Assembly Bill A10408

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

                                  10408

                          I N  A S S E M B L Y

                             March 24, 2010
                               ___________

Introduced  by M. of A. SILVER, FARRELL -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the state finance law,  in  relation  to  the  financial
  recovery act of 2010

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

  Section 1. The state finance law is amended by adding  a  new  article
3-A to read as follows:
                              ARTICLE III-A
                     FINANCIAL RECOVERY ACT OF 2010
SECTION 30. FINANCIAL RECOVERY ACT OF 2010.
  S  30. FINANCIAL RECOVERY ACT OF 2010. 1. DEFINITIONS. AS USED IN THIS
ARTICLE THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING DEFINITIONS:
  (A) "FISCAL RECOVERY PERIOD" MEANS THE FIVE CONSECUTIVE  STATE  FISCAL
YEARS  WHICH  SHALL COMMENCE WITH THE YEAR IN WHICH TRANSITION BONDS ARE
FIRST ISSUED.
  (B) "BOARD" MEANS THE FINANCIAL REVIEW BOARD  CREATED  BY  SUBDIVISION
TWO OF THIS SECTION.
  (C)  "QUARTERLY  FINANCIAL  PLAN"  MEANS,  COLLECTIVELY,  THE  INITIAL
CURRENT YEAR PLAN AND FIVE YEAR PLAN SUBMITTED TO THE  FINANCIAL  REVIEW
BOARD  PURSUANT TO SUBDIVISION ONE-D OF SECTION TWENTY-TWO OF THIS CHAP-
TER AND EACH SUBSEQUENT QUARTERLY UPDATE THERETO.
  (D) "TRANSITION BONDS" MEANS THE  BONDS  ISSUED  PURSUANT  TO  SECTION
SIXTY-EIGHT-D OF THIS CHAPTER.
  (E)  "MODIFIED  GAAP-BASIS"  MEANS  AN  ACCRUAL  ACCOUNTING  SYSTEM OF
GOVERNMENT ACCOUNTING ADOPTED BY THE STATE OF  NEW  YORK  FOR  BUDGETING
UPON  ADVICE  OF THE BOARD AND THE STATE COMPTROLLER AND APPROVAL OF THE
DIRECTOR OF THE BUDGET, CHAIR OF THE SENATE FINANCE COMMITTEE AND  CHAIR
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  (F)  "BUDGET  IMBALANCE"  MEANS  EITHER  A PROJECTED ANNUAL CASH-BASIS
IMBALANCE OR A SUBSTANTIAL LIKELIHOOD THAT A MODIFIED GAAP-BASIS  IMBAL-
ANCE WILL EXIST AT THE END OF THE FISCAL RECOVERY PERIOD.
  2. FINANCIAL RECOVERY REVIEW BOARD. THERE IS HEREBY CREATED THE FINAN-
CIAL  RECOVERY  REVIEW BOARD WHICH SHALL CONSIST OF FIVE MEMBERS WHO ARE

