Enacts the comptroller's 2011 mandate for fiscal reform act; relates to contents of the state budget and the capital financing and program plan (part A); establishes the New York state asset/infrastructure council (part B); relates to limitations on state-funded debt; relates to public authority board members and repeals article 5-B of the state finance law relating to state-funded debt (part C).
Sponsor: LIBOUS
Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Legislative Law
Law: Amd S53, 54-a & 54, Leg L; amd SS4, 22, 23, 24, 92-cc, 22-c, 68-a, 69-a - 69-e, 97-rrr, add Art 17 SS250 - 252, rpld & add Art 5-B SS67-a - 67-d, St Fin L
Law Section: Legislative Law
Law: Amd S53, 54-a & 54, Leg L; amd SS4, 22, 23, 24, 92-cc, 22-c, 68-a, 69-a - 69-e, 97-rrr, add Art 17 SS250 - 252, rpld & add Art 5-B SS67-a - 67-d, St Fin L
S6365-2011 Actions
- Feb 1, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
S6365-2011 Memo
BILL NUMBER:S6365
TITLE OF BILL:
An act
to amend the legislative law and the state finance law, in
relation to contents of the state budget and the capital financing and
program plan;
to amend the legislative law, in relation to joint budget conference
committees;
to amend the state finance law, in relation to the rainy
day reserve fund; and
to amend the legislative law, in relation to
report on the budget
(Part A); to amend the state finance law, in
relation to establishing
the New York state capital asset/infrastructure
council (Part B);
to amend the state
finance law, in relation to limitations on state-funded debt; to
repeal article 5-B
of the state finance law relating to limitations
on state-supported debt; and providing for the repeal of certain
provisions of such law upon expiration thereof
(Part C)
PURPOSE:
The proposed "comptroller's 2011 mandate for fiscal reform act" will
improve the transparency, accountability, and affordability of New
York State's budgeting, capital planning, and borrowing practices.
PART A
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 3 of section 53 of the legislative law to
clarify, within the legislative law, that the consensus forecast date
referenced in this subdivision is determined by section 23 of the
state finance law (March 1 for the Legislature and the Governor, and
March 5 for the Comptroller if the Legislature and the Governor fail
to agree).
Section 2 amends subdivision 5 of section 4 of the state finance law
to require transfer authorizations to include specific amounts to be
transferred and to identify the specific fund or accounts from which
money or other financial resources is transferred from and the
specific funds or accounts money or other financial resources are
transferred from.
Section 3 amends subdivision 1 of section 22 of the state finance law
to require
non-recurring receipts shall be clearly identified and used only for
non-recurring disbursements or deposited in the debt reduction
reserve fund.
Sections 4 and 5 amend subdivisions 3 and 4 of section 22 of the state
finance law to provide for new detail required in the three year
financial projections presented with the executive budget.
Section 6 adds a new subdivision 4-a to section 22 of the state
finance law to require that specific revenue or spending measures to
eliminate projected deficits be identified when a deficit is
projected in the financial plans submitted with the executive budget.
Section 7 adds two new subdivisions 5-a and 5-b to section 22 of the
state finance law to provide for greater detail in appropriations in
the budget when appropriated by program and fund for each state
agency or public authority, and include summaries that readily
identify disbursement for such entities.
Section 8 amends subdivision 3 of section 23 of the state finance law
to establish that upon the date the legislature has finally acted
upon the appropriation bill or bills submitted by the Governor, the
Governor shall cause to be submitted to the legislature an overview
of revisions to the financial plan.
Section 9 adds a new subdivision 3-a to section 23 of the state
finance law to provide for each state agency or state authority
receiving an appropriation from the budget, new projects, initiative
or policy changes need to be identified.
Section 10 amends subdivision 4 of section 23 of the state finance law
to make a technical correction to an internal reference within the
state finance law.
Section 11 amends subdivision 6 of section 23 of the state finance law
to clarify the consensus forecast agreed to by both houses of the
legislature and the governor is a binding forecast. In addition, this
section provides that if the legislature and the governor fail to
agree on such a binding estimate, then the determination made by the
comptroller shall be binding on both the Governor and the Legislature.
Section 12 amends the opening paragraph of subdivision 1 of section 24
of the state finance law to require every appropriation submitted in
the budget bills proposed by the executive be accompanied by an
estimate of a cash disbursement for each such appropriation.
Section 13 amends subdivision 1 of section 54-a of the legislative law
to require joint budget conference committees to meet and establish
that any meeting of the joint budget conference committees shall be
held in public.
Section 14 amends subdivisions 1 and 2 of section 92-cc of the state
finance law relating to defining "cash surplus" for the purposes of
the rainy day reserve fund.
Additionally such amendment establishes that at the close of each
fiscal year, a portion of any cash surplus remaining in the general
fund after transfer shall be deposited to the rainy day fund until
the fund reaches the maximum balance. Increases the maximum balance
such fund may have to not exceeding five per centum of the aggregate
amount projected to be disbursed from the general fund during the
fiscal year immediately following the then-current fiscal year.
Section 15 amends subdivision 2 of section 54 of the legislative law
to require the legislature to not only pass a budget it determines is
balanced in the general fund but also conforms with the binding
consensus forecast of the economy and available resources required in
subdivision 6 of section 23 of the state finance law.
Section 16 provides for an immediate effective date.
PART B
SUMMARY OF PROVISIONS:
Section 1 adds a new Article 17 ("New York State Capital
Asset/Infrastructure Council") to the state finance law. including
three sections:
Section 250 defines the terms "Capital Assets." "Council."
"Construction," "Local Authority," "State Authority," "Maintenance,"
and "Rehabilitation."
Section 251 sets forth the creation and structure of the New York
State Capital Asset/Infrastructure Council including:
o that the council is created within the Executive Department;
o the purpose of the council, which is to develop and implement a
process to identify, monitor, plan, recommend and publicly report on
all capital assets of state agencies, state and local authorities and
municipal corporations with significant State funding to ensure that
the capital assets meet current and future demand, facilitate
economic growth, are maintained in a good operating condition that
ensures public safety, and are developed or modified in a sustainable
manner;
o that the council will consist of five members serving four year
terms and appointed by the governor, including one who shall be
appointed upon the recommendation of the temporary president of the
senate, one who shall be appointed upon the recommendation of the
speaker of the assembly, and one who shall be appointed upon the
recommendation of the comptroller;
Section 252 sets forth the duties and powers of the council including:
o the ability to enter into cooperative agreements with other
government offices, State agencies, State and local authorities and
municipal corporations to support the work of the council and to
carry out its responsibilities.
o developing recommendations on proposed improvements in prioritizing
the planning and funding of capital asset investments, and improved
procedures for ensuring that state agencies, authorities and local
governments appropriately account for, assess the condition of, repair
and replace assets;
o periodically identifying capital assets located within the State and
annually issuing a comprehensive statewide capital needs assessment
report;
o using the comprehensive statewide capital needs assessment report.
biennially issue a comprehensive 20 year long-term strategic plan for
capital needs encompassing necessary maintenance activities,
scheduled asset replacement, financing and the status of current
capital activities.
Section 2 amends section 22-c of the state finance law to require the
governor base the capital program and financing plan submitted with
the proposed executive budget on the long-term strategic plan
established in section 252(7) of article 17 of the state finance law.
Section 3 provides for an immediate effective dale
PART C
SUMMARY OF PROVISIONS:
Section 1 adds a new Article 5-B (Limitations on State Funded Debt)
to the State Finance Law, including four sections:
Section 67-a defines the terms "State debt," "State-backed debt" and
"State-funded debt" to clarify the full scope of the State's debt
obligations.
Section 67-a also defines the terms "Revenue debt," "Total personal
income of the state," "capital purpose" and "conduit debt obligation."
Section 67-b sets forth the duties with respect to state-funded debt
which include:
o authorizing the division of the budget to annually determine the
debt limit of the state by calculating the amount equal to five
percent of the defined total personal income of the state;
o beginning in 2020, authorizing the division of the budget, by
October 31, to determine the total debt limit of the state for the
next fiscal year and report the limit to the legislature and the
comptroller:
o beginning in fiscal year 2012-13, the inclusion of a plan in the
executive budget proposal outlining the methodology for implementing
the debt limit determined by DOB;
Section 67-b-1 continues the current limitations on the issuance of
state supported debt. This section shall expire and be deemed repealed
on March 31, 2020 when section 67-c is in effect.
Section 67-c sets forth general limitations on State funded debt
including:
o implementation of an overall debt cap, effective on and after April
1, 2021, on all State funded debt to limit debt to no more than 5%)
of the total personal income in the State;
o prohibiting the use of State funded debt for any purpose other than
a capital purpose;
o requiring all State funded debt to be in the form of obligations
issued by the Comptroller beginning with the fiscal year that is at
least one year after the effective date of an amendment to the
Constitution;
o prohibiting the issuance of any state funded debt obligation with a
final maturity exceeding the probable life of the capital project
financed by such debt, as well as prohibiting any maturity longer
than 30 years;
Section 67-d prohibits the issuance of new debt supported by a state
agreement to make payments only if expected debt service sources fall
short
Sections 2 through 13 make conforming changes to statute to the newly
created definition of "state funded debt" set forth in new State
Finance Law Article 5-B, as added by this bill.
Section 14 provides for an immediate effective date. Provided,
however, that section 67-b-1 of the state finance law shall expire
and be deemed repealed on March 31, 2021.
JUSTIFICATION:
Fiscal reform
The New York State Budget is intended to provide a plan that
effectively matches monies available to the State with the cost of
services to meet the needs of New Yorkers. For State Fiscal Year
(SFY) 2010-11, the Enacted Budget Financial Plan (updated) projected
total spending of $137.4 billion in All Governmental Funds, while
total receipts are projected at $135.2 billion.
General Fund spending is projected to reach $55.7 billion in SFY
2010-11, while General Fund receipts are projected at $54.5 billion.
The projected gap between General Fund revenues and spending
continues to widen significantly over the next three years,
exacerbated by the $16.7 billion in temporary or non-recurring
resources used to support the SFY 2010-11 budget. Unfortunately, it
is not unusual that wide gaps exist. These gaps, reflect the
underlying structural imbalance in the state's finances, which to
date have generally been addressed a single year at a time and most
often through use of nonrecurring actions, including borrowing to pay
for everyday expenses, that do not solve this urgent, long range
problem.
While there are numerous steps in the budget process, one of the most
important steps in the process is the Consensus Revenue Forecast,
which occurs in the beginning of March to determine the amount of
revenue available to cover proposed expenses. If leaders do not reach
agreement by March 1, the State Comptroller is charged with providing
independent revenue projections. While recent budget reform laws
improved the process for reaching agreement, including the fail-safe
Comptroller estimate, neither estimate is binding and therefore does
not provide a comprehensive parameter for spending.
Furthermore, existing law only considers certain revenues, and not
everything used to finance the budget, including spending
re-estimates and the use of reserves.
Once decisions on revenue and spending are finalized, the budget is
enacted and volumes of legislation and technical analysis are issued.
Yet the State budget lacks sufficient
information for citizens and others to understand and to make
meaningful comparisons about spending and revenue decisions each
year. Furthermore, all of the information provided in various
Financial and Capital Plan tables and appropriation bills does not
allow a comprehensive comparison with reports on actual spending and
receipts issued by the State Comptroller.
Greater disclosure is needed to provide a better understanding of the
State's financial actions. Making information accessible to taxpayers
that clearly explains spending and revenue projections would help
address the growing public frustration with a process perceived to
be unclear, unaccountable and unaffordable.
Debt and Capital
Although New York regularly borrows and spends money to finance long
term projects such as roads, bridges, dams, prisons and university
buildings, there is no policy to comprehensively track these capital
assets and there is no long tem1 plan for maintaining, replacing or
adding to them. Without knowing what we have or what we need, it is
difficult to determine if the State's limited resources are being
put to the best use or the State's infrastructure will be able to
support future citizen needs.
Furthermore, the State relies heavily on borrowing by public
authorities, which does not require the approval of taxpayers
("backdoor borrowing") to pay for a large portion of the State's
Capital Plan. Less than seven percent of the State's current debt
burden has been approved by those who pay for it. Reliance on this
type of bon-owing has become commonplace. The enacted Five Year
Capital Plan for SFY 2010-11 through SFY 201415 contains no new
borrowing proposals requiring voter approval, but instead relies upon
public authority debt. One reason is the Constitution allows only one
bond act for a single purpose to be put before voters at a time,
significantly limiting the State's flexibility to address all capital
needs in this process.
