S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2776

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

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

AN ACT to amend the state finance law and the public authorities law, in
  relation to limitations on state-funded debt; to repeal article 5-B of
  the state finance law relating to limitations on state-supported debt;
  and providing for the repeal of  certain  provisions  upon  expiration
  thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Article 5-B of the state finance law is REPEALED and a new
article 5-B is added to read as follows:
                               ARTICLE 5-B
                    LIMITATIONS ON STATE-FUNDED DEBT
SECTION 67-A. DEFINITIONS.
        67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT.
        67-C. LIMITATIONS ON THE ISSUANCE OF STATE-SUPPORTED DEBT.
        67-D. LIMITATIONS ON STATE-FUNDED DEBT.
        67-E. PROHIBITION OF CONTINGENT OBLIGATION DEBT.
        67-F. USE OF SURPLUS MONEYS.
        67-G. NEW YORK STATE DEBT PLANNING COUNCIL; CREATION; PROCEDURE.
        67-H. POWERS AND DUTIES OF THE DEBT PLANNING COUNCIL.
  S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE  AND  ARTICLE  FIVE-C  OF
THIS CHAPTER THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "STATE  DEBT"  SHALL  MEAN ALL BONDS, BOND ANTICIPATION NOTES, AND
REVENUE DEBT ISSUED BY THE COMPTROLLER PURSUANT TO ARTICLE FIVE OF  THIS
CHAPTER.
  2.  "STATE-BACKED  DEBT" SHALL MEAN ANY DEBT OR OBLIGATION, OTHER THAN
STATE DEBT, THAT IS SUPPORTED IN WHOLE  OR  IN  PART  BY  ANY  FINANCING
ARRANGEMENT  WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED, WHETHER
BY LAW, CONTRACT OR OTHERWISE, TO MAKE  PAYMENTS  WHICH  WILL  BE  USED,
DIRECTLY  OR  INDIRECTLY,  FOR  THE  PAYMENT  OF  PRINCIPAL, INTEREST OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05273-01-3
              

S. 2776                             2

RELATED PAYMENTS ON INDEBTEDNESS INCURRED OR  CONTRACTED  BY  THE  STATE
ITSELF  FOR  ANY PURPOSE, OR BY ANY STATE AGENCY, MUNICIPALITY, INDIVID-
UAL, PUBLIC AUTHORITY OR OTHER PUBLIC  OR  PRIVATE  CORPORATION  OR  ANY
OTHER  ENTITY  FOR  STATE  CAPITAL  OR  OPERATING PURPOSES OR TO FINANCE
GRANTS, LOANS OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY  OR  ON
BEHALF  OF  THE STATE FOR ANY PURPOSE. IF THE STATE AGREES OR HAS AGREED
ON OR AFTER APRIL FIRST, NINETEEN HUNDRED NINETY-EIGHT  TO  MAKE  FUTURE
REVENUES  FROM  A  SPECIFIC  STATE  SOURCE  AVAILABLE FOR THE PURPOSE OF
SUPPORTING DEBT OF ANY MUNICIPALITY,  INDIVIDUAL,  PUBLIC  AUTHORITY  OR
OTHER  PUBLIC  OR  PRIVATE CORPORATION OR ANY OTHER ENTITY, OR, IF ON OR
AFTER SUCH DATE, A PROGRAM OF DEBT IS  AUTHORIZED  TO  BE  ISSUED  WHERE
STATE  AID IS INTENDED TO BE THE SOLE SOURCE OF PAYMENT OF DEBT SERVICE,
SUCH DEBT SHALL BE CONSIDERED TO BE A DEBT FOR THE PURPOSE OF  FINANCING
A  STATE  GRANT,  LOAN  OR  OTHER  ASSISTANCE  PAYMENT  AND  SHALL  BE A
"STATE-BACKED  DEBT"  FOR  THE  PURPOSES  OF  THIS  ARTICLE.  THE   TERM
"STATE-BACKED DEBT" APPLIES TO ALL DEBT OR OBLIGATIONS DESCRIBED IN THIS
SUBDIVISION  FOR  WHICH  THE STATE AGREES, OR HAS IN THE PAST AGREED, TO
MAKE PAYMENTS (A) WHETHER OR NOT THE OBLIGATION OF  THE  STATE  TO  MAKE
PAYMENTS IS SUBJECT TO APPROPRIATION, OR (B) WHETHER OR NOT DEBT SERVICE
IS  TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY THE STATE TO ANOTHER
PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS.
  3. "STATE-FUNDED DEBT" SHALL MEAN THE  COMBINED  TOTAL  OF  ALL  STATE
DEBT,   AS   DEFINED  IN  SUBDIVISION  ONE  OF  THIS  SECTION,  AND  ALL
STATE-BACKED DEBT EXCEPT SHORT TERM DEBT  INCURRED  IN  ACCORDANCE  WITH
SECTION  NINE  OF  ARTICLE  SEVEN  OF  THE  CONSTITUTION, EMERGENCY DEBT
INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE  CONSTI-
TUTION,  AND REFUNDING DEBT INCURRED IN ACCORDANCE WITH SECTION THIRTEEN
OF ARTICLE  SEVEN  OF  THE  CONSTITUTION  AND  SHALL  INCLUDE  ALL  DEBT
OUTSTANDING ON THE EFFECTIVE DATE OF THIS SECTION.
  4.  "STATE-SUPPORTED  DEBT"  SHALL  MEAN ANY BONDS OR NOTES, INCLUDING
BONDS OR NOTES ISSUED TO FUND  RESERVE  FUNDS  AND  COSTS  OF  ISSUANCE,
ISSUED BY THE STATE OR A STATE PUBLIC CORPORATION FOR WHICH THE STATE IS
CONSTITUTIONALLY OBLIGATED TO PAY DEBT SERVICE OR IS CONTRACTUALLY OBLI-
GATED  TO PAY DEBT SERVICE SUBJECT TO AN APPROPRIATION, EXCEPT WHERE THE
STATE HAS A CONTINGENT CONTRACTUAL OBLIGATION.
  5. "REVENUE DEBT" SHALL MEAN VOTER APPROVED STATE DEBT ISSUED  BY  THE
COMPTROLLER  AND  SUPPORTED  BY  FUTURE  REVENUES  FROM A SPECIFIC STATE
SOURCE.
  6. "TOTAL PERSONAL INCOME OF THE STATE" SHALL MEAN THE  MOST  RECENTLY
PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF
THE STATE OF NEW YORK BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY
SUCCESSOR  AGENCY  FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS
FOR WHICH INFORMATION IS AVAILABLE PRIOR TO OCTOBER THIRTY-FIRST OF EACH
YEAR. SUBSEQUENT REVISIONS OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT  FOR
SUCH  CALENDAR  QUARTERS  SHALL  NOT AFFECT THE VALIDITY OF THE DETERMI-
NATION MADE FOR ANY FISCAL YEAR.
  7. "CAPITAL WORK OR PURPOSE" SHALL MEAN ANY PROJECT INVOLVING:
  (A) THE ACQUISITION, CONSTRUCTION,  DEMOLITION  OR  REPLACEMENT  OF  A
FIXED ASSET OR ASSETS;
  (B)  THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY
EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS  CAPACI-
TY; OR
  (C)  THE  PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI-
TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET,  INCLUD-
ING  THE  PREPARATION  AND  REVIEW OF PLANS AND SPECIFICATIONS INCLUDING

S. 2776                             3

ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND  SUB-SURFACE  INVESTI-
GATIONS INCIDENTAL THERETO.
  8.  "CONDUIT DEBT OBLIGATION" SHALL MEAN A DEBT OBLIGATION ISSUED BY A
PUBLIC AUTHORITY (THE "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY  (THE
"CONDUIT  BORROWER")  OTHER THAN THE STATE OR A POLITICAL SUBDIVISION OF
THE STATE, WHERE PAYMENT OF THE OBLIGATION IS TO BE MADE FROM  FUNDS  OF
THE  CONDUIT  BORROWER, THE SECURITY FOR THE OBLIGATION IS THE CREDIT OF
THE CONDUIT BORROWER AND NO FUNDS OF THE CONDUIT ISSUER, THE STATE OR  A
POLITICAL SUBDIVISION OF THE STATE ARE PLEDGED TO SECURE THE OBLIGATION,
WHETHER  OR NOT THE OBLIGATION OF THE CONDUIT ISSUER, THE STATE OR POLI-
TICAL SUBDIVISION OF THE STATE IS SUBJECT TO APPROPRIATION OR IS  OTHER-
WISE CONTINGENT.
  9.  "CASH  SURPLUS" SHALL MEAN THE AMOUNT GENERAL FUND RECEIPTS EXCEED
GENERAL FUND EXPENDITURES IN SUCH FISCAL YEAR.
  10. "STATE AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR PUBLIC  BENEFIT
CORPORATION  CREATED  BY OR EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW
OF THE STATE, WITH ONE OR MORE OF ITS MEMBERS APPOINTED BY THE  GOVERNOR
OR  WHO  SERVE  AS  MEMBERS  BY  VIRTUE OF HOLDING A CIVIL OFFICE OF THE
STATE, OTHER THAN AN INTERSTATE OR  INTERNATIONAL  AUTHORITY  OR  PUBLIC
BENEFIT  CORPORATION, INCLUDING SUBSIDIARIES OF SUCH PUBLIC AUTHORITY OR
PUBLIC BENEFIT CORPORATION.
  S 67-B. DUTIES WITH RESPECT TO STATE-FUNDED DEBT.   1.  ON  OR  BEFORE
OCTOBER  THIRTY-FIRST,  TWO  THOUSAND TWENTY-ONE, THE DIVISION OF BUDGET
SHALL HAVE THE RESPONSIBILITY TO ANNUALLY DETERMINE THE TOTAL DEBT LIMIT
OF THE STATE BY CALCULATING THE DOLLAR AMOUNT EQUIVALENT TO FIVE PERCENT
OF THE TOTAL PERSONAL INCOME OF THE STATE.
  2. ON OR BEFORE OCTOBER  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-TWO  AND
OCTOBER  THIRTY-FIRST  OF  EACH  YEAR THEREAFTER, THE DIVISION OF BUDGET
SHALL DETERMINE THE TOTAL DEBT LIMIT OF THE STATE, PURSUANT  TO  SECTION
ELEVEN  OF  ARTICLE  SEVEN OF THE CONSTITUTION FOR THE NEXT FISCAL YEAR,
AND REPORT SUCH INFORMATION BY OCTOBER THIRTY-FIRST,  TO  THE  TEMPORARY
PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON
AND RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, THE  CHAIR-
PERSON  AND  RANKING  MINORITY  MEMBER  OF  THE  ASSEMBLY WAYS AND MEANS
COMMITTEE, AND THE COMPTROLLER. ON OR BEFORE SUCH DATE, THE DIVISION  OF
BUDGET SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT.
  3.  THE EXECUTIVE'S PROPOSED BUDGET FOR STATE FISCAL YEAR TWO THOUSAND
FOURTEEN--TWO THOUSAND FIFTEEN SHALL INCLUDE A PLAN  SETTING  FORTH  THE
ANNUAL  TARGET PERCENTAGES AND METHODOLOGY FOR THE IMPLEMENTATION OF THE
PROVISIONS OF SUBDIVISION ONE OF SECTION SIXTY-SEVEN-D OF  THIS  ARTICLE
BY  APRIL  FIRST,  TWO  THOUSAND  TWENTY-THREE.  A  PROGRESS REPORT WITH
RESPECT TO MEETING ANNUAL TARGET PERCENTAGES IN THE PLAN SHALL BE ISSUED
ANNUALLY BY THE EXECUTIVE WITH RELEASE OF THE PROPOSED  BUDGET  AND,  IN
THE EVENT THE ACTUAL PERCENTAGES DEVIATE FROM THE TARGET PERCENTAGES SET
FORTH  IN  THE  INITIAL PLAN, SHALL INCLUDE AN EXPLANATION OF SUCH DEVI-
ATIONS AND THE PROPOSED REMEDIAL ACTIONS DEEMED NECESSARY TO  MEET  SUCH
TARGET PERCENTAGES BY APRIL FIRST, TWO THOUSAND TWENTY-THREE.  THE PLAN,
AS  WELL AS ANNUAL PROGRESS REPORTS, SHALL BE SUBJECT TO THE ANNUAL DEBT
AFFORDABILITY LEVEL ESTABLISHED IN SECTION SIXTY-SEVEN-H OF THIS ARTICLE
AND APPROVAL OF THE DEBT PLANNING COUNCIL ESTABLISHED IN SECTION  SIXTY-
SEVEN-G OF THIS ARTICLE.
  S  67-C.  LIMITATIONS  ON THE ISSUANCE OF STATE-SUPPORTED DEBT. 1. (A)
STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR  UNLESS,  AS  OF  OCTOBER
THIRTY-FIRST, TWO THOUSAND TWO AND AS OF EACH OCTOBER THIRTY-FIRST THER-
EAFTER,  THE  TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH DEBT, AS OF THE
LAST DAY OF THE IMMEDIATELY PRECEDING FISCAL  YEAR,  IS  LESS  THAN  THE

