S T A T E   O F   N E W   Y O R K
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                                  7444

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              April 6, 2009
                               ___________

Introduced by M. of A. MILLER, CALHOUN -- Multi-Sponsored by -- M. of A.
  OAