Bill Text: NY A10340 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to enacting the New York state fiscal reform and accountability act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-05-23 - referred to ways and means [A10340 Detail]
Download: New_York-2015-A10340-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10340 IN ASSEMBLY May 23, 2016 ___________ Introduced by M. of A. FARRELL -- (at request of the State Comptroller) -- read once and referred to the Committee on Ways and Means AN ACT in relation to enacting the New York state fiscal reform and accountability act; to amend the state finance law and the public authorities law, in relation to contents of the state budget and the capital financing and program plan; to repeal section 49 of the state finance law, relating to the segregation of lump sum appropriations; and to amend the state finance law, in relation to the rainy day reserve fund (Part A); to amend the state finance law, in relation to establishing the New York state capital asset/infrastructure council (Part B); to amend the state finance law, in relation to limitations on state-funded debt; to repeal sections 67-a and 67-b of the state finance law, relating to limitations on state-supported debt; and providing for the repeal of certain provisions upon expiration thereof (Part C) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the New York state fiscal reform and 3 accountability act. Each component is wholly contained within a Part 4 identified as Parts A through C. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 § 1-a. Short title. This act shall be known and may be cited as "the 13 New York state fiscal reform and accountability act". 14 PART A EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15389-02-6A. 10340 2 1 Section 1. Subdivision 5 of section 4 of the state finance law, as 2 amended by section 16 of part PP of chapter 56 of the laws of 2009, is 3 amended to read as follows: 4 5. No money or other financial resources shall be transferred or 5 temporarily loaned from one fund to another or, from a public authority 6 to the state, another public authority or any private corporation, with- 7 out specific statutory authorization for such transfer or temporary loan 8 and all such transfer authorizations must include specific amounts to be 9 transferred and identification of the specific fund, account, or public 10 authority from which money or other financial resources are to be trans- 11 ferred and the specific fund, account or public authority to which money 12 or other financial resources are to be transferred, except that money or 13 other financial resources of a fund may be temporarily loaned to the 14 general fund during the state fiscal year provided that such loan shall 15 be repaid in full no later than (a) four months after it was made or (b) 16 by the end of the same fiscal year in which it was made, whichever peri- 17 od is shorter, so that an accurate accounting and reporting of the 18 balance of financial resources in each fund may be made. The comptroller 19 is hereby authorized to temporarily loan money from the general fund or 20 any other fund to the fund/accounts that are authorized to receive a 21 loan. Such loans shall be limited to the amounts immediately required to 22 meet disbursements, made in pursuance of an appropriation by law and 23 authorized by a certificate of approval issued by the director of the 24 budget with copies thereof filed with the comptroller and the chair of 25 the senate finance committee and the chair of the assembly ways and 26 means committee. The director of the budget shall not issue such a 27 certificate unless he or she shall have determined that the amounts to 28 be so loaned are receivable on account. When making loans, the comp- 29 troller shall establish appropriate accounts and if the loan is not 30 repaid by the end of the month, provide on or before the fifteenth day 31 of the following month to the director of the budget, the chair of the 32 senate finance committee and the chair of the assembly ways and means 33 committee, an accurate accounting and report of the financial resources 34 of each such fund at the end of such month. Within ten days of the 35 receipt of such accounting and reporting, the director of the budget 36 shall provide the comptroller and the chair of the senate finance 37 committee and the chair of the assembly ways and means committee an 38 expected schedule of repayment by fund and by source for each outstand- 39 ing loan. Repayment shall be made by the comptroller from the first cash 40 receipt of this fund. 41 § 2. Paragraphs a and e and subparagraph (v) of paragraph d-2 of 42 subdivision 3 of section 22 of the state finance law, paragraph a as 43 amended by chapter 762 of the laws of 1992, and subparagraph (v) of 44 paragraph d-2 and paragraph e as amended by chapter 1 of the laws of 45 2007, are amended to read as follows: 46 a. The appropriations, including reappropriations, made for the 47 current fiscal year, the appropriations and reappropriations recommended 48 for the ensuing fiscal year, the disbursements estimated to be made 49 before the close of the current fiscal year and proposed to be made 50 during the ensuing fiscal year based upon available and recommended 51 appropriations and reappropriations, and for each item of appropriation 52 where the appropriation is subject to allocation by means of (i) a memo- 53 randum of understanding, (ii) an interchange with another item of appro- 54 priation, (iii) transfer or sub-allocation to another agency, or (iv) 55 any other method of allocating any appropriation or re-appropriation 56 into smaller sums, shall state separately the appropriation amount, byA. 10340 3 1 program, object and purpose, and the projected disbursement level, by 2 projected recipient and amount of each smaller sum such item of appro- 3 priation is projected to be allocated. Disbursements proposed to be made 4 shall be shown in separate parts as follows: those disbursements 5 proposed to be made for state purposes shall be set forth in one part, 6 those disbursements proposed to be made for local assistance shall be 7 set forth in another separate and distinct part, those disbursements 8 proposed to be made for capital projects shall be set forth in a third 9 separate and distinct part and those disbursements proposed to be made 10 for debt service shall be set forth in a fourth separate and distinct 11 part. The effect of any proposed changes in the payment dates of partic- 12 ular disbursements on the financial plan presented in accordance with 13 subdivision one of this section shall be set forth separately. 14 (v) an itemized list of transfers to and from [the general fund] each 15 governmental fund and the effect of such transfers on programs and 16 activities associated with the funds from which money or other financial 17 resources are transferred. 18 e. [The] For each fund type, the anticipated [general fund] quarterly 19 schedule and fiscal year total for the prior, current and next ensuing 20 three fiscal years of: disbursements; receipts; repayments of advances; 21 total tax refunds; and refunds for the tax imposed under article twen- 22 ty-two of the tax law. Such information shall be presented in the same 23 form as the summary financial plans presented in accordance with subdi- 24 visions one and two of this section. A separate, detailed, report of 25 such schedule shall be provided with receipts shown by each major reven- 26 ue category, including [detail for each major tax and major components27of miscellaneous receipts, and with disbursements shown by major func-28tion or program] each individual tax, each individual component part of 29 miscellaneous receipts, and each revenue source which accounts for at 30 least one-half of one percent of all receipts within each fund type and 31 with disbursements shown by major agency or major spending item. The 32 director of the division of the budget shall submit concurrent with the 33 submission of the financial plan to the legislature pursuant to subdivi- 34 sion two of this section and with each update thereafter a revised 35 monthly general fund cash flow projection of receipts and disbursements 36 for the current fiscal year that: (1) compares actual results to (i) 37 actual results through the same period for the prior year and (ii) the 38 most recent prior update to the financial plan and to the enacted budget 39 financial plan; (2) summarizes the reasons for any variances; and (3) 40 describes the revisions to the cash flow projections. The monthly gener- 41 al fund cash flow projection shall be stated by major category of local 42 assistance, personal service, nonpersonal service, general state charg- 43 es, and debt service, and by major category of revenue and shall include 44 a schedule of actual and planned disbursements by month, by agency, fund 45 type, and program, stating separately and distinctly variances between 46 actual and projected fiscal year to date disbursements and projected 47 disbursements for the remaining months of the fiscal year. Such reports 48 shall utilize a format that shall facilitate comparison and analysis 49 with those reports submitted to the legislature by the office of audit 50 and control pursuant to subdivision nine of section eight of this chap- 51 ter. 52 § 3. Subdivision 4 of section 23 of the state finance law, as amended 53 by chapter 1 of the laws of 2007, is amended to read as follows: 54 4. Financial plan updates. Quarterly, throughout the fiscal year, the 55 governor shall submit to the comptroller, the chairs of the senate 56 finance and the assembly ways and means committees, within thirty daysA. 