Add S99-r, St Fin L; rpld SS1 & 4, amd S5, Chap 100 of 2010
 
Establishes the FMAP contingency fund to address the failure of the federal government to extend enhanced Medical Assistance percentages; and amends chapter 100 of the laws of 2010 relating to state aid payment dates to school districts and repealing provisions of such chapter.
STATE OF NEW YORK
________________________________________________________________________
S. 11--A A. 11--A
Second Extraordinary Session
SENATE - ASSEMBLY
August 3, 2010
___________
IN SENATE -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read twice and ordered printed, and when printed to be
committed to the Committee on Rules -- committee discharged and said
bill committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read once and referred to the Committee on Ways and Means
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the state finance law, in relation to establishing the
FMAP contingency fund and providing for the repeal of such provisions
upon expiration thereof (Part A); and to amend chapter 100 of the laws
of 2010 relating to making appropriations for the support of govern-
ment, in relation to the effectiveness thereof; and to repeal certain
provisions of such chapter relating thereto and relating to state aid
payment dates to school districts (Part B)
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 2010-2011
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through B. 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, includ-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12314-05-0
S. 11--A 2 A. 11--A
1 PART A
2 Section 1. Notwithstanding any other provision of law to the contrary,
3 to maintain a balanced budget in the event that the federal government
4 does not enact an extension of enhanced Federal Medical Assistance
5 Percentages ("FMAP") for the state of New York in the amount assumed in
6 the 2010--2011 financial plan, the individual payments from all undis-
7 bursed general fund and state special revenue fund aid to localities
8 appropriations, commencing on September 16, 2010, shall be uniformly
9 reduced by the percentage set forth in the written allocation plan
10 required by this section and such reduction shall be applied, to the
11 extent practicable, in equal amounts during the fiscal year. Such
12 percent reduction to payments shall be calculated on the amounts that
13 were undisbursed as of September 16, 2010 to provide for a maximum annu-
14 al reduction of $1,085,000,000 by the end of the 2010--2011 state fiscal
15 year. Beginning on September 16, 2010, all payments from non-exempt
16 appropriations shall be reduced by the percentage set forth in the writ-
17 ten allocation plan required by this section. The following types of
18 appropriations shall be exempt from uniform reduction: (a) public
19 assistance payments for families and individuals and payments for eligi-
20 ble aged, blind and disabled persons related to supplemental social
21 security; (b) any reductions that would violate federal law; (c)
22 payments of debt service and related expenses for which the state is
23 constitutionally obligated to pay debt service or is contractually obli-
24 gated to pay debt service, subject to an appropriation, including where
25 the state has a contingent contractual obligation; (d) payments the
26 state is obligated to make pursuant to court orders or judgments; (e)
27 payments for CUNY senior colleges; and (f) payments to the metropolitan
28 transportation authority related to the mobility tax. With regard to
29 Medicaid payments, such reductions shall be subject to the receipt of
30 all necessary federal approvals. Reductions under this section shall
31 commence on September 16, 2010 and be made in accordance with a written
32 allocation plan prepared by the director of the budget, which shall be
33 filed with the state comptroller, the chairman of the senate finance
34 committee and the chairman of the assembly ways and means committee.
35 Such written allocation plan shall include a summary of the methodology
36 for calculating the percentage reductions to the payments from non-ex-
37 empt appropriations and cash disbursements and the reasons for any
38 exemptions, and a detailed schedule of the reductions and exemptions.
39 The director of the budget shall prepare appropriately reduced certif-
40 icates, which shall be filed with the state comptroller, the chairman of
41 the senate finance committee and the chairman of the assembly ways and
42 means committee. Upon request of the director of the budget, the comp-
43 troller shall transfer the cash equal to the uniform appropriation
44 reduction to the FMAP contingency fund established pursuant to section
45 99-r of the state finance law to the extent such cash is available. If
46 an extension of enhanced FMAP is not enacted by November 15, 2010, the
47 governor, temporary president of the senate, and the speaker of the
48 assembly shall cause their respective appropriate personnel to meet to
49 review the impact of the uniform reductions and discuss potential alter-
50 native reductions.
51 § 2. The payment reductions shall be subject to the following condi-
52 tions: (a) if at any time after the effective date of this section an
53 extension of enhanced FMAP has been enacted by the Federal government in
54 an amount equal to or greater than $1,085,000,000 in the fiscal year two
55 thousand ten--two thousand eleven financial plan, no further reductions
S. 11--A 3 A. 11--A
1 shall occur and all payment amounts withheld pursuant to this section
2 shall be paid to the recipients from which they were withheld by March
3 31, 2011 or in the case of Medicaid payments, as soon as practicable
4 following receipt of all necessary federal approvals; (b) if an exten-
5 sion of enhanced FMAP is not enacted by March 31, 2011, the reductions
6 authorized by this section shall continue until the total amount of such
7 reductions is equal to $1,085,000,000; or (c) if an extension of
8 enhanced FMAP is enacted in an amount less than the $1,085,000,000
9 assumed in the fiscal year two thousand ten--two thousand eleven finan-
10 cial plan, the reductions authorized by this section shall continue
11 until the total amount of such reductions is equal to the difference
12 between $1,085,000,000 and the amount of enhanced FMAP provided, howev-
13 er, if an extension of enhanced FMAP is enacted in an amount less than
14 the $1,085,000,000 and at the time of the enactment the total amount of
15 the reductions is equal to or greater than the amount by which the
16 extension differs from the amount in the fiscal year two thousand ten--
17 two thousand eleven financial plan, no further reductions shall be made
18 and the amount of the reductions previously made that exceeds the
19 difference between $1,085,000,000 and the amount of the extension shall
20 be paid to the recipients subject to reduced payments in proportion to
21 those reductions, and such payments shall be made by March 31, 2011.
22 Notwithstanding any other provision of law to the contrary, liability
23 for amounts due under any appropriation or other applicable provision of
24 law subject to uniform reduction pursuant to this act shall be reduced
25 by March 31, 2011 in the amounts equal to any payment reduction up to
26 $1,085,000,000, and the appropriation shall be reduced by a commensurate
27 amount pursuant to subdivisions (b) and (c) of this section, as appro-
28 priate. Notwithstanding any inconsistent provision of law, rule or
29 regulation, the effectiveness of the provisions of sections 2807 and
30 3614 of the public health law, section 18 of chapter 2 of the laws of
31 1988, and 18 NYCRR § 505.14(h), as they relate to time frames for
32 notice, approval or certification of rates of payment, are hereby
33 suspended and without force or effect for purposes of implementing the
34 provisions of this act.
35 § 3. On March 31, 2011, the director of the budget shall calculate the
36 difference, if any, between the actual closing balance in the general
37 fund on March 31, 2011 and the closing balance projected by the division
38 of the budget in the 2010-11 enacted budget financial plan. If the actu-
39 al closing balance is in excess of the projected balance, the amount of
40 the difference shall be disbursed by April 15, 2011 or, in the case of
41 Medicaid, as soon as practicable following the receipt of all necessary
42 federal approvals, to uniformly mitigate the uniform reductions made
43 pursuant to section one of this act, provided, however, that no such
44 amount shall be available for disbursement until the director of the
45 budget certifies that (a) the general fund made all planned payments
46 anticipated in the 2010-11 financial plan including tax refunds, without
47 the issuance of deficit bonds or notes or extraordinary cash management
48 actions, (b) the balances in the tax stabilization reserve and rainy day
49 reserve (together, the "rainy day reserves") have been restored to a
50 level equal to the level as of the start of the fiscal year, and (c)
51 other designated balances have been maintained, as provided by law.
