Assembly Bill A41002

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

    S. 1                                                        A. 2

                      Second Extraordinary Session

                      S E N A T E - A S S E M B L Y

                              July 30, 2010
                               ___________

IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Rules

IN  ASSEMBLY  --  Introduced by COMMITTEE ON RULES -- (at request of the
  Governor) -- read once and referred to the Committee on Ways and Means

AN ACT to amend the state finance law, in relation to  establishing  the
  FMAP contingency fund

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

  Section 1. Notwithstanding any other provision of law to the contrary,
to maintain a balanced budget in the event that the  federal  government
does  not  enact  an  extension  of enhanced Federal Medicaid Assistance
Percentages ("FMAP") for the state of New York by September 1, 2010, the
amount of all undisbursed general fund and state  special  revenue  fund
aid to localities appropriations available for expenditure and disburse-
ment  on  or  after  September 1, 2010 shall be uniformly reduced by the
amount that was undisbursed as of September 1, 2010 to a maximum  annual
reduction  of  $1,085,000,000  by  the end of the 2010-2011 state fiscal
year. The following types of appropriations shall be exempt from uniform
reduction: (a)  payments  for  emergency  assistance  for  families  and
payments  for  eligible  aged,  blind  and  disabled  persons related to
supplemental social security; (b)  any  reductions  that  would  violate
federal law; (c) payments of debt service and related expenses for which
the  state  is  constitutionally  obligated  to  pay  debt service or is
contractually obligated to pay debt service,  subject  to  an  appropri-
ation,  including  where  the  state  has a contingent contractual obli-
gation; and (d) binding, non-discretionary legal obligations, except for
obligations which are binding solely as a result  of  state  statute  or
regulation.  Such  reductions shall take effect on September 1, 2010 and
be made in accordance with a written allocation  plan  prepared  by  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12305-01-0
              

S. 1                                2                               A. 2

director of the budget, which shall be filed with the state comptroller,
the  chairman  of  the  senate finance committee and the chairman of the
assembly ways and means committee. The  director  of  the  budget  shall
prepare  appropriately  reduced  certificates, which shall be filed with
the state comptroller, the chairman of the senate finance committee  and
the  chairman  of the assembly ways and means committee. Upon request of
the director of the budget, the  comptroller  shall  transfer  the  cash
equal  to  the  uniform  appropriation  reduction  to a contingency fund
established pursuant to section 99-r of the state  finance  law  to  the
extent  such  cash is available.   Amounts on deposit in the contingency
fund may be temporarily loaned to the general fund.    If  at  any  time
after  the  effective date of this section an extension of enhanced FMAP
has been enacted by the Federal government in  an  amount  at  least  as
great  as  the  amount  assumed  in the fiscal year two thousand ten-two
thousand eleven financial plan as determined  by  the  director  of  the
budget,  no further reductions shall occur and all payment amounts with-
held pursuant to this section shall be paid to the recipients from which
they were withheld.  If an extension to enhanced FMAP is not enacted  by
November  5,  2010, the governor, temporary president of the senate, and
the speaker of the assembly shall  cause  their  respective  appropriate
personnel  to  meet  to  review the impact of the uniform reductions and
discuss potential alternative reductions.  If an extension  of  enhanced
FMAP  is  not enacted during the fiscal year, or an extension is enacted
in an amount less than the amount assumed in the fiscal year  two  thou-
sand  ten-two thousand eleven financial plan as determined by the direc-
tor of the budget, the  reductions  authorized  by  this  section  shall
continue  until  the  total  amount  of  such reductions is equal to the
amount by which the extension differs from the  amount  assumed  in  the
fiscal  year  two  thousand  ten-two  thousand  eleven financial plan as
determined by the director of the budget and, notwithstanding any  other
provision  of  law  to  the contrary, liability for amounts due under an
appropriation or other applicable provision of law shall be  reduced  in
the  amounts  of  the  payment  reduction  up to one billion eighty-five
million dollars ($1,085,000,000).
  S 2. The state finance law is amended by adding a new section 99-r  to
read as follows:
  S  99-R. FMAP CONTINGENCY FUND.  1. THERE IS HEREBY ESTABLISHED IN THE
STATE TREASURY A FUND KNOWN AS THE "FMAP CONTINGENCY FUND".
  2. THE FUND SHALL CONSIST OF ALL MONIES REQUIRED BY LAW TO  BE  TRANS-
FERRED TO THE FUND.
  3.  MONIES  IN  THE  FUND  SHALL BE DISBURSED, WHEN ALLOCATED, FOR THE
PURPOSE OF MAKING PAYMENTS THAT HAD PREVIOUSLY BEEN SUBJECT TO REDUCTION
PURSUANT TO LAW AS A RESULT OF FEDERAL GOVERNMENT FAILURE  TO  ENACT  AN
EXTENSION OF FEDERAL MEDICAID ASSISTANCE PERCENTAGES.
  4.  MONEYS  IN  THE FMAP CONTINGENCY FUND MAY BE TEMPORARILY LOANED TO
THE GENERAL FUND DURING ANY FISCAL YEAR UPON APPROVAL OF THE DIRECTOR OF
THE BUDGET.
  5. IF BY JANUARY FIRST, TWO THOUSAND ELEVEN, FEDERAL MEDICAID PERCENT-
AGES ARE NOT EXTENDED OR ARE EXTENDED IN AN AMOUNT THAT IS LESS THAN THE
AMOUNT ASSUMED IN THE FISCAL YEAR TWO THOUSAND TEN-TWO  THOUSAND  ELEVEN
FINANCIAL  PLAN  AS DETERMINED BY THE DIRECTOR OF THE BUDGET, ALL MONIES
IN THE FUND ON SUCH DATE SHALL BE TRANSFERRED TO THE  GENERAL  FUND  AND
ANY  AMOUNTS  DEPOSITED IN THE FUND AFTER SUCH DATE SHALL BE TRANSFERRED
TO THE GENERAL FUND UPON THE REQUEST OF THE DIRECTOR OF THE BUDGET.
  S 3. This act shall take effect immediately.