New York's already high debt burden is projected to significantly
increase over the next five years. Debt service is one of the
fastest growing major components of the State's budget. The debt
reform measures enacted in 2000 did little to slow the growth of the
State debt or restrict the use of debt to capital projects and, as a
result, the State is rapidly approaching the statutory cap on
State-supported debt outstanding as established in the Debt Reform
Act of 2000. Although that cap was placed on the amount of debt
outstanding and debt was restricted to capital purposes only, these
provisions did not apply to all types of State debt and are
statutory, not constitutional, and thus easily bypassed. As a result,
these measures have not been effective. For example, 16.7 percent of
the State's current debt burden is for debt that was issued for
budget relief or deficit financing, which is much like using a
mortgage to pay for groceries.
The Debt Reform Act of 2000 did not adequately restrain harmful
borrowing practices or control growth. The State's capital planning
and borrowing practices must be made more transparent, accountable
and affordable.
Furthermore, as of March 31, 2010, approximately 94 percent of
State-Funded debt outstanding was issued without voter approval by
myriad public authorities. The Constitution establishes a procedure
for controlling debt outstanding by keeping voters involved. This
bill will not only return voters to that role, but will also remove
public authorities from the process by having the State Comptroller
issue ALL debt for the State.
The state comptroller urges passage of this legislation.
S6365-2011 Text
S T A T E O F N E W Y O R K
________________________________________________________________________
6365
I N SENATE
February 1, 2012
___________
Introduced by Sen. LIBOUS -- (at request of the State Comptroller) --
read twice and ordered printed, and when printed to be committed to
the Committee on Investigations and Government Operations
AN ACT to amend the legislative law and the state finance law, in
relation to contents of the state budget and the capital financing and
program plan; to amend the legislative law, in relation to joint budg-
et conference committees; to amend the state finance law, in relation
to the rainy day reserve fund; and to amend the legislative law, in
relation to report on the budget (Part A); to amend the state finance
law, in relation to establishing the New York state capital
asset/infrastructure council (Part B); to amend the state finance law,
in relation to limitations on state-funded debt; to repeal article 5-B
of the state finance law relating to limitations on state-supported
debt; and providing for the repeal of certain provisions of such law
upon expiration thereof (Part C)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the comptroller's 2011 mandate for
fiscal reform act. Each component is wholly contained within a Part
identified as Parts A through C. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section three of this act sets forth the
general effective date of this act.
S 1-a. Short title. This act shall be known and may be cited as "the
comptroller's 2011 mandate for fiscal reform act".
PART A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10647-01-1
S. 6365 2
Section 1. Subdivision 3 of section 53 of the legislative law, as
added by chapter 762 of the laws of 1992, is amended to read as follows:
3. a date, SUBJECT TO THE PROVISIONS OF SECTION TWENTY-THREE OF THE
STATE FINANCE LAW, for the production of a forecast or forecasts on
receipts which shall constitute an evaluation developed by the fiscal
committees of each house, jointly or separately, of the receipts likely
to be available to the state absent passage of any new revenue measures.
Such forecast or forecasts shall also contain an evaluation of the
receipts likely to be available to the state upon passage of any revenue
measure submitted and proposed by the governor pursuant to section three
of article seven of the state constitution; and
S 2. Subdivision 5 of section 4 of the state finance law, as amended
by section 16 of part PP of chapter 56 of the laws of 2009, is amended
to read as follows:
5. No money or other financial resources shall be transferred or
temporarily loaned from one fund to another without specific statutory
authorization for such transfer or temporary loan AND ALL SUCH TRANSFER
AUTHORIZATIONS MUST INCLUDE SPECIFIC AMOUNTS TO BE TRANSFERRED AND IDEN-
TIFICATION OF THE SPECIFIC FUND OR ACCOUNTS FROM WHICH MONEY OR OTHER
FINANCIAL RESOURCES IS TRANSFERRED FROM AND THE SPECIFIC FUNDS OR
ACCOUNTS MONEY OR OTHER FINANCIAL RESOURCES ARE TRANSFERRED TO, except
that money or other financial resources of a fund may be temporarily
loaned to the general fund during the state fiscal year provided that
such loan shall be repaid in full no later than (a) four months after it
was made or (b) by the end of the same fiscal year in which it was made,
whichever period is shorter, so that an accurate accounting and report-
ing of the balance of financial resources in each fund may be made. THE
DIRECTOR OF THE BUDGET SHALL REPORT THE EFFECT OF AUTHORIZED TRANSFERS
ON PROGRAMS AND ACTIVITIES ASSOCIATED WITH FUNDS IN WHICH MONEY OR OTHER
FINANCIAL RESOURCES ARE TRANSFERRED TO OTHER FUNDS OR ACCOUNTS. The
comptroller is hereby authorized to temporarily loan money from the
general fund or any other fund to the fund/accounts that are authorized
to receive a loan. Such loans shall be limited to the amounts immediate-
ly required to meet disbursements, made in pursuance of an appropriation
by law and authorized by a certificate of approval issued by the direc-
tor of the budget with copies thereof filed with the comptroller and the
chair of the senate finance committee and the chair of the assembly ways
and means committee. The director of the budget shall not issue such a
certificate unless he or she shall have determined that the amounts to
be so loaned are receivable on account. When making loans, the comp-
troller shall establish appropriate accounts and if the loan is not
repaid by the end of the month, provide on or before the fifteenth day
of the following month to the director of the budget, the chair of the
senate finance committee and the chair of the assembly ways and means
committee, an accurate accounting and report of the financial resources
of each such fund at the end of such month. Within ten days of the
receipt of such accounting and reporting, the director of the budget
shall provide the comptroller and the chair of the senate finance
committee and the chair of the assembly ways and means committee an
expected schedule of repayment by fund and by source for each outstand-
ing loan. Repayment shall be made by the comptroller from the first cash
receipt of this fund.
S 3. Subdivision 1 of section 22 of the state finance law, as amended
by chapter 762 of the laws of 1992, is amended to read as follows:
1. include a summary financial plan showing for each of the govern-
mental fund types: (a) the disbursements estimated to be made before the
S. 6365 3
close of the current fiscal year and the moneys estimated to be avail-
able from receipts and other sources therefor IN WHICH DISBURSEMENTS DO
NOT EXCEED AVAILABLE RESOURCES IN THE GENERAL FUND AND OTHER STATE FUNDS
USING A CASH BASIS OF ACCOUNTING; and (b) the disbursements proposed to
be made during the ensuing fiscal year, and the moneys estimated to be
available from receipts and other sources therefor inclusive of any
receipts which are expected to result from proposed legislation which he
deems necessary to provide receipts sufficient to meet such proposed
disbursements IN WHICH DISBURSEMENTS DO NOT EXCEED AVAILABLE RESOURCES
IN THE GENERAL FUND AND OTHER STATE FUNDS USING A CASH BASIS OF ACCOUNT-
ING. For the purposes of this summary financial plan, disbursements
shall be presented by the following purposes: state purposes, local
assistance, capital projects, debt service, and general state charges;
receipts shall be presented for each fund type by each revenue source
which accounts for at least one per centum of all such receipts and
otherwise by categories of revenue sources; receipts and disbursements
for special revenue funds shall be presented separately for federal
funds and all other special revenue funds. NON-RECURRING ACTIONS THAT
PRODUCE ADDITIONAL RESOURCES FOR THREE YEARS OR LESS, NOT INCLUDING
MONEYS RECEIVED FROM THE FEDERAL GOVERNMENT, SHALL BE CLEARLY IDENTIFIED
AND USED ONLY FOR NON-RECURRING DISBURSEMENTS OR DEPOSITED IN THE DEBT
REDUCTION RESERVE FUND AS ESTABLISHED IN SECTION NINETY-SEVEN-RRR OF
THIS CHAPTER, AS AMENDED BY SECTION FORTY-FIVE OF PART H OF CHAPTER
FIFTY-SIX OF THE LAWS OF TWO THOUSAND. Whenever receipts or disburse-
ments are proposed to be moved to a different fund type, each signif-
icant amount so moved shall be identified.
S 4. Paragraphs a, b, c, d, d-1, d-2, e and e-1 of subdivision 3 of
section 22 of the state finance law, paragraphs a, b, c, d and d-1 as
amended and paragraph e-1 as added by chapter 762 of the laws of 1992,
and paragraphs d-2 and e as amended by chapter 1 of the laws of 2007,
are amended to read as follows:
a. The appropriations, including reappropriations, made for the
current fiscal year, the appropriations and reappropriations recommended
for the ensuing fiscal year, the disbursements estimated to be made
before the close of the current fiscal year, and proposed to be made
during the ensuing fiscal year based upon available and recommended
appropriations and reappropriations, AND SHALL STATE SEPARATELY THE
AMOUNT, PROJECTED DISBURSEMENT LEVEL, PROGRAM, OBJECT AND PURPOSE OF
EACH ITEM OF APPROPRIATION, AS MODIFIED, AND WHERE THE APPROPRIATION IS
SUBJECT TO ALLOCATION BY MEANS OF (I) A MEMORANDUM OF UNDERSTANDING,
(II) AN INTERCHANGE WITH ANOTHER ITEM OF APPROPRIATION, (III) TRANSFER
OR SUBALLOCATION TO ANOTHER AGENCY, OR (IV) ANY OTHER METHOD OF ALLOCAT-
ING A LUMP SUM INTO SMALLER SUMS, SHALL STATE THE AMOUNT, PROGRAM,
OBJECT AND PURPOSE, INCLUDING EACH INTENDED RECIPIENT, STATED SEPARATE-
LY, OF EACH SMALLER SUM INTO WHICH SUCH ITEM OF APPROPRIATION MAY BE
ALLOCATED. Disbursements proposed to be made shall be shown in separate
parts as follows: those disbursements proposed to be made for state
purposes shall be set forth in one part, those disbursements proposed to
be made for local assistance shall be set forth in another separate and
distinct part, those disbursements proposed to be made for capital
projects shall be set forth in a third separate and distinct part and
those disbursements proposed to be made for debt service shall be set
forth in a fourth separate and distinct part. The effect of any proposed
changes in the payment dates of particular disbursements on the finan-
cial plan presented in accordance with subdivision one of this section
shall be set forth separately.
S. 6365 4
b. In separate sections for each fund type, the receipts actually had
and received during the [preceding] PRIOR fiscal year, the receipts
estimated to be available and received during the current [and ensuing]
fiscal [years respectively] YEAR, AND THE RECEIPTS PROJECTED TO BE
AVAILABLE AND RECEIVED DURING THE ENSUING TWO FISCAL YEARS, listed by
each major source, including statistical and summary tables and a narra-
tive which includes a discussion of the assumptions used in estimating
OR PROJECTING such receipts. The effect of any proposed changes in the
rates, bases, payment dates or other aspects of particular sources of
receipts on the financial plan presented in accordance with subdivision
one of this section shall be set forth separately and the assumptions
used in calculating such effect. Whenever a new fee or a new financing
mechanism is proposed, a schedule of the new fee or financing mechanism
shall be included for purposes of showing the effect of the new fee or
financing mechanism on the financial plan.
c. The ACTUAL expenditures estimated to be made in accordance with
generally accepted accounting principles before the close of the current
fiscal year, and [proposed] THE EXPENDITURES PROJECTED to be made in
accordance with generally accepted accounting principles during the
ensuing TWO fiscal [year] YEARS. Expenditures estimated and proposed to
be made shall be shown in separate parts as follows: those expenditures
for state purposes shall be set forth in one part, those expenditures
for local assistance shall be set forth in another separate and distinct
part, those expenditures for capital projects shall be set forth in a
third separate and distinct part, and those expenditures for debt
service shall be set forth in a fourth separate and distinct part.
d. The revenues actually accrued in the [preceding] PRIOR fiscal year,
the revenues estimated OR PROJECTED to accrue during THE current and THE
ensuing TWO fiscal years, respectively. Revenues from each tax shall be
shown both in total and net of refunds.
d-1. [A schedule] SCHEDULES for [the general fund] EACH GOVERNMENTAL
FUND TYPE showing the differences between projected operating results on
a cash basis and those on the basis of generally accepted accounting
principles.
