S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5436

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 27, 2013
                               ___________

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 in relation to enacting the comptroller's 2013 mandate for fiscal
  reform 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,
  the public authorities law, the private housing finance  law  and  the
  New York state urban development corporation act, in relation to limi-
  tations  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 expi-
  ration 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  2013  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 four of this act sets forth the
general effective date of this act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07829-02-3

              

A. 5436                             2

  S 2.  Short title. This act shall be known and may be  cited  as  "the
comptroller's 2013 mandate for fiscal reform act".

                                 PART A

  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-

A. 5436                             3

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
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

A. 5436                             4

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.
  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 THREE 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 prin-
ciples;
  (iii)] a detailed schedule by fund of revenues and expenditures within
the general fund;
  [(iv)] (III) 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

A. 5436                             5

tax, and major components of miscellaneous receipts] SHOWN BY EACH MAJOR
REVENUE  CATEGORY, INCLUDING EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPO-
NENT 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  SOURCE  WHICH  ACCOUNTS FOR AT LEAST ONE-HALF OF ONE PERCENT OF
ALL RECEIPTS WITHIN EACH FUND TYPE; and
  [(v)] (IV) 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
THREE  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,

A. 5436                             6

the  anticipated  general  fund  [monthly]  and  governmental fund types
[quarterly] MONTHLY schedule and fiscal year total for the CURRENT,  AND
THREE  ensuing  fiscal [year] YEARS of:  disbursements; receipts; repay-
ments  of  advances;  total tax refunds; and refunds for the tax imposed
under article twenty-two of the tax law.    Such  information  shall  be
presented  in  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

A. 5436                             7

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:
  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

A. 5436                             8

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
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 FOURTEEN, NO BUDGET BILL SUBMITTED BY  THE  GOVERNOR

A. 5436                             9

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 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. Subdivision 2 of section 92-cc of  the  state  finance  law,  as
amended  by  section  17 of part U of chapter 59 of the laws of 2012, is
amended to read as follows:
  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.  At  the  request of the director of the budget, the
state comptroller shall transfer monies to the rainy day reserve fund up
to and including an amount equivalent to three-tenths of one per  centum
of  the aggregate amount projected to be disbursed from the general fund
during the then-current fiscal year, unless such transfer would increase
the rainy day reserve fund to an amount in excess of three 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, in which event such transfer shall be limited to  such  amount  as
will  increase the rainy day reserve fund to such three per centum limi-
tation.
  S 14. 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.
ONCE  THE  RAINY  DAY  FUND  HAS  REACHED  ITS MAXIMUM BALANCE, ANY CASH
SURPLUS REMAINING IN THE GENERAL FUND AFTER  THE  TRANSFER  PURSUANT  TO
SECTION  NINETY-TWO  OF  THIS  ARTICLE  SHALL  BE  DEPOSITED IN THE DEBT
REDUCTION RESERVE FUND AS ESTABLISHED  IN  SECTION  NINETY-SEVEN-RRR  OF
THIS  ARTICLE,  AS  AMENDED  BY  SECTION FORTY-FIVE OF PART H OF CHAPTER
FIFTY-SIX OF THE LAWS OF TWO THOUSAND.
  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

A. 5436                            10

general fund during the fiscal year immediately following the  then-cur-
rent fiscal year.
  S 15.  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 16. This act shall take effect immediately, provided, however,  that
the  amendments  to  subdivision 2 of section 92-cc of the state finance
law made by section thirteen of this act shall be subject to the expira-
tion and reversion of such subdivision pursuant to section 17 of part  U
of  chapter  59 of the laws of 2012, as amended, when upon such date the
provisions of section fourteen of this act shall take effect.

                                 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
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

A. 5436                            11

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,
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.

A. 5436                            12

  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.
  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 FOURTEEN, AND ANNUALLY  THEREAFTER,  AND  SHALL  POST  SUCH
REPORTS  ON  THE  INTERNET.  THE  RECOMMENDATIONS  OF  THE COUNCIL SHALL
INCLUDE:

A. 5436                            13

  (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.
  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:

A. 5436                            14

  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] STATE-FUNDED debt,
and an analysis 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,
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.

