Bill S4541-2013

Requires propositions authorizing creation of a state debt to contain an estimate of the debt service payable and publish an explanation thereof

Requires that any ballot proposition creating a state debt shall contain an estimate of the amortization period and the total expected debt service payable thereon until the bonds issued pursuant to such proposition are retired.

Details

Actions

  • Jan 8, 2014: REFERRED TO ELECTIONS
  • Apr 10, 2013: REFERRED TO ELECTIONS

Memo

BILL NUMBER:S4541

TITLE OF BILL: An act to amend the election law and the state finance law, in relation to requiring proposition authorizing the creation of a state debt to contain an estimate of the debt service payable thereon and requiring publication of an explanation thereof

PURPOSE:

This bill would provide the voting public with more accurate information regarding the overall costs of any proposed bond acts by requiring that the ballot proposition include information on the length of the amortization period and the total expected debt service.

SUMMARY OF PROVISIONS:

Section one of the bill adds a new § 7-112 to the Election Law to require that any ballot proposition creating a state debt shall contain an estimate of the length of the amortization period and the total expected debt service payments. Section two of the bill amends § 4-116 of the Election Law to incorporate such reference in ballot publication requirements. Section three of the bill adds a new § 6 to the State Finance Law to require that any state publications promoting awareness of, or explaining the provisions of, any such ballot proposition shall include the information on the amortization period and total amount of debt.

EXISTING LAW:

Ballot propositions to incur state debt must currently list only the principal amount of the proposed debt.

JUSTIFICATION:

Current law provides that ballot propositions must show the principal amount of proposed debt. However, this is misleading, since the actual taxpayer cost of any new debt will also include the interest to be paid. On long term debt, interest payments can more than double the principal amount. State publications often play an important role in educating the public about ballot issues. Accordingly, these should show the true total cost of any new debt.

FISCAL IMPLICATIONS:

None

LEGISLATIVE HISTORY:

This legislation was passed by the Senate each year from 1993 to 2008.

EFFECTIVE DATE:

Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 4541 2013-2014 Regular Sessions IN SENATE April 10, 2013 ___________
Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Elections AN ACT to amend the election law and the state finance law, in relation to requiring proposition authorizing the creation of a state debt to contain an estimate of the debt service payable thereon and requiring publication of an explanation thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The election law is amended by adding a new section 7-112 to read as follows: S 7-112. BALLOTS; FORM FOR PROPOSITION; ADDITIONAL REQUIREMENTS. EACH DULY CERTIFIED PROPOSITION CONTAINED ON THE BALLOT AND SUBMITTED TO THE VOTERS OF THE STATE WHICH PROVIDES FOR THE CREATION OF A STATE DEBT SHALL CONTAIN AN ESTIMATE OF THE ANTICIPATED NUMBER OF YEARS OVER WHICH SUCH DEBT SHALL BE AMORTIZED AND THE TOTAL EXPECTED DEBT SERVICE PAYABLE ON THE PRINCIPAL AMOUNT OF SUCH BONDS UNTIL THEIR RETIREMENT. SUCH INFORMATION SHALL BE PRINTED IN THE LARGEST TYPE WHICH IS PRACTICABLE TO USE IN THE SPACE PROVIDED FOR THE PROPOSITION. SUCH INFORMATION SHALL BE PROVIDED TO THE STATE BOARD OF ELECTIONS AND THE SECRETARY OF STATE BY THE STATE COMPTROLLER NOT LATER THAN SEVEN DAYS AFTER THE PASSAGE OF THE LAW AUTHORIZING SUCH PROPOSITION. S 2. Subdivision 2 of section 4-116 of the election law, as amended by chapter 60 of the laws of 1993, is amended to read as follows: 2. The state board of elections shall publish once in the week preced- ing any election at which proposed constitutional amendments or other propositions or questions are to be submitted to the voters of the state an abstract of such amendment or question, INCLUDING THE ESTIMATE OF THE AMORTIZATION PERIOD AND THE TOTAL ANTICIPATED DEBT SERVICE WHERE THE PROPOSITION AUTHORIZES THE CREATION OF A STATE DEBT, a brief statement of the law or proceedings authorizing such submission, a statement that
such submission will be made and the form in which it is to be submit- ted. S 3. The state finance law is amended by adding a new section 6 to read as follows: S 6. STATE PUBLICATION CONCERNING PROPOSITION. ANY REPORT, PUBLICA- TION, PAMPHLET OR OTHER WRITTEN DOCUMENT PREPARED BY A STATE DEPARTMENT, AGENCY, AUTHORITY OR OTHER COMPONENT OR DIVISION OF STATE GOVERNMENT, INTENDED FOR DISTRIBUTION TO THE PUBLIC, WHICH IS INTENDED TO PROMOTE AWARENESS OF OR EXPLAIN THE PROVISIONS CONTAINED IN, OR INCIDENTAL TO, A DULY CERTIFIED PROPOSITION TO BE CONTAINED ON THE BALLOT AND TO BE SUBMITTED TO THE VOTERS OF THE STATE WHICH PROPOSITION PROVIDES FOR THE CREATION OF A STATE DEBT SHALL CONTAIN THEREIN AN ESTIMATE OF THE ANTIC- IPATED NUMBER OF YEARS OVER WHICH SUCH DEBT SHALL BE AMORTIZED AND THE TOTAL EXPECTED DEBT SERVICE PAYABLE ON THE PRINCIPAL AMOUNT OF SUCH BONDS UNTIL THEIR RETIREMENT. SUCH INFORMATION SHALL BE PRINTED IN THE LARGEST TYPE WHICH IS PRACTICABLE TO USE IN SUCH DOCUMENT. S 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus