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SECTION 4
Payments, transfers and deposits
State Finance (STF) CHAPTER 56, ARTICLE 2
§ 4. Payments, transfers and deposits. 1. Notwithstanding the
provisions of any other section of law to the contrary, no money shall
be paid from any fund under the management of the state, or any agency
or officer thereof except in pursuance of an appropriation by law.

2. If, at any time, the legislature shall fail to make an
appropriation for a payment from a fund where the failure to make such
payment would violate a covenant contained in a statute or resolution
which was in force prior to the effective date of this section, between
the state and holders of any obligations, pursuant to which the state
had agreed that it would not limit or alter the rights vested in the
issuers of such obligations to fulfill any and all agreements with such
holders or that it would not in any way impair the rights and remedies
of such holders, such payment shall nevertheless be made from such fund
to the extent necessary to comply with the rights of the issuer of such
obligations and of the holders thereof.

3. If, at any time, the legislature shall fail to make an
appropriation for the payment of the interest upon and installments of
principal of all debts created on behalf of the state as the same shall
fall due, and for the contribution to all of the sinking funds
heretofore created by law, the comptroller shall set apart from the
first revenues thereafter received, applicable to the general fund of
the state, a sum sufficient to pay such interest, installments of
principal, or contributions to such sinking fund, as the case may be,
and shall so apply the moneys thus set apart.

4. Money which has not been given, granted, or bequeathed to the
state, or any agency thereof conditionally or otherwise, and the
ownership and equitable title of which belongs to an individual or
organization other than the state, but which is being held by any agency
or officer of the state pending transfer of such money to such
individual or organization in accordance with the terms and conditions
pursuant to which it was placed in the custody of such agency or
officer, may be transferred to such individual or organization by such
agency or officer without an appropriation by law provided that such
transfers are made in accordance with such terms and conditions.

5. No money or other financial resources shall be transferred or
temporarily loaned from one fund to another without specific statutory
authorization for such transfer or temporary loan, except that money or
other financial resources of a fund may be temporarily loaned to the
general fund during the state fiscal year provided that such loan shall
be repaid in full no later than (a) four months after it was made or (b)
by the end of the same fiscal year in which it was made, whichever
period is shorter, so that an accurate accounting and reporting of the
balance of financial resources in each fund may be made. The comptroller
is hereby authorized to temporarily loan money from the general fund or
any other fund to the fund/accounts that are authorized to receive a
loan. Such loans shall be limited to the amounts immediately required to
meet disbursements, made in pursuance of an appropriation by law and
authorized by a certificate of approval issued by the director of the
budget with copies thereof filed with the comptroller and the chair of
the senate finance committee and the chair of the assembly ways and
means committee. The director of the budget shall not issue such a
certificate unless he or she shall have determined that the amounts to
be so loaned are receivable on account. When making loans, the
comptroller shall establish appropriate accounts and if the loan is not
repaid by the end of the month, provide on or before the fifteenth day
of the following month to the director of the budget, the chair of the
senate finance committee and the chair of the assembly ways and means
committee, an accurate accounting and report of the financial resources
of each such fund at the end of such month. Within ten days of the
receipt of such accounting and reporting, the director of the budget
shall provide the comptroller and the chair of the senate finance
committee and the chair of the assembly ways and means committee an
expected schedule of repayment by fund and by source for each
outstanding loan. Repayment shall be made by the comptroller from the
first cash receipt of this fund.

* 6. Notwithstanding any law to the contrary, at the beginning of the
state fiscal year, the state comptroller is hereby authorized and
directed to receive for deposit to the credit of a fund and/or an
account such monies as are identified by the director of the budget as
having been intended for such deposit to support disbursements from such
fund and/or account made in pursuance of an appropriation by law. As
soon as practicable upon enactment of the budget, the director of the
budget shall, but not less than three days following preliminary
submission to the chairs of the senate finance committee and the
assembly ways and means committee, file with the state comptroller an
identification of specific monies to be so deposited. Any subsequent
change regarding the monies to be so deposited shall be filed by the
director of the budget, as soon as practicable, but not less than three
days following preliminary submission to the chairs of the senate
finance committee and the assembly ways and means committee.

All monies identified by the director of the budget to be deposited to
the credit of a fund and/or account shall be consistent with the intent
of the budget for the then current state fiscal year as enacted by the
legislature.

The provisions of this subdivision shall expire on March thirty-first,
two thousand twenty-four.

* NB Expires March 31, 2024

7. Notwithstanding subdivision one of this section, the taxes,
interest and penalties collected or received by the commissioner of
taxation and finance under sections four hundred seventy-one and four
hundred seventy-one-a of the tax law, and the revenue (including taxes,
interest and penalties) from the imposition of cigarette taxes by a
local government paid to the comptroller of the state of New York by
such local government, which are required to be deposited to the credit
of the tobacco control and insurance initiatives pool established by
section twenty-eight hundred seven-v of the public health law and moneys
received in the tobacco settlement fund established by section
ninety-two-x of this chapter shall be made pursuant to statute but
without an appropriation.

