Bill Text: NY A02903 | 2023-2024 | General Assembly | Introduced


Bill Title: Creates the legislative office of fiscal transparency; requires fiscal notes on proposed rules and executive orders affecting political subdivisions; requires legislative committee approval of certain proposed rules; requires the comptroller to make monthly reports to the legislative office of fiscal transparency.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced) 2024-01-03 - referred to governmental operations [A02903 Detail]

Download: New_York-2023-A02903-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          2903

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 1, 2023
                                       ___________

        Introduced by M. of A. JENSEN -- read once and referred to the Committee
          on Governmental Operations

        AN  ACT to amend the legislative law, in relation to creating the legis-
          lative office of fiscal transparency; to amend the  state  administra-
          tive  procedure  act  and  the executive law, in relation to requiring
          fiscal notes on proposed rules and executive  orders  affecting  poli-
          tical  subdivisions;  to  amend  the  legislative  law, in relation to
          requiring legislative committee approval of  certain  proposed  rules;
          and to amend the state finance law, in relation to requiring the comp-
          troller  to  make  monthly reports to the legislative office of fiscal
          transparency

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This  act shall be known and may be cited as the "respect
     2  taxpayer dollars act".
     3    § 2. Legislative findings and intent. The  Legislature  declares  that
     4  state  government has a responsibility to be accountable and transparent
     5  in such a way that the general public can understand the value  received
     6  for the tax dollars spent by the state. This act is intended to create a
     7  review  process  for the executive budget and certain rule making proce-
     8  dures by state government agencies. Implementing an  independent  fiscal
     9  review  of the executive budget proposal and rule making procedures that
    10  have a significant fiscal impact, will promote transparency and account-
    11  ability to the voters and restore public trust.
    12    § 3. The legislative law is amended by adding a  new  article  4-B  to
    13  read as follows:
    14                                 ARTICLE 4-B
    15                  LEGISLATIVE OFFICE OF FISCAL TRANSPARENCY
    16  Section 73. Legislative office of fiscal transparency; organization.
    17          74. Legislative office of fiscal transparency; oversight commit-
    18                tee.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06566-01-3

        A. 2903                             2

     1          75. Powers of the office.
     2          76. Records access.
     3          77. Certified audit requirement.
     4          78. Reporting and disclosures.
     5    §  73.  Legislative  office  of  fiscal transparency; organization. 1.
     6  There is hereby created within the legislature the legislative office of
     7  fiscal transparency (LOFT). The purpose of the office shall be to assist
     8  the legislature in performing its constitutional and statutory  function
     9  of ensuring that government funds are expended in a fiscally responsible
    10  manner  by  reviewing and providing non-partisan expertise in the review
    11  and analysis of the executive budget proposal, for the purpose of  iden-
    12  tifying  proposals  with unknown fiscal impacts and to serve as a review
    13  body of rulemaking fiscal note compliance and administration.
    14    2. The legislative office of fiscal transparency shall consist of  two
    15  directors,  one of whom shall be the director for administration and the
    16  other of whom shall be the director for operations. The directors  shall
    17  be  appointed  jointly  by the temporary president of the senate and the
    18  speaker of the assembly. Provided, however, if both the temporary presi-
    19  dent of the senate and the speaker  of  the  assembly  shall  have  been
    20  elected  to office on the same major party ballot line, then the ranking
    21  member of the Democrat party in the senate and the ranking member of the
    22  Democrat party in the assembly shall jointly  appoint  the  director  of
    23  operations  and the ranking member of the Republican party in the senate
    24  and the ranking member of the Republican party  in  the  assembly  shall
    25  jointly  appoint the director of administration. Such appointments shall
    26  be evidenced by the joint certificate of the appointing  officers  filed
    27  in  the  office of the secretary of state. Each such director shall hold
    28  office until his or her successor is appointed in  the  same  manner  as
    29  hereinabove  provided.  The directors shall receive such compensation as
    30  may be provided within the amount of the appropriation made by  law  for
    31  the maintenance and operation of the office. The directors and employees
    32  of  the  office  shall be considered as employees of the legislature for
    33  all purposes.
    34    3. All expenses of the  office  shall  be  paid  by  the  legislature,
    35  subject  to  the approval of the president pro tempore of the senate and
    36  the speaker of the assembly. Employees of the office shall  be  employed
    37  by the legislature.
    38    §  74. Legislative office of fiscal transparency; oversight committee.
    39  1.  There is hereby created within the legislature a committee to  over-
    40  see the operations of the legislative office of fiscal transparency. The
    41  committee shall consist of eight members, as follows:
    42    a.  Four members of the senate, each to serve for a term of one calen-
    43  dar year. The four members shall  be  the  temporary  president  of  the
    44  senate;  the  chairperson  of the senate finance committee; the minority
    45  leader of the senate; and the ranking  minority  member  of  the  senate
    46  finance committee.
    47    b.  Four  members  of  the  assembly,  each to serve for a term of one
    48  calendar year. Such members shall be the speaker of  the  assembly;  the
    49  chairperson  of the ways and means committee; the minority leader of the
    50  assembly; and the ranking minority member of the ways and means  commit-
    51  tee.
    52    2.  The  president  pro  tempore  of the senate and the speaker of the
    53  assembly shall act as co-chairs of the oversight committee.
    54    3. A quorum of the oversight committee shall consist of at least  five
    55  members;  provided,  any action by the oversight committee shall require
    56  the vote of at least three members from at least one house of the legis-