S. 2776                             4

DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL INCOME OF THE STATE. NOTHING
SHALL  PRECLUDE THE CONTRACTING OF STATE-SUPPORTED DEBT PRIOR TO OCTOBER
THIRTY-FIRST OF EACH YEAR IF, AS OF THE  LAST  DAY  OF  THE  IMMEDIATELY
PRECEDING  FISCAL  YEAR,  THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF SUCH
DEBT WAS LESS THAN THE  DESIGNATED  PERCENTAGE  OF  THE  TOTAL  PERSONAL
INCOME  OF  THE  STATE.  THE  TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT
SHALL INCLUDE ALL STATE-SUPPORTED DEBT ISSUED ON AND AFTER APRIL  FIRST,
TWO  THOUSAND  ONE.  SUCH  DESIGNATED  PERCENTAGE  SHALL  BE  SEVEN  AND
ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL  YEAR  TWO  THOUSAND  ONE--TWO
THOUSAND TWO, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT IN FISCAL
YEAR  TWO THOUSAND TWO--TWO THOUSAND THREE, BY AN ADDITIONAL FOUR-TENTHS
OF ONE PERCENT IN FISCAL YEAR TWO THOUSAND THREE--TWO THOUSAND FOUR, AND
BY AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF  THE  SEVEN  SUBSE-
QUENT  FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR FISCAL YEAR TWO THOU-
SAND ELEVEN--TWO THOUSAND TWELVE AND FOR  EACH  FISCAL  YEAR  THEREAFTER
SHALL BE FOUR PERCENT.
  (B)  IF  STATE-SUPPORTED  DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT
THE  REFUNDING,  RETIREMENT  OR  DEFEASANCE  OF   STATE-SUPPORTED   DEBT
ORIGINALLY  ISSUED  ON AND AFTER APRIL FIRST, TWO THOUSAND ONE, PROVIDED
SUCH REFUNDINGS ARE CONDUCTED IN ACCORDANCE  WITH  SECTION  THIRTEEN  OF
ARTICLE  SEVEN  OF  THE  CONSTITUTION,  THE  CALCULATION  OF  THE  TOTAL
OUTSTANDING PRINCIPAL AMOUNT OF DEBT SHALL EXCLUDE SUCH REFUNDING  DEBT,
AND  SHALL ONLY INCLUDE THE AMOUNT OF PRIOR REFUNDED DEBT, AS IF IT WERE
STILL OUTSTANDING, IN EACH YEAR UNTIL SUCH  REFUNDING  DEBT  IS  FINALLY
RETIRED.  NOTWITHSTANDING  THE FOREGOING, THE PROVISIONS OF SUCH SECTION
THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION RELATING  TO  THE  MAINTE-
NANCE  OR  MANAGEMENT  OF  ESCROW  FUNDS AND SINKING FUNDS SHALL ONLY BE
APPLICABLE TO STATE-SUPPORTED DEBT ISSUED BY THE STATE  COMPTROLLER.  IF
STATE-SUPPORTED DEBT IS ISSUED TO REFUND OR OTHERWISE AFFECT THE REFUND-
ING,  RETIREMENT  OR  DEFEASANCE OF STATE-SUPPORTED DEBT ISSUED PRIOR TO
APRIL FIRST, TWO THOUSAND ONE, THEN THE AMOUNT OF  SUCH  REFUNDING  DEBT
SHALL  BE EXCLUDED FROM THE CALCULATION OF THE TOTAL OUTSTANDING PRINCI-
PAL AMOUNT OF DEBT IN EACH YEAR UNTIL SUCH  REFUNDING  DEBT  IS  FINALLY
RETIRED.  IN  ADDITION,  IF  STATE-SUPPORTED DEBT IS RETIRED OR DEFEASED
WITH PAYMENTS IN ANY FISCAL YEAR MADE BY THE STATE THAT ARE NOT REQUIRED
BY MANDATORY PAYMENTS, SUCH DEBT SHALL BE EXCLUDED FROM THE  CALCULATION
OF THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF DEBT, INCLUDING RETIREMENTS
OR DEFEASANCES ACCOMPLISHED ON AN ECONOMIC BASIS.
  2.  STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTO-
BER THIRTY-FIRST, TWO THOUSAND TWO AND AS OF EACH  OCTOBER  THIRTY-FIRST
THEREAFTER,  THE  TOTAL  AMOUNT  OF INTEREST, INSTALLMENTS OF PRINCIPAL,
CONTRIBUTIONS TO SINKING FUNDS, AND RELATED PAYMENTS ON A CASH BASIS  OF
ACCOUNTING  FOR STATE-SUPPORTED DEBT IN THE IMMEDIATELY PRECEDING FISCAL
YEAR IS LESS THAN THE DESIGNATED PERCENTAGE OF TOTAL GOVERNMENTAL  FUNDS
RECEIPTS FOR SUCH FISCAL YEAR. NOTHING SHALL PRECLUDE THE CONTRACTING OF
STATE-FUNDED  DEBT PRIOR TO OCTOBER THIRTY-FIRST OF EACH YEAR IF, IN THE
IMMEDIATELY  PRECEDING  FISCAL  YEAR,  THE  TOTAL  AMOUNT  OF  INTEREST,
INSTALLMENTS  OF  PRINCIPAL, CONTRIBUTIONS TO SINKING FUNDS, AND RELATED
PAYMENTS WAS LESS THAN THE DESIGNATED PERCENTAGE OF  TOTAL  GOVERNMENTAL
FUNDS  RECEIPTS. THIS SHALL INCLUDE THE TOTAL AMOUNT OF PAYMENTS ON SUCH
DEBT ISSUED ON AND AFTER APRIL FIRST, TWO THOUSAND ONE,  BUT  SHALL  NOT
INCLUDE  PAYMENTS  IN  ANY  FISCAL  YEAR MADE BY THE STATE TO DEFEASE OR
RETIRE DEBT NOT REQUIRED BY MANDATORY PAYMENTS NOR PAYMENTS MADE BY  THE
STATE  FOR  DEBT  ISSUED  TO  REFUND DEBT THAT WAS ISSUED PRIOR TO APRIL
FIRST, TWO THOUSAND ONE. IN ADDITION, IF STATE-SUPPORTED DEBT IS  ISSUED
TO REFUND OR OTHERWISE AFFECT THE REFUNDING, RETIREMENT OR DEFEASANCE OF

S. 2776                             5

STATE-FUNDED  DEBT ORIGINALLY ISSUED ON AND AFTER APRIL FIRST, TWO THOU-
SAND ONE, PROVIDED SUCH REFUNDINGS  ARE  CONDUCTED  IN  ACCORDANCE  WITH
SECTION  THIRTEEN  OF ARTICLE SEVEN OF THE CONSTITUTION, THE CALCULATION
OF  THE  TOTAL  AMOUNT  OF INTEREST, INSTALLMENTS OF PRINCIPAL, CONTRIB-
UTIONS TO SINKING FUNDS, AND RELATED  PAYMENTS  SHALL  EXCLUDE  PAYMENTS
MADE  ON SUCH REFUNDING DEBT, AND SHALL ONLY INCLUDE THE PAYMENTS ON THE
PRIOR REFUNDED DEBT, AS IF IT WERE STILL OUTSTANDING, IN EACH YEAR UNTIL
SUCH REFUNDING DEBT IS FINALLY RETIRED. SUCH DESIGNATED PERCENTAGE SHALL
BE SEVEN AND ONE-HALF-TENTHS OF ONE PERCENT FOR FISCAL  YEAR  TWO  THOU-
SAND--TWO THOUSAND TWO, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT
IN  FISCAL  YEAR  TWO THOUSAND TWO--TWO THOUSAND THREE, BY AN ADDITIONAL
FOUR-TENTHS OF ONE PERCENT IN FISCAL YEAR TWO THOUSAND THREE--TWO  THOU-
SAND  FOUR, AND BY AN ADDITIONAL ONE-THIRD OF ONE PERCENT IN EACH OF THE
TEN SUBSEQUENT FISCAL YEARS. THE DESIGNATED PERCENTAGE FOR  FISCAL  YEAR
TWO  THOUSAND  FOURTEEN--TWO  THOUSAND  FIFTEEN AND FOR EACH FISCAL YEAR
THEREAFTER SHALL BE FIVE PERCENT.
  S  67-D.  LIMITATIONS  ON  STATE-FUNDED  DEBT.     1.  NO   ADDITIONAL
STATE-FUNDED  DEBT  SHALL  BE  INCURRED  AFTER APRIL FIRST, TWO THOUSAND
TWENTY-THREE IF THE TOTAL PRINCIPAL  AMOUNT  OF  SUCH  ADDITIONAL  DEBT,
TOGETHER  WITH  THE  TOTAL PRINCIPAL AMOUNT OF STATE-FUNDED DEBT ALREADY
OUTSTANDING IS EQUAL TO OR GREATER THAN THE  TOTAL  DEBT  LIMIT  OF  THE
STATE EXCLUDING SHORT TERM DEBT INCURRED IN ACCORDANCE WITH SECTION NINE
OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT INCURRED IN ACCORD-
ANCE  WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTITUTION, AND REFUND-
ING DEBT.
  2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN  ACCORDANCE  WITH
SECTION  NINE  OF  ARTICLE  SEVEN  OF  THE  CONSTITUTION, EMERGENCY DEBT
INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE  CONSTI-
TUTION,  AND  REFUNDING  DEBT,  NO  STATE-FUNDED  DEBT SHALL BE INCURRED
EXCEPT TO FINANCE A CAPITAL WORK OR PURPOSE. NO SUCH  STATE-FUNDED  DEBT
SHALL  BE  INCURRED  IF THE TOTAL PRINCIPAL AMOUNT OF SUCH DEBT TOGETHER
WITH THE TOTAL PRINCIPAL AMOUNT OF  SUCH  DEBT  ALREADY  OUTSTANDING  IS
EQUAL TO OR GREATER THAN THE TOTAL DEBT LIMIT OF THE STATE.
  3.  ALL  DEBT  SUBJECT  TO  THE  PROVISIONS  OF THIS SECTION SHALL, IF
INCURRED ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT
LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN  AMENDMENT  ADDING  A  NEW
SUBDIVISION  SIX TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION,
BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER.
  4. NO STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION
WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT
FINANCED BY SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF  THIS  CHAP-
TER.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, NO
STATE-FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH  A
FINAL MATURITY OF MORE THAN THIRTY YEARS.
  5.  NO  STATE-FUNDED  DEBT  OUTSTANDING  ON THE EFFECTIVE DATE OF THIS
SUBDIVISION SHALL BE REFUNDED UNLESS SUCH REFUNDING IS CONDUCTED IN  ALL
RESPECTS  AS IF SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN OF ARTICLE
SEVEN OF THE CONSTITUTION. SUCH OUTSTANDING DEBT  OBLIGATIONS  SHALL  BE
INCLUDED  IN  THE  DETERMINATION  OF THE DEBT LIMIT. FOR THE PURPOSES OF
THIS SUBDIVISION AND SECTION SIXTY-SEVEN-C OF THIS ARTICLE, ANY  REFUND-
ING  DEBT  THAT  DOES  NOT  EXTEND BEYOND THE FINAL MATURITY OF THE DEBT
BEING REFUNDED SHALL BE DEEMED TO BE IN COMPLIANCE WITH  THE  PROVISIONS
OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITU-
TION  MADE  APPLICABLE  BY  THIS  SUBDIVISION IF THERE IS AN ACTUAL DEBT
SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT OF THE ISSUANCE OF
THE REFUNDING DEBT.