10340 4 1 of the close of the quarter to which it shall pertain, a report which 2 summarizes the actual experience to date and projections for the remain- 3 ing quarters of the current fiscal year and for each of the next two 4 fiscal years of receipts, disbursements, tax refunds, and repayments of 5 advances presented in forms suitable for comparison with the financial 6 plan submitted pursuant to subdivisions one, four, and five, of section 7 twenty-two of this article including detail for each individual tax, 8 each individual component part of miscellaneous receipts, and each 9 revenue source which accounts for at least one-half of one percent of 10 all receipts within each fund type and with disbursements shown by major 11 agency or major spending item and revised in accordance with the 12 provisions of subdivision three of this section. Such report shall 13 include a schedule of actual and planned disbursements by month, by 14 agency, fund type, and program, stating separately and distinctly vari- 15 ances between actual and projected fiscal year to date disbursements and 16 projected disbursements for the remaining months of the fiscal year. The 17 governor shall submit with the budget a similar report that summarizes 18 revenue and expenditure experience to date in a form suitable for 19 comparison with the financial plan submitted pursuant to subdivision two 20 of section twenty-two of this article and revised in accordance with the 21 provisions of subdivision three of this section. Such reports shall 22 provide an explanation of the causes of any major deviations from the 23 revised financial plans and, shall provide for the amendment of the plan 24 or plans to reflect those deviations. The governor may, if he determines 25 it advisable, provide more frequent reports to the legislature regarding 26 actual experience as compared to the financial plans. The quarterly 27 financial plan update most proximate to October thirty-first of each 28 year shall include the calculation of the limitations on the issuance of 29 state-supported debt computed pursuant to the provisions of subdivisions 30 one and two of section sixty-seven-b of this chapter. On or after Janu- 31 ary first, two thousand eighteen, the enacted budget financial plan and 32 financial plan updates submitted by the governor pursuant to this subdi- 33 vision shall bear the financial plan program reference number or numbers 34 to which every appropriation or reappropriation shall pertain, and shall 35 be classified into the same category as the associated program or 36 programs have been classified in such financial plan, and for each item 37 of appropriation where the appropriation is subject to allocation by 38 means of (i) a memorandum of understanding, (ii) an interchange with 39 another item of appropriation, (iii) transfer or suballocation to anoth- 40 er agency, or (iv) any other method of allocating any appropriation or 41 reappropriation into smaller sums, shall state separately the appropri- 42 ation amount, by program, object and purpose, and the projected 43 disbursement level, by projected recipient and amount of each smaller 44 sum such item of appropriation is projected to be allocated. 45 § 4. Section 22 of the state finance law is amended by adding two new 46 subdivisions 5-a and 5-b to read as follows: 47 5-a. For each agency or public authority, by program and fund, identi- 48 fy: 49 (a) amounts, by appropriation or reappropriation, proposed to maintain 50 current services; 51 (b) amounts, by appropriation or reappropriation, proposed to support 52 new program initiatives, or policy changes; 53 (c) estimated disbursements for each appropriation or reappropriation 54 separately identified in paragraphs (a) and (b) of this subdivision; and 55 (d) estimated disbursements for carry-over spending for each appropri- 56 ation, by program and fund.A. 10340 5 1 5-b. Include summaries that identify disbursements, carry-over spend- 2 ing and new spending by each agency or public authority, by program and 3 fund, separately identified for state purposes, local assistance, capi- 4 tal projects, and general state charges. 5 § 5. Subdivision 3 of section 23 of the state finance law, as amended 6 by chapter 1 of the laws of 2007, is amended to read as follows: 7 3. [Financial] Preliminary budget assessment, financial plans and 8 capital improvement program; revisions. Prior to the date the legisla- 9 ture finally acts upon the appropriation bill or bills submitted by the 10 governor pursuant to section three of article seven of the state consti- 11 tution, the governor shall cause to be submitted to the legislature and 12 made accessible to the public, via an official or shared internet web 13 site, a preliminary overview of the estimated financial plan impact of 14 revisions to the budget that occurred between the submission of the 15 budget bills by the governor and the bills, as amended by the legisla- 16 ture, that are anticipated to be passed by both houses of the legisla- 17 ture and constitute final passage of the budget which shall include, but 18 not be limited to, a description of receipts and disbursements in the 19 general fund and all governmental funds as well as a general 20 description, by agency and program where applicable, of changes in 21 revenue and spending projections that occurred between the governor's 22 submission and action by the legislature. Not later than thirty days 23 after the legislature has completed action on the budget bills submitted 24 by the governor and the period for the governor's review has elapsed, 25 the governor shall cause to be submitted to the legislature the 26 revisions to the financial plans and the capital plan required by subdi- 27 visions one, two, three, four [and], five, five-a, and five-b of section 28 twenty-two of this article as are necessary to account for all enact- 29 ments affecting the financial plans and the capital plan. The financial 30 plan shall also contain a cash flow analysis of projected receipts and 31 disbursements and other financing sources or uses for each month of the 32 state's fiscal year. Notwithstanding any other law to the contrary, such 33 revised plans and accompanying cash flow analysis shall be submitted to 34 the legislature and the comptroller in the same form as the plans 35 required by such subdivisions. 36 § 6. The state finance law is amended by adding a new section 40-b to 37 read as follows: 38 § 40-b. Appropriation of state funds; agencies and authorities. 39 Notwithstanding the provisions of any other section of law to the 40 contrary, no moneys shall be paid from any fund under the management of 41 the state, or any agency or officer thereof for any state agency or 42 public authority spending for a state purpose or project supported in 43 any way by state funds, including state funded public authority bond 44 proceeds, except in pursuance of an appropriation by law and payable 45 only upon audit and warrant of the state comptroller. 46 § 7. Section 24 of the state finance law, as amended by chapter 762 of 47 the laws of 1992, subdivision 1 as amended and subdivisions 4 and 5 as 48 added by chapter 1 of the laws of 2007, and subdivision 2 as amended by 49 section 2 of part O of chapter 59 of the laws of 2009, is amended to 50 read as follows: 51 § 24. Budget bills. 1. The budget submitted annually by the governor 52 shall be simultaneously accompanied by a bill or bills for all proposed 53 appropriations and reappropriations and for the proposed measures of 54 taxation or other legislation, if any, recommended therein. Such bills 55 shall be submitted by the governor and shall be known as budget bills; 56 provided, however, that all appropriations and reappropriationsA. 10340 6 1 contained in such budget bills shall only contain itemized appropri- 2 ations which shall not be in the form of lump sum appropriations. On or 3 after January first, two thousand eighteen, every proposed appropriation 4 or reappropriation submitted by the governor shall specifically relate 5 to a program which is included in the financial plan presented as part 6 of the budget submitted pursuant to section twenty-two of this article. 7 Each proposed appropriation or reappropriation for a program shall bear 8 the financial plan program reference number or numbers to which it shall 9 pertain, and shall be classified into the same category as the associ- 10 ated program or programs have been classified in such financial plan. 11 (a) [For all] All non-federal state operations appropriations [, such12bill or bills shall only contain itemized appropriations and] shall not 13 be made in form of lump sum appropriations and shall be [made, where14practicable,] itemized by agency and within each agency by program and 15 within each program at the following level of detail and in the follow- 16 ing order: 17 (i) by fund type, which at a minimum shall include general fund, 18 special revenue-other funds, capital projects funds, and debt service 19 funds; 20 (ii) for personal service appropriations, separate appropriations 21 shall be made for regular personal service, temporary personal service, 22 and holiday and overtime pay; 23 (iii) for nonpersonal service appropriations, separate appropriations 24 shall be made for supplies and materials, travel, contractual services, 25 equipment, and fringe benefits, as appropriate. 26 (b) Any appropriation for temporary assistance for needy families, the 27 environmental protection fund, and the medical assistance program, shall 28 only contain itemized appropriations which shall not be in the form of 29 lump sum appropriations, provided, however, for the purposes of the 30 medical assistance program, itemized appropriations shall consist of 31 categories-of-service with separate appropriations for hospital inpa- 32 tient, hospital outpatient and emergency room, clinic, nursing home, 33 other long-term care, managed care, pharmacy, dental, transportation, 34 and other non-institutional services. 35 2. (a) On or after January first, nineteen hundred eighty-four, no 36 budget bill submitted by the governor may include any proposed appropri- 37 ation or reappropriation for any capital project which is not included 38 in the capital plan presented as part of the budget submitted pursuant 39 to section twenty-two of this article. Each proposed appropriation or 40 reappropriation for a capital project shall bear the capital plan 41 project reference number or numbers to which it shall pertain, and shall 42 be classified into the same category as the associated capital project 43 or projects have been classified in such capital plan. Reappropriations 44 of appropriations effective for fiscal years beginning prior to April 45 first, nineteen hundred eighty-four may be presented by the categories 46 of appropriation contained in the bill originally enacting such appro- 47 priation. 48 (b) On or after January first, two thousand ten, any budget bill 49 submitted by the governor containing a proposed appropriation from the 50 dedicated highway and bridge trust fund shall not be made in form of 51 lump sum appropriations and shall be itemized to show the following 52 information for each such appropriation: 53 (i) each amount appropriated from the dedicated highway and bridge 54 trust fund for capital purposes; 55 (ii) the amount of each such appropriation to be used for personal 56 service expenses; andA. 10340 7 1 (iii) the amount of each such appropriation to be used for non-person- 2 al service expenses. 3 3. Any appropriation for maintenance undistributed shall be shown as 4 apportioned among the items covered [to the extent practicable]. 5 4. Any appropriation added to such budget bills, pursuant to section 6 four of article seven of the constitution or concurrent resolution, 7 shall only contain itemized appropriations which shall not be in the 8 form of lump sum appropriations, and provided further that for all non- 9 federal state operations appropriations, such bill or bills [shall only10contain itemized appropriations and] shall not be made in form of lump 11 sum appropriations and shall be [made, where practicable,] itemized by 12 agency, and within each agency by program and within each program at the 13 following level of detail and in the following order: 14 (a) by fund type, which at a minimum shall include general fund, 15 special revenue-other funds, capital projects funds and debt service 16 funds; 17 (b) for personal service appropriations, separate appropriations shall 18 be made for regular personal service, temporary personal service, and 19 holiday and overtime pay; 20 (c) for nonpersonal service appropriations, separate appropriations 21 shall be made for supplies and materials, travel, contractual services, 22 equipment and fringe benefits, as appropriate. 23 5. [Any appropriation added pursuant to section four of article seven24of the constitution without designating a grantee shall be allocated25only pursuant to a plan setting forth an itemized list of grantees with26the amount to be received by each, or the methodology for allocating27such appropriation. Such plan shall be subject to the approval of the28chair of the senate finance committee, the chair of the assembly ways29and means committee, and the director of the budget, and thereafter30shall be included in a concurrent resolution calling for the expenditure31of such monies, which resolution must be approved by a majority vote of32all members elected to each house upon a roll call vote] 33 (a) To the extent that any appropriation or reappropriation either (i) 34 does not identify a specific recipient, or (ii) is not subject to allo- 35 cation by a statutory formula, such appropriation or reappropriation 36 must identify an administering state agency or public authority and, 37 prior to the disbursement of any funds so appropriated, each such state 38 agency or public authority shall: 39 (i) develop and execute a process in accordance with all provisions of 40 law applicable to a program administered by a state agency whereby each 41 project proposed to be funded with such appropriation or reappropriation 42 shall be scored and ranked based on clear, measurable and objective 43 criteria. The ranking of such projects shall indicate their relative 44 importance in the best interest of the state; 45 (ii) develop and execute a process in accordance with all provisions 46 of law applicable to a program administered by a state agency for enter- 47 ing into any contract or commitment for the disbursement of such funds 48 which shall include, where appropriate, public advertising for bids or 49 proposals, and a method for awarding contracts under each project that 50 shall permit full and free competition. Such method shall be based on 51 clear, measurable and objective criteria; and 52 (iii) identify each project to be funded with such appropriation or 53 reappropriation and the portion of such appropriation or reappropriation 54 to be allocated to each project. 55 (b) Any appropriation added pursuant to section four of article seven 56 of the constitution shall identify a specific recipient or grantee, orA. 10340 8 1 shall be subject to allocation by a statutory formula, or shall be 2 subject to allocation pursuant to the provisions of paragraph (a) of 3 this subdivision. 4 § 8. Section 49 of the state finance law is REPEALED. 5 § 9. The state finance law is amended by adding a new section 24-a to 6 read as follows: 7 § 24-a. Budget director; spending transparency report. The budget 8 director shall report annually to the legislature, the office of the 9 state comptroller and the public on all spending for which an appropri- 10 ation does not provide either a specific recipient and/or the allocation 11 of an appropriation is not provided for through a statutory formula, 12 including, but not limited to the allocation of lump sum appropriations 13 and other discretionary funds, identifying, by appropriation, the amount 14 allocated by project, the selection process and criteria used, overall 15 scoring and ranking of projects evaluated, and each funded project 16 score. Such report shall also provide the final allocation of any appro- 17 priation subject to allocation by means of (i) a memorandum of under- 18 standing, (ii) an interchange with another item of appropriation, (iii) 19 transfer or suballocation to another agency, or (iv) any other method of 20 allocating an appropriation into smaller sums, identifying disbursement 21 information by agency, fund and program with project-level detail. Such 22 report shall also include the fiscal and programmatic impact of any 23 executed transfers between funds and/or public authorities on programs 24 and activities associated with such funds and/or public authorities from 25 which money or other financial resources are transferred and to which 26 money or financial resources are transferred. 