A. 5436                            15

  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
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-TWO, 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-TWO,  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

A. 5436                            16

PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON
AND RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, THE  CHAIR-
PERSON  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
FOURTEEN--TWO  THOUSAND  FIFTEEN  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-THREE.  A  PROGRESS  REPORT  WITH
RESPECT TO MEETING ANNUAL TARGET PERCENTAGES IN THE PLAN SHALL BE ISSUED
ANNUALLY  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-THREE.
  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
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

A. 5436                            17

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
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-THREE 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

A. 5436                            18

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
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

A. 5436                            19

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-
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

A. 5436                            20

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
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 section 36 of part U of chapter 59 of the laws  of  2012,  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 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 univer-
sity of New York dormitory facilities as specified in subdivision  eight
of  section sixteen hundred seventy-eight of the public authorities law,
and (d) as authorized for mental health services facilities  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]  FINANCE  AGENCY  act.  Notwithstanding  the
provisions  of  clause  (d)  of  this  subdivision, for the period April
first, two thousand nine through March thirty-first, two thousand  thir-
teen, mental health services facilities, as authorized by section nine-a

A. 5436                            21

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]  FINANCE AGENCY act, shall constitute an author-
ized 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-
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 57-d
of  part  BB  of  chapter  58 of the laws of 2011, is amended to read as
follows:

A. 5436                            22

  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 fifteen percent of the total principal  amount  of  [state-sup-
ported] 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  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
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 57-e of  part  BB
of  chapter 58 of the laws of 2011, 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 fifteen percent of the total  amount  of  [state-sup-
ported] 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

A. 5436                            23

bonds previously issued, including any accrued interest thereon, for any
[state-supported] STATE-FUNDED bonding program or programs, and;
  S 14. Section 367 of the public authorities law, as amended by section
54  of  part PP of chapter 56 of the laws of 2009, is amended to read as
follows:
  S 367. State's right to require redemption of  bonds.  Notwithstanding
and  in addition to any provisions for the redemption of bonds which may
be contained in any contract with the holders of the  bonds,  the  state
may, upon furnishing sufficient funds therefor, require the authority to
redeem,  prior to maturity, as a whole, any issue of bonds on any inter-
est payment date not less than fifteen years after the date of the bonds
of such issue at one hundred four per centum of  their  face  value  and
accrued interest or at such lower redemption price as may be provided in
the bonds in case of the redemption thereof as a whole on the redemption
date. Notice of such redemption shall be published in at least two news-
papers  published  and  circulating respectively in the cities of Albany
and New York at least twice, the first publication to be at least thirty
days before the date of  redemption.  The  provisions  of  this  section
relating  to the state's right to require redemption of bonds, shall not
apply to [state-supported] STATE-FUNDED  debt,  as  defined  by  section
sixty-seven-a  of  the  state finance law, issued by the authority. Such
authority bonds shall remain  subject  to  redemption  pursuant  to  any
contract with the holders of such bonds.
  S  15.  Section  1293  of  the  public  authorities law, as amended by
section 55 of part PP of chapter 56 of the laws of 2009, is  amended  to
read as follows:
  S 1293. Right of state to require redemption of bonds. Notwithstanding
and  in addition to any provisions for the redemption of bonds which may
be contained in any contract with the holders of the  bonds,  the  state
may,  upon furnishing sufficient funds therefor, require the corporation
to redeem, prior to maturity, as a whole, any  issue  of  bonds  on  any
interest  payment  date not less than twenty years after the date of the
bonds of such issue at one hundred five per centum of their  face  value
and  accrued  interest  or  at  such  lower  redemption  price as may be
provided in the bonds in case of the redemption thereof as  a  whole  on
the  redemption date. Notice of such redemption shall be published in at
least two newspapers publishing  and  circulating  respectively  in  the
cities  of  Albany and New York at least twice, the first publication to
be at least thirty days before the date of redemption. The provisions of
this section relating to the state's  right  to  require  redemption  of
bonds shall not apply to [state-supported] STATE-FUNDED debt, as defined
by  section sixty-seven-a of the state finance law, issued by the corpo-
ration. Such corporation bonds shall remain subject to redemption pursu-
ant to any contract with the holders of such bonds.
  S 16. Section 49 of the private housing finance  law,  as  amended  by
section  52  of part PP of chapter 56 of the laws of 2009, is amended to
read as follows:
  S 49. State's right to require redemption  of  bonds.  Notwithstanding
and  in addition to any provisions for the redemption of bonds which may
be contained in any contract with the holders of the  bonds,  the  state
may,  upon  furnishing  sufficient funds therefor, require the agency to
redeem, prior to maturity, as a whole, any issue of bonds on any  inter-
est  payment date not less than twenty years after the date of the bonds
of such issue at one hundred five per centum of  their  face  value  and
accrued interest or at such lower redemption price as may be provided in
the bonds in case of the redemption thereof as a whole on the redemption

