S T A T E O F N E W Y O R K ________________________________________________________________________ 7906 2011-2012 Regular Sessions I N A S S E M B L Y May 23, 2011 ___________ Introduced by M. of A. FARRELL -- (at request of the State Comptroller) -- read once and referred to the Committee on Ways and Means 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: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the comptroller's 2011 mandate for 3 fiscal reform act. Each component is wholly contained within a Part 4 identified as Parts A through C. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 S 1-a. Short title. This act shall be known and may be cited as "the 13 comptroller's 2011 mandate for fiscal reform act". 14 PART A EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10647-01-1 A. 7906 2 1 Section 1. Subdivision 3 of section 53 of the legislative law, as 2 added by chapter 762 of the laws of 1992, is amended to read as follows: 3 3. a date, SUBJECT TO THE PROVISIONS OF SECTION TWENTY-THREE OF THE 4 STATE FINANCE LAW, for the production of a forecast or forecasts on 5 receipts which shall constitute an evaluation developed by the fiscal 6 committees of each house, jointly or separately, of the receipts likely 7 to be available to the state absent passage of any new revenue measures. 8 Such forecast or forecasts shall also contain an evaluation of the 9 receipts likely to be available to the state upon passage of any revenue 10 measure submitted and proposed by the governor pursuant to section three 11 of article seven of the state constitution; and 12 S 2. Subdivision 5 of section 4 of the state finance law, as amended 13 by section 16 of part PP of chapter 56 of the laws of 2009, is amended 14 to read as follows: 15 5. No money or other financial resources shall be transferred or 16 temporarily loaned from one fund to another without specific statutory 17 authorization for such transfer or temporary loan AND ALL SUCH TRANSFER 18 AUTHORIZATIONS MUST INCLUDE SPECIFIC AMOUNTS TO BE TRANSFERRED AND IDEN- 19 TIFICATION OF THE SPECIFIC FUND OR ACCOUNTS FROM WHICH MONEY OR OTHER 20 FINANCIAL RESOURCES IS TRANSFERRED FROM AND THE SPECIFIC FUNDS OR 21 ACCOUNTS MONEY OR OTHER FINANCIAL RESOURCES ARE TRANSFERRED TO, except 22 that money or other financial resources of a fund may be temporarily 23 loaned to the general fund during the state fiscal year provided that 24 such loan shall be repaid in full no later than (a) four months after it 25 was made or (b) by the end of the same fiscal year in which it was made, 26 whichever period is shorter, so that an accurate accounting and report- 27 ing of the balance of financial resources in each fund may be made. THE 28 DIRECTOR OF THE BUDGET SHALL REPORT THE EFFECT OF AUTHORIZED TRANSFERS 29 ON PROGRAMS AND ACTIVITIES ASSOCIATED WITH FUNDS IN WHICH MONEY OR OTHER 30 FINANCIAL RESOURCES ARE TRANSFERRED TO OTHER FUNDS OR ACCOUNTS. The 31 comptroller is hereby authorized to temporarily loan money from the 32 general fund or any other fund to the fund/accounts that are authorized 33 to receive a loan. Such loans shall be limited to the amounts immediate- 34 ly required to meet disbursements, made in pursuance of an appropriation 35 by law and authorized by a certificate of approval issued by the direc- 36 tor of the budget with copies thereof filed with the comptroller and the 37 chair of the senate finance committee and the chair of the assembly ways 38 and means committee. The director of the budget shall not issue such a 39 certificate unless he or she shall have determined that the amounts to 40 be so loaned are receivable on account. When making loans, the comp- 41 troller shall establish appropriate accounts and if the loan is not 42 repaid by the end of the month, provide on or before the fifteenth day 43 of the following month to the director of the budget, the chair of the 44 senate finance committee and the chair of the assembly ways and means 45 committee, an accurate accounting and report of the financial resources 46 of each such fund at the end of such month. Within ten days of the 47 receipt of such accounting and reporting, the director of the budget 48 shall provide the comptroller and the chair of the senate finance 49 committee and the chair of the assembly ways and means committee an 50 expected schedule of repayment by fund and by source for each outstand- 51 ing loan. Repayment shall be made by the comptroller from the first cash 52 receipt of this fund. 53 S 3. Subdivision 1 of section 22 of the state finance law, as amended 54 by chapter 762 of the laws of 1992, is amended to read as follows: 55 1. include a summary financial plan showing for each of the govern- 56 mental fund types: (a) the disbursements estimated to be made before the A. 7906 3 1 close of the current fiscal year and the moneys estimated to be avail- 2 able from receipts and other sources therefor IN WHICH DISBURSEMENTS DO 3 NOT EXCEED AVAILABLE RESOURCES IN THE GENERAL FUND AND OTHER STATE FUNDS 4 USING A CASH BASIS OF ACCOUNTING; and (b) the disbursements proposed to 5 be made during the ensuing fiscal year, and the moneys estimated to be 6 available from receipts and other sources therefor inclusive of any 7 receipts which are expected to result from proposed legislation which he 8 deems necessary to provide receipts sufficient to meet such proposed 9 disbursements IN WHICH DISBURSEMENTS DO NOT EXCEED AVAILABLE RESOURCES 10 IN THE GENERAL FUND AND OTHER STATE FUNDS USING A CASH BASIS OF ACCOUNT- 11 ING. For the purposes of this summary financial plan, disbursements 12 shall be presented by the following purposes: state purposes, local 13 assistance, capital projects, debt service, and general state charges; 14 receipts shall be presented for each fund type by each revenue source 15 which accounts for at least one per centum of all such receipts and 16 otherwise by categories of revenue sources; receipts and disbursements 17 for special revenue funds shall be presented separately for federal 18 funds and all other special revenue funds. NON-RECURRING ACTIONS THAT 19 PRODUCE ADDITIONAL RESOURCES FOR THREE YEARS OR LESS, NOT INCLUDING 20 MONEYS RECEIVED FROM THE FEDERAL GOVERNMENT, SHALL BE CLEARLY IDENTIFIED 21 AND USED ONLY FOR NON-RECURRING DISBURSEMENTS OR DEPOSITED IN THE DEBT 22 REDUCTION RESERVE FUND AS ESTABLISHED IN SECTION NINETY-SEVEN-RRR OF 23 THIS CHAPTER, AS AMENDED BY SECTION FORTY-FIVE OF PART H OF CHAPTER 24 FIFTY-SIX OF THE LAWS OF TWO THOUSAND. Whenever receipts or disburse- 25 ments are proposed to be moved to a different fund type, each signif- 26 icant amount so moved shall be identified. 27 S 4. Paragraphs a, b, c, d, d-1, d-2, e and e-1 of subdivision 3 of 28 section 22 of the state finance law, paragraphs a, b, c, d and d-1 as 29 amended and paragraph e-1 as added by chapter 762 of the laws of 1992, 30 and paragraphs d-2 and e as amended by chapter 1 of the laws of 2007, 31 are amended to read as follows: 32 a. The appropriations, including reappropriations, made for the 33 current fiscal year, the appropriations and reappropriations recommended 34 for the ensuing fiscal year, the disbursements estimated to be made 35 before the close of the current fiscal year, and proposed to be made 36 during the ensuing fiscal year based upon available and recommended 37 appropriations and reappropriations, AND SHALL STATE SEPARATELY THE 38 AMOUNT, PROJECTED DISBURSEMENT LEVEL, PROGRAM, OBJECT AND PURPOSE OF 39 EACH ITEM OF APPROPRIATION, AS MODIFIED, AND WHERE THE APPROPRIATION IS 40 SUBJECT TO ALLOCATION BY MEANS OF (I) A MEMORANDUM OF UNDERSTANDING, 41 (II) AN INTERCHANGE WITH ANOTHER ITEM OF APPROPRIATION, (III) TRANSFER 42 OR SUBALLOCATION TO ANOTHER AGENCY, OR (IV) ANY OTHER METHOD OF ALLOCAT- 43 ING A LUMP SUM INTO SMALLER SUMS, SHALL STATE THE AMOUNT, PROGRAM, 44 OBJECT AND PURPOSE, INCLUDING EACH INTENDED RECIPIENT, STATED SEPARATE- 45 LY, OF EACH SMALLER SUM INTO WHICH SUCH ITEM OF APPROPRIATION MAY BE 46 ALLOCATED. Disbursements proposed to be made shall be shown in separate 47 parts as follows: those disbursements proposed to be made for state 48 purposes shall be set forth in one part, those disbursements proposed to 49 be made for local assistance shall be set forth in another separate and 50 distinct part, those disbursements proposed to be made for capital 51 projects shall be set forth in a third separate and distinct part and 52 those disbursements proposed to be made for debt service shall be set 53 forth in a fourth separate and distinct part. The effect of any proposed 54 changes in the payment dates of particular disbursements on the finan- 55 cial plan presented in accordance with subdivision one of this section 56 shall be set forth separately. A. 7906 4 1 b. In separate sections for each fund type, the receipts actually had 2 and received during the [preceding] PRIOR fiscal year, the receipts 3 estimated to be available and received during the current [and ensuing] 4 fiscal [years respectively] YEAR, AND THE RECEIPTS PROJECTED TO BE 5 AVAILABLE AND RECEIVED DURING THE ENSUING TWO FISCAL YEARS, listed by 6 each major source, including statistical and summary tables and a narra- 7 tive which includes a discussion of the assumptions used in estimating 8 OR PROJECTING such receipts. The effect of any proposed changes in the 9 rates, bases, payment dates or other aspects of particular sources of 10 receipts on the financial plan presented in accordance with subdivision 11 one of this section shall be set forth separately and the assumptions 12 used in calculating such effect. Whenever a new fee or a new financing 13 mechanism is proposed, a schedule of the new fee or financing mechanism 14 shall be included for purposes of showing the effect of the new fee or 15 financing mechanism on the financial plan. 16 c. The ACTUAL expenditures estimated to be made in accordance with 17 generally accepted accounting principles before the close of the current 18 fiscal year, and [proposed] THE EXPENDITURES PROJECTED to be made in 19 accordance with generally accepted accounting principles during the 20 ensuing TWO fiscal [year] YEARS. Expenditures estimated and proposed to 21 be made shall be shown in separate parts as follows: those expenditures 22 for state purposes shall be set forth in one part, those expenditures 23 for local assistance shall be set forth in another separate and distinct 24 part, those expenditures for capital projects shall be set forth in a 25 third separate and distinct part, and those expenditures for debt 26 service shall be set forth in a fourth separate and distinct part. 27 d. The revenues actually accrued in the [preceding] PRIOR fiscal year, 28 the revenues estimated OR PROJECTED to accrue during THE current and THE 29 ensuing TWO fiscal years, respectively. Revenues from each tax shall be 30 shown both in total and net of refunds. 