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

                                  10340

                          I N  A S S E M B L Y

                              May 23, 2016
                               ___________

Introduced  by M. of A. FARRELL -- (at request of the State Comptroller)
  -- read once and referred to the Committee on Ways and Means

AN ACT in relation to enacting the New  York  state  fiscal  reform  and
  accountability  act;  to  amend  the  state finance law and the public
  authorities law, in relation to contents of the state budget  and  the
  capital  financing and program plan; to repeal section 49 of the state
  finance law, relating to the segregation of lump  sum  appropriations;
  and  to  amend  the  state  finance  law, in relation to the rainy day
  reserve fund (Part A); to amend the state finance law, in relation  to
  establishing  the  New York state capital asset/infrastructure council
  (Part B); to amend the state finance law, in relation  to  limitations
  on  state-funded  debt;  to repeal sections 67-a and 67-b of the state
  finance law, relating to  limitations  on  state-supported  debt;  and
  providing for the repeal of certain provisions upon expiration thereof
  (Part C)

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

  Section 1. This act enacts into law major  components  of  legislation
which  are  necessary  to implement the New York state fiscal reform and
accountability act. Each component is wholly  contained  within  a  Part
identified  as Parts A through C. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.
  S  1-a.  Short title. This act shall be known and may be cited as "the
New York state fiscal reform and accountability act".

                                 PART A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15389-02-6

              

A. 10340                            2

  Section 1. Subdivision 5 of section 4 of the  state  finance  law,  as
amended  by  section 16 of part PP of chapter 56 of the laws of 2009, is
amended to read as follows:
  5.  No  money  or  other  financial  resources shall be transferred or
temporarily loaned from one fund to another OR, FROM A PUBLIC  AUTHORITY
TO THE STATE, ANOTHER PUBLIC AUTHORITY OR ANY PRIVATE CORPORATION, with-
out specific statutory authorization for such transfer or temporary loan
AND ALL SUCH TRANSFER AUTHORIZATIONS MUST INCLUDE SPECIFIC AMOUNTS TO BE
TRANSFERRED  AND IDENTIFICATION OF THE SPECIFIC FUND, ACCOUNT, OR PUBLIC
AUTHORITY FROM WHICH MONEY OR OTHER FINANCIAL RESOURCES ARE TO BE TRANS-
FERRED AND THE SPECIFIC FUND, ACCOUNT OR PUBLIC AUTHORITY TO WHICH MONEY
OR OTHER FINANCIAL RESOURCES ARE TO BE TRANSFERRED, except that money or
other financial resources of a fund may be  temporarily  loaned  to  the
general  fund during the state fiscal year provided that such loan shall
be repaid in full no later than (a) four months after it was made or (b)
by the end of the same fiscal year in which it was made, whichever peri-
od is shorter, so that an  accurate  accounting  and  reporting  of  the
balance of financial resources in each fund may be made. The comptroller
is  hereby authorized to temporarily loan money from the general fund or
any other fund to the fund/accounts that are  authorized  to  receive  a
loan. Such loans shall be limited to the amounts immediately required to
meet  disbursements,  made  in  pursuance of an appropriation by law and
authorized by a certificate of approval issued by the  director  of  the
budget  with  copies thereof filed with the comptroller and the chair of
the senate finance committee and the chair  of  the  assembly  ways  and
means  committee.  The  director  of  the  budget shall not issue such a
certificate unless he or she shall have determined that the  amounts  to
be  so  loaned  are  receivable on account. When making loans, the comp-
troller shall establish appropriate accounts and  if  the  loan  is  not
repaid  by  the end of the month, provide on or before the fifteenth day
of the following month to the director of the budget, the chair  of  the
senate  finance  committee  and the chair of the assembly ways and means
committee, an accurate accounting and report of the financial  resources
of  each  such  fund  at  the  end of such month. Within ten days of the
receipt of such accounting and reporting, the  director  of  the  budget
shall  provide  the  comptroller  and  the  chair  of the senate finance
committee and the chair of the assembly  ways  and  means  committee  an
expected  schedule of repayment by fund and by source for each outstand-
ing loan. Repayment shall be made by the comptroller from the first cash
receipt of this fund.
  S 2. Paragraphs a and e and  subparagraph  (v)  of  paragraph  d-2  of
subdivision  3  of  section  22 of the state finance law, paragraph a as
amended by chapter 762 of the laws of  1992,  and  subparagraph  (v)  of
paragraph  d-2  and  paragraph  e as amended by chapter 1 of the laws of
2007, are amended to read as follows:
  a.  The  appropriations,  including  reappropriations,  made  for  the
current fiscal year, the appropriations and reappropriations recommended
for  the  ensuing  fiscal  year,  the disbursements estimated to be made
before the close of the current fiscal year  and  proposed  to  be  made
during  the  ensuing  fiscal  year  based upon available and recommended
appropriations and reappropriations, AND FOR EACH ITEM OF  APPROPRIATION
WHERE THE APPROPRIATION IS SUBJECT TO ALLOCATION BY MEANS OF (I) A MEMO-
RANDUM OF UNDERSTANDING, (II) AN INTERCHANGE WITH ANOTHER ITEM OF APPRO-
PRIATION,  (III)  TRANSFER  OR SUB-ALLOCATION TO ANOTHER AGENCY, OR (IV)
ANY OTHER METHOD OF ALLOCATING  ANY  APPROPRIATION  OR  RE-APPROPRIATION
INTO  SMALLER  SUMS, SHALL STATE SEPARATELY THE APPROPRIATION AMOUNT, BY

A. 10340                            3

PROGRAM, OBJECT AND PURPOSE, AND THE PROJECTED  DISBURSEMENT  LEVEL,  BY
PROJECTED  RECIPIENT  AND AMOUNT OF EACH SMALLER SUM SUCH ITEM OF APPRO-
PRIATION IS PROJECTED TO BE ALLOCATED. Disbursements proposed to be made
shall  be  shown  in  separate  parts  as  follows:  those disbursements
proposed to be made for state purposes shall be set forth in  one  part,
those  disbursements  proposed  to be made for local assistance shall be
set forth in another separate and  distinct  part,  those  disbursements
proposed  to  be made for capital projects shall be set forth in a third
separate and distinct part and those disbursements proposed to  be  made
for  debt  service  shall be set forth in a fourth separate and distinct
part. The effect of any proposed changes in the payment dates of partic-
ular disbursements on the financial plan presented  in  accordance  with
subdivision one of this section shall be set forth separately.
  (v)  an itemized list of transfers to and from [the general fund] EACH
GOVERNMENTAL FUND AND THE EFFECT  OF  SUCH  TRANSFERS  ON  PROGRAMS  AND
ACTIVITIES ASSOCIATED WITH THE FUNDS FROM WHICH MONEY OR OTHER FINANCIAL
RESOURCES ARE TRANSFERRED.
  e.  [The] FOR EACH FUND TYPE, THE anticipated [general fund] quarterly
schedule and fiscal year total for the prior, current and  next  ensuing
THREE  fiscal years of: disbursements; receipts; repayments of advances;
total tax refunds; and refunds for the tax imposed under  article  twen-
ty-two  of  the tax law. Such information shall be presented in the same
form as the summary financial plans presented in accordance with  subdi-
visions  one  and  two  of this section. A separate, detailed, report of
such schedule shall be provided with receipts shown by each major reven-
ue category, including [detail for each major tax and  major  components
of  miscellaneous  receipts, and with disbursements shown by major func-
tion or program] EACH INDIVIDUAL TAX, EACH INDIVIDUAL COMPONENT PART  OF
MISCELLANEOUS  RECEIPTS,  AND  EACH REVENUE SOURCE WHICH ACCOUNTS FOR AT
LEAST ONE-HALF OF ONE PERCENT OF ALL RECEIPTS WITHIN EACH FUND TYPE  AND
WITH  DISBURSEMENTS  SHOWN  BY  MAJOR AGENCY OR MAJOR SPENDING ITEM. The
director of the division of the budget shall submit concurrent with  the
submission of the financial plan to the legislature pursuant to subdivi-
sion  two  of  this  section  and  with each update thereafter a revised
monthly general fund cash flow projection of receipts and  disbursements
for  the  current  fiscal  year that: (1) compares actual results to (i)
actual results through the same period for the prior year and  (ii)  the
most recent prior update to the financial plan and to the enacted budget
financial  plan;  (2)  summarizes the reasons for any variances; and (3)
describes the revisions to the cash flow projections. The monthly gener-
al fund cash flow projection shall be stated by major category of  local
assistance,  personal service, nonpersonal service, general state charg-
es, and debt service, and by major category of revenue AND SHALL INCLUDE
A SCHEDULE OF ACTUAL AND PLANNED DISBURSEMENTS BY MONTH, BY AGENCY, FUND
TYPE, AND PROGRAM, STATING SEPARATELY AND DISTINCTLY  VARIANCES  BETWEEN
ACTUAL  AND  PROJECTED  FISCAL  YEAR TO DATE DISBURSEMENTS AND PROJECTED
DISBURSEMENTS FOR THE REMAINING MONTHS OF THE FISCAL YEAR. Such  reports
shall  utilize  a  format  that shall facilitate comparison and analysis
with those reports submitted to the legislature by the office  of  audit
and  control pursuant to subdivision nine of section eight of this chap-
ter.
  S 3. 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

A. 10340                            4

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-
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 INCLUDING DETAIL  FOR  EACH  INDIVIDUAL  TAX,
EACH  INDIVIDUAL  COMPONENT  PART  OF  MISCELLANEOUS  RECEIPTS, AND EACH
REVENUE SOURCE WHICH ACCOUNTS FOR AT LEAST ONE-HALF OF  ONE  PERCENT  OF
ALL RECEIPTS WITHIN EACH FUND TYPE AND WITH DISBURSEMENTS SHOWN BY MAJOR
AGENCY  OR  MAJOR  SPENDING  ITEM  and  revised  in  accordance with the
provisions of subdivision three of this  section.    SUCH  REPORT  SHALL
INCLUDE  A  SCHEDULE  OF  ACTUAL  AND PLANNED DISBURSEMENTS BY MONTH, BY
AGENCY, FUND TYPE, AND PROGRAM, STATING SEPARATELY AND DISTINCTLY  VARI-
ANCES BETWEEN ACTUAL AND PROJECTED FISCAL YEAR TO DATE DISBURSEMENTS AND
PROJECTED DISBURSEMENTS FOR THE REMAINING MONTHS OF THE FISCAL YEAR. The
governor  shall  submit with the budget a similar report that summarizes
revenue and expenditure experience  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 debt computed pursuant to the provisions of subdivisions
one and two of section sixty-seven-b of this chapter.  ON OR AFTER JANU-
ARY  FIRST, TWO THOUSAND EIGHTEEN, THE ENACTED BUDGET FINANCIAL PLAN AND
FINANCIAL PLAN UPDATES SUBMITTED BY THE GOVERNOR PURSUANT TO THIS SUBDI-
VISION SHALL BEAR THE FINANCIAL PLAN PROGRAM REFERENCE NUMBER OR NUMBERS
TO WHICH EVERY APPROPRIATION OR REAPPROPRIATION SHALL PERTAIN, AND SHALL
BE CLASSIFIED INTO THE  SAME  CATEGORY  AS  THE  ASSOCIATED  PROGRAM  OR
PROGRAMS  HAVE BEEN CLASSIFIED IN SUCH FINANCIAL PLAN, AND FOR EACH ITEM
OF APPROPRIATION WHERE THE APPROPRIATION IS  SUBJECT  TO  ALLOCATION  BY
MEANS  OF  (I)  A  MEMORANDUM OF UNDERSTANDING, (II) AN INTERCHANGE WITH
ANOTHER ITEM OF APPROPRIATION, (III) TRANSFER OR SUBALLOCATION TO ANOTH-
ER AGENCY, OR (IV) ANY OTHER METHOD OF ALLOCATING ANY  APPROPRIATION  OR
REAPPROPRIATION  INTO SMALLER SUMS, SHALL STATE SEPARATELY THE APPROPRI-
ATION  AMOUNT,  BY  PROGRAM,  OBJECT  AND  PURPOSE,  AND  THE  PROJECTED
DISBURSEMENT  LEVEL,  BY  PROJECTED RECIPIENT AND AMOUNT OF EACH SMALLER
SUM SUCH ITEM OF APPROPRIATION IS PROJECTED TO BE ALLOCATED.
  S 4. Section 22 of the state finance law is amended by adding two  new
subdivisions 5-a and 5-b to read as follows:
  5-A. FOR EACH AGENCY OR PUBLIC AUTHORITY, BY PROGRAM AND FUND, IDENTI-
FY:
  (A) AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO MAINTAIN
CURRENT SERVICES;
  (B)  AMOUNTS, BY APPROPRIATION OR REAPPROPRIATION, PROPOSED TO SUPPORT
NEW PROGRAM INITIATIVES, OR POLICY CHANGES;
  (C) ESTIMATED DISBURSEMENTS FOR EACH APPROPRIATION OR  REAPPROPRIATION
SEPARATELY IDENTIFIED IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION; AND
  (D) ESTIMATED DISBURSEMENTS FOR CARRY-OVER SPENDING FOR EACH APPROPRI-
ATION, BY PROGRAM AND FUND.

A. 10340                            5

  5-B.  INCLUDE SUMMARIES THAT IDENTIFY DISBURSEMENTS, CARRY-OVER SPEND-
ING AND NEW SPENDING BY EACH AGENCY OR PUBLIC AUTHORITY, BY PROGRAM  AND
FUND,  SEPARATELY IDENTIFIED FOR STATE PURPOSES, LOCAL ASSISTANCE, CAPI-
TAL PROJECTS, AND GENERAL STATE CHARGES.
  S  5. Subdivision 3 of section 23 of the state finance law, as amended
by chapter 1 of the laws of 2007, is amended to read as follows:
  3. [Financial] PRELIMINARY  BUDGET  ASSESSMENT,  FINANCIAL  plans  and
capital  improvement program; revisions.  PRIOR TO THE DATE THE LEGISLA-
TURE FINALLY ACTS UPON THE APPROPRIATION BILL OR BILLS SUBMITTED BY  THE
GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE SEVEN OF THE STATE CONSTI-
TUTION,  THE GOVERNOR SHALL CAUSE TO BE SUBMITTED TO THE LEGISLATURE AND
MADE ACCESSIBLE TO THE PUBLIC, VIA AN OFFICIAL OR  SHARED  INTERNET  WEB
SITE,  A  PRELIMINARY OVERVIEW OF THE ESTIMATED FINANCIAL PLAN IMPACT OF
REVISIONS TO THE BUDGET THAT OCCURRED  BETWEEN  THE  SUBMISSION  OF  THE
BUDGET  BILLS  BY THE GOVERNOR AND THE BILLS, AS AMENDED BY THE LEGISLA-
TURE, THAT ARE ANTICIPATED TO BE PASSED BY BOTH HOUSES OF  THE  LEGISLA-
TURE AND CONSTITUTE FINAL PASSAGE OF THE BUDGET WHICH SHALL INCLUDE, BUT
NOT  BE  LIMITED  TO, A DESCRIPTION OF RECEIPTS AND DISBURSEMENTS IN THE
GENERAL  FUND  AND  ALL  GOVERNMENTAL  FUNDS  AS  WELL  AS   A   GENERAL
DESCRIPTION,  BY  AGENCY  AND  PROGRAM  WHERE  APPLICABLE, OF CHANGES IN
REVENUE AND SPENDING PROJECTIONS THAT OCCURRED  BETWEEN  THE  GOVERNOR'S
SUBMISSION  AND  ACTION  BY  THE LEGISLATURE. Not later than thirty days
after the legislature has completed action on the budget bills submitted
by the governor and the period for the governor's  review  has  elapsed,
the  governor  shall  cause  to  be  submitted  to  the  legislature the
revisions to the financial plans and the capital plan required by subdi-
visions one, two, THREE, four [and], five, FIVE-A, AND FIVE-B of section
twenty-two of this article as are necessary to account  for  all  enact-
ments  affecting the financial plans and the capital plan. The financial
plan shall also contain a cash flow analysis of projected  receipts  and
disbursements  and other financing sources or uses for each month of the
state's fiscal year. Notwithstanding any other law to the contrary, such
revised plans and accompanying cash flow analysis shall be submitted  to
the  legislature  and  the  comptroller  in  the  same form as the plans
required by such subdivisions.
  S 6. The state finance law is amended by adding a new section 40-b  to
read as follows:
  S  40-B.  APPROPRIATION  OF  STATE  FUNDS;  AGENCIES  AND AUTHORITIES.
NOTWITHSTANDING THE PROVISIONS OF  ANY  OTHER  SECTION  OF  LAW  TO  THE
CONTRARY,  NO MONEYS SHALL BE PAID FROM ANY FUND UNDER THE MANAGEMENT OF
THE STATE, OR ANY AGENCY OR OFFICER THEREOF  FOR  ANY  STATE  AGENCY  OR
PUBLIC  AUTHORITY  SPENDING  FOR A STATE PURPOSE OR PROJECT SUPPORTED IN
ANY WAY BY STATE FUNDS, INCLUDING STATE  FUNDED  PUBLIC  AUTHORITY  BOND
PROCEEDS,  EXCEPT  IN  PURSUANCE  OF AN APPROPRIATION BY LAW AND PAYABLE
ONLY UPON AUDIT AND WARRANT OF THE STATE COMPTROLLER.
  S 7. Section 24 of the state finance law, as amended by chapter 762 of
the laws of 1992,  subdivision 1 as amended and subdivisions 4 and 5  as
added  by chapter 1 of the laws of 2007, and subdivision 2 as amended by
section 2 of part O of chapter 59 of the laws of  2009,  is  amended  to
read as follows:
  S  24.  Budget bills. 1. The budget submitted annually by the governor
shall be simultaneously accompanied by a bill or bills for all  proposed
appropriations  and  reappropriations  and  for the proposed measures of
taxation or other legislation, if any, recommended therein.  Such  bills
shall  be  submitted by the governor and shall be known as budget bills;
PROVIDED,  HOWEVER,  THAT  ALL   APPROPRIATIONS   AND   REAPPROPRIATIONS

