S T A T E   O F   N E W   Y O R K
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                                  2460

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by M. of A. TEDISCO, MONTESANO, LALOR, MALLIOTAKIS -- Multi-
  Sponsored by -- M.  of  A.  BARCLAY,  CROUCH,  FINCH,  GOODELL,  KOLB,
  McLAUGHLIN,  OAKS,  RAIA,  TENNEY, THIELE -- read once and referred to
  the Committee on Election Law

AN ACT to amend the election law and the state finance law, in  relation
  to requiring a proposition authorizing the creation of a state debt to
  contain  an estimate of the debt service payable thereon, and to amend
  the state finance law, in relation  to  requiring  publication  of  an
  explanation of the proposition authorizing the creation of state debt,
  deposits  to  the  tax  stabilization  reserve fund, and using surplus
  moneys to reduce outstanding state funded debt

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

  Section  1.  The election law is amended by adding a new section 7-112
to read as follows:
  S 7-112. BALLOTS; FORM FOR PROPOSITION; ADDITIONAL REQUIREMENTS.  EACH
DULY CERTIFIED PROPOSITION CONTAINED ON THE BALLOT AND SUBMITTED TO  THE
VOTERS  OF  THE  STATE  WHICH  PROVIDES FOR THE CREATION OF A STATE DEBT
SHALL CONTAIN AN ESTIMATE OF THE ANTICIPATED NUMBER OF YEARS OVER  WHICH
SUCH DEBT SHALL BE AMORTIZED AND THE TOTAL EXPECTED DEBT SERVICE PAYABLE
ON  THE  PRINCIPAL  AMOUNT  OF  SUCH  BONDS UNTIL THEIR RETIREMENT. SUCH
INFORMATION SHALL BE PRINTED IN THE LARGEST TYPE WHICH IS PRACTICABLE TO
USE IN THE SPACE PROVIDED FOR THE PROPOSITION. SUCH INFORMATION SHALL BE
PROVIDED TO THE STATE BOARD OF ELECTIONS AND THE SECRETARY OF  STATE  BY
THE STATE COMPTROLLER NOT LATER THAN SEVEN DAYS AFTER THE PASSAGE OF THE
LAW AUTHORIZING SUCH PROPOSITION.
  S 2. Subdivision 2 of section 4-116 of the election law, as amended by
chapter 60 of the laws of 1993, is amended to read as follows:
  2. The state board of elections shall publish once in the week preced-
ing  any  election  at which proposed constitutional amendments or other
propositions or questions are to be submitted to the voters of the state

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02634-01-5
              

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an abstract of such amendment or question, INCLUDING THE ESTIMATE OF THE
AMORTIZATION PERIOD AND THE TOTAL ANTICIPATED DEBT  SERVICE  PAYABLE  ON
THE  PRINCIPAL  WHERE THE PROPOSITION AUTHORIZES THE CREATION OF A STATE
DEBT,  a  brief  statement  of  the  law or proceedings authorizing such
submission, a statement that such submission will be made and  the  form
in which it is to be submitted.
  S  3.  The  state  finance law is amended by adding a new section 6 to
read as follows:
  S 6. STATE PUBLICATION CONCERNING PROPOSITION.  ANY  REPORT,  PUBLICA-
TION, PAMPHLET OR OTHER WRITTEN DOCUMENT PREPARED BY A STATE DEPARTMENT,
AGENCY,  AUTHORITY  OR  OTHER COMPONENT OR DIVISION OF STATE GOVERNMENT,
INTENDED FOR DISTRIBUTION TO THE PUBLIC, WHICH IS  INTENDED  TO  PROMOTE
AWARENESS OF OR EXPLAIN THE PROVISIONS CONTAINED IN, OR INCIDENTAL TO, A
DULY  CERTIFIED  PROPOSITION  TO  BE  CONTAINED  ON THE BALLOT AND TO BE
SUBMITTED TO THE VOTERS OF THE STATE WHICH PROPOSITION PROVIDES FOR  THE
CREATION OF A STATE DEBT SHALL CONTAIN THEREIN AN ESTIMATE OF THE ANTIC-
IPATED  NUMBER  OF YEARS OVER WHICH SUCH DEBT SHALL BE AMORTIZED AND THE
TOTAL EXPECTED DEBT SERVICE PAYABLE ON  THE  PRINCIPAL  AMOUNT  OF  SUCH
BONDS  UNTIL  THEIR RETIREMENT. SUCH INFORMATION SHALL BE PRINTED IN THE
LARGEST TYPE WHICH IS PRACTICABLE TO USE IN SUCH DOCUMENT.
  S 4. Subdivisions 3 and 4 of section 92 of the state finance  law,  as
separately  amended  by  chapters  405  and 957 of the laws of 1981, are
amended to read as follows:
  3. At the close of each fiscal year any cash surplus remaining in  the
general  fund  over  and  above  the  norm for such fiscal year shall be
transferred from or retained in such fund as hereinafter in this  subdi-
vision  provided.  There  shall  be transferred to the tax stabilization
reserve fund all of such surplus moneys, up to and including  an  amount
equivalent  to  [two-tenths]  ONE-HALF  of  one per centum of such norm,
unless such transfer would increase such reserve fund to  an  amount  in
excess  of  [two]  FIVE  per  centum  of the amount of the norm for such
fiscal year, in which event such  transfer  shall  be  limited  to  such
amount  as will increase such reserve fund to such [two] FIVE per centum
limitation. Any balance of such surplus moneys, thereafter remaining  in
the  general  fund,  shall be retained in such fund and be available for
the reduction of state taxes.
  4. In the event that at the close of  any  fiscal  year  the  receipts
derived  from  the  taxes,  fees  and other sources, required to be paid
during such fiscal year into the general fund of the  state  shall  fall
below the norm for such fiscal year, there shall be transferred from the
tax  stabilization  reserve  fund to the general fund to the extent that
there are sufficient moneys in the tax stabilization  reserve  fund,  an
amount  equal  to the difference between the norm and the amount of such
receipts. If such transfer reduces the tax stabilization reserve fund to
an amount less than [two] FIVE per centum of the norm  for  such  fiscal
year,  the  amount  so  transferred shall be repaid in cash prior to the
computation and payment of any transfer to the fund pursuant to subdivi-
sion three of this section in not less than three equal annual  install-
ments within the period of six years or less next succeeding the date of
such  transfer;  provided,  however, that if any such annual installment
shall increase such reserve fund to an amount in excess  of  [two]  FIVE
per  centum  of the amount of the norm for the then current fiscal year,
such installment shall be limited to such amount as will  increase  such
reserve  fund  to  such  [two] FIVE per centum limitation and no further
repayment of the whole or any part of such transfer shall be required in

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any subsequent fiscal year.  Repayments to the tax stabilization reserve
fund shall be stipulated in annual budget bills.
  S  5. The state finance law is amended by adding a new section 65-a to
read as follows:
  S 65-A. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED DEBT.
AT THE CLOSE OF EACH FISCAL YEAR, AT  LEAST  TEN  PERCENT  OF  ANY  CASH
SURPLUS  REMAINING  IN  THE  GENERAL FUND AFTER THE TRANSFER PURSUANT TO
SECTION NINETY-TWO OF THIS CHAPTER SHALL  BE  TRANSFERRED  TO  THE  DEBT
REDUCTION  RESERVE  FUND ESTABLISHED BY SECTION NINETY-SEVEN-RRR OF THIS
CHAPTER.
  S 6. 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:
  S  97-rrr. Debt reduction reserve fund. 1. There is hereby established
in the joint custody of the comptroller and the commissioner of taxation
and finance a fund to be known as the debt reduction reserve fund. [Such
fund shall be established as a capital projects fund.]
  2. Such fund shall consist of all monies credited or transferred ther-
eto from the general fund or from any other fund or sources pursuant  to
law.
  3. The monies in such fund, following appropriation by the legislature
and  allocation  by  the director of the budget, shall be available [for
the following purposes:
  (a) for the payment of principal, interest, and  related  expenses  on
general obligation bonds, lease purchase payments, or special contractu-
al  obligation payments, or] ONLY for the [purposes] PURPOSE of retiring
or defeasing bonds OR NOTES previously  issued,  including  any  accrued
interest  thereon, for any [state-supported bonding program or programs,
and;
  (b) for the funding of capital projects,  equipment  acquisitions,  or
similar  expenses  which  have  been  authorized  by  law to be financed
through the issuance of bonds, notes, or other obligations] STATE FUNDED
DEBT.
  S 7. This act shall take effect immediately;  provided,  however  that
provisions  of  section  four  of this act shall take effect three years
after it shall have become a law.