31 d-1. [A schedule] SCHEDULES for [the general fund] EACH GOVERNMENTAL 32 FUND TYPE showing the differences between projected operating results on 33 a cash basis and those on the basis of generally accepted accounting 34 principles. 35 d-2. Within ten days following the submission of the financial plans 36 presented in accordance with subdivisions one and two of this section, 37 the director of the budget shall submit to the comptroller and the 38 chairs of the senate finance committee and the assembly ways and means 39 committee: 40 (i) a detailed schedule by fund of the receipts and disbursements 41 comprising such summary financial plan; 42 (ii) a schedule for each governmental fund type [other than the gener- 43 al fund] showing the differences between projected operating results on 44 a cash basis and those on the basis of generally accepted accounting 45 principles; 46 (iii) a detailed schedule by fund of revenues and expenditures within 47 the general fund; 48 (iv) a detailed schedule by fund of receipts for the prior, current 49 and next three fiscal years[. Such schedule shall present the major 50 revenue sources for each fund, including detail for each major tax, and 51 major components of miscellaneous receipts] SHOWN BY EACH MAJOR REVENUE 52 CATEGORY, INCLUDING EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART 53 OF MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE 54 REPORT SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO 55 SUBDIVISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE A. 7906 5 1 SOURCE WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL 2 RECEIPTS WITHIN EACH FUND TYPE; and 3 (v) an itemized list of transfers to and from [the general fund] EACH 4 GOVERNMENTAL FUND AND THE EFFECT OF SUCH TRANSFERS ON PROGRAMS AND 5 ACTIVITIES ASSOCIATED WITH THE FUNDS IN WHICH MONEY OR OTHER FINANCIAL 6 RESOURCES ARE TRANSFERRED TO OTHER FUNDS OR ACCOUNTS. 7 e. [The] FOR EACH FUND TYPE, THE anticipated [general fund] quarterly 8 schedule and fiscal year total for the prior, current and next ensuing 9 TWO fiscal years of: disbursements; receipts; repayments of advances; 10 total tax refunds; and refunds for the tax imposed under article twen- 11 ty-two of the tax law. Such information shall be presented in the same 12 form as the summary financial plans presented in accordance with subdi- 13 visions one and two of this section. A separate, detailed, report of 14 such schedule shall be provided with receipts shown by each major reven- 15 ue category, including [detail for each major tax and major components 16 of miscellaneous receipts, and with disbursements shown by major func- 17 tion or program] EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART OF 18 MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE REPORT 19 SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO SUBDI- 20 VISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE SOURCE 21 WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS 22 WITHIN EACH FUND TYPE AND WITH DISBURSEMENTS SHOWN BY MAJOR AGENCY OR 23 MAJOR SPENDING ITEM. The director of the division of the budget shall 24 submit concurrent with the submission of the financial plan to the 25 legislature pursuant to subdivision two of this section and with each 26 update thereafter [a revised monthly general fund cash flow projection 27 of receipts and disbursements for the current fiscal year that: (1) 28 compares actual results to (i) actual results through the same period 29 for the prior year and (ii) the most recent prior update to the finan- 30 cial plan and to the enacted budget financial plan; (2) summarizes the 31 reasons for any variances; and (3) describes the revisions to the cash 32 flow projections. The monthly general fund cash flow projection shall be 33 stated by major category of local assistance, personal service, nonper- 34 sonal service, general state charges, and debt service, and by major 35 category of revenue] A SCHEDULE OF ACTUAL AND PLANNED DISBURSEMENTS BY 36 MONTH AND BY FUND TYPE STATING SEPARATELY AND DISTINCTLY VARIANCES 37 BETWEEN ACTUAL AND PROJECTED FISCAL YEAR TO DATE DISBURSEMENTS AND 38 PROJECTED DISBURSEMENTS FOR THE REMAINING MONTHS OF THE FISCAL YEAR. 39 SUCH REPORT SHALL DOCUMENT ACTUAL AND PROJECTED STATE DISBURSEMENTS 40 INCLUSIVE OF, AND DISTINCTLY STATED BY CATEGORIES OF LOCAL ASSISTANCE 41 GRANTS INCLUDING GENERAL PURPOSE, EDUCATION, SOCIAL SERVICES, MEDICAID, 42 HEALTH AND ENVIRONMENT, MENTAL HYGIENE, TRANSPORTATION, CRIMINAL JUSTICE 43 AND MISCELLANEOUS; BY DEPARTMENTAL OPERATIONS INCLUDING PERSONAL 44 SERVICES AND NON-PERSONAL SERVICES; BY GENERAL STATE CHARGES; BY DEBT 45 SERVICE PAYMENTS AND OTHER FINANCING SOURCES AND USES. Such reports 46 shall utilize a format that shall facilitate comparison and analysis 47 with those reports submitted to the legislature by the office of audit 48 and control pursuant to subdivision nine of section eight of this chap- 49 ter. 50 e-1. Within ten days following the submission of the financial plans 51 presented in accordance with subdivisions one and two of this section, 52 the anticipated general fund monthly and governmental fund types quar- 53 terly schedule and fiscal year total for the CURRENT, AND TWO ensuing 54 fiscal [year] YEARS of: disbursements; receipts; repayments of 55 advances; total tax refunds; and refunds for the tax imposed under arti- 56 cle twenty-two of the tax law. Such information shall be presented in A. 7906 6 1 the same form as the summary financial plans presented in accordance 2 with subdivisions one and two of this section. 3 S 5. Subdivision 4 of section 22 of the state finance law, as amended 4 by chapter 1 of the laws of 2007, is amended to read as follows: 5 4. [a.] Include a three year financial projection showing the antic- 6 ipated disbursements and receipts for each of the governmental fund 7 types of the state. For the purposes of this three year financial 8 projection, disbursements shall be presented by the following purposes: 9 state purposes, local assistance, capital projects, debt service, trans- 10 fers and general state charges with each major function or major program 11 identified separately within each purpose; and receipts shall be 12 presented by each major revenue category, [including detail for each 13 major tax, and major components of miscellaneous receipts and with 14 disbursements shown by major function or program for the prior year, 15 current year and] EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART OF 16 MISCELLANEOUS RECEIPTS, IN A FORM SUITABLE FOR COMPARISON TO THE REPORT 17 SUBMITTED TO THE LEGISLATURE BY THE STATE COMPTROLLER PURSUANT TO SUBDI- 18 VISION NINE OF SECTION EIGHT OF THIS CHAPTER, AND EACH REVENUE SOURCE 19 WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS 20 WITHIN EACH FUND TYPE AND WITH DISBURSEMENTS SHOWN BY MAJOR AGENCY OR 21 MAJOR SPENDING ITEM FOR THE ENSUING AND EACH OF THE next three fiscal 22 years, and otherwise by each major source which is separately estimated 23 and presented pursuant to paragraph b of subdivision three of this 24 section. Receipts and disbursements for special revenue funds shall be 25 presented separately for federal funds and all other special revenue 26 funds IN ACCORDANCE WITH THE STATE COMPTROLLER'S CLASSIFICATION OF 27 FUNDS. Whenever receipts and disbursements are proposed to be moved to 28 a different fund type, each [significant] REVENUE SOURCE WHICH ACCOUNTS 29 FOR AT LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS WITHIN SUCH FUND 30 TYPE, THE amount so moved shall be explained. This three year financial 31 projection shall include an explanation of any changes to the financial 32 plans submitted in accordance with subdivision one of this section and 33 include explanations of the economic, statutory and other assumptions 34 used to estimate the disbursements and receipts which are presented. 35 Whenever the projections for receipts and disbursements are based on 36 assumptions other than the current levels of service, such assumptions 37 shall be separately identified and explained. The three year financial 38 projections shall include a description of any projected deficits or 39 surpluses IN THE GENERAL FUND OR OTHER STATE FUNDS WITH A DISCUSSION OF 40 THE CAUSES AND EFFECTS OF SUCH DEFICITS OR SURPLUSES AS WELL AS A 41 DESCRIPTION OF AVAILABLE OPTIONS TO REDUCE ANY PROJECTED DEFICITS OR 42 UTILIZE ANY PROJECTED SURPLUSES. 43 S 6. Section 22 of the state finance law is amended by adding a new 44 subdivision 4-a to read as follows: 45 4-A. WHENEVER A DEFICIT IS PROJECTED IN THE GENERAL FUND OR OTHER 46 STATE FUNDS IN THE FINANCIAL PLANS SUBMITTED PURSUANT TO THIS SECTION 47 ANNUALLY BY THE GOVERNOR TO THE LEGISLATURE FOR THE NEXT SUCCEEDING 48 FISCAL YEAR AND/OR FOR THE NEXT SUCCEEDING TWO FISCAL YEARS, IDENTIFY 49 SPECIFIC REVENUE OR SPENDING MEASURES TO ELIMINATE THE PROJECTED DEFI- 50 CITS. FOR THE SPECIFIC REVENUE OR SPENDING MEASURES THAT ARE IDENTIFIED, 51 INCLUDE A DETAILED EXPLANATION OF EACH MEASURE. THIS INFORMATION SHOULD 52 BE UPDATED IN EACH QUARTERLY FINANCIAL PLAN PURSUANT TO SUBDIVISION FOUR 53 OF SECTION TWENTY-THREE OF THIS ARTICLE AS WELL AS PERIODICALLY PURSU- 54 ANT TO MATERIAL CHANGES IN REVENUE AND SPENDING PROJECTIONS. 