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

                                                           LBD16621-01-0

A. 10408                            2

NOT OFFICERS OR EMPLOYEES OF THE STATE AND HAVE  NO  BUSINESS  WITH  THE
STATE.
  (A)  TWO  MEMBERS  SHALL  BE APPOINTED BY THE GOVERNOR, AND ONE MEMBER
EACH SHALL BE APPOINTED BY THE COMPTROLLER, THE TEMPORARY  PRESIDENT  OF
THE SENATE AND THE SPEAKER OF THE ASSEMBLY. EACH BOARD MEMBER SHALL BE A
PERSON  RECOGNIZED  AS  HAVING  BUSINESS  OR PROFESSIONAL EXPERIENCE AND
AUTHORITY ON THE FIELDS  OF  BUDGETING,  ACCOUNTING  AND  FINANCE.  EACH
MEMBER SHALL SERVE FOR A RENEWABLE TERM OF FIVE YEARS AND MAY BE REMOVED
ONLY  FOR  CAUSE. MEMBERS OF THE BOARD SHALL RECEIVE NO COMPENSATION BUT
WILL BE ENTITLED TO REIMBURSEMENT  FOR  ACTUAL  AND  NECESSARY  EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES UNDER THIS ARTICLE.
  (B) THE BOARD MAY ACT ONLY BY A MAJORITY VOTE OF THE ENTIRE BOARD THEN
IN OFFICE.
  (C) THE BOARD SHALL HAVE AN EXECUTIVE DIRECTOR WHO SHALL BE AUTHORIZED
TO HIRE ADDITIONAL STAFF.
  3. AUTHORITY OF THE FINANCIAL REVIEW BOARD. THE FINANCIAL REVIEW BOARD
CREATED  BY SUBDIVISION TWO OF THIS SECTION SHALL, DURING THE REFERENCED
PERIODS, HAVE THOSE POWERS AND DUTIES AS ARE  DESCRIBED  AND  DELINEATED
FOR EACH SUCH PERIOD:
  (A)  DURING THE FIRST STATE FISCAL YEAR OF THE FISCAL RECOVERY PERIOD,
UPON RECEIPT OF THE QUARTERLY FINANCIAL PLAN, THE  BOARD  SHALL,  WITHIN
SEVEN  DAYS,  PROVIDE ADVICE TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF
THE SENATE FINANCE COMMITTEE AND THE CHAIR  OF  THE  ASSEMBLY  WAYS  AND
MEANS  COMMITTEE,  OR  THEIR  DESIGNEES, CONCERNING PRESENT "CASH-BASIS"
BALANCED BUDGET ISSUES AND INCREMENTAL STEPS IN MOVEMENT TOWARD  ACHIEV-
ING  A  "GAAP-BASIS"  BALANCED  BUDGET BY THE END OF THE FISCAL RECOVERY
PERIOD.
  (B) DURING THE SECOND THROUGH FIFTH STATE FISCAL YEARS OF  THE  FISCAL
RECOVERY PERIOD, UPON RECEIPT OF THE QUARTERLY FINANCIAL PLAN, THE BOARD
SHALL, WITHIN SEVEN DAYS, DETERMINE IF THE SUBMITTED QUARTERLY FINANCIAL
PLAN  DISCLOSES  A  BUDGET  IMBALANCE.  IF THE BOARD DETERMINES THAT THE
CURRENT YEAR PORTION OF THE QUARTERLY FINANCIAL  PLAN  SUBMITTED  DURING
EITHER  THE  FIRST  OR THIRD QUARTER OF A STATE FISCAL YEAR DISCLOSES AN
IMBALANCE, IT SHALL BE EMPOWERED TO REQUIRE THAT THE  FOLLOWING  ACTIONS
BE  UNDERTAKEN TO THE EXTENT NECESSARY TO RECTIFY THE IMBALANCE: (I) THE
BOARD WILL ADVISE THE GOVERNOR, THE TEMPORARY PRESIDENT  OF  THE  SENATE
AND  THE  SPEAKER OF THE ASSEMBLY OF THEIR FINDINGS AND WILL MAKE RECOM-
MENDATIONS CONCERNING ACTIONS TO RECTIFY  SUCH  IMBALANCE;  (II)  WITHIN
THIRTY  DAYS,  THE  GOVERNOR WILL EITHER TAKE SUCH ACTIONS AS ARE WITHIN
HIS OR HER CONSTITUTIONAL POWERS  TO  RECTIFY  SUCH  IMBALANCE  OR  WILL
PROVIDE NOTIFICATION TO THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAK-
ER  OF THE ASSEMBLY THAT SUCH IMBALANCE CANNOT BE RECTIFIED BY EXECUTIVE
ACTION AND REQUIRES AMENDMENT OF EXISTING LEGISLATION INCLUDING BUT  NOT
LIMITED  TO  APPROPRIATIONS;  (III) UPON SUCH NOTIFICATION, THE GOVERNOR
AND THE LEGISLATURE SHALL ATTEMPT TO OBTAIN PASSAGE OF LEGISLATION WHICH
IS MUTUALLY AGREED UPON AS NECESSARY TO RECTIFY SUCH IMBALANCE; AND (IV)
IF PASSAGE OF SUCH LEGISLATION CANNOT BE  ACHIEVED  WITHIN  THIRTY  DAYS
FROM  THE  DATE  UPON  WHICH  THE  GOVERNOR PROVIDED NOTIFICATION TO THE
TEMPORARY PRESIDENT AND THE SPEAKER, THE DIRECTOR OF  THE  BUDGET,  UPON
CONSULTATION  WITH  THE  COMPTROLLER,  THE  CHAIR  OF THE SENATE FINANCE
COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS  COMMITTEE,  WILL
BE  EMPOWERED TO EXERCISE HIS OR HER POWERS TO SEGREGATE BUDGETED APPRO-
PRIATIONS AS IF A SUFFICIENT PRO RATA REDUCTION TO RECTIFY  SUCH  IMBAL-
ANCE HAD BEEN IMPLEMENTED VIA AMENDMENTS TO ALL STATE FISCAL YEAR APPRO-
PRIATIONS   EXCEPT  APPROPRIATIONS  REQUIRED  TO  PAY  DEBT  SERVICE  OR

