|SAME AS||No same as|
|MLTSPNSR||Barclay, Butler, Conte, Crouch, Finch, Goodell, Kolb, McLaughlin, Miller J, Oaks, Raia, Reilich, Sayward, Tenney, Thiele|
|Add S7-112, amd S4-116, El L; add SS6 & 65-a, amd SS92 & 97-rrr, St Fin L|
|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; relates to deposits to the tax stabilization reserve fund; provides that at least 10% of any surplus shall be used to pay down state debt.|
|01/10/2011||referred to election law|
|01/04/2012||referred to election law|
|06/05/2012||held for consideration in election law|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1504 SPONSOR: Tedisco (MS)
TITLE OF BILL: An act to amend the election law and the state finance law, in relation to requiring a proposition authorizing the creation of a state debt to contain an estimate of the debt service payable thereon, and the state finance law, in relation to requiring publication of an explanation of the proposition authorizing the creation of state debt, deposits to the tax stabilization reserve fund, and using surplus moneys to reduce outstanding state funded debt   PURPOSE OR GENERAL IDEA OF BILL: This bill requires that 10 percent of the surplus at the end of a fiscal year shall be used to retire the State's highest cost debt and that the amounts that are required to be deposited into the Tax Stabilization Reserve Fund be increased. In addi- tion, this bill would provide greater accuracy and understanding for the voting public by requiring a bond act in the ballot proposition to list the total debt expected and the number of years over which it will be paid. This bill also requires that any state publication, which is designed to promote awareness, must also include the estimate of the amortization period and the total anticipated debt service payable on the principal.   SUMMARY OF SPECIFIC PROVISIONS: This 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 amortization period and total expected debt service payments. Amends §4-1l6 of the Election Law to incorporate such reference in ballot publication requirements. Adds a new §6 to the State Finance Law to require that any State publications promoting awareness of, or explain- ing provisions in, such a proposition shall include the amortization and total debt information. This bill increases the amount of money at the end of the fiscal year that may be deposited into the Tax Stabilization Reserve Fund from 2 percent to 5 percent of the General Fund spending. This bill requires that 10 percent of any cash surplus at the end of a fiscal year be deposited into a new fund for the purpose of retiring the State's highest cost debt.   JUSTIFICATION: The State's debt is reaching levels that are unmanage- able; these provisions will help the State to control its level of indebtedness. Current law provides that ballot propositions must show the principal amount of proposed debt. This is extremely misleading, as the actual taxpayer cost of the debt should also include the interest to be paid over a certain number of years. 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 and the number of years over which it will be paid.   PRIOR LEGISLATIVE HISTORY: A.8450 of 2010, referred to election law. A.8450 of 2009, referred to election law. A.6791 of 2008, held for consideration in election law A.6791 of 2007, referred to election law.   FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: Immediately.
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STATE OF NEW YORK ________________________________________________________________________ 1504 2011-2012 Regular Sessions IN ASSEMBLY January 10, 2011 ___________ Introduced by M. of A. TEDISCO -- Multi-Sponsored by -- M. of A. BARCLAY, BUTLER, CONTE, CROUCH, FINCH, KOLB, J. MILLER, OAKS, RAIA, REILICH, SAYWARD, THIELE -- read once and referred to the Committee on Election Law AN ACT to amend the election law and the state finance law, in relation to requiring a proposition authorizing the creation of a state debt to contain an estimate of the debt service payable thereon, and the state finance law, in relation to requiring publication of an explanation of the proposition authorizing the creation of state debt, deposits to the tax stabilization reserve fund, and using surplus moneys to reduce outstanding state funded debt The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The election law is amended by adding a new section 7-112 2 to read as follows: 3 § 7-112. Ballots; form for proposition; additional requirements. Each 4 duly certified proposition contained on the ballot and submitted to the 5 voters of the state which provides for the creation of a state debt 6 shall contain an estimate of the anticipated number of years over which 7 such debt shall be amortized and the total expected debt service payable 8 on the principal amount of such bonds until their retirement. Such 9 information shall be printed in the largest type which is practicable to 10 use in the space provided for the proposition. Such information shall be 11 provided to the state board of elections and the secretary of state by 12 the state comptroller not later than seven days after the passage of the 13 law authorizing such proposition. 14 § 2. Subdivision 2 of section 4-116 of the election law, as amended by 15 chapter 60 of the laws of 1993, is amended to read as follows: 16 2. The state board of elections shall publish once in the week preced- 17 ing any election at which proposed constitutional amendments or other 18 propositions or questions are to be submitted to the voters of the state EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01952-01-1A. 1504 2 1 an abstract of such amendment or question, including the estimate of the 2 amortization period and the total anticipated debt service payable on 3 the principal where the proposition authorizes the creation of a state 4 debt, a brief statement of the law or proceedings authorizing such 5 submission, a statement that such submission will be made and the form 6 in which it is to be submitted. 7 § 3. The state finance law is amended by adding a new section 6 to 8 read as follows: 9 § 6. State publication concerning proposition. Any report, publica- 10 tion, pamphlet or other written document prepared by a state department, 11 agency, authority or other component or division of state government, 12 intended for distribution to the public, which is intended to promote 13 awareness of or explain the provisions contained in, or incidental to, a 14 duly certified proposition to be contained on the ballot and to be 15 submitted to the voters of the state which proposition provides for the 16 creation of a state debt shall contain therein an estimate of the antic- 17 ipated number of years over which such debt shall be amortized and the 18 total expected debt service payable on the principal amount of such 19 bonds until their retirement. Such information shall be printed in the 20 largest type which is practicable to use in such document. 21 § 4. Subdivisions 3 and 4 of section 92 of the state finance law, as 22 separately amended by chapters 405 and 957 of the laws of 1981, are 23 amended to read as follows: 24 3. At the close of each fiscal year any cash surplus remaining in the 25 general fund over and above the norm for such fiscal year shall be 26 transferred from or retained in such fund as hereinafter in this subdi- 27 vision provided. There shall be transferred to the tax stabilization 28 reserve fund all of such surplus moneys, up to and including an amount 29 equivalent to [ two-tenths] one-half of one per centum of such norm, 30 unless such transfer would increase such reserve fund to an amount in 31 excess of [ two] five per centum of the amount of the norm for such 32 fiscal year, in which event such transfer shall be limited to such 33 amount as will increase such reserve fund to such [ two] five per centum 34 limitation. Any balance of such surplus moneys, thereafter remaining in 35 the general fund, shall be retained in such fund and be available for 36 the reduction of state taxes. 37 4. In the event that at the close of any fiscal year the receipts 38 derived from the taxes, fees and other sources, required to be paid 39 during such fiscal year into the general fund of the state shall fall 40 below the norm for such fiscal year, there shall be transferred from the 41 tax stabilization reserve fund to the general fund to the extent that 42 there are sufficient moneys in the tax stabilization reserve fund, an 43 amount equal to the difference between the norm and the amount of such 44 receipts. If such transfer reduces the tax stabilization reserve fund to 45 an amount less than [ two] five per centum of the norm for such fiscal 46 year, the amount so transferred shall be repaid in cash prior to the 47 computation and payment of any transfer to the fund pursuant to subdivi- 48 sion three of this section in not less than three equal annual install- 49 ments within the period of six years or less next succeeding the date of 50 such transfer; provided, however, that if any such annual installment 51 shall increase such reserve fund to an amount in excess of [ two] five 52 per centum of the amount of the norm for the then current fiscal year, 53 such installment shall be limited to such amount as will increase such 54 reserve fund to such [ two] five per centum limitation and no further 55 repayment of the whole or any part of such transfer shall be required inA. 1504 3 1 any subsequent fiscal year. Repayments to the tax stabilization reserve 2 fund shall be stipulated in annual budget bills. 3 § 5. The state finance law is amended by adding a new section 65-a to 4 read as follows: 5 § 65-a. Use of surplus moneys to reduce outstanding state funded debt. 6 At the close of each fiscal year, at least ten percent of any cash 7 surplus remaining in the general fund after the transfer pursuant to 8 section ninety-two of this chapter shall be transferred to the debt 9 reduction reserve fund established by section ninety-seven-rrr of this 10 chapter. 11 § 6. Section 97-rrr of the state finance law, as amended by section 45 12 of part H of chapter 56 of the laws of 2000, is amended to read as 13 follows: 14 § 97-rrr. Debt reduction reserve fund. 1. There is hereby established 15 in the joint custody of the comptroller and the commissioner of taxation 16 and finance a fund to be known as the debt reduction reserve fund. [ Such17 fund shall be established as a capital projects fund.] 18 2. Such fund shall consist of all monies credited or transferred ther- 19 eto from the general fund or from any other fund or sources pursuant to 20 law. 21 3. The monies in such fund, following appropriation by the legislature 22 and allocation by the director of the budget, shall be available [ for23 the following purposes:24 (a) for the payment of principal, interest, and related expenses on25 general obligation bonds, lease purchase payments, or special contractu-26 al obligation payments, or] only for the [ purposes] purpose of retiring 27 or defeasing bonds or notes previously issued, including any accrued 28 interest thereon, for any [ state-supported bonding program or programs,29 and;30 (b) for the funding of capital projects, equipment acquisitions, or31 similar expenses which have been authorized by law to be financed32 through the issuance of bonds, notes, or other obligations] state funded 33 debt. 34 § 7. This act shall take effect immediately; provided, however that 35 provisions of section four of this act shall take effect three years 36 after it shall have become a law.