55 S 7. Section 22 of the state finance law is amended by adding two new 56 subdivisions 5-a and 5-b to read as follows: A. 7906 7 1 5-A. FOR EACH AGENCY OR PUBLIC AUTHORITY WHERE STATE APPROPRIATIONS 2 ARE PROVIDED, BY PROGRAM AND FUND, IDENTIFY: 3 (A) AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO MAINTAIN 4 CURRENT SERVICES; 5 (B) AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO SUPPORT 6 NEW PROGRAM INITIATIVES, OR POLICY CHANGES; 7 (C) ESTIMATED DISBURSEMENTS FOR EACH AMOUNT OF APPROPRIATION OR REAP- 8 PROPRIATION SEPARATELY IDENTIFIED IN PARAGRAPHS (A) AND (B) OF THIS 9 SUBDIVISION; AND 10 (D) ESTIMATED DISBURSEMENTS FOR CARRY-OVER SPENDING FOR EACH PROGRAM, 11 BY FUND. 12 5-B. INCLUDE SUMMARIES THAT READILY IDENTIFY DISBURSEMENTS, CARRY-OVER 13 SPENDING AND NEW SPENDING BY EACH AGENCY OR PUBLIC AUTHORITY WHERE STATE 14 APPROPRIATIONS ARE PROVIDED, PROGRAM AND FUND. SUCH SUMMARIES SHOULD BE 15 COMPLETED FOR STATE PURPOSES, LOCAL ASSISTANCE, CAPITAL PROJECTS, AND 16 GENERAL STATE CHARGES. 17 S 8. Subdivision 3 of section 23 of the state finance law, as amended 18 by chapter 1 of the laws of 2007, is amended to read as follows: 19 3. Financial plans and capital improvement program; revisions. UPON 20 THE DATE THE LEGISLATURE HAS FINALLY ACTED UPON THE APPROPRIATION BILL 21 OR BILLS SUBMITTED BY THE GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE 22 SEVEN OF THE STATE CONSTITUTION, THE GOVERNOR SHALL CAUSE TO BE SUBMIT- 23 TED TO THE LEGISLATURE AN OVERVIEW OF REVISIONS TO THE FINANCIAL PLAN 24 WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, A DESCRIPTION OF RECEIPTS 25 AND DISBURSEMENTS IN THE GENERAL FUND AND ALL GOVERNMENTAL FUNDS AS WELL 26 AS A GENERAL DESCRIPTION OF CHANGES IN REVENUE AND SPENDING PROJECTIONS 27 THAT OCCURRED BETWEEN THE GOVERNOR'S SUBMISSION AND ACTION BY THE LEGIS- 28 LATURE. IF A DEFICIT IS PROJECTED IN THE GENERAL FUND OR OTHER STATE 29 FUNDS IN THE NEXT SUCCEEDING FISCAL YEAR AND/OR FOR THE NEXT SUCCEEDING 30 TWO FISCAL YEARS IN THE FINANCIAL PLAN SUBMITTED AS REQUIRED IN THIS 31 SUBDIVISION, THE GOVERNOR SHALL IDENTIFY ALL INDIVIDUAL REVENUE OR 32 SPENDING MEASURES TO ELIMINATE THE PROJECTED DEFICIT THAT ACCOUNT FOR AT 33 LEAST ONE-HALF OF ONE PERCENT OF THE TOTAL PROJECTED DEFICIT. Not later 34 than thirty days after the legislature has completed action on the budg- 35 et bills submitted by the governor and the period for the governor's 36 review has elapsed, the governor shall cause to be submitted to the 37 legislature the revisions to the financial plans and the capital plan 38 required by subdivisions one, two, THREE, four [and], five, FIVE-A, AND 39 FIVE-B of section twenty-two of this article as are necessary to account 40 for all enactments affecting the financial plans and the capital plan. 41 The financial plan shall also contain a cash flow analysis of projected 42 receipts and disbursements and other financing sources or uses for each 43 month of the state's fiscal year. Notwithstanding any other law to the 44 contrary, such revised plans and accompanying cash flow analysis shall 45 be submitted to the legislature and the comptroller in the same form as 46 the plans required by such subdivisions. 47 S 9. Section 23 of the state finance law is amended by adding a new 48 subdivision 3-a to read as follows: 49 3-A. IDENTIFICATION OF PROJECTS. FOR EACH AGENCY OR STATE AUTHORITY 50 WHERE STATE APPROPRIATIONS ARE PROVIDED, IDENTIFY THE NEW PROJECTS, 51 INITIATIVES OR POLICY CHANGES PROPOSED IN THE BUDGET BILLS SUBMITTED 52 ANNUALLY BY THE GOVERNOR TO THE LEGISLATURE IN ACCORDANCE WITH ARTICLE 53 SEVEN OF THE CONSTITUTION. COMPARE SUCH PROJECTS, INITIATIVES OR POLICY 54 CHANGES WITH THE NEW PROJECTS, INITIATIVES AND POLICY CHANGES INCLUDED 55 IN THE BUDGET AFTER THE LEGISLATURE HAS COMPLETED ACTIONS ON THE BUDGET A. 7906 8 1 BILLS SUBMITTED BY THE GOVERNOR. INCLUDE FOR EACH ITEM SUCH DETAIL AS 2 PROGRAM, FUND AND DISBURSEMENT IMPACT. 3 S 10. Paragraphs (b) and (c) of subdivision 6 of section 23 of the 4 state finance law, paragraph (b) as amended and paragraph (c) as added 5 by chapter 1 of the laws of 2007, are amended to read as follows: 6 (b) On or before March first in each year, the director of the budget 7 and the secretary of the senate finance committee and the secretary of 8 the assembly ways and means committee shall issue a joint report 9 containing a consensus forecast of the economy and SPECIFIC BINDING 10 estimates of receipts ANY AND ALL OTHER AVAILABLE RESOURCES USED TO 11 SUPPORT DISBURSEMENTS for the current and the ensuing state fiscal year. 12 Such estimates [of receipts] shall include, but not be limited to: 13 expected tax receipts on an all-funds basis, projected lottery receipts, 14 [and] anticipated miscellaneous receipts [to be received in the general 15 fund] AND OTHER FINANCING SOURCES INCLUDING, BUT NOT LIMITED TO, RE-ES- 16 TIMATES THAT WOULD LOWER CURRENT PROJECTED DISBURSEMENTS AS WELL AS 17 OTHER RESOURCES THAT WOULD BE USED TO SUPPORT DISBURSEMENTS. The esti- 18 mate of receipts for the ensuing fiscal year contained in the report, 19 shall be all receipts from such sources described in this subdivision 20 available to make disbursements authorized by the appropriation bills 21 submitted by the governor pursuant to section three of article seven of 22 the constitution for the ensuing fiscal year. THE COMPTROLLER SHALL 23 COMMENT ON THE REASONABLENESS AND RELIABILITY OF THE CONSENSUS FORECAST. 24 (c) On a failure of the director of the budget, the secretary of the 25 senate finance committee and the secretary of the assembly ways and 26 means committee to issue a joint report containing a consensus forecast 27 as provided in paragraph (b) of this subdivision, the state comptroller 28 shall, on or before March fifth, provide BINDING estimates of receipts 29 AND OTHER RESOURCES for the current and the ensuing state fiscal year. 30 Such estimates shall include, but not be limited to, expected tax 31 receipts on an all-funds basis, projected lottery receipts, [and] 32 miscellaneous receipts [to be received in the general fund] AND OTHER 33 FINANCING SOURCES INCLUDING RE-ESTIMATES THAT WOULD LOWER CURRENT 34 PROJECTED DISBURSEMENTS AS WELL AS OTHER RESOURCES THAT WOULD BE USED TO 35 SUPPORT DISBURSEMENTS. In rendering his or her estimate, as required in 36 this paragraph, the comptroller shall give due consideration to the 37 inherent risks in economic and revenue forecasting and the interest of 38 the state to maintain budget balance throughout the fiscal year. The 39 estimate of receipts for the ensuing fiscal year provided by the state 40 comptroller, shall be all receipts AND OTHER RESOURCES from such sources 41 available to make disbursements authorized by the appropriation bills 42 submitted by the governor pursuant to section three of article seven of 43 the constitution for the ensuing fiscal year. 44 S 11. The opening paragraph of subdivision 1 of section 24 of the 45 state finance law, as amended by chapter 1 of the laws of 2007, is 46 amended to read as follows: 47 The budget submitted annually by the governor shall be simultaneously 48 accompanied by a bill or bills for all proposed appropriations and reap- 49 propriations and for the proposed measures of taxation or other legis- 50 lation, if any, recommended therein. Such bills shall be submitted by 51 the governor and shall be known as budget bills. ON OR AFTER JANUARY 52 FIRST, TWO THOUSAND TWELVE, NO BUDGET BILL SUBMITTED BY THE GOVERNOR MAY 53 INCLUDE ANY PROPOSED APPROPRIATION OR REAPPROPRIATION FOR ANY PROGRAM 54 WHICH IS NOT INCLUDED IN THE FINANCIAL PLAN PRESENTED AS PART OF THE 55 BUDGET SUBMITTED PURSUANT TO SECTION TWENTY-TWO OF THIS ARTICLE. EACH 56 PROPOSED APPROPRIATION OR REAPPROPRIATION FOR A PROGRAM SHALL BEAR THE A. 7906 9 1 FINANCIAL PLAN PROGRAM REFERENCE NUMBER OR NUMBERS TO WHICH IT SHALL 2 PERTAIN, AND SHALL BE CLASSIFIED INTO THE SAME CATEGORY AS THE ASSOCI- 3 ATED PROGRAM OR PROGRAMS HAVE BEEN CLASSIFIED IN SUCH FINANCIAL PLAN. 4 S 12. Subdivision 1 of section 54-a of the legislative law, as added 5 by chapter 1 of the laws of 2007, is amended to read as follows: 6 1. establishing a joint budget conference committee or joint budget 7 conference committees within ten days following the submission of the 8 budget by the governor pursuant to article seven of the constitution, to 9 consider and reconcile such budget resolution or budget bills as may be 10 passed by each house. SUCH JOINT BUDGET CONFERENCE COMMITTEE OR JOINT 11 BUDGET CONFERENCE COMMITTEES SHALL BE REQUIRED TO MEET AND ANY MEETING 12 OF THE JOINT BUDGET CONFERENCE COMMITTEE OR JOINT BUDGET CONFERENCE 13 COMMITTEES SHALL BE HELD IN PUBLIC; and 14 S 13. Subdivisions 1 and 2 of section 92-cc of the state finance law, 15 as added by chapter 1 of the laws of 2007, are amended to read as 16 follows: 17 1. A. There is hereby established in the state treasury a fund to be 18 known as the "rainy day reserve fund". Such fund shall consist of moneys 19 deposited therein and monies shall be withdrawn from such fund only for 20 the purposes as provided therein. 21 B. FOR THE PURPOSES OF THIS SUBDIVISION, "CASH SURPLUS" SHALL MEAN THE 22 AMOUNT BY WHICH GENERAL FUND RECEIPTS EXCEED GENERAL FUND EXPENDITURES 23 IN SUCH FISCAL YEAR. 24 C. AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS 25 REMAINING IN THE GENERAL FUND AFTER THE TRANSFER PURSUANT TO SECTION 26 NINETY-TWO OF THIS ARTICLE SHALL BE DEPOSITED TO THE RAINY DAY FUND AS 27 ESTABLISHED IN THIS SECTION UNTIL THE FUND REACHES THE MAXIMUM BALANCE. 