27 § 10. The public authorities law is amended by adding a new section 28 2801-a to read as follows: 29 § 2801-a. Quarterly reports by authorities. 1. State authorities. 30 Every state authority or commission heretofore or hereafter continued or 31 created by this chapter or any other chapter of the laws of the state of 32 New York shall submit quarterly to the governor, the chair and ranking 33 minority member of the senate finance committee, the chair and ranking 34 minority member of the assembly ways and means committee, the state 35 comptroller and the authorities budget office, for their information, a 36 report on the expenditure of funds pursuant to an appropriation by the 37 state, including identifying, by appropriation, the amount allocated by 38 project, the selection process and criteria used, and each funded 39 project score, as well as the overall scoring and ranking of projects 40 evaluated. 41 2. Local authorities. Every local authority heretofore or hereafter 42 continued or created by this chapter or any other chapter of the laws of 43 the state of New York shall submit quarterly to the chief executive 44 officer, the chief fiscal officer, the chairperson of the legislative 45 body of the local government or governments, the office of the state 46 comptroller and the authorities budget office for their information, a 47 report on the expenditure of funds pursuant to an appropriation by the 48 state, including identifying, by appropriation, the amount allocated by 49 project, the selection process and criteria used, and each funded 50 project score, as well as the overall scoring and ranking of projects 51 evaluated. 52 § 11. Section 51 of the public authorities law is amended by adding a 53 new subdivision 6 to read as follows: 54 6. The board shall make accessible to the public, via its official or 55 shared internet web site, by meeting date, all resolutions, project 56 descriptions, board materials and project lists, for at least ten years.A. 10340 9 1 § 12. Subdivision 1 and 2 of section 92-cc of the state finance law, 2 subdivision 1 as added by chapter 1 of the laws of 2007 and subdivision 3 2 as amended by section 12-a of part I of chapter 60 of the laws of 4 2015, are amended and new subdivision 2-a is added to read as follows: 5 1. a. There is hereby established in the state treasury a fund to be 6 known as the "rainy day reserve fund". Such fund shall consist of moneys 7 deposited therein and monies shall be withdrawn from such fund only for 8 the purposes as provided therein. 9 b. For the purposes of this subdivision, "cash surplus" shall mean the 10 positive amount by which, at of the close of each fiscal year, the total 11 general fund balance exceeds the general fund balance as projected in 12 the enacted budget financial plan. 13 2. Such fund shall have a maximum balance not to exceed [five] eight 14 per centum of the aggregate amount projected to be disbursed from the 15 general fund during the fiscal year immediately following the then-cur- 16 rent fiscal year. [At the request of the director of the budget, the] 17 The state comptroller shall transfer monies to the rainy day reserve 18 fund [up to and including] in an amount equivalent to [seventy-five19one-hundredths of one per centum of the aggregate amount projected to be20disbursed from the general fund during the then-current fiscal year] the 21 cash surplus, provided, however, that in cases where tax receipts 22 received in all governmental funds and miscellaneous receipts received 23 in the general fund for the immediately preceding fiscal year decreased 24 or did not increase or decrease from the fiscal year preceding such 25 year, the state comptroller shall transfer monies to the rainy day 26 reserve fund at the request of the director of the budget unless such 27 transfer would increase the rainy day reserve fund to an amount in 28 excess of [five] eight per centum of the aggregate amount projected to 29 be disbursed from the general fund during the fiscal year immediately 30 following the then-current fiscal year, in which event such transfer 31 shall be limited to such amount as will increase the rainy day reserve 32 fund to such [five] eight per centum limitation. 33 2-a. At the close of each fiscal year, any cash surplus remaining in 34 the general fund after transfers pursuant to section ninety-two of this 35 article and this section shall be deposited in the debt reduction 36 reserve fund established pursuant to section ninety-seven-rrr of this 37 chapter. 38 § 13. This act shall take effect immediately. 39 PART B 40 Section 1. The state finance law is amended by adding a new article 17 41 to read as follows: 42 ARTICLE 17 43 NEW YORK STATE CAPITAL ASSET AND INFRASTRUCTURE COUNCIL 44 Section 250. Definitions. 45 251. New York state capital asset and infrastructure council; 46 creation; procedure. 47 252. Powers and duties. 48 § 250. Definitions. As used in this article, the following terms shall 49 have the following meanings: 50 1. "Capital assets" shall mean fixed assets and infrastructure assets, 51 including, but not limited to, land, buildings, equipment, roads, and 52 bridges of the state, a state agency or state authority, and shall alsoA. 10340 10 1 include any capital asset of a local authority or a municipal corpo- 2 ration that, in the judgment of the New York state capital asset and 3 infrastructure council is significantly funded by state monies. 4 2. "Council" shall mean the New York state capital asset and infras- 5 tructure council established pursuant to section two hundred fifty-one 6 of this article. 7 3. "Construction" shall mean the erection, acquisition, alteration, 8 reconstruction, repair, rehabilitation, improvement, equipping, enlarge- 9 ment or extension of a capital asset, including land acquisition and the 10 engineering, architectural, legal, fiscal and economic investigations, 11 studies, surveys, designs, plans, drawings, specifications, procedures 12 and other actions relating to a capital asset. 13 4. "Local authority" shall mean: 14 (a) a public authority or public benefit corporation created by or 15 existing under this chapter or any other law of the state whose members 16 do not hold a civil office of the state, are not appointed by the gover- 17 nor or are appointed by the governor specifically upon the recommenda- 18 tion of the local government or governments; 19 (b) a not-for-profit corporation affiliated with, sponsored by, or 20 created by a county, city, town or village government; 21 (c) a local industrial development agency or authority or other local 22 public benefit corporation; or 23 (d) an affiliate or subsidiary of such local authority. 24 5. "State authority" shall mean a public authority or public benefit 25 corporation created by or existing under this chapter or any other law 26 of the state, with one or more of its members appointed by the governor 27 or who serve as members by virtue of holding a civil office of the 28 state, other than an interstate or international authority or public 29 benefit corporation, including subsidiaries of such public authority or 30 public benefit corporation. 31 6. "Maintenance" shall mean any regularly scheduled activity including 32 a routine repair intended to ensure that a capital asset continues to 33 operate safely and efficiently and as intended. 34 7. "Municipal corporation" shall mean a county, city, town or village 35 and shall include any special district therein. 36 8. "Rehabilitation" shall mean an action to extend the useful life or 37 improve the effectiveness of an existing capital asset. 38 § 251. New York state capital asset and infrastructure council; 39 creation; procedure. 1. Within the executive department there is hereby 40 established an independent council to be known as the New York state 41 capital asset and infrastructure council to have and exercise the powers 42 and duties provided by the provisions of this article. 43 2. The purpose of the council is to develop and implement a process to 44 identify, monitor, plan, recommend, and publicly report on all capital 45 assets of state agencies and state authorities and, in the discretion of 46 the council, local authorities and municipal corporations, to ensure 47 that the capital assets meet current and future needs of the public, 48 facilitate economic growth, are maintained in a good operating condition 49 that ensures public safety, and are developed or modified in a sustaina- 50 ble manner as provided by the provisions of this article. 