d-2. Within ten days following the submission of the financial plans
presented in accordance with subdivisions one and two of this section,
the director of the budget shall submit to the comptroller and the
chairs of the senate finance committee and the assembly ways and means
committee:
(i) a detailed schedule by fund of the receipts and disbursements
comprising such summary financial plan;
(ii) a schedule for each governmental fund type [other than the gener-
al fund] showing the differences between projected operating results on
a cash basis and those on the basis of generally accepted accounting
principles;
(iii) a detailed schedule by fund of revenues and expenditures within
the general fund;
(iv) a detailed schedule by fund of receipts for the prior, current
and next three fiscal years[. Such schedule shall present the major
revenue sources for each fund, including detail for each major tax, and
major components of miscellaneous receipts] SHOWN BY EACH MAJOR REVENUE
CATEGORY, INCLUDING EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART
OF MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE
REPORT SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO
SUBDIVISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE
S. 6365 5
SOURCE WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL
RECEIPTS WITHIN EACH FUND TYPE; and
(v) an itemized list of transfers to and from [the general fund] EACH
GOVERNMENTAL FUND AND THE EFFECT OF SUCH TRANSFERS ON PROGRAMS AND
ACTIVITIES ASSOCIATED WITH THE FUNDS IN WHICH MONEY OR OTHER FINANCIAL
RESOURCES ARE TRANSFERRED TO OTHER FUNDS OR ACCOUNTS.
e. [The] FOR EACH FUND TYPE, THE anticipated [general fund] quarterly
schedule and fiscal year total for the prior, current and next ensuing
TWO fiscal years of: disbursements; receipts; repayments of advances;
total tax refunds; and refunds for the tax imposed under article twen-
ty-two of the tax law. Such information shall be presented in the same
form as the summary financial plans presented in accordance with subdi-
visions one and two of this section. A separate, detailed, report of
such schedule shall be provided with receipts shown by each major reven-
ue category, including [detail for each major tax and major components
of miscellaneous receipts, and with disbursements shown by major func-
tion or program] EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART OF
MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE REPORT
SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO SUBDI-
VISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE SOURCE
WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS
WITHIN EACH FUND TYPE AND WITH DISBURSEMENTS SHOWN BY MAJOR AGENCY OR
MAJOR SPENDING ITEM. The director of the division of the budget shall
submit concurrent with the submission of the financial plan to the
legislature pursuant to subdivision two of this section and with each
update thereafter [a revised monthly general fund cash flow projection
of receipts and disbursements for the current fiscal year that: (1)
compares actual results to (i) actual results through the same period
for the prior year and (ii) the most recent prior update to the finan-
cial plan and to the enacted budget financial plan; (2) summarizes the
reasons for any variances; and (3) describes the revisions to the cash
flow projections. The monthly general fund cash flow projection shall be
stated by major category of local assistance, personal service, nonper-
sonal service, general state charges, and debt service, and by major
category of revenue] A SCHEDULE OF ACTUAL AND PLANNED DISBURSEMENTS BY
MONTH AND BY FUND TYPE STATING SEPARATELY AND DISTINCTLY VARIANCES
BETWEEN ACTUAL AND PROJECTED FISCAL YEAR TO DATE DISBURSEMENTS AND
PROJECTED DISBURSEMENTS FOR THE REMAINING MONTHS OF THE FISCAL YEAR.
SUCH REPORT SHALL DOCUMENT ACTUAL AND PROJECTED STATE DISBURSEMENTS
INCLUSIVE OF, AND DISTINCTLY STATED BY CATEGORIES OF LOCAL ASSISTANCE
GRANTS INCLUDING GENERAL PURPOSE, EDUCATION, SOCIAL SERVICES, MEDICAID,
HEALTH AND ENVIRONMENT, MENTAL HYGIENE, TRANSPORTATION, CRIMINAL JUSTICE
AND MISCELLANEOUS; BY DEPARTMENTAL OPERATIONS INCLUDING PERSONAL
SERVICES AND NON-PERSONAL SERVICES; BY GENERAL STATE CHARGES; BY DEBT
SERVICE PAYMENTS AND OTHER FINANCING SOURCES AND USES. Such reports
shall utilize a format that shall facilitate comparison and analysis
with those reports submitted to the legislature by the office of audit
and control pursuant to subdivision nine of section eight of this chap-
ter.
e-1. Within ten days following the submission of the financial plans
presented in accordance with subdivisions one and two of this section,
the anticipated general fund monthly and governmental fund types quar-
terly schedule and fiscal year total for the CURRENT, AND TWO ensuing
fiscal [year] YEARS of: disbursements; receipts; repayments of
advances; total tax refunds; and refunds for the tax imposed under arti-
cle twenty-two of the tax law. Such information shall be presented in
S. 6365 6
the same form as the summary financial plans presented in accordance
with subdivisions one and two of this section.
S 5. Subdivision 4 of section 22 of the state finance law, as amended
by chapter 1 of the laws of 2007, is amended to read as follows:
4. [a.] Include a three year financial projection showing the antic-
ipated disbursements and receipts for each of the governmental fund
types of the state. For the purposes of this three year financial
projection, disbursements shall be presented by the following purposes:
state purposes, local assistance, capital projects, debt service, trans-
fers and general state charges with each major function or major program
identified separately within each purpose; and receipts shall be
presented by each major revenue category, [including detail for each
major tax, and major components of miscellaneous receipts and with
disbursements shown by major function or program for the prior year,
current year and] EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART OF
MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE REPORT
SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO SUBDI-
VISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE SOURCE
WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS
WITHIN EACH FUND TYPE AND WITH DISBURSEMENTS SHOWN BY MAJOR AGENCY OR
MAJOR SPENDING ITEM FOR THE ENSUING AND EACH OF THE next three fiscal
years, and otherwise by each major source which is separately estimated
and presented pursuant to paragraph b of subdivision three of this
section. Receipts and disbursements for special revenue funds shall be
presented separately for federal funds and all other special revenue
funds IN ACCORDANCE WITH THE STATE COMPTROLLER'S CLASSIFICATION OF
FUNDS. Whenever receipts and disbursements are proposed to be moved to
a different fund type, each [significant] REVENUE SOURCE WHICH ACCOUNTS
FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS WITHIN SUCH FUND
TYPE, THE amount so moved shall be explained. This three year financial
projection shall include an explanation of any changes to the financial
plans submitted in accordance with subdivision one of this section and
include explanations of the economic, statutory and other assumptions
used to estimate the disbursements and receipts which are presented.
Whenever the projections for receipts and disbursements are based on
assumptions other than the current levels of service, such assumptions
shall be separately identified and explained. The three year financial
projections shall include a description of any projected deficits or
surpluses IN THE GENERAL FUND OR OTHER STATE FUNDS WITH A DISCUSSION OF
THE CAUSES AND EFFECTS OF SUCH DEFICITS OR SURPLUSES AS WELL AS A
DESCRIPTION OF AVAILABLE OPTIONS TO REDUCE ANY PROJECTED DEFICITS OR
UTILIZE ANY PROJECTED SURPLUSES.
S 6. Section 22 of the state finance law is amended by adding a new
subdivision 4-a to read as follows:
4-A. WHENEVER A DEFICIT IS PROJECTED IN THE GENERAL FUND OR OTHER
STATE FUNDS IN THE FINANCIAL PLANS SUBMITTED PURSUANT TO THIS SECTION
ANNUALLY BY THE GOVERNOR TO THE LEGISLATURE FOR THE NEXT SUCCEEDING
FISCAL YEAR AND/OR FOR THE NEXT SUCCEEDING TWO FISCAL YEARS, IDENTIFY
SPECIFIC REVENUE OR SPENDING MEASURES TO ELIMINATE THE PROJECTED DEFI-
CITS. FOR THE SPECIFIC REVENUE OR SPENDING MEASURES THAT ARE IDENTIFIED,
INCLUDE A DETAILED EXPLANATION OF EACH MEASURE. THIS INFORMATION SHOULD
BE UPDATED IN EACH QUARTERLY FINANCIAL PLAN PURSUANT TO SUBDIVISION FOUR
OF SECTION TWENTY-THREE OF THIS ARTICLE AS WELL AS PERIODICALLY PURSU-
ANT TO MATERIAL CHANGES IN REVENUE AND SPENDING PROJECTIONS.
S 7. Section 22 of the state finance law is amended by adding two new
subdivisions 5-a and 5-b to read as follows:
S. 6365 7
5-A. FOR EACH AGENCY OR PUBLIC AUTHORITY WHERE STATE APPROPRIATIONS
ARE PROVIDED, BY PROGRAM AND FUND, IDENTIFY:
(A) AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO MAINTAIN
CURRENT SERVICES;
(B) AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO SUPPORT
NEW PROGRAM INITIATIVES, OR POLICY CHANGES;
(C) ESTIMATED DISBURSEMENTS FOR EACH AMOUNT OF APPROPRIATION OR REAP-
PROPRIATION SEPARATELY IDENTIFIED IN PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION; AND
(D) ESTIMATED DISBURSEMENTS FOR CARRY-OVER SPENDING FOR EACH PROGRAM,
BY FUND.
5-B. INCLUDE SUMMARIES THAT READILY IDENTIFY DISBURSEMENTS, CARRY-OVER
SPENDING AND NEW SPENDING BY EACH AGENCY OR PUBLIC AUTHORITY WHERE STATE
APPROPRIATIONS ARE PROVIDED, PROGRAM AND FUND. SUCH SUMMARIES SHOULD BE
COMPLETED FOR STATE PURPOSES, LOCAL ASSISTANCE, CAPITAL PROJECTS, AND
GENERAL STATE CHARGES.
S 8. Subdivision 3 of section 23 of the state finance law, as amended
by chapter 1 of the laws of 2007, is amended to read as follows:
3. Financial plans and capital improvement program; revisions. UPON
THE DATE THE LEGISLATURE HAS FINALLY ACTED UPON THE APPROPRIATION BILL
OR BILLS SUBMITTED BY THE GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE
SEVEN OF THE STATE CONSTITUTION, THE GOVERNOR SHALL CAUSE TO BE SUBMIT-
TED TO THE LEGISLATURE AN OVERVIEW OF REVISIONS TO THE FINANCIAL PLAN
WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, A DESCRIPTION OF RECEIPTS
AND DISBURSEMENTS IN THE GENERAL FUND AND ALL GOVERNMENTAL FUNDS AS WELL
AS A GENERAL DESCRIPTION OF CHANGES IN REVENUE AND SPENDING PROJECTIONS
THAT OCCURRED BETWEEN THE GOVERNOR'S SUBMISSION AND ACTION BY THE LEGIS-
LATURE. IF A DEFICIT IS PROJECTED IN THE GENERAL FUND OR OTHER STATE
FUNDS IN THE NEXT SUCCEEDING FISCAL YEAR AND/OR FOR THE NEXT SUCCEEDING
TWO FISCAL YEARS IN THE FINANCIAL PLAN SUBMITTED AS REQUIRED IN THIS
SUBDIVISION, THE GOVERNOR SHALL IDENTIFY ALL INDIVIDUAL REVENUE OR
SPENDING MEASURES TO ELIMINATE THE PROJECTED DEFICIT THAT ACCOUNT FOR AT
LEAST ONE-HALF OF ONE PERCENT OF THE TOTAL PROJECTED DEFICIT. Not later
than thirty days after the legislature has completed action on the budg-
et bills submitted by the governor and the period for the governor's
review has elapsed, the governor shall cause to be submitted to the
legislature the revisions to the financial plans and the capital plan
required by subdivisions one, two, THREE, four [and], five, FIVE-A, AND
FIVE-B of section twenty-two of this article as are necessary to account
for all enactments affecting the financial plans and the capital plan.
The financial plan shall also contain a cash flow analysis of projected
receipts and disbursements and other financing sources or uses for each
month of the state's fiscal year. Notwithstanding any other law to the
contrary, such revised plans and accompanying cash flow analysis shall
be submitted to the legislature and the comptroller in the same form as
the plans required by such subdivisions.
S 9. Section 23 of the state finance law is amended by adding a new
subdivision 3-a to read as follows:
3-A. IDENTIFICATION OF PROJECTS. FOR EACH AGENCY OR STATE AUTHORITY
WHERE STATE APPROPRIATIONS ARE PROVIDED, IDENTIFY THE NEW PROJECTS,
INITIATIVES OR POLICY CHANGES PROPOSED IN THE BUDGET BILLS SUBMITTED
ANNUALLY BY THE GOVERNOR TO THE LEGISLATURE IN ACCORDANCE WITH ARTICLE
SEVEN OF THE CONSTITUTION. COMPARE SUCH PROJECTS, INITIATIVES OR POLICY
CHANGES WITH THE NEW PROJECTS, INITIATIVES AND POLICY CHANGES INCLUDED
IN THE BUDGET AFTER THE LEGISLATURE HAS COMPLETED ACTIONS ON THE BUDGET
S. 6365 8
BILLS SUBMITTED BY THE GOVERNOR. INCLUDE FOR EACH ITEM SUCH DETAIL AS
PROGRAM, FUND AND DISBURSEMENT IMPACT.