28 2. Such fund shall have a maximum balance not to exceed [three] FIVE 29 per centum of the aggregate amount projected to be disbursed from the 30 general fund during the fiscal year immediately following the then-cur- 31 rent fiscal year. 32 S 14. Paragraph (a) of subdivision 2 of section 54 of the legislative 33 law, as added by chapter 1 of the laws of 2007, is amended to read as 34 follows: 35 (a) The legislature shall enact a budget for the upcoming fiscal year 36 that it determines is balanced in the general fund AND CONFORMS WITH THE 37 BINDING CONSENSUS FORECAST OF THE ECONOMY AND AVAILABLE RESOURCES 38 REQUIRED BY SUBDIVISION SIX OF SECTION TWENTY-THREE OF THE STATE FINANCE 39 LAW. 40 S 15. This act shall take effect immediately. 41 PART B 42 Section 1. The state finance law is amended by adding a new article 17 43 to read as follows: 44 ARTICLE 17 45 NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL 46 SECTION 250. DEFINITIONS. 47 251. NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL; 48 CREATION; PROCEDURE. 49 252. POWERS AND DUTIES. 50 S 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS 51 SHALL HAVE THE FOLLOWING MEANINGS: 52 1. "CAPITAL ASSETS" SHALL MEAN FIXED ASSETS AND INFRASTRUCTURE ASSETS, 53 INCLUDING, BUT NOT LIMITED TO, LAND, BUILDINGS, EQUIPMENT, ROADS, AND 54 BRIDGES OF THE STATE, A STATE AGENCY OR STATE AUTHORITY, AND SHALL ALSO A. 7906 10 1 INCLUDE THE CAPITAL ASSETS OF A LOCAL AUTHORITY OR A MUNICIPAL CORPO- 2 RATION SIGNIFICANTLY FUNDED BY STATE MONIES. 3 2. "COUNCIL" SHALL MEAN THE NEW YORK STATE CAPITAL 4 ASSET/INFRASTRUCTURE COUNCIL ESTABLISHED PURSUANT TO SECTION TWO HUNDRED 5 FIFTY-ONE OF THIS ARTICLE. 6 3. "CONSTRUCTION" SHALL MEAN THE ERECTION, ACQUISITION, ALTERATION, 7 RECONSTRUCTION, REHABILITATION, IMPROVEMENT, EQUIPPING, ENLARGEMENT OR 8 EXTENSION OF A CAPITAL ASSET, INCLUDING LAND ACQUISITION AND THE ENGI- 9 NEERING, ARCHITECTURAL, LEGAL, FISCAL AND ECONOMIC INVESTIGATIONS, 10 STUDIES, SURVEYS, DESIGNS, PLANS, DRAWINGS, SPECIFICATIONS, PROCEDURES 11 AND OTHER ACTIONS RELATING TO A CAPITAL ASSET. 12 4. "LOCAL AUTHORITY" SHALL MEAN: 13 (A) A PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION CREATED BY OR 14 EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW OF THE STATE WHOSE MEMBERS 15 DO NOT HOLD A CIVIL OFFICE OF THE STATE, ARE NOT APPOINTED BY THE GOVER- 16 NOR OR ARE APPOINTED BY THE GOVERNOR SPECIFICALLY UPON THE RECOMMENDA- 17 TION OF THE LOCAL GOVERNMENT OR GOVERNMENTS; 18 (B) A NOT-FOR-PROFIT CORPORATION AFFILIATED WITH, SPONSORED BY, OR 19 CREATED BY A COUNTY, CITY, TOWN OR VILLAGE GOVERNMENT; 20 (C) A LOCAL INDUSTRIAL DEVELOPMENT AGENCY OR AUTHORITY OR OTHER LOCAL 21 PUBLIC BENEFIT CORPORATION; OR 22 (D) AN AFFILIATE OF SUCH LOCAL AUTHORITY. 23 5. "STATE AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR PUBLIC BENEFIT 24 CORPORATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW 25 OF THE STATE, WITH ONE OR MORE OF ITS MEMBERS APPOINTED BY THE GOVERNOR 26 OR WHO SERVE AS MEMBERS BY VIRTUE OF HOLDING A CIVIL OFFICE OF THE 27 STATE, OTHER THAN AN INTERSTATE OR INTERNATIONAL AUTHORITY OR PUBLIC 28 BENEFIT CORPORATION, INCLUDING SUBSIDIARIES OF SUCH PUBLIC AUTHORITY OR 29 PUBLIC BENEFIT CORPORATION. 30 6. "MAINTENANCE" SHALL MEAN ANY REGULARLY SCHEDULED ACTIVITY INCLUDING 31 A ROUTINE REPAIR INTENDED TO ENSURE THAT CAPITAL ASSETS CONTINUE TO 32 OPERATE SAFELY AND EFFICIENTLY AND AS INTENDED. 33 6-A. "MUNICIPAL CORPORATION" SHALL MEAN A COUNTY, CITY, TOWN OR 34 VILLAGE AND SHALL INCLUDE ANY SPECIAL DISTRICT THEREIN. 35 7. "REHABILITATION" SHALL MEAN AN ACTION TO EXTEND THE USEFUL LIFE OR 36 IMPROVE THE EFFECTIVENESS OF EXISTING CAPITAL ASSETS. 37 S 251. NEW YORK STATE CAPITAL ASSET/INFRASTRUCTURE COUNCIL; CREATION; 38 PROCEDURE. 1. WITHIN THE EXECUTIVE DEPARTMENT THERE IS HEREBY ESTAB- 39 LISHED AN INDEPENDENT COUNCIL TO BE KNOWN AS THE NEW YORK STATE CAPITAL 40 ASSET/INFRASTRUCTURE COUNCIL TO HAVE AND EXERCISE THE POWERS AND DUTIES 41 PROVIDED BY THE PROVISIONS OF THIS ARTICLE. 42 2. THE PURPOSE OF THE COUNCIL IS TO DEVELOP AND IMPLEMENT A PROCESS TO 43 IDENTIFY, MONITOR, PLAN, RECOMMEND, AND PUBLICLY REPORT ON ALL CAPITAL 44 ASSETS OF STATE AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND 45 MUNICIPAL CORPORATIONS TO ENSURE THAT THE CAPITAL ASSETS MEET CURRENT 46 AND FUTURE DEMAND, FACILITATE ECONOMIC GROWTH, ARE MAINTAINED IN A GOOD 47 OPERATING CONDITION THAT ENSURES PUBLIC SAFETY, AND ARE DEVELOPED OR 48 MODIFIED IN A SUSTAINABLE MANNER AS PROVIDED BY THE PROVISIONS OF THIS 49 ARTICLE. 50 3. THE COUNCIL SHALL CONSIST OF FIVE MEMBERS APPOINTED BY THE GOVER- 51 NOR, ONE OF WHOM SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE 52 TEMPORARY PRESIDENT OF THE SENATE, ONE OF WHOM SHALL BE APPOINTED UPON 53 THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY, AND ONE OF WHOM SHALL 54 BE APPOINTED UPON THE RECOMMENDATION OF THE COMPTROLLER. EACH MEMBER OF 55 THE COUNCIL SHALL HAVE EXPERIENCE IN ONE OR MORE OF THE FIELDS OF 56 ECONOMICS, PUBLIC ADMINISTRATION, CIVIL ENGINEERING, PUBLIC WORKS, A. 7906 11 1 CONSTRUCTION OR A RELATED DESIGN PROFESSION, PLANNING, PUBLIC INVESTMENT 2 FINANCING, ENVIRONMENTAL ENGINEERING OR WATER RESOURCES ENGINEERING. 3 THE TWO MEMBERS FIRST APPOINTED BY THE GOVERNOR WITHOUT THE RECOMMENDA- 4 TION OF ANY OTHER STATE OFFICIAL SHALL SERVE AN INITIAL TERM OF FOUR 5 YEARS; THE MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF THE TEMPO- 6 RARY PRESIDENT OF THE SENATE SHALL SERVE AN INITIAL TERM OF THREE YEARS; 7 THE MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF THE SPEAKER OF THE 8 ASSEMBLY SHALL SERVE AN INITIAL TERM OF THREE YEARS; AND THE MEMBER 9 FIRST APPOINTED UPON THE RECOMMENDATION OF THE STATE COMPTROLLER SHALL 10 SERVE AN INITIAL TERM OF TWO YEARS. UPON EXPIRATION OF A MEMBER'S 11 INITIAL TERM, EACH SUBSEQUENT TERM SHALL BE FOR A PERIOD OF FOUR YEARS. 12 4. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, NO OFFICER OR 13 EMPLOYEE OF THE STATE, OF ANY POLITICAL SUBDIVISION OF THE STATE, OF ANY 14 GOVERNMENTAL ENTITY OPERATING ANY PUBLIC SCHOOL OR COLLEGE, OR OF ANY 15 OTHER PUBLIC AGENCY OR INSTRUMENTALITY OR UNIT OF GOVERNMENT WHICH EXER- 16 CISES GOVERNMENTAL POWERS UNDER THE LAWS OF THE STATE, SHALL FORFEIT 17 SUCH OFFICE OR EMPLOYMENT BY REASON OF ACCEPTANCE OR APPOINTMENT AS A 18 MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT OF THE COUNCIL NOR 19 SHALL SERVICE AS SUCH MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT 20 OF THE COUNCIL BE DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR 21 EMPLOYMENT. THE MEMBERS, THEIR REPRESENTATIVES, OFFICERS AND STAFF TO 22 THE COUNCIL SHALL BE DEEMED EMPLOYEES WITHIN THE MEANING OF SECTION 23 SEVENTEEN OF THE PUBLIC OFFICERS LAW. 24 5. THE MEMBERS OF THE COUNCIL SHALL SERVE WITHOUT SALARY OR PER DIEM 25 ALLOWANCE BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECES- 26 SARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES 27 PURSUANT TO THIS ARTICLE OR OTHER PROVISION OF LAW; PROVIDED, HOWEVER, 28 THAT SUCH MEMBERS AND REPRESENTATIVES ARE NOT, AT THE TIME SUCH EXPENSES 29 ARE INCURRED, PUBLIC EMPLOYEES OTHERWISE ENTITLED TO SUCH REIMBURSEMENT. 30 S 252. POWERS AND DUTIES. 1. THE COUNCIL SHALL HAVE THE POWER TO: 31 (A) HOLD SUCH HEARINGS, MEET AND ACT AT SUCH TIMES AND PLACES, TAKE 32 SUCH TESTIMONY, ADMINISTER SUCH OATHS OR AFFIRMATIONS AND RECEIVE SUCH 33 EVIDENCE AS THE COUNCIL CONSIDERS ADVISABLE TO CARRY OUT ITS RESPONSI- 34 BILITIES; 35 (B) REQUIRE THE PRODUCTION OF ANY BOOKS, AND COLLECTION AND COMPILA- 36 TION OF DATA DEEMED RELEVANT OR MATERIAL TO ANY REVIEW; 37 (C) REQUEST AND RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD, COMMIS- 38 SION OR OTHER AGENCY OF THE STATE, INCLUDING ANY STATE AUTHORITIES, 39 LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS IN WHICH ANY RELEVANT 40 INFORMATION NECESSARY TO CARRY OUT THE RESPONSIBILITIES AND PROVISIONS 41 SET FORTH IN THIS SECTION; 42 (D) ENTER INTO COOPERATIVE AGREEMENTS WITH OTHER GOVERNMENT OFFICES, 43 STATE AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL 44 CORPORATIONS TO EFFICIENTLY SUPPORT THE WORK OF THE COUNCIL AND CARRY 45 OUT ITS RESPONSIBILITIES; 46 (E) HAVE DIRECT INPUT AND PROMPT ACCESS TO THE HEAD OF ANY STATE AGEN- 47 CIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS 48 AND ANY MEMBER AND EMPLOYEE THEREOF WHEN NECESSARY OR USEFUL IN THE 49 PERFORMANCE OF THE DUTIES OR RESPONSIBILITIES OF THE COUNCIL; 50 (F) ISSUE SUCH REPORTS AND OTHER DOCUMENTS AS THE COUNCIL DETERMINES 51 TO BE NECESSARY OR ADVISABLE; AND 52 (G) ADVISE AND MAKE RECOMMENDATIONS TO THE GOVERNOR, THE LEGISLATURE, 53 THE COMPTROLLER, AND OTHER AGENCIES, STATE AUTHORITIES, LOCAL AUTHORI- 54 TIES AND MUNICIPAL CORPORATIONS OF THE STATE ON MATTERS LIMITED TO 55 AFFECTING THE CONDITION OF THE CAPITAL ASSETS WITHIN THE STATE. A. 7906 12 1 2. THE COUNCIL SHALL IDENTIFY THE CAPITAL ASSETS LOCATED WITHIN THE 2 STATE ON A PERIODIC BASIS AND ASSESS THE CONDITION OF THE ASSETS BY: 3 (A) DEVELOPING UNIFORM CRITERIA AND PROCEDURES FOR USE IN CONDUCTING 4 INVENTORIES AND ASSESSMENTS, INCLUDING FORMAL STANDARDS DEFINING A STATE 5 OF GOOD REPAIR AND REPLACEMENT CYCLES FOR CAPITAL ASSETS, AND STANDARDS 6 REQUIRING CLEAR JUSTIFICATION IN TERMS OF RIGOROUS ECONOMIC ANALYSIS FOR 7 PROPOSED NEW CAPITAL INVESTMENTS OR EXPANSIONS; 8 (B) INVENTORYING ALL EXISTING CAPITAL ASSETS USING TO THE EXTENT PRAC- 9 TICABLE, EXISTING INVENTORIES AVAILABLE FROM ALL SOURCES; WHERE EXISTING 10 INVENTORIES ARE NOT AVAILABLE, A PROCESS FOR STATE AGENCIES, STATE 11 AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS TO INVENTORY 12 ALL EXISTING CAPITAL ASSETS WILL BE DEVELOPED SUBJECT TO APPROVAL OF THE 13 COUNCIL; AND 14 (C) ASSESSING THE CONDITION OF CAPITAL ASSETS, INCLUDING BUT NOT 15 LIMITED TO CHANGES IN THE CONDITION OF THOSE CAPITAL ASSETS AS COMPARED 16 WITH PRECEDING YEARS AND IDENTIFICATION OF NEEDED IMPROVEMENTS. 