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.
Go to top

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
Go to top

A01504 Votes:

There are no votes for this bill in this legislative session.
Go to top

A01504 Memo:

BILL NUMBER:A1504

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 addition, 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 S7-112 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
S4-1l6 of the Election Law to incorporate such reference in ballot
publication requirements. Adds a new S6 to the State Finance Law to
require that any State publications promoting awareness of, or
explaining 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 unmanageable; 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.
Go to top

A01504 Text:

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

                                         1504

                              2011-2012 Regular Sessions

                                 I N  A S S E M B L Y

                                   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    S 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    S 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    S  3.  The  state  finance law is amended by adding a new section 6 to
    8  read as follows:
    9    S 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    S 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    S  5. The state finance law is amended by adding a new section 65-a to
    4  read as follows:
    5    S 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    S 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    S  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    S 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.
Go to top
Page display time = 0.1626 sec