51 3. The council shall consist of five members appointed by the gover- 52 nor, one of whom shall be appointed upon the recommendation of the 53 temporary president of the senate, one of whom shall be appointed upon 54 the recommendation of the speaker of the assembly, and one of whom shall 55 be appointed upon the recommendation of the comptroller. One of the 56 members shall be designated as chair by the governor. Each member of theA. 10340 11 1 council shall have experience in one or more of the fields of economics, 2 public administration, civil engineering, public works, construction or 3 a related design profession, planning, public investment financing, 4 environmental engineering or water resources engineering. The two 5 members first appointed by the governor without the recommendation of 6 any other state official shall serve an initial term of four years; the 7 member first appointed upon the recommendation of the temporary presi- 8 dent of the senate shall serve an initial term of three years; the 9 member first appointed upon the recommendation of the speaker of the 10 assembly shall serve an initial term of three years; and the member 11 first appointed upon the recommendation of the state comptroller shall 12 serve an initial term of two years. Upon expiration of a member's 13 initial term, each subsequent term shall be for a period of four years. 14 4. Notwithstanding any inconsistent provision of law, no officer or 15 employee of the state, of any political subdivision of the state, of any 16 governmental entity operating any public school or college, or of any 17 other public agency or instrumentality or unit of government which exer- 18 cises governmental powers under the laws of the state, shall forfeit 19 such office or employment by reason of acceptance or appointment as a 20 member, representative, officer, employee or agent of the council. The 21 members, their representatives, officers and staff to the council shall 22 be deemed employees within the meaning of section seventeen of the 23 public officers law. 24 5. The members of the council shall serve without salary or per diem 25 allowance but shall be entitled to reimbursement for actual and neces- 26 sary expenses incurred in the performance of their official duties 27 pursuant to this article; provided, however, that such members and 28 representatives are not, at the time such expenses are incurred, public 29 employees otherwise entitled to such reimbursement. 30 § 252. Powers and duties. 1. The council shall have the power to: 31 (a) hold such hearings, meet and act at such times and places, take 32 such testimony, administer such oaths or affirmations and receive such 33 evidence as the council considers advisable to carry out its responsi- 34 bilities; 35 (b) require the production of any books, and collection and compila- 36 tion of data deemed relevant or material to any review undertaken pursu- 37 ant to its purpose under this article; 38 (c) request and receive from any department, division, board, commis- 39 sion or other agency of the state, including any state authorities, 40 local authorities and municipal corporations any relevant information 41 necessary to carry out the responsibilities and provisions set forth in 42 this article; 43 (d) enter into cooperative agreements with other government offices, 44 state agencies, state authorities, local authorities and municipal 45 corporations to efficiently support the work of the council and carry 46 out its responsibilities; 47 (e) have direct input and prompt access to the head of any state agen- 48 cies, state authorities, local authorities and municipal corporations 49 and any member and employee thereof when necessary or useful in the 50 performance of the duties or responsibilities of the council; 51 (f) issue such reports and other documents as the council determines 52 to be necessary or advisable; and 53 (g) advise and make recommendations to the governor, the legislature, 54 the comptroller, and other agencies, state authorities, local authori- 55 ties and municipal corporations of the state on matters affecting the 56 condition of the capital assets within the state.A. 10340 12 1 2. The council shall identify the capital assets located within the 2 state on a periodic basis and assess the condition of the assets by: 3 (a) developing uniform criteria and procedures for use in conducting 4 inventories and assessments, including formal standards defining a state 5 of good repair and replacement cycles for capital assets, and standards 6 requiring clear justification in terms of rigorous economic analysis for 7 proposed new capital investments or expansions; 8 (b) inventorying all existing capital assets using to the extent prac- 9 ticable, existing inventories available from all sources; where existing 10 inventories are not available, a process for state agencies and state 11 authorities and, in the discretion of the council, local authorities and 12 municipal corporations, to inventory all existing capital assets will be 13 developed subject to approval of the council; and 14 (c) assessing the condition of capital assets, including but not 15 limited to changes in the condition of those capital assets as compared 16 with preceding years and identification of needed improvements. 17 3. The council shall develop recommendations based on comprehensive 18 studies and assessments undertaken pursuant to subdivision two of this 19 section, and shall report its findings and recommendations to the gover- 20 nor, the legislature and the comptroller not later than June fifteenth, 21 two thousand eighteen, and annually thereafter, and shall make such 22 reports accessible to the public, via its official or shared internet 23 web site. The recommendations of the council shall include: 24 (a) proposed improvements in prioritizing the planning and funding of 25 capital asset investments; 26 (b) improved procedures for ensuring that state agencies and state 27 authorities and, in the discretion of the council, local authorities and 28 municipal corporations replace assets on regular replacement schedules 29 according to reliable estimates of their useful lives; and 30 (c) improvements in criteria and procedures that may be used by state 31 agencies and state authorities and, in the discretion of the council, 32 local authorities and municipal corporations, in: 33 (i) determining the capacity of capital assets to sustain current and 34 anticipated economic development and competitiveness, including long- 35 term economic growth, including the potential return on investments in 36 new capital assets as opposed to investments in existing capital assets; 37 (ii) maintaining data in a form that is readily accessible to the 38 public; 39 (iii) the methods used to finance the construction, acquisition, reha- 40 bilitation and maintenance of capital assets; 41 (iv) comprehensive investment requirements, by type of capital asset, 42 that are necessary to maintain the current condition and performance of 43 the capital assets and the investment needed to improve capital assets 44 in the future; 45 (v) trends or innovations in construction methods or materials for 46 capital assets; 47 (vi) the impact of local development patterns on demand for funding of 48 capital assets; 49 (vii) the impact of deferred maintenance; and 50 (viii) the impact of deteriorated capital assets. 51 4. The council shall report updated findings and recommendations in a 52 manner consistent with the provisions of subdivision three of this 53 section, to be known as the "comprehensive statewide capital needs 54 assessment". Such reports shall be issued not later than the last day of 55 the calendar year following the year in which the report required byA. 10340 13 1 subdivision three of this section is issued and, thereafter, on an annu- 2 al basis. 3 5. (a) The council shall issue a comprehensive twenty year strategic 4 plan for capital needs encompassing necessary maintenance activities, 5 scheduled asset replacement and expansion, the status of current capital 6 activities, and related financing. The long-term strategic plan shall be 7 developed based on the capital projects identified in the comprehensive 8 statewide capital needs assessment and future capital project needs of 9 the state, with clear interim goals and benchmarks. 