17 3. THE COUNCIL SHALL DEVELOP RECOMMENDATIONS BASED ON COMPREHENSIVE 18 STUDIES AND ASSESSMENTS UNDERTAKEN PURSUANT TO SUBDIVISION TWO OF THIS 19 SECTION, AND SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVER- 20 NOR, THE LEGISLATURE AND THE COMPTROLLER NOT LATER THAN JUNE FIFTEENTH, 21 TWO THOUSAND TWELVE, AND ANNUALLY THEREAFTER, AND SHALL POST SUCH 22 REPORTS ON THE INTERNET. THE RECOMMENDATIONS OF THE COUNCIL SHALL 23 INCLUDE: 24 (A) PROPOSED IMPROVEMENTS IN PRIORITIZING THE PLANNING AND FUNDING OF 25 CAPITAL ASSET INVESTMENTS INCLUDING MORE EFFICIENT MATCHING OF FUNDING 26 SOURCES AND ASSET LIFE; 27 (B) IMPROVED PROCEDURES FOR ENSURING THAT STATE AGENCIES, STATE 28 AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS REPLACE ASSETS 29 ON REGULAR REPLACEMENT SCHEDULES ACCORDING TO RELIABLE ESTIMATES OF 30 THEIR USEFUL LIVES; AND 31 (C) IMPROVEMENTS IN CRITERIA AND PROCEDURES THAT MAY BE USED BY STATE 32 AGENCIES, STATE AUTHORITIES, LOCAL AUTHORITIES AND MUNICIPAL CORPO- 33 RATIONS IN: 34 (I) DETERMINING THE CAPACITY OF CAPITAL ASSETS TO SUSTAIN CURRENT AND 35 ANTICIPATED ECONOMIC DEVELOPMENT AND COMPETITIVENESS, INCLUDING 36 LONG-TERM ECONOMIC GROWTH, INCLUDING THE POTENTIAL RETURN ON INVESTMENTS 37 IN NEW CAPITAL ASSETS AS OPPOSED TO INVESTMENTS IN EXISTING CAPITAL 38 ASSETS; 39 (II) MAINTAINING DATA IN A FORM THAT IS READILY ACCESSIBLE TO THE 40 PUBLIC; 41 (III) THE METHODS USED TO FINANCE THE CONSTRUCTION, ACQUISITION, REHA- 42 BILITATION AND MAINTENANCE OF CAPITAL ASSETS; 43 (IV) ANY TRENDS OR INNOVATIONS IN METHODS USED TO FINANCE THE 44 CONSTRUCTION, ACQUISITION, REHABILITATION AND MAINTENANCE OF CAPITAL 45 ASSETS; 46 (V) COMPREHENSIVE INVESTMENT REQUIREMENTS, BY TYPE OF CAPITAL ASSET, 47 THAT ARE NECESSARY TO MAINTAIN THE CURRENT CONDITION AND PERFORMANCE OF 48 THE CAPITAL ASSETS AND THE INVESTMENT NEEDED TO IMPROVE CAPITAL ASSETS 49 IN THE FUTURE; 50 (VI) TRENDS OR INNOVATIONS IN CAPITAL ASSET PROCUREMENT METHODS; 51 (VII) TRENDS OR INNOVATIONS IN CONSTRUCTION METHODS OR MATERIALS FOR 52 CAPITAL ASSETS; 53 (VIII) THE IMPACT OF LOCAL DEVELOPMENT PATTERNS ON DEMAND FOR FUNDING 54 OF CAPITAL ASSETS; 55 (IX) THE IMPACT OF DEFERRED MAINTENANCE; AND 56 (X) THE IMPACT OF DETERIORATED CAPITAL ASSETS. A. 7906 13 1 4. THE COUNCIL SHALL REPORT UPDATED FINDINGS AND RECOMMENDATIONS IN A 2 MANNER CONSISTENT WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS 3 SECTION, TO BE KNOWN AS THE "COMPREHENSIVE STATEWIDE CAPITAL NEEDS 4 ASSESSMENT". SUCH REPORTS SHALL BE ISSUED NOT LATER THAN THE LAST DAY OF 5 THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE REPORT REQUIRED BY 6 SUBDIVISION THREE OF THIS SECTION IS ISSUED AND, THEREAFTER, ON AN ANNU- 7 AL BASIS. 8 5. (A) THE COUNCIL SHALL ISSUE A COMPREHENSIVE TWENTY YEAR STRATEGIC 9 PLAN FOR CAPITAL NEEDS ENCOMPASSING NECESSARY MAINTENANCE ACTIVITIES, 10 SCHEDULED ASSET REPLACEMENT AND EXPANSION, THE STATUS OF CURRENT CAPITAL 11 ACTIVITIES, AND RELATED FINANCING. THE LONG-TERM STRATEGIC PLAN SHALL BE 12 DEVELOPED BASED ON THE CAPITAL PROJECTS IDENTIFIED IN THE COMPREHENSIVE 13 STATEWIDE CAPITAL NEEDS ASSESSMENT AND FUTURE CAPITAL PROJECT NEEDS OF 14 THE STATE, WITH CLEAR INTERIM GOALS AND BENCHMARKS. 15 (B) THE FIRST TEN-YEAR PORTION OF SUCH PLAN SHALL BE SET FORTH IN 16 GREATER DETAIL THAN THE SECOND TEN YEAR PORTION OF THE PLAN. 17 (C) THE LONG-TERM STRATEGIC PLAN SHALL BE UPDATED AND REVISED EVERY 18 EVEN-NUMBERED YEAR, AND ISSUED SIMULTANEOUSLY WITH THE COMPREHENSIVE 19 STATEWIDE CAPITAL NEEDS ASSESSMENT OF THAT YEAR. 20 S 2. The opening paragraph of section 22-c of the state finance law, 21 as amended by section 3 of part F of chapter 389 of the laws of 1997, is 22 amended to read as follows: 23 The governor shall annually submit to the legislature a capital 24 program and financing plan concurrent with the executive budget, in 25 addition to the information required by section twenty-two of this arti- 26 cle. THE PLAN, ALONG WITH CAPITAL APPROPRIATIONS PROPOSED IN THE EXECU- 27 TIVE BUDGET OR ENACTED BY THE LEGISLATURE, SHALL DERIVE FROM THE 28 LONG-TERM STRATEGIC PLAN ESTABLISHED BY SUBDIVISION FIVE OF SECTION TWO 29 HUNDRED FIFTY-TWO OF THIS CHAPTER. ANY DEVIATION FROM THE LONG-TERM 30 STRATEGIC PLAN MUST BE JUSTIFIED. The plan shall contain a comprehensive 31 assessment of the capital assets and program needs of all state agen- 32 cies, a review and analysis of how such requirements would be financed, 33 an analysis of the affordability of state-supported debt, and an analy- 34 sis of all costs related to the financing of such plan. 35 S 3. This act shall take effect immediately. 36 PART C 37 Section 1. Article 5-B of the state finance law is REPEALED and a new 38 article 5-B is added to read as follows: 39 ARTICLE 5-B 40 LIMITATIONS ON STATE-FUNDED DEBT 41 SECTION 67-A. DEFINITIONS. 42 67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT. 43 67-B-1. LIMITATIONS ON THE ISSUANCE OF STATE-SUPPORTED DEBT. 44 67-C. LIMITATIONS ON STATE-FUNDED DEBT. 45 67-D. PROHIBITION OF CONTINGENT OBLIGATION DEBT. 46 S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE AND ARTICLE FIVE-C OF 47 THIS CHAPTER THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 48 1. "STATE DEBT" SHALL MEAN ALL BONDS, BOND ANTICIPATION NOTES, AND 49 REVENUE DEBT ISSUED BY THE COMPTROLLER PURSUANT TO ARTICLE FIVE OF THIS 50 CHAPTER. 51 2. "STATE-BACKED DEBT" SHALL MEAN ANY DEBT OR OBLIGATION, OTHER THAN 52 STATE DEBT, THAT IS SUPPORTED IN WHOLE OR IN PART BY ANY FINANCING 53 ARRANGEMENT WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED, WHETHER 54 BY LAW, CONTRACT OR OTHERWISE, TO MAKE PAYMENTS WHICH WILL BE USED, A. 7906 14 1 DIRECTLY OR INDIRECTLY, FOR THE PAYMENT OF PRINCIPAL, INTEREST OR 2 RELATED PAYMENTS ON INDEBTEDNESS INCURRED OR CONTRACTED BY THE STATE 3 ITSELF FOR ANY PURPOSE, OR BY ANY STATE AGENCY, MUNICIPALITY, INDIVID- 4 UAL, PUBLIC AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY 5 OTHER ENTITY FOR STATE CAPITAL OR OPERATING PURPOSES OR TO FINANCE 6 GRANTS, LOANS OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY OR ON 7 BEHALF OF THE STATE FOR ANY PURPOSE. IF THE STATE AGREES OR HAS AGREED 8 ON OR AFTER APRIL FIRST, NINETEEN HUNDRED NINETY-SEVEN TO MAKE FUTURE 9 REVENUES FROM A SPECIFIC STATE SOURCE AVAILABLE FOR THE PURPOSE OF 10 SUPPORTING DEBT OF ANY MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR 11 OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, OR, IF ON OR 12 AFTER SUCH DATE, A PROGRAM OF DEBT IS AUTHORIZED TO BE ISSUED WHERE 13 STATE AID IS INTENDED TO BE THE SOLE SOURCE OF PAYMENT OF DEBT SERVICE, 14 SUCH DEBT SHALL BE CONSIDERED TO BE A DEBT FOR THE PURPOSE OF FINANCING 15 A STATE GRANT, LOAN OR OTHER ASSISTANCE PAYMENT AND SHALL BE A 16 "STATE-BACKED DEBT" FOR THE PURPOSES OF THIS ARTICLE. THE TERM 17 "STATE-BACKED DEBT" APPLIES TO ALL DEBT OR OBLIGATIONS DESCRIBED IN THIS 18 SUBDIVISION FOR WHICH THE STATE AGREES, OR HAS IN THE PAST AGREED, TO 19 MAKE PAYMENTS (A) WHETHER OR NOT THE OBLIGATION OF THE STATE TO MAKE 20 PAYMENTS IS SUBJECT TO APPROPRIATION, OR (B) WHETHER OR NOT DEBT SERVICE 21 IS TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY THE STATE TO ANOTHER 22 PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS. 23 3. "STATE-FUNDED DEBT" SHALL MEAN THE COMBINED TOTAL OF ALL STATE 24 DEBT, AS DEFINED IN SUBDIVISION ONE OF THIS SECTION, AND ALL 25 STATE-BACKED DEBT EXCEPT SHORT TERM DEBT INCURRED IN ACCORDANCE WITH 26 SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT 27 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI- 28 TUTION, AND REFUNDING DEBT INCURRED IN ACCORDANCE WITH SECTION THIRTEEN 29 OF ARTICLE SEVEN OF THE CONSTITUTION AND SHALL INCLUDE ALL DEBT 30 OUTSTANDING ON THE EFFECTIVE DATE OF THIS SECTION. 31 4. "STATE-SUPPORTED DEBT" SHALL MEAN ANY BONDS OR NOTES, INCLUDING 32 BONDS OR NOTES ISSUED TO FUND RESERVE FUNDS AND COSTS OF ISSUANCE, 33 ISSUED BY THE STATE OR A STATE PUBLIC CORPORATION FOR WHICH THE STATE IS 34 CONSTITUTIONALLY OBLIGATED TO PAY DEBT SERVICE OR IS CONTRACTUALLY OBLI- 35 GATED TO PAY DEBT SERVICE SUBJECT TO AN APPROPRIATION, EXCEPT WHERE THE 36 STATE HAS A CONTINGENT CONTRACTUAL OBLIGATION. 37 5. "REVENUE DEBT" SHALL MEAN VOTER APPROVED STATE DEBT ISSUED BY THE 38 COMPTROLLER AND SUPPORTED BY FUTURE REVENUES FROM A SPECIFIC STATE 39 SOURCE. 40 6. "TOTAL PERSONAL INCOME OF THE STATE" SHALL MEAN THE MOST RECENTLY 41 PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF 42 THE STATE OF NEW YORK BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY 43 SUCCESSOR AGENCY FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS 44 FOR WHICH INFORMATION IS AVAILABLE PRIOR TO OCTOBER THIRTY-FIRST OF EACH 45 YEAR. SUBSEQUENT REVISIONS OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT FOR 46 SUCH CALENDAR QUARTERS SHALL NOT AFFECT THE VALIDITY OF THE DETERMI- 47 NATION MADE FOR ANY FISCAL YEAR. 48 7. "CAPITAL PURPOSE" SHALL MEAN ANY PROJECT INVOLVING: 49 (A) THE ACQUISITION, CONSTRUCTION, DEMOLITION OR REPLACEMENT OF A 50 FIXED ASSET OR ASSETS; 51 (B) THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY 52 EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS CAPACI- 53 TY; OR 54 (C) THE PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI- 55 TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, INCLUD- 56 ING THE PREPARATION AND REVIEW OF PLANS AND SPECIFICATIONS INCLUDING A. 7906 15 1 ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND SUB-SURFACE INVESTI- 2 GATIONS INCIDENTAL THERETO. 3 8. "CONDUIT DEBT OBLIGATION" SHALL MEAN A DEBT OBLIGATION ISSUED BY A 4 PUBLIC AUTHORITY (THE "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY (THE 5 "CONDUIT BORROWER") OTHER THAN THE STATE OR A POLITICAL SUBDIVISION OF 6 THE STATE, WHERE PAYMENT OF THE OBLIGATION IS TO BE MADE FROM FUNDS OF 7 THE CONDUIT BORROWER, THE SECURITY FOR THE OBLIGATION IS THE CREDIT OF 8 THE CONDUIT BORROWER AND NO FUNDS OF THE CONDUIT ISSUER, THE STATE OR A 9 POLITICAL SUBDIVISION OF THE STATE ARE PLEDGED TO SECURE THE OBLIGATION, 10 WHETHER OR NOT THE OBLIGATION OF THE CONDUIT ISSUER, THE STATE OR POLI- 11 TICAL SUBDIVISION OF THE STATE IS SUBJECT TO APPROPRIATION OR IS OTHER- 12 WISE CONTINGENT. 13 S 67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT. 1. ON OR BEFORE 14 OCTOBER THIRTY-FIRST, TWO THOUSAND TWENTY, THE DIVISION OF BUDGET SHALL 15 HAVE THE RESPONSIBILITY TO ANNUALLY DETERMINE THE TOTAL DEBT LIMIT OF 16 THE STATE BY CALCULATING THE DOLLAR AMOUNT EQUIVALENT TO FIVE PERCENT OF 17 THE TOTAL PERSONAL INCOME OF THE STATE. 