A. 10408                            3

APPROPRIATIONS FOR THE OPERATION OF THE LEGISLATIVE AND JUDICIAL BRANCH-
ES OF STATE GOVERNMENT.
  (C)  AFTER THE RECOVERY PERIOD AND UNTIL THE DEFEASANCE OF ALL TRANSI-
TION BONDS, THE BOARD SHALL RECEIVE AND REVIEW QUARTERLY FINANCIAL PLANS
AND PROVIDE BUDGETING ADVICE, AS THE BOARD MAY DEEM NECESSARY OR DESIRA-
BLE ON AN ONGOING BASIS TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF  THE
SENATE  FINANCE  COMMITTEE, AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE UNLESS THREE CONSECUTIVE QUARTERLY FINANCIAL PLANS DISCLOSE  A
BUDGET  IMBALANCE.  IN THE EVENT THAT THERE ARE TWO CONSECUTIVE QUARTERS
OF BUDGET IMBALANCE, THE BOARD WILL BE EMPOWERED TO EXERCISE ALL OF  THE
POWERS DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION UNTIL SUCH TIME AS
TWO  CONSECUTIVE  QUARTERLY  FINANCIAL  PLANS  ARE  DETERMINED TO BE NOT
IMBALANCED.
  S 2. Section 24 of the state finance law is amended by  adding  a  new
subdivision 6 to read as follows:
  6.  UNLESS  DIRECTLY, EXPRESSLY AND SPECIFICALLY ADDRESSED BY PROPOSED
LEGISLATION SUBMITTED AS  PART  OF  A  SIMULTANEOUSLY-INTRODUCED  BUDGET
BILL, NO APPROPRIATION OR REAPPROPRIATION SUBMITTED BY THE GOVERNOR IN A
BUDGET  BILL  MAY:  (A) ALTER OR IMPAIR EXISTING STATUTORY OR DECISIONAL
LAW IN MORE THAN A MINOR INCIDENTAL  MANNER;  (B)  DEPART  SUBSTANTIALLY
FROM THE FORM OF APPROPRIATIONS HISTORICALLY AND CUSTOMARILY PROPOSED IN
EXECUTIVE  BUDGETS SINCE THE NINETEEN HUNDRED TWENTY-SEVEN AMENDMENTS TO
THE STATE FINANCES ARTICLE OF THE CONSTITUTION; (C) DEVIATE FROM  FAMIL-
IAR  LINE-ITEM  FORMAT; (D) AFFECT ANY CHANGE TO THE STRUCTURE OR ORGAN-
IZATION OF GOVERNMENT; OR (E) EXCEPT AS PROVIDED  IN  SECTION  FORTY  OF
THIS  CHAPTER,  AFFECT  THE  OPERATION  OF  EXISTING STATUTES BEYOND THE
FISCAL YEAR FOR WHICH SUCH APPROPRIATION OR REAPPROPRIATION IS PROPOSED.
  S 3. Subdivision 1 of section 22 of the state finance law, as  amended
by chapter 762 of the laws of 1992, is amended and a new subdivision 1-d
is added to read as follows:
  1.  include  (A)  BOTH THE CURRENT YEAR PLAN AND A FIVE YEAR FINANCIAL
PLAN THAT EMPLOYS MODIFIED  GENERALLY  ACCEPTED  ACCOUNTING  PRINCIPLES,
IDENTIFIES CURRENT AND FUTURE YEAR FISCAL IMBALANCES, AND PROPOSES MEAS-
URES  TO ADDRESS SUCH IMBALANCES; AND (B) a summary financial plan show-
ing for each of the governmental fund types: [(a)] (I) the disbursements
estimated to be made before the close of the current fiscal year and the
moneys estimated to be available from receipts and other sources  there-
for;  and  [(b)]  (II)  the disbursements proposed to be made during the
ensuing fiscal year, and the  moneys  estimated  to  be  available  from
receipts  and other sources therefor inclusive of any receipts which are
expected to result from proposed  legislation  which  he  OR  SHE  deems
necessary to provide receipts sufficient to meet such proposed disburse-
ments.  For  the  purposes of this summary financial plan, disbursements
shall be presented by the  following  purposes:  state  purposes,  local
assistance,  capital  projects, debt service, and general state charges;
receipts shall be presented for each fund type by  each  revenue  source
which  accounts  for  at  least  one per centum of all such receipts and
otherwise by categories of revenue sources; receipts  and  disbursements
for  special  revenue  funds  shall  be presented separately for federal
funds  and  all  other  special  revenue  funds.  Whenever  receipts  or
disbursements  are  proposed  to be moved to a different fund type, each
significant amount so moved shall be identified.
  1-D. PROVIDE THAT QUARTERLY UPDATES TO BOTH THE CURRENT YEAR  AND  THE
FIVE  YEAR  FINANCIAL PLANS REQUIRED BY PARAGRAPH (A) OF SUBDIVISION ONE
OF THIS SECTION SHALL BE SUBMITTED TO THE CHAIRS OF THE  SENATE  FINANCE
COMMITTEE  AND THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND TO THE MEMBERS