S. 2776                             6

  6. ANY REFUNDING OBLIGATIONS ISSUED PURSUANT TO  SUBDIVISION  FIVE  OF
THIS  SECTION  ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGIN-
NING AT LEAST ONE YEAR AFTER THE  EFFECTIVE  DATE  OF  AN  AMENDMENT  TO
SECTION  ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT ON
THE TOTAL AMOUNT OF STATE DEBT SHALL BE ISSUED BY THE COMPTROLLER.
  S  67-E.  PROHIBITION OF CONTINGENT OBLIGATION DEBT.  AFTER THE EFFEC-
TIVE DATE OF THIS SECTION, THE STATE SHALL NOT, EXCEPT  AS  SPECIFICALLY
AUTHORIZED  BY A PROVISION OF THE CONSTITUTION OTHER THAN SECTION ELEVEN
OF ARTICLE SEVEN, AGREE TO MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETH-
ER OR NOT SUBJECT TO APPROPRIATION, THAT ARE TO BE AVAILABLE TO PAY DEBT
SERVICE ON ANY DEBT  INCURRED  BY  A  MUNICIPALITY,  INDIVIDUAL,  PUBLIC
AUTHORITY  OR  OTHER  PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY,
FOR ANY PURPOSE, IF SUCH PAYMENTS ARE EXPECTED TO BE USED  TO  PAY  DEBT
SERVICE  ONLY IF OTHER SOURCES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE
ARE INADEQUATE. ANY PROVISION REQUIRING THE STATE TO REPLACE MONIES USED
TO PAY DEBT SERVICE SHALL BE INCLUDED IN THE PROHIBITION  SET  FORTH  IN
THIS  SUBDIVISION.  OUTSTANDING  DEBT  THAT  WOULD BE PROHIBITED BY THIS
SECTION IF SUCH DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF  THIS
SECTION  MAY  BE  REFUNDED  BY  THE ENTITY THAT INCURRED THE OUTSTANDING
DEBT.
  S 67-F. USE OF SURPLUS MONEYS. AT  THE  CLOSE  OF  EACH  FISCAL  YEAR,
SEVENTY-FIVE  PERCENT  OF ANY CASH SURPLUS REMAINING IN THE GENERAL FUND
AFTER THE TRANSFER PURSUANT TO SECTION NINETY-TWO OF THIS CHAPTER  SHALL
BE  DEPOSITED TO THE RAINY DAY FUND ESTABLISHED IN SECTION NINETY-TWO-CC
OF THIS CHAPTER UNTIL THE FUND REACHES THE MAXIMUM BALANCE. THE  REMAIN-
ING  TWENTY-FIVE  PERCENT  SHALL  BE  TRANSFERRED  TO THE DEBT REDUCTION
RESERVE FUND ESTABLISHED BY  SECTION  NINETY-SEVEN-RRR,  AS  AMENDED  BY
SECTION  FORTY-FIVE  OF  PART  H OF CHAPTER FIFTY-SIX OF THE LAWS OF TWO
THOUSAND, OF THIS CHAPTER.  IF THE RAINY DAY FUND HAS REACHED ITS  MAXI-
MUM  BALANCE  THEN  ALL  CASH  SURPLUS  SHALL  BE  DEPOSITED IN THE DEBT
REDUCTION RESERVE FUND.
  S 67-G. NEW YORK STATE DEBT PLANNING COUNCIL; CREATION; PROCEDURE.  1.
THE  NEW  YORK  STATE DEBT PLANNING COUNCIL IS HEREBY CREATED WITHIN THE
DEPARTMENT OF AUDIT AND CONTROL TO HAVE AND EXERCISE THE POWERS,  DUTIES
AND  PREROGATIVES  PROVIDED  BY  THE  PROVISIONS OF THIS ARTICLE AND ANY
OTHER PROVISION OF LAW. THE COUNCIL SHALL BE CREATED NO LATER THAN SIXTY
DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
  2. THE MEMBERSHIP OF THE  COUNCIL  SHALL  CONSIST  OF  SEVEN  PERSONS,
INCLUDING  ONE APPOINTED BY THE GOVERNOR, THE COMPTROLLER, THE TEMPORARY
PRESIDENT OF THE SENATE AND THE  SPEAKER  OF  THE  ASSEMBLY.  THE  COMP-
TROLLER,  TEMPORARY  PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY
SHALL EACH NOMINATE TWO NON-GOVERNMENTAL EXPERTS IN THE FIELD OF  PUBLIC
FINANCE  FROM  WHICH  THE  REMAINING  THREE MEMBERS OF THE DEBT PLANNING
COUNCIL SHALL BE APPOINTED BY THE GOVERNOR.  THE  THREE  PUBLIC  FINANCE
EXPERTS  SHALL  SERVE TERMS OF THREE YEARS; THE MEMBERS APPOINTED BY THE
GOVERNOR, COMPTROLLER, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER  OF
THE  ASSEMBLY  SHALL SERVE INITIAL TERMS OF THREE YEARS. UPON EXPIRATION
OF INITIAL TERMS FOR MEMBERS APPOINTED  BY  THE  GOVERNOR,  COMPTROLLER,
TEMPORARY  PRESIDENT  OF  THE  SENATE  AND SPEAKER OF THE ASSEMBLY, EACH
SUBSEQUENT TERM SHALL BE FOUR YEARS. REPRESENTATIVES  FROM  THE  COUNCIL
SHALL  ELECT  A CHAIRPERSON.  IN THE EVENT OF A VACANCY OCCURRING IN THE
COUNCIL OF A MEMBER APPOINTED BY  THE  COMPTROLLER,  THE  GOVERNOR,  THE
TEMPORARY  PRESIDENT  OF  THE  SENATE  OR THE SPEAKER OF THE ASSEMBLY BY
DEATH, RESIGNATION OR OTHERWISE, THE SUCCESSOR SHALL BE APPOINTED BY THE
SAME APPOINTING OFFICIAL TO SERVE FOR THE BALANCE OF THE UNEXPIRED TERM.
IN THE EVENT OF A VACANCY OCCURRING IN THE COUNCIL OF A NON-GOVERNMENTAL

S. 2776                             7

MEMBER BY DEATH, RESIGNATION OR OTHERWISE, THE COMPTROLLER,  THE  TEMPO-
RARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY SHALL EACH
NOMINATE ONE NON-GOVERNMENTAL EXPERT IN THE  FIELD  OF  PUBLIC  FINANCE,
FROM  WHICH THE GOVERNOR SHALL APPOINT ONE AS SUCCESSOR TO SERVE FOR THE
BALANCE OF THE UNEXPIRED TERM. THE COUNCIL SHALL ACT BY MAJORITY OF  ALL
OF  THE  MEMBERS  OF  THE  COUNCIL.  ANY  ACTION BY THE COUNCIL SHALL BE
EVIDENCED BY A CERTIFICATION THEREOF SIGNED BY A  MAJORITY  OF  ALL  THE
MEMBERS,  EXCEPT  THAT  ALL  MEMBERS  SHALL  SIGN A CERTIFICATION OF ANY
ACTION REQUIRING UNANIMOUS APPROVAL. EACH MEMBER OF THE COUNCIL SHALL BE
ENTITLED TO DESIGNATE A REPRESENTATIVE TO ATTEND MEETINGS OF  THE  BOARD
IN  HIS  OR HER PLACE, AND TO VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF
IN HIS OR HER ABSENCE. NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED  IN
WRITING TO THE COUNCIL BY THE DESIGNATING MEMBER. A REPRESENTATIVE SHALL
SERVE AT THE PLEASURE OF THE DESIGNATING MEMBER DURING THE MEMBER'S TERM
OF  OFFICE.  A REPRESENTATIVE SHALL NOT BE AUTHORIZED TO DELEGATE ANY OF
HIS OR HER DUTIES OR POWERS TO ANY OTHER PERSON. THE COUNCIL MAY REQUEST
AND RECEIVE FROM ANY STATE OR LOCAL  AUTHORITY,  AGENCY,  DEPARTMENT  OR
DIVISION  OF THE STATE OR POLITICAL SUBDIVISION SUCH ASSISTANCE, PERSON-
NEL, INFORMATION, BOOKS, RECORDS, OTHER DOCUMENTATION AND COOPERATION AS
MAY BE NECESSARY TO PERFORM ITS DUTIES.
  3. THE COMPTROLLER, GOVERNOR, TEMPORARY PRESIDENT OF  THE  SENATE  AND
SPEAKER  OF  THE  ASSEMBLY MAY REMOVE ANY MEMBER APPOINTED BY HIM OR HER
FOR INEFFICIENCY, NEGLECT OF DUTY OR MISCONDUCT IN OFFICE  AFTER  GIVING
HIM  OR HER A COPY OF THE CHARGES AGAINST HIM OR HER, AND AN OPPORTUNITY
TO BE HEARD, IN PERSON OR BY COUNSEL, IN HIS OR HER  DEFENSE,  UPON  NOT
LESS  THAN  TEN  DAYS  NOTICE.  IF ANY SUCH MEMBER SHALL BE REMOVED, THE
GOVERNOR SHALL FILE IN THE OFFICE OF THE DEPARTMENT OF STATE A  COMPLETE
STATEMENT  OF  CHARGES  MADE AGAINST SUCH MEMBER AND HIS OR HER FINDINGS
THEREON, TOGETHER WITH A COMPLETE RECORD OF THE PROCEEDING.
  4. ALL THE MEMBERS OF THE COUNCIL SHALL BE ENTITLED  TO  REIMBURSEMENT
FOR  ACTUAL  AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF OFFI-
CIAL DUTIES PURSUANT TO THIS SECTION OR OTHER PROVISION OF LAW.
  5. THE COUNCIL SHALL MEET QUARTERLY OR MORE FREQUENTLY AT THE CALL  OF
THE  CHAIRPERSON.  MEETINGS  OF  THE  BOARD SHALL BE SUBJECT TO THE OPEN
MEETINGS LAW ESTABLISHED BY ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  6. THE PROVISIONS OF THIS SECTION  SHALL  BE  CONTROLLING,  ANY  OTHER
GENERAL,  SPECIAL  OR  LOCAL LAW INCONSISTENT THEREWITH NOTWITHSTANDING,
UNLESS THIS SECTION IS EXPRESSLY AND SPECIFICALLY REFERRED  TO  IN  SUCH
OTHER GENERAL, SPECIAL OR LOCAL LAW.
  S  67-H. POWERS AND DUTIES OF THE DEBT PLANNING COUNCIL.  1. THE COUN-
CIL SHALL HAVE THE POWER AND THE DUTY TO:
  (A) ON OR BEFORE OCTOBER THIRTY-FIRST OF  TWO  THOUSAND  FOURTEEN  AND
EACH YEAR THEREAFTER, THE COUNCIL SHALL PRESCRIBE THE DEBT AFFORDABILITY
LEVEL OF THE STATE FOR THE NEXT FISCAL YEAR, AND REPORT THE LEVEL TO THE
TEMPORARY  PRESIDENT  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, THE
CHAIRPERSON AND RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE,
AND THE CHAIRPERSON AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND
MEANS COMMITTEE. ON OR BEFORE SUCH  DATE,  THE  COUNCIL  SHALL  ISSUE  A
PUBLIC  ANNOUNCEMENT OF SUCH LEVEL. WITHIN THE LIMITATION ESTABLISHED BY
THE TOTAL DEBT LIMIT OF THE STATE, THE DEBT AFFORDABILITY LEVEL  OF  THE
STATE  SHALL  BE BASED UPON THE COUNCIL'S EVALUATION OF THE TOTAL AMOUNT
OF ADDITIONAL DEBT THAT MAY BE INCURRED AND THE TOTAL DEBT SERVICE OBLI-
GATIONS AND RELATED PAYMENTS THAT MAY BE UNDERTAKEN BY THE STATE WITHOUT
OVERBURDENING PRESENT OR FUTURE GENERATIONS,  TAKING  INTO  ACCOUNT  THE
CURRENT AND EXPECTED REVENUES AND EXPENSES OF THE STATE, THE CURRENT AND
EXPECTED  TRENDS  AFFECTING  THE  ECONOMY  OF  THE STATE, AND SUCH OTHER