S 10. Paragraphs (b) and (c) of subdivision 6 of section 23 of the
state finance law, paragraph (b) as amended and paragraph (c) as added
by chapter 1 of the laws of 2007, are amended to read as follows:
(b) On or before March first in each year, the director of the budget
and the secretary of the senate finance committee and the secretary of
the assembly ways and means committee shall issue a joint report
containing a consensus forecast of the economy and SPECIFIC BINDING
estimates of receipts ANY AND ALL OTHER AVAILABLE RESOURCES USED TO
SUPPORT DISBURSEMENTS for the current and the ensuing state fiscal year.
Such estimates [of receipts] shall include, but not be limited to:
expected tax receipts on an all-funds basis, projected lottery receipts,
[and] anticipated miscellaneous receipts [to be received in the general
fund] AND OTHER FINANCING SOURCES INCLUDING, BUT NOT LIMITED TO, RE-ES-
TIMATES THAT WOULD LOWER CURRENT PROJECTED DISBURSEMENTS AS WELL AS
OTHER RESOURCES THAT WOULD BE USED TO SUPPORT DISBURSEMENTS. The esti-
mate of receipts for the ensuing fiscal year contained in the report,
shall be all receipts from such sources described in this subdivision
available to make disbursements authorized by the appropriation bills
submitted by the governor pursuant to section three of article seven of
the constitution for the ensuing fiscal year. THE COMPTROLLER SHALL
COMMENT ON THE REASONABLENESS AND RELIABILITY OF THE CONSENSUS FORECAST.
(c) On a failure of the director of the budget, the secretary of the
senate finance committee and the secretary of the assembly ways and
means committee to issue a joint report containing a consensus forecast
as provided in paragraph (b) of this subdivision, the state comptroller
shall, on or before March fifth, provide BINDING estimates of receipts
AND OTHER RESOURCES for the current and the ensuing state fiscal year.
Such estimates shall include, but not be limited to, expected tax
receipts on an all-funds basis, projected lottery receipts, [and]
miscellaneous receipts [to be received in the general fund] AND OTHER
FINANCING SOURCES INCLUDING RE-ESTIMATES THAT WOULD LOWER CURRENT
PROJECTED DISBURSEMENTS AS WELL AS OTHER RESOURCES THAT WOULD BE USED TO
SUPPORT DISBURSEMENTS. In rendering his or her estimate, as required in
this paragraph, the comptroller shall give due consideration to the
inherent risks in economic and revenue forecasting and the interest of
the state to maintain budget balance throughout the fiscal year. The
estimate of receipts for the ensuing fiscal year provided by the state
comptroller, shall be all receipts AND OTHER RESOURCES from such sources
available to make disbursements authorized by the appropriation bills
submitted by the governor pursuant to section three of article seven of
the constitution for the ensuing fiscal year.
S 11. The opening paragraph of subdivision 1 of section 24 of the
state finance law, as amended by chapter 1 of the laws of 2007, is
amended to read as follows:
The budget submitted annually by the governor shall be simultaneously
accompanied by a bill or bills for all proposed appropriations and reap-
propriations and for the proposed measures of taxation or other legis-
lation, if any, recommended therein. Such bills shall be submitted by
the governor and shall be known as budget bills. ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWELVE, NO BUDGET BILL SUBMITTED BY THE GOVERNOR MAY
INCLUDE ANY PROPOSED APPROPRIATION OR REAPPROPRIATION FOR ANY PROGRAM
WHICH IS NOT INCLUDED IN THE FINANCIAL PLAN PRESENTED AS PART OF THE
BUDGET SUBMITTED PURSUANT TO SECTION TWENTY-TWO OF THIS ARTICLE. EACH
PROPOSED APPROPRIATION OR REAPPROPRIATION FOR A PROGRAM SHALL BEAR THE
S. 6365 9
FINANCIAL PLAN PROGRAM REFERENCE NUMBER OR NUMBERS TO WHICH IT SHALL
PERTAIN, AND SHALL BE CLASSIFIED INTO THE SAME CATEGORY AS THE ASSOCI-
ATED PROGRAM OR PROGRAMS HAVE BEEN CLASSIFIED IN SUCH FINANCIAL PLAN.
S 12. Subdivision 1 of section 54-a of the legislative law, as added
by chapter 1 of the laws of 2007, is amended to read as follows:
1. establishing a joint budget conference committee or joint budget
conference committees within ten days following the submission of the
budget by the governor pursuant to article seven of the constitution, to
consider and reconcile such budget resolution or budget bills as may be
passed by each house. SUCH JOINT BUDGET CONFERENCE COMMITTEE OR JOINT
BUDGET CONFERENCE COMMITTEES SHALL BE REQUIRED TO MEET AND ANY MEETING
OF THE JOINT BUDGET CONFERENCE COMMITTEE OR JOINT BUDGET CONFERENCE
COMMITTEES SHALL BE HELD IN PUBLIC; and
S 13. Subdivisions 1 and 2 of section 92-cc of the state finance law,
as added by chapter 1 of the laws of 2007, are amended to read as
follows:
1. A. There is hereby established in the state treasury a fund to be
known as the "rainy day reserve fund". Such fund shall consist of moneys
deposited therein and monies shall be withdrawn from such fund only for
the purposes as provided therein.
B. FOR THE PURPOSES OF THIS SUBDIVISION, "CASH SURPLUS" SHALL MEAN THE
AMOUNT BY WHICH GENERAL FUND RECEIPTS EXCEED GENERAL FUND EXPENDITURES
IN SUCH FISCAL YEAR.
C. AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS
REMAINING IN THE GENERAL FUND AFTER THE TRANSFER PURSUANT TO SECTION
NINETY-TWO OF THIS ARTICLE SHALL BE DEPOSITED TO THE RAINY DAY FUND AS
ESTABLISHED IN THIS SECTION UNTIL THE FUND REACHES THE MAXIMUM BALANCE.
2. Such fund shall have a maximum balance not to exceed [three] FIVE
per centum of the aggregate amount projected to be disbursed from the
general fund during the fiscal year immediately following the then-cur-
rent fiscal year.
S 14. Paragraph (a) of subdivision 2 of section 54 of the legislative
law, as added by chapter 1 of the laws of 2007, is amended to read as
follows:
(a) The legislature shall enact a budget for the upcoming fiscal year
that it determines is balanced in the general fund AND CONFORMS WITH THE
BINDING CONSENSUS FORECAST OF THE ECONOMY AND AVAILABLE RESOURCES
REQUIRED BY SUBDIVISION SIX OF SECTION TWENTY-THREE OF THE STATE FINANCE
LAW.
S 15. This act shall take effect immediately.
PART B
Section 1. The state finance law is amended by adding a new article 17
to read as follows:
ARTICLE 17
NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL
SECTION 250. DEFINITIONS.
251. NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL;
CREATION; PROCEDURE.
252. POWERS AND DUTIES.
S 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "CAPITAL ASSETS" SHALL MEAN FIXED ASSETS AND INFRASTRUCTURE ASSETS,
INCLUDING, BUT NOT LIMITED TO, LAND, BUILDINGS, EQUIPMENT, ROADS, AND
BRIDGES OF THE STATE, A STATE AGENCY OR STATE AUTHORITY, AND SHALL ALSO
S. 6365 10
INCLUDE THE CAPITAL ASSETS OF A LOCAL AUTHORITY OR A MUNICIPAL CORPO-
RATION SIGNIFICANTLY FUNDED BY STATE MONIES.
2. "COUNCIL" SHALL MEAN THE NEW YORK STATE CAPITAL
ASSET/INFRASTRUCTURE COUNCIL ESTABLISHED PURSUANT TO SECTION TWO HUNDRED
FIFTY-ONE OF THIS ARTICLE.
3. "CONSTRUCTION" SHALL MEAN THE ERECTION, ACQUISITION, ALTERATION,
RECONSTRUCTION, REHABILITATION, IMPROVEMENT, EQUIPPING, ENLARGEMENT OR
EXTENSION OF A CAPITAL ASSET, INCLUDING LAND ACQUISITION AND THE ENGI-
NEERING, ARCHITECTURAL, LEGAL, FISCAL AND ECONOMIC INVESTIGATIONS,
STUDIES, SURVEYS, DESIGNS, PLANS, DRAWINGS, SPECIFICATIONS, PROCEDURES
AND OTHER ACTIONS RELATING TO A CAPITAL ASSET.
4. "LOCAL AUTHORITY" SHALL MEAN:
(A) A PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION CREATED BY OR
EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW OF THE STATE WHOSE MEMBERS
DO NOT HOLD A CIVIL OFFICE OF THE STATE, ARE NOT APPOINTED BY THE GOVER-
NOR OR ARE APPOINTED BY THE GOVERNOR SPECIFICALLY UPON THE RECOMMENDA-
TION OF THE LOCAL GOVERNMENT OR GOVERNMENTS;
(B) A NOT-FOR-PROFIT CORPORATION AFFILIATED WITH, SPONSORED BY, OR
CREATED BY A COUNTY, CITY, TOWN OR VILLAGE GOVERNMENT;
(C) A LOCAL INDUSTRIAL DEVELOPMENT AGENCY OR AUTHORITY OR OTHER LOCAL
PUBLIC BENEFIT CORPORATION; OR
(D) AN AFFILIATE OF SUCH LOCAL AUTHORITY.
5. "STATE AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR PUBLIC BENEFIT
CORPORATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW
OF THE STATE, WITH ONE OR MORE OF ITS MEMBERS APPOINTED BY THE GOVERNOR
OR WHO SERVE AS MEMBERS BY VIRTUE OF HOLDING A CIVIL OFFICE OF THE
STATE, OTHER THAN AN INTERSTATE OR INTERNATIONAL AUTHORITY OR PUBLIC
BENEFIT CORPORATION, INCLUDING SUBSIDIARIES OF SUCH PUBLIC AUTHORITY OR
PUBLIC BENEFIT CORPORATION.
6. "MAINTENANCE" SHALL MEAN ANY REGULARLY SCHEDULED ACTIVITY INCLUDING
A ROUTINE REPAIR INTENDED TO ENSURE THAT CAPITAL ASSETS CONTINUE TO
OPERATE SAFELY AND EFFICIENTLY AND AS INTENDED.
6-A. "MUNICIPAL CORPORATION" SHALL MEAN A COUNTY, CITY, TOWN OR
VILLAGE AND SHALL INCLUDE ANY SPECIAL DISTRICT THEREIN.
7. "REHABILITATION" SHALL MEAN AN ACTION TO EXTEND THE USEFUL LIFE OR
IMPROVE THE EFFECTIVENESS OF EXISTING CAPITAL ASSETS.
S 251. NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL; CREATION;
PROCEDURE. 1. WITHIN THE EXECUTIVE DEPARTMENT THERE IS HEREBY ESTAB-
LISHED AN INDEPENDENT COUNCIL TO BE KNOWN AS THE NEW YORK STATE CAPITAL
ASSET/INFRASTRUCTURE COUNCIL TO HAVE AND EXERCISE THE POWERS AND DUTIES
PROVIDED BY THE PROVISIONS OF THIS ARTICLE.
2. THE PURPOSE OF THE COUNCIL IS TO DEVELOP AND IMPLEMENT A PROCESS TO
IDENTIFY, MONITOR, PLAN, RECOMMEND, AND PUBLICLY REPORT ON ALL CAPITAL
ASSETS OF STATE AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND
MUNICIPAL CORPORATIONS TO ENSURE THAT THE CAPITAL ASSETS MEET CURRENT
AND FUTURE DEMAND, FACILITATE ECONOMIC GROWTH, ARE MAINTAINED IN A GOOD
OPERATING CONDITION THAT ENSURES PUBLIC SAFETY, AND ARE DEVELOPED OR
MODIFIED IN A SUSTAINABLE MANNER AS PROVIDED BY THE PROVISIONS OF THIS
ARTICLE.