A. 10340                            6

CONTAINED  IN  SUCH  BUDGET  BILLS SHALL ONLY CONTAIN ITEMIZED APPROPRI-
ATIONS WHICH SHALL NOT BE IN THE FORM OF LUMP SUM APPROPRIATIONS.  ON OR
AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, EVERY PROPOSED APPROPRIATION
OR  REAPPROPRIATION  SUBMITTED BY THE GOVERNOR SHALL SPECIFICALLY RELATE
TO A PROGRAM WHICH IS INCLUDED IN THE FINANCIAL PLAN PRESENTED  AS  PART
OF  THE BUDGET SUBMITTED PURSUANT TO SECTION TWENTY-TWO OF THIS ARTICLE.
EACH PROPOSED APPROPRIATION OR REAPPROPRIATION FOR A PROGRAM SHALL  BEAR
THE FINANCIAL PLAN PROGRAM REFERENCE NUMBER OR NUMBERS TO WHICH IT SHALL
PERTAIN,  AND  SHALL BE CLASSIFIED INTO THE SAME CATEGORY AS THE ASSOCI-
ATED PROGRAM OR PROGRAMS HAVE BEEN CLASSIFIED IN SUCH FINANCIAL PLAN.
  (a) [For all] ALL non-federal state operations appropriations [,  such
bill or bills shall only contain itemized appropriations and] shall  NOT
BE  MADE  IN  FORM  OF LUMP SUM APPROPRIATIONS AND SHALL be [made, where
practicable,] ITEMIZED by agency and within each agency by  program  and
within  each program at the following level of detail and in the follow-
ing order:
  (i) by fund type, which at  a  minimum  shall  include  general  fund,
special  revenue-other  funds,  capital projects funds, and debt service
funds;
  (ii) for  personal  service  appropriations,  separate  appropriations
shall  be made for regular personal service, temporary personal service,
and holiday and overtime pay;
  (iii) for nonpersonal service appropriations, separate  appropriations
shall  be made for supplies and materials, travel, contractual services,
equipment, and fringe benefits, as appropriate.
  (b) Any appropriation for temporary assistance for needy families, the
environmental protection fund, and the medical assistance program, shall
only contain itemized appropriations which shall not be in the  form  of
lump  sum  appropriations,  provided,  however,  for the purposes of the
medical assistance program, itemized  appropriations  shall  consist  of
categories-of-service  with  separate  appropriations for hospital inpa-
tient, hospital outpatient and emergency  room,  clinic,  nursing  home,
other  long-term  care,  managed care, pharmacy, dental, transportation,
and other non-institutional services.
  2. (a) On or after January first,  nineteen  hundred  eighty-four,  no
budget bill submitted by the governor may include any proposed appropri-
ation  or  reappropriation for any capital project which is not included
in the capital plan presented as part of the budget  submitted  pursuant
to  section  twenty-two  of this article. Each proposed appropriation or
reappropriation for a  capital  project  shall  bear  the  capital  plan
project reference number or numbers to which it shall pertain, and shall
be  classified  into the same category as the associated capital project
or projects have been classified in such capital plan.  Reappropriations
of  appropriations  effective  for fiscal years beginning prior to April
first, nineteen hundred eighty-four may be presented by  the  categories
of  appropriation  contained in the bill originally enacting such appro-
priation.
  (b) On or after January first,  two  thousand  ten,  any  budget  bill
submitted  by  the governor containing a proposed appropriation from the
dedicated highway and bridge trust fund SHALL NOT BE  MADE  IN  FORM  OF
LUMP  SUM  APPROPRIATIONS  AND  shall  be itemized to show the following
information for each such appropriation:
  (i) each amount appropriated from the  dedicated  highway  and  bridge
trust fund for capital purposes;
  (ii)  the  amount  of  each such appropriation to be used for personal
service expenses; and

A. 10340                            7

  (iii) the amount of each such appropriation to be used for non-person-
al service expenses.
  3.  Any  appropriation for maintenance undistributed shall be shown as
apportioned among the items covered [to the extent practicable].
  4. Any appropriation added to such budget bills, pursuant  to  section
four  of  article  seven  of  the constitution OR CONCURRENT RESOLUTION,
shall only contain itemized appropriations which shall  not  be  in  the
form  of lump sum appropriations, and provided further that for all non-
federal state operations appropriations, such bill or bills [shall  only
contain  itemized  appropriations and] shall NOT BE MADE IN FORM OF LUMP
SUM APPROPRIATIONS AND SHALL be [made, where practicable,]  ITEMIZED  by
agency, and within each agency by program and within each program at the
following level of detail and in the following order:
  (a)  by  fund  type,  which  at  a minimum shall include general fund,
special revenue-other funds, capital projects  funds  and  debt  service
funds;
  (b) for personal service appropriations, separate appropriations shall
be  made  for  regular personal service, temporary personal service, and
holiday and overtime pay;
  (c) for nonpersonal service  appropriations,  separate  appropriations
shall  be made for supplies and materials, travel, contractual services,
equipment and fringe benefits, as appropriate.
  5. [Any appropriation added pursuant to section four of article  seven
of  the  constitution  without  designating a grantee shall be allocated
only pursuant to a plan setting forth an itemized list of grantees  with
the  amount  to  be  received by each, or the methodology for allocating
such appropriation. Such plan shall be subject to the  approval  of  the
chair  of  the  senate finance committee, the chair of the assembly ways
and means committee, and the director  of  the  budget,  and  thereafter
shall be included in a concurrent resolution calling for the expenditure
of  such monies, which resolution must be approved by a majority vote of
all members elected to each house upon a roll call vote]
  (A) TO THE EXTENT THAT ANY APPROPRIATION OR REAPPROPRIATION EITHER (I)
DOES NOT IDENTIFY A SPECIFIC RECIPIENT, OR (II) IS NOT SUBJECT TO  ALLO-
CATION  BY  A  STATUTORY  FORMULA, SUCH APPROPRIATION OR REAPPROPRIATION
MUST IDENTIFY AN ADMINISTERING STATE AGENCY  OR  PUBLIC  AUTHORITY  AND,
PRIOR  TO THE DISBURSEMENT OF ANY FUNDS SO APPROPRIATED, EACH SUCH STATE
AGENCY OR PUBLIC AUTHORITY SHALL:
  (I) DEVELOP AND EXECUTE A PROCESS IN ACCORDANCE WITH ALL PROVISIONS OF
LAW APPLICABLE TO A PROGRAM ADMINISTERED BY A STATE AGENCY WHEREBY  EACH
PROJECT PROPOSED TO BE FUNDED WITH SUCH APPROPRIATION OR REAPPROPRIATION
SHALL  BE  SCORED  AND  RANKED  BASED ON CLEAR, MEASURABLE AND OBJECTIVE
CRITERIA. THE RANKING OF SUCH PROJECTS  SHALL  INDICATE  THEIR  RELATIVE
IMPORTANCE IN THE BEST INTEREST OF THE STATE;
  (II)  DEVELOP  AND EXECUTE A PROCESS IN ACCORDANCE WITH ALL PROVISIONS
OF LAW APPLICABLE TO A PROGRAM ADMINISTERED BY A STATE AGENCY FOR ENTER-
ING INTO ANY CONTRACT OR COMMITMENT FOR THE DISBURSEMENT OF  SUCH  FUNDS
WHICH  SHALL  INCLUDE, WHERE APPROPRIATE, PUBLIC ADVERTISING FOR BIDS OR
PROPOSALS, AND A METHOD FOR AWARDING CONTRACTS UNDER EACH  PROJECT  THAT
SHALL  PERMIT  FULL  AND FREE COMPETITION. SUCH METHOD SHALL BE BASED ON
CLEAR, MEASURABLE AND OBJECTIVE CRITERIA; AND
  (III) IDENTIFY EACH PROJECT TO BE FUNDED WITH  SUCH  APPROPRIATION  OR
REAPPROPRIATION AND THE PORTION OF SUCH APPROPRIATION OR REAPPROPRIATION
TO BE ALLOCATED TO EACH PROJECT.
  (B)  ANY APPROPRIATION ADDED PURSUANT TO SECTION FOUR OF ARTICLE SEVEN
OF THE CONSTITUTION SHALL IDENTIFY A SPECIFIC RECIPIENT OR  GRANTEE,  OR

A. 10340                            8

SHALL  BE  SUBJECT  TO  ALLOCATION  BY  A STATUTORY FORMULA, OR SHALL BE
SUBJECT TO ALLOCATION PURSUANT TO THE PROVISIONS  OF  PARAGRAPH  (A)  OF
THIS SUBDIVISION.
  S 8. Section 49 of the state finance law is REPEALED.
  S  9. The state finance law is amended by adding a new section 24-a to
read as follows:
  S 24-A. BUDGET DIRECTOR;  SPENDING  TRANSPARENCY  REPORT.  THE  BUDGET
DIRECTOR  SHALL  REPORT  ANNUALLY  TO THE LEGISLATURE, THE OFFICE OF THE
STATE COMPTROLLER AND THE PUBLIC ON ALL SPENDING FOR WHICH AN  APPROPRI-
ATION DOES NOT PROVIDE EITHER A SPECIFIC RECIPIENT AND/OR THE ALLOCATION
OF  AN  APPROPRIATION  IS  NOT PROVIDED FOR THROUGH A STATUTORY FORMULA,
INCLUDING, BUT NOT LIMITED TO THE ALLOCATION OF LUMP SUM  APPROPRIATIONS
AND OTHER DISCRETIONARY FUNDS, IDENTIFYING, BY APPROPRIATION, THE AMOUNT
ALLOCATED  BY  PROJECT, THE SELECTION PROCESS AND CRITERIA USED, OVERALL
SCORING AND RANKING OF  PROJECTS  EVALUATED,  AND  EACH  FUNDED  PROJECT
SCORE. SUCH REPORT SHALL ALSO PROVIDE THE FINAL ALLOCATION OF ANY APPRO-
PRIATION  SUBJECT  TO  ALLOCATION BY MEANS OF (I) A MEMORANDUM OF UNDER-
STANDING, (II) AN INTERCHANGE WITH ANOTHER ITEM OF APPROPRIATION,  (III)
TRANSFER OR SUBALLOCATION TO ANOTHER AGENCY, OR (IV) ANY OTHER METHOD OF
ALLOCATING  AN APPROPRIATION INTO SMALLER SUMS, IDENTIFYING DISBURSEMENT
INFORMATION BY AGENCY, FUND AND PROGRAM WITH PROJECT-LEVEL DETAIL.  SUCH
REPORT  SHALL  ALSO  INCLUDE  THE  FISCAL AND PROGRAMMATIC IMPACT OF ANY
EXECUTED TRANSFERS BETWEEN FUNDS AND/OR PUBLIC AUTHORITIES  ON  PROGRAMS
AND ACTIVITIES ASSOCIATED WITH SUCH FUNDS AND/OR PUBLIC AUTHORITIES FROM
WHICH  MONEY  OR  OTHER FINANCIAL RESOURCES ARE TRANSFERRED AND TO WHICH
MONEY OR FINANCIAL RESOURCES ARE TRANSFERRED.
  S 10. The public authorities law is amended by adding  a  new  section
2801-a to read as follows:
  S  2801-A.  QUARTERLY  REPORTS  BY  AUTHORITIES. 1. STATE AUTHORITIES.
EVERY STATE AUTHORITY OR COMMISSION HERETOFORE OR HEREAFTER CONTINUED OR
CREATED BY THIS CHAPTER OR ANY OTHER CHAPTER OF THE LAWS OF THE STATE OF
NEW YORK SHALL SUBMIT QUARTERLY TO THE GOVERNOR, THE CHAIR  AND  RANKING
MINORITY  MEMBER  OF THE SENATE FINANCE COMMITTEE, THE CHAIR AND RANKING
MINORITY MEMBER OF THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE,  THE  STATE
COMPTROLLER  AND THE AUTHORITIES BUDGET OFFICE, FOR THEIR INFORMATION, A
REPORT ON THE EXPENDITURE OF FUNDS PURSUANT TO AN APPROPRIATION  BY  THE
STATE,  INCLUDING IDENTIFYING, BY APPROPRIATION, THE AMOUNT ALLOCATED BY
PROJECT, THE SELECTION  PROCESS  AND  CRITERIA  USED,  AND  EACH  FUNDED
PROJECT  SCORE,  AS  WELL AS THE OVERALL SCORING AND RANKING OF PROJECTS
EVALUATED.
  2. LOCAL AUTHORITIES. EVERY LOCAL AUTHORITY  HERETOFORE  OR  HEREAFTER
CONTINUED OR CREATED BY THIS CHAPTER OR ANY OTHER CHAPTER OF THE LAWS OF
THE  STATE  OF  NEW  YORK  SHALL SUBMIT QUARTERLY TO THE CHIEF EXECUTIVE
OFFICER, THE CHIEF FISCAL OFFICER, THE CHAIRPERSON  OF  THE  LEGISLATIVE
BODY  OF  THE  LOCAL  GOVERNMENT OR GOVERNMENTS, THE OFFICE OF THE STATE
COMPTROLLER AND THE AUTHORITIES BUDGET OFFICE FOR THEIR  INFORMATION,  A
REPORT  ON  THE EXPENDITURE OF FUNDS PURSUANT TO AN APPROPRIATION BY THE
STATE, INCLUDING IDENTIFYING, BY APPROPRIATION, THE AMOUNT ALLOCATED  BY
PROJECT,  THE  SELECTION  PROCESS  AND  CRITERIA  USED,  AND EACH FUNDED
PROJECT SCORE, AS WELL AS THE OVERALL SCORING AND  RANKING  OF  PROJECTS
EVALUATED.
  S  11. Section 51 of the public authorities law is amended by adding a
new subdivision 6 to read as follows:
  6. THE BOARD SHALL MAKE ACCESSIBLE TO THE PUBLIC, VIA ITS OFFICIAL  OR
SHARED  INTERNET  WEB  SITE,  BY  MEETING DATE, ALL RESOLUTIONS, PROJECT
DESCRIPTIONS, BOARD MATERIALS AND PROJECT LISTS, FOR AT LEAST TEN YEARS.

