Bill Text: NY S00043 | 2023-2024 | 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: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-01-03 - REFERRED TO ELECTIONS [S00043 Detail]

Download: New_York-2023-S00043-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           43

                               2023-2024 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Elections

        AN ACT to amend the election law and the state finance law, in  relation
          to requiring a proposition authorizing the creation of a state debt to
          contain  an estimate of the debt service payable thereon, and to amend
          the state finance law, in relation  to  requiring  publication  of  an
          explanation of the proposition authorizing the creation of state debt,
          deposits  to  the  tax  stabilization  reserve fund, and using surplus
          moneys to reduce outstanding state funded debt

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

     1    Section  1.  The election law is amended by adding a new section 7-112
     2  to read as follows:
     3    § 7-112. Ballots; form for proposition; additional requirements.  Each
     4  duly certified proposition contained on the ballot and submitted to  the
     5  voters  of  the  state  which  provides for the creation of a state debt
     6  shall contain an estimate of the anticipated number of years over  which
     7  such debt shall be amortized and the total expected debt service payable
     8  on  the  principal  amount  of  such  bonds until their retirement. Such
     9  information shall be printed in the largest type which is practicable to
    10  use in the space provided for the proposition. Such information shall be
    11  provided to the state board of elections and the secretary of  state  by
    12  the state comptroller not later than seven days after the passage of the
    13  law authorizing such proposition.
    14    § 2. Subdivision 2 of section 4-116 of the election law, as amended by
    15  chapter 60 of the laws of 1993, is amended to read as follows:
    16    2. The state board of elections shall publish once in the week preced-
    17  ing  any  election  at which proposed constitutional amendments or other
    18  propositions or questions are to be submitted to the voters of the state
    19  an abstract of such amendment or question, including the estimate of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00326-01-3
        S. 43                               2

     1  amortization period and the total anticipated debt  service  payable  on
     2  the  principal  where the proposition authorizes the creation of a state
     3  debt, a brief statement of  the  law  or  proceedings  authorizing  such
     4  submission,  a  statement that such submission will be made and the form
     5  in which it is to be submitted.
     6    § 3. The state finance law is amended by adding a  new  section  6  to
     7  read as follows:
     8    §  6.  State  publication concerning proposition. Any report, publica-
     9  tion, pamphlet or other written document prepared by a state department,
    10  agency, authority or other component or division  of  state  government,
    11  intended  for  distribution  to the public, which is intended to promote
    12  awareness of or explain the provisions contained in, or incidental to, a
    13  duly certified proposition to be contained  on  the  ballot  and  to  be
    14  submitted  to the voters of the state which proposition provides for the
    15  creation of a state debt shall contain therein an estimate of the antic-
    16  ipated number of years over which such debt shall be amortized  and  the
    17  total  expected  debt  service  payable  on the principal amount of such
    18  bonds until their retirement. Such information shall be printed  in  the
    19  largest type which is practicable to use in such document.
    20    §  4.  Subdivisions 3 and 4 of section 92 of the state finance law, as
    21  separately amended by chapters 405 and 957 of  the  laws  of  1981,  are
    22  amended to read as follows:
    23    3.  At the close of each fiscal year any cash surplus remaining in the
    24  general fund over and above the norm  for  such  fiscal  year  shall  be
    25  transferred  from or retained in such fund as hereinafter in this subdi-
    26  vision provided. There shall be transferred  to  the  tax  stabilization
    27  reserve  fund  all of such surplus moneys, up to and including an amount
    28  equivalent to [two-tenths] one-half of one  per  centum  of  such  norm,
    29  unless  such  transfer  would increase such reserve fund to an amount in
    30  excess of [two] five per centum of the  amount  of  the  norm  for  such
    31  fiscal  year,  in  which  event  such  transfer shall be limited to such
    32  amount as will increase such reserve fund to such [two] five per  centum
    33  limitation.  Any balance of such surplus moneys, thereafter remaining in
    34  the general fund, shall be retained in such fund and  be  available  for
    35  the reduction of state taxes.
    36    4.  In  the  event  that  at the close of any fiscal year the receipts
    37  derived from the taxes, fees and other  sources,  required  to  be  paid
    38  during  such  fiscal  year into the general fund of the state shall fall
    39  below the norm for such fiscal year, there shall be transferred from the
    40  tax stabilization reserve fund to the general fund to  the  extent  that
    41  there  are  sufficient  moneys in the tax stabilization reserve fund, an
    42  amount equal to the difference between the norm and the amount  of  such
    43  receipts. If such transfer reduces the tax stabilization reserve fund to
    44  an  amount  less  than [two] five per centum of the norm for such fiscal
    45  year, the amount so transferred shall be repaid in  cash  prior  to  the
    46  computation and payment of any transfer to the fund pursuant to subdivi-
    47  sion  three of this section in not less than three equal annual install-
    48  ments within the period of six years or less next succeeding the date of
    49  such transfer; provided, however, that if any  such  annual  installment
    50  shall  increase  such  reserve fund to an amount in excess of [two] five
    51  per centum of the amount of the norm for the then current  fiscal  year,
    52  such  installment  shall be limited to such amount as will increase such
    53  reserve fund to such [two] five per centum  limitation  and  no  further
    54  repayment of the whole or any part of such transfer shall be required in
    55  any subsequent fiscal year.  Repayments to the tax stabilization reserve
    56  fund shall be stipulated in annual budget bills.
        S. 43                               3