S. 2776                             8

FACTORS AS THE BOARD DEEMS RELEVANT. IN ADDITION TO THE DEBT AFFORDABIL-
ITY LEVEL OF THE STATE FOR THE NEXT FISCAL YEAR, THE COUNCIL'S REPORT TO
THE LEGISLATURE AND ANNOUNCEMENT TO THE PUBLIC SHALL INCLUDE  THE  COUN-
CIL'S  FORECAST  OF  THE  DEBT AFFORDABILITY LEVELS EXPECTED FOR THE TWO
SUCCEEDING FISCAL YEARS.   FOLLOWING THE COUNCIL'S  ESTABLISHMENT  OF  A
DEBT  AFFORDABILITY LEVEL OF THE STATE FOR A FISCAL YEAR, THERE SHALL BE
NO CHANGE IN SUCH LEVEL (OTHER THAN A DEBT AFFORDABILITY LEVEL  FORECAST
FOR  A FISCAL YEAR AFTER THE NEXT FISCAL YEAR) EXCEPT WITH THE UNANIMOUS
APPROVAL OF THE MEMBERS OF THE COUNCIL; AND
  (B) PUBLICLY PROVIDE AN  ANNUAL  DETAILED  REPORTING  OF  CURRENT  AND
PROJECTED  STATE-FUNDED  DEBT  LEVELS  AND OTHER FACTORS THAT AFFECT THE
COST OF STATE-FUNDED DEBT.
  2. THE COUNCIL SHALL MAKE RECOMMENDATIONS  TO  THE  GOVERNOR  AND  THE
LEGISLATURE  OF POLICIES TO GOVERN THE ISSUANCE OF ALL STATE-FUNDED DEBT
AND OTHER CAPITAL FINANCING MATTERS.
  3. THE COUNCIL SHALL MAINTAIN AND POST ON THE  COMPTROLLER'S  PUBLICLY
AVAILABLE  INTERNET  WEBSITE  A  LISTING OF ALL BONDS ISSUED PURSUANT TO
SECTION SIXTY-SEVEN-A OF THIS  ARTICLE.  INFORMATION  ON  NEW  ISSUANCES
SHALL  BE  ADDED  TO THE LISTING ON AN ONGOING BASIS AS SOON AS POSSIBLE
AFTER THE DATE ON WHICH THE BONDS ARE SOLD, BUT  NO  LATER  THAN  THIRTY
DAYS AFTER SUCH DATE. SUCH LISTING SHALL INCLUDE, BUT NOT BE LIMITED TO,
THE FOLLOWING ITEMS:
  (A) A GENERAL DESCRIPTION OF THE BOND CONSISTING OF:
  (I) THE NAME OF THE SERIES;
  (II) SOURCES AND USES OF THE SERIES; AND
  (III) PROJECTED PAYMENTS OF PRINCIPAL AND INTEREST;
  (B) AN ELECTRONIC COPY OF THE OFFICIAL STATEMENT OF THE BOND ISSUE;
  (C)  OTHER  INFORMATION USED BY THE DEBT PLANNING COUNCIL TO ESTABLISH
ANNUAL DEBT AFFORDABILITY LEVELS INCLUDING, BUT NOT LIMITED TO  ECONOMIC
AND BUDGET FORECASTS; AND
  (D)  ANNUAL  DEBT  AFFORDABILITY  STUDIES AND REPORTING OF CURRENT AND
PROJECTED STATE-FUNDED DEBT LEVELS AND DEBT SERVICE REQUIREMENTS.
  S 2. Paragraph i of subdivision 3 of section 22 of the  state  finance
law,  as amended by chapter 1 of the laws of 2007, is amended to read as
follows:
  i. A statement setting forth state involvement  in  the  fiscal  oper-
ations of those public authorities and public benefit corporations which
may  be  part  of the development of a comprehensive state budget system
and provided therefor in the state financial plan. Such statement  shall
include  those  public  authorities and public benefit corporations with
disbursements which are not currently reflected  in  the  state  central
accounting  system  from  proceeds  of  any notes or bonds issued by any
public authority, and which  bonds  or  notes  would  be  considered  as
[state-supported]  STATE-FUNDED debt as defined in section sixty-seven-a
of this chapter. Such statement shall set forth the amount of all of the
bonds, notes and other obligations  of  each  public  authority,  public
benefit  corporation and all other agencies and instrumentalities of the
state for which the full faith and credit of the state has been  pledged
or  on  account of which the state has by law given its pledge or assur-
ance for the continued operation and solvency of the  authority,  public
corporation,  or  other  agency  or instrumentality of the state, as the
case may be. Such statement shall also set forth all proposed  appropri-
ations  to  be made to any public authority, public benefit corporation,
and any other agency or instrumentality of  the  state  which  has  been
created  or continued by law and which is separate and distinct from the
state itself.

S. 2776                             9

  S 3. Paragraph b of subdivision 15 of section 22 of the state  finance
law,  as  added  by chapter 1 of the laws of 2007, is amended to read as
follows:
  b.  The  capital  program  and  financing  plan  submitted pursuant to
section twenty-two-c of this article, and the  update  thereto  required
pursuant to section twenty-three of this article, shall include a report
on  the  management  of [state-supported] STATE-FUNDED debt. Such report
may include, but is not limited to: (1) an assessment of the affordabil-
ity of state debt, including debt as a percent of personal income,  debt
per  capita,  and  debt  service costs as a percent of the budget; (2) a
summary and analysis of the interest rate exchange agreements and  vari-
able  rate  exposure;  and  (3) an assessment of financing opportunities
related to the state's debt portfolio.
  S 4. The opening paragraph and paragraph (f)  of  subdivision  1,  and
subparagraphs  (iv),  (v),  (vi),  (vii)  and (viii) of paragraph (c) of
subdivision 3 of section 22-c of the state finance law,  as  amended  by
section  3  of part F of chapter 389 of the laws of 1997, are amended to
read as follows:
  The governor shall  annually  submit  to  the  legislature  a  capital
program  and  financing  plan  concurrent  with the executive budget, in
addition to the information required by section twenty-two of this arti-
cle. The plan shall contain a comprehensive assessment  of  the  capital
assets and program needs of all state agencies, a review and analysis of
how such requirements would be financed, an analysis of the affordabili-
ty  of [state-supported] STATE-FUNDED debt, and an analysis of all costs
related to the financing of such plan.
  (f) "[State-supported] STATE-FUNDED debt" shall  [mean  any  bonds  or
notes  issued  by  the state or a state public corporation for which the
state is constitutionally obligated to pay debt service or is contractu-
ally obligated to pay debt service subject to an  appropriation,  except
where  the  state has a contingent contractual obligation] HAVE THE SAME
MEANING AS SET FORTH IN SECTION SIXTY-SEVEN-A OF THIS CHAPTER.
  (iv) schedules of the projected annual [state-supported]  STATE-FUNDED
bond issuances, proposed for each capital program, by agency, by issuer,
and  an  analysis  of  existing debt authorizations and the need for any
additional authorizations;
  (v) schedules of projected outstanding bonds, including retirements by
year identified separately for [state-supported] STATE-FUNDED bond issu-
ances by issuer, and by capital program by agency, where practicable;
  (vi) schedules of the projected personal income of the state  and  the
projected  ratio  of outstanding [state-supported] STATE-FUNDED bonds to
personal income;
  (vii)  schedules  of  projected  [state-supported]  STATE-FUNDED  debt
service costs by issuer, and by capital program by agency, where practi-
cable; and
  (viii)  an  analysis of trends in municipal bond interest rates and an
explanation of the interest rate assumptions, timing  of  principal  and
interest  payments, and the timing and size of projected [state-support-
ed] STATE-FUNDED bond sales used in the debt service projections.
  S 5. Subdivision 4 of section 23 of the state finance law, as  amended
by chapter 1 of the laws of 2007, is amended to read as follows:
  4.  Financial plan updates. Quarterly, throughout the fiscal year, the
governor shall submit to the  comptroller,  the  chairs  of  the  senate
finance  and  the assembly ways and means committees, within thirty days
of the close of the quarter to which it shall pertain,  a  report  which
summarizes the actual experience to date and projections for the remain-