18 2. ON OR BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND TWENTY AND OCTOBER 19 THIRTY-FIRST OF EACH YEAR THEREAFTER, THE DIVISION OF BUDGET SHALL 20 DETERMINE THE TOTAL DEBT LIMIT OF THE STATE, PURSUANT TO SECTION ELEVEN 21 OF ARTICLE SEVEN OF THE CONSTITUTION FOR THE NEXT FISCAL YEAR, AND 22 REPORT SUCH INFORMATION BY OCTOBER THIRTY-FIRST, TO THE TEMPORARY PRESI- 23 DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND 24 RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, THE CHAIRPERSON 25 AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, 26 AND THE COMPTROLLER. ON OR BEFORE SUCH DATE, THE DIVISION OF BUDGET 27 SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT. 28 3. THE EXECUTIVE'S PROPOSED BUDGET FOR STATE FISCAL YEAR TWO THOUSAND 29 TWELVE--TWO THOUSAND THIRTEEN SHALL INCLUDE A PLAN SETTING FORTH THE 30 ANNUAL TARGET PERCENTAGES AND METHODOLOGY FOR THE IMPLEMENTATION OF THE 31 PROVISIONS OF SUBDIVISION ONE OF SECTION SIXTY-SEVEN-C OF THIS ARTICLE 32 BY APRIL FIRST, TWO THOUSAND TWENTY-ONE. A PROGRESS REPORT WITH RESPECT 33 TO MEETING ANNUAL TARGET PERCENTAGES IN THE PLAN SHALL BE ISSUED ANNUAL- 34 LY BY THE EXECUTIVE WITH RELEASE OF THE PROPOSED BUDGET AND, IN THE 35 EVENT THE ACTUAL PERCENTAGES DEVIATE FROM THE TARGET PERCENTAGES SET 36 FORTH IN THE INITIAL PLAN, SHALL INCLUDE AN EXPLANATION OF SUCH DEVI- 37 ATIONS AND THE PROPOSED REMEDIAL ACTIONS DEEMED NECESSARY TO MEET SUCH 38 TARGET PERCENTAGES BY APRIL FIRST, TWO THOUSAND TWENTY-ONE. 39 S 67-B-1. LIMITATIONS ON THE ISSUANCE OF STATE-SUPPORTED DEBT. 1. (A) 40 STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTOBER 41 THIRTY-FIRST, TWO THOUSAND ONE AND AS OF EACH OCTOBER THIRTY-FIRST THER- 42 EAFTER, THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH DEBT, AS OF THE 43 LAST DAY OF THE IMMEDIATELY PRECEDING FISCAL YEAR, IS LESS THAN THE 44 DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL INCOME OF THE STATE. NOTHING 45 SHALL PRECLUDE THE CONTRACTING OF STATE-SUPPORTED DEBT PRIOR TO OCTOBER 46 THIRTY-FIRST OF EACH YEAR IF, AS OF THE LAST DAY OF THE IMMEDIATELY 47 PRECEDING FISCAL YEAR, THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH 48 DEBT WAS LESS THAN THE DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL 49 INCOME OF THE STATE. THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT 50 SHALL INCLUDE ALL STATE-SUPPORTED DEBT ISSUED ON AND AFTER APRIL FIRST, 51 TWO THOUSAND. SUCH DESIGNATED PERCENTAGE SHALL BE SEVEN AND 52 ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL YEAR TWO THOUSAND--TWO THOU- 53 SAND ONE, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT IN FISCAL 54 YEAR TWO THOUSAND ONE--TWO THOUSAND TWO, BY AN ADDITIONAL FOUR-TENTHS OF 55 ONE PERCENT IN FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND THREE, AND BY 56 AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF THE SEVEN SUBSEQUENT A. 7906 16 1 FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR FISCAL YEAR TWO THOUSAND 2 TEN--TWO THOUSAND ELEVEN AND FOR EACH FISCAL YEAR THEREAFTER SHALL BE 3 FOUR PERCENT. 4 (B) IF STATE-SUPPORTED DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT 5 THE REFUNDING, RETIREMENT OR DEFEASANCE OF STATE-SUPPORTED DEBT 6 ORIGINALLY ISSUED ON AND AFTER APRIL FIRST, TWO THOUSAND, PROVIDED SUCH 7 REFUNDINGS ARE CONDUCTED IN ACCORDANCE WITH SECTION THIRTEEN OF ARTICLE 8 SEVEN OF THE CONSTITUTION, THE CALCULATION OF THE TOTAL OUTSTANDING 9 PRINCIPAL AMOUNT OF DEBT SHALL EXCLUDE SUCH REFUNDING DEBT, AND SHALL 10 ONLY INCLUDE THE AMOUNT OF PRIOR REFUNDED DEBT, AS IF IT WERE STILL 11 OUTSTANDING, IN EACH YEAR UNTIL SUCH REFUNDING DEBT IS FINALLY RETIRED. 12 NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF SUCH SECTION THIRTEEN 13 OF ARTICLE SEVEN OF THE CONSTITUTION RELATING TO THE MAINTENANCE OR 14 MANAGEMENT OF ESCROW FUNDS AND SINKING FUNDS SHALL ONLY BE APPLICABLE TO 15 STATE-SUPPORTED DEBT ISSUED BY THE STATE COMPTROLLER. IF STATE-SUPPORTED 16 DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT THE REFUNDING, RETIREMENT 17 OR DEFEASANCE OF STATE-SUPPORTED DEBT ISSUED PRIOR TO APRIL FIRST, TWO 18 THOUSAND, THEN THE AMOUNT OF SUCH REFUNDING DEBT SHALL BE EXCLUDED FROM 19 THE CALCULATION OF THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT IN 20 EACH YEAR UNTIL SUCH REFUNDING DEBT IS FINALLY RETIRED. IN ADDITION, IF 21 STATE-SUPPORTED DEBT IS RETIRED OR DEFEASED WITH PAYMENTS IN ANY FISCAL 22 YEAR MADE BY THE STATE THAT ARE NOT REQUIRED BY MANDATORY PAYMENTS, SUCH 23 DEBT SHALL BE EXCLUDED FROM THE CALCULATION OF THE TOTAL OUTSTANDING 24 PRINCIPAL AMOUNT OF DEBT, INCLUDING RETIREMENTS OR DEFEASANCES ACCOM- 25 PLISHED ON AN ECONOMIC BASIS. 26 2. STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTO- 27 BER THIRTY-FIRST, TWO THOUSAND ONE AND AS OF EACH OCTOBER THIRTY-FIRST 28 THEREAFTER, THE TOTAL AMOUNT OF INTEREST, INSTALLMENTS OF PRINCIPAL, 29 CONTRIBUTIONS TO SINKING FUNDS, AND RELATED PAYMENTS ON A CASH BASIS OF 30 ACCOUNTING FOR STATE-SUPPORTED DEBT IN THE IMMEDIATELY PRECEDING FISCAL 31 YEAR IS LESS THAN THE DESIGNATED PERCENTAGE OF TOTAL GOVERNMENTAL FUNDS 32 RECEIPTS FOR SUCH FISCAL YEAR. NOTHING SHALL PRECLUDE THE CONTRACTING OF 33 STATE-SUPPORTED DEBT PRIOR TO OCTOBER THIRTY-FIRST OF EACH YEAR IF, IN 34 THE IMMEDIATELY PRECEDING FISCAL YEAR, THE TOTAL AMOUNT OF INTEREST, 35 INSTALLMENTS OF PRINCIPAL, CONTRIBUTIONS TO SINKING FUNDS, AND RELATED 36 PAYMENTS WAS LESS THAN THE DESIGNATED PERCENTAGE OF TOTAL GOVERNMENTAL 37 FUNDS RECEIPTS. THIS SHALL INCLUDE THE TOTAL AMOUNT OF PAYMENTS ON SUCH 38 DEBT ISSUED ON AND AFTER APRIL FIRST, TWO THOUSAND, BUT SHALL NOT 39 INCLUDE PAYMENTS IN ANY FISCAL YEAR MADE BY THE STATE TO DEFEASE OR 40 RETIRE DEBT NOT REQUIRED BY MANDATORY PAYMENTS NOR PAYMENTS MADE BY THE 41 STATE FOR DEBT ISSUED TO REFUND DEBT THAT WAS ISSUED PRIOR TO APRIL 42 FIRST, TWO THOUSAND. IN ADDITION, IF STATE-SUPPORTED DEBT IS ISSUED TO 43 REFUND OR OTHERWISE AFFECT THE REFUNDING, RETIREMENT OR DEFEASANCE OF 44 STATE-SUPPORTED DEBT ORIGINALLY ISSUED ON AND AFTER APRIL FIRST, TWO 45 THOUSAND, PROVIDED SUCH REFUNDINGS ARE CONDUCTED IN ACCORDANCE WITH 46 SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION, THE CALCULATION 47 OF THE TOTAL AMOUNT OF INTEREST, INSTALLMENTS OF PRINCIPAL, CONTRIB- 48 UTIONS TO SINKING FUNDS, AND RELATED PAYMENTS SHALL EXCLUDE PAYMENTS 49 MADE ON SUCH REFUNDING DEBT, AND SHALL ONLY INCLUDE THE PAYMENTS ON THE 50 PRIOR REFUNDED DEBT, AS IF IT WERE STILL OUTSTANDING, IN EACH YEAR UNTIL 51 SUCH REFUNDING DEBT IS FINALLY RETIRED. SUCH DESIGNATED PERCENTAGE SHALL 52 BE SEVEN AND ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL YEAR TWO THOU- 53 SAND--TWO THOUSAND ONE, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT 54 IN FISCAL YEAR TWO THOUSAND ONE--TWO THOUSAND TWO, BY AN ADDITIONAL 55 FOUR-TENTHS OF ONE PERCENT IN FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND 56 THREE, AND BY AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF THE TEN A. 7906 17 1 SUBSEQUENT FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR FISCAL YEAR TWO 2 THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN AND FOR EACH FISCAL YEAR THERE- 3 AFTER SHALL BE FIVE PERCENT. 4 S 67-C. LIMITATIONS ON STATE-FUNDED DEBT. 1. NO ADDITIONAL 5 STATE-FUNDED DEBT SHALL BE INCURRED AFTER APRIL FIRST, TWO THOUSAND 6 TWENTY-ONE IF THE TOTAL PRINCIPAL AMOUNT OF SUCH ADDITIONAL DEBT, 7 TOGETHER WITH THE TOTAL PRINCIPAL AMOUNT OF STATE-FUNDED DEBT ALREADY 8 OUTSTANDING IS EQUAL TO OR GREATER THAN THE TOTAL DEBT LIMIT OF THE 9 STATE EXCLUDING SHORT TERM DEBT INCURRED IN ACCORDANCE WITH SECTION NINE 10 OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT INCURRED IN ACCORD- 11 ANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTITUTION, AND REFUND- 12 ING DEBT. 13 2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN ACCORDANCE WITH 14 SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT 15 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI- 16 TUTION, AND REFUNDING DEBT, NO STATE-FUNDED DEBT SHALL BE INCURRED 17 EXCEPT TO FINANCE A CAPITAL PURPOSE. NO SUCH STATE-FUNDED DEBT SHALL BE 18 INCURRED IF THE TOTAL PRINCIPAL AMOUNT OF SUCH DEBT TOGETHER WITH THE 19 TOTAL PRINCIPAL AMOUNT OF SUCH DEBT ALREADY OUTSTANDING IS EQUAL TO OR 20 GREATER THAN THE TOTAL DEBT LIMIT OF THE STATE. 21 3. ALL DEBT SUBJECT TO THE PROVISIONS OF THIS SECTION SHALL, IF 22 INCURRED ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT 23 LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT ADDING A NEW 24 SUBDIVISION SIX TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION, 25 BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER. 26 4. NO STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION 27 WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT 28 FINANCED BY SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF THIS CHAP- 29 TER. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO 30 STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH A 31 FINAL MATURITY OF MORE THAN THIRTY YEARS. 32 5. NO STATE-FUNDED DEBT OUTSTANDING ON THE EFFECTIVE DATE OF THIS 33 SUBDIVISION SHALL BE REFUNDED UNLESS SUCH REFUNDING IS CONDUCTED IN ALL 34 RESPECTS AS IF SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN OF ARTICLE 35 SEVEN OF THE CONSTITUTION. SUCH OUTSTANDING DEBT OBLIGATIONS SHALL BE 36 INCLUDED IN THE DETERMINATION OF THE DEBT LIMIT. FOR THE PURPOSES OF 37 THIS SUBDIVISION AND SECTION SIXTY-SEVEN-D OF THIS ARTICLE, ANY REFUND- 38 ING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL MATURITY OF THE DEBT 39 BEING REFUNDED SHALL BE DEEMED TO BE IN COMPLIANCE WITH THE PROVISIONS 40 OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITU- 41 TION MADE APPLICABLE BY THIS SUBDIVISION IF THERE IS AN ACTUAL DEBT 42 SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT OF THE ISSUANCE OF 43 THE REFUNDING DEBT. 44 6. ANY REFUNDING OBLIGATIONS ISSUED PURSUANT TO SUBDIVISION FIVE OF 45 THIS SECTION ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGIN- 46 NING AT LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT TO 47 SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT ON 48 THE TOTAL AMOUNT OF STATE DEBT SHALL BE ISSUED BY THE COMPTROLLER. 