Provides that special revenue funds shall not be transferred or loaned temporarily without specific statutory authority.

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S874-2013 Actions

• Jan 9, 2013: REFERRED TO FINANCE

S874-2013 Memo

BILL NUMBER:S874

TITLE OF BILL:
An act
to amend the state finance law, in relation to the transfer and
temporary loan of special revenue funds

PURPOSE:
The purpose of this bill is to disallow any appropriation of
special revenue funds without statutory authority, and to require
the division of the budget to develop a plan for repayment for
special revenue funds transferred to the general fund.

SUMMARY OF SPECIFIC PROVISIONS:
The first
portion of this bill would prohibit any transfer of monies from
special revenue funds if not mandated by law.

The second paragraph requires the division of the budget with the
state comptroller to develop a plan for repayment for monies swept
from special revenue funds to the general fund over a five year
period. Once the plan is developed the division of the budget is to
hold public hearings and make the plan publicly accessible by
providing it on the DOB homepage.

JUSTIFICATION:
Special revenue funds, such as the Environmental
Protection Fund, (EPF) were promised to be provided only for the
programs for which they were created These funds were developed and
envisioned as a public trust to be placed in a lockbox, and not used
as a slush fund to fill budget gaps for the general fund. To date,
over $500 million dollars has been swept from the EPF to the general
fund. This past fiscal year $1 million in snowmobile registration
fees that are statutorily required to be provided for maintenance and
creation of new trails were also swept into the general fund New
Yorkers deserve clean, well-managed and properly funded environmental
programs they were promised. It is in the interest of the public
trust and integrity of our state to further regulate special revenue
funds and eliminate detrimental sweeps in the future.

PRIOR LEGISLATIVE HISTORY:
2008:     S.7796A
2009-10:  S.1114  of 2009-10; Referred to Senate Finance
2011-12:  S.3309A of 2011-11; Referred to Senate Finance

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediatley.

S874-2013 Text

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

                                     874

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sens.  GRISANTI,  MARCELLINO  --  read twice and ordered
    printed, and when printed to be committed to the Committee on Finance

  AN ACT to amend the state finance law, in relation to the  transfer  and
    temporary loan of special revenue funds

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Section 4 of the state finance law is amended by  adding  a
  new subdivision 11 to read as follows:

    11. (A) NO MONEY OR OTHER FINANCIAL RESOURCES OF SPECIAL REVENUE FUNDS
  SHALL  BE PROVIDED FROM JULY FIRST, TWO THOUSAND FOURTEEN AND THEREAFTER
  FOR TRANSFER OR TEMPORARY LOAN WITHOUT SPECIFIC STATUTORY AUTHORITY  FOR
  SUCH  TRANSFER OR TEMPORARY LOAN. THE STATE COMPTROLLER SHALL BE AUTHOR-
  IZED TO LOAN SPECIAL REVENUE FUNDS MONEY ONLY AFTER  STATUTORY  APPROVAL
  FOR  SUCH  ACTION.  THE  DIRECTOR  OF  THE  DIVISION OF BUDGET SHALL NOT
  AUTHORIZE OR PROVIDE ANY CERTIFICATES OF AUTHORIZATION.  SUCH  STATUTORY
  AUTHORIZATION REQUIREMENT SHALL NOT BE SUPERSEDED, OVERRULED OR OBVIATED
  BY ANY PROVISION OF LAW CONTAINING NOTWITHSTANDING LANGUAGE.
    (B)  THE  DIVISION  OF  BUDGET,  IN  CONSULTATION WITH THE STATE COMP-
  TROLLER, SHALL DEVELOP PLANS FOR THE REPAYMENT OVER FIVE YEARS OF MONIES
  TRANSFERRED FROM SUCH SPECIAL REVENUE FUNDS TO THE GENERAL FUND.  BEFORE
  THE ADOPTION OF SUCH PLANS THE DIVISION OF BUDGET SHALL CONDUCT A SERIES
  OF PUBLIC HEARINGS IN CONJUNCTION WITH THE APPROPRIATE AGENCIES, OFFICES
  OR DEPARTMENTS ON SUCH PLANS. SUCH PLANS SHALL BE POSTED ON THE HOMEPAGE
  OF THE WEBSITE MAINTAINED BY SUCH DIVISION. IF THE  DIVISION  OF  BUDGET
  FAILS  TO PRODUCE SUCH PLANS WITHIN ONE HUNDRED EIGHTY DAYS OF AUTHORIZ-
  ING SUCH TRANSFERS, THEN THE DIVISION OF BUDGET SHALL PROVIDE NOTICE  OF
  SUCH FAILURE ON SUCH HOMEPAGE AND CONDUCT A TIMELY PUBLIC HEARING ON THE
  FAILURE  TO  PRODUCE SUCH PLANS. THE DIRECTOR OF THE BUDGET SHALL SUBMIT
  SUCH PLANS TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
  SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE
  AND  THE  CHAIRPERSON  OF  THE  ASSEMBLY WAYS AND MEANS COMMITTEE WITHIN
  FIFTEEN DAYS OF ADOPTION.
    S 2. This act shall take effect immediately.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04608-01-3