Senate Bill S1617

                                 BILL NUMBER:  S1617              REVISED 03/02/09

 TITLE OF BILL :
An act to amend the executive law, in relation to requiring the state
and public entities to file a statement with the comptroller
containing information regarding the issuance of bonds


 PURPOSE :
The bill would require that any bonds that are issued by the State or
any political subdivision thereof be filed with the Office of the
State Comptroller for public disclosure.

 SUMMARY OF PROVISIONS :
This bill requires that each bond offered in the State of New York by
the state or any political subdivision be filed with the Office of the
State Comptroller (OSC). The bill requires the Comptroller to
establish procedures for the filing of information for each bond that
would be available for public view.  Such information, at a minimum,
would include the official statement, a copy of the prospectus, the
total cost of t.he bond and an estimate of the fees paid to bond
counsels, underwriters, swap providers, counsels to the underwriters,
trustees, financial advisors and any other entities determined by the
Comptroller to be relevant to the offering because the public has a
right to know.  Such public disclosure is required within 30 days of
the bond offering, and shall be made available though a special
              

section on the Comptroller's Internet website at www.osc.state.ny.us.
The OSC will assume any cost incurred by local governments through
compliance with this act.

 JUSTIFICATION :
According to a report issued in 2004 by the Office of the Comptroller,
there are more than 640 authorities in the State, including 169 major
State public authorities and affiliated subsidiary corporations, 43
authorities that are affiliated with State agencies, 425 local
authorities and 3 interstate authorities with 3 subsidiaries.
Authorities issue more than 90 percent of State debt; State general
obligated debt makes up the other 10 percent. The 17 authorities that
have issued at least $100 million in debt have a total of $105 billion
in debt outstanding, including $33.8 billion in State supported debt.
In addition to the State, the political subdivisions of the State also
offer bonds from local governments, school districts and Industrial
Development Agencies (IDAs).

Unfortunately, the specifics of these bonds are generally not
available to the public, nor are the fees paid pursuant to bond
offerings ascertainable. This bill would ensure that any bond offered
by the State, or any political subdivision thereof, be publicly
disclosed and easily accessible by requiring all relevant information,
including all fees to be paid as part of the bond offering process,
and be made public through the OSC website.

State and municipal bonding has little or no accountability in terms
of disclosure. Shedding light on the process to ensure that the public
knows how its money is being spent requires major reform. The first
step in that reform is public disclosure of the specific costs of each
bond and who is benefiting from such offerings. By providing this
information in an easily accessible form, there will be better
oversight and accountability to the people on whose behalf these bonds
are issued -- the taxpayers.

 LEGISLATIVE HISTORY :
Introduced as S.6024A in 2005
Introduced as S.1154 in 2007

 FISCAL IMPLICATIONS :
None to local government; minimal to the State.

 EFFECTIVE DATE :
Immediately.