8. For the purposes of this section, agency shall mean any department,
agency, board, bureau, commission, division, council or office of the
state except as otherwise provided in section eighty-eight of the
workers' compensation law.

9. Notwithstanding subdivision one of this section, the moneys
transferred to the universal prekindergarten reserve fund pursuant to
paragraph f of subdivision ten of section thirty-six hundred two-e of
the education law shall be paid pursuant to statute but without an
appropriation.

* 10. Notwithstanding subdivision one of this section, the moneys
deposited in the health insurance fund authorized in section one hundred
sixty-seven of the civil service law shall be paid pursuant to statute
but without an appropriation.

* NB Expired March 31, 2006

11. (a) Notwithstanding any other law to the contrary and except as
provided by paragraph (b) of this subdivision, no state agency or a
state official or employee acting in their official capacity, may pay
out or otherwise disburse funds obtained as the result of a judgment,
stipulation, decree, agreement to settle, assurance of discontinuance,
or other legal instrument resolving any claim or cause of action,
whether filed or unfiled, actual or potential, and whether arising under
common law, equity, or any provision of law, except pursuant to an
appropriation. Such funds shall not be retained by any state official,
employee, or agency in any fund held in the sole custody of a state
agency for a period of more than thirty days but shall, consistent with
section seven of article seven of the state constitution be deposited in
the state treasury, or fund under its management as may be directed by
statute or as otherwise directed by the comptroller with the concurrence
of the director of the budget.

(b) Paragraph (a) of this subdivision shall not apply to (1) moneys to
be distributed to the federal government, to a local government, or to
any holder of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2) moneys to be
distributed solely or exclusively as a payment of damages or restitution
to individuals or entities that were specifically injured or harmed by
the defendant's or settling party's conduct and that are identified in,
or can be identified by the terms of, the relevant judgment, agreement
to settle, assurance of discontinuance, or relevant instrument resolving
the claim or cause of action; (3) moneys recovered or obtained by a
state agency or a state official or employee acting in their official
capacity where application of paragraph (a) of this subdivision is
prohibited by federal law, rule, or regulation, or would result in the
reduction or loss of federal funds or eligibility for federal benefits
pursuant to federal law, rule, or regulation; (4) moneys recovered or
obtained by or on behalf of a public authority, a public benefit
corporation, the department of taxation and finance, the workers'
compensation board, the New York state higher education services
corporation, the tobacco settlement financing corporation, a state or
local retirement system, an employee health benefit program administered
by the New York state department of civil service, the Title IV-D child
support fund, the lottery prize fund, the abandoned property fund, or an
endowment of the state university of New York or any unit thereof or any
state agency, provided that all of the moneys received or recovered are
immediately transferred to the relevant public authority, public benefit
corporation, department, fund, program, or endowment; (5) moneys to be
refunded to an individual or entity as (i) an overpayment of a tax,
fine, penalty, fee, insurance premium, loan payment, charge or
surcharge; (ii) a return of seized assets, or (iii) a payment made in
error; (6) moneys to be used to prevent, abate, restore, mitigate, or
control any identifiable instance of prior or ongoing water, land or air
pollution; and (7) moneys deposited to the opioid settlement fund
established in section ninety-nine-nn of this chapter.

12. Notwithstanding subdivision one of this section and any other law
to the contrary, the revenue (including taxes, interest and penalties)
from the metropolitan commuter transportation mobility tax imposed
pursuant to article twenty-three of the tax law which are paid in
accordance with subsection (b) of section eight hundred five of the tax
law into the metropolitan transportation authority finance fund
established by section twelve hundred seventy-h of the public
authorities law shall be made pursuant to statute but without an
appropriation.

13. Notwithstanding subdivision one of this section and any other law
to the contrary, the revenue (including fees, taxes, interest and
penalties) from the metropolitan commuter transportation district
supplemental fees and taxes imposed pursuant to paragraph (b-1) of
subdivision two of section five hundred three of the vehicle and traffic
law, paragraph (c-3) of subdivision two of section five hundred three of
the vehicle and traffic law, article seventeen-C of the vehicle and
traffic law, article twenty-nine-A of the tax law and section eleven
hundred sixty-six-a of the tax law which are paid in accordance with
subparagraph (ii) of paragraph (b-1) of subdivision two of section five
hundred three of the vehicle and traffic law, subparagraph (ii) of
paragraph (c-3) of subdivision two of section five hundred three of the
vehicle and traffic law, section twelve hundred eighty-eight of the tax
law and section eleven hundred sixty-seven of the tax law into the
corporate transportation account of the metropolitan transportation
authority special assistance fund established by section twelve hundred
seventy-a of the public authorities law shall be made pursuant to
statute but without an appropriation.