S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4196
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 4, 2019
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law and the New York state  finan-
   cial  emergency  act  for the city of New York, in relation to certain
   variations from generally accepted accounting principles as applied to
   the budget and accounts of the city of New York
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 25 to read as follows:
   § 25.  TREATMENT  OF  CAPITAL  COSTS  AND  RESTRICTED  FUND  BALANCES.
 NOTWITHSTANDING  THE  PROVISIONS  OF ANY GENERAL OR SPECIAL STATE LAW OR
 LOCAL LAW TO THE CONTRARY, INCLUDING BUT NOT LIMITED  TO  THE  NEW  YORK
 CITY  CHARTER,  THE FOLLOWING SHALL APPLY WITH RESPECT TO THE BUDGET AND
 ACCOUNTS OF THE CITY OF NEW YORK:
   1. ALL COSTS THAT WOULD BE CAPITAL COSTS IN ACCORDANCE WITH  GENERALLY
 ACCEPTED  ACCOUNTING PRINCIPLES, BUT FOR THE APPLICATION OF GOVERNMENTAL
 ACCOUNTING STANDARDS BOARD STATEMENT NUMBER FORTY-NINE, SHALL BE  DEEMED
 TO BE CAPITAL COSTS FOR PURPOSES OF THIS CHAPTER AND ANY OTHER PROVISION
 OF  STATE  OR  LOCAL LAW, INCLUDING BUT NOT LIMITED TO THE NEW YORK CITY
 CHARTER, RELEVANT TO THE TREATMENT OF SUCH COSTS; AND
   2. THE DETERMINATION AS TO THE EXISTENCE OF A DEFICIT PURSUANT TO  THE
 NEW  YORK  STATE FINANCIAL EMERGENCY ACT FOR THE CITY OF NEW YORK, WHILE
 SUCH ACT REMAINS IN EFFECT, AND ANY OTHER PROVISION OF  STATE  OR  LOCAL
 LAW,  INCLUDING  BUT  NOT LIMITED TO THE NEW YORK CITY CHARTER, SHALL BE
 MADE WITHOUT REGARD TO CHANGES IN RESTRICTED FUND BALANCES,  AS  DEFINED
 BY  THE  GOVERNMENTAL  ACCOUNTING STANDARDS BOARD, WHERE RESTRICTIONS IN
 RELATION TO SUCH FUND BALANCES ARE IMPOSED BY STATE OR  FEDERAL  LAW  OR
 REGULATION,  OR  OTHERWISE BY PRIVATE OR GOVERNMENTAL PARTIES OTHER THAN
 THE CITY OF NEW YORK, AND WITHOUT REGARD TO FUNDS  HELD  IN  THE  HEALTH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10407-01-9
              

 S. 4196                             2
 
 STABILIZATION FUND, THE SCHOOL CROSSING GUARDS HEALTH INSURANCE FUND AND
 THE MANAGEMENT BENEFITS FUND ESTABLISHED BY THE CITY OF NEW YORK.
   § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
 868 of the laws of 1975, constituting the New York state financial emer-
 gency  act  for the city of New York, as amended by section 1 of part PP
 of chapter 56 of the laws of 2010, is amended to read as follows:
   a. For its fiscal years ending June thirtieth, nineteen hundred seven-
 ty-nine through June thirtieth, nineteen hundred eighty-one, the  city's
 budget  covering  all  expenditures  other  than  capital items shall be
 prepared and balanced so that the results thereof would not show a defi-
 cit when reported in accordance with the accounting principles set forth
 in the state  comptroller's  uniform  system  of  accounts  for  munici-
 palities,  as  the same may be modified by the comptroller, in consulta-
 tion with the city comptroller, for application to the city; subject  to
 the provision of subdivision four of section three thousand thirty-eight
 of  the public authorities law with respect to contributions by the city
 or other public employer to any retirement system or  pension  fund  and
 subject to the provision of paragraph (c) of subdivision five of section
 three  thousand  thirty-eight of the public authorities law with respect
 to expense items included in the capital budget of  the  city.  For  the
 fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
 each fiscal year thereafter, the city's budget covering all expenditures
 other than capital items shall be prepared  and  balanced  so  that  the
 results  thereof  would  not  show a deficit when reported in accordance
 with generally accepted accounting principles and would  permit  compar-
 ison  of the budget with the report of actual financial results prepared
 in  accordance  with  generally  accepted  accounting  principles.  With
 respect  to  financial  plans  that include the fiscal years ending June
 thirtieth, nineteen hundred seventy-nine through June  thirtieth,  nine-
 teen  hundred  eighty-one,  the  city's budget covering all expenditures
 other than capital items shall be prepared in accordance with  generally
 accepted  accounting  principles and there shall be substantial progress
 in each such fiscal year towards achieving a city  budget  covering  all
 expenditures  other  than  capital  items the results of which would not
 show a deficit when  reported  in  accordance  with  generally  accepted
 accounting  principles.  The city shall eliminate expense items from its
 capital budget not later than the commencement of the fiscal year ending
 June thirtieth, nineteen hundred eighty-two. For the fiscal year  ending
 June  thirtieth,  nineteen hundred eighty-nine, and for each fiscal year
 thereafter, the budgets covering all  expenditures  other  than  capital
 items  of  each  of  the  covered  organizations  shall  be prepared and
 balanced so that the results thereof  would  not  show  a  deficit  when
 reported  in  accordance  with generally accepted accounting principles;
 and for each fiscal year  prior  thereto,  there  shall  be  substantial
 progress  towards  such  goal.    Notwithstanding  the foregoing and the
 provisions of any general or special state  law  or  local  law  to  the
 contrary, including but not limited to the New York city charter[,]: (I)
 all  costs  that  would  be  capital  costs in accordance with generally
 accepted accounting principles, but for the application of  governmental
 accounting  standards board statement number forty-nine, shall be deemed
 to be capital costs for purposes of this [chapter]  ACT  and  any  other
 provision  of  state  or local law, including but not limited to the New
 York city charter, relevant to the treatment of such costs; AND (II) THE
 DETERMINATION AS TO THE EXISTENCE OF A DEFICIT PURSUANT TO THIS ACT  AND
 ANY  OTHER PROVISION OF STATE OR LOCAL LAW, INCLUDING BUT NOT LIMITED TO
 THE NEW YORK CITY CHARTER, SHALL BE MADE WITHOUT REGARD  TO  CHANGES  IN

 S. 4196                             3
 
 RESTRICTED  FUND  BALANCES,  AS  DEFINED  BY THE GOVERNMENTAL ACCOUNTING
 STANDARDS BOARD, WHERE RESTRICTIONS IN RELATION TO  SUCH  FUND  BALANCES
 ARE  IMPOSED  BY  STATE  OR  FEDERAL  LAW OR REGULATION, OR OTHERWISE BY
 PRIVATE  OR  GOVERNMENTAL  PARTIES  OTHER THAN THE CITY OF NEW YORK, AND
 WITHOUT REGARD TO FUNDS HELD  IN  THE  HEALTH  STABILIZATION  FUND,  THE
 SCHOOL CROSSING GUARDS HEALTH INSURANCE FUND AND THE MANAGEMENT BENEFITS
 FUND ESTABLISHED BY THE CITY OF NEW YORK.
   § 3. This act shall take effect immediately.