10 (b) The long-term strategic plan shall be updated and revised every 11 even-numbered year, and issued simultaneously with the comprehensive 12 statewide capital needs assessment of that year. 13 § 2. The opening paragraph of section 22-c of the state finance law, 14 as amended by section 3 of part F of chapter 389 of the laws of 1997, is 15 amended to read as follows: 16 The governor shall annually submit to the legislature a capital 17 program and financing plan concurrent with the executive budget, in 18 addition to the information required by section twenty-two of this arti- 19 cle. The plan, along with capital appropriations proposed in the execu- 20 tive budget or enacted by the legislature, shall derive from the long- 21 term strategic plan established by subdivision five of section two 22 hundred fifty-two of this chapter. Any deviation from the long-term 23 strategic plan must be justified. The plan shall contain a comprehensive 24 assessment of the capital assets and program needs of all state agen- 25 cies, a review and analysis of how such requirements would be financed, 26 an analysis of the affordability of state-supported debt, and an analy- 27 sis of all costs related to the financing of such plan. 28 § 3. This act shall take effect immediately. 29 PART C 30 Section 1. Sections 67-a and 67-b of the state finance law are 31 REPEALED and five new sections 67-a, 67-b, 67-b-1, 67-b-2 and 67-d are 32 added to read as follows: 33 § 67-a. Definitions. As used in this article the following terms shall 34 have the following meanings: 35 1. "State debt" shall mean all bonds, bond anticipation notes, tax and 36 revenue anticipation notes and revenue debt issued by the comptroller 37 pursuant to article five of this chapter. 38 2. "State-backed debt" shall mean any debt or obligation, other than 39 state debt, that is supported in whole or in part by any financing 40 arrangement whereby the state agrees or has in the past agreed, whether 41 by law, contract or otherwise, to make payments which will be used, 42 directly or indirectly, for the payment of principal, interest or 43 related payments on indebtedness incurred or contracted by the state 44 itself for any purpose, or by any state agency, municipality, individ- 45 ual, public authority or other public or private corporation or any 46 other entity for state capital or operating purposes or to finance 47 grants, loans or other assistance payments made or to be made by or on 48 behalf of the state for any purpose. If the state agrees or has agreed 49 on or after April first, nineteen hundred ninety-seven to make future 50 revenues from a specific state source available for the purpose of 51 supporting debt of any municipality, individual, public authority or 52 other public or private corporation or any other entity, or, if on or 53 after such date, a program of debt is authorized to be issued where 54 state aid is intended to be the sole source of payment of debt service,A. 10340 14 1 such debt shall be considered to be a debt for the purpose of financing 2 a state grant, loan or other assistance payment and shall be a "state- 3 backed debt" for the purposes of this article. The term "state-backed 4 debt" applies to all debt or obligations described in this subdivision 5 for which the state agrees, or has in the past agreed, to make payments 6 (a) whether or not the obligation of the state to make payments is 7 subject to appropriation, or (b) whether or not debt service is to be 8 paid from a revenue stream transferred by the state to another party 9 that is responsible for making such payments. 10 3. "State-funded debt" shall mean the combined total of all state 11 debt, as defined in subdivision one of this section, and all state- 12 backed debt except short term debt incurred in accordance with section 13 nine of article seven of the constitution, and shall include all debt 14 outstanding on the effective date of this section. 15 4. "State-supported debt" shall mean any bonds or notes, including 16 bonds or notes issued to fund reserve funds and costs of issuance, 17 issued by the state or a state public corporation for which the state is 18 constitutionally obligated to pay debt service or is contractually obli- 19 gated to pay debt service subject to an appropriation, except where the 20 state has a contingent contractual obligation. 21 5. "Revenue debt" shall mean state debt issued by the comptroller and 22 supported by future revenues from a specific state source. 23 6. "Total personal income of the state" shall mean the most recently 24 published estimated dollar amount determined as total personal income of 25 the state of New York by the United States department of commerce or any 26 successor agency for the four most recent successive calendar quarters 27 for which information is available prior to October thirty-first of each 28 year. Subsequent revisions of the published estimated dollar amount for 29 such calendar quarters shall not affect the validity of the determi- 30 nation made for any fiscal year. 31 7. "Capital work or purpose" shall mean any project involving: 32 (a) the acquisition, construction, demolition or replacement of a 33 fixed asset or assets; 34 (b) the major repair or renovation of a fixed asset, which materially 35 extends its useful life or materially improves or increases its capaci- 36 ty; or 37 (c) the planning or design of the acquisition, construction, demoli- 38 tion, replacement, major repair or renovation of a fixed asset, includ- 39 ing the preparation and review of plans and specifications including 40 engineering and other services, field surveys and sub-surface investi- 41 gations incidental thereto. 42 8. "Conduit debt obligation" shall mean a debt obligation issued by a 43 public authority (the "conduit issuer") on behalf of a third party (the 44 "conduit borrower") other than the state or a political subdivision of 45 the state, where payment of the obligation is to be made from funds of 46 the conduit borrower, the security for the obligation is the credit of 47 the conduit borrower and no funds of the conduit issuer, the state or a 48 political subdivision of the state are pledged to secure the obligation, 49 whether or not the obligation of the conduit issuer, the state or poli- 50 tical subdivision of the state is subject to appropriation or is other- 51 wise contingent. 52 § 67-b. Duties with respect to state-funded debt. 1. On or before 53 October thirty-first, two thousand twenty-five and on or before October 54 thirty-first of each year thereafter, the division of budget shall have 55 the responsibility to determine the total debt limit of the state byA. 10340 15 1 calculating the dollar amount equivalent to five percent of the total 2 personal income of the state. 3 2. On or before October thirty-first, two thousand twenty-five and on 4 or before October thirty-first of each year thereafter, the division of 5 budget shall determine the total debt limit of the state, and pursuant 6 to section sixty-seven-b-two of this article for the next fiscal year 7 and determine whether the total principal amount of additional debt 8 projected to be incurred in the next fiscal year, together with the 9 total principal amount of state-funded debt already outstanding is equal 10 to or greater than the debt limit, and report such information by Octo- 11 ber thirty-first, to the temporary president of the senate, the speaker 12 of the assembly, the chairperson and ranking minority member of the 13 senate finance committee, the chairperson and ranking minority member of 14 the assembly ways and means committee, and the comptroller. On or before 15 such date, the division of budget shall issue a public announcement of 16 such limit. 17 3. The executive's proposed budget for state fiscal year two thousand 18 seventeen--two thousand eighteen shall include a plan setting forth the 19 annual target percentages and methodology for the implementation of the 20 provisions of subdivision one of section sixty-seven-b-two of this arti- 21 cle by April first, two thousand twenty-six. A progress report with 22 respect to meeting annual target percentages in the plan shall be issued 23 annually by the executive with release of the proposed budget and, in 24 the event the actual percentages deviate from the target percentages set 25 forth in the initial plan, shall include an explanation of such devi- 26 ations and the proposed remedial actions deemed necessary to meet such 27 target percentages by April first, two thousand twenty-six. 28 § 67-b-1. Limitations on the issuance of state-supported debt. 1. (a) 29 State-supported debt may not be contracted for unless, as of October 30 thirty-first, two thousand one and as of each October thirty-first ther- 31 eafter, the total outstanding principal amount of such debt, as of the 32 last day of the immediately preceding fiscal year, is less than the 33 designated percentage of the total personal income of the state. Nothing 34 shall preclude the contracting of state-supported debt prior to October 35 thirty-first of each year if, as of the last day of the immediately 36 preceding fiscal year, the total outstanding principal amount of such 37 debt was less than the designated percentage of the total personal 38 income of the state. The total outstanding principal amount of debt 39 shall include all state-supported debt issued on and after April first, 40 two thousand. Such designated percentage shall be seven and one-half- 41 tenths of one percent for fiscal year two thousand--two thousand one, 42 and shall increase by five-tenths of one percent in fiscal year two 43 thousand one--two thousand two, by an additional four-tenths of one 44 percent in fiscal year two thousand two--two thousand three, and by an 45 additional one-third of one percent in each of the seven subsequent 46 fiscal years. The designated percentage for fiscal year two thousand 47 ten--two thousand eleven and for each fiscal year thereafter shall be 48 four percent. 