S. 2776                            10

ing  quarters  of  the  current fiscal year and for each of the next two
fiscal years of receipts, disbursements, tax refunds, and repayments  of
advances  presented  in forms suitable for comparison with the financial
plan  submitted pursuant to subdivisions one, four, and five, of section
twenty-two of this article and revised in accordance with the provisions
of subdivision three of this section. The governor shall submit with the
budget a similar report that summarizes revenue and expenditure  experi-
ence  to  date in a form suitable for comparison with the financial plan
submitted pursuant to subdivision two  of  section  twenty-two  of  this
article  and  revised  in  accordance with the provisions of subdivision
three of this section. Such reports shall provide an explanation of  the
causes  of  any  major  deviations from the revised financial plans and,
shall provide for the amendment of the plan or plans  to  reflect  those
deviations.    The  governor may, if he determines it advisable, provide
more frequent reports to the legislature regarding actual experience  as
compared  to  the  financial  plans. The quarterly financial plan update
most proximate to October thirty-first of each year  shall  include  the
calculation  of  the  limitations  on  the issuance of [state-supported]
STATE-FUNDED debt computed pursuant to the provisions  of  [subdivisions
one and two of] section sixty-seven-b of this chapter.
  S  6.  Subdivision  2  of  section  68-a  of the state finance law, as
amended by section 36 of part U of chapter 59 of the laws  of  2012,  is
amended to read as follows:
  2. "Authorized purpose" for purposes of this article and section nine-
ty-two-z  of  this  chapter  shall mean any [purposes] PURPOSE for which
[state-supported] STATE-FUNDED debt, as defined by section sixty-seven-a
of this chapter, may or has been issued except debt for which the  state
is constitutionally obligated thereunder to pay debt service and related
expenses,  and  except (a) as authorized in paragraph (b) of subdivision
one of section three hundred eighty-five of the public authorities  law,
(b)  as authorized for the department of health of the state of New York
facilities as specified in paragraph a of  subdivision  two  of  section
sixteen  hundred eighty of the public authorities law, (c) state univer-
sity of New York dormitory facilities as specified in subdivision  eight
of  section sixteen hundred seventy-eight of the public authorities law,
and (d) as authorized for mental health services facilities  by  section
nine-a of section one of chapter three hundred ninety-two of the laws of
nineteen  hundred  seventy-three constituting the New York state medical
care facilities financing act. Notwithstanding the provisions of  clause
(d)  of  this subdivision, for the period April first, two thousand nine
through  March  thirty-first,  two  thousand  thirteen,  mental   health
services  facilities,  as authorized by section nine-a of section one of
chapter three hundred ninety-two of the laws of nineteen hundred  seven-
ty-three constituting the New York state medical care facilities financ-
ing act, shall constitute an authorized purpose.
  S  7. Section 69-a of the state finance law, as added by section 38 of
part K of chapter 81 of the laws of 2002, subdivision 6  as  amended  by
section  9 of part A of chapter 63 of the laws of 2005 and subdivision 7
as amended by section 35 of part T of chapter 57 of the laws of 2007, is
amended to read as follows:
  S 69-a. Definitions. As used throughout this  article,  the  following
terms shall have the following meanings:
  1. "Variable rate bonds" shall mean any [State-supported] STATE-FUNDED
debt  which  bears interest at a rate or rates which varies from time to
time.

S. 2776                            11

  2. "Interest rate exchange or similar agreement" shall mean a  written
contract entered into in connection with the issuance of [State-support-
ed]  STATE-FUNDED  debt,  or  in  connection with such [State-supported]
STATE-FUNDED debt already outstanding, with a  counterparty  to  provide
for  an  exchange  of payments based upon fixed and/or variable interest
rates, and shall be for exchanges in currency of the  United  States  of
America only.
  3.  "[State-supported] STATE-FUNDED debt" shall mean all debt included
in subdivision [one] THREE of section sixty-seven-a of this chapter.
  4. "Authorized issuer" shall mean the state or any state public corpo-
ration which is authorized to issue [State-supported] STATE-FUNDED debt.
  5. "Governing board" shall mean, for  each  state  public  corporation
which  is  authorized  to issue [State-supported] STATE-FUNDED debt, its
board of directors or, in the absence of a board of directors, its other
appropriate supervising body and, in relation  to  state  general  obli-
gation debt, the state comptroller.
  6.  "Variable  rate  debt instruments" shall mean, for any calculation
purpose,  (i)  variable  rate  bonds  or  (ii)   any   [state-supported]
STATE-FUNDED  debt  and related interest rate exchange or similar agree-
ments which, when considered together, result in  an  authorized  issuer
effectively paying interest at a rate or rates which varies from time to
time,  but shall not include any variable rate bonds, or any [state-sup-
ported] STATE-FUNDED debt considered together with related interest rate
exchange or similar agreements issued on or before July first, two thou-
sand five, during any period that such instrument or instruments provide
for payment by the authorized issuer of a fixed rate throughout the then
current fiscal year of the state.
  7. "Excluded agreements" shall  mean  the  total  notional  amount  of
interest  rate  exchange  or  similar  agreements  entered  into for the
purpose of reducing or eliminating a situation of risk or exposure under
an existing interest rate exchange or similar agreement, including,  but
not  limited  to  a  counterparty downgrade, default, or other actual or
potential economic loss; provided, however, that for agreements  entered
into  on and after April first, two thousand seven "excluded agreements"
shall mean the total notional amount of interest rate exchange or  simi-
lar agreements entered into for the purpose of reducing or eliminating a
situation  of  imminent risk under an existing interest rate exchange or
similar agreement, including, but not limited to  a  counterparty  down-
grade, default, or other actual or imminent economic loss.
  S 8. Section 69-b of the state finance law, as amended by section 57-d
of  part  BB  of  chapter  58 of the laws of 2011, is amended to read as
follows:
  S 69-b. Limitation on amount of variable rate debt instruments. As  of
the  initial date of each issuance of variable rate bonds or the date of
entering into any other variable rate  debt  instruments,  or  for  debt
issued on or before July first, two thousand five upon conversion of any
[state-supported]  STATE-FUNDED  debt to variable rate debt instruments,
the total of the principal and notional amounts of  such  variable  rate
debt  instruments  outstanding  and in effect shall not exceed an amount
equal to fifteen percent of the total principal  amount  of  [state-sup-
ported] STATE-FUNDED debt outstanding.
  S  9.  The opening paragraph of section 69-c of the state finance law,
as amended by section 35 of part PP of chapter 56 of the laws  of  2009,
is amended to read as follows:

S. 2776                            12

  Notwithstanding  any  other  provision  of  law  to  the contrary, any
[State-supported] STATE-FUNDED debt  may  be  issued  as  variable  rate
bonds.
  S  10.  The  opening  paragraph  and paragraph (d) of subdivision 1 of
section 69-d of the state finance law, as amended by section 33 of  part
P2 of chapter 62 of the laws of 2003, are amended to read as follows:
  In  connection  with  the  issuance  of [State-supported] STATE-FUNDED
debt, or in connection with  such  [State-supported]  STATE-FUNDED  debt
already outstanding, an authorized issuer shall have the power to:
  (d)  the  state,  acting  through  the director of the budget or other
state officials who are so authorized by applicable law with respect  to
such  bonds,  notes  or  other  obligations, shall also be authorized to
enter into or amend agreements related to such [State-supported]  STATE-
FUNDED  debt  to  provide for payment, subject to appropriation, to such
authorized issuer of any amounts required to be paid by such  authorized
issuer under any such interest rate exchange or similar agreement;
  S  11.  Paragraphs (c) and (d) of subdivision 2 of section 69-d of the
state finance law, paragraph (c) as amended by section 57-e of  part  BB
of  chapter 58 of the laws of 2011 and paragraph (d) as added by section
38 of part K of chapter 81 of the laws of 2002, are amended to  read  as
follows:
  (c) the total notional amount of all interest rate exchange or similar
agreements  for  all authorized issuers to be in effect shall not exceed
an amount equal to fifteen percent of the total  amount  of  [state-sup-
ported] STATE-FUNDED debt outstanding as of the initial date of entering
into  each  new  agreement;  provided, however, that such total notional
amount shall not include any excluded agreements.
  (d) no interest rate exchange or similar agreement shall have a  matu-
rity exceeding the maturity of the related [State-supported] STATE-FUND-
ED debt;
  S 12. Section 69-e of the state finance law, as added by section 38 of
part K of chapter 81 of the laws of 2002, is amended to read as follows:
  S  69-e.  Applicability. Nothing in this article shall be construed as
to apply to or limit any debt obligation or related  instrument  of  the
state,  state  public  corporations,  or  any other issuers except those
obligations or instruments which  are  or  relate  to  [State-supported]
STATE-FUNDED debt.
  S  13.  Paragraph  (a) of subdivision 3 of section 97-rrr of the state
finance law, as amended by section 45 of part H of  chapter  56  of  the
laws of 2000, is amended to read as follows:
  (a)  for  the  payment of principal, interest, and related expenses on
general obligation bonds, lease purchase payments, or special contractu-
al obligation payments, or for the purposes  of  retiring  or  defeasing
bonds previously issued, including any accrued interest thereon, for any
[state-supported] STATE-FUNDED bonding program or programs, and;
  S  14.  Subdivision  2 of section 50 of the public authorities law, as
amended by chapter 838 of the laws  of  1983,  is  amended  to  read  as
follows:
  2.  The  membership  of  the board shall consist of [five] SIX persons
appointed by the governor AND ONE UPON THE RECOMMENDATION  OF  THE  DEBT
PLANNING  COUNCIL  ESTABLISHED  IN  SECTION  SIXTY-SEVEN-H  OF THE STATE
FINANCE LAW, of which one shall be upon the recommendation of the tempo-
rary president of the senate, one upon the recommendation of the speaker
of the assembly, one upon the recommendation of the minority  leader  of
the senate and one upon the recommendation of the minority leader of the
assembly.  The members appointed by the governor upon the recommendation