52 § 4. The state finance law is amended by adding a new section 99-r to
53 read as follows:
54 § 99-r. FMAP contingency fund. 1. There is hereby established in the
55 state treasury an account in the general fund known as the "FMAP contin-
56 gency fund".
S. 11--A 4 A. 11--A
1 2. The fund shall consist of all monies required by law to be trans-
2 ferred to the fund.
3 3. Monies in the fund shall be disbursed, when allocated, for the
4 purpose of making payments that had previously been subject to reduction
5 pursuant to law as a result of federal government failure to enact an
6 extension of enhanced Federal Medical Assistance Percentages ("FMAP").
7 4. If by February fifteenth, two thousand eleven, enhanced FMAP is not
8 extended or is extended in an amount that is less than the
9 $1,085,000,000 in the fiscal year two thousand ten--two thousand eleven
10 financial plan as determined by the director of the budget, monies in
11 the fund on such date not required to be paid pursuant to the provisions
12 of section two of the chapter of the laws of two thousand ten which
13 added this section may be transferred to the general fund and any
14 amounts deposited in the fund after such date may be transferred to the
15 general fund upon the request of the director of the budget.
16 § 5. This act shall take effect immediately; provided, however, that
17 section three of this act shall take effect upon the enactment of the
18 2010-2011 budget, and provided further, that this act shall expire and
19 be deemed repealed April 15, 2011, except in the case of Medicaid, when
20 such act shall expire and be deemed repealed July 1, 2011.
21 PART B
22 Section 1. Sections 1 and 4 of chapter 100 of the laws of 2010,
23 relating to making appropriations for the support of government, are
24 REPEALED.
25 § 2. Section 5 of chapter 100 of the laws of 2010, relating to making
26 appropriations for the support of government, is amended to read as
27 follows:
28 § 5. This act shall take effect immediately and shall be deemed to
29 have been in full force and effect on and after April 1, 2010[;
30 provided, however, that upon the transfer of expenditures and disburse-
31 ments by the comptroller as provided in section four of this act, the
32 appropriations made by this act and subject to such section shall be
33 deemed repealed].
34 § 3. Notwithstanding any provision of the law to the contrary, any
35 payment otherwise due and payable during the month of September pursuant
36 to: subparagraph (1) of paragraph a of subdivision 1 of section 3609-a
37 of the education law, subparagraph (2) of paragraph a of subdivision 1
38 of section 3609-a of the education law, subparagraph (3) of paragraph a
39 of subdivision 1 of section 3609-a of the education law, clause (vii) of
40 subparagraph (3) of paragraph b of subdivision 1 of section 3609-a of
41 the education law, subparagraph (5) of paragraph a of subdivision 2 of
42 section 3609-b of the education law, subdivision 1 of section 3609-d of
43 the education law, and paragraph (a) of subdivision 1 of section 3609-f
44 of the education law for the 2010-11 school year shall be due and paya-
45 ble on or before September 30, 2010.
46 § 4. This act shall take effect immediately and shall be deemed to
47 have been in full force and effect on and after April 1, 2010, provided
48 however that notwithstanding any inconsistent provision of law, sections
49 one and two of this act shall be deemed to have been in full force and
50 effect on and after the effective date of chapter 100 of the laws of
51 2010.
52 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
53 sion, section or part of this act shall be adjudged by any court of
54 competent jurisdiction to be invalid, such judgment shall not affect,
S. 11--A 5 A. 11--A
1 impair, or invalidate the remainder thereof, but shall be confined in
2 its operation to the clause, sentence, paragraph, subdivision, section
3 or part thereof directly involved in the controversy in which such judg-
4 ment shall have been rendered. It is hereby declared to be the intent of
5 the legislature that this act would have been enacted even if such
6 invalid provisions had not been included herein.
7 § 3. This act shall take effect immediately provided, however, that
8 the applicable effective date of Parts A through B of this act shall be
9 as specifically set forth in the last section of such Parts.