Assembly Bill A10594

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10594
 
                           I N  A S S E M B L Y
 
                               June 20, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rajkumar) --
   read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the state finance law, in relation to enacting the rainy
   day  act;  to  increase  the  maximum balance of the rainy day reserve
   fund; and to repeal certain provisions of such law relating to the tax
   stabilization reserve fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "rainy day act".
   § 2.  All funds currently held in or due to be deposited into the  tax
 stabilization  reserve  fund pursuant to section 92 of the state finance
 law as of the effective date of this section shall be transferred to and
 deposited into the rainy day reserve fund established in  section  92-cc
 of the state finance law.
   § 3. Section 92 of the state finance law is REPEALED.
   § 4. Section 92-cc of the state finance law is amended by adding a new
 subdivision 6 to read as follows:
   6.  A. THE AGGREGATE AMOUNT DISBURSED FROM THE GENERAL FUND DURING THE
 FISCAL YEAR SHALL CONSTITUTE THE NORM FOR SUCH FISCAL YEAR OF THE AMOUNT
 OF REVENUES FROM SUCH TAXES,  FEES  AND  OTHER  SOURCES,  AND  THE  TERM
 "NORM," AS USED IN THIS SECTION, SHALL MEAN SUCH AGGREGATE AMOUNT.
   B.  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  RAINY  DAY  RESERVE
 FUND  ALL  OF  SUCH SURPLUS MONEYS, UP TO AND INCLUDING AN AMOUNT EQUIV-
 ALENT TO TWO-TENTHS OF ONE PER CENTUM OF SUCH NORM, UNLESS SUCH TRANSFER
 WOULD INCREASE SUCH RESERVE FUND TO AN  AMOUNT  IN  EXCESS  OF  TWO  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 PER CENTUM LIMITATION.
   §  5.  Subdivision  2  of  section  92-cc of the state finance law, as
 amended by section 25 of part PP of chapter 56 of the laws of  2023,  is
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14073-02-4
 A. 10594                            2
 
 amended and three new subdivisions 2-a, 2-b and 2-c are added to read as
 follows:
   2.  Such fund shall have a maximum balance not to exceed [twenty-five]
 THIRTY per centum of the aggregate amount projected to be disbursed from
 the general fund during the then-current fiscal year. At the request  of
 the  director of the budget, the state comptroller shall transfer monies
 to the rainy day reserve fund up to and including an  amount  equivalent
 to  [fifteen]  TWENTY per centum of the aggregate amount projected to be
 disbursed from the general fund during  the  then-current  fiscal  year,
 unless  such  transfer  would  increase the rainy day reserve fund to an
 amount in excess of [twenty-five] THIRTY per  centum  of  the  aggregate
 amount  projected to be disbursed from the general fund during the then-
 current fiscal year, in which event such transfer shall  be  limited  to
 such  amount  as will increase the rainy day reserve fund to such [twen-
 ty-five] THIRTY per centum limitation.
   2-A. THE STATE COMPTROLLER SHALL ANNUALLY DEPOSIT INTO THE  RAINY  DAY
 RESERVE  FUND  AN AMOUNT EQUAL TO TWO-THIRDS OF COMMON RATE AND BASE TAX
 RECEIPTS GROWTH IN EXCESS OF TWO PERCENT.  "COMMON  RATE  AND  BASE  TAX
 RECEIPTS"  SHALL MEAN REVENUE CALCULATED PRESUMING THERE IS NO CHANGE IN
 TAX LAWS OR OTHER TAX-RELATED POLICIES.
   2-B. NO LESS THAN TEN PER CENTUM  OF  ANY  NONRECURRING  EXTRAORDINARY
 MONETARY  SETTLEMENTS  OF TEN MILLION DOLLARS OR MORE SHALL BE DEPOSITED
 INTO THE RAINY DAY FUND, UNLESS OTHERWISE PROHIBITED UNDER THE TERMS  OF
 THE RECEIPT.
   2-C.  IF  MANDATORY  TRANSFERS  INTO  THE  RAINY  DAY  RESERVE FUND AS
 PROVIDED BY THIS SECTION EXCEED THIRTY PER  CENTUM   OF   THE  AGGREGATE
 AMOUNT PROJECTED TO BE DISBURSED FROM THE GENERAL FUND DURING THE  THEN-
 CURRENT FISCAL YEAR, SUCH EXCESS FUNDS SHALL BE DEPOSITED INTO THE RETI-
 REE  HEALTH BENEFITS TRUST FUND ESTABLISHED BY SECTION NINETY-NINE-AA OF
 THIS ARTICLE.
   § 6. There shall be no fund established or maintained for the  purpose
 of  transfers  to  the  state  operating  funds in the event of economic
 uncertainties, unless such fund is created pursuant to  an  act  of  the
 legislature  in the consolidated laws of the state. Any amounts existing
 in any fund currently maintained for such purpose shall  be  transferred
 to  the rainy day reserve fund established by section 92-cc of the state
 finance law.
   § 7. This act shall take effect on the first of April next  succeeding
 the date upon which it shall have become a law.