        A. 2903                             3

     1  lature. The agenda for each meeting shall be set by  the  co-chairs  and
     2  shall  be  made  available  to  the public, by posting on the senate and
     3  assembly websites, at least twenty-four hours prior to the time  of  the
     4  meeting.  Meetings of the oversight committee shall be governed by joint
     5  rules to be promulgated by the legislature.  Members  of  the  oversight
     6  committee  shall receive reimbursement for actual and necessary expenses
     7  incurred in connection with their duties as  members  of  the  oversight
     8  committee  in accordance with other provisions of law relating to travel
     9  reimbursement for members of the legislature.
    10    4. The members and co-chairs  of  the  oversight  committee  shall  be
    11  appointed  no  later than July first, two thousand twenty-three, and the
    12  oversight committee shall hold its first meeting no  later  than  August
    13  first, two thousand twenty-three.
    14    § 75. Powers of the office. 1. The legislative office of fiscal trans-
    15  parency shall:
    16    a.  receive,  concurrently with the submission to the legislature, the
    17  executive budget proposal;
    18    b. analyze and report on all agency rule making approved in the previ-
    19  ous fiscal year, that lacked a specific appropriation,  or  whereby  the
    20  authorized rule making resulted in an unidentified fiscal impact, or any
    21  rule  making  that  resulted  in  a fiscal impact exceeding five million
    22  dollars; and
    23    c. conduct  an  independent  comprehensive  performance  audit  (ICPA)
    24  regarding  the  operations  of  the  agency  in relation to expenditures
    25  related to rule making as authorized by legislation passed in the previ-
    26  ous fiscal year, as required in order to fulfill the duties imposed upon
    27  the office by law or as otherwise directed by the oversight committee.
    28    2. The oversight committee, subject to the direction of the  president
    29  pro  tempore of the senate and the speaker of the assembly, shall ensure
    30  that the functions performed by the office pursuant to the provisions of
    31  subdivision one of this section do not duplicate  those  of  the  senate
    32  finance  committee  and  the assembly ways and means committee and their
    33  respective staffs.
    34    3. a. As used in this article, "independent comprehensive  performance
    35  audit  (ICPA)" includes, but is not limited to, a review and analysis of
    36  the economy, efficiency, effectiveness and compliance of  the  policies,
    37  management,  fiscal affairs and operations of state agencies, divisions,
    38  programs and accounts as such relate to the enactment of rules and regu-
    39  lations as authorized by the legislature.
    40    b. The results of an ICPA may be used by the legislature to  implement
    41  the best budgeting and policymaking practices for government services to
    42  run  in the most cost-effective way. The office may, at the direction of
    43  the oversight committee and subject to the approval of the president pro
    44  tempore of the senate and the speaker of the assembly, contract  with  a
    45  private  company,  nonprofit  organization  or  academic  institution to
    46  assist with  an  independent  comprehensive  performance  audit  or  for
    47  professional  consulting and administrative support services. The office
    48  may, but shall not be required to, contract with the department of audit
    49  and control to conduct an ICPA. The office shall develop  the  scope  of
    50  services  for  a request for proposals issued, for professional services
    51  necessary to complete each ICPA. Prior to entering  into  any  contract,
    52  the  office shall obtain no less than three separate bids for the audit-
    53  ing services, unless the office determines that fewer than  three  enti-
    54  ties  meet  the  qualifications  to  bid to perform such services as set
    55  forth by the office. The cost of the  contract  shall  be  paid  by  the
    56  legislature.

        A. 2903                             4

     1    c.  An  independent  comprehensive performance audit shall address but
     2  not be limited to the following topics:
     3    (1)  policies  which  shall  include  constitutional mandates, if any,
     4  statutory mandates, statutory authorizations,  administrative  rules  or
     5  policies  of  the affected agency reflected in internal agency documents
     6  or agency practices;
     7    (2) all sources of funding received by the agency, inclusive of feder-
     8  al funds, state appropriations, state-dedicated  revenues,  fee  revenue
     9  sources,  the use of agency revolving funds or any other fund or revenue
    10  source which is used to pay the expenses of the agency;
    11    (3) management of the agency which shall include, but not  be  limited
    12  to, its governance, capacity, divisions, programs, accounts, information
    13  technology  systems  and  policies  and  agency operations which include
    14  objective analysis of the roles and functions of the department; and
    15    (4) a schedule for implementation of  agency-specific  recommendations
    16  in  relation  to  rule  making procedures that result in a fiscal impact
    17  upon the state in excess of five million dollars.
    18    § 76. Records access. 1. Each  agency  or  institution  of  the  state
    19  shall,  upon  request,  furnish  and  make  available to the legislative
    20  office of fiscal transparency all records, documents, materials, person-
    21  nel, information or other resources as the  office  deems  necessary  to
    22  conduct  a review of the rule making procedures subject to this act. Any
    23  record, document, material or other information made confidential by law
    24  shall be provided to the office, which shall also maintain  such  confi-
    25  dentiality.    All records, documents, materials or other information of
    26  the office shall be deemed to be a record of the legislature.
    27    2. Each state agency and other affected persons shall  cooperate  with
    28  the  oversight committee and the office in the providing of any informa-
    29  tion requested. The oversight committee shall have the power to  conduct
    30  hearings, administer oaths, issue subpoenas and compel the attendance of
    31  witnesses and the production of information.
    32    § 77. Certified audit requirement. The receipt and audit of the execu-
    33  tive  capital  program  and financial plan pre-submission disclosure, as
    34  required by section twenty-two-c of the state finance law, shall include
    35  an independent certified public accountant's audit report containing  an
    36  opinion  that the financial statements are presented fairly in all mate-
    37  rial respects and in conformity with generally accepted accounting prin-
    38  ciples, including compliance with all pronouncements  of  the  financial
    39  accounting  standards  board  and  the  American  Institute of Certified
    40  Public Accountants.
    41    § 78. Reporting and disclosures.  The  legislative  office  of  fiscal
    42  transparency  shall  prepare  and  submit  to  the oversight committee a
    43  report of its findings for any  performance  evaluation  or  independent
    44  comprehensive  performance audit conducted at the direction of the over-
    45  sight  committee.  No  such  evaluation  or  independent   comprehensive
    46  performance audit shall be conducted without prior approval of the over-
    47  sight  committee.  Such  reports shall be available to the public, other
    48  than with respect to any information or material  made  confidential  by
    49  law.  The  oversight  committee  may  make recommendations to the agency
    50  evaluated, or to the legislature and the governor, for further action as
    51  it deems necessary, and may direct the office to monitor and  report  on
    52  implementation of such recommendations.
    53    §  4.  The state administrative procedure act is amended by adding two
    54  new sections 201-b and 202-g to read as follows:

        A. 2903                             5

     1    § 201-g. Fiscal notes on proposed rules. 1. For the purposes  of  this
     2  section,  the term "political subdivision" means any county, city, town,
     3  village, special district or school district.
     4    2.  Each  agency  proposing  a  rule  shall  attach a fiscal note to a
     5  proposed rule which would affect the revenues or expenses, or  both,  of
     6  any  political  subdivision.  Such fiscal notes shall fully disclose the
     7  costs and source of funding of every  provision  of  the  proposed  rule
     8  which would affect the revenue or expenses of any political subdivision.
     9    3.  Fiscal  notes  shall  not, however, be required for proposed rules
    10  which provide discretionary authority to political subdivisions.
    11    § 202-g. Legislative approval. In addition to the  procedure  required
    12  pursuant  to  section  two  hundred two of this article and prior to the
    13  submission of a notice of proposed rulemaking to the secretary of  state
    14  for publication in the state register, an agency proposing a rule with a
    15  fiscal  impact  in  excess  of  five  million dollars, shall submit such
    16  proposed rule to the legislative office of  fiscal  transparency  estab-
    17  lished under article four-B of the legislative law with a fiscal note as
    18  required  by section two hundred one-b of this article. Upon approval of
    19  compliance by the legislative office of fiscal transparency, the  office
    20  shall  deliver  such  proposed  rule to the senate finance committee and
    21  assembly ways and means committee for their approval. No such rule shall
    22  take effect unless it has been approved by a two-thirds majority vote of
    23  each committee with jurisdiction to which it has been referred.
    24    § 5. The executive law is amended by adding a new section 13  to  read
    25  as follows:
    26    §  13.  Fiscal  notes on executive orders affecting political subdivi-
    27  sions. 1. For the purposes of this section, the term "political subdivi-
    28  sion" means any county, city, town, village, special district or  school
    29  district.
    30    2.  The  governor  shall attach a fiscal note to every executive order
    31  which would affect the revenues or expenses, or both, of  any  political
    32  subdivision. Such fiscal notes shall fully disclose the costs and source
    33  of  funding of every provision of the executive order which would affect
    34  the revenue or expenses of any political subdivision.
    35    3. Fiscal notes shall not, however, be required for  executive  orders
    36  which provide discretionary authority to political subdivisions.
    37    § 6. The legislative law is amended by adding a new section 68 to read
    38  as follows:
    39    §  68. Approval of legislative committees. 1. State agencies intending
    40  to promulgate any rule with a fiscal impact in excess  of  five  million
    41  dollars  must  submit  such  proposed  rule to the legislative office of
    42  fiscal transparency for review of the sufficiency of form and substance.
    43  Upon approval, the office shall deliver to the  chair  and  the  ranking
    44  minority member of the senate finance and the chair and ranking minority
    45  member  of  the assembly ways and means committees for consideration and
    46  approval of the proposed rule.
    47    2. The senate finance  committee  and  the  assembly  ways  and  means
    48  committee  shall  have  jurisdiction  to consider and approve a proposed
    49  rule, when such rule is authorized to be promulgated by a bill previous-
    50  ly passed and enacted by each house of the legislature.
    51    3. The finance and ways and means committees in the senate and  assem-
    52  bly must consider the proposed rule during the first scheduled committee
    53  meeting,  immediately  following  receipt  of  the  proposed rule by the
    54  committee chair and ranking minority member.
    55    4. All members of the finance and ways and  means  committees  in  the
    56  senate  and  assembly  shall  be provided a copy of the proposed rule at