3. THE COUNCIL SHALL CONSIST OF FIVE MEMBERS APPOINTED BY THE GOVER-
NOR, ONE OF WHOM SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE
TEMPORARY PRESIDENT OF THE SENATE, ONE OF WHOM SHALL BE APPOINTED UPON
THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY, AND ONE OF WHOM SHALL
BE APPOINTED UPON THE RECOMMENDATION OF THE COMPTROLLER. EACH MEMBER OF
THE COUNCIL SHALL HAVE EXPERIENCE IN ONE OR MORE OF THE FIELDS OF
ECONOMICS, PUBLIC ADMINISTRATION, CIVIL ENGINEERING, PUBLIC WORKS,
S. 6365 11
CONSTRUCTION OR A RELATED DESIGN PROFESSION, PLANNING, PUBLIC INVESTMENT
FINANCING, ENVIRONMENTAL ENGINEERING OR WATER RESOURCES ENGINEERING.
THE TWO MEMBERS FIRST APPOINTED BY THE GOVERNOR WITHOUT THE RECOMMENDA-
TION OF ANY OTHER STATE OFFICIAL SHALL SERVE AN INITIAL TERM OF FOUR
YEARS; THE MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF THE TEMPO-
RARY PRESIDENT OF THE SENATE SHALL SERVE AN INITIAL TERM OF THREE YEARS;
THE MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF THE SPEAKER OF THE
ASSEMBLY SHALL SERVE AN INITIAL TERM OF THREE YEARS; AND THE MEMBER
FIRST APPOINTED UPON THE RECOMMENDATION OF THE STATE COMPTROLLER SHALL
SERVE AN INITIAL TERM OF TWO YEARS. UPON EXPIRATION OF A MEMBER'S
INITIAL TERM, EACH SUBSEQUENT TERM SHALL BE FOR A PERIOD OF FOUR YEARS.
4. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, NO OFFICER OR
EMPLOYEE OF THE STATE, OF ANY POLITICAL SUBDIVISION OF THE STATE, OF ANY
GOVERNMENTAL ENTITY OPERATING ANY PUBLIC SCHOOL OR COLLEGE, OR OF ANY
OTHER PUBLIC AGENCY OR INSTRUMENTALITY OR UNIT OF GOVERNMENT WHICH EXER-
CISES GOVERNMENTAL POWERS UNDER THE LAWS OF THE STATE, SHALL FORFEIT
SUCH OFFICE OR EMPLOYMENT BY REASON OF ACCEPTANCE OR APPOINTMENT AS A
MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT OF THE COUNCIL NOR
SHALL SERVICE AS SUCH MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT
OF THE COUNCIL BE DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR
EMPLOYMENT. THE MEMBERS, THEIR REPRESENTATIVES, OFFICERS AND STAFF TO
THE COUNCIL SHALL BE DEEMED EMPLOYEES WITHIN THE MEANING OF SECTION
SEVENTEEN OF THE PUBLIC OFFICERS LAW.
5. THE MEMBERS OF THE COUNCIL SHALL SERVE WITHOUT SALARY OR PER DIEM
ALLOWANCE BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECES-
SARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES
PURSUANT TO THIS ARTICLE OR OTHER PROVISION OF LAW; PROVIDED, HOWEVER,
THAT SUCH MEMBERS AND REPRESENTATIVES ARE NOT, AT THE TIME SUCH EXPENSES
ARE INCURRED, PUBLIC EMPLOYEES OTHERWISE ENTITLED TO SUCH REIMBURSEMENT.
S 252. POWERS AND DUTIES. 1. THE COUNCIL SHALL HAVE THE POWER TO:
(A) HOLD SUCH HEARINGS, MEET AND ACT AT SUCH TIMES AND PLACES, TAKE
SUCH TESTIMONY, ADMINISTER SUCH OATHS OR AFFIRMATIONS AND RECEIVE SUCH
EVIDENCE AS THE COUNCIL CONSIDERS ADVISABLE TO CARRY OUT ITS RESPONSI-
BILITIES;
(B) REQUIRE THE PRODUCTION OF ANY BOOKS, AND COLLECTION AND COMPILA-
TION OF DATA DEEMED RELEVANT OR MATERIAL TO ANY REVIEW;
(C) REQUEST AND RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD, COMMIS-
SION OR OTHER AGENCY OF THE STATE, INCLUDING ANY STATE AUTHORITIES,
LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS IN WHICH ANY RELEVANT
INFORMATION NECESSARY TO CARRY OUT THE RESPONSIBILITIES AND PROVISIONS
SET FORTH IN THIS SECTION;
(D) ENTER INTO COOPERATIVE AGREEMENTS WITH OTHER GOVERNMENT OFFICES,
STATE AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL
CORPORATIONS TO EFFICIENTLY SUPPORT THE WORK OF THE COUNCIL AND CARRY
OUT ITS RESPONSIBILITIES;
(E) HAVE DIRECT INPUT AND PROMPT ACCESS TO THE HEAD OF ANY STATE AGEN-
CIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS
AND ANY MEMBER AND EMPLOYEE THEREOF WHEN NECESSARY OR USEFUL IN THE
PERFORMANCE OF THE DUTIES OR RESPONSIBILITIES OF THE COUNCIL;
(F) ISSUE SUCH REPORTS AND OTHER DOCUMENTS AS THE COUNCIL DETERMINES
TO BE NECESSARY OR ADVISABLE; AND
(G) ADVISE AND MAKE RECOMMENDATIONS TO THE GOVERNOR, THE LEGISLATURE,
THE COMPTROLLER, AND OTHER AGENCIES, STATE AUTHORITIES, LOCAL AUTHORI-
TIES AND MUNICIPAL CORPORATIONS OF THE STATE ON MATTERS LIMITED TO
AFFECTING THE CONDITION OF THE CAPITAL ASSETS WITHIN THE STATE.
S. 6365 12
2. THE COUNCIL SHALL IDENTIFY THE CAPITAL ASSETS LOCATED WITHIN THE
STATE ON A PERIODIC BASIS AND ASSESS THE CONDITION OF THE ASSETS BY:
(A) DEVELOPING UNIFORM CRITERIA AND PROCEDURES FOR USE IN CONDUCTING
INVENTORIES AND ASSESSMENTS, INCLUDING FORMAL STANDARDS DEFINING A STATE
OF GOOD REPAIR AND REPLACEMENT CYCLES FOR CAPITAL ASSETS, AND STANDARDS
REQUIRING CLEAR JUSTIFICATION IN TERMS OF RIGOROUS ECONOMIC ANALYSIS FOR
PROPOSED NEW CAPITAL INVESTMENTS OR EXPANSIONS;
(B) INVENTORYING ALL EXISTING CAPITAL ASSETS USING TO THE EXTENT PRAC-
TICABLE, EXISTING INVENTORIES AVAILABLE FROM ALL SOURCES; WHERE EXISTING
INVENTORIES ARE NOT AVAILABLE, A PROCESS FOR STATE AGENCIES, STATE
AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS TO INVENTORY
ALL EXISTING CAPITAL ASSETS WILL BE DEVELOPED SUBJECT TO APPROVAL OF THE
COUNCIL; AND
(C) ASSESSING THE CONDITION OF CAPITAL ASSETS, INCLUDING BUT NOT
LIMITED TO CHANGES IN THE CONDITION OF THOSE CAPITAL ASSETS AS COMPARED
WITH PRECEDING YEARS AND IDENTIFICATION OF NEEDED IMPROVEMENTS.
3. THE COUNCIL SHALL DEVELOP RECOMMENDATIONS BASED ON COMPREHENSIVE
STUDIES AND ASSESSMENTS UNDERTAKEN PURSUANT TO SUBDIVISION TWO OF THIS
SECTION, AND SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVER-
NOR, THE LEGISLATURE AND THE COMPTROLLER NOT LATER THAN JUNE FIFTEENTH,
TWO THOUSAND TWELVE, AND ANNUALLY THEREAFTER, AND SHALL POST SUCH
REPORTS ON THE INTERNET. THE RECOMMENDATIONS OF THE COUNCIL SHALL
INCLUDE:
(A) PROPOSED IMPROVEMENTS IN PRIORITIZING THE PLANNING AND FUNDING OF
CAPITAL ASSET INVESTMENTS INCLUDING MORE EFFICIENT MATCHING OF FUNDING
SOURCES AND ASSET LIFE;
(B) IMPROVED PROCEDURES FOR ENSURING THAT STATE AGENCIES, STATE
AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS REPLACE ASSETS
ON REGULAR REPLACEMENT SCHEDULES ACCORDING TO RELIABLE ESTIMATES OF
THEIR USEFUL LIVES; AND
(C) IMPROVEMENTS IN CRITERIA AND PROCEDURES THAT MAY BE USED BY STATE
AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPO-
RATIONS IN:
(I) DETERMINING THE CAPACITY OF CAPITAL ASSETS TO SUSTAIN CURRENT AND
ANTICIPATED ECONOMIC DEVELOPMENT AND COMPETITIVENESS, INCLUDING
LONG-TERM ECONOMIC GROWTH, INCLUDING THE POTENTIAL RETURN ON INVESTMENTS
IN NEW CAPITAL ASSETS AS OPPOSED TO INVESTMENTS IN EXISTING CAPITAL
ASSETS;
(II) MAINTAINING DATA IN A FORM THAT IS READILY ACCESSIBLE TO THE
PUBLIC;
(III) THE METHODS USED TO FINANCE THE CONSTRUCTION, ACQUISITION, REHA-
BILITATION AND MAINTENANCE OF CAPITAL ASSETS;
(IV) ANY TRENDS OR INNOVATIONS IN METHODS USED TO FINANCE THE
CONSTRUCTION, ACQUISITION, REHABILITATION AND MAINTENANCE OF CAPITAL
ASSETS;
(V) COMPREHENSIVE INVESTMENT REQUIREMENTS, BY TYPE OF CAPITAL ASSET,
THAT ARE NECESSARY TO MAINTAIN THE CURRENT CONDITION AND PERFORMANCE OF
THE CAPITAL ASSETS AND THE INVESTMENT NEEDED TO IMPROVE CAPITAL ASSETS
IN THE FUTURE;
(VI) TRENDS OR INNOVATIONS IN CAPITAL ASSET PROCUREMENT METHODS;
(VII) TRENDS OR INNOVATIONS IN CONSTRUCTION METHODS OR MATERIALS FOR
CAPITAL ASSETS;
(VIII) THE IMPACT OF LOCAL DEVELOPMENT PATTERNS ON DEMAND FOR FUNDING
OF CAPITAL ASSETS;
(IX) THE IMPACT OF DEFERRED MAINTENANCE; AND
(X) THE IMPACT OF DETERIORATED CAPITAL ASSETS.
S. 6365 13
4. THE COUNCIL SHALL REPORT UPDATED FINDINGS AND RECOMMENDATIONS IN A
MANNER CONSISTENT WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS
SECTION, TO BE KNOWN AS THE "COMPREHENSIVE STATEWIDE CAPITAL NEEDS
ASSESSMENT". SUCH REPORTS SHALL BE ISSUED NOT LATER THAN THE LAST DAY OF
THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE REPORT REQUIRED BY
SUBDIVISION THREE OF THIS SECTION IS ISSUED AND, THEREAFTER, ON AN ANNU-
AL BASIS.
5. (A) THE COUNCIL SHALL ISSUE A COMPREHENSIVE TWENTY YEAR STRATEGIC
PLAN FOR CAPITAL NEEDS ENCOMPASSING NECESSARY MAINTENANCE ACTIVITIES,
SCHEDULED ASSET REPLACEMENT AND EXPANSION, THE STATUS OF CURRENT CAPITAL
ACTIVITIES, AND RELATED FINANCING. THE LONG-TERM STRATEGIC PLAN SHALL BE
DEVELOPED BASED ON THE CAPITAL PROJECTS IDENTIFIED IN THE COMPREHENSIVE
STATEWIDE CAPITAL NEEDS ASSESSMENT AND FUTURE CAPITAL PROJECT NEEDS OF
THE STATE, WITH CLEAR INTERIM GOALS AND BENCHMARKS.
(B) THE FIRST TEN-YEAR PORTION OF SUCH PLAN SHALL BE SET FORTH IN
GREATER DETAIL THAN THE SECOND TEN YEAR PORTION OF THE PLAN.
(C) THE LONG-TERM STRATEGIC PLAN SHALL BE UPDATED AND REVISED EVERY
EVEN-NUMBERED YEAR, AND ISSUED SIMULTANEOUSLY WITH THE COMPREHENSIVE
STATEWIDE CAPITAL NEEDS ASSESSMENT OF THAT YEAR.