     1    §  5. The state finance law is amended by adding a new section 65-a to
     2  read as follows:
     3    § 65-a. Use of surplus moneys to reduce outstanding state funded debt.
     4  At  the  close  of  each  fiscal  year, at least ten percent of any cash
     5  surplus remaining in the general fund after  the  transfer  pursuant  to
     6  section  ninety-two  of  this  chapter  shall be transferred to the debt
     7  reduction reserve fund established by section ninety-seven-ccc  of  this
     8  chapter.
     9    § 6. Section 97-rrr of the state finance law, as amended by section 45
    10  of  part  H of chapter 56 of the laws of 2000, subdivision 4 as added by
    11  section 22-b of part XXX of chapter 59 of the laws of 2017,  is  amended
    12  to read as follows:
    13    §  [97-rrr.]  97-ccc.  Debt reduction reserve fund. 1. There is hereby
    14  established in the joint custody of the comptroller and the commissioner
    15  of taxation and finance a fund to be known as the debt reduction reserve
    16  fund. [Such fund shall be established as a capital projects fund.]
    17    2. Such fund shall consist of all monies credited or transferred ther-
    18  eto from the general fund or from any other fund or sources pursuant  to
    19  law.
    20    3. The monies in such fund, following appropriation by the legislature
    21  and  allocation  by  the director of the budget, shall be available [for
    22  the following purposes:
    23    (a) for the payment of principal, interest, and  related  expenses  on
    24  general obligation bonds, lease purchase payments, or special contractu-
    25  al  obligation payments, or] only for the [purposes] purpose of retiring
    26  or defeasing bonds or notes previously  issued,  including  any  accrued
    27  interest  thereon, for any [state-supported bonding program or programs,
    28  and;
    29    (b) for the funding of capital projects,  equipment  acquisitions,  or
    30  similar  expenses  which  have  been  authorized  by  law to be financed
    31  through the issuance of bonds, notes, or other obligations] state funded
    32  debt.
    33    4. Any amounts disbursed from such fund shall  be  excluded  from  the
    34  calculation  of  annual  spending  growth in state operating funds until
    35  June [30, 2019] thirtieth, two thousand twenty-three.
    36    § 7. This act shall take effect immediately;  provided,  however  that
    37  the provisions of section four of this act shall take effect three years
    38  after it shall have become a law.