A. 10340                            9

  S 12. Subdivision 1 and 2 of section 92-cc of the state  finance  law,
subdivision  1 as added by chapter 1 of the laws of 2007 and subdivision
2 as amended by section 12-a of part I of chapter  60  of  the  laws  of
2015, are amended and new subdivision 2-a is added to read as follows:
  1.  A.  There is hereby established in the state treasury a fund to be
known as the "rainy day reserve fund". Such fund shall consist of moneys
deposited therein and monies shall be withdrawn from such fund only  for
the purposes as provided therein.
  B. FOR THE PURPOSES OF THIS SUBDIVISION, "CASH SURPLUS" SHALL MEAN THE
POSITIVE AMOUNT BY WHICH, AT OF THE CLOSE OF EACH FISCAL YEAR, THE TOTAL
GENERAL  FUND  BALANCE  EXCEEDS THE GENERAL FUND BALANCE AS PROJECTED IN
THE ENACTED BUDGET FINANCIAL PLAN.
  2. Such fund shall have a maximum balance not to exceed  [five]  EIGHT
per  centum  of  the aggregate amount projected to be disbursed from the
general fund during the fiscal year immediately following the  then-cur-
rent  fiscal  year.  [At the request of the director of the budget, the]
THE state comptroller shall transfer monies to  the  rainy  day  reserve
fund  [up  to  and  including]  IN an amount equivalent to [seventy-five
one-hundredths of one per centum of the aggregate amount projected to be
disbursed from the general fund during the then-current fiscal year] THE
CASH SURPLUS, PROVIDED,  HOWEVER,  THAT  IN  CASES  WHERE  TAX  RECEIPTS
RECEIVED  IN  ALL GOVERNMENTAL FUNDS AND MISCELLANEOUS RECEIPTS RECEIVED
IN THE GENERAL FUND FOR THE IMMEDIATELY PRECEDING FISCAL YEAR  DECREASED
OR  DID  NOT  INCREASE  OR  DECREASE FROM THE FISCAL YEAR PRECEDING SUCH
YEAR, THE STATE COMPTROLLER SHALL  TRANSFER  MONIES  TO  THE  RAINY  DAY
RESERVE  FUND  AT  THE REQUEST OF THE DIRECTOR OF THE BUDGET unless such
transfer would increase the rainy day  reserve  fund  to  an  amount  in
excess  of  [five] EIGHT per centum of the aggregate amount projected to
be disbursed from the general fund during the  fiscal  year  immediately
following  the  then-current  fiscal  year, in which event such transfer
shall be limited to such amount as will increase the rainy  day  reserve
fund to such [five] EIGHT per centum limitation.
  2-A.  AT  THE CLOSE OF EACH FISCAL YEAR, ANY CASH SURPLUS REMAINING IN
THE GENERAL FUND AFTER TRANSFERS PURSUANT TO SECTION NINETY-TWO OF  THIS
ARTICLE  AND  THIS  SECTION  SHALL  BE  DEPOSITED  IN THE DEBT REDUCTION
RESERVE FUND ESTABLISHED PURSUANT TO SECTION  NINETY-SEVEN-RRR  OF  THIS
CHAPTER.
  S 13. This act shall take effect immediately.

                                 PART B

  Section 1. The state finance law is amended by adding a new article 17
to read as follows:
                               ARTICLE 17

         NEW YORK STATE CAPITAL ASSET AND INFRASTRUCTURE COUNCIL

SECTION 250. DEFINITIONS.
        251. NEW  YORK  STATE  CAPITAL ASSET AND INFRASTRUCTURE COUNCIL;
               CREATION; PROCEDURE.
        252. POWERS AND DUTIES.
  S 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "CAPITAL ASSETS" SHALL MEAN FIXED ASSETS AND INFRASTRUCTURE ASSETS,
INCLUDING, BUT NOT LIMITED TO, LAND, BUILDINGS,  EQUIPMENT,  ROADS,  AND
BRIDGES  OF THE STATE, A STATE AGENCY OR STATE AUTHORITY, AND SHALL ALSO

A. 10340                           10

INCLUDE ANY CAPITAL ASSET OF A LOCAL AUTHORITY  OR  A  MUNICIPAL  CORPO-
RATION  THAT,  IN  THE  JUDGMENT OF THE NEW YORK STATE CAPITAL ASSET AND
INFRASTRUCTURE COUNCIL IS SIGNIFICANTLY FUNDED BY STATE MONIES.
  2.  "COUNCIL"  SHALL MEAN THE NEW YORK STATE CAPITAL ASSET AND INFRAS-
TRUCTURE COUNCIL ESTABLISHED PURSUANT TO SECTION TWO  HUNDRED  FIFTY-ONE
OF THIS ARTICLE.
  3.  "CONSTRUCTION"  SHALL  MEAN THE ERECTION, ACQUISITION, ALTERATION,
RECONSTRUCTION, REPAIR, REHABILITATION, IMPROVEMENT, EQUIPPING, ENLARGE-
MENT OR EXTENSION OF A CAPITAL ASSET, INCLUDING LAND ACQUISITION AND THE
ENGINEERING, ARCHITECTURAL, LEGAL, FISCAL AND  ECONOMIC  INVESTIGATIONS,
STUDIES,  SURVEYS,  DESIGNS, PLANS, DRAWINGS, SPECIFICATIONS, PROCEDURES
AND OTHER ACTIONS RELATING TO A CAPITAL ASSET.
  4. "LOCAL AUTHORITY" SHALL MEAN:
  (A) A PUBLIC AUTHORITY OR PUBLIC BENEFIT  CORPORATION  CREATED  BY  OR
EXISTING  UNDER THIS CHAPTER OR ANY OTHER LAW OF THE STATE WHOSE MEMBERS
DO NOT HOLD A CIVIL OFFICE OF THE STATE, ARE NOT APPOINTED BY THE GOVER-
NOR OR ARE APPOINTED BY THE GOVERNOR SPECIFICALLY UPON  THE  RECOMMENDA-
TION OF THE LOCAL GOVERNMENT OR GOVERNMENTS;
  (B)  A  NOT-FOR-PROFIT  CORPORATION  AFFILIATED WITH, SPONSORED BY, OR
CREATED BY A COUNTY, CITY, TOWN OR VILLAGE GOVERNMENT;
  (C) A LOCAL INDUSTRIAL DEVELOPMENT AGENCY OR AUTHORITY OR OTHER  LOCAL
PUBLIC BENEFIT CORPORATION; OR
  (D) AN AFFILIATE OR SUBSIDIARY OF SUCH LOCAL AUTHORITY.
  5.  "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.
  6. "MAINTENANCE" SHALL MEAN ANY REGULARLY SCHEDULED ACTIVITY INCLUDING
A  ROUTINE  REPAIR  INTENDED TO ENSURE THAT A CAPITAL ASSET CONTINUES TO
OPERATE SAFELY AND EFFICIENTLY AND AS INTENDED.
  7. "MUNICIPAL CORPORATION" SHALL MEAN A COUNTY, CITY, TOWN OR  VILLAGE
AND SHALL INCLUDE ANY SPECIAL DISTRICT THEREIN.
  8.  "REHABILITATION" SHALL MEAN AN ACTION TO EXTEND THE USEFUL LIFE OR
IMPROVE THE EFFECTIVENESS OF AN EXISTING CAPITAL ASSET.
  S 251. NEW  YORK  STATE  CAPITAL  ASSET  AND  INFRASTRUCTURE  COUNCIL;
CREATION;  PROCEDURE. 1. WITHIN THE EXECUTIVE DEPARTMENT THERE IS HEREBY
ESTABLISHED AN INDEPENDENT COUNCIL TO BE KNOWN AS  THE  NEW  YORK  STATE
CAPITAL ASSET AND INFRASTRUCTURE COUNCIL TO HAVE AND EXERCISE THE POWERS
AND DUTIES PROVIDED BY THE PROVISIONS OF THIS ARTICLE.
  2. THE PURPOSE OF THE COUNCIL IS TO DEVELOP AND IMPLEMENT A PROCESS TO
IDENTIFY,  MONITOR,  PLAN, RECOMMEND, AND PUBLICLY REPORT ON ALL CAPITAL
ASSETS OF STATE AGENCIES AND STATE AUTHORITIES AND, IN THE DISCRETION OF
THE COUNCIL, LOCAL AUTHORITIES AND  MUNICIPAL  CORPORATIONS,  TO  ENSURE
THAT  THE  CAPITAL  ASSETS  MEET CURRENT AND FUTURE NEEDS OF THE PUBLIC,
FACILITATE ECONOMIC GROWTH, ARE MAINTAINED IN A GOOD OPERATING CONDITION
THAT ENSURES PUBLIC SAFETY, AND ARE DEVELOPED OR MODIFIED IN A SUSTAINA-
BLE MANNER AS PROVIDED BY THE PROVISIONS OF THIS ARTICLE.
  3. THE COUNCIL SHALL CONSIST OF FIVE MEMBERS APPOINTED BY  THE  GOVER-
NOR,  ONE  OF  WHOM  SHALL  BE  APPOINTED UPON THE RECOMMENDATION OF THE
TEMPORARY PRESIDENT OF THE SENATE, ONE OF WHOM SHALL BE  APPOINTED  UPON
THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY, AND ONE OF WHOM SHALL
BE  APPOINTED  UPON  THE  RECOMMENDATION  OF THE COMPTROLLER. ONE OF THE
MEMBERS SHALL BE DESIGNATED AS CHAIR BY THE GOVERNOR. EACH MEMBER OF THE

