NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7419
SPONSOR: Farrell
 
TITLE OF BILL: An act to amend the state finance law, in relation to
tax check-off funds
 
PURPOSE: The purpose of this legislation is to establish uniform
requirements for all funds in which tax check-off monies are deposited
and require annual reports relating to the use of such monies.
 
SUMMARY OF PROVISIONS: Section 1 of the bill amends Subdivision (a) of
Section 83 of the State Finance Law (Fish and Wildlife Management
Account within the Conservation Fund) by adding a new Paragraph 1-a to
require that an annual report on how the monies in the fund were
utilized be provided to the governor, the temporary president of the
senate, the speaker of the assembly, the chair of the senate finance
committee, the chair assembly ways and means committee, the state comp-
troller and the public.
Section 2 of the bill amends Section 84 of the State Finance Law (United
States Olympic Committee/Lake Placid Olympic Training Center Fund) by
adding a new Subdivision 2-a to require that an annual report on how the
monies in the fund were utilized be provided to the governor, the tempo-
rary president of the senate, the speaker of the assembly, the chair of
the senate finance committee, the chair assembly ways and means commit-
tee, the state comptroller and the public.
Section 3 of the bill amends Subdivision 2-b of Section 97-yy of the
State Finance Law (Breast Cancer Research and Education Fund) to include
the State Comptroller and the public as recipients of the report
required by such section.
Section 4 of the bill amends Section 97-mmmm of the State Finance Law
(Veterans Remembrance and Cemetery Maintenance and Operation Fund) by
adding a new Subdivision 2-a to require that an annual report on how the
monies in the fund were utilized be provided to the governor, the tempo-
rary president of the senate, the speaker of the assembly, the chair of
the senate finance committee, the chair assembly ways and means commit-
tee, the state comptroller and the public.
Section 5 of the bill amends Section 99-v of the State Finance Law
(Homeless Veterans Assistance Fund) by adding a new Subdivision 2-a to
require that an annual report on how the monies in the fund were
utilized be provided to the governor, the temporary president of the
senate, the speaker of the assembly, the chair of the senate finance
committee, the chair assembly ways and means committee, the state comp-
troller and the public.
Section 6 of the bill amends Section 92-w of the State Finance Law
(Missing and Exploited Children Clearinghouse Fund) by adding a new
Subdivision 2-a to require that an annual report on how the monies in
the fund were utilized be provided to the governor, the temporary presi-
dent of the senate, the speaker of the assembly, the chair of the senate
finance committee, the chair assembly ways and means committee, the
state comptroller and the public.
Section 7 of the bill amends Subdivision 2-b of Section 89-e of the
State Finance Law (Alzheimer's Disease Assistance Fund) to include the
State Comptroller and the public as recipients of the report required by
such section.
Section 8 of the bill amends Subdivision 2-b of Section 95-e of the
State Finance Law (NYS Prostate and Testicular Cancer Research and
Education Fund) to include the State Comptroller and the public as
recipients of the report required by such section.
Section 9 of the bill amends Section 79 of the State Finance Law (World
Trade Center . Memorial Foundation Fund) by adding a new Subdivision 2-a
to require that an annual report on how the monies in the fund were
utilized be provided to the governor, the temporary president of the
senate, the speaker of the assembly, the chair of the senate finance
committee, the chair assembly ways and means committee, the state comp-
troller and the public.
Section 10 of the bill amends Section 99-q of the State Finance Law
(Volunteer Firefighting and Volunteer Emergency Services Recruitment and
Retention Fund) by adding a new Subdivision 2-a to require that an annu-
al report on how the monies in the fund were utilized be provided to the
governor, the temporary president of the senate, the speaker of the
assembly, the chair of the senate finance committee, the chair assembly
ways and means committee, the state comptroller and the public.
Section 11 of the bill amends Section 99-u of the State Finance Law (NYS
Teen Health Education Fund) by adding a new Subdivision 2-a to require
that an annual report on how the monies in the fund were utilized be
provided to the governor, the temporary president of the senate, the
speaker of the assembly, the chair of the senate finance committee, the
chair assembly ways and means committee, the state comptroller and the
public.
Section 12 of the bill amends Subdivision 3 of section 22 of the state
finance law requiring that the annual budget submitted annually by the
governor to the legislature, in accordance with article seven of the
constitution include estimates for state funds that receive tax check-
off monies of all receipts and all disbursements for the current and
succeeding fiscal years, along with the actual results from the prior
fiscal year.
Section 13 of the bill adds a new section 71-b requiring that to the
extent practicable, for every fund established pursuant to the State
Finance law or any other law on and after the effective date of this
act, for which a tax check-off is a source of monies in such fund, the
head of the agency or entity administering the expenditure of such
monies shall ensure that all monies received during a fiscal year are
expended prior to the end of such fiscal year. Additionally, this
section requires an annual report on the use of such monies be provided
to the governor, the temporary president of the senate, the speaker of
the assembly, the chair of the senate finance committee, the chair of
the assembly ways and means committee, the state comptroller and the
public.
The bill sets forth the information required in such report including,
but not limited to, the amount of money disbursed from the fund, the
award process used for such disbursements, recipients of awards from the
fund, the amount awarded to each, the purposes for which such awards
were granted and a summary financial plan for such monies.
Section 14 provides for an immediate effective date and provides that
the provisions of section thirteen shall apply to funds created on and
after such date.
 