A. 10408                            4

OF THE FINANCIAL  RECOVERY  REVIEW  BOARD  WITHIN  TEN  DAYS  AFTER  THE
COMMENCEMENT OF EACH QUARTER OF THE STATE FISCAL YEAR.
  S  4. Subdivision 1 of section 67-a of the state finance law, as added
by chapter 59 of the laws of 2000, is amended to read as follows:
  1. "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.   NOTWITHSTANDING THE
PROVISIONS OF THIS ARTICLE, ANY BONDS AND  NOTES  CONTRACTED  UNDER  THE
FINANCIAL  RECOVERY ACT OF 2010 SHALL BE EXCLUDED FROM THE DEFINITION OF
"STATE-SUPPORTED DEBT".
  S 5. Subdivision 2 of section  68-a  of  the  state  finance  law,  as
amended by section 56-a of part PP of chapter 56 of the laws of 2009, 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 for which state-sup-
ported 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 author-
ized 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 university 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, AND (E) AS AUTHORIZED FOR THE FINANCIAL RECOV-
ERY ACT OF 2010 BY SECTION THIRTY OF THIS CHAPTER.  Notwithstanding  the
provisions  of  clause  (d)  of  this  subdivision, for the period April
first, two thousand nine through March thirty-first, two  thousand  ten,
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  seventy-three  constituting  the  New  York  state medical care
facilities financing act, shall constitute an authorized purpose.
  S 6. The state finance law is amended by adding a new section 68-d  to
read as follows:
  S  68-D.  ISSUANCE OF BONDS AND NOTES; FINANCIAL RECOVERY ACT OF 2010.
1. NOTWITHSTANDING ARTICLE FIVE-B OF THIS CHAPTER, THE  AUTHORITIES  SET
FORTH  IN SUBDIVISION ONE OF SECTION SIXTY-EIGHT-A OF THIS ARTICLE SHALL
HAVE THE POWER AND ARE HEREBY AUTHORIZED FROM  TIME  TO  TIME  TO  ISSUE
REVENUE  BONDS  IN  SUCH  PRINCIPAL  AMOUNTS SUBJECT TO THE PROVISION OF
PARAGRAPH A OF SUBDIVISION ONE OF SECTION TWENTY-TWO  OF  THIS  CHAPTER.
THE  STATE SHALL HAVE THE POWER TO ENTER INTO AGREEMENTS WITH AUTHORIZED
ISSUERS TO ISSUE BONDS AND NOTES TO ADDRESS IMBALANCES IN A FISCAL YEAR.
  2. THE AUTHORIZED ISSUER MAY ISSUE IN ANY FISCAL YEAR BONDS AND  NOTES
FOR  THE  EMERGENCY OR EXTRAORDINARY FACTORS OR FACTORS UNANTICIPATED AT
THE TIME OF ADOPTION OF THE BUDGET FOR THE FISCAL  YEAR  IN  WHICH  SUCH
BORROWING  IS  TO BE MADE THAT GAVE RISE TO THE NEED FOR THE ISSUANCE OF
BONDS AND NOTES.

