Provides that special revenue funds shall not be transferred or loaned temporarily without specific statutory authority.
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.
STATE OF NEW YORK ________________________________________________________________________ 874 2013-2014 Regular Sessions IN 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