  or  any food which is subject to a recall or seizure due to the
    23  presence of pathogens, including but not limited to:  Listeria Monocyto-
    24  genes, confirmed Clostridium Botulinum, E. coli 0157:H7 and  all  salmo-
    25  nella in ready-to-eat foods.
    26    3.  "Organics recycler" means a facility, permitted by the department,
    27  that recycles food scraps through use as animal feed or a feed  ingredi-
    28  ent, rendering, land application, composting, aerobic digestion, anaero-
    29  bic  digestion, fermentation, or ethanol production. Animal scraps, food
    30  soiled paper, and post-consumer food scraps are prohibited  for  use  as
    31  animal  feed  or  as  a  feed  ingredient. The proportion of the product
    32  created from food scraps by a composting or digestion facility,  includ-
    33  ing  a wastewater treatment plant that operates a digestion facility, or
    34  other treatment system, must be used in a beneficial manner  as  a  soil
    35  amendment and shall not be disposed of or incinerated.
    36    4.  "Person"  means  any business entity, partnership, company, corpo-
    37  ration, not-for-profit corporation,  association,  governmental  entity,
    38  public benefit corporation, public authority, firm, or organization.
    39    5. "Single location" means contiguous property under common ownership,
    40  which may include one or more buildings.
    41    6.  "Incinerator"  shall  have the same meaning as provided in section
    42  72-0401 of this chapter.
    43    7. "Landfill" shall have the  same  meaning  as  provided  in  section
    44  72-0401 of this chapter.
    45    8. "Transfer station" means a solid waste management facility, whether
    46  owned  or  operated by a private or public entity, other than a recycla-
    47  bles  handling  and  recovery  facility,  used  oil   facility,   or   a
    48  construction  and  demolition  debris  processing  facility, where solid
    49  waste is received for the purpose  of  subsequent  transfer  to  another
    50  solid  waste  management  facility  for  processing, treating, disposal,
    51  recovery, or further transfer.
    52  § 27-2203. Designated food scraps generator responsibilities.
    53    1. Effective January first, two thousand twenty-two:
    54    (a) all designated food scraps generators shall separate their  excess
    55  edible  food  for  donation  for human consumption to the maximum extent

        S. 1508--B                         135
 
     1  practicable, and in accordance with applicable  laws,  rules  and  regu-
     2  lations related to food donation; and
     3    (b)  except  as  provided  in  paragraph (c) of this subdivision, each
     4  designated food scraps generator that is within twenty-five miles of  an
     5  organics  recycler,  to  the  extent  that  the recycler has capacity to
     6  accept all of such generator's food scraps  based  on  the  department's
     7  yearly  estimate  of  an organic recyclers' capacity pursuant to section
     8  27-2211 of this title, shall:
     9    (i) separate its remaining food scraps from other solid waste;
    10    (ii) ensure proper  storage  for  food  scraps  on  site  which  shall
    11  preclude  such  materials  from  becoming odorous or attracting vectors,
    12  such as a container that has a lid and a latch that keeps the lid closed
    13  and is resistant to tampering by  rodents  or  other  wildlife  and  has
    14  sufficient capacity;
    15    (iii)  have  information  available and provide training for employees
    16  concerning the proper methods to separate and store food scraps; and
    17    (iv) obtain a transporter that will deliver food scraps to an organics
    18  recycler, self-haul its food scraps to an organics recycler, or  provide
    19  for  organics  recycling  on-site  via  in vessel composting, aerobic or
    20  anaerobic digestion or any other method of processing organic waste that
    21  the department approves by regulation, for some or all of the food waste
    22  it generates on its premises, provided that the remainder  is  delivered
    23  to an organics recycler.
    24    (c)  The  provisions  of  paragraph  (b) of this subdivision shall not
    25  apply to any designated food scraps generator that has all of  its  food
    26  scraps  processed in a mixed solid waste composting or mixed solid waste
    27  anaerobic digestion facility.
    28    2. All designated food scraps generators shall submit an annual report
    29  to the department on or before March first, two  thousand  twenty-three,
    30  and annually thereafter, in an electronic format. The annual report must
    31  summarize  the  amount of edible food donated, the amount of food scraps
    32  recycled, the organics recycler or recyclers and associated transporters
    33  used, and any other information as required by the department.
    34    3. A designated food scraps generator may petition the department  for
    35  a  temporary  waiver from some or all of the requirements of this title.
    36  The petition must include evidence of undue hardship based on:
    37    (a) the designated food scraps generator does not meet  the  two  tons
    38  per week threshold;
    39    (b) the cost of processing organic waste is not reasonably competitive
    40  with the cost of disposing of waste by landfill;
    41    (c)  the  organics recycler does not have sufficient capacity, despite
    42  the department's calculation; or
    43    (d) the unique circumstances of the generator.
    44    A waiver shall be no longer than one year in duration provided, howev-
    45  er, the department may renew such waiver.
    46  § 27-2205. Waste transporter responsibilities.
    47    1. Any waste transporter that collects food scraps for recycling  from
    48  a designated food scraps generator shall:
    49    (a)  deliver  food scraps to a transfer station that will deliver such
    50  food scraps to an organics recycler unless such generator has received a
    51  temporary waiver under subdivision three  of  section  27-2203  of  this
    52  title; or
    53    (b) deliver such food scraps directly to an organics recycler.
    54    2.  Any  waste transporter that collects food scraps from a designated
    55  food scraps generator shall  take  all  reasonable  precautions  to  not
    56  deliver  those food scraps to an incinerator or a landfill nor commingle