49 S 67-D. PROHIBITION OF CONTINGENT OBLIGATION DEBT. AFTER THE EFFEC- 50 TIVE DATE OF THIS SECTION, THE STATE SHALL NOT, EXCEPT AS SPECIFICALLY 51 AUTHORIZED BY A PROVISION OF THE CONSTITUTION OTHER THAN SECTION ELEVEN 52 OF ARTICLE SEVEN, AGREE TO MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETH- 53 ER OR NOT SUBJECT TO APPROPRIATION, THAT ARE TO BE AVAILABLE TO PAY DEBT 54 SERVICE ON ANY DEBT INCURRED BY A MUNICIPALITY, INDIVIDUAL, PUBLIC 55 AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, 56 FOR ANY PURPOSE, IF SUCH PAYMENTS ARE EXPECTED TO BE USED TO PAY DEBT A. 7906 18 1 SERVICE ONLY IF OTHER SOURCES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE 2 ARE INADEQUATE. ANY PROVISION REQUIRING THE STATE TO REPLACE MONIES USED 3 TO PAY DEBT SERVICE SHALL BE INCLUDED IN THE PROHIBITION SET FORTH IN 4 THIS SUBDIVISION. OUTSTANDING DEBT THAT WOULD BE PROHIBITED BY THIS 5 SECTION IF SUCH DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF THIS 6 SECTION MAY BE REFUNDED BY THE ENTITY THAT INCURRED THE OUTSTANDING 7 DEBT. 8 S 2. Paragraph i of subdivision 3 of section 22 of the state finance 9 law, as amended by chapter 1 of the laws of 2007, is amended to read as 10 follows: 11 i. A statement setting forth state involvement in the fiscal oper- 12 ations of those public authorities and public benefit corporations which 13 may be part of the development of a comprehensive state budget system 14 and provided therefor in the state financial plan. Such statement shall 15 include those public authorities and public benefit corporations with 16 disbursements which are not currently reflected in the state central 17 accounting system from proceeds of any notes or bonds issued by any 18 public authority, and which bonds or notes would be considered as 19 [state-supported] STATE-FUNDED debt as defined in section sixty-seven-a 20 of this chapter. Such statement shall set forth the amount of all of the 21 bonds, notes and other obligations of each public authority, public 22 benefit corporation and all other agencies and instrumentalities of the 23 state for which the full faith and credit of the state has been pledged 24 or on account of which the state has by law given its pledge or assur- 25 ance for the continued operation and solvency of the authority, public 26 corporation, or other agency or instrumentality of the state, as the 27 case may be. Such statement shall also set forth all proposed appropri- 28 ations to be made to any public authority, public benefit corporation, 29 and any other agency or instrumentality of the state which has been 30 created or continued by law and which is separate and distinct from the 31 state itself. 32 S 3. Paragraph b of subdivision 15 of section 22 of the state finance 33 law, as added by chapter 1 of the laws of 2007, is amended to read as 34 follows: 35 b. The capital program and financing plan submitted pursuant to 36 section twenty-two-c of this article, and the update thereto required 37 pursuant to section twenty-three of this article, shall include a report 38 on the management of [state-supported] STATE-FUNDED debt. Such report 39 may include, but is not limited to: (1) an assessment of the affordabil- 40 ity of state debt, including debt as a percent of personal income, debt 41 per capita, and debt service costs as a percent of the budget; (2) a 42 summary and analysis of the interest rate exchange agreements and vari- 43 able rate exposure; and (3) an assessment of financing opportunities 44 related to the state's debt portfolio. 45 S 4. The opening paragraph and paragraph (f) of subdivision 1, and 46 subparagraphs (iv), (v), (vi), (vii) and (viii) of paragraph c of subdi- 47 vision 3 of section 22-c of the state finance law, as amended by section 48 3 of part F of chapter 389 of the laws of 1997, are amended to read as 49 follows: 50 The governor shall annually submit to the legislature a capital 51 program and financing plan concurrent with the executive budget, in 52 addition to the information required by section twenty-two of this arti- 53 cle. The plan shall contain a comprehensive assessment of the capital 54 assets and program needs of all state agencies, a review and analysis of 55 how such requirements would be financed, an analysis of the affordabili- A. 7906 19 1 ty of [state-supported] STATE-FUNDED debt, and an analysis of all costs 2 related to the financing of such plan. 3 (f) "[State-supported] STATE-FUNDED debt" shall [mean any bonds or 4 notes issued by the state or a state public corporation for which the 5 state is constitutionally obligated to pay debt service or is contractu- 6 ally obligated to pay debt service subject to an appropriation, except 7 where the state has a contingent contractual obligation] HAVE THE SAME 8 MEANING AS SET FORTH IN SECTION SIXTY-SEVEN-A OF THIS CHAPTER. 9 (iv) schedules of the projected annual [state-supported] STATE-FUNDED 10 bond issuances, proposed for each capital program, by agency, by issuer, 11 and an analysis of existing debt authorizations and the need for any 12 additional authorizations; 13 (v) schedules of projected outstanding bonds, including retirements by 14 year identified separately for [state-supported] STATE-FUNDED bond issu- 15 ances by issuer, and by capital program by agency, where practicable; 16 (vi) schedules of the projected personal income of the state and the 17 projected ratio of outstanding [state-supported] STATE-FUNDED bonds to 18 personal income; 19 (vii) schedules of projected [state-supported] STATE-FUNDED debt 20 service costs by issuer, and by capital program by agency, where practi- 21 cable; and 22 (viii) an analysis of trends in municipal bond interest rates and an 23 explanation of the interest rate assumptions, timing of principal and 24 interest payments, and the timing and size of projected [state-support- 25 ed] STATE-FUNDED bond sales used in the debt service projections. 26 S 5. Subdivision 4 of section 23 of the state finance law, as amended 27 by chapter 1 of the laws of 2007, is amended to read as follows: 28 4. Financial plan updates. Quarterly, throughout the fiscal year, the 29 governor shall submit to the comptroller, the chairs of the senate 30 finance and the assembly ways and means committees, within thirty days 31 of the close of the quarter to which it shall pertain, a report which 32 summarizes the actual experience to date and projections for the remain- 33 ing quarters of the current fiscal year and for each of the next two 34 fiscal years of receipts, disbursements, tax refunds, and repayments of 35 advances presented in forms suitable for comparison with the financial 36 plan submitted pursuant to subdivisions one, THREE, four, [and] five, 37 FIVE-A AND FIVE-B of section twenty-two of this article and revised in 38 accordance with the provisions of subdivision three of this section. The 39 governor shall submit with the budget a similar report that summarizes 40 revenue and expenditure experience to date in a form suitable for 41 comparison with the financial plan submitted pursuant to subdivision two 42 of section twenty-two of this article and revised in accordance with the 43 provisions of subdivision three of this section. Such reports shall 44 provide an explanation of the causes of any major deviations from the 45 revised financial plans and, shall provide for the amendment of the plan 46 or plans to reflect those deviations. WHENEVER A DEFICIT IS PROJECTED 47 IN THE GENERAL FUND OR OTHER STATE FUNDS FOR THE CURRENT FISCAL YEAR 48 END, THE GOVERNOR SHALL SUBMIT A FINANCIAL PLAN MODIFICATION TO THE 49 LEGISLATURE WITH LEGISLATION TO EFFECTUATE SUCH MODIFICATIONS AS MAY BE 50 NECESSARY TO ELIMINATE SUCH DEFICIT. The governor may, if he determines 51 it advisable, provide more frequent reports to the legislature regarding 52 actual experience as compared to the financial plans. The quarterly 53 financial plan update most proximate to October thirty-first of each 54 year shall include the calculation of the limitations on the issuance of 55 [state-supported] STATE-FUNDED debt computed pursuant to the provisions A. 7906 20 1 of [subdivisions one and two] SUBDIVISION THREE of section sixty-seven-b 2 of this chapter. 3 S 6. Subdivision 2 of section 68-a of the state finance law, as 4 amended by chapter 79 of the laws of 2010, is amended to read as 5 follows: 6 2. "Authorized purpose" for purposes of this article and section nine- 7 ty-two-z of this chapter shall mean any [purposes] PURPOSE for which 8 [state-supported] STATE-FUNDED debt, as defined by section sixty-seven-a 9 of this chapter, may BE or has been issued except debt for which the 10 state is constitutionally obligated thereunder to pay debt service and 11 related expenses, and except (a) as authorized in paragraph (b) of 12 subdivision one of section three hundred eighty-five of the public 13 authorities law, (b) as authorized for the department of health of the 14 state of New York facilities as specified in paragraph a of subdivision 15 two of section sixteen hundred eighty of the public authorities law, (c) 16 state university of New York dormitory facilities as specified in subdi- 17 vision eight of section sixteen hundred seventy-eight of the public 18 authorities law, and (d) as authorized for mental health services facil- 19 ities by section nine-a of section one of chapter three hundred ninety- 20 two of the laws of nineteen hundred seventy-three constituting the New 21 York state medical care facilities financing act. Notwithstanding the 22 provisions of clause (d) of this subdivision, for the period April 23 first, two thousand nine through March thirty-first, two thousand elev- 24 en, mental health services facilities, as authorized by section nine-a 25 of section one of chapter three hundred ninety-two of the laws of nine- 26 teen hundred seventy-three constituting the New York state medical care 27 facilities financing act, shall constitute an authorized purpose. 