Add §7-112, amd §4-116, El L; add §§6 & 65-a, amd §§92 & 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.
STATE OF NEW YORK
________________________________________________________________________
559
2019-2020 Regular Sessions
IN SENATE(Prefiled)
January 9, 2019
___________
Introduced by Sen. TEDISCO -- read twice and ordered printed, and when
printed to be committed to the Committee on Elections
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 to amend
the state finance law, in relation to requiring publication of an
explanation of the proposition authorizing the creation of state debt,
deposits to the tax stabilization reserve fund, and using surplus
moneys to reduce outstanding state funded debt
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The election law is amended by adding a new section 7-112
2 to read as follows:
3 § 7-112. Ballots; form for proposition; additional requirements. Each
4 duly certified proposition contained on the ballot and submitted to the
5 voters of the state which provides for the creation of a state debt
6 shall contain an estimate of the anticipated number of years over which
7 such debt shall be amortized and the total expected debt service payable
8 on the principal amount of such bonds until their retirement. Such
9 information shall be printed in the largest type which is practicable to
10 use in the space provided for the proposition. Such information shall be
11 provided to the state board of elections and the secretary of state by
12 the state comptroller not later than seven days after the passage of the
13 law authorizing such proposition.
14 § 2. Subdivision 2 of section 4-116 of the election law, as amended by
15 chapter 60 of the laws of 1993, is amended to read as follows:
16 2. The state board of elections shall publish once in the week preced-
17 ing any election at which proposed constitutional amendments or other
18 propositions or questions are to be submitted to the voters of the state
19 an abstract of such amendment or question, including the estimate of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05183-01-9
S. 559 2
1 amortization period and the total anticipated debt service payable on
2 the principal where the proposition authorizes the creation of a state
3 debt, a brief statement of the law or proceedings authorizing such
4 submission, a statement that such submission will be made and the form
5 in which it is to be submitted.
6 § 3. The state finance law is amended by adding a new section 6 to
7 read as follows:
8 § 6. State publication concerning proposition. Any report, publica-
9 tion, pamphlet or other written document prepared by a state department,
10 agency, authority or other component or division of state government,
11 intended for distribution to the public, which is intended to promote
12 awareness of or explain the provisions contained in, or incidental to, a
13 duly certified proposition to be contained on the ballot and to be
14 submitted to the voters of the state which proposition provides for the
15 creation of a state debt shall contain therein an estimate of the antic-
16 ipated number of years over which such debt shall be amortized and the
17 total expected debt service payable on the principal amount of such
18 bonds until their retirement. Such information shall be printed in the
19 largest type which is practicable to use in such document.
20 § 4. Subdivisions 3 and 4 of section 92 of the state finance law, as
21 separately amended by chapters 405 and 957 of the laws of 1981, are
22 amended to read as follows:
23 3. At the close of each fiscal year any cash surplus remaining in the
24 general fund over and above the norm for such fiscal year shall be
25 transferred from or retained in such fund as hereinafter in this subdi-
26 vision provided. There shall be transferred to the tax stabilization
27 reserve fund all of such surplus moneys, up to and including an amount
28 equivalent to [two-tenths] one-half of one per centum of such norm,
29 unless such transfer would increase such reserve fund to an amount in
30 excess of [two] five per centum of the amount of the norm for such
31 fiscal year, in which event such transfer shall be limited to such
32 amount as will increase such reserve fund to such [two] five per centum
33 limitation. Any balance of such surplus moneys, thereafter remaining in
34 the general fund, shall be retained in such fund and be available for
35 the reduction of state taxes.
36 4. In the event that at the close of any fiscal year the receipts
37 derived from the taxes, fees and other sources, required to be paid
38 during such fiscal year into the general fund of the state shall fall
39 below the norm for such fiscal year, there shall be transferred from the
40 tax stabilization reserve fund to the general fund to the extent that
41 there are sufficient moneys in the tax stabilization reserve fund, an
42 amount equal to the difference between the norm and the amount of such
43 receipts. If such transfer reduces the tax stabilization reserve fund to
44 an amount less than [two] five per centum of the norm for such fiscal
45 year, the amount so transferred shall be repaid in cash prior to the
46 computation and payment of any transfer to the fund pursuant to subdivi-
47 sion three of this section in not less than three equal annual install-
48 ments within the period of six years or less next succeeding the date of
49 such transfer; provided, however, that if any such annual installment
50 shall increase such reserve fund to an amount in excess of [two] five
51 per centum of the amount of the norm for the then current fiscal year,
52 such installment shall be limited to such amount as will increase such
53 reserve fund to such [two] five per centum limitation and no further
54 repayment of the whole or any part of such transfer shall be required in
55 any subsequent fiscal year. Repayments to the tax stabilization reserve
56 fund shall be stipulated in annual budget bills.
S. 559 3
1 § 5. The state finance law is amended by adding a new section 65-a to
2 read as follows:
3 § 65-a. Use of surplus moneys to reduce outstanding state funded debt.
4 At the close of each fiscal year, at least ten percent of any cash
5 surplus remaining in the general fund after the transfer pursuant to
6 section ninety-two of this chapter shall be transferred to the debt
7 reduction reserve fund established by section ninety-seven-ccc of this
8 chapter.
9 § 6. Section 97-rrr of the state finance law, as amended by section 45
10 of part H of chapter 56 of the laws of 2000, subdivision 4 as added by
11 section 22-b of part XXX of chapter 59 of the laws of 2017, is amended
12 to read as follows:
13 § [97-rrr.] 97-ccc. Debt reduction reserve fund. 1. There is hereby
14 established in the joint custody of the comptroller and the commissioner
15 of taxation and finance a fund to be known as the debt reduction reserve
16 fund. [Such fund shall be established as a capital projects fund.]
17 2. Such fund shall consist of all monies credited or transferred ther-
18 eto from the general fund or from any other fund or sources pursuant to
19 law.
20 3. The monies in such fund, following appropriation by the legislature
21 and allocation by the director of the budget, shall be available [for
22 the following purposes:
23 (a) for the payment of principal, interest, and related expenses on
24 general obligation bonds, lease purchase payments, or special contractu-
25 al obligation payments, or] only for the [purposes] purpose of retiring
26 or defeasing bonds or notes previously issued, including any accrued
27 interest thereon, for any [state-supported bonding program or programs,
28 and;
29 (b) for the funding of capital projects, equipment acquisitions, or
30 similar expenses which have been authorized by law to be financed
31 through the issuance of bonds, notes, or other obligations] state funded
32 debt.
33 4. Any amounts disbursed from such fund shall be excluded from the
34 calculation of annual spending growth in state operating funds until
35 June [30, 2019] thirtieth, two thousand nineteen.
36 § 7. This act shall take effect immediately; provided, however that
37 provisions of section four of this act shall take effect three years
38 after it shall have become a law.