A. 10340                           11

COUNCIL SHALL HAVE EXPERIENCE IN ONE OR MORE OF THE FIELDS OF ECONOMICS,
PUBLIC ADMINISTRATION, CIVIL ENGINEERING, PUBLIC WORKS, CONSTRUCTION  OR
A  RELATED  DESIGN  PROFESSION,  PLANNING,  PUBLIC INVESTMENT FINANCING,
ENVIRONMENTAL  ENGINEERING  OR  WATER  RESOURCES  ENGINEERING.  THE  TWO
MEMBERS FIRST APPOINTED BY THE GOVERNOR WITHOUT  THE  RECOMMENDATION  OF
ANY  OTHER STATE OFFICIAL SHALL SERVE AN INITIAL TERM OF FOUR YEARS; THE
MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF THE  TEMPORARY  PRESI-
DENT  OF  THE  SENATE  SHALL  SERVE  AN INITIAL TERM OF THREE YEARS; THE
MEMBER FIRST APPOINTED UPON THE RECOMMENDATION OF  THE  SPEAKER  OF  THE
ASSEMBLY  SHALL  SERVE  AN  INITIAL  TERM OF THREE YEARS; AND THE MEMBER
FIRST APPOINTED UPON THE RECOMMENDATION OF THE STATE  COMPTROLLER  SHALL
SERVE  AN  INITIAL  TERM  OF  TWO  YEARS.  UPON EXPIRATION OF A MEMBER'S
INITIAL TERM, EACH SUBSEQUENT TERM SHALL BE FOR A PERIOD OF FOUR YEARS.
  4. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW,  NO  OFFICER  OR
EMPLOYEE OF THE STATE, OF ANY POLITICAL SUBDIVISION OF THE STATE, OF ANY
GOVERNMENTAL  ENTITY  OPERATING  ANY PUBLIC SCHOOL OR COLLEGE, OR OF ANY
OTHER PUBLIC AGENCY OR INSTRUMENTALITY OR UNIT OF GOVERNMENT WHICH EXER-
CISES GOVERNMENTAL POWERS UNDER THE LAWS OF  THE  STATE,  SHALL  FORFEIT
SUCH  OFFICE  OR  EMPLOYMENT BY REASON OF ACCEPTANCE OR APPOINTMENT AS A
MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT OF THE COUNCIL.   THE
MEMBERS,  THEIR REPRESENTATIVES, OFFICERS AND STAFF TO THE COUNCIL SHALL
BE DEEMED EMPLOYEES WITHIN THE  MEANING  OF  SECTION  SEVENTEEN  OF  THE
PUBLIC OFFICERS LAW.
  5.  THE  MEMBERS OF THE COUNCIL SHALL SERVE WITHOUT SALARY OR PER DIEM
ALLOWANCE BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL  AND  NECES-
SARY  EXPENSES  INCURRED  IN  THE  PERFORMANCE  OF THEIR OFFICIAL DUTIES
PURSUANT TO THIS ARTICLE;  PROVIDED,  HOWEVER,  THAT  SUCH  MEMBERS  AND
REPRESENTATIVES  ARE NOT, AT THE TIME SUCH EXPENSES ARE INCURRED, PUBLIC
EMPLOYEES OTHERWISE ENTITLED TO SUCH REIMBURSEMENT.
  S 252. POWERS AND DUTIES. 1. THE COUNCIL SHALL HAVE THE POWER TO:
  (A) HOLD SUCH HEARINGS, MEET AND ACT AT SUCH TIMES  AND  PLACES,  TAKE
SUCH  TESTIMONY,  ADMINISTER SUCH OATHS OR AFFIRMATIONS AND RECEIVE SUCH
EVIDENCE AS THE COUNCIL CONSIDERS ADVISABLE TO CARRY OUT  ITS  RESPONSI-
BILITIES;
  (B)  REQUIRE  THE PRODUCTION OF ANY BOOKS, AND COLLECTION AND COMPILA-
TION OF DATA DEEMED RELEVANT OR MATERIAL TO ANY REVIEW UNDERTAKEN PURSU-
ANT TO ITS PURPOSE UNDER THIS ARTICLE;
  (C) REQUEST AND RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD,  COMMIS-
SION  OR  OTHER  AGENCY  OF  THE STATE, INCLUDING ANY STATE AUTHORITIES,
LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS  ANY  RELEVANT  INFORMATION
NECESSARY  TO CARRY OUT THE RESPONSIBILITIES AND PROVISIONS SET FORTH IN
THIS ARTICLE;
  (D) ENTER INTO COOPERATIVE AGREEMENTS WITH OTHER  GOVERNMENT  OFFICES,
STATE  AGENCIES,  STATE  AUTHORITIES,  LOCAL  AUTHORITIES  AND MUNICIPAL
CORPORATIONS TO EFFICIENTLY SUPPORT THE WORK OF THE  COUNCIL  AND  CARRY
OUT ITS RESPONSIBILITIES;
  (E) HAVE DIRECT INPUT AND PROMPT ACCESS TO THE HEAD OF ANY STATE AGEN-
CIES,  STATE  AUTHORITIES,  LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS
AND ANY MEMBER AND EMPLOYEE THEREOF WHEN  NECESSARY  OR  USEFUL  IN  THE
PERFORMANCE OF THE DUTIES OR RESPONSIBILITIES OF THE COUNCIL;
  (F)  ISSUE  SUCH REPORTS AND OTHER DOCUMENTS AS THE COUNCIL DETERMINES
TO BE NECESSARY OR ADVISABLE; AND
  (G) ADVISE AND MAKE RECOMMENDATIONS TO THE GOVERNOR, THE  LEGISLATURE,
THE  COMPTROLLER,  AND OTHER AGENCIES, STATE AUTHORITIES, LOCAL AUTHORI-
TIES AND MUNICIPAL CORPORATIONS OF THE STATE ON  MATTERS  AFFECTING  THE
CONDITION OF THE CAPITAL ASSETS WITHIN THE STATE.

A. 10340                           12

  2.  THE  COUNCIL  SHALL IDENTIFY THE CAPITAL ASSETS LOCATED WITHIN THE
STATE ON A PERIODIC BASIS AND ASSESS THE CONDITION OF THE ASSETS BY:
  (A)  DEVELOPING  UNIFORM CRITERIA AND PROCEDURES FOR USE IN CONDUCTING
INVENTORIES AND ASSESSMENTS, INCLUDING FORMAL STANDARDS DEFINING A STATE
OF GOOD REPAIR AND REPLACEMENT CYCLES FOR CAPITAL ASSETS, AND  STANDARDS
REQUIRING CLEAR JUSTIFICATION IN TERMS OF RIGOROUS ECONOMIC ANALYSIS FOR
PROPOSED NEW CAPITAL INVESTMENTS OR EXPANSIONS;
  (B) INVENTORYING ALL EXISTING CAPITAL ASSETS USING TO THE EXTENT PRAC-
TICABLE, EXISTING INVENTORIES AVAILABLE FROM ALL SOURCES; WHERE EXISTING
INVENTORIES  ARE  NOT  AVAILABLE, A PROCESS FOR STATE AGENCIES AND STATE
AUTHORITIES AND, IN THE DISCRETION OF THE COUNCIL, LOCAL AUTHORITIES AND
MUNICIPAL CORPORATIONS, TO INVENTORY ALL EXISTING CAPITAL ASSETS WILL BE
DEVELOPED SUBJECT TO APPROVAL OF THE COUNCIL; AND
  (C) ASSESSING THE CONDITION  OF  CAPITAL  ASSETS,  INCLUDING  BUT  NOT
LIMITED  TO CHANGES IN THE CONDITION OF THOSE CAPITAL ASSETS AS COMPARED
WITH PRECEDING YEARS AND IDENTIFICATION OF NEEDED IMPROVEMENTS.
  3. THE COUNCIL SHALL DEVELOP RECOMMENDATIONS  BASED  ON  COMPREHENSIVE
STUDIES  AND  ASSESSMENTS UNDERTAKEN PURSUANT TO SUBDIVISION TWO OF THIS
SECTION, AND SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVER-
NOR, THE LEGISLATURE AND THE COMPTROLLER NOT LATER THAN JUNE  FIFTEENTH,
TWO  THOUSAND  EIGHTEEN,  AND  ANNUALLY  THEREAFTER, AND SHALL MAKE SUCH
REPORTS ACCESSIBLE TO THE PUBLIC, VIA ITS OFFICIAL  OR  SHARED  INTERNET
WEB SITE. THE RECOMMENDATIONS OF THE COUNCIL SHALL INCLUDE:
  (A)  PROPOSED IMPROVEMENTS IN PRIORITIZING THE PLANNING AND FUNDING OF
CAPITAL ASSET INVESTMENTS;
  (B) IMPROVED PROCEDURES FOR ENSURING THAT  STATE  AGENCIES  AND  STATE
AUTHORITIES AND, IN THE DISCRETION OF THE COUNCIL, LOCAL AUTHORITIES AND
MUNICIPAL  CORPORATIONS  REPLACE ASSETS ON REGULAR REPLACEMENT SCHEDULES
ACCORDING TO RELIABLE ESTIMATES OF THEIR USEFUL LIVES; AND
  (C) IMPROVEMENTS IN CRITERIA AND PROCEDURES THAT MAY BE USED BY  STATE
AGENCIES  AND  STATE  AUTHORITIES AND, IN THE DISCRETION OF THE COUNCIL,
LOCAL AUTHORITIES AND MUNICIPAL CORPORATIONS, IN:
  (I) DETERMINING THE CAPACITY OF CAPITAL ASSETS TO SUSTAIN CURRENT  AND
ANTICIPATED   ECONOMIC   DEVELOPMENT   AND   COMPETITIVENESS,  INCLUDING
LONG-TERM ECONOMIC GROWTH, INCLUDING THE POTENTIAL RETURN ON INVESTMENTS
IN NEW CAPITAL ASSETS AS OPPOSED  TO  INVESTMENTS  IN  EXISTING  CAPITAL
ASSETS;
  (II)  MAINTAINING  DATA  IN  A  FORM THAT IS READILY ACCESSIBLE TO THE
PUBLIC;
  (III) THE METHODS USED TO FINANCE THE CONSTRUCTION, ACQUISITION, REHA-
BILITATION AND MAINTENANCE OF CAPITAL ASSETS;
  (IV) COMPREHENSIVE INVESTMENT REQUIREMENTS, BY TYPE OF CAPITAL  ASSET,
THAT  ARE NECESSARY TO MAINTAIN THE CURRENT CONDITION AND PERFORMANCE OF
THE CAPITAL ASSETS AND THE INVESTMENT NEEDED TO IMPROVE  CAPITAL  ASSETS
IN THE FUTURE;
  (V)  TRENDS  OR  INNOVATIONS  IN CONSTRUCTION METHODS OR MATERIALS FOR
CAPITAL ASSETS;
  (VI) THE IMPACT OF LOCAL DEVELOPMENT PATTERNS ON DEMAND FOR FUNDING OF
CAPITAL ASSETS;
  (VII) THE IMPACT OF DEFERRED MAINTENANCE; AND
  (VIII) THE IMPACT OF DETERIORATED CAPITAL ASSETS.
  4. THE COUNCIL SHALL REPORT UPDATED FINDINGS AND RECOMMENDATIONS IN  A
MANNER  CONSISTENT  WITH  THE  PROVISIONS  OF  SUBDIVISION THREE OF THIS
SECTION, TO BE KNOWN  AS  THE  "COMPREHENSIVE  STATEWIDE  CAPITAL  NEEDS
ASSESSMENT". SUCH REPORTS SHALL BE ISSUED NOT LATER THAN THE LAST DAY OF
THE  CALENDAR  YEAR  FOLLOWING  THE YEAR IN WHICH THE REPORT REQUIRED BY

A. 10340                           13

SUBDIVISION THREE OF THIS SECTION IS ISSUED AND, THEREAFTER, ON AN ANNU-
AL BASIS.
  5.  (A)  THE COUNCIL SHALL ISSUE A COMPREHENSIVE TWENTY YEAR STRATEGIC
PLAN FOR CAPITAL NEEDS ENCOMPASSING  NECESSARY  MAINTENANCE  ACTIVITIES,
SCHEDULED ASSET REPLACEMENT AND EXPANSION, THE STATUS OF CURRENT CAPITAL
ACTIVITIES, AND RELATED FINANCING. THE LONG-TERM STRATEGIC PLAN SHALL BE
DEVELOPED  BASED ON THE CAPITAL PROJECTS IDENTIFIED IN THE COMPREHENSIVE
STATEWIDE CAPITAL NEEDS ASSESSMENT AND FUTURE CAPITAL PROJECT  NEEDS  OF
THE STATE, WITH CLEAR INTERIM GOALS AND BENCHMARKS.
  (B)  THE  LONG-TERM  STRATEGIC PLAN SHALL BE UPDATED AND REVISED EVERY
EVEN-NUMBERED YEAR, AND ISSUED  SIMULTANEOUSLY  WITH  THE  COMPREHENSIVE
STATEWIDE CAPITAL NEEDS ASSESSMENT OF THAT YEAR.
  S  2.  The opening paragraph 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, is
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, ALONG WITH CAPITAL APPROPRIATIONS PROPOSED IN THE  EXECU-
TIVE  BUDGET  OR  ENACTED  BY  THE  LEGISLATURE,  SHALL  DERIVE FROM THE
LONG-TERM STRATEGIC PLAN ESTABLISHED BY SUBDIVISION FIVE OF SECTION  TWO
HUNDRED  FIFTY-TWO  OF  THIS  CHAPTER.  ANY DEVIATION FROM THE LONG-TERM
STRATEGIC PLAN MUST BE JUSTIFIED. The plan shall contain a comprehensive
assessment of the capital assets and program needs of  all  state  agen-
cies,  a review and analysis of how such requirements would be financed,
an analysis of the affordability of state-supported debt, and an  analy-
sis of all costs related to the financing of such plan.
  S 3. This act shall take effect immediately.