        S. 1508--B                         136
 
     1  the material with any other solid waste unless such commingled waste can
     2  be processed by an  organics  recycler  or  unless  such  generator  has
     3  received  a  temporary waiver under subdivision three of section 27-2203
     4  of this title.
     5  § 27-2207. Transfer station.
     6    Any  transfer station that receives food scraps from a designated food
     7  scraps generator must ensure that the food scraps are taken to an organ-
     8  ics recycler unless such generator has received a temporary waiver under
     9  subdivision three of section 27-2203 of this title. A  transfer  station
    10  shall take all reasonable precautions to not commingle the material with
    11  any  other  solid waste unless such commingled waste can be processed by
    12  an organics recycler.
    13  § 27-2209. Food scraps disposal prohibition.
    14    Incinerators and landfills shall take all  reasonable  precautions  to
    15  not  accept  food scraps from designated food scraps generators required
    16  to send their food scraps to an  organics  recycler  as  outlined  under
    17  section  27-2203  of this title, after January first, two thousand twen-
    18  ty-two, unless the designated  food  scraps  generator  has  received  a
    19  temporary  waiver  under  subdivision  three  of section 27-2203 of this
    20  title.
    21  § 27-2211. Department responsibilities.
    22    1. The department shall publish on its website:  (a)  the  methodology
    23  the  department  will  use  to  determine who is a designated food scrap
    24  generator; (b) the waiver process; (c) procedures to minimize odors  and
    25  vectors; and (d) a list of all designated food scraps generators, organ-
    26  ics  recyclers,  and all waste transporters that manage source-separated
    27  organics.
    28    2. No later than June first,  two  thousand  twenty-one  and  annually
    29  thereafter,  the  department  shall  assess the capacity of each organic
    30  recycler and notify  designated  food  scraps  generators  if  they  are
    31  required  to  comply with the provisions of paragraph (b) of subdivision
    32  one of section 27-2203 of this title.
    33    3. The department shall develop and make available educational materi-
    34  als to assist designated food scraps  generators  with  compliance  with
    35  this  title.  The  department  shall also develop education materials on
    36  food waste minimization  and  encourage  municipalities  to  disseminate
    37  these  materials both on their municipal websites and in any such future
    38  mailings to their residents as they may distribute.
    39    4. The department shall regulate organics  recyclers  to  ensure  that
    40  their  activities  do  not  impair water quality or otherwise harm human
    41  health and the environment.
    42  § 27-2213. Regulations.
    43    The department shall, after one or more  public  hearings,  promulgate
    44  rules  and  regulations  necessary  to  implement the provisions of this
    45  title including: (a) the methodology the department will use  to  deter-
    46  mine  who is a designated food scraps generator; (b) the waiver process;
    47  (c) procedures to minimize odors and vectors; (d) a list of  all  desig-
    48  nated  food  scraps generators, organics recyclers, and all waste trans-
    49  porters that manage source-separated organics; and  (e)  how  designated
    50  food scraps generators shall comply with the provisions of paragraph (a)
    51  and  subparagraph  (i)  of  paragraph  (b) of subdivision one of section
    52  27-2203 of this title.
    53  § 27-2215. Exclusions.
    54    1. This title shall not apply to any designated food scraps generators
    55  located in a city with a population of one million or more which  has  a

        S. 1508--B                         137
 
     1  local law, ordinance or regulation in place which requires the diversion
     2  of edible food and food scraps from disposal.
     3    2.  This  title  does not apply to hospitals, elementary and secondary
     4  schools.
     5  § 27-2217. Annual report.
     6    No later than January first, two  thousand  twenty-three,  and  on  an
     7  annual basis thereafter, the department shall submit an annual report to
     8  the  governor  and  legislature  describing  the  operation  of the food
     9  donation and food scraps recycling program including  amount  of  edible
    10  food donated, amount of food scraps recycled, sample educational materi-
    11  als, and number of waivers provided.
    12  § 27-2219. Severability.
    13    The  provisions  of  this  title shall be severable and if any portion
    14  thereof or the applicability thereof to any person  or  circumstance  is
    15  held  invalid,  the  remainder of this title and the application thereof
    16  shall not be affected thereby.
    17    § 3. This act shall take effect immediately.
 