A. 10408                            5

  3. THE AMOUNT OF BONDS AND NOTES ISSUED IN EACH OF  THE  THREE  FISCAL
YEARS DURING THE FIVE YEAR PLAN SHALL BE ELIMINATED AS SOON AS PRACTICA-
BLE.
  4.  THE NET PROCEEDS OF THE BONDS AND ANY EARNINGS THEREON SHALL NEVER
BE PLEDGED TO, NOR MADE AVAILABLE FOR,  PAYMENT  OF  THE  BONDS  OR  ANY
INTEREST  OR REDEMPTION PRICE THEREON OR ANY OTHER DEBT OR OBLIGATION OF
THE AUTHORIZED ISSUERS. THE NET PROCEEDS OF THE BONDS SHALL BE DEPOSITED
AS DIRECTED BY THE DIRECTOR OF THE BUDGET TO THE FINANCIAL RECOVERY  ACT
BOND  PROCEEDS FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-H OF THIS
CHAPTER AS SPECIFIED IN, OR OTHERWISE PROVIDED FOR BY, THE  SALE  AGREE-
MENT,  AND  SHALL BE USED BY THE STATE (EITHER DIRECTLY OR BY REIMBURSE-
MENT OF THE GENERAL FUND) FOR ANY OF THE FOLLOWING PURPOSES:    (I)  FOR
HEALTH CARE PURPOSES, (II) FOR ANY OF ITS CAPITAL PURPOSES OR FOR ANY OF
ITS  CAPITAL  PROGRAMS,  (III) FOR PAYMENT OF DEBT SERVICE ON ANY OF ITS
OUTSTANDING BONDS OR ON ANY STATE SUPPORTED BONDS, NOTES OR OTHER  OBLI-
GATIONS  OR  IN RESPECT OF DEBT SERVICE  ON ANY OUTSTANDING BONDS, NOTES
OR OTHER OBLIGATIONS OF LOCAL GOVERNMENTS, SCHOOL  DISTRICTS  OR  PUBLIC
BENEFIT CORPORATIONS FOR WHICH STATE AID IS APPLICABLE OR REQUIRED TO BE
PAID  OR  FOR  WHICH  THERE IF A CONTRACT SUBJECT TO STATE APPROPRIATION
PROVIDED THAT SUCH BONDS, NOTES  OR  OTHER  OBLIGATIONS  FUNDED  CAPITAL
PROJECTS OR PROGRAMS, (IV) FOR OTHER GRANTS TO LOCAL GOVERNMENTS, SCHOOL
DISTRICTS  OR  PUBLIC  BENEFIT CORPORATIONS, OR (V) TO PROVIDE A REVENUE
RESOURCE FOR PERSONAL SERVICE EXPENSES OF THE STATE  AND  GENERAL  STATE
CHARGES.
  5.  SUCH  BONDS  SHALL  NOT  BE SUBJECT TO THE REQUIREMENTS OF ARTICLE
ONE-A OF THE PUBLIC AUTHORITIES LAW.
  6. BONDS OR NOTES ISSUED PURSUANT TO THIS SECTION SHALL NOT EXCEED TEN
YEARS IN MATURITY.
  7. SUCH BONDS OR NOTES AMOUNT ISSUED SHALL NOT EXCEED  MORE  THAN  TEN
PERCENT OF THE FIVE YEAR CUMULATIVE DEFICIT PURSUANT TO PARAGRAPH (A) OF
SUBDIVISION  ONE  OF  SECTION  TWENTY-TWO  OF THIS CHAPTER AND SHALL NOT
EXCEED TWO BILLION DOLLARS IN ANY GIVEN YEAR.
