S T A T E   O F   N E W   Y O R K
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                                 2662--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 27, 2015
                               ___________

Introduced  by  Sens.  KRUEGER,  LATIMER,  MONTGOMERY, PERKINS, SERRANO,
  STAVISKY -- read twice and ordered printed, and  when  printed  to  be
  committed  to the Committee on Finance -- recommitted to the Committee
  on Finance in accordance with Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  state  finance  law and the legislative law, in
  relation to enacting a balanced budget requirement  and  creating  the
  New York state governmental accounting review board

  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
                    BUDGETING ACCORDING TO GENERALLY
                     ACCEPTED ACCOUNTING PRINCIPLES
SECTION 35. DEFINITIONS.
        36. DEVELOPMENT  OF  THE EXECUTIVE BUDGET SUBMISSION AND ENACTED
              BUDGET.
        37. NEW YORK STATE GOVERNMENTAL ACCOUNTING REVIEW BOARD.
  S 35. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  WORDS  AND
TERMS  SHALL  HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT.
  1. "BOARD" MEANS NEW YORK STATE GOVERNMENTAL ACCOUNTING  REVIEW  BOARD
PURSUANT TO SECTION THIRTY-SEVEN OF THIS ARTICLE.
  2.  "REVENUES"  MEAN  ALL  TAXES,  RENTS, FEES, CHARGES, PAYMENTS, ALL
PROCEEDS FROM BORROWINGS AND OTHER INCOME AND RECEIPTS PAID  OR  PAYABLE
TO OR FOR THE STATE'S TREASURY.
  3.  "GENERALLY  ACCEPTED  ACCOUNTING  PRINCIPLES"  MEANS  THE  SET  OF
ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING ESTABLISHED BY THE  FINAN-
CIAL  ACCOUNTING  STANDARDS  ADVISORY BOARD AND GOVERNED BY THE AMERICAN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00221-02-6
              