    18                                   PART VV
 
    19    Section 1. Section 14 of the transportation law is amended by adding a
    20  new subdivision 36 to read as follows:
    21    36. (a) The department shall maintain  a  toll-free  twenty-four  hour
    22  defect-reporting hotline and shall develop and make available a website,
    23  or develop and make available a page on its website:
    24    (i)  providing  an  opportunity for website users to report defects on
    25  state highways and bridges, as well as any  other  arteries  within  the
    26  department's jurisdiction; and
    27    (ii)  providing  a  web  mapping  service  application  displaying the
    28  locations of the reported defects and any departmental actions  respond-
    29  ing  to and remedying the reported defects. Mapping service applications
    30  shall include any additional information the department deems necessary.
    31    (b) The website shall (i) make provision for each defect  reporter  to
    32  provide  his or her name, as well as an electronic mail address or tele-
    33  phone number at which the reporter can be contacted  by  the  department
    34  with  updates  on  the defect reported, though anonymous reporting shall
    35  also be permitted;
    36    (ii) track and preserve defects reported in list and map format; and
    37    (iii) provide an option for  reporting  of  region-  and  highway-wide
    38  defects as well as specific defects along more particularized locations,
    39  including, without limitation, mile markers.
    40    (c)  The listing and map shall be updated no less than once every five
    41  days to reflect any defects  reported  and  repairs  made.  Defects  and
    42  repairs  reported  shall  be  preserved  for  a minimum of three hundred
    43  sixty-five days from the time of reporting or repair.
    44    (d) The department may collect and report such additional  information
    45  and  issues with respect to highway and bridge conditions and defects as
    46  it deems necessary.
    47    (e) The department shall also enable persons to report defects located
    48  on the state thruway system on this interactive website and application,
    49  and is authorized and directed to coordinate with the thruway  authority
    50  in  creating  or  modifying  the  interactive website and application to
    51  share, or enable the thruway authority to receive, reports of defects in
    52  locations for which it is responsible no  more  than  twenty-four  hours
    53  after  the  defect is  reported. The department is authorized to provide
    54  the thruway authority with joint access  to  maintain  and  monitor  the

        S. 1508--B                         138

     1  interactive  website and application,  and may enter into a cost-sharing
     2  arrangement with the authority.
     3    (f)  To  the  extent  practicable,  the  department  shall communicate
     4  defects reported to its interactive website and  application  on  county
     5  roads  and town highways to the local official responsible for such road
     6  or highway.  The  commissioner shall discuss any difficulties she or  he
     7  encounters  in  implementing this paragraph during the joint legislative
     8  budget hearing convened pursuant to article VII of the  state  constitu-
     9  tion  and  section thirty-one of the legislative law, beginning no later
    10  than the hearing to be scheduled in calendar year two thousand twenty.
    11    (g) Nothing in this authorization shall preclude the  department  from
    12  permitting  defects unrelated to the road and highway network from being
    13  reported to this website or application.
    14    (h) Identifying information for the defect reporter  shall  be  exempt
    15  from  the provisions of section eighty-seven of the public officers law,
    16  and shall not be shared by the department or thruway  authority  or  any
    17  entity  with  whom the department or authority contracts in implementing
    18  this legislation.
    19    § 2. This act shall take effect on the one hundred twentieth day after
    20  it shall have become a law. Effective immediately, the addition,  amend-
    21  ment and/or repeal of any rule or regulation necessary for the implemen-
    22  tation  of  this act on its effective date are authorized to be made and
    23  completed on or before such effective date.
    24    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    25  sion, section or part of this act shall be  adjudged  by  any  court  of
    26  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    27  impair, or invalidate the remainder thereof, but shall  be  confined  in
    28  its  operation  to the clause, sentence, paragraph, subdivision, section
    29  or part thereof directly involved in the controversy in which such judg-
    30  ment shall have been rendered. It is hereby declared to be the intent of
    31  the legislature that this act would  have  been  enacted  even  if  such
    32  invalid provisions had not been included herein.
    33    §  3.  This  act shall take effect immediately provided, however, that
    34  the applicable effective date of Parts A through VV of this act shall be
    35  as specifically set forth in the last section of such Parts.
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