PRIOR LEGISLATIVE HISTORY: New bill.
 
JUSTIFICATION: New Yorkers have contributed more than $50 million for
worthy causes through check-offs on their personal income tax forms, but
all or significant portions of these funds often remain unused. More
than $15 million has accumulated in eight check-off funds (excluding the
Conservation Fund and the World Trade Center Memorial Fund) reflecting
contributions from taxpayers, transfers from the state's General Fund,
dedicated fees, interest and other revenues. Nearly 90 percent of such
amount is for health-related causes including breast cancer, prostate
cancer and Alzheimer's disease. To assure consistent use of these gener-
ous donations, the monies in these funds should adhere to the standards
and requirements set forth in this proposal.
New Yorkers are generously giving to causes they care about but the
money is piling up for some funds. Currently, there are eleven causes
that New Yorkers can support through personal income tax check-offs
including fish and wildlife programs, missing and exploited children
efforts, veterans' causes, and disease research. The first check-off was
created in 1982 to support the state's Conservation Fund, administered
by the Department of Environmental Conservation, for fish and wildlife
management.
A 2014 State Comptroller's Report found that the pace of spending from
the eight dedicated funds in existence at the time with accumulated
balances had declined in the previous five years. While $12 million came
into the check-off funds (excluding the Conservation Fund and the World
Trade Center Memorial Fund) during the previous five years, only $5.1
million, or 43 percent, had been spent, compared to nearly 70 percent
during the prior five years. No spending had occurred out of two funds -
the prostate cancer check-off and the volunteer firefighting and EMS
fund. The SFY 2014-15 Enacted Budget increased proposed Executive Budget
appropriations for research into breast cancer, prostate cancer and
Alzheimer's disease by $7.2 million. $3.1 million and $1.6 million,
respectively, to spend funds accumulated in tax check-off accounts for
these programs. The Budget required the Commissioner to provide the
Legislature with annual reports on disbursements from each fund, recipi-
ents of awards, the amounts they received, and the purpose of the
awards.
The SFY 2014-15 Enacted Budget also renamed the Prostate Cancer
Research, Detection and Education Fund to the Prostate and Testicular
Cancer Research and Education Fund, expanded resources accruing to the
Fund to include proceeds from "drive for the cure" license plates, and
removed a reference to the New York State Coalition to Cure Prostate
Cancer as the sole entity eligible for Fund distributions in an effort
to facilitate spending from the fund.
While these measures reflect good progress in ensuring the tax check-off
funds are expended in a timely manner for the important purposes for
which they were created, more standardized and comprehensive reporting
could be beneficial in ensuring full transparency and accountability for
the use of these funds. In addition, universally applying to all check-
off funds the provision to require the entity administering the expendi-
ture of such monies to ensure that all monies received during a fiscal
year are expended prior to the end of such fiscal year to the extent
practicable, would provide greater assurance to taxpayers that their
contributions were providing the benefit intended.
 
FISCAL IMPLICATIONS FOR STATE: This bill has no significant State
fiscal impact.
 
EFFECTIVE DATE: This act shall take effect immediately; provided,
however, that the provisions of section thirteen of this act shall apply
to funds created on and after such date.