49 (b) If state-supported debt is issued to refund or otherwise affect 50 the refunding, retirement or defeasance of state-supported debt 51 originally issued on and after April first, two thousand, provided such 52 refundings are conducted in accordance with section thirteen of article 53 seven of the constitution, the calculation of the total outstanding 54 principal amount of debt shall exclude such refunding debt, and shall 55 only include the amount of prior refunded debt, as if it were still 56 outstanding, in each year until such refunding debt is finally retired.A. 10340 16 1 Notwithstanding the foregoing, the provisions of such section thirteen 2 of article seven of the constitution relating to the maintenance or 3 management of escrow funds and sinking funds shall only be applicable to 4 state-supported debt issued by the state comptroller. If state-supported 5 debt is issued to refund or otherwise affect the refunding, retirement 6 or defeasance of state-supported debt issued prior to April first, two 7 thousand, then the amount of such refunding debt shall be excluded from 8 the calculation of the total outstanding principal amount of debt in 9 each year until such refunding debt is finally retired. In addition, if 10 state-supported debt is retired or defeased with payments in any fiscal 11 year made by the state that are not required by mandatory payments, such 12 debt shall be excluded from the calculation of the total outstanding 13 principal amount of debt, including retirements or defeasances accom- 14 plished on an economic basis. 15 2. State-supported debt may not be contracted for unless, as of Octo- 16 ber thirty-first, two thousand one and as of each October thirty-first 17 thereafter, the total amount of interest, installments of principal, 18 contributions to sinking funds, and related payments on a cash basis of 19 accounting for state-supported debt in the immediately preceding fiscal 20 year is less than the designated percentage of total governmental funds 21 receipts for such fiscal year. Nothing shall preclude the contracting of 22 state-supported debt prior to October thirty-first of each year if, in 23 the immediately preceding fiscal year, the total amount of interest, 24 installments of principal, contributions to sinking funds, and related 25 payments was less than the designated percentage of total governmental 26 funds receipts. This shall include the total amount of payments on such 27 debt issued on and after April first, two thousand, but shall not 28 include payments in any fiscal year made by the state to defease or 29 retire debt not required by mandatory payments nor payments made by the 30 state for debt issued to refund debt that was issued prior to April 31 first, two thousand. In addition, if state-supported debt is issued to 32 refund or otherwise affect the refunding, retirement or defeasance of 33 state-supported debt originally issued on and after April first, two 34 thousand, provided such refundings are conducted in accordance with 35 section thirteen of article seven of the constitution, the calculation 36 of the total amount of interest, installments of principal, contrib- 37 utions to sinking funds, and related payments shall exclude payments 38 made on such refunding debt, and shall only include the payments on the 39 prior refunded debt, as if it were still outstanding, in each year until 40 such refunding debt is finally retired. Such designated percentage shall 41 be seven and one-half-tenths of one percent for fiscal year two thou- 42 sand--two thousand one, and shall increase by five-tenths of one percent 43 in fiscal year two thousand one--two thousand two, by an additional 44 four-tenths of one percent in fiscal year two thousand two--two thousand 45 three, and by an additional one-third of one percent in each of the ten 46 subsequent fiscal years. The designated percentage for fiscal year two 47 thousand thirteen--two thousand fourteen and for each fiscal year there- 48 after shall be five percent. 49 § 67-b-2. Limitations on state-funded debt. 1. No additional state- 50 funded debt shall be incurred after April first, two thousand twenty-six 51 if the total principal amount of such additional debt projected to be 52 incurred in such year, together with the total principal amount of 53 state-funded debt already outstanding is equal to or greater than the 54 total debt limit of the state excluding short term debt incurred in 55 accordance with section nine of article seven of the constitution, debtA. 10340 17 1 incurred in accordance with section ten of article seven of the consti- 2 tution, and refunding debt. 3 2. With the exception of short term debt incurred in accordance with 4 section nine of article seven of the constitution, debt incurred in 5 accordance with section ten of article seven of the constitution, and 6 refunding debt, no state-funded debt shall be incurred except to finance 7 a capital work or purpose. No such state-funded debt shall be incurred 8 if the total principal amount of such debt together with the total prin- 9 cipal amount of such debt already outstanding is equal to or greater 10 than the total debt limit of the state. 11 3. All debt subject to the provisions of this section shall, if 12 incurred on or after the first day of the first fiscal year beginning at 13 least one year after the effective date of an amendment adding a new 14 subdivision six to section eleven of article seven of the constitution, 15 be in the form of obligations issued by the comptroller. 16 4. No state-funded debt shall be incurred in the form of an obligation 17 with a final maturity exceeding the probable life of the capital project 18 financed by such debt, as specified in section sixty-one of this chap- 19 ter. Notwithstanding any other provision of law to the contrary, no 20 state-funded debt shall be incurred in the form of an obligation with a 21 final maturity of more than thirty years. 22 5. No state-funded debt outstanding on the effective date of this 23 subdivision shall be refunded unless such refunding is conducted in all 24 respects as if subject to the provisions of section thirteen of article 25 seven of the constitution. Such outstanding debt obligations shall be 26 included in the determination of the debt limit. For the purposes of 27 this subdivision and section sixty-seven-d of this article, any refund- 28 ing debt that does not extend beyond the final maturity of the debt 29 being refunded shall be deemed to be in compliance with the provisions 30 of subdivision six of section thirteen of article seven of the constitu- 31 tion made applicable by this subdivision if there is an actual debt 32 service savings in every year to maturity as a result of the issuance of 33 the refunding debt. 34 6. Any refunding obligations issued pursuant to subdivision five of 35 this section on or after the first day of the first fiscal year begin- 36 ning at least one year after the effective date of an amendment to 37 section eleven of article seven of the constitution imposing a limit on 38 the total amount of state debt shall be issued by the comptroller. 