S. 2662--A                          2

INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FOR  FEDERAL  REPORTING  ENTI-
TIES.
  4.  "EXECUTIVE  BUDGET SUBMISSION" MEANS THE DOCUMENT SUBMITTED BY THE
GOVERNOR TO THE LEGISLATURE PURSUANT TO SECTION TWO OF ARTICLE SEVEN  OF
THE STATE CONSTITUTION.
  5.  "ENACTED  BUDGET"  MEANS THE DOCUMENT PASSED BY BOTH HOUSES OF THE
LEGISLATURE PURSUANT TO SECTION FOUR  OF  ARTICLE  SEVEN  OF  THE  STATE
CONSTITUTION.
  S 36. DEVELOPMENT OF THE EXECUTIVE BUDGET SUBMISSION AND ENACTED BUDG-
ET. 1. FOR FISCAL YEARS BEGINNING ON AND AFTER APRIL FIRST, TWO THOUSAND
SEVENTEEN, THE EXECUTIVE BUDGET SUBMISSION AND THE ENACTED BUDGET COVER-
ING  ALL  EXPENDITURES  OTHER  THAN  CAPITAL ITEMS SHALL BE PREPARED AND
BALANCED SO THE RESULTS THEREOF WOULD NOT SHOW A DEFICIT  WHEN  REPORTED
IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
  2.  THE  GOVERNOR, THE LEGISLATURE AND THE NEW YORK STATE GOVERNMENTAL
ACCOUNTING REVIEW BOARD  SHALL  CONFER  CONCERNING  THE  REQUIREMENT  TO
BALANCE  THE  BUDGET,  AS WELL AS THE PROJECTED EFFECT ON THE BUDGETS BY
ANY CHANGE IN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES OR CHANGE IN  THE
APPLICATION  OF  GENERALLY  ACCEPTED ACCOUNTING PRINCIPLES TO THE STATE.
THE GOVERNOR AND/OR THE LEGISLATURE MAY PETITION  THE  BOARD  TO  EXEMPT
EITHER  THE  EXECUTIVE  BUDGET SUBMISSION OR THE ENACTED BUDGET FROM THE
PROVISIONS OF THIS SECTION.
  S 37. NEW YORK STATE GOVERNMENTAL ACCOUNTING REVIEW BOARD. 1. THERE IS
HEREBY CREATED THE NEW YORK STATE GOVERNMENTAL ACCOUNTING REVIEW  BOARD.
THE  BOARD  SHALL BE A GOVERNMENTAL AGENCY AND INSTRUMENTALITY AS IS SET
FORTH IN THIS ARTICLE.
  2. THE BOARD SHALL HAVE THE FOLLOWING FUNCTIONS:
  A. TO CONFER WITH THE GOVERNOR  AND  THE  LEGISLATURE  CONCERNING  THE
REQUIREMENT  TO  BALANCE THE BUDGET AS PROVIDED IN SECTION THIRTY-SIX OF
THIS ARTICLE, THE PROJECTED EFFECT ON  THE  BUDGETS  BY  ANY  CHANGE  IN
GENERALLY  ACCEPTED ACCOUNTING PRINCIPLES, AND CHANGE IN THE APPLICATION
OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO THE STATE BUDGET;
  B. TO HEAR PETITIONS FROM THE GOVERNOR OR LEGISLATURE WITH RELATION TO
MODIFYING OR EXEMPTING THE EXECUTIVE BUDGET SUBMISSION  OR  THE  ENACTED
BUDGET  FROM  THE  BALANCED  BUDGET REQUIREMENT OF SECTION THIRTY-SIX OF
THIS ARTICLE OR FROM THE REQUIREMENTS OF ANY  NEW  OR  EXISTING  GOVERN-
MENTAL  ACCOUNTING STANDARDS, BOARD STATEMENTS, INTERPRETATIONS, TECHNI-
CAL BULLETINS, AND CONCEPT STATEMENTS; AND
  C. TO DETERMINE WHETHER IMMEDIATE COMPLIANCE WITH  THE  PROVISIONS  OF
SECTION  THIRTY-SIX OF THIS ARTICLE WILL HAVE A MATERIAL EFFECT ON STATE
BUDGETS OVER A TIME PERIOD INSUFFICIENT TO ACCOMMODATE THE EFFECT  WITH-
OUT  A SUBSTANTIAL ADVERSE IMPACT ON THE DELIVERY OF ESSENTIAL SERVICES,
AND, UPON SUCH DETERMINATION, TO AUTHORIZE AND APPROVE A METHOD OF PHAS-
ING THE REQUIREMENTS OF THIS SECTION INTO SUCH BUDGETS OVER SUCH REASON-
ABLY EXPEDITIOUS TIME PERIOD AS THE BOARD DEEMS APPROPRIATE.
  3. THE BOARD SHALL BE COMPRISED OF FIVE  MEMBERS,  ONE  OF  WHOM  WILL
SERVE  AS  CHAIR;  WHO  ARE NOMINATED BY THE GOVERNOR AND APPOINTED WITH
ADVICE AND CONSENT OF THE SENATE. ALL OF THE APPOINTED MEMBERS SHALL  BE
RESIDENTS  OF  THE  STATE.  SUCH APPOINTED MEMBERS SHALL SERVE A TERM OF
FIVE YEARS.  ALL APPOINTED MEMBERS SHALL HAVE ACADEMIC OR BUSINESS EXPE-
RIENCE IN  GOVERNMENTAL  ACCOUNTING  STANDARDS  AND  GENERALLY  ACCEPTED
ACCOUNTING  PRINCIPLES. THE BOARD SHALL ACT BY A MAJORITY QUORUM VOTE OF
THE ENTIRE BOARD. THE BOARD SHALL MAINTAIN A RECORD OF  ITS  PROCEEDINGS
IN SUCH FORM AS IT MAY DETERMINE, BUT SUCH RECORD SHALL INDICATE ATTEND-
ANCE AND ALL VOTES CAST BY EACH MEMBER.

