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A10117 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10117
 
                   IN ASSEMBLY
 
                                     March 16, 2018
                                       ___________
 
        Introduced  by  M.  of  A.  WEINSTEIN  -- (at request of the State Comp-
          troller) -- read once and referred to the Committee on Ways and Means
 
        AN ACT in relation to enacting the New  York  state  fiscal  reform  and
          accountability  act;  to  amend  the  state finance law and the public
          authorities law, in relation to contents of the state budget  and  the
          capital financing and program plan; to amend the state finance law, in
          relation  to  the  rainy day reserve fund; and to repeal section 49 of
          the state finance law, relating to the segregation of lump sum  appro-
          priations  (Part  A);  to  amend the state finance law, in relation to
          establishing the New York state capital asset and infrastructure coun-
          cil (Part B); to amend the state finance law, in relation  to  limita-
          tions  on  state-funded  debt; to repeal sections 67-a and 67-b of the
          state finance law, relating to limitations  on  state-supported  debt;
          and  providing  for  the  repeal of certain provisions upon expiration
          thereof (Part C)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act enacts into law major components of legislation
     2  which are necessary to implement the New York state  fiscal  reform  and
     3  accountability  act.  Each  component  is wholly contained within a Part
     4  identified as Parts A through C. The effective date for each  particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing the effective date of the Part, which makes a reference to a section
     8  "of  this  act", when used in connection with that particular component,
     9  shall be deemed to mean and refer to the corresponding  section  of  the
    10  Part  in  which  it  is  found. Section three of this act sets forth the
    11  general effective date of this act.
    12    § 1-a. Short title. This act shall be known and may be cited  as  "the
    13  New York state fiscal reform and accountability act".
 
    14                                   PART A

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14110-01-8

        A. 10117                            2
 
     1    Section  1.  Subdivision  5  of section 4 of the state finance law, as
     2  amended by section 16 of part PP of chapter 56 of the laws of  2009,  is
     3  amended to read as follows:
     4    5.  No  money  or  other  financial  resources shall be transferred or
     5  temporarily loaned from one fund to another or, from a public  authority
     6  to the state, another public authority or any private corporation, with-
     7  out specific statutory authorization for such transfer or temporary loan
     8  and all such transfer authorizations must include specific amounts to be
     9  transferred  and identification of the specific fund, account, or public
    10  authority from which money or other financial resources are to be trans-
    11  ferred and the specific fund, account or public authority to which money
    12  or other financial resources are to be transferred, except that money or
    13  other financial resources of a fund may be  temporarily  loaned  to  the
    14  general  fund during the state fiscal year provided that such loan shall
    15  be repaid in full no later than (a) four months after it was made or (b)
    16  by the end of the same fiscal year in which it was made, whichever peri-
    17  od is shorter, so that an  accurate  accounting  and  reporting  of  the
    18  balance of financial resources in each fund may be made. The comptroller
    19  is  hereby authorized to temporarily loan money from the general fund or
    20  any other fund to the fund/accounts that are  authorized  to  receive  a
    21  loan. Such loans shall be limited to the amounts immediately required to
    22  meet  disbursements,  made  in  pursuance of an appropriation by law and
    23  authorized by a certificate of approval issued by the  director  of  the
    24  budget  with  copies thereof filed with the comptroller and the chair of
    25  the senate finance committee and the chair  of  the  assembly  ways  and
    26  means  committee.  The  director  of  the  budget shall not issue such a
    27  certificate unless he or she shall have determined that the  amounts  to
    28  be  so  loaned  are  receivable on account. When making loans, the comp-
    29  troller shall establish appropriate accounts and  if  the  loan  is  not
    30  repaid  by  the end of the month, provide on or before the fifteenth day
    31  of the following month to the director of the budget, the chair  of  the
    32  senate  finance  committee  and the chair of the assembly ways and means
    33  committee, an accurate accounting and report of the financial  resources
    34  of  each  such  fund  at  the  end of such month. Within ten days of the
    35  receipt of such accounting and reporting, the  director  of  the  budget
    36  shall  provide  the  comptroller  and  the  chair  of the senate finance
    37  committee and the chair of the assembly  ways  and  means  committee  an
    38  expected  schedule of repayment by fund and by source for each outstand-
    39  ing loan. Repayment shall be made by the comptroller from the first cash
    40  receipt of this fund.
    41    § 2. Paragraphs a and e and  subparagraph  (v)  of  paragraph  d-2  of
    42  subdivision  3  of  section  22 of the state finance law, paragraph a as
    43  amended by chapter 762 of the laws of  1992,  and  subparagraph  (v)  of
    44  paragraph  d-2  and  paragraph  e as amended by chapter 1 of the laws of
    45  2007, are amended to read as follows:
    46    a.  The  appropriations,  including  reappropriations,  made  for  the
    47  current fiscal year, the appropriations and reappropriations recommended
    48  for  the  ensuing  fiscal  year,  the disbursements estimated to be made
    49  before the close of the current fiscal year  and  proposed  to  be  made
    50  during  the  ensuing  fiscal  year  based upon available and recommended
    51  appropriations and reappropriations, and for each item of  appropriation
    52  where the appropriation is subject to allocation by means of (i) a memo-
    53  randum of understanding, (ii) an interchange with another item of appro-
    54  priation,  (iii)  transfer  or sub-allocation to another agency, or (iv)
    55  any other method of allocating  any  appropriation  or  re-appropriation
    56  into  smaller  sums, shall state separately the appropriation amount, by

        A. 10117                            3
 
     1  program, object and purpose, and the projected  disbursement  level,  by
     2  projected  recipient  and amount of each smaller sum such item of appro-
     3  priation is projected to be allocated. Disbursements proposed to be made
     4  shall  be  shown  in  separate  parts  as  follows:  those disbursements
     5  proposed to be made for state purposes shall be set forth in  one  part,
     6  those  disbursements  proposed  to be made for local assistance shall be
     7  set forth in another separate and  distinct  part,  those  disbursements
     8  proposed  to  be made for capital projects shall be set forth in a third
     9  separate and distinct part and those disbursements proposed to  be  made
    10  for  debt  service  shall be set forth in a fourth separate and distinct
    11  part. The effect of any proposed changes in the payment dates of partic-
    12  ular disbursements on the financial plan presented  in  accordance  with
    13  subdivision one of this section shall be set forth separately.
    14    (v)  an itemized list of transfers to and from [the general fund] each
    15  governmental fund and the effect  of  such  transfers  on  programs  and
    16  activities associated with the funds from which money or other financial
    17  resources are transferred.
    18    e.  [The] For each fund type, the anticipated [general fund] quarterly
    19  schedule and fiscal year total for the prior, current and  next  ensuing
    20  three  fiscal years of: disbursements; receipts; repayments of advances;
    21  total tax refunds; and refunds for the tax imposed under  article  twen-
    22  ty-two  of  the tax law. Such information shall be presented in the same
    23  form as the summary financial plans presented in accordance with  subdi-
    24  visions  one  and  two  of this section. A separate, detailed, report of
    25  such schedule shall be provided with receipts shown by each major reven-
    26  ue category, including [detail for each major tax and  major  components
    27  of  miscellaneous  receipts, and with disbursements shown by major func-
    28  tion or program] each individual tax, each individual component part  of
    29  miscellaneous  receipts,  and  each revenue source which accounts for at
    30  least one-half of one percent of all receipts within each fund type  and
    31  with  disbursements  shown  by  major agency or major spending item. The
    32  director of the division of the budget shall submit concurrent with  the
    33  submission of the financial plan to the legislature pursuant to subdivi-
    34  sion  two  of  this  section  and  with each update thereafter a revised
    35  monthly general fund cash flow projection of receipts and  disbursements
    36  for  the  current  fiscal  year that: (1) compares actual results to (i)
    37  actual results through the same period for the prior year and  (ii)  the
    38  most recent prior update to the financial plan and to the enacted budget
    39  financial  plan;  (2)  summarizes the reasons for any variances; and (3)
    40  describes the revisions to the cash flow projections. The monthly gener-
    41  al fund cash flow projection shall be stated by major category of  local
    42  assistance,  personal service, nonpersonal service, general state charg-
    43  es, and debt service, and by major category of revenue and shall include
    44  a schedule of actual and planned disbursements by month, by agency, fund
    45  type, and program, stating separately and distinctly  variances  between
    46  actual  and  projected  fiscal  year to date disbursements and projected
    47  disbursements for the remaining months of the fiscal year. Such  reports
    48  shall  utilize  a  format  that shall facilitate comparison and analysis
    49  with those reports submitted to the legislature by the office  of  audit
    50  and  control pursuant to subdivision nine of section eight of this chap-
    51  ter.
    52    § 3. Subdivision 4 of section 23 of the state finance law, as  amended
    53  by chapter 1 of the laws of 2007, is amended to read as follows:
    54    4.  Financial plan updates. Quarterly, throughout the fiscal year, the
    55  governor shall submit to the  comptroller,  the  chairs  of  the  senate
    56  finance  and  the assembly ways and means committees, within thirty days

        A. 10117                            4
 
     1  of the close of the quarter to which it shall pertain,  a  report  which
     2  summarizes the actual experience to date and projections for the remain-
     3  ing  quarters  of  the  current fiscal year and for each of the next two
     4  fiscal  years of receipts, disbursements, tax refunds, and repayments of
     5  advances presented in forms suitable for comparison with  the  financial
     6  plan  submitted pursuant to subdivisions one, four, and five, of section
     7  twenty-two of this article including detail  for  each  individual  tax,
     8  each  individual  component  part  of  miscellaneous  receipts, and each
     9  revenue source which accounts for at least one-half of  one  percent  of
    10  all receipts within each fund type and with disbursements shown by major
    11  agency  or  major  spending  item  and  revised  in  accordance with the
    12  provisions of subdivision three of this  section.    Such  report  shall
    13  include  a  schedule  of  actual  and planned disbursements by month, by
    14  agency, fund type, and program, stating separately and distinctly  vari-
    15  ances between actual and projected fiscal year to date disbursements and
    16  projected disbursements for the remaining months of the fiscal year. The
    17  governor  shall  submit with the budget a similar report that summarizes
    18  revenue and expenditure experience  to  date  in  a  form  suitable  for
    19  comparison with the financial plan submitted pursuant to subdivision two
    20  of section twenty-two of this article and revised in accordance with the
    21  provisions  of  subdivision  three  of  this section. Such reports shall
    22  provide an explanation of the causes of any major  deviations  from  the
    23  revised financial plans and, shall provide for the amendment of the plan
    24  or plans to reflect those deviations. The governor may, if he determines
    25  it advisable, provide more frequent reports to the legislature regarding
    26  actual  experience  as  compared  to  the financial plans. The quarterly
    27  financial plan update most proximate to  October  thirty-first  of  each
    28  year shall include the calculation of the limitations on the issuance of
    29  state-supported debt computed pursuant to the provisions of subdivisions
    30  one and two of section sixty-seven-b of this chapter.  On or after Janu-
    31  ary  first,  two  thousand twenty, the enacted budget financial plan and
    32  financial plan updates submitted by the governor pursuant to this subdi-
    33  vision shall bear the financial plan program reference number or numbers
    34  to which every appropriation or reappropriation shall pertain, and shall
    35  be classified into the  same  category  as  the  associated  program  or
    36  programs  have been classified in such financial plan, and for each item
    37  of appropriation where the appropriation is  subject  to  allocation  by
    38  means  of  (i)  a  memorandum of understanding, (ii) an interchange with
    39  another item of appropriation, (iii) transfer or suballocation to anoth-
    40  er agency, or (iv) any other method of allocating any  appropriation  or
    41  reappropriation  into smaller sums, shall state separately the appropri-
    42  ation  amount,  by  program,  object  and  purpose,  and  the  projected
    43  disbursement  level,  by  projected recipient and amount of each smaller
    44  sum such item of appropriation is projected to be allocated.
    45    § 4. Section 22 of the state finance law is amended by adding two  new
    46  subdivisions 5-a and 5-b to read as follows:
    47    5-a. For each agency or public authority, by program and fund, identi-
    48  fy:
    49    (a) amounts, by appropriation or reappropriation, proposed to maintain
    50  current services;
    51    (b)  amounts, by appropriation or reappropriation, proposed to support
    52  new program initiatives, or policy changes;
    53    (c) estimated disbursements for each appropriation or  reappropriation
    54  separately identified in paragraphs (a) and (b) of this subdivision; and
    55    (d) estimated disbursements for carry-over spending for each appropri-
    56  ation, by program and fund.

        A. 10117                            5
 
     1    5-b.  Include summaries that identify disbursements, carry-over spend-
     2  ing and new spending by each agency or public authority, by program  and
     3  fund,  separately identified for state purposes, local assistance, capi-
     4  tal projects, and general state charges.
     5    §  5. Subdivision 3 of section 23 of the state finance law, as amended
     6  by chapter 1 of the laws of 2007, is amended to read as follows:
     7    3. [Financial] Preliminary  budget  assessment,  financial  plans  and
     8  capital  improvement program; revisions.  Prior to the date the legisla-
     9  ture finally acts upon the appropriation bill or bills submitted by  the
    10  governor pursuant to section three of article seven of the state consti-
    11  tution,  the governor shall cause to be submitted to the legislature and
    12  made accessible to the public, via an official or  shared  internet  web
    13  site,  a  preliminary overview of the estimated financial plan impact of
    14  revisions to the budget that occurred  between  the  submission  of  the
    15  budget  bills  by the governor and the bills, as amended by the legisla-
    16  ture, that are anticipated to be passed by both houses of  the  legisla-
    17  ture and constitute final passage of the budget which shall include, but
    18  not  be  limited  to, a description of receipts and disbursements in the
    19  general  fund  and  all  governmental  funds  as  well  as   a   general
    20  description,  by  agency  and  program  where  applicable, of changes in
    21  revenue and spending projections that occurred  between  the  governor's
    22  submission  and  action  by  the legislature. Not later than thirty days
    23  after the legislature has completed action on the budget bills submitted
    24  by the governor and the period for the governor's  review  has  elapsed,
    25  the  governor  shall  cause  to  be  submitted  to  the  legislature the
    26  revisions to the financial plans and the capital plan required by subdi-
    27  visions one, two, three, four [and], five, five-a, and five-b of section
    28  twenty-two of this article as are necessary to account  for  all  enact-
    29  ments  affecting the financial plans and the capital plan. The financial
    30  plan shall also contain a cash flow analysis of projected  receipts  and
    31  disbursements  and other financing sources or uses for each month of the
    32  state's fiscal year. Notwithstanding any other law to the contrary, such
    33  revised plans and accompanying cash flow analysis shall be submitted  to
    34  the  legislature  and  the  comptroller  in  the  same form as the plans
    35  required by such subdivisions.
    36    § 6. The state finance law is amended by adding a new section 40-b  to
    37  read as follows:
    38    §  40-b.  Appropriation  of  state  funds;  agencies  and authorities.
    39  Notwithstanding the provisions of  any  other  section  of  law  to  the
    40  contrary,  no moneys shall be paid from any fund under the management of
    41  the state, or any agency or officer thereof  for  any  state  agency  or
    42  public  authority  spending  for a state purpose or project supported in
    43  any way by state funds, including state  funded  public  authority  bond
    44  proceeds,  except  in  pursuance  of an appropriation by law and payable
    45  only upon audit and warrant of the state comptroller.
    46    § 7. Section 24 of the state finance law, as amended by chapter 762 of
    47  the laws of 1992,  subdivision 1 as amended and subdivisions 4 and 5  as
    48  added  by chapter 1 of the laws of 2007, and subdivision 2 as amended by
    49  section 2 of part O of chapter 59 of the laws of  2009,  is  amended  to
    50  read as follows:
    51    §  24.  Budget bills. 1. The budget submitted annually by the governor
    52  shall be simultaneously accompanied by a bill or bills for all  proposed
    53  appropriations  and  reappropriations  and  for the proposed measures of
    54  taxation or other legislation, if any, recommended therein.  Such  bills
    55  shall  be  submitted by the governor and shall be known as budget bills;
    56  provided,  however,  that  all   appropriations   and   reappropriations

        A. 10117                            6
 
     1  contained  in  such  budget  bills shall only contain itemized appropri-
     2  ations which shall not be in the form of lump sum appropriations.  On or
     3  after January first, two thousand twenty, every  proposed  appropriation
     4  or  reappropriation  submitted by the governor shall specifically relate
     5  to a program which is included in the financial plan presented  as  part
     6  of  the budget submitted pursuant to section twenty-two of this article.
     7  Each proposed appropriation or reappropriation for a program shall  bear
     8  the financial plan program reference number or numbers to which it shall
     9  pertain,  and  shall be classified into the same category as the associ-
    10  ated program or programs have been classified in such financial plan.
    11    (a) [For all] All non-federal state operations appropriations [,  such
    12  bill or bills shall only contain itemized appropriations and] shall  not
    13  be  made  in  form  of lump sum appropriations and shall be [made, where
    14  practicable,] itemized by agency and within each agency by  program  and
    15  within  each program at the following level of detail and in the follow-
    16  ing order:
    17    (i) by fund type, which at  a  minimum  shall  include  general  fund,
    18  special  revenue-other  funds,  capital projects funds, and debt service
    19  funds;
    20    (ii) for  personal  service  appropriations,  separate  appropriations
    21  shall  be made for regular personal service, temporary personal service,
    22  and holiday and overtime pay;
    23    (iii) for nonpersonal service appropriations, separate  appropriations
    24  shall  be made for supplies and materials, travel, contractual services,
    25  equipment, and fringe benefits, as appropriate.
    26    (b) Any appropriation for temporary assistance for needy families, the
    27  environmental protection fund, and the medical assistance program, shall
    28  only contain itemized appropriations which shall not be in the  form  of
    29  lump  sum  appropriations,  provided,  however,  for the purposes of the
    30  medical assistance program, itemized  appropriations  shall  consist  of
    31  categories-of-service  with  separate  appropriations for hospital inpa-
    32  tient, hospital outpatient and emergency  room,  clinic,  nursing  home,
    33  other  long-term  care,  managed care, pharmacy, dental, transportation,
    34  and other non-institutional services.
    35    2. (a) On or after January first,  nineteen  hundred  eighty-four,  no
    36  budget bill submitted by the governor may include any proposed appropri-
    37  ation  or  reappropriation for any capital project which is not included
    38  in the capital plan presented as part of the budget  submitted  pursuant
    39  to  section  twenty-two  of this article. Each proposed appropriation or
    40  reappropriation for a  capital  project  shall  bear  the  capital  plan
    41  project reference number or numbers to which it shall pertain, and shall
    42  be  classified  into the same category as the associated capital project
    43  or projects have been classified in such capital plan.  Reappropriations
    44  of  appropriations  effective  for fiscal years beginning prior to April
    45  first, nineteen hundred eighty-four may be presented by  the  categories
    46  of  appropriation  contained in the bill originally enacting such appro-
    47  priation.
    48    (b) On or after January first,  two  thousand  ten,  any  budget  bill
    49  submitted  by  the governor containing a proposed appropriation from the
    50  dedicated highway and bridge trust fund shall not be  made  in  form  of
    51  lump  sum  appropriations  and  shall  be itemized to show the following
    52  information for each such appropriation:
    53    (i) each amount appropriated from the  dedicated  highway  and  bridge
    54  trust fund for capital purposes;
    55    (ii)  the  amount  of  each such appropriation to be used for personal
    56  service expenses; and

        A. 10117                            7
 
     1    (iii) the amount of each such appropriation to be used for non-person-
     2  al service expenses.
     3    3.  Any  appropriation for maintenance undistributed shall be shown as
     4  apportioned among the items covered [to the extent practicable].
     5    4. Any appropriation added to such budget bills, pursuant  to  section
     6  four  of  article  seven  of  the constitution or concurrent resolution,
     7  shall only contain itemized appropriations which shall  not  be  in  the
     8  form  of lump sum appropriations, and provided further that for all non-
     9  federal state operations appropriations, such bill or bills [shall  only
    10  contain  itemized  appropriations and] shall not be made in form of lump
    11  sum appropriations and shall be [made, where practicable,]  itemized  by
    12  agency, and within each agency by program and within each program at the
    13  following level of detail and in the following order:
    14    (a)  by  fund  type,  which  at  a minimum shall include general fund,
    15  special revenue-other funds, capital projects  funds  and  debt  service
    16  funds;
    17    (b) for personal service appropriations, separate appropriations shall
    18  be  made  for  regular personal service, temporary personal service, and
    19  holiday and overtime pay;
    20    (c) for nonpersonal service  appropriations,  separate  appropriations
    21  shall  be made for supplies and materials, travel, contractual services,
    22  equipment and fringe benefits, as appropriate.
    23    5. [Any appropriation added pursuant to section four of article  seven
    24  of  the  constitution  without  designating a grantee shall be allocated
    25  only pursuant to a plan setting forth an itemized list of grantees  with
    26  the  amount  to  be  received by each, or the methodology for allocating
    27  such appropriation. Such plan shall be subject to the  approval  of  the
    28  chair  of  the  senate finance committee, the chair of the assembly ways
    29  and means committee, and the director  of  the  budget,  and  thereafter
    30  shall be included in a concurrent resolution calling for the expenditure
    31  of  such monies, which resolution must be approved by a majority vote of
    32  all members elected to each house upon a roll call vote]
    33    (a) To the extent that any appropriation or reappropriation either (i)
    34  does not identify a specific recipient, or (ii) is not subject to  allo-
    35  cation  by  a  statutory  formula, such appropriation or reappropriation
    36  must identify an administering state agency  or  public  authority  and,
    37  prior  to the disbursement of any funds so appropriated, each such state
    38  agency or public authority shall:
    39    (i) develop and execute a process in accordance with all provisions of
    40  law applicable to a program administered by a state agency whereby  each
    41  project proposed to be funded with such appropriation or reappropriation
    42  shall  be  scored  and  ranked  based on clear, measurable and objective
    43  criteria. The ranking of such projects  shall  indicate  their  relative
    44  importance in the best interest of the state;
    45    (ii)  develop  and execute a process in accordance with all provisions
    46  of law applicable to a program administered by a state agency for enter-
    47  ing into any contract or commitment for the disbursement of  such  funds
    48  which  shall  include, where appropriate, public advertising for bids or
    49  proposals, and a method for awarding contracts under each  project  that
    50  shall  permit  full  and free competition. Such method shall be based on
    51  clear, measurable and objective criteria; and
    52    (iii) identify each project to be funded with  such  appropriation  or
    53  reappropriation and the portion of such appropriation or reappropriation
    54  to be allocated to each project.
    55    (b)  Any appropriation added pursuant to section four of article seven
    56  of the constitution shall identify a specific recipient or  grantee,  or

