S08400 Summary:

BILL NOS08400
 
SAME ASSAME AS A09789-A
 
SPONSORBENJAMIN
 
COSPNSRCOMRIE, HOYLMAN
 
MLTSPNSR
 
Amd 25, Gen Muni L; amd 8, Chap 868 of 1975
 
Relates to the establishment by the city of New York of a revenue stabilization fund and variations from generally accepted accounting principles as applied to the budget and accounts of such city in connection with such fund.
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S08400 Actions:

BILL NOS08400
 
05/21/2020REFERRED TO CITIES
05/25/2020COMMITTEE DISCHARGED AND COMMITTED TO FINANCE
05/26/2020REPORTED AND COMMITTED TO RULES
05/27/2020ORDERED TO THIRD READING CAL.659
05/27/2020PASSED SENATE
05/27/2020DELIVERED TO ASSEMBLY
05/27/2020referred to ways and means
05/27/2020substituted for a9789a
05/27/2020ordered to third reading rules cal.26
05/27/2020passed assembly
05/27/2020returned to senate
06/05/2020DELIVERED TO GOVERNOR
06/17/2020SIGNED CHAP.118
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S08400 Committee Votes:

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S08400 Floor Votes:

DATE:05/27/2020Assembly Vote  YEA/NAY: 124/20
AbbateYCrespoYGalefYLiftonYPeoples-StokesYSmithY
AbinantiYCrouchNOGanttERLiPetriNOPerryYSmullenY
ArroyoYCruzYGarbarinoNOLupardoYPheffer AmatoYSolagesY
AshbyNOCusickYGiglioYMagnarelliYPichardoYStecY
AubryYCymbrowitzYGlickYMalliotakisYPretlowYSteckY
BarclayYDarlingYGoodellYManktelowNOQuartYSternY
BarnwellYDavilaYGottfriedYMcDonaldYRaNOStirpeY
BarrettYDe La RosaYGriffinYMcDonoughYRamosYTagueNO
BarronYDenDekkerYGuntherYMcMahonYReillyYTaylorY
BenedettoYDeStefanoYHawleyNOMikulinYReyesYThieleY
BichotteYDickensYHevesiYMill B YRichardsonYVanelY
BlakeYDilanYHunterYMill MGYRiveraYWalczykNO
BlankenbushNODinowitzYHyndmanYMill MLNORodriguezYWalkerY
BrabenecYDiPietroNOJacobsonYMontesanoNORose D YWallaceY
BraunsteinYD'UrsoYJaffeeYMorinelloYRose L YWalshNO
BronsonYEichensteinYJean-PierreYMosleyYRozicYWeinsteinY
BuchwaldYEnglebrightYJohnsYNiouYRyanYWeprinY
BurkeYEpsteinYJonesYNolanYSalkaNOWilliamsY
ButtenschonYFahyYJoynerYNorrisNOSantabarbaraYWoernerY
ByrneYFallYKimYO'DonnellYSayeghYWrightY
ByrnesYFernandezYKolbNOOrtizYSchimmingerERZebrowskiY
CahillYFinchERLalorYOtisYSchmittYMr SpkrY
CarrollYFitzpatrickNOLavineYPalmesanoNOSeawrightY
ColtonYFriendNOLawrenceYPalumboYSimonY
CookYFrontusYLentolYPaulinYSimotasY

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S08400 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8400
 
                    IN SENATE
 
                                      May 21, 2020
                                       ___________
 
        Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Cities
 
        AN ACT to amend the general municipal law and the New York state  finan-
          cial emergency act for the city of New York, in relation to the estab-
          lishment  by  the city of New York of a revenue stabilization fund and
          variations from generally accepted accounting principles as applied to
          the budget and accounts of such city in connection with such fund
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 25 of the general municipal law, as added by chap-
     2  ter 406 of the laws of 2019, is amended to read as follows:
     3    § 25.  Treatment  of  capital  costs  and  [restricted]  certain  fund
     4  balances  of  the  city  of New York; revenue stabilization fund of such
     5  city.  Notwithstanding the provisions of any general  or  special  state
     6  law  or  local law to the contrary, including but not limited to the New
     7  York city charter, the following shall apply with respect to the  budget
     8  and accounts of the city of New York:
     9    1.  All costs that would be capital costs in accordance with generally
    10  accepted accounting principles, but for the application of  governmental
    11  accounting  standards board statement number forty-nine, shall be deemed
    12  to be capital costs for purposes of this chapter and any other provision
    13  of state or local law, including but not limited to the  New  York  city
    14  charter, relevant to the treatment of such costs; [and]
    15    2.  The determination as to the existence of a deficit pursuant to the
    16  New York state financial emergency act for the city of New  York,  while
    17  such  act  remains  in effect, and any other provision of state or local
    18  law, including but not limited to the New York city  charter,  shall  be
    19  made  without  regard to changes in restricted fund balances, as defined
    20  by the governmental accounting standards board,  where  restrictions  in
    21  relation  to  such  fund balances are imposed by state or federal law or
    22  regulation, or otherwise by private or governmental parties  other  than
    23  the  city  of  New  York, and without regard to funds held in the health
    24  stabilization fund, the school crossing guards  health  insurance  fund,
    25  any  revenue  stabilization fund established pursuant to section fifteen
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15355-03-0

        S. 8400                             2
 
     1  hundred twenty-eight of the New York city  charter  and  the  management
     2  benefits  fund  established  by the city of New York.  Deposits into any
     3  such revenue stabilization fund shall be deemed to be expenses  of  such
     4  city  for all purposes in the fiscal year during which such deposits are
     5  made, and withdrawals from such fund shall be deemed to be  revenues  of
     6  such  city  for  all purposes in the fiscal year during which such with-
     7  drawals are made; provided however, that surpluses of such city, whether
     8  accumulated from fiscal years ending prior to the effective date of  the
     9  chapter of the laws of two thousand twenty that amended this subdivision
    10  or  existing at the close of any fiscal year ending after such effective
    11  date, shall be deposited into such revenue stabilization fund as soon as
    12  practicable, and such deposits shall not be deemed expenses of the  city
    13  in the fiscal years during which such deposits are made; and
    14    3.  The city of New York may establish and maintain a revenue stabili-
    15  zation fund pursuant to section fifteen hundred twenty-eight of the  New
    16  York city charter. Except as required by subdivision two of this section
    17  with  respect to surpluses, deposits into and withdrawals from such fund
    18  may be made by means of the procedures set forth  in  such  charter  for
    19  adoption or modification of the expense budget of such city, as applica-
    20  ble,  provided  that  no  more than fifty percent of the total amount of
    21  such fund may be withdrawn in any  fiscal  year  unless  the  mayor  has
    22  certified  that there is a compelling fiscal need, which may be based on
    23  circumstances including, but not be limited to, a national  or  regional
    24  recession,  a reduction in total revenues from the preceding fiscal year
    25  as projected in the financial plan of the city of New York, a natural or
    26  other disaster, or a declared state of emergency in the city of New York
    27  or the state of New York. The authority to establish a revenue  stabili-
    28  zation  fund  set  forth in this subdivision shall be in addition to any
    29  other authorization set forth in this article or other applicable law.
    30    § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
    31  868 of the laws of 1975, constituting the New York state financial emer-
    32  gency act for the city of New York, as amended by  chapter  406  of  the
    33  laws of 2019, is amended to read as follows:
    34    a. For its fiscal years ending June thirtieth, nineteen hundred seven-
    35  ty-nine  through June thirtieth, nineteen hundred eighty-one, the city's
    36  budget covering all expenditures  other  than  capital  items  shall  be
    37  prepared and balanced so that the results thereof would not show a defi-
    38  cit when reported in accordance with the accounting principles set forth
    39  in  the  state  comptroller's  uniform  system  of  accounts for munici-
    40  palities, as the same may be modified by the comptroller,  in  consulta-
    41  tion  with the city comptroller, for application to the city; subject to
    42  the provision of subdivision four of section three thousand thirty-eight
    43  of the public authorities law with respect to contributions by the  city
    44  or  other  public  employer to any retirement system or pension fund and
    45  subject to the provision of paragraph (c) of subdivision five of section
    46  three thousand thirty-eight of the public authorities law  with  respect
    47  to  expense  items  included  in the capital budget of the city. For the
    48  fiscal year ending June thirtieth, nineteen hundred eighty-two, and  for
    49  each fiscal year thereafter, the city's budget covering all expenditures
    50  other  than  capital  items  shall  be prepared and balanced so that the
    51  results thereof would not show a deficit  when  reported  in  accordance
    52  with  generally  accepted accounting principles and would permit compar-
    53  ison of the budget with the report of actual financial results  prepared
    54  in  accordance  with  generally  accepted  accounting  principles.  With
    55  respect to financial plans that include the  fiscal  years  ending  June
    56  thirtieth,  nineteen  hundred seventy-nine through June thirtieth, nine-

        S. 8400                             3
 
     1  teen hundred eighty-one, the city's  budget  covering  all  expenditures
     2  other  than capital items shall be prepared in accordance with generally
     3  accepted accounting principles and there shall be  substantial  progress
     4  in  each  such  fiscal year towards achieving a city budget covering all
     5  expenditures other than capital items the results  of  which  would  not
     6  show  a  deficit  when  reported  in  accordance with generally accepted
     7  accounting principles. The city shall eliminate expense items  from  its
     8  capital budget not later than the commencement of the fiscal year ending
     9  June  thirtieth, nineteen hundred eighty-two. For the fiscal year ending
    10  June thirtieth, nineteen hundred eighty-nine, and for each  fiscal  year
    11  thereafter,  the  budgets  covering  all expenditures other than capital
    12  items of each  of  the  covered  organizations  shall  be  prepared  and
    13  balanced  so  that  the  results  thereof  would not show a deficit when
    14  reported in accordance with generally  accepted  accounting  principles;
    15  and  for  each  fiscal  year  prior  thereto, there shall be substantial
    16  progress towards  such  goal.  Notwithstanding  the  foregoing  and  the
    17  provisions  of  any  general  or  special  state law or local law to the
    18  contrary, including but not limited to the New York city charter:    (i)
    19  all  costs  that  would  be  capital  costs in accordance with generally
    20  accepted accounting principles, but for the application of  governmental
    21  accounting  standards board statement number forty-nine, shall be deemed
    22  to be capital costs for purposes of this act and any other provision  of
    23  state or local law, including but not limited to the New York city char-
    24  ter, relevant to the treatment of such costs; and (ii) the determination
    25  as  to  the  existence  of  a deficit pursuant to this act and any other
    26  provision of state or local law, including but not limited  to  the  New
    27  York city charter, shall be made without regard to changes in restricted
    28  fund  balances,  as  defined  by  the  governmental accounting standards
    29  board, where restrictions in relation to such fund balances are  imposed
    30  by  state  or  federal  law  or  regulation,  or otherwise by private or
    31  governmental parties other than the city of New York, and without regard
    32  to funds held in the health  stabilization  fund,  the  school  crossing
    33  guards health insurance fund, any revenue stabilization fund established
    34  pursuant  to  section  fifteen hundred twenty-eight of the New York city
    35  charter and the management benefits fund established by the city of  New
    36  York.  Deposits into any such revenue stabilization fund shall be deemed
    37  to be expenses of such city in the fiscal year in  which  such  deposits
    38  are  made, and withdrawals from such fund shall be deemed to be revenues
    39  of such city in the year in which such withdrawals  are  made;  provided
    40  however,  that  surpluses  of such city, whether accumulated from fiscal
    41  years ending prior to the effective date of the chapter of the  laws  of
    42  two thousand twenty that amended this paragraph or existing at the close
    43  of  any fiscal year ending after such effective date, shall be deposited
    44  into such revenue stabilization fund as soon as  practicable,  and  such
    45  deposits  shall not be deemed expenses of the city in the fiscal year in
    46  which such deposits are made.
    47    § 3. This act shall take effect immediately.
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