S 2. The opening paragraph of section 22-c of the state finance law,
as amended by section 3 of part F of chapter 389 of the laws of 1997, is
amended to read as follows:
The governor shall annually submit to the legislature a capital
program and financing plan concurrent with the executive budget, in
addition to the information required by section twenty-two of this arti-
cle. THE PLAN, ALONG WITH CAPITAL APPROPRIATIONS PROPOSED IN THE EXECU-
TIVE BUDGET OR ENACTED BY THE LEGISLATURE, SHALL DERIVE FROM THE
LONG-TERM STRATEGIC PLAN ESTABLISHED BY SUBDIVISION FIVE OF SECTION TWO
HUNDRED FIFTY-TWO OF THIS CHAPTER. ANY DEVIATION FROM THE LONG-TERM
STRATEGIC PLAN MUST BE JUSTIFIED. The plan shall contain a comprehensive
assessment of the capital assets and program needs of all state agen-
cies, a review and analysis of how such requirements would be financed,
an analysis of the affordability of state-supported debt, and an analy-
sis of all costs related to the financing of such plan.
S 3. This act shall take effect immediately.
PART C
Section 1. Article 5-B of the state finance law is REPEALED and a new
article 5-B is added to read as follows:
ARTICLE 5-B
LIMITATIONS ON STATE-FUNDED DEBT
SECTION 67-A. DEFINITIONS.
67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT.
67-B-1. LIMITATIONS ON THE ISSUANCE OF STATE-SUPPORTED DEBT.
67-C. LIMITATIONS ON STATE-FUNDED DEBT.
67-D. PROHIBITION OF CONTINGENT OBLIGATION DEBT.
S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE AND ARTICLE FIVE-C OF
THIS CHAPTER THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "STATE DEBT" SHALL MEAN ALL BONDS, BOND ANTICIPATION NOTES, AND
REVENUE DEBT ISSUED BY THE COMPTROLLER PURSUANT TO ARTICLE FIVE OF THIS
CHAPTER.
2. "STATE-BACKED DEBT" SHALL MEAN ANY DEBT OR OBLIGATION, OTHER THAN
STATE DEBT, THAT IS SUPPORTED IN WHOLE OR IN PART BY ANY FINANCING
ARRANGEMENT WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED, WHETHER
BY LAW, CONTRACT OR OTHERWISE, TO MAKE PAYMENTS WHICH WILL BE USED,
S. 6365 14
DIRECTLY OR INDIRECTLY, FOR THE PAYMENT OF PRINCIPAL, INTEREST OR
RELATED PAYMENTS ON INDEBTEDNESS INCURRED OR CONTRACTED BY THE STATE
ITSELF FOR ANY PURPOSE, OR BY ANY STATE AGENCY, MUNICIPALITY, INDIVID-
UAL, PUBLIC AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY
OTHER ENTITY FOR STATE CAPITAL OR OPERATING PURPOSES OR TO FINANCE
GRANTS, LOANS OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY OR ON
BEHALF OF THE STATE FOR ANY PURPOSE. IF THE STATE AGREES OR HAS AGREED
ON OR AFTER APRIL FIRST, NINETEEN HUNDRED NINETY-SEVEN TO MAKE FUTURE
REVENUES FROM A SPECIFIC STATE SOURCE AVAILABLE FOR THE PURPOSE OF
SUPPORTING DEBT OF ANY MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR
OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, OR, IF ON OR
AFTER SUCH DATE, A PROGRAM OF DEBT IS AUTHORIZED TO BE ISSUED WHERE
STATE AID IS INTENDED TO BE THE SOLE SOURCE OF PAYMENT OF DEBT SERVICE,
SUCH DEBT SHALL BE CONSIDERED TO BE A DEBT FOR THE PURPOSE OF FINANCING
A STATE GRANT, LOAN OR OTHER ASSISTANCE PAYMENT AND SHALL BE A
"STATE-BACKED DEBT" FOR THE PURPOSES OF THIS ARTICLE. THE TERM
"STATE-BACKED DEBT" APPLIES TO ALL DEBT OR OBLIGATIONS DESCRIBED IN THIS
SUBDIVISION FOR WHICH THE STATE AGREES, OR HAS IN THE PAST AGREED, TO
MAKE PAYMENTS (A) WHETHER OR NOT THE OBLIGATION OF THE STATE TO MAKE
PAYMENTS IS SUBJECT TO APPROPRIATION, OR (B) WHETHER OR NOT DEBT SERVICE
IS TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY THE STATE TO ANOTHER
PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS.
3. "STATE-FUNDED DEBT" SHALL MEAN THE COMBINED TOTAL OF ALL STATE
DEBT, AS DEFINED IN SUBDIVISION ONE OF THIS SECTION, AND ALL
STATE-BACKED DEBT EXCEPT SHORT TERM DEBT INCURRED IN ACCORDANCE WITH
SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT
INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI-
TUTION, AND REFUNDING DEBT INCURRED IN ACCORDANCE WITH SECTION THIRTEEN
OF ARTICLE SEVEN OF THE CONSTITUTION AND SHALL INCLUDE ALL DEBT
OUTSTANDING ON THE EFFECTIVE DATE OF THIS SECTION.
4. "STATE-SUPPORTED DEBT" SHALL MEAN ANY BONDS OR NOTES, INCLUDING
BONDS OR NOTES ISSUED TO FUND RESERVE FUNDS AND COSTS OF ISSUANCE,
ISSUED BY THE STATE OR A STATE PUBLIC CORPORATION FOR WHICH THE STATE IS
CONSTITUTIONALLY OBLIGATED TO PAY DEBT SERVICE OR IS CONTRACTUALLY OBLI-
GATED TO PAY DEBT SERVICE SUBJECT TO AN APPROPRIATION, EXCEPT WHERE THE
STATE HAS A CONTINGENT CONTRACTUAL OBLIGATION.
5. "REVENUE DEBT" SHALL MEAN VOTER APPROVED STATE DEBT ISSUED BY THE
COMPTROLLER AND SUPPORTED BY FUTURE REVENUES FROM A SPECIFIC STATE
SOURCE.
6. "TOTAL PERSONAL INCOME OF THE STATE" SHALL MEAN THE MOST RECENTLY
PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF
THE STATE OF NEW YORK BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY
SUCCESSOR AGENCY FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS
FOR WHICH INFORMATION IS AVAILABLE PRIOR TO OCTOBER THIRTY-FIRST OF EACH
YEAR. SUBSEQUENT REVISIONS OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT FOR
SUCH CALENDAR QUARTERS SHALL NOT AFFECT THE VALIDITY OF THE DETERMI-
NATION MADE FOR ANY FISCAL YEAR.
7. "CAPITAL PURPOSE" SHALL MEAN ANY PROJECT INVOLVING:
(A) THE ACQUISITION, CONSTRUCTION, DEMOLITION OR REPLACEMENT OF A
FIXED ASSET OR ASSETS;
(B) THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY
EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS CAPACI-
TY; OR
(C) THE PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI-
TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, INCLUD-
ING THE PREPARATION AND REVIEW OF PLANS AND SPECIFICATIONS INCLUDING
S. 6365 15
ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND SUB-SURFACE INVESTI-
GATIONS INCIDENTAL THERETO.
8. "CONDUIT DEBT OBLIGATION" SHALL MEAN A DEBT OBLIGATION ISSUED BY A
PUBLIC AUTHORITY (THE "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY (THE
"CONDUIT BORROWER") OTHER THAN THE STATE OR A POLITICAL SUBDIVISION OF
THE STATE, WHERE PAYMENT OF THE OBLIGATION IS TO BE MADE FROM FUNDS OF
THE CONDUIT BORROWER, THE SECURITY FOR THE OBLIGATION IS THE CREDIT OF
THE CONDUIT BORROWER AND NO FUNDS OF THE CONDUIT ISSUER, THE STATE OR A
POLITICAL SUBDIVISION OF THE STATE ARE PLEDGED TO SECURE THE OBLIGATION,
WHETHER OR NOT THE OBLIGATION OF THE CONDUIT ISSUER, THE STATE OR POLI-
TICAL SUBDIVISION OF THE STATE IS SUBJECT TO APPROPRIATION OR IS OTHER-
WISE CONTINGENT.
S 67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT. 1. ON OR BEFORE
OCTOBER THIRTY-FIRST, TWO THOUSAND TWENTY, THE DIVISION OF BUDGET SHALL
HAVE THE RESPONSIBILITY TO ANNUALLY DETERMINE THE TOTAL DEBT LIMIT OF
THE STATE BY CALCULATING THE DOLLAR AMOUNT EQUIVALENT TO FIVE PERCENT OF
THE TOTAL PERSONAL INCOME OF THE STATE.
2. ON OR BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND TWENTY AND OCTOBER
THIRTY-FIRST OF EACH YEAR THEREAFTER, THE DIVISION OF BUDGET SHALL
DETERMINE THE TOTAL DEBT LIMIT OF THE STATE, PURSUANT TO SECTION ELEVEN
OF ARTICLE SEVEN OF THE CONSTITUTION FOR THE NEXT FISCAL YEAR, AND
REPORT SUCH INFORMATION BY OCTOBER THIRTY-FIRST, TO THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND
RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, THE CHAIRPERSON
AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE,
AND THE COMPTROLLER. ON OR BEFORE SUCH DATE, THE DIVISION OF BUDGET
SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT.
3. THE EXECUTIVE'S PROPOSED BUDGET FOR STATE FISCAL YEAR TWO THOUSAND
TWELVE--TWO THOUSAND THIRTEEN SHALL INCLUDE A PLAN SETTING FORTH THE
ANNUAL TARGET PERCENTAGES AND METHODOLOGY FOR THE IMPLEMENTATION OF THE
PROVISIONS OF SUBDIVISION ONE OF SECTION SIXTY-SEVEN-C OF THIS ARTICLE
BY APRIL FIRST, TWO THOUSAND TWENTY-ONE. A PROGRESS REPORT WITH RESPECT
TO MEETING ANNUAL TARGET PERCENTAGES IN THE PLAN SHALL BE ISSUED ANNUAL-
LY BY THE EXECUTIVE WITH RELEASE OF THE PROPOSED BUDGET AND, IN THE
EVENT THE ACTUAL PERCENTAGES DEVIATE FROM THE TARGET PERCENTAGES SET
FORTH IN THE INITIAL PLAN, SHALL INCLUDE AN EXPLANATION OF SUCH DEVI-
ATIONS AND THE PROPOSED REMEDIAL ACTIONS DEEMED NECESSARY TO MEET SUCH
TARGET PERCENTAGES BY APRIL FIRST, TWO THOUSAND TWENTY-ONE.
S 67-B-1. LIMITATIONS ON THE ISSUANCE OF STATE-SUPPORTED DEBT. 1. (A)
STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTOBER
THIRTY-FIRST, TWO THOUSAND ONE AND AS OF EACH OCTOBER THIRTY-FIRST THER-
EAFTER, THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH DEBT, AS OF THE
LAST DAY OF THE IMMEDIATELY PRECEDING FISCAL YEAR, IS LESS THAN THE
DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL INCOME OF THE STATE. NOTHING
SHALL PRECLUDE THE CONTRACTING OF STATE-SUPPORTED DEBT PRIOR TO OCTOBER
THIRTY-FIRST OF EACH YEAR IF, AS OF THE LAST DAY OF THE IMMEDIATELY
PRECEDING FISCAL YEAR, THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH
DEBT WAS LESS THAN THE DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL
INCOME OF THE STATE. THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT
SHALL INCLUDE ALL STATE-SUPPORTED DEBT ISSUED ON AND AFTER APRIL FIRST,
TWO THOUSAND. SUCH DESIGNATED PERCENTAGE SHALL BE SEVEN AND
ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL YEAR TWO THOUSAND--TWO THOU-
SAND ONE, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT IN FISCAL
YEAR TWO THOUSAND ONE--TWO THOUSAND TWO, BY AN ADDITIONAL FOUR-TENTHS OF
ONE PERCENT IN FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND THREE, AND BY
AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF THE SEVEN SUBSEQUENT
S. 6365 16
FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR FISCAL YEAR TWO THOUSAND
TEN--TWO THOUSAND ELEVEN AND FOR EACH FISCAL YEAR THEREAFTER SHALL BE
FOUR PERCENT.