        A. 10117                            8
 
     1  shall  be  subject  to  allocation  by  a statutory formula, or shall be
     2  subject to allocation pursuant to the provisions  of  paragraph  (a)  of
     3  this subdivision.
     4    § 8. Section 49 of the state finance law is REPEALED.
     5    §  9. The state finance law is amended by adding a new section 24-a to
     6  read as follows:
     7    § 24-a. Budget director;  spending  transparency  report.  The  budget
     8  director  shall  report  annually  to the legislature, the office of the
     9  state comptroller and the public on all spending for which an  appropri-
    10  ation does not provide either a specific recipient and/or the allocation
    11  of  an  appropriation  is  not provided for through a statutory formula,
    12  including, but not limited to the allocation of lump sum  appropriations
    13  and other discretionary funds, identifying, by appropriation, the amount
    14  allocated  by  project, the selection process and criteria used, overall
    15  scoring and ranking of  projects  evaluated,  and  each  funded  project
    16  score. Such report shall also provide the final allocation of any appro-
    17  priation  subject  to  allocation by means of (i) a memorandum of under-
    18  standing, (ii) an interchange with another item of appropriation,  (iii)
    19  transfer or suballocation to another agency, or (iv) any other method of
    20  allocating  an appropriation into smaller sums, identifying disbursement
    21  information by agency, fund and program with project-level detail.  Such
    22  report  shall  also  include  the  fiscal and programmatic impact of any
    23  executed transfers between funds and/or public authorities  on  programs
    24  and activities associated with such funds and/or public authorities from
    25  which  money  or  other financial resources are transferred and to which
    26  money or financial resources are transferred.
    27    § 10. The public authorities law is amended by adding  a  new  section
    28  2801-a to read as follows:
    29    §  2801-a.  Quarterly  reports  by  authorities. 1. State authorities.
    30  Every state authority or commission heretofore or hereafter continued or
    31  created by this chapter or any other chapter of the laws of the state of
    32  New York shall submit quarterly to the governor, the chair  and  ranking
    33  minority  member  of the senate finance committee, the chair and ranking
    34  minority member of the assembly ways  and  means  committee,  the  state
    35  comptroller  and the authorities budget office, for their information, a
    36  report on the expenditure of funds pursuant to an appropriation  by  the
    37  state,  including identifying, by appropriation, the amount allocated by
    38  project, the selection  process  and  criteria  used,  and  each  funded
    39  project  score,  as  well as the overall scoring and ranking of projects
    40  evaluated.
    41    2. Local authorities. Every local authority  heretofore  or  hereafter
    42  continued or created by this chapter or any other chapter of the laws of
    43  the  state  of  New  York  shall submit quarterly to the chief executive
    44  officer, the chief fiscal officer, the chairperson  of  the  legislative
    45  body  of  the  local  government or governments, the office of the state
    46  comptroller and the authorities budget office for their  information,  a
    47  report  on  the expenditure of funds pursuant to an appropriation by the
    48  state, including identifying, by appropriation, the amount allocated  by
    49  project,  the  selection  process  and  criteria  used,  and each funded
    50  project score, as well as the overall scoring and  ranking  of  projects
    51  evaluated.
    52    §  11. Section 51 of the public authorities law is amended by adding a
    53  new subdivision 6 to read as follows:
    54    6. The board shall make accessible to the public, via its official  or
    55  shared  internet  web  site,  by  meeting date, all resolutions, project
    56  descriptions, board materials and project lists, for at least ten years.

        A. 10117                            9
 
     1    § 12. Subdivisions 1 and 2 of section 92-cc of the state finance  law,
     2  subdivision  1 as added by chapter 1 of the laws of 2007 and subdivision
     3  2 as amended by section 12-a of part I of chapter  60  of  the  laws  of
     4  2015, are amended and new subdivision 2-a is added to read as follows:
     5    1.  a.  There is hereby established in the state treasury a fund to be
     6  known as the "rainy day reserve fund". Such fund shall consist of moneys
     7  deposited therein and monies shall be withdrawn from such fund only  for
     8  the purposes as provided therein.
     9    b. For the purposes of this subdivision, "cash surplus" shall mean the
    10  positive amount by which, at of the close of each fiscal year, the total
    11  general  fund  balance  exceeds the general fund balance as projected in
    12  the enacted budget financial plan.
    13    2. Such fund shall have a maximum balance not to exceed  [five]  eight
    14  per  centum  of  the aggregate amount projected to be disbursed from the
    15  general fund during the fiscal year immediately following the  then-cur-
    16  rent  fiscal  year.  [At the request of the director of the budget, the]
    17  The state comptroller shall transfer monies to  the  rainy  day  reserve
    18  fund  [up  to  and  including]  in an amount equivalent to [seventy-five
    19  one-hundredths of one per centum of the aggregate amount projected to be
    20  disbursed from the general fund during the then-current fiscal year] the
    21  cash surplus, provided,  however,  that  in  cases  where  tax  receipts
    22  received  in  all governmental funds and miscellaneous receipts received
    23  in the general fund for the immediately preceding fiscal year  decreased
    24  or  did  not  increase  or  decrease from the fiscal year preceding such
    25  year, the state comptroller shall  transfer  monies  to  the  rainy  day
    26  reserve  fund  at  the request of the director of the budget unless such
    27  transfer would increase the rainy day  reserve  fund  to  an  amount  in
    28  excess  of  [five] eight per centum of the aggregate amount projected to
    29  be disbursed from the general fund during the  fiscal  year  immediately
    30  following  the  then-current  fiscal  year, in which event such transfer
    31  shall be limited to such amount as will increase the rainy  day  reserve
    32  fund to such [five] eight per centum limitation.
    33    2-a.  At  the close of each fiscal year, any cash surplus remaining in
    34  the general fund after transfers pursuant to section ninety-two of  this
    35  article  and  this  section  shall  be  deposited  in the debt reduction
    36  reserve fund established pursuant to section  ninety-seven-rrr  of  this
    37  article.
    38    § 13. This act shall take effect immediately.
 
    39                                   PART B
 
    40    Section 1. The state finance law is amended by adding a new article 17
    41  to read as follows:
    42                                 ARTICLE 17
 
    43           NEW YORK STATE CAPITAL ASSET AND INFRASTRUCTURE COUNCIL
 
    44  Section 250. Definitions.
    45          251. New  York  state  capital asset and infrastructure council;
    46                 creation; procedure.
    47          252. Powers and duties.
    48    § 250. Definitions. As used in this article, the following terms shall
    49  have the following meanings:
    50    1. "Capital assets" shall mean fixed assets and infrastructure assets,
    51  including, but not limited to, land, buildings,  equipment,  roads,  and
    52  bridges  of the state, a state agency or state authority, and shall also

        A. 10117                           10
 
     1  include any capital asset of a local authority  or  a  municipal  corpo-
     2  ration  that,  in  the  judgment of the New York state capital asset and
     3  infrastructure council is significantly funded by state monies.
     4    2.  "Council"  shall mean the New York state capital asset and infras-
     5  tructure council established pursuant to section two  hundred  fifty-one
     6  of this article.
     7    3.  "Construction"  shall  mean the erection, acquisition, alteration,
     8  reconstruction, repair, rehabilitation, improvement, equipping, enlarge-
     9  ment or extension of a capital asset, including land acquisition and the
    10  engineering, architectural, legal, fiscal and  economic  investigations,
    11  studies,  surveys,  designs, plans, drawings, specifications, procedures
    12  and other actions relating to a capital asset.
    13    4. "Local authority" shall mean:
    14    (a) a public authority or public benefit  corporation  created  by  or
    15  existing  under this chapter or any other law of the state whose members
    16  do not hold a civil office of the state, are not appointed by the gover-
    17  nor or are appointed by the governor specifically upon  the  recommenda-
    18  tion of the local government or governments;
    19    (b)  a  not-for-profit  corporation  affiliated with, sponsored by, or
    20  created by a county, city, town or village government;
    21    (c) a local industrial development agency or authority or other  local
    22  public benefit corporation; or
    23    (d) an affiliate or subsidiary of such local authority.
    24    5.  "State  authority" shall mean a public authority or public benefit
    25  corporation created by or existing under this chapter or any  other  law
    26  of  the state, with one or more of its members appointed by the governor
    27  or who serve as members by virtue of  holding  a  civil  office  of  the
    28  state,  other  than  an  interstate or international authority or public
    29  benefit corporation, including subsidiaries of such public authority  or
    30  public benefit corporation.
    31    6. "Maintenance" shall mean any regularly scheduled activity including
    32  a  routine  repair  intended to ensure that a capital asset continues to
    33  operate safely and efficiently and as intended.
    34    7. "Municipal corporation" shall mean a county, city, town or  village
    35  and shall include any special district therein.
    36    8.  "Rehabilitation" shall mean an action to extend the useful life or
    37  improve the effectiveness of an existing capital asset.
    38    § 251. New  York  state  capital  asset  and  infrastructure  council;
    39  creation;  procedure. 1. Within the executive department there is hereby
    40  established an independent council to be known as  the  New  York  state
    41  capital asset and infrastructure council to have and exercise the powers
    42  and duties provided by the provisions of this article.
    43    2. The purpose of the council is to develop and implement a process to
    44  identify,  monitor,  plan, recommend, and publicly report on all capital
    45  assets of state agencies and state authorities and, in the discretion of
    46  the council, local authorities and  municipal  corporations,  to  ensure
    47  that  the  capital  assets  meet current and future needs of the public,
    48  facilitate economic growth, are maintained in a good operating condition
    49  that ensures public safety, and are developed or modified in a sustaina-
    50  ble manner as provided by the provisions of this article.
    51    3. The council shall consist of five members appointed by  the  gover-
    52  nor,  one  of  whom  shall  be  appointed upon the recommendation of the
    53  temporary president of the senate, one of whom shall be  appointed  upon
    54  the recommendation of the speaker of the assembly, and one of whom shall
    55  be  appointed  upon  the  recommendation  of the comptroller. One of the
    56  members shall be designated as chair by the governor. Each member of the

        A. 10117                           11
 
     1  council shall have experience in one or more of the fields of economics,
     2  public administration, civil engineering, public works, construction  or
     3  a  related  design  profession,  planning,  public investment financing,
     4  environmental  engineering  or  water  resources  engineering.  The  two
     5  members first appointed by the governor without  the  recommendation  of
     6  any  other state official shall serve an initial term of four years; the
     7  member first appointed upon the recommendation of the  temporary  presi-
     8  dent  of  the  senate  shall  serve  an initial term of three years; the
     9  member first appointed upon the recommendation of  the  speaker  of  the
    10  assembly  shall  serve  an  initial  term of three years; and the member
    11  first appointed upon the recommendation of the state  comptroller  shall
    12  serve  an  initial  term  of  two  years.  Upon expiration of a member's
    13  initial term, each subsequent term shall be for a period of four years.
    14    4. Notwithstanding any inconsistent provision of law,  no  officer  or
    15  employee of the state, of any political subdivision of the state, of any
    16  governmental  entity  operating  any public school or college, or of any
    17  other public agency or instrumentality or unit of government which exer-
    18  cises governmental powers under the laws of  the  state,  shall  forfeit
    19  such  office  or  employment by reason of acceptance or appointment as a
    20  member, representative, officer, employee or agent of the council.   The
    21  members,  their representatives, officers and staff to the council shall
    22  be deemed employees within the  meaning  of  section  seventeen  of  the
    23  public officers law.
    24    5.  The  members of the council shall serve without salary or per diem
    25  allowance but shall be entitled to reimbursement for actual  and  neces-
    26  sary  expenses  incurred  in  the  performance  of their official duties
    27  pursuant to this article;  provided,  however,  that  such  members  and
    28  representatives  are not, at the time such expenses are incurred, public
    29  employees otherwise entitled to such reimbursement.
    30    § 252. Powers and duties. 1. The council shall have the power to:
    31    (a) hold such hearings, meet and act at such times  and  places,  take
    32  such  testimony,  administer such oaths or affirmations and receive such
    33  evidence as the council considers advisable to carry out  its  responsi-
    34  bilities;
    35    (b)  require  the production of any books, and collection and compila-
    36  tion of data deemed relevant or material to any review undertaken pursu-
    37  ant to its purpose under this article;
    38    (c) request and receive from any department, division, board,  commis-
    39  sion  or  other  agency  of  the state, including any state authorities,
    40  local authorities and municipal corporations  any  relevant  information
    41  necessary  to carry out the responsibilities and provisions set forth in
    42  this article;
    43    (d) enter into cooperative agreements with other  government  offices,
    44  state  agencies,  state  authorities,  local  authorities  and municipal
    45  corporations to efficiently support the work of the  council  and  carry
    46  out its responsibilities;
    47    (e) have direct input and prompt access to the head of any state agen-
    48  cies,  state  authorities,  local authorities and municipal corporations
    49  and any member and employee thereof when  necessary  or  useful  in  the
    50  performance of the duties or responsibilities of the council;
    51    (f)  issue  such reports and other documents as the council determines
    52  to be necessary or advisable; and
    53    (g) advise and make recommendations to the governor, the  legislature,
    54  the  comptroller,  and other agencies, state authorities, local authori-
    55  ties and municipal corporations of the state on  matters  affecting  the
    56  condition of the capital assets within the state.

        A. 10117                           12
 
     1    2.  The  council  shall identify the capital assets located within the
     2  state on a periodic basis and assess the condition of the assets by:
     3    (a)  developing  uniform criteria and procedures for use in conducting
     4  inventories and assessments, including formal standards defining a state
     5  of good repair and replacement cycles for capital assets, and  standards
     6  requiring clear justification in terms of rigorous economic analysis for
     7  proposed new capital investments or expansions;
     8    (b) inventorying all existing capital assets using to the extent prac-
     9  ticable, existing inventories available from all sources; where existing
    10  inventories  are  not  available, a process for state agencies and state
    11  authorities and, in the discretion of the council, local authorities and
    12  municipal corporations, to inventory all existing capital assets will be
    13  developed subject to approval of the council; and
    14    (c) assessing the condition  of  capital  assets,  including  but  not
    15  limited  to changes in the condition of those capital assets as compared
    16  with preceding years and identification of needed improvements.
    17    3. The council shall develop recommendations  based  on  comprehensive
    18  studies  and  assessments undertaken pursuant to subdivision two of this
    19  section, and shall report its findings and recommendations to the gover-
    20  nor, the legislature and the comptroller not later than June  fifteenth,
    21  two  thousand  twenty,  and  annually  thereafter,  and  shall make such
    22  reports accessible to the public, via its official  or  shared  internet
    23  web site. The recommendations of the council shall include:
    24    (a)  proposed improvements in prioritizing the planning and funding of
    25  capital asset investments;
    26    (b) improved procedures for ensuring that  state  agencies  and  state
    27  authorities and, in the discretion of the council, local authorities and
    28  municipal  corporations  replace assets on regular replacement schedules
    29  according to reliable estimates of their useful lives; and
    30    (c) improvements in criteria and procedures that may be used by  state
    31  agencies  and  state  authorities and, in the discretion of the council,
    32  local authorities and municipal corporations, in:
    33    (i) determining the capacity of capital assets to sustain current  and
    34  anticipated  economic  development  and competitiveness, including long-
    35  term economic growth, including the potential return on  investments  in
    36  new capital assets as opposed to investments in existing capital assets;
    37    (ii)  maintaining  data  in  a  form that is readily accessible to the
    38  public;
    39    (iii) the methods used to finance the construction, acquisition, reha-
    40  bilitation and maintenance of capital assets;
    41    (iv) comprehensive investment requirements, by type of capital  asset,
    42  that  are necessary to maintain the current condition and performance of
    43  the capital assets and the investment needed to improve  capital  assets
    44  in the future;
    45    (v)  trends  or  innovations  in construction methods or materials for
    46  capital assets;
    47    (vi) the impact of local development patterns on demand for funding of
    48  capital assets;
    49    (vii) the impact of deferred maintenance; and
    50    (viii) the impact of deteriorated capital assets.
    51    4. The council shall report updated findings and recommendations in  a
    52  manner  consistent  with  the  provisions  of  subdivision three of this
    53  section, to be known  as  the  "comprehensive  statewide  capital  needs
    54  assessment". Such reports shall be issued not later than the last day of
    55  the  calendar  year  following  the year in which the report required by

        A. 10117                           13
 
     1  subdivision three of this section is issued and, thereafter, on an annu-
     2  al basis.
     3    5.  (a)  The council shall issue a comprehensive twenty year strategic
     4  plan for capital needs encompassing  necessary  maintenance  activities,
     5  scheduled asset replacement and expansion, the status of current capital
     6  activities, and related financing. The long-term strategic plan shall be
     7  developed  based on the capital projects identified in the comprehensive
     8  statewide capital needs assessment and future capital project  needs  of
     9  the state, with clear interim goals and benchmarks.
    10    (b)  The  long-term  strategic plan shall be updated and revised every
    11  even-numbered year, and issued  simultaneously  with  the  comprehensive
    12  statewide capital needs assessment of that year.
    13    §  2.  The opening paragraph of section 22-c of the state finance law,
    14  as amended by section 3 of part F of chapter 389 of the laws of 1997, is
    15  amended to read as follows:
    16    The governor shall  annually  submit  to  the  legislature  a  capital
    17  program  and  financing  plan  concurrent  with the executive budget, in
    18  addition to the information required by section twenty-two of this arti-
    19  cle. The plan, along with capital appropriations proposed in the  execu-
    20  tive  budget  or enacted by the legislature, shall derive from the long-
    21  term strategic plan established  by  subdivision  five  of  section  two
    22  hundred  fifty-two  of  this  chapter.  Any deviation from the long-term
    23  strategic plan must be justified. The plan shall contain a comprehensive
    24  assessment of the capital assets and program needs of  all  state  agen-
    25  cies,  a review and analysis of how such requirements would be financed,
    26  an analysis of the affordability of state-supported debt, and an  analy-
    27  sis of all costs related to the financing of such plan.
    28    § 3. This act shall take effect immediately.
 
