S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2490
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M.  of  A. J. M. GIGLIO -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the state finance law, in relation to the debt reduction
   reserve fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  97-rrr  of  the state finance law, as amended by
 section 45 of part H of chapter 56 of the laws of 2000 and subdivision 4
 as added by section 22-b of part XXX of chapter 59 of the laws of  2017,
 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] DEBT SERVICE fund,
 PROVIDED, HOWEVER, ANY BALANCE OF MONEYS  IN  SUCH  FUND  SHALL  NOT  BE
 TRANSFERRED  TO THE GENERAL FUND PURSUANT TO SUBDIVISION FOUR OF SECTION
 SEVENTY-TWO OF THIS ARTICLE.
   2. [Such fund shall consist of  all  monies  credited  or  transferred
 thereto from the general fund or from any other fund or sources pursuant
 to law.] AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS
 REMAINING  IN  THE  GENERAL  FUND AFTER THE TRANSFER PURSUANT TO SECTION
 NINETY-TWO OF THIS ARTICLE SHALL BE TRANSFERRED FROM OR RETAINED IN SUCH
 FUND AS PROVIDED IN THIS SUBDIVISION. THE PORTION TO BE  TRANSFERRED  TO
 THE  DEBT  REDUCTION RESERVE FUND SHALL BE EQUAL TO FIVE PERCENT OF SUCH
 SURPLUS FOR SUCH FISCAL YEAR.   FOR THE PURPOSES  OF  THIS  SUBDIVISION,
 CASH  SURPLUS  SHALL  BE  DEFINED  AS  THE  AMOUNT BY WHICH GENERAL FUND
 RECEIPTS IN A FISCAL YEAR  EXCEED  GENERAL  FUND  EXPENDITURES  IN  SUCH
 FISCAL YEAR.
   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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01679-01-3
              

 A. 2490                             2

   (a)  for  the  payment of principal, interest, and related expenses on
 general obligation bonds, lease purchase payments, or special contractu-
 al obligation payments, or for the] purposes of  retiring  or  defeasing
 bonds  OR NOTES previously issued, including any accrued interest there-
 on, 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].
   4.  Any  amounts  disbursed  from such fund shall be excluded from the
 calculation of annual spending growth in  state  operating  funds  until
 June 30, 2019.
   § 2. This act shall take effect immediately.