                                 PART C

  Section  1.  Sections  67-a  and  67-b  of  the  state finance law are
REPEALED and five new sections 67-a, 67-b, 67-b-1, 67-b-2 and  67-d  are
added to read as follows:
  S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "STATE DEBT" SHALL MEAN ALL BONDS, BOND ANTICIPATION NOTES, TAX AND
REVENUE  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
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-SEVEN 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,

A. 10340                           14

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, 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 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
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.
  S 67-B. DUTIES WITH RESPECT TO STATE-FUNDED  DEBT.  1.  ON  OR  BEFORE
OCTOBER  THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE AND ON OR BEFORE OCTOBER
THIRTY-FIRST OF EACH YEAR THEREAFTER, THE DIVISION OF BUDGET SHALL  HAVE
THE  RESPONSIBILITY  TO  DETERMINE  THE TOTAL DEBT LIMIT OF THE STATE BY

A. 10340                           15

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-FIVE AND ON
OR BEFORE OCTOBER THIRTY-FIRST OF EACH YEAR THEREAFTER, THE DIVISION  OF
BUDGET  SHALL  DETERMINE THE TOTAL DEBT LIMIT OF THE STATE, AND PURSUANT
TO SECTION SIXTY-SEVEN-B-TWO OF THIS ARTICLE FOR THE  NEXT  FISCAL  YEAR
AND  DETERMINE  WHETHER  THE  TOTAL  PRINCIPAL AMOUNT OF ADDITIONAL DEBT
PROJECTED TO BE INCURRED IN THE NEXT  FISCAL  YEAR,  TOGETHER  WITH  THE
TOTAL PRINCIPAL AMOUNT OF STATE-FUNDED DEBT ALREADY OUTSTANDING IS EQUAL
TO  OR GREATER THAN THE DEBT LIMIT, AND REPORT SUCH INFORMATION BY OCTO-
BER 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 CHAIRPERSON 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
SEVENTEEN--TWO THOUSAND EIGHTEEN 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-B-TWO OF THIS ARTI-
CLE BY APRIL FIRST, TWO THOUSAND  TWENTY-SIX.  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-SIX.
  S 67-B-1. 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 ONE 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
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.  SUCH  DESIGNATED PERCENTAGE SHALL BE SEVEN AND ONE-HALF-
TENTHS OF ONE PERCENT FOR FISCAL YEAR TWO  THOUSAND--TWO  THOUSAND  ONE,
AND  SHALL  INCREASE  BY  FIVE-TENTHS  OF ONE PERCENT IN FISCAL YEAR TWO
THOUSAND ONE--TWO THOUSAND TWO, BY  AN  ADDITIONAL  FOUR-TENTHS  OF  ONE
PERCENT  IN  FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND THREE, AND BY AN
ADDITIONAL ONE-THIRD OF ONE PERCENT IN  EACH  OF  THE  SEVEN  SUBSEQUENT
FISCAL  YEARS.  THE  DESIGNATED  PERCENTAGE FOR FISCAL YEAR TWO THOUSAND
TEN--TWO THOUSAND ELEVEN 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, 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.

A. 10340                           16

NOTWITHSTANDING  THE  FOREGOING, THE PROVISIONS OF SUCH SECTION THIRTEEN
OF ARTICLE SEVEN OF THE CONSTITUTION  RELATING  TO  THE  MAINTENANCE  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 REFUNDING, RETIREMENT
OR DEFEASANCE OF STATE-SUPPORTED DEBT ISSUED PRIOR TO APRIL  FIRST,  TWO
THOUSAND,  THEN THE AMOUNT OF SUCH REFUNDING DEBT SHALL BE EXCLUDED FROM
THE CALCULATION OF THE TOTAL OUTSTANDING PRINCIPAL  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  ACCOM-
PLISHED ON AN ECONOMIC BASIS.
  2.  STATE-SUPPORTED DEBT MAY NOT BE CONTRACTED FOR UNLESS, AS OF OCTO-
BER THIRTY-FIRST, TWO THOUSAND ONE 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-SUPPORTED  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,  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. IN ADDITION, 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,  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 ONE, AND SHALL INCREASE BY FIVE-TENTHS OF ONE PERCENT
IN  FISCAL  YEAR  TWO  THOUSAND  ONE--TWO THOUSAND TWO, BY AN ADDITIONAL
FOUR-TENTHS OF ONE PERCENT IN FISCAL YEAR TWO THOUSAND TWO--TWO THOUSAND
THREE, 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 THIRTEEN--TWO THOUSAND FOURTEEN AND FOR EACH FISCAL YEAR THERE-
AFTER SHALL BE FIVE PERCENT.
  S  67-B-2.  LIMITATIONS  ON  STATE-FUNDED  DEBT.  1.   NO   ADDITIONAL
STATE-FUNDED  DEBT  SHALL  BE  INCURRED  AFTER APRIL FIRST, TWO THOUSAND
TWENTY-SIX IF  THE  TOTAL  PRINCIPAL  AMOUNT  OF  SUCH  ADDITIONAL  DEBT
PROJECTED TO BE INCURRED IN SUCH YEAR, 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 CONSTI-

A. 10340                           17

TUTION, DEBT INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF
THE CONSTITUTION, AND REFUNDING DEBT.
  2.  WITH  THE EXCEPTION OF SHORT TERM DEBT INCURRED IN ACCORDANCE WITH
SECTION NINE OF ARTICLE SEVEN OF  THE  CONSTITUTION,  DEBT  INCURRED  IN
ACCORDANCE  WITH  SECTION  TEN OF ARTICLE SEVEN OF THE CONSTITUTION, 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 PRIN-
CIPAL  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-D 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.
  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-D. PROHIBITION OF CONTINGENT OBLIGATION DEBT. AFTER THE EFFECTIVE
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  MAY  BE  REFUNDED  BY  THE ENTITY THAT INCURRED THE OUTSTANDING
DEBT.
  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:

A. 10340                           18

  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 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,

A. 10340                           19

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-
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, THREE, four, [and] five,
FIVE-A AND FIVE-B 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 experience  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  PRIOR  TO  OCTOBER  THIRTY-FIRST,  TWO  THOUSAND TWENTY-FIVE shall
include the calculation of the limitations on the issuance of state-sup-
ported debt computed pursuant to the provisions of subdivisions one  and
two  of  section  [sixty-seven-b] SIXTY-SEVEN-B-ONE of this chapter. THE
QUARTERLY FINANCIAL PLAN UPDATE MOST PROXIMATE TO  OCTOBER  THIRTY-FIRST
OF  EACH YEAR ON OR AFTER OCTOBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE
SHALL INCLUDE THE CALCULATION OF THE  LIMITATIONS  ON  THE  ISSUANCE  OF
STATE-FUNDED  DEBT  COMPUTED  PURSUANT  TO THE PROVISIONS OF SUBDIVISION
THREE OF SECTION SIXTY-SEVEN-B OF THIS CHAPTER.
  S 6. 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;

A. 10340                           20

  S 7. This act shall take effect immediately, provided,  however,  that
section 67-b-1 of the state finance law, as added by section one of this
act,  shall  expire  and  be  deemed  repealed March 31, 2026; provided,
further, that the provisions of section 67-b-2 of the state finance  law
as added by section one of this act shall take effect March 31, 2026.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act 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 judg-
ment 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 3. This act shall take effect immediately; provided,  however,  that
the  applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.