S. 2662--A                          3

  4.  NOTWITHSTANDING  ANY INCONSISTENT PROVISIONS OF LAW, NO OFFICER OR
EMPLOYEE OF THE STATE,  OR  POLITICAL  SUBDIVISION  OF  THE  STATE,  ANY
GOVERNMENTAL  ENTITY  OPERATING  ANY  PUBLIC  SCHOOL OR COLLEGE OR OTHER
PUBLIC AGENCY OR INSTRUMENTALITY OR UNIT OF GOVERNMENT  WHICH  EXERCISES
GOVERNMENTAL  POWERS  UNDER  THE  LAWS  OF  THE STATE, SHALL FORFEIT HIS
OFFICE OR EMPLOYMENT BY REASON OF HIS ACCEPTANCE  OR  APPOINTMENT  AS  A
MEMBER,  REPRESENTATIVE,  OFFICER,  EMPLOYEE  OR  AGENT OF THE BOARD NOR
SHALL SERVICE AS SUCH MEMBER, OFFICER, EMPLOYEE OR AGENT OF THE BOARD BE
DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
  5. THE MEMBERS OF THE BOARD 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 OFFICIAL DUTIES UNDER  THIS
ACT,  PROVIDED HOWEVER THAT SUCH MEMBERS AND REPRESENTATIVES ARE NOT, AT
THE TIME SUCH EXPENSES ARE INCURRED, PUBLIC EMPLOYEES OTHERWISE ENTITLED
TO SUCH REIMBURSEMENT.
  6. ALL AGENCIES, AUTHORITIES, AND  INSTITUTIONS  OF  THE  STATE  SHALL
COOPERATE WITH AND PROVIDE SUCH ASSISTANCE TO THE BOARD AS THE BOARD MAY
REQUEST.
  7.  THE  CHAIR, IN CONSULTATION WITH THE BOARD, MAY HIRE OR APPOINT AN
EXECUTIVE DIRECTOR FOR THE BOARD IF DEEMED NECESSARY.
  S 2. Section 22 of the state finance law is amended by  adding  a  new
subdivision 17 to read as follows:
  17.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  (A) A DESCRIPTION OF ALL OF THE  EXPENDITURES  ESTIMATED  TO  BE  MADE
BEFORE  THE CLOSE OF THE CURRENT FISCAL YEAR AND ALL OF THE EXPENDITURES
PROPOSED TO BE MADE DURING THE ENSUING FISCAL YEAR, BOTH  IN  ACCORDANCE
WITH  GENERALLY  ACCEPTED  ACCOUNTING  PRINCIPLES  AS DEFINED IN ARTICLE
THREE-A OF THIS CHAPTER; AND
  (B) A DESCRIPTION OF ALL THE REVENUES ESTIMATED TO ACCRUE  BEFORE  THE
CLOSE  OF  THE  CURRENT  FISCAL YEAR AND DURING THE ENSUING FISCAL YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION WHICH THE  GOVERNOR  DEEMS  NECESSARY  TO  PROVIDE  RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-
ALLY  ACCEPTED  ACCOUNTING  PRINCIPLES  AS DEFINED IN ARTICLE THREE-A OF
THIS CHAPTER.
  S 3. Paragraph (a) of subdivision 2 of section 54 of  the  legislative
law,  as  added  by chapter 1 of the laws of 2007, is amended to read as
follows:
  (a) The legislature shall enact a budget for the upcoming fiscal  year
that it determines is balanced [in the general fund].
  S  4. Subdivision 2 of section 54 of the legislative law is amended by
adding a new paragraph (d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  (I)  ALL  OF THE EXPENDITURES ESTIMATED TO BE MADE BEFORE THE CLOSE OF
THE CURRENT FISCAL YEAR AND ALL OF THE EXPENDITURES PROPOSED TO BE  MADE
DURING  THE  ENSUING  FISCAL  YEAR,  BOTH  IN  ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED  IN  ARTICLE  THREE-A  OF  THE
STATE FINANCE LAW; AND
  (II)  A  DESCRIPTION OF ALL OF THE REVENUES ESTIMATED TO ACCRUE BEFORE
THE CLOSE OF THE CURRENT FISCAL YEAR AND DURING THE ENSUING FISCAL YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION WHICH THE LEGISLATURE DEEMS NECESSARY  TO  PROVIDE  RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-

S. 2662--A                          4

ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN ARTICLE THREE-A OF THE
STATE FINANCE LAW.
  S  5. Separability clause. If any part or provision of this section or
the application thereof to any person is adjudged by a court  of  compe-
tent  jurisdiction  to  be  unconstitutional  or otherwise invalid, such
judgment shall not affect or impair any other part or provision  or  the
application  thereof  to any other person, but shall be confined to such
part or provision.
  S 6. This act shall take effect immediately, provided that if this act
shall take effect after April 1, 2017, it shall be deemed to  have  been
in effect on and after April 1, 2017.