A01504 Summary:

BILL NO    A01504 

SAME AS    No same as 

SPONSOR    Tedisco (MS)

COSPNSR    Murray, Montesano

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.
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A01504 Actions:

BILL NO    A01504 

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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A01504 Votes:

There are no votes for this bill in this legislative session.
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A01504 Memo:

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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A01504 Text:



 
                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.
                                                                   LBD01952-01-1

        A. 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 in

        A. 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. [Such
    17  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 [for
    23  the following purposes:
    24    (a) for the payment of principal, interest, and  related  expenses  on
    25  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,  or

    31  similar  expenses  which  have  been  authorized  by  law to be financed
    32  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.
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