  8. THE STATE SHALL NOT ENTER INTO AGREEMENTS WITH  AUTHORIZED  ISSUERS
TO  BORROW TO FINANCE STATE OPERATING DEFICITS DURING THE FIVE YEAR PLAN
EXCEPT PURSUANT TO THIS SECTION.
  9. NO ADDITIONAL BORROWING TO FINANCE STATE OPERATING  DEFICITS  SHALL
BE  INCURRED  AFTER  THE  FIRST THREE YEARS OF THE FIVE YEAR FISCAL PLAN
PURSUANT TO PARAGRAPH A OF SUBDIVISION ONE OF SECTION TWENTY-TWO OF THIS
CHAPTER.
  S 7.  The state finance law is amended by adding a new section 92-h to
read as follows:
  S 92-H. FINANCIAL RECOVERY ACT BOND PROCEEDS FUND. 1. THERE IS  HEREBY
ESTABLISHED  IN  THE  SOLE CUSTODY OF THE STATE COMPTROLLER A FUND TO BE
KNOWN AS THE FINANCIAL RECOVERY ACT BOND PROCEEDS FUND.
  2. SUCH FUND SHALL CONSIST OF  THE  NET  PROCEEDS,  AS  SUCH  TERM  IS
DEFINED  IN  SECTION  SIXTY-EIGHT-D  OF  THIS  CHAPTER FOR THE FINANCIAL
RECOVERY ACT, OF THE SALE OF BONDS, NOTES, CERTIFICATES OF PARTICIPATION
OR OTHER EVIDENCE OF INDEBTEDNESS ISSUED BY AUTHORIZED ISSUERS  PURSUANT
TO  SUBDIVISION ONE OF SECTION SIXTY-EIGHT-A OF THIS CHAPTER, ALL INTER-
EST EARNED BY SUCH NET PROCEEDS AND ALL OTHER MONEYS CREDITED OR  TRANS-
FERRED THERETO FROM ANY OTHER FUND PURSUANT TO LAW.
  3.  NO  MONEYS IN SUCH FUND SHALL BE EXPENDED FROM SUCH FUND UNTIL THE
STATE COMPTROLLER DETERMINES THAT LEGISLATIVE PASSAGE OF THE BUDGET  HAS
OCCURRED  FOR  THE  CURRENT  STATE  FISCAL  YEAR  IN ACCORDANCE WITH THE
PROVISIONS OF SUBDIVISION THREE OF SECTION FIVE OF THE LEGISLATIVE LAW.

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  4. ALL MONIES SHALL REMAIN IN SUCH FUND UNLESS OTHERWISE  DIRECTED  BY
STATUTE.
  S 8. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part of this title shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair, or invalidate the remainder thereof but shall be confined in its
operation  to  the  clause, sentence, paragraph, subdivision, section or
part thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of  the
legislature  that  this act would have been enacted even if such invalid
provisions had not been included herein.
  S 9. This act shall take effect immediately.