A. 5436                            24

date. Notice of such redemption shall be published in at least two news-
papers  publishing  and circulating respectively in the cities of Albany
and New York at least twice, the first publication to be at least thirty
days  before  the  date  of  redemption.  The provisions of this section
relating to the state's right to require redemption of bonds, shall  not
apply  to  [state-supported]  STATE-FUNDED  debt,  as defined in section
sixty-seven-a of the state finance law, issued by the agency. Such agen-
cy bonds shall remain subject to redemption  pursuant  to  any  contract
with the holders of such bonds.
  S  17. Section 73 of the state finance law, as amended by section 36-a
of part U of chapter 59 of the laws of  2012,  is  amended  to  read  as
follows:
  S  73.  Federal  interest  subsidy payments. Notwithstanding any other
provision of law to the contrary,  the  comptroller  shall  deposit  any
federal  interest subsidy payments received by the state for [state-sup-
ported] STATE-FUNDED debt issued as build America bonds (BABs) or Quali-
fied School Construction Bonds (QSCBs), as authorized  pursuant  to  the
American  Recovery  and  Reinvestment  Act of 2009 (ARRA), as amended or
pursuant to any successor authorization, to each respective debt service
fund which relates to such bonds.
  S 18. Section 25 of section 1 of chapter 174  of  the  laws  of  1968,
constituting  the  New  York state urban development corporation act, as
amended by section 53 of part PP of chapter 56 of the laws of  2009,  is
amended to read as follows:
  S  25.  State's  right to require redemption of bonds. Notwithstanding
and in addition to any provisions for the redemption of bonds which  may
be  contained  in  any contract with the holders of the bonds, the state
may, upon furnishing sufficient funds therefor, require the  corporation
to  redeem,  prior  to  maturity,  as a whole, any issue of bonds on any
interest payment date not less than twenty years after the date  of  the
bonds  of  such issue at one hundred five per centum of their face value
and accrued interest or  at  such  lower  redemption  price  as  may  be
provided  in  the  bonds in case of the redemption thereof as a whole on
the redemption date. Notice of such redemption  shall  be  published  at
least  twice  in  at  least  two  newspapers  publishing and circulating
respectively in the cities of Albany and New York, the first publication
to be at least thirty days before the date of redemption. The provisions
of this section relating to the state's right to require  redemption  of
bonds shall not apply to [state-supported] STATE-FUNDED debt, as defined
by  section  67-a  of  the state finance law, issued by the corporation.
Such corporation bonds shall remain subject to  redemption  pursuant  to
any contract with the holders of such bonds.
  S  19. 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, 2023;  and  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

A. 5436                            25

amount  of  state-funded  debt, and the refunding of state debts", takes
effect.
  S 3. 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
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 4. 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.