S T A T E O F N E W Y O R K
________________________________________________________________________
7084
I N S E N A T E
(PREFILED)
January 3, 2018
___________
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to article 7 of the constitution, in relation to
the diversion of dedicated funds
Section 1. Resolved (if the Assembly concur), That article 7 of the
constitution be amended by adding a new section 20 to read as follows:
§ 20. RESTRICTIONS ON DIVERSION OF DEDICATED FUNDS; DECLARATION OF
FISCAL EMERGENCY. 1. THE LEGISLATURE SHALL NOT DIVERT REVENUES DERIVED
FROM TAXES AND FEES PAID BY THE PUBLIC INTO ANY DEDICATED FUND FOR
PURPOSES OTHER THAN THOSE FOR WHICH THAT FUND WAS INTENDED. PROHIBITED
DIVERSIONS SHALL INCLUDE, WITHOUT LIMITATION:
(A) BUDGETARY TRANSFERS OF DEDICATED FUND REVENUES INTO THE GENERAL
FUND OF THE STATE OR INTO ANY OTHER FUND MAINTAINED FOR THE SUPPORT OF
ANOTHER GOVERNMENTAL PURPOSE;
(B) ADMINISTRATIVE ACTS BY THE EXECUTIVE THAT WOULD TRANSFER DEDICATED
FUND REVENUES INTO THE GENERAL FUND OF THE STATE OR INTO ANY OTHER FUND
MAINTAINED FOR THE SUPPORT OF ANOTHER GOVERNMENTAL PURPOSE;
(C) ADDITION, BY STATUTE OR ADMINISTRATIVE ACTION, OF NEW PURPOSES FOR
WHICH APPROPRIATION SHALL BE MADE AVAILABLE FOR USE OF DEDICATED FUND
REVENUES, INCLUDING ADDITION OF NEW PURPOSES INTO DEDICATED FUND ENACT-
ING LEGISLATION; AND
(D) REMOVAL, BY STATUTE OR ADMINISTRATIVE ACTION, OF SOURCES OF REVEN-
UE CREATED BY STATUTE, UNLESS REPLACED WITH A GREATER SOURCE OF DEDI-
CATED REVENUE.
2. THE ONLY INSTANCE IN WHICH DEDICATED REVENUES MAY BE DIVERTED SHALL
BE UPON DECLARATION OF A FISCAL EMERGENCY BY THE GOVERNOR, WHICH SHALL
BE ACCOMPANIED BY A DIVERSION IMPACT STATEMENT.
(A) A FISCAL EMERGENCY MAY BE DECLARED BY THE GOVERNOR AND DIVERSION
OF FUNDS MAY BE AUTHORIZED IF THE GOVERNOR NEEDS THE REVENUES TO REPEL
INVASION, SUPPRESS INSURRECTION, DEFEND THE STATE AFTER A DECLARATION OF
WAR, RESPOND TO AN ACT OF TERRORISM, OR RESPOND TO A NATURAL DISASTER.
PRIOR TO DIVERTING REVENUES, THE GOVERNOR SHALL NOTIFY THE MAJORITY AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD89007-01-7
S. 7084 2
MINORITY LEADERSHIP OF THE LEGISLATURE. THE DIVERSION IMPACT STATEMENT
MAY BE PROVIDED RETROACTIVELY UNDER THESE CIRCUMSTANCES.
(B) NO OTHER DIVERSIONS SHALL BE AUTHORIZED UNTIL THE GOVERNOR
DECLARES A STATE OF FISCAL EMERGENCY TO THE MAJORITY AND MINORITY LEAD-
ERSHIP OF THE LEGISLATURE, WHICH SHALL, BY CONCURRENT RESOLUTION, RATIFY
THIS FISCAL EMERGENCY DECLARATION. THE ASSENT OF TWO-THIRDS OF THE
MEMBERS ELECTED TO THE LEGISLATURE SHALL BE REQUISITE TO PASS SUCH
RESOLUTION AND ANY LEGISLATIVE APPROPRIATIONS THAT AUTHORIZE THE DIVER-
SION OF FUNDS.
(C) IF ANY DIVERSION OF FUNDS OCCURS UPON DECLARATION OF FISCAL EMER-
GENCY DURING A REGULAR OR EXTRAORDINARY SESSION OF THE LEGISLATURE, THE
BUDGET OR LEGISLATION DIVERTING FUNDS SHALL INCLUDE A DIVERSION IMPACT
STATEMENT WHICH INCLUDES THE FOLLOWING INFORMATION:
(I) THE AMOUNT DIVERTED FROM EACH FUND;
(II) THE CUMULATIVE AMOUNT DIVERTED FROM EACH OF THE FUNDS SUBJECT TO
DIVERSION DURING THE PRECEDING FIVE YEARS, WHICH SHALL ALSO BE CATEGOR-
IZED BY FUND TYPE;
(III) THE DATE OR DATES WHEN THE DIVERSION OR DIVERSIONS ARE TO OCCUR;
(IV) A DETAILED ESTIMATE OF THE IMPACT OF DIVERSION FROM EACH FUND;
AND
(V) THE PURPOSE FOR WHICH THE FUNDS WILL BE DIVERTED.
(D) THE DIVERSION IMPACT STATEMENT MAY BE PROVIDED RETROACTIVELY UPON
DECLARATION OF A FISCAL EMERGENCY UNDER THE CIRCUMSTANCES OF PARAGRAPH
(A) OF THIS SUBDIVISION. THE DIVERSION IMPACT STATEMENT SHALL BE
PROVIDED CONCURRENTLY WITH THE GOVERNOR'S FISCAL EMERGENCY DECLARATION
AND PRIOR TO INTRODUCTION OF THE CONCURRENT LEGISLATIVE RESOLUTION IF
THE FISCAL EMERGENCY IS DECLARED PURSUANT TO PARAGRAPH (B) OF THIS
SUBDIVISION.
(E) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A FISCAL EMER-
GENCY MAY ONLY BE DECLARED IF CERTAIN ECONOMIC CONDITIONS ARE MET.
THESE INDICATORS AND THE PROCESS FOR BRIEFING THE LEGISLATURE AND PUBLIC
SHALL BE ESTABLISHED BY STATUTE. IF THE FISCAL EMERGENCY DECLARATION IS
MADE BEFORE PASSAGE OF THE AFOREMENTIONED STATUTE, THE GOVERNOR SHALL
USE THE COMPOSITE INDEX OF BUSINESS CYCLE INDICATORS ESTABLISHED PURSU-
ANT TO SECTION 14 OF CHAPTER 1 OF THE LAWS OF 2007.
§ 2. Resolved (if the Assembly concur), That the foregoing be referred
to the first regular legislative session convening after the next
succeeding general election of members of the assembly, and, in conform-
ity with section 1 of article 19 of the constitution, be published for 3
months previous to the time of such election.