28 S 7. Section 69-a of the state finance law, as added by section 38 of 29 part K of chapter 81 of the laws of 2002, subdivision 6 as amended by 30 section 9 of part A of chapter 63 of the laws of 2005 and subdivision 7 31 as amended by section 35 of part T of chapter 57 of the laws of 2007, is 32 amended to read as follows: 33 S 69-a. Definitions. As used throughout this article, the following 34 terms shall have the following meanings: 35 1. "Variable rate bonds" shall mean any [State-supported] STATE-FUNDED 36 debt which bears interest at a rate or rates which varies from time to 37 time. 38 2. "Interest rate exchange or similar agreement" shall mean a written 39 contract entered into in connection with the issuance of [State-support- 40 ed] STATE-FUNDED debt, or in connection with such [State-supported] 41 STATE-FUNDED debt already outstanding, with a counterparty to provide 42 for an exchange of payments based upon fixed and/or variable interest 43 rates, and shall be for exchanges in currency of the United States of 44 America only. 45 3. "[State-supported] STATE-FUNDED debt" shall mean all debt included 46 in subdivision [one] THREE of section sixty-seven-a of this chapter. 47 4. "Authorized issuer" shall mean the state or any state public corpo- 48 ration which is authorized to issue [State-supported] STATE-FUNDED debt. 49 5. "Governing board" shall mean, for each state public corporation 50 which is authorized to issue [State-supported] STATE-FUNDED debt, its 51 board of directors or, in the absence of a board of directors, its other 52 appropriate supervising body and, in relation to state general obli- 53 gation debt, the state comptroller. 54 6. "Variable rate debt instruments" shall mean, for any calculation 55 purpose, (i) variable rate bonds or (ii) any [state-supported] 56 STATE-FUNDED debt and related interest rate exchange or similar agree- A. 7906 21 1 ments which, when considered together, result in an authorized issuer 2 effectively paying interest at a rate or rates which varies from time to 3 time, but shall not include any variable rate bonds, or any [state-sup- 4 ported] STATE-FUNDED debt considered together with related interest rate 5 exchange or similar agreements issued on or before July first, two thou- 6 sand five, during any period that such instrument or instruments provide 7 for payment by the authorized issuer of a fixed rate throughout the then 8 current fiscal year of the state. 9 7. "Excluded agreements" shall mean the total notional amount of 10 interest rate exchange or similar agreements entered into for the 11 purpose of reducing or eliminating a situation of risk or exposure under 12 an existing interest rate exchange or similar agreement, including, but 13 not limited to a counterparty downgrade, default, or other actual or 14 potential economic loss; provided, however, that for agreements entered 15 into on and after April first, two thousand seven "excluded agreements" 16 shall mean the total notional amount of interest rate exchange or simi- 17 lar agreements entered into for the purpose of reducing or eliminating a 18 situation of imminent risk under an existing interest rate exchange or 19 similar agreement, including, but not limited to a counterparty down- 20 grade, default, or other actual or imminent economic loss. 21 S 8. Section 69-b of the state finance law, as amended by section 32-a 22 of part T of chapter 57 of the laws of 2007, is amended to read as 23 follows: 24 S 69-b. Limitation on amount of variable rate debt instruments. As of 25 the initial date of each issuance of variable rate bonds or the date of 26 entering into any other variable rate debt instruments, or for debt 27 issued on or before July first, two thousand five upon conversion of any 28 [state-supported] STATE-FUNDED debt to variable rate debt instruments, 29 the total of the principal and notional amounts of such variable rate 30 debt instruments outstanding and in effect shall not exceed an amount 31 equal to twenty percent of the total principal amount of [state-support- 32 ed] STATE-FUNDED debt outstanding. 33 S 9. The opening paragraph of section 69-c of the state finance law, 34 as amended by section 35 of part PP of chapter 56 of the laws of 2009, 35 is amended to read as follows: 36 Notwithstanding any other provision of law to the contrary, any 37 [State-supported] STATE-FUNDED debt may be issued as variable rate 38 bonds. 39 S 9-a. Section 69-c of the state finance law, as added by section 38 40 of part K of chapter 81 of the laws of 2002, is amended to read as 41 follows: 42 S 69-c. Variable rate bonds. Notwithstanding any other provision of 43 law to the contrary, any [State-supported] STATE-FUNDED debt may be 44 issued as variable rate bonds. 45 S 10. The opening paragraph and paragraph (d) of subdivision 1 of 46 section 69-d of the state finance law, as amended by section 33 of part 47 P2 of chapter 62 of the laws of 2003, are amended to read as follows: 48 In connection with the issuance of [State-supported] STATE-FUNDED 49 debt, or in connection with such [State-supported] STATE-FUNDED debt 50 already outstanding, an authorized issuer shall have the power to: 51 (d) the state, acting through the director of the budget or other 52 state officials who are so authorized by applicable law with respect to 53 such bonds, notes or other obligations, shall also be authorized to 54 enter into or amend agreements related to such [State-supported] STATE- 55 FUNDED debt to provide for payment, subject to appropriation, to such A. 7906 22 1 authorized issuer of any amounts required to be paid by such authorized 2 issuer under any such interest rate exchange or similar agreement; 3 S 11. Paragraphs (c) and (d) of subdivision 2 of section 69-d of the 4 state finance law, paragraph (c) as amended by section 32 of part T of 5 chapter 57 of the laws of 2007, paragraph (d) as added by section 38 of 6 part K of chapter 81 of the laws of 2002, are amended to read as 7 follows: 8 (c) the total notional amount of all interest rate exchange or similar 9 agreements for all authorized issuers to be in effect shall not exceed 10 an amount equal to twenty percent of the total amount of [state-support- 11 ed] STATE-FUNDED debt outstanding as of the initial date of entering 12 into each new agreement; provided, however, that such total notional 13 amount shall not include any excluded agreements. 14 (d) no interest rate exchange or similar agreement shall have a matu- 15 rity exceeding the maturity of the related [State-supported] STATE-FUND- 16 ED debt; 17 S 12. Section 69-e of the state finance law, as added by section 38 of 18 part K of chapter 81 of the laws of 2002, is amended to read as follows: 19 S 69-e. Applicability. Nothing in this article shall be construed as 20 to apply to or limit any debt obligation or related instrument of the 21 state, state public corporations, or any other issuers except those 22 obligations or instruments which are or relate to [State-supported] 23 STATE-FUNDED debt. 24 S 13. Paragraph (a) of subdivision 3 of section 97-rrr of the state 25 finance law, as amended by section 45 of part H of chapter 56 of the 26 laws of 2000, is amended to read as follows: 27 (a) for the payment of principal, interest, and related expenses on 28 general obligation bonds, lease purchase payments, or special contractu- 29 al obligation payments, or for the purposes of retiring or defeasing 30 bonds previously issued, including any accrued interest thereon, for any 31 [state-supported] STATE-FUNDED bonding program or programs, and; 32 S 14. This act shall take effect immediately, provided, however, that 33 section 67-b-1 of the state finance law, as added by section one of this 34 act, shall expire and be deemed repealed March 31, 2021; provided, 35 further, however, that subdivisions 3 and 6 of section 67-c of the state 36 finance law, as added by section one of this act, shall take effect on 37 the same date as the amendments to article 7 of the state constitution 38 relating to the authorization of multiple general obligation issuances 39 and revenue backed bonds on the ballot and restricting the use of debt 40 to capital purposes with strict limitations on exceptions for specific 41 purposes, as proposed in a concurrent resolution of the Senate and 42 Assembly entitled "CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY 43 proposing amendments to article 7 of the constitution, in relation to 44 authorization of debt in times of public emergency, a limit on the total 45 amount of state-funded debt, and the refunding of state debts", takes 46 effect; provided, further, however that the amendments to section 69-c 47 of the state finance law made by section nine of this act shall be 48 subject to the expiration and reversion of such section pursuant to 49 section 51 of part RR of chapter 57 of the laws of 2008, as amended, 50 when upon such date the provisions of section nine-a of this act shall 51 take effect. 52 S 2. Severability clause. If any clause, sentence, paragraph, subdivi- 53 sion, section or part of this act shall be adjudged by any court of 54 competent jurisdiction to be invalid, such judgment shall not affect, 55 impair, or invalidate the remainder thereof, but shall be confined in 56 its operation to the clause, sentence, paragraph, subdivision, section A. 7906 23 1 or part thereof directly involved in the controversy in which such judg- 2 ment shall have been rendered. It is hereby declared to be the intent of 3 the legislature that this act would have been enacted even if such 4 invalid provisions had not been included herein. 5 S 3. This act shall take effect immediately; provided, however, that 6 the applicable effective date of Parts A through C of this act shall be 7 as specifically set forth in the last section of such Parts.