(B) IF STATE-SUPPORTED DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT
THE REFUNDING, RETIREMENT OR DEFEASANCE OF STATE-SUPPORTED DEBT
ORIGINALLY ISSUED ON AND AFTER APRIL FIRST, TWO THOUSAND, PROVIDED SUCH
REFUNDINGS ARE CONDUCTED IN ACCORDANCE WITH SECTION THIRTEEN OF ARTICLE
SEVEN OF THE CONSTITUTION, THE CALCULATION OF THE TOTAL OUTSTANDING
PRINCIPAL AMOUNT OF DEBT SHALL EXCLUDE SUCH REFUNDING DEBT, AND SHALL
ONLY INCLUDE THE AMOUNT OF PRIOR REFUNDED DEBT, AS IF IT WERE STILL
OUTSTANDING, IN EACH YEAR UNTIL SUCH REFUNDING DEBT IS FINALLY RETIRED.
NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF SUCH SECTION THIRTEEN
OF ARTICLE SEVEN OF THE CONSTITUTION RELATING TO THE MAINTENANCE OR
MANAGEMENT OF ESCROW FUNDS AND SINKING FUNDS SHALL ONLY BE APPLICABLE TO
STATE-SUPPORTED DEBT ISSUED BY THE STATE COMPTROLLER. IF STATE-SUPPORTED
DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT THE REFUNDING, RETIREMENT
OR DEFEASANCE OF STATE-SUPPORTED DEBT ISSUED PRIOR TO APRIL FIRST, TWO
THOUSAND, THEN THE AMOUNT OF SUCH REFUNDING DEBT SHALL BE EXCLUDED FROM
THE CALCULATION OF THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT IN
EACH YEAR UNTIL SUCH REFUNDING DEBT IS FINALLY RETIRED. IN ADDITION, IF
STATE-SUPPORTED DEBT IS RETIRED OR DEFEASED WITH PAYMENTS IN ANY FISCAL
YEAR MADE BY THE STATE THAT ARE NOT REQUIRED BY MANDATORY PAYMENTS, SUCH
DEBT SHALL BE EXCLUDED FROM THE CALCULATION OF THE TOTAL OUTSTANDING
PRINCIPAL AMOUNT OF DEBT, INCLUDING RETIREMENTS OR DEFEASANCES ACCOM-
PLISHED ON AN ECONOMIC BASIS.
2. STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTO-
BER THIRTY-FIRST, TWO THOUSAND ONE AND AS OF EACH OCTOBER THIRTY-FIRST
THEREAFTER, THE TOTAL AMOUNT OF INTEREST, INSTALLMENTS OF PRINCIPAL,
CONTRIBUTIONS TO SINKING FUNDS, AND RELATED PAYMENTS ON A CASH BASIS OF
ACCOUNTING FOR STATE-SUPPORTED DEBT IN THE IMMEDIATELY PRECEDING FISCAL
YEAR IS LESS THAN THE DESIGNATED PERCENTAGE OF TOTAL GOVERNMENTAL FUNDS
RECEIPTS FOR SUCH FISCAL YEAR. NOTHING SHALL PRECLUDE THE CONTRACTING OF
STATE-SUPPORTED DEBT PRIOR TO OCTOBER THIRTY-FIRST OF EACH YEAR IF, IN
THE IMMEDIATELY PRECEDING FISCAL YEAR, THE TOTAL AMOUNT OF INTEREST,
INSTALLMENTS OF PRINCIPAL, CONTRIBUTIONS TO SINKING FUNDS, AND RELATED
PAYMENTS WAS LESS THAN THE DESIGNATED PERCENTAGE OF TOTAL GOVERNMENTAL
FUNDS RECEIPTS. THIS SHALL INCLUDE THE TOTAL AMOUNT OF PAYMENTS ON SUCH
DEBT ISSUED ON AND AFTER APRIL FIRST, TWO THOUSAND, BUT SHALL NOT
INCLUDE PAYMENTS IN ANY FISCAL YEAR MADE BY THE STATE TO DEFEASE OR
RETIRE DEBT NOT REQUIRED BY MANDATORY PAYMENTS NOR PAYMENTS MADE BY THE
STATE FOR DEBT ISSUED TO REFUND DEBT THAT WAS ISSUED PRIOR TO APRIL
FIRST, TWO THOUSAND. IN ADDITION, IF STATE-SUPPORTED DEBT IS ISSUED TO
REFUND OR OTHERWISE AFFECT THE REFUNDING, RETIREMENT OR DEFEASANCE OF
STATE-SUPPORTED DEBT ORIGINALLY ISSUED ON AND AFTER APRIL FIRST, TWO
THOUSAND, PROVIDED SUCH REFUNDINGS ARE CONDUCTED IN ACCORDANCE WITH
SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION, THE CALCULATION
OF THE TOTAL AMOUNT OF INTEREST, INSTALLMENTS OF PRINCIPAL, CONTRIB-
UTIONS TO SINKING FUNDS, AND RELATED PAYMENTS SHALL EXCLUDE PAYMENTS
MADE ON SUCH REFUNDING DEBT, AND SHALL ONLY INCLUDE THE PAYMENTS ON THE
PRIOR REFUNDED DEBT, AS IF IT WERE STILL OUTSTANDING, IN EACH YEAR UNTIL
SUCH REFUNDING DEBT IS FINALLY RETIRED. SUCH DESIGNATED PERCENTAGE SHALL
BE SEVEN AND ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL YEAR TWO THOU-
SAND--TWO THOUSAND ONE, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT
IN FISCAL YEAR TWO THOUSAND ONE--TWO THOUSAND TWO, BY AN ADDITIONAL
FOUR-TENTHS OF ONE PERCENT IN FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND
THREE, AND BY AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF THE TEN
S. 6365 17
SUBSEQUENT FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR FISCAL YEAR TWO
THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN AND FOR EACH FISCAL YEAR THERE-
AFTER SHALL BE FIVE PERCENT.
S 67-C. LIMITATIONS ON STATE-FUNDED DEBT. 1. NO ADDITIONAL
STATE-FUNDED DEBT SHALL BE INCURRED AFTER APRIL FIRST, TWO THOUSAND
TWENTY-ONE IF THE TOTAL PRINCIPAL AMOUNT OF SUCH ADDITIONAL DEBT,
TOGETHER WITH THE TOTAL PRINCIPAL AMOUNT OF STATE-FUNDED DEBT ALREADY
OUTSTANDING IS EQUAL TO OR GREATER THAN THE TOTAL DEBT LIMIT OF THE
STATE EXCLUDING SHORT TERM DEBT INCURRED IN ACCORDANCE WITH SECTION NINE
OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT INCURRED IN ACCORD-
ANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTITUTION, AND REFUND-
ING DEBT.
2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN ACCORDANCE WITH
SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT
INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI-
TUTION, AND REFUNDING DEBT, NO STATE-FUNDED DEBT SHALL BE INCURRED
EXCEPT TO FINANCE A CAPITAL PURPOSE. NO SUCH STATE-FUNDED DEBT SHALL BE
INCURRED IF THE TOTAL PRINCIPAL AMOUNT OF SUCH DEBT TOGETHER WITH THE
TOTAL PRINCIPAL AMOUNT OF SUCH DEBT ALREADY OUTSTANDING IS EQUAL TO OR
GREATER THAN THE TOTAL DEBT LIMIT OF THE STATE.
3. ALL DEBT SUBJECT TO THE PROVISIONS OF THIS SECTION SHALL, IF
INCURRED ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT
LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT ADDING A NEW
SUBDIVISION SIX TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION,
BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER.
4. NO STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION
WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT
FINANCED BY SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF THIS CHAP-
TER. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO
STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH A
FINAL MATURITY OF MORE THAN THIRTY YEARS.
5. NO STATE-FUNDED DEBT OUTSTANDING ON THE EFFECTIVE DATE OF THIS
SUBDIVISION SHALL BE REFUNDED UNLESS SUCH REFUNDING IS CONDUCTED IN ALL
RESPECTS AS IF SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN OF ARTICLE
SEVEN OF THE CONSTITUTION. SUCH OUTSTANDING DEBT OBLIGATIONS SHALL BE
INCLUDED IN THE DETERMINATION OF THE DEBT LIMIT. FOR THE PURPOSES OF
THIS SUBDIVISION AND SECTION SIXTY-SEVEN-D OF THIS ARTICLE, ANY REFUND-
ING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL MATURITY OF THE DEBT
BEING REFUNDED SHALL BE DEEMED TO BE IN COMPLIANCE WITH THE PROVISIONS
OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITU-
TION MADE APPLICABLE BY THIS SUBDIVISION IF THERE IS AN ACTUAL DEBT
SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT OF THE ISSUANCE OF
THE REFUNDING DEBT.
6. ANY REFUNDING OBLIGATIONS ISSUED PURSUANT TO SUBDIVISION FIVE OF
THIS SECTION ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGIN-
NING AT LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT TO
SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT ON
THE TOTAL AMOUNT OF STATE DEBT SHALL BE ISSUED BY THE COMPTROLLER.
S 67-D. PROHIBITION OF CONTINGENT OBLIGATION DEBT. AFTER THE EFFEC-
TIVE DATE OF THIS SECTION, THE STATE SHALL NOT, EXCEPT AS SPECIFICALLY
AUTHORIZED BY A PROVISION OF THE CONSTITUTION OTHER THAN SECTION ELEVEN
OF ARTICLE SEVEN, AGREE TO MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETH-
ER OR NOT SUBJECT TO APPROPRIATION, THAT ARE TO BE AVAILABLE TO PAY DEBT
SERVICE ON ANY DEBT INCURRED BY A MUNICIPALITY, INDIVIDUAL, PUBLIC
AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY,
FOR ANY PURPOSE, IF SUCH PAYMENTS ARE EXPECTED TO BE USED TO PAY DEBT
S. 6365 18
SERVICE ONLY IF OTHER SOURCES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE
ARE INADEQUATE. ANY PROVISION REQUIRING THE STATE TO REPLACE MONIES USED
TO PAY DEBT SERVICE SHALL BE INCLUDED IN THE PROHIBITION SET FORTH IN
THIS SUBDIVISION. OUTSTANDING DEBT THAT WOULD BE PROHIBITED BY THIS
SECTION IF SUCH DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF THIS
SECTION MAY BE REFUNDED BY THE ENTITY THAT INCURRED THE OUTSTANDING
DEBT.
S 2. Paragraph i of subdivision 3 of section 22 of the state finance
law, as amended by chapter 1 of the laws of 2007, is amended to read as
follows:
i. A statement setting forth state involvement in the fiscal oper-
ations of those public authorities and public benefit corporations which
may be part of the development of a comprehensive state budget system
and provided therefor in the state financial plan. Such statement shall
include those public authorities and public benefit corporations with
disbursements which are not currently reflected in the state central
accounting system from proceeds of any notes or bonds issued by any
public authority, and which bonds or notes would be considered as
[state-supported] STATE-FUNDED debt as defined in section sixty-seven-a
of this chapter. Such statement shall set forth the amount of all of the
bonds, notes and other obligations of each public authority, public
benefit corporation and all other agencies and instrumentalities of the
state for which the full faith and credit of the state has been pledged
or on account of which the state has by law given its pledge or assur-
ance for the continued operation and solvency of the authority, public
corporation, or other agency or instrumentality of the state, as the
case may be. Such statement shall also set forth all proposed appropri-
ations to be made to any public authority, public benefit corporation,
and any other agency or instrumentality of the state which has been
created or continued by law and which is separate and distinct from the
state itself.
S 3. Paragraph b of subdivision 15 of section 22 of the state finance
law, as added by chapter 1 of the laws of 2007, is amended to read as
follows:
b. The capital program and financing plan submitted pursuant to
section twenty-two-c of this article, and the update thereto required
pursuant to section twenty-three of this article, shall include a report
on the management of [state-supported] STATE-FUNDED debt. Such report
may include, but is not limited to: (1) an assessment of the affordabil-
ity of state debt, including debt as a percent of personal income, debt
per capita, and debt service costs as a percent of the budget; (2) a
summary and analysis of the interest rate exchange agreements and vari-
able rate exposure; and (3) an assessment of financing opportunities
related to the state's debt portfolio.