39 § 67-d. Prohibition of contingent obligation debt. After the effective 40 date of this section, the state shall not, except as specifically 41 authorized by a provision of the constitution other than section eleven 42 of article seven, agree to make payments, directly or indirectly, wheth- 43 er or not subject to appropriation, that are to be available to pay debt 44 service on any debt incurred by a municipality, individual, public 45 authority or other public or private corporation or any other entity, 46 for any purpose, if such payments are expected to be used to pay debt 47 service only if other sources available for the payment of debt service 48 are inadequate. Any provision requiring the state to replace monies used 49 to pay debt service shall be included in the prohibition set forth in 50 this subdivision. Outstanding debt that would be prohibited by this 51 section may be refunded by the entity that incurred the outstanding 52 debt. 53 § 2. Paragraph i of subdivision 3 of section 22 of the state finance 54 law, as amended by chapter 1 of the laws of 2007, is amended to read as 55 follows:A. 10340 18 1 i. A statement setting forth state involvement in the fiscal oper- 2 ations of those public authorities and public benefit corporations which 3 may be part of the development of a comprehensive state budget system 4 and provided therefor in the state financial plan. Such statement shall 5 include those public authorities and public benefit corporations with 6 disbursements which are not currently reflected in the state central 7 accounting system from proceeds of any notes or bonds issued by any 8 public authority, and which bonds or notes would be considered as 9 [state-supported] state-funded debt as defined in section sixty-seven-a 10 of this chapter. Such statement shall set forth the amount of all of the 11 bonds, notes and other obligations of each public authority, public 12 benefit corporation and all other agencies and instrumentalities of the 13 state for which the full faith and credit of the state has been pledged 14 or on account of which the state has by law given its pledge or assur- 15 ance for the continued operation and solvency of the authority, public 16 corporation, or other agency or instrumentality of the state, as the 17 case may be. Such statement shall also set forth all proposed appropri- 18 ations to be made to any public authority, public benefit corporation, 19 and any other agency or instrumentality of the state which has been 20 created or continued by law and which is separate and distinct from the 21 state itself. 22 § 3. Paragraph b of subdivision 15 of section 22 of the state finance 23 law, as added by chapter 1 of the laws of 2007, is amended to read as 24 follows: 25 b. The capital program and financing plan submitted pursuant to 26 section twenty-two-c of this article, and the update thereto required 27 pursuant to section twenty-three of this article, shall include a report 28 on the management of [state-supported] state-funded debt. Such report 29 may include, but is not limited to: (1) an assessment of the affordabil- 30 ity of state debt, including debt as a percent of personal income, debt 31 per capita, and debt service costs as a percent of the budget; (2) a 32 summary and analysis of the interest rate exchange agreements and vari- 33 able rate exposure; and (3) an assessment of financing opportunities 34 related to the state's debt portfolio. 35 § 4. The opening paragraph and paragraph (f) of subdivision 1, and 36 subparagraphs (iv), (v), (vi), (vii) and (viii) of paragraph (c) of 37 subdivision 3 of section 22-c of the state finance law, as amended by 38 section 3 of part F of chapter 389 of the laws of 1997, are amended to 39 read as follows: 40 The governor shall annually submit to the legislature a capital 41 program and financing plan concurrent with the executive budget, in 42 addition to the information required by section twenty-two of this arti- 43 cle. The plan shall contain a comprehensive assessment of the capital 44 assets and program needs of all state agencies, a review and analysis of 45 how such requirements would be financed, an analysis of the affordabili- 46 ty of [state-supported] state-funded debt, and an analysis of all costs 47 related to the financing of such plan. 48 (f) "[State-supported] State-funded debt" shall [mean any bonds or49notes issued by the state or a state public corporation for which the50state is constitutionally obligated to pay debt service or is contractu-51ally obligated to pay debt service subject to an appropriation, except52where the state has a contingent contractual obligation] have the same 53 meaning as set forth in section sixty-seven-a of this chapter. 54 (iv) schedules of the projected annual [state-supported] state-funded 55 bond issuances, proposed for each capital program, by agency, by issuer,A. 10340 19 1 and an analysis of existing debt authorizations and the need for any 2 additional authorizations; 3 (v) schedules of projected outstanding bonds, including retirements by 4 year identified separately for [state-supported] state-funded bond issu- 5 ances by issuer, and by capital program by agency, where practicable; 6 (vi) schedules of the projected personal income of the state and the 7 projected ratio of outstanding [state-supported] state-funded bonds to 8 personal income; 9 (vii) schedules of projected [state-supported] state-funded debt 10 service costs by issuer, and by capital program by agency, where practi- 11 cable; and 12 (viii) an analysis of trends in municipal bond interest rates and an 13 explanation of the interest rate assumptions, timing of principal and 14 interest payments, and the timing and size of projected [state-support-15ed] state-funded bond sales used in the debt service projections. 16 § 5. Subdivision 4 of section 23 of the state finance law, as amended 17 by chapter 1 of the laws of 2007, is amended to read as follows: 18 4. Financial plan updates. Quarterly, throughout the fiscal year, the 19 governor shall submit to the comptroller, the chairs of the senate 20 finance and the assembly ways and means committees, within thirty days 21 of the close of the quarter to which it shall pertain, a report which 22 summarizes the actual experience to date and projections for the remain- 23 ing quarters of the current fiscal year and for each of the next two 24 fiscal years of receipts, disbursements, tax refunds, and repayments of 25 advances presented in forms suitable for comparison with the financial 26 plan submitted pursuant to subdivisions one, three, four, [and] five, 27 five-a and five-b of section twenty-two of this article and revised in 28 accordance with the provisions of subdivision three of this section. The 29 governor shall submit with the budget a similar report that summarizes 30 revenue and expenditure experience to date in a form suitable for 31 comparison with the financial plan submitted pursuant to subdivision two 32 of section twenty-two of this article and revised in accordance with the 33 provisions of subdivision three of this section. Such reports shall 34 provide an explanation of the causes of any major deviations from the 35 revised financial plans and, shall provide for the amendment of the plan 36 or plans to reflect those deviations. The governor may, if he determines 37 it advisable, provide more frequent reports to the legislature regarding 38 actual experience as compared to the financial plans. The quarterly 39 financial plan update most proximate to October thirty-first of each 40 year prior to October thirty-first, two thousand twenty-five shall 41 include the calculation of the limitations on the issuance of state-sup- 42 ported debt computed pursuant to the provisions of subdivisions one and 43 two of section [sixty-seven-b] sixty-seven-b-one of this chapter. The 44 quarterly financial plan update most proximate to October thirty-first 45 of each year on or after October thirty-first, two thousand twenty-five 46 shall include the calculation of the limitations on the issuance of 47 state-funded debt computed pursuant to the provisions of subdivision 48 three of section sixty-seven-b of this chapter. 49 § 6. Paragraph (a) of subdivision 3 of section 97-rrr of the state 50 finance law, as amended by section 45 of part H of chapter 56 of the 51 laws of 2000, is amended to read as follows: 52 (a) for the payment of principal, interest, and related expenses on 53 general obligation bonds, lease purchase payments, or special contractu- 54 al obligation payments, or for the purposes of retiring or defeasing 55 bonds previously issued, including any accrued interest thereon, for any 56 [state-supported] state-funded bonding program or programs, and;A. 10340 20 1 § 7. This act shall take effect immediately, provided, however, that 2 section 67-b-1 of the state finance law, as added by section one of this 3 act, shall expire and be deemed repealed March 31, 2026; provided, 4 further, that the provisions of section 67-b-2 of the state finance law 5 as added by section one of this act shall take effect March 31, 2026. 6 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 7 sion, section or part of this act shall be adjudged by any court of 8 competent jurisdiction to be invalid, such judgment shall not affect, 9 impair, or invalidate the remainder thereof, but shall be confined in 10 its operation to the clause, sentence, paragraph, subdivision, section 11 or part thereof directly involved in the controversy in which such judg- 12 ment shall have been rendered. It is hereby declared to be the intent of 13 the legislature that this act would have been enacted even if such 14 invalid provisions had not been included herein. 15 § 3. This act shall take effect immediately; provided, however, that 16 the applicable effective date of Parts A through C of this act shall be 17 as specifically set forth in the last section of such Parts.