        A. 2903                             6

     1  least three calendar days prior to acting upon such rule  and  shall  be
     2  afforded  sufficient  time  to  debate  the merits of the proposed rule,
     3  including the fiscal impact of the proposal and the need  to  promulgate
     4  the proposed rule in order to implement the law as intended.
     5    5. After the proposed rule has been debated and prior to conclusion of
     6  the  committee meeting, all members of the committee must vote to either
     7  approve or reject the proposed rule.
     8    6. The chair of the appropriate committee shall provide the results of
     9  the committee vote to the state agency that provided the  proposed  rule
    10  and report such vote in the same manner as any vote by the committee.
    11    7. A vote to approve a proposed rule by no less than two-thirds of all
    12  committee  members shall be required before the state agency can proceed
    13  to propose the rule pursuant to section two hundred  two  of  the  state
    14  administrative procedure act.
    15    §  7.  Subdivision 9-b of section 8 of the state finance law, as sepa-
    16  rately added by chapters 405 and 957 of the laws of 1981, is amended  to
    17  read as follows:
    18    9-b.  Make  monthly reports during state fiscal years commencing on or
    19  after April first, nineteen hundred eighty-two, within ten days  of  the
    20  close  of  each month, to the legislative office of fiscal transparency,
    21  the chairman of the senate finance committee and  the  chairman  of  the
    22  assembly ways and means committee for the use of such committees and the
    23  information  of  the  legislature,  containing  a  complete statement of
    24  disbursements, expenditures, receipts and revenues for the  prior  month
    25  and  year-to-date  of  all  state and federal funds.   The reports shall
    26  include information for all funds and, with regard to such disbursements
    27  and expenditures, shall be based  on  the  then  current  fiscal  year's
    28  appropriations  and appropriations available from the prior fiscal year.
    29  Such reports for each fiscal year  shall  contain  such  additional  and
    30  detailed information and shall be organized in such manner as the chair-
    31  man  of  the  senate  finance committee and the chairman of the assembly
    32  ways and means committee shall have last requested at  least  forty-five
    33  days  prior  to  the  beginning of such fiscal year. The comptroller may
    34  promulgate such rules and regulations, applicable to any  or  all  state
    35  officers  or  employees, as may be necessary to obtain any data required
    36  for making such reports. Such reports shall be prepared and presented in
    37  accordance with the accounting principles and policies used in the prep-
    38  aration of the budget documents for the then current fiscal year submit-
    39  ted by the governor pursuant to sections twenty-two and twenty-three  of
    40  this chapter unless the chairman of the senate finance committee and the
    41  chairman of the assembly ways and means committee shall have requested a
    42  different  preparation  or presentation.   Such monthly reports shall be
    43  certified by the independent certified public accountants as selected in
    44  the same manner as provided for in section ninety-two of the legislative
    45  law.
    46    § 8. Severability. If any clause, sentence, paragraph, section or part
    47  of this act shall be adjudged by any court of competent jurisdiction  to
    48  be  invalid  and  after  exhaustion  of all further judicial review, the
    49  judgment shall not affect, impair or invalidate the  remainder  thereof,
    50  but  shall  be  confined in its operation to the clause, sentence, para-
    51  graph, section or part of this act directly involved in the  controversy
    52  in which the judgment shall have been rendered.
    53    § 9. This act shall take effect on January 1, 2025.
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