S 4. The opening paragraph and paragraph (f) of subdivision 1, and
subparagraphs (iv), (v), (vi), (vii) and (viii) of paragraph c of subdi-
vision 3 of section 22-c of the state finance law, as amended by section
3 of part F of chapter 389 of the laws of 1997, are amended to read as
follows:
The governor shall annually submit to the legislature a capital
program and financing plan concurrent with the executive budget, in
addition to the information required by section twenty-two of this arti-
cle. The plan shall contain a comprehensive assessment of the capital
assets and program needs of all state agencies, a review and analysis of
how such requirements would be financed, an analysis of the affordabili-
S. 6365 19
ty of [state-supported] STATE-FUNDED debt, and an analysis of all costs
related to the financing of such plan.
(f) "[State-supported] STATE-FUNDED debt" shall [mean any bonds or
notes issued by the state or a state public corporation for which the
state is constitutionally obligated to pay debt service or is contractu-
ally obligated to pay debt service subject to an appropriation, except
where the state has a contingent contractual obligation] HAVE THE SAME
MEANING AS SET FORTH IN SECTION SIXTY-SEVEN-A OF THIS CHAPTER.
(iv) schedules of the projected annual [state-supported] STATE-FUNDED
bond issuances, proposed for each capital program, by agency, by issuer,
and an analysis of existing debt authorizations and the need for any
additional authorizations;
(v) schedules of projected outstanding bonds, including retirements by
year identified separately for [state-supported] STATE-FUNDED bond issu-
ances by issuer, and by capital program by agency, where practicable;
(vi) schedules of the projected personal income of the state and the
projected ratio of outstanding [state-supported] STATE-FUNDED bonds to
personal income;
(vii) schedules of projected [state-supported] STATE-FUNDED debt
service costs by issuer, and by capital program by agency, where practi-
cable; and
(viii) an analysis of trends in municipal bond interest rates and an
explanation of the interest rate assumptions, timing of principal and
interest payments, and the timing and size of projected [state-support-
ed] STATE-FUNDED bond sales used in the debt service projections.
S 5. Subdivision 4 of section 23 of the state finance law, as amended
by chapter 1 of the laws of 2007, is amended to read as follows:
4. Financial plan updates. Quarterly, throughout the fiscal year, the
governor shall submit to the comptroller, the chairs of the senate
finance and the assembly ways and means committees, within thirty days
of the close of the quarter to which it shall pertain, a report which
summarizes the actual experience to date and projections for the remain-
ing quarters of the current fiscal year and for each of the next two
fiscal years of receipts, disbursements, tax refunds, and repayments of
advances presented in forms suitable for comparison with the financial
plan submitted pursuant to subdivisions one, THREE, four, [and] five,
FIVE-A AND FIVE-B of section twenty-two of this article and revised in
accordance with the provisions of subdivision three of this section. The
governor shall submit with the budget a similar report that summarizes
revenue and expenditure experience to date in a form suitable for
comparison with the financial plan submitted pursuant to subdivision two
of section twenty-two of this article and revised in accordance with the
provisions of subdivision three of this section. Such reports shall
provide an explanation of the causes of any major deviations from the
revised financial plans and, shall provide for the amendment of the plan
or plans to reflect those deviations. WHENEVER A DEFICIT IS PROJECTED
IN THE GENERAL FUND OR OTHER STATE FUNDS FOR THE CURRENT FISCAL YEAR
END, THE GOVERNOR SHALL SUBMIT A FINANCIAL PLAN MODIFICATION TO THE
LEGISLATURE WITH LEGISLATION TO EFFECTUATE SUCH MODIFICATIONS AS MAY BE
NECESSARY TO ELIMINATE SUCH DEFICIT. The governor may, if he determines
it advisable, provide more frequent reports to the legislature regarding
actual experience as compared to the financial plans. The quarterly
financial plan update most proximate to October thirty-first of each
year shall include the calculation of the limitations on the issuance of
[state-supported] STATE-FUNDED debt computed pursuant to the provisions
S. 6365 20
of [subdivisions one and two] SUBDIVISION THREE of section sixty-seven-b
of this chapter.
S 6. Subdivision 2 of section 68-a of the state finance law, as
amended by chapter 79 of the laws of 2010, is amended to read as
follows:
2. "Authorized purpose" for purposes of this article and section nine-
ty-two-z of this chapter shall mean any [purposes] PURPOSE for which
[state-supported] STATE-FUNDED debt, as defined by section sixty-seven-a
of this chapter, may BE or has been issued except debt for which the
state is constitutionally obligated thereunder to pay debt service and
related expenses, and except (a) as authorized in paragraph (b) of
subdivision one of section three hundred eighty-five of the public
authorities law, (b) as authorized for the department of health of the
state of New York facilities as specified in paragraph a of subdivision
two of section sixteen hundred eighty of the public authorities law, (c)
state university of New York dormitory facilities as specified in subdi-
vision eight of section sixteen hundred seventy-eight of the public
authorities law, and (d) as authorized for mental health services facil-
ities by section nine-a of section one of chapter three hundred ninety-
two of the laws of nineteen hundred seventy-three constituting the New
York state medical care facilities financing act. Notwithstanding the
provisions of clause (d) of this subdivision, for the period April
first, two thousand nine through March thirty-first, two thousand elev-
en, mental health services facilities, as authorized by section nine-a
of section one of chapter three hundred ninety-two of the laws of nine-
teen hundred seventy-three constituting the New York state medical care
facilities financing act, shall constitute an authorized purpose.
S 7. Section 69-a of the state finance law, as added by section 38 of
part K of chapter 81 of the laws of 2002, subdivision 6 as amended by
section 9 of part A of chapter 63 of the laws of 2005 and subdivision 7
as amended by section 35 of part T of chapter 57 of the laws of 2007, is
amended to read as follows:
S 69-a. Definitions. As used throughout this article, the following
terms shall have the following meanings:
1. "Variable rate bonds" shall mean any [State-supported] STATE-FUNDED
debt which bears interest at a rate or rates which varies from time to
time.
2. "Interest rate exchange or similar agreement" shall mean a written
contract entered into in connection with the issuance of [State-support-
ed] STATE-FUNDED debt, or in connection with such [State-supported]
STATE-FUNDED debt already outstanding, with a counterparty to provide
for an exchange of payments based upon fixed and/or variable interest
rates, and shall be for exchanges in currency of the United States of
America only.
3. "[State-supported] STATE-FUNDED debt" shall mean all debt included
in subdivision [one] THREE of section sixty-seven-a of this chapter.
4. "Authorized issuer" shall mean the state or any state public corpo-
ration which is authorized to issue [State-supported] STATE-FUNDED debt.
5. "Governing board" shall mean, for each state public corporation
which is authorized to issue [State-supported] STATE-FUNDED debt, its
board of directors or, in the absence of a board of directors, its other
appropriate supervising body and, in relation to state general obli-
gation debt, the state comptroller.
6. "Variable rate debt instruments" shall mean, for any calculation
purpose, (i) variable rate bonds or (ii) any [state-supported]
STATE-FUNDED debt and related interest rate exchange or similar agree-
S. 6365 21
ments which, when considered together, result in an authorized issuer
effectively paying interest at a rate or rates which varies from time to
time, but shall not include any variable rate bonds, or any [state-sup-
ported] STATE-FUNDED debt considered together with related interest rate
exchange or similar agreements issued on or before July first, two thou-
sand five, during any period that such instrument or instruments provide
for payment by the authorized issuer of a fixed rate throughout the then
current fiscal year of the state.
7. "Excluded agreements" shall mean the total notional amount of
interest rate exchange or similar agreements entered into for the
purpose of reducing or eliminating a situation of risk or exposure under
an existing interest rate exchange or similar agreement, including, but
not limited to a counterparty downgrade, default, or other actual or
potential economic loss; provided, however, that for agreements entered
into on and after April first, two thousand seven "excluded agreements"
shall mean the total notional amount of interest rate exchange or simi-
lar agreements entered into for the purpose of reducing or eliminating a
situation of imminent risk under an existing interest rate exchange or
similar agreement, including, but not limited to a counterparty down-
grade, default, or other actual or imminent economic loss.
S 8. Section 69-b of the state finance law, as amended by section 32-a
of part T of chapter 57 of the laws of 2007, is amended to read as
follows:
S 69-b. Limitation on amount of variable rate debt instruments. As of
the initial date of each issuance of variable rate bonds or the date of
entering into any other variable rate debt instruments, or for debt
issued on or before July first, two thousand five upon conversion of any
[state-supported] STATE-FUNDED debt to variable rate debt instruments,
the total of the principal and notional amounts of such variable rate
debt instruments outstanding and in effect shall not exceed an amount
equal to twenty percent of the total principal amount of [state-support-
ed] STATE-FUNDED debt outstanding.
S 9. The opening paragraph of section 69-c of the state finance law,
as amended by section 35 of part PP of chapter 56 of the laws of 2009,
is amended to read as follows:
Notwithstanding any other provision of law to the contrary, any
[State-supported] STATE-FUNDED debt may be issued as variable rate
bonds.
S 9-a. Section 69-c of the state finance law, as added by section 38
of part K of chapter 81 of the laws of 2002, is amended to read as
follows:
S 69-c. Variable rate bonds. Notwithstanding any other provision of
law to the contrary, any [State-supported] STATE-FUNDED debt may be
issued as variable rate bonds.
S 10. The opening paragraph and paragraph (d) of subdivision 1 of
section 69-d of the state finance law, as amended by section 33 of part
P2 of chapter 62 of the laws of 2003, are amended to read as follows:
In connection with the issuance of [State-supported] STATE-FUNDED
debt, or in connection with such [State-supported] STATE-FUNDED debt
already outstanding, an authorized issuer shall have the power to:
(d) the state, acting through the director of the budget or other
state officials who are so authorized by applicable law with respect to
such bonds, notes or other obligations, shall also be authorized to
enter into or amend agreements related to such [State-supported] STATE-
FUNDED debt to provide for payment, subject to appropriation, to such
S. 6365 22
authorized issuer of any amounts required to be paid by such authorized
issuer under any such interest rate exchange or similar agreement;
S 11. Paragraphs (c) and (d) of subdivision 2 of section 69-d of the
state finance law, paragraph (c) as amended by section 32 of part T of
chapter 57 of the laws of 2007, paragraph (d) as added by section 38 of
part K of chapter 81 of the laws of 2002, are amended to read as
follows:
(c) the total notional amount of all interest rate exchange or similar
agreements for all authorized issuers to be in effect shall not exceed
an amount equal to twenty percent of the total amount of [state-support-
ed] STATE-FUNDED debt outstanding as of the initial date of entering
into each new agreement; provided, however, that such total notional
amount shall not include any excluded agreements.
(d) no interest rate exchange or similar agreement shall have a matu-
rity exceeding the maturity of the related [State-supported] STATE-FUND-
ED debt;
S 12. Section 69-e of the state finance law, as added by section 38 of
part K of chapter 81 of the laws of 2002, is amended to read as follows:
S 69-e. Applicability. Nothing in this article shall be construed as
to apply to or limit any debt obligation or related instrument of the
state, state public corporations, or any other issuers except those
obligations or instruments which are or relate to [State-supported]
STATE-FUNDED debt.
S 13. Paragraph (a) of subdivision 3 of section 97-rrr of the state
finance law, as amended by section 45 of part H of chapter 56 of the
laws of 2000, is amended to read as follows:
(a) for the payment of principal, interest, and related expenses on
general obligation bonds, lease purchase payments, or special contractu-
al obligation payments, or for the purposes of retiring or defeasing
bonds previously issued, including any accrued interest thereon, for any
[state-supported] STATE-FUNDED bonding program or programs, and;
S 14. This act shall take effect immediately, provided, however, that
section 67-b-1 of the state finance law, as added by section one of this
act, shall expire and be deemed repealed March 31, 2021; provided,
further, however, that subdivisions 3 and 6 of section 67-c of the state
finance law, as added by section one of this act, shall take effect on
the same date as the amendments to article 7 of the state constitution
relating to the authorization of multiple general obligation issuances
and revenue backed bonds on the ballot and restricting the use of debt
to capital purposes with strict limitations on exceptions for specific
purposes, as proposed in a concurrent resolution of the Senate and
Assembly entitled "CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing amendments to article 7 of the constitution, in relation to
authorization of debt in times of public emergency, a limit on the total
amount of state-funded debt, and the refunding of state debts", takes
effect; provided, further, however that the amendments to section 69-c
of the state finance law made by section nine of this act shall be
subject to the expiration and reversion of such section pursuant to
section 51 of part RR of chapter 57 of the laws of 2008, as amended,
when upon such date the provisions of section nine-a of this act shall
take effect.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
S. 6365 23
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately; provided, however, that
the applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.
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