S. 2776                            13

of the minority leader of the senate and  the  minority  leader  of  the
assembly  shall  be  non-voting  members whose comments shall be entered
upon any official record of board proceedings  in  the  same  manner  as
voting  members'  comments,  unless  objection  is  raised by any of the
voting members in which case, notwithstanding any provision  of  law  to
the  contrary,  such  comments  by  non-voting  members  shall not be so
entered. The term of the members first appointed  shall  continue  until
January  thirty-first,  nineteen  hundred seventy-seven, except that the
term of the members first appointed  upon  the  recommendations  of  the
minority  leader  of  the senate and the minority leader of the assembly
shall continue until January thirty-first, nineteen hundred eighty-four,
and thereafter their successors shall serve  for  a  term  of  one  year
ending  on January thirty-first in each year. Upon recommendation of the
nominating party, the governor may replace any member in accordance with
the provision contained herein  for  the  appointment  of  members.  The
governor  shall  designate  one of the members to serve as chairman. The
board shall act by unanimous vote of the voting members  of  the  board.
Any  determination  of  the  board shall be evidenced by a certification
thereof executed by all the voting members. Each  member  of  the  board
shall  be  entitled  to designate a representative to attend meetings of
the board in his place, and to vote or otherwise act on  his  behalf  in
his absence. Notice of such designation shall be furnished in writing to
the board by the designating member. A representative shall serve at the
pleasure of the designating member during the member's term of office. A
representative  shall not be authorized to delegate any of his duties or
functions to any other person.
  S 15. Subdivision 1 of section 51 of the public  authorities  law,  as
added  by chapter 838 of the laws of 1983, paragraph k as added by chap-
ter 506 of the laws of 1995, paragraph l as added by chapter 468 of  the
laws  of  2004,  paragraph m as added by section 10 of part E of chapter
494 of the laws of 2009 and paragraph n as added by chapter 533  of  the
laws of 2010, is amended to read as follows:
  1.  [The] SUBJECT TO (A) THE COMPTROLLER'S CONSTITUTIONAL AUTHORITY TO
SUPERVISE THE ACCOUNTS OF  PUBLIC  AUTHORITIES,  (B)  THE  COMPTROLLER'S
STATUTORY  AUTHORITY  TO  APPROVE THE TERMS AND CONDITIONS OF DEBT OBLI-
GATIONS ISSUED BY PUBLIC  AUTHORITIES,  AND  (C)  THE  POLICY  STANDARDS
RECOMMENDED BY THE DEBT POLICY COUNCIL PURSUANT TO SECTION SIXTY-SEVEN-G
OF  THE  STATE FINANCE LAW IN RELATION TO PUBLIC AUTHORITY DEBT, THE New
York state public authorities control board shall have the power and  it
shall  be its duty to receive applications for approval of the financing
and construction of any project proposed by any of the  following  state
public benefit corporations:
  a. New York state environmental facilities corporation
  b. New York state housing finance agency
  c. New York state medical care facilities finance agency
  d. Dormitory authority
  e. New York state urban development corporation
  f. Job development authority
  g. Battery park city authority
  h. New York state project finance agency
  i. State of New York mortgage agency
  j. New York state energy research and development authority
  k. Long Island Power Authority
  l. Albany Convention Center Authority

S. 2776                            14

  m.  State  of  New  York  Municipal  Bond Bank Agency for bonds issued
pursuant to section two thousand four hundred thirty-six-b of this chap-
ter
  n. North Country Power Authority
  O. ANY OTHER STATE AUTHORITY
Any  application  made  concerning  a  project  shall include the terms,
conditions and dates of the repayment of state appropriations authorized
by law pursuant to a repayment agreement, AND A CURRENT LISTING  OF  ALL
OUTSTANDING  DEBT  AND  DEBT  SERVICE  OBLIGATIONS OF THE APPLICANT. Any
subsidiary of, or corporation with the same members or directors  as,  a
public  benefit  corporation  subject  to the provisions of this section
shall also be subject to the provisions of this  section.  All  applica-
tions  and  submissions to the board required to be made by a subsidiary
shall be made on behalf of such subsidiary by the public benefit  corpo-
ration  which  created  the  subsidiary.  No  public benefit corporation
subject to the provisions of this section  shall  make  any  commitment,
enter  into  any  agreement or incur any indebtedness for the purpose of
acquiring, constructing, or financing any project unless prior  approval
has  been  received from the board by such public benefit corporation as
provided herein.
  S 16. Section 51 of the public authorities law is amended by adding  a
new subdivision 6 to read as follows:
  6.  NOT  LATER THAN NINETY DAYS AFTER THE END OF EACH FISCAL YEAR, THE
BOARD SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER, THE TEMPORARY PRES-
IDENT AND THE MINORITY LEADER OF THE SENATE, AND  THE  SPEAKER  AND  THE
MINORITY LEADER OF THE ASSEMBLY, AN ANNUAL REPORT DETAILING:
  (A)  THE  AGGREGATE  AMOUNT  OF DEBT APPROVED BY THE BOARD DURING SUCH
FISCAL YEAR;
  (B) A LIST OF THE INDIVIDUAL PROJECTS APPROVED BY THE BOARD  FOR  EACH
PUBLIC AUTHORITY DURING SUCH FISCAL YEAR; AND
  (C)  THE  TOTAL  AMOUNT OF NEW DEBT OBLIGATIONS THE BOARD HAS APPROVED
DURING SUCH FISCAL YEAR FOR ISSUANCE BY EACH PUBLIC AUTHORITY. THE BOARD
SHALL PUBLISH SUCH REPORT BY POSTING SUCH REPORT ON THE BOARD'S INTERNET
WEBSITE. EACH SUCH REPORT POSTED ON THE BOARD'S INTERNET  WEBSITE  SHALL
BE  MAINTAINED  ON  SUCH WEBSITE FOR AT LEAST TWELVE MONTHS OR UNTIL THE
NEXT SUCH REPORT IS POSTED ON SUCH  WEBSITE,  WHICHEVER  IS  LATER.  THE
BOARD SHALL ISSUE A NEWS RELEASE ANNOUNCING SUCH REPORT TO NEWSPAPERS OF
GENERAL  CIRCULATION  AND  RADIO  AND TELEVISION NEWS BUREAUS WITHIN THE
STATE.
  S 17. This act shall take effect immediately, provided, however,  that
section  67-c  of the state finance law, as added by section one of this
act, shall expire and be  deemed  repealed  March  31,  2022;  provided,
further, however, that subdivisions 3 and 6 of section 67-d of the state
finance  law,  as added by section one of this act, shall take effect on
the same date as the amendments to article 7 of the  state  constitution
relating  to  the authorization of multiple general obligation issuances
and revenue backed bonds on the ballot and restricting the use  of  debt
to  capital  purposes with strict limitations on exceptions for specific
purposes, as proposed in a  concurrent  resolution  of  the  Senate  and
Assembly  entitled  "CONCURRENT  RESOLUTION  OF  THE SENATE AND ASSEMBLY
proposing amendments to article 7 of the constitution,  in  relation  to
authorization of debt in times of public emergency, a limit on the total
amount  of  state-funded  debt, and the refunding of state debts", takes
effect.