S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4741
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced by M. of A. GIGLIO -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the state finance law, in relation to the debt reduction
   reserve fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. 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:
   § 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]  DEBT  SERVICE  fund,
 PROVIDED,  HOWEVER,  ANY  BALANCE  OF  MONEYS  IN SUCH FUND SHALL NOT BE
 TRANSFERRED TO THE GENERAL FUND PURSUANT TO SUBDIVISION FOUR OF  SECTION
 SEVENTY-TWO OF THIS ARTICLE.
   2.  [Such  fund  shall  consist  of all monies credited or transferred
 thereto from the general fund or from any other fund or sources pursuant
 to law.] AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS
 REMAINING IN THE GENERAL FUND AFTER THE  TRANSFER  PURSUANT  TO  SECTION
 NINETY-TWO OF THIS ARTICLE SHALL BE TRANSFERRED FROM OR RETAINED IN SUCH
 FUND  AS  PROVIDED IN THIS SUBDIVISION. THE PORTION TO BE TRANSFERRED TO
 THE DEBT REDUCTION RESERVE FUND SHALL BE EQUAL TO FIVE PERCENT  OF  SUCH
 SURPLUS  FOR  SUCH  FISCAL YEAR.   FOR THE PURPOSES OF THIS SUBDIVISION,
 CASH SURPLUS SHALL BE DEFINED  AS  THE  AMOUNT  BY  WHICH  GENERAL  FUND
 RECEIPTS  IN  A  FISCAL  YEAR  EXCEED  GENERAL FUND EXPENDITURES IN SUCH
 FISCAL YEAR.
   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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08016-01-7
              

 A. 4741                             2

   (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 OR NOTES previously issued, including any accrued interest  there-
 on, 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].
   § 2. This act shall take effect immediately.