Bill Text: NY A09884 | 2017-2018 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2018-02-16 - referred to election law [A09884 Detail]

Download: New_York-2017-A09884-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9884
                   IN ASSEMBLY
                                    February 16, 2018
                                       ___________
        Introduced  by  M.  of A. SCHIMMINGER, OAKS -- read once and referred to
          the Committee on Election Law
        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
    20  amortization period and the total anticipated debt  service  payable  on
    21  the  principal  where the proposition authorizes the creation of a state
    22  debt, a brief statement of  the  law  or  proceedings  authorizing  such
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06395-01-7
        A. 9884                             2
     1  submission,  a  statement that such submission will be made and the form
     2  in which it is to be submitted.
     3    §  3.  The  state  finance law is amended by adding a new section 6 to
     4  read as follows:
     5    § 6. State publication concerning proposition.  Any  report,  publica-
     6  tion, pamphlet or other written document prepared by a state department,
     7  agency,  authority  or  other component or division of state government,
     8  intended for distribution to the public, which is  intended  to  promote
     9  awareness of or explain the provisions contained in, or incidental to, a
    10  duly  certified  proposition  to  be  contained  on the ballot and to be
    11  submitted to the voters of the state which proposition provides for  the
    12  creation of a state debt shall contain therein an estimate of the antic-
    13  ipated  number  of years over which such debt shall be amortized and the
    14  total expected debt service payable on  the  principal  amount  of  such
    15  bonds  until  their retirement. Such information shall be printed in the
    16  largest type which is practicable to use in such document.
    17    § 4. Subdivisions 3 and 4 of section 92 of the state finance  law,  as
    18  separately  amended  by  chapters  405  and 957 of the laws of 1981, are
    19  amended to read as follows:
    20    3. At the close of each fiscal year any cash surplus remaining in  the
    21  general  fund  over  and  above  the  norm for such fiscal year shall be
    22  transferred from or retained in such fund as hereinafter in this  subdi-
    23  vision  provided.  There  shall  be transferred to the tax stabilization
    24  reserve fund all of such surplus moneys, up to and including  an  amount
    25  equivalent  to  [two-tenths]  one-half  of  one per centum of such norm,
    26  unless such transfer would increase such reserve fund to  an  amount  in
    27  excess  of  [two]  five  per  centum  of the amount of the norm for such
    28  fiscal year, in which event such  transfer  shall  be  limited  to  such
    29  amount  as will increase such reserve fund to such [two] five per centum
    30  limitation. Any balance of such surplus moneys, thereafter remaining  in
    31  the  general  fund,  shall be retained in such fund and be available for
    32  the reduction of state taxes.
    33    4. In the event that at the close of  any  fiscal  year  the  receipts
    34  derived  from  the  taxes,  fees  and other sources, required to be paid
    35  during such fiscal year into the general fund of the  state  shall  fall
    36  below the norm for such fiscal year, there shall be transferred from the
    37  tax  stabilization  reserve  fund to the general fund to the extent that
    38  there are sufficient moneys in the tax stabilization  reserve  fund,  an
    39  amount  equal  to the difference between the norm and the amount of such
    40  receipts. If such transfer reduces the tax stabilization reserve fund to
    41  an amount less than [two] five per centum of the norm  for  such  fiscal
    42  year,  the  amount  so  transferred shall be repaid in cash prior to the
    43  computation and payment of any transfer to the fund pursuant to subdivi-
    44  sion three of this section in not less than three equal annual  install-
    45  ments within the period of six years or less next succeeding the date of
    46  such  transfer;  provided,  however, that if any such annual installment
    47  shall increase such reserve fund to an amount in excess  of  [two]  five
    48  per  centum  of the amount of the norm for the then current fiscal year,
    49  such installment shall be limited to such amount as will  increase  such
    50  reserve  fund  to  such  [two] five per centum limitation and no further
    51  repayment of the whole or any part of such transfer shall be required in
    52  any subsequent fiscal year.  Repayments to the tax stabilization reserve
    53  fund shall be stipulated in annual budget bills.
    54    § 5. The state finance law is amended by adding a new section 65-a  to
    55  read as follows:
        A. 9884                             3
     1    § 65-a. Use of surplus moneys to reduce outstanding state funded debt.
     2  At  the  close  of  each  fiscal  year, at least ten percent of any cash
     3  surplus remaining in the general fund after  the  transfer  pursuant  to
     4  section  ninety-two  of  this  chapter  shall be transferred to the debt
     5  reduction  reserve  fund established by section ninety-seven-rrr of this
     6  chapter.
     7    § 6. Section 97-rrr of the state finance law, as amended by section 45
     8  of part H of chapter 56 of the laws of  2000,  is  amended  to  read  as
     9  follows:
    10    §  97-rrr. Debt reduction reserve fund. 1. There is hereby established
    11  in the joint custody of the comptroller and the commissioner of taxation
    12  and finance a fund to be known as the debt reduction reserve fund. [Such
    13  fund shall be established as a capital projects fund.]
    14    2. Such fund shall consist of all monies credited or transferred ther-
    15  eto from the general fund or from any other fund or sources pursuant  to
    16  law.
    17    3. The monies in such fund, following appropriation by the legislature
    18  and  allocation  by  the director of the budget, shall be available [for
    19  the following purposes:
    20    (a) for the payment of principal, interest, and  related  expenses  on
    21  general obligation bonds, lease purchase payments, or special contractu-
    22  al  obligation payments, or] only for the [purposes] purpose of retiring
    23  or defeasing bonds or notes previously  issued,  including  any  accrued
    24  interest  thereon, for any [state-supported bonding program or programs,
    25  and;
    26    (b) for the funding of capital projects,  equipment  acquisitions,  or
    27  similar  expenses  which  have  been  authorized  by  law to be financed
    28  through the issuance of bonds, notes, or other obligations] state funded
    29  debt.
    30    § 7. This act shall take effect immediately;  provided,  however  that
    31  provisions  of  section  four  of this act shall take effect three years
    32  after it shall have become a law.