S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3980
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2019
                                ___________
 
 Introduced by Sens. KRUEGER, MONTGOMERY, SERRANO, STAVISKY -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Finance
 
 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.
   § 35. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  WORDS  AND
 TERMS  SHALL  HAVE  THE  FOLLOWING MEANINGS UNLESS THE CONTEXT OTHERWISE
 REQUIRES.
   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
 INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FOR  FEDERAL  REPORTING  ENTI-
 TIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08615-01-9
              

 S. 3980                             2
 
   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.
   § 36. DEVELOPMENT OF THE EXECUTIVE BUDGET SUBMISSION AND ENACTED BUDG-
 ET. 1. FOR FISCAL YEARS BEGINNING ON AND AFTER APRIL FIRST, TWO THOUSAND
 TWENTY,  THE EXECUTIVE BUDGET SUBMISSION AND THE ENACTED BUDGET COVERING
 ALL EXPENDITURES OTHER THAN CAPITAL ITEMS SHALL BE PREPARED AND BALANCED
 SO THE RESULTS THEREOF WOULD NOT SHOW A DEFICIT WHEN REPORTED IN ACCORD-
 ANCE 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.
   § 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.
   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

 S. 3980                             3
 
 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.
   § 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.
   § 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].
   §  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-
 ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN ARTICLE THREE-A OF THE
 STATE FINANCE LAW.
   §  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-

 S. 3980                             4
 
 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.
   § 6. This act shall take effect immediately, provided that if this act
 shall  take  effect after April 1, 2020, it shall be deemed to have been
 in effect on and after April 1, 2020.