    29                                   PART C
 
    30    Section  1.  Sections  67-a  and  67-b  of  the  state finance law are
    31  REPEALED and five new sections 67-a, 67-b, 67-b-1, 67-b-2 and  67-d  are
    32  added to read as follows:
    33    § 67-a. Definitions. As used in this article the following terms shall
    34  have the following meanings:
    35    1. "State debt" shall mean all bonds, bond anticipation notes, tax and
    36  revenue  anticipation  notes  and revenue debt issued by the comptroller
    37  pursuant to article five of this chapter.
    38    2. "State-backed debt" shall mean any debt or obligation,  other  than
    39  state  debt,  that  is  supported  in  whole or in part by any financing
    40  arrangement whereby the state agrees or has in the past agreed,  whether
    41  by  law,  contract  or  otherwise,  to make payments which will be used,
    42  directly or indirectly,  for  the  payment  of  principal,  interest  or
    43  related  payments  on  indebtedness  incurred or contracted by the state
    44  itself for any purpose, or by any state agency,  municipality,  individ-
    45  ual,  public  authority  or  other  public or private corporation or any
    46  other entity for state capital  or  operating  purposes  or  to  finance
    47  grants,  loans  or other assistance payments made or to be made by or on
    48  behalf of the state for any purpose. If the state agrees or  has  agreed
    49  on  or  after  April first, nineteen hundred ninety-seven to make future
    50  revenues from a specific state  source  available  for  the  purpose  of
    51  supporting  debt  of  any  municipality, individual, public authority or
    52  other public or private corporation or any other entity, or,  if  on  or
    53  after  such  date,  a  program  of debt is authorized to be issued where
    54  state aid is intended to be the sole source of payment of debt  service,

        A. 10117                           14
 
     1  such  debt shall be considered to be a debt for the purpose of financing
     2  a state grant, loan or other assistance payment and shall be  a  "state-
     3  backed  debt"  for  the purposes of this article. The term "state-backed
     4  debt"  applies  to all debt or obligations described in this subdivision
     5  for which the state agrees, or has in the past agreed, to make  payments
     6  (a)  whether  or  not  the  obligation  of the state to make payments is
     7  subject to appropriation, or (b) whether or not debt service  is  to  be
     8  paid  from  a  revenue  stream transferred by the state to another party
     9  that is responsible for making such payments.
    10    3. "State-funded debt" shall mean the  combined  total  of  all  state
    11  debt,  as  defined  in  subdivision  one of this section, and all state-
    12  backed debt except short term debt incurred in accordance  with  section
    13  nine  of  article  seven of the constitution, and shall include all debt
    14  outstanding on the effective date of this section.
    15    4. "State-supported debt" shall mean any  bonds  or  notes,  including
    16  bonds  or  notes  issued  to  fund  reserve funds and costs of issuance,
    17  issued by the state or a state public corporation for which the state is
    18  constitutionally obligated to pay debt service or is contractually obli-
    19  gated to pay debt service subject to an appropriation, except where  the
    20  state has a contingent contractual obligation.
    21    5.  "Revenue debt" shall mean state debt issued by the comptroller and
    22  supported by future revenues from a specific state source.
    23    6. "Total personal income of the state" shall mean the  most  recently
    24  published estimated dollar amount determined as total personal income of
    25  the state of New York by the United States department of commerce or any
    26  successor  agency  for the four most recent successive calendar quarters
    27  for which information is available prior to October thirty-first of each
    28  year. Subsequent revisions of the published estimated dollar amount  for
    29  such  calendar  quarters  shall  not affect the validity of the determi-
    30  nation made for any fiscal year.
    31    7. "Capital work or purpose" shall mean any project involving:
    32    (a) the acquisition, construction,  demolition  or  replacement  of  a
    33  fixed asset or assets;
    34    (b)  the major repair or renovation of a fixed asset, which materially
    35  extends its useful life or materially improves or increases its  capaci-
    36  ty; or
    37    (c)  the  planning or design of the acquisition, construction, demoli-
    38  tion, replacement, major repair or renovation of a fixed asset,  includ-
    39  ing  the  preparation  and  review of plans and specifications including
    40  engineering and other services, field surveys and  sub-surface  investi-
    41  gations incidental thereto.
    42    8.  "Conduit debt obligation" shall mean a debt obligation issued by a
    43  public authority (the "conduit issuer") on behalf of a third party  (the
    44  "conduit  borrower")  other than the state or a political subdivision of
    45  the state, where payment of the obligation is to be made from  funds  of
    46  the  conduit  borrower, the security for the obligation is the credit of
    47  the conduit borrower and no funds of the conduit issuer, the state or  a
    48  political subdivision of the state are pledged to secure the obligation,
    49  whether  or not the obligation of the conduit issuer, the state or poli-
    50  tical subdivision of the state is subject to appropriation or is  other-
    51  wise contingent.
    52    §  67-b.  Duties  with  respect  to state-funded debt. 1. On or before
    53  October thirty-first, two thousand twenty-seven and on or before October
    54  thirty-first of each year thereafter, the division of budget shall  have
    55  the  responsibility  to  determine  the total debt limit of the state by

        A. 10117                           15
 
     1  calculating the dollar amount equivalent to five percent  of  the  total
     2  personal income of the state.
     3    2. On or before October thirty-first, two thousand twenty-seven and on
     4  or  before October thirty-first of each year thereafter, the division of
     5  budget shall determine the total debt limit of the state,  and  pursuant
     6  to  section  sixty-seven-b-two  of this article for the next fiscal year
     7  and determine whether the total  principal  amount  of  additional  debt
     8  projected  to  be  incurred  in  the next fiscal year, together with the
     9  total principal amount of state-funded debt already outstanding is equal
    10  to or greater than the debt limit, and report such information by  Octo-
    11  ber  thirty-first, to the temporary president of the senate, the speaker
    12  of the assembly, the chairperson and  ranking  minority  member  of  the
    13  senate finance committee, the chairperson and ranking minority member of
    14  the assembly ways and means committee, and the comptroller. On or before
    15  such  date,  the division of budget shall issue a public announcement of
    16  such limit.
    17    3. The executive's proposed budget for state fiscal year two  thousand
    18  nineteen--two  thousand  twenty  shall  include a plan setting forth the
    19  annual target percentages and methodology for the implementation of  the
    20  provisions of subdivision one of section sixty-seven-b-two of this arti-
    21  cle  by  April  first, two thousand twenty-eight. A progress report with
    22  respect to meeting annual target percentages in the plan shall be issued
    23  annually by the executive with release of the proposed  budget  and,  in
    24  the event the actual percentages deviate from the target percentages set
    25  forth  in  the  initial plan, shall include an explanation of such devi-
    26  ations and the proposed remedial actions deemed necessary to  meet  such
    27  target percentages by April first, two thousand twenty-eight.
    28    § 67-b-1. Limitations on the issuance of state-supported debt.  1. (a)
    29  State-supported  debt  may  not  be contracted for unless, as of October
    30  thirty-first, two thousand one and as of each October thirty-first ther-
    31  eafter, the total outstanding principal amount of such debt, as  of  the
    32  last  day  of  the  immediately  preceding fiscal year, is less than the
    33  designated percentage of the total personal income of the state. Nothing
    34  shall preclude the contracting of state-supported debt prior to  October
    35  thirty-first  of  each  year  if,  as of the last day of the immediately
    36  preceding fiscal year, the total outstanding principal  amount  of  such
    37  debt  was  less  than  the  designated  percentage of the total personal
    38  income of the state. The total  outstanding  principal  amount  of  debt
    39  shall  include all state-supported debt issued on and after April first,
    40  two thousand. Such designated percentage shall be  seven  and  one-half-
    41  tenths  of  one  percent for fiscal year two thousand--two thousand one,
    42  and shall increase by five-tenths of one  percent  in  fiscal  year  two
    43  thousand  one--two  thousand  two,  by  an additional four-tenths of one
    44  percent in fiscal year two thousand two--two thousand three, and  by  an
    45  additional  one-third  of  one  percent  in each of the seven subsequent
    46  fiscal years. The designated percentage for  fiscal  year  two  thousand
    47  ten--two  thousand  eleven  and for each fiscal year thereafter shall be
    48  four percent.
    49    (b) If state-supported debt is issued to refund  or  otherwise  affect
    50  the   refunding,   retirement  or  defeasance  of  state-supported  debt
    51  originally issued on and after April first, two thousand, provided  such
    52  refundings  are conducted in accordance with section thirteen of article
    53  seven of the constitution, the  calculation  of  the  total  outstanding
    54  principal  amount  of  debt shall exclude such refunding debt, and shall
    55  only include the amount of prior refunded debt,  as  if  it  were  still
    56  outstanding,  in each year until such refunding debt is finally retired.

        A. 10117                           16
 
     1  Notwithstanding the foregoing, the provisions of such  section  thirteen
     2  of  article  seven  of  the  constitution relating to the maintenance or
     3  management of escrow funds and sinking funds shall only be applicable to
     4  state-supported debt issued by the state comptroller. If state-supported
     5  debt  is  issued to refund or otherwise affect the refunding, retirement
     6  or defeasance of state-supported debt issued prior to April  first,  two
     7  thousand,  then the amount of such refunding debt shall be excluded from
     8  the calculation of the total outstanding principal  amount  of  debt  in
     9  each  year until such refunding debt is finally retired. In addition, if
    10  state-supported debt is retired or defeased with payments in any  fiscal
    11  year made by the state that are not required by mandatory payments, such
    12  debt  shall  be  excluded  from the calculation of the total outstanding
    13  principal amount of debt, including retirements  or  defeasances  accom-
    14  plished on an economic basis.
    15    2.  State-supported debt may not be contracted for unless, as of Octo-
    16  ber thirty-first, two thousand one and as of each  October  thirty-first
    17  thereafter,  the  total  amount  of interest, installments of principal,
    18  contributions to sinking funds, and related payments on a cash basis  of
    19  accounting  for state-supported debt in the immediately preceding fiscal
    20  year is less than the designated percentage of total governmental  funds
    21  receipts for such fiscal year. Nothing shall preclude the contracting of
    22  state-supported  debt  prior to October thirty-first of each year if, in
    23  the immediately preceding fiscal year, the  total  amount  of  interest,
    24  installments  of  principal, contributions to sinking funds, and related
    25  payments was less than the designated percentage of  total  governmental
    26  funds  receipts. This shall include the total amount of payments on such
    27  debt issued on and after  April  first,  two  thousand,  but  shall  not
    28  include  payments  in  any  fiscal  year made by the state to defease or
    29  retire debt not required by mandatory payments nor payments made by  the
    30  state  for  debt  issued  to  refund debt that was issued prior to April
    31  first, two thousand. In addition, if state-supported debt is  issued  to
    32  refund  or  otherwise  affect the refunding, retirement or defeasance of
    33  state-supported debt originally issued on and  after  April  first,  two
    34  thousand,  provided  such  refundings  are  conducted in accordance with
    35  section thirteen of article seven of the constitution,  the  calculation
    36  of  the  total  amount  of interest, installments of principal, contrib-
    37  utions to sinking funds, and related  payments  shall  exclude  payments
    38  made  on such refunding debt, and shall only include the payments on the
    39  prior refunded debt, as if it were still outstanding, in each year until
    40  such refunding debt is finally retired. Such designated percentage shall
    41  be seven and one-half-tenths of one percent for fiscal  year  two  thou-
    42  sand--two thousand one, and shall increase by five-tenths of one percent
    43  in  fiscal  year  two  thousand  one--two thousand two, by an additional
    44  four-tenths of one percent in fiscal year two thousand two--two thousand
    45  three, and by an additional one-third of one percent in each of the  ten
    46  subsequent  fiscal  years. The designated percentage for fiscal year two
    47  thousand thirteen--two thousand fourteen and for each fiscal year there-
    48  after shall be five percent.
    49    § 67-b-2. Limitations on state-funded debt. 1.  No  additional  state-
    50  funded  debt  shall  be incurred after April first, two thousand twenty-
    51  eight if the total principal amount of such additional debt projected to
    52  be incurred in such year, together with the total  principal  amount  of
    53  state-funded  debt  already  outstanding is equal to or greater than the
    54  total debt limit of the state excluding  short  term  debt  incurred  in
    55  accordance  with section nine of article seven of the constitution, debt

        A. 10117                           17
 
     1  incurred in accordance with section ten of article seven of the  consti-
     2  tution, and refunding debt.
     3    2.  With  the exception of short term debt incurred in accordance with
     4  section nine of article seven of  the  constitution,  debt  incurred  in
     5  accordance  with  section  ten of article seven of the constitution, and
     6  refunding debt, no state-funded debt shall be incurred except to finance
     7  a capital work or purpose. No such state-funded debt shall  be  incurred
     8  if the total principal amount of such debt together with the total prin-
     9  cipal  amount  of  such  debt already outstanding is equal to or greater
    10  than the total debt limit of the state.
    11    3. All debt subject to  the  provisions  of  this  section  shall,  if
    12  incurred on or after the first day of the first fiscal year beginning at
    13  least  one  year  after  the effective date of an amendment adding a new
    14  subdivision six to section eleven of article seven of the  constitution,
    15  be in the form of obligations issued by the comptroller.
    16    4. No state-funded debt shall be incurred in the form of an obligation
    17  with a final maturity exceeding the probable life of the capital project
    18  financed  by  such debt, as specified in section sixty-one of this chap-
    19  ter. Notwithstanding any other provision of  law  to  the  contrary,  no
    20  state-funded  debt shall be incurred in the form of an obligation with a
    21  final maturity of more than thirty years.
    22    5. No state-funded debt outstanding on  the  effective  date  of  this
    23  subdivision  shall be refunded unless such refunding is conducted in all
    24  respects as if subject to the provisions of section thirteen of  article
    25  seven  of  the  constitution. Such outstanding debt obligations shall be
    26  included in the determination of the debt limit.  For  the  purposes  of
    27  this  subdivision and section sixty-seven-d of this article, any refund-
    28  ing debt that does not extend beyond the  final  maturity  of  the  debt
    29  being  refunded  shall be deemed to be in compliance with the provisions
    30  of subdivision six of section thirteen of article seven of the constitu-
    31  tion made applicable by this subdivision if  there  is  an  actual  debt
    32  service savings in every year to maturity as a result of the issuance of
    33  the refunding debt.
    34    6.  Any  refunding  obligations issued pursuant to subdivision five of
    35  this section on or after the first day of the first fiscal  year  begin-
    36  ning  at  least  one  year  after  the effective date of an amendment to
    37  section eleven of article seven of the constitution imposing a limit  on
    38  the total amount of state debt shall be issued by the comptroller.
    39    § 67-d. Prohibition of contingent obligation debt. After the effective
    40  date  of  this  section,  the  state  shall  not, except as specifically
    41  authorized by a provision of the constitution other than section  eleven
    42  of article seven, agree to make payments, directly or indirectly, wheth-
    43  er or not subject to appropriation, that are to be available to pay debt
    44  service  on  any  debt  incurred  by  a municipality, individual, public
    45  authority or other public or private corporation or  any  other  entity,
    46  for  any  purpose,  if such payments are expected to be used to pay debt
    47  service only if other sources available for the payment of debt  service
    48  are inadequate. Any provision requiring the state to replace monies used
    49  to  pay  debt  service shall be included in the prohibition set forth in
    50  this subdivision. Outstanding debt that  would  be  prohibited  by  this
    51  section  may  be  refunded  by  the entity that incurred the outstanding
    52  debt.
    53    § 2. Paragraph i of subdivision 3 of section 22 of the  state  finance
    54  law,  as amended by chapter 1 of the laws of 2007, is amended to read as
    55  follows:

        A. 10117                           18
 
     1    i. A statement setting forth state involvement  in  the  fiscal  oper-
     2  ations of those public authorities and public benefit corporations which
     3  may  be  part  of the development of a comprehensive state budget system
     4  and provided therefor in the state financial plan. Such statement  shall
     5  include  those  public  authorities and public benefit corporations with
     6  disbursements which are not currently reflected  in  the  state  central
     7  accounting  system  from  proceeds  of  any notes or bonds issued by any
     8  public authority, and which  bonds  or  notes  would  be  considered  as
     9  [state-supported]  state-funded debt as defined in section sixty-seven-a
    10  of this chapter. Such statement shall set forth the amount of all of the
    11  bonds, notes and other obligations  of  each  public  authority,  public
    12  benefit  corporation and all other agencies and instrumentalities of the
    13  state for which the full faith and credit of the state has been  pledged
    14  or  on  account of which the state has by law given its pledge or assur-
    15  ance for the continued operation and solvency of the  authority,  public
    16  corporation,  or  other  agency  or instrumentality of the state, as the
    17  case may be. Such statement shall also set forth all proposed  appropri-
    18  ations  to  be made to any public authority, public benefit corporation,
    19  and any other agency or instrumentality of  the  state  which  has  been
    20  created  or continued by law and which is separate and distinct from the
    21  state itself.
    22    § 3. Paragraph b of subdivision 15 of section 22 of the state  finance
    23  law,  as  added  by chapter 1 of the laws of 2007, is amended to read as
    24  follows:
    25    b. The capital  program  and  financing  plan  submitted  pursuant  to
    26  section  twenty-two-c  of  this article, and the update thereto required
    27  pursuant to section twenty-three of this article, shall include a report
    28  on the management of [state-supported] state-funded  debt.  Such  report
    29  may include, but is not limited to: (1) an assessment of the affordabil-
    30  ity  of state debt, including debt as a percent of personal income, debt
    31  per capita, and debt service costs as a percent of  the  budget;  (2)  a
    32  summary  and analysis of the interest rate exchange agreements and vari-
    33  able rate exposure; and (3) an  assessment  of  financing  opportunities
    34  related to the state's debt portfolio.
    35    §  4.  The  opening  paragraph and paragraph (f) of subdivision 1, and
    36  subparagraphs (iv), (v), (vi), (vii) and  (viii)  of  paragraph  (c)  of
    37  subdivision  3  of  section 22-c of the state finance law, as amended by
    38  section 3 of part F of chapter 389 of the laws of 1997, are  amended  to
    39  read as follows:
    40    The  governor  shall  annually  submit  to  the  legislature a capital
    41  program and financing plan concurrent  with  the  executive  budget,  in
    42  addition to the information required by section twenty-two of this arti-
    43  cle.  The  plan  shall contain a comprehensive assessment of the capital
    44  assets and program needs of all state agencies, a review and analysis of
    45  how such requirements would be financed, an analysis of the affordabili-
    46  ty of [state-supported] state-funded debt, and an analysis of all  costs
    47  related to the financing of such plan.
    48    (f)  "[State-supported]  State-funded  debt"  shall [mean any bonds or
    49  notes issued by the state or a state public corporation  for  which  the
    50  state is constitutionally obligated to pay debt service or is contractu-
    51  ally  obligated  to pay debt service subject to an appropriation, except
    52  where the state has a contingent contractual obligation] have  the  same
    53  meaning as set forth in section sixty-seven-a of this chapter.
    54    (iv)  schedules of the projected annual [state-supported] state-funded
    55  bond issuances, proposed for each capital program, by agency, by issuer,

        A. 10117                           19
 
     1  and an analysis of existing debt authorizations and  the  need  for  any
     2  additional authorizations;
     3    (v) schedules of projected outstanding bonds, including retirements by
     4  year identified separately for [state-supported] state-funded bond issu-
     5  ances by issuer, and by capital program by agency, where practicable;
     6    (vi)  schedules  of the projected personal income of the state and the
     7  projected ratio of outstanding [state-supported] state-funded  bonds  to
     8  personal income;
     9    (vii)  schedules  of  projected  [state-supported]  state-funded  debt
    10  service costs by issuer, and by capital program by agency, where practi-
    11  cable; and
    12    (viii) an analysis of trends in municipal bond interest rates  and  an
    13  explanation  of  the  interest rate assumptions, timing of principal and
    14  interest payments, and the timing and size of projected  [state-support-
    15  ed] state-funded bond sales used in the debt service projections.
    16    §  5. Subdivision 4 of section 23 of the state finance law, as amended
    17  by chapter 1 of the laws of 2007, is amended to read as follows:
    18    4. Financial plan updates. Quarterly, throughout the fiscal year,  the
    19  governor  shall  submit  to  the  comptroller,  the chairs of the senate
    20  finance and the assembly ways and means committees, within  thirty  days
    21  of  the  close  of the quarter to which it shall pertain, a report which
    22  summarizes the actual experience to date and projections for the remain-
    23  ing quarters of the current fiscal year and for each  of  the  next  two
    24  fiscal  years of receipts, disbursements, tax refunds, and repayments of
    25  advances presented in forms suitable for comparison with  the  financial
    26  plan  submitted  pursuant  to subdivisions one, three, four, [and] five,
    27  five-a and five-b of section twenty-two of this article and  revised  in
    28  accordance with the provisions of subdivision three of this section. The
    29  governor  shall  submit with the budget a similar report that summarizes
    30  revenue and expenditure experience  to  date  in  a  form  suitable  for
    31  comparison with the financial plan submitted pursuant to subdivision two
    32  of section twenty-two of this article and revised in accordance with the
    33  provisions  of  subdivision  three  of  this section. Such reports shall
    34  provide an explanation of the causes of any major  deviations  from  the
    35  revised financial plans and, shall provide for the amendment of the plan
    36  or plans to reflect those deviations. The governor may, if he determines
    37  it advisable, provide more frequent reports to the legislature regarding
    38  actual  experience  as  compared  to  the financial plans. The quarterly
    39  financial plan update most proximate to  October  thirty-first  of  each
    40  year  prior  to  October  thirty-first,  two thousand twenty-seven shall
    41  include the calculation of the limitations on the issuance of state-sup-
    42  ported debt computed pursuant to the provisions of subdivisions one  and
    43  two  of  section  [sixty-seven-b] sixty-seven-b-one of this chapter. The
    44  quarterly financial plan update most proximate to  October  thirty-first
    45  of each year on or after October thirty-first, two thousand twenty-seven
    46  shall  include  the  calculation  of  the limitations on the issuance of
    47  state-funded debt computed pursuant to  the  provisions  of  subdivision
    48  three of section sixty-seven-b of this chapter.
    49    §  6.  Paragraph  (a)  of subdivision 3 of section 97-rrr of the state
    50  finance law, as amended by section 45 of part H of  chapter  56  of  the
    51  laws of 2000, is amended to read as follows:
    52    (a)  for  the  payment of principal, interest, and related expenses on
    53  general obligation bonds, lease purchase payments, or special contractu-
    54  al obligation payments, or for the purposes  of  retiring  or  defeasing
    55  bonds previously issued, including any accrued interest thereon, for any
    56  [state-supported] state-funded bonding program or programs, and;

        A. 10117                           20
 
     1    §  7.  This act shall take effect immediately, provided, however, that
     2  section 67-b-1 of the state finance law, as added by section one of this
     3  act, shall expire and be  deemed  repealed  March  31,  2028;  provided,
     4  further,  that the provisions of section 67-b-2 of the state finance law
     5  as added by section one of this act shall take effect March 31, 2028.
     6    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
     7  sion,  section  or  part  of  this act shall be adjudged by any court of
     8  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     9  impair,  or  invalidate  the remainder thereof, but shall be confined in
    10  its operation to the clause, sentence, paragraph,  subdivision,  section
    11  or part thereof directly involved in the controversy in which such judg-
    12  ment shall have been rendered. It is hereby declared to be the intent of
    13  the  legislature  that  this  act  would  have been enacted even if such
    14  invalid provisions had not been included herein.
    15    § 3. This act shall take effect immediately; provided,  however,  that
    16  the  applicable effective date of Parts A through C of this act shall be
    17  as specifically set forth in the last section of such Parts.
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