S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6935
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 24, 2017
                                ___________
 
 Introduced  by  M. of A. OAKS, MONTESANO, LALOR, MALLIOTAKIS, CASTORINA,
   FRIEND, GIGLIO, LUPINACCI, RA, WALSH, WALTER -- Multi-Sponsored by  --
   M.  of  A. BARCLAY, BLANKENBUSH, CROUCH, FINCH, GOODELL, HAWLEY, KOLB,
   LOPEZ, McDONOUGH, McLAUGHLIN, RAIA -- 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:
   § 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06395-01-7

 A. 6935                             2
 
 propositions or questions are to be submitted to the voters of the state
 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.
   § 3. The state finance law is amended by adding a  new  section  6  to
 read as follows:
   §  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.
   §  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

 A. 6935                             3
 
 any subsequent fiscal year.  Repayments to the tax stabilization reserve
 fund shall be stipulated in annual budget bills.
   §  5. The state finance law is amended by adding a new section 65-a to
 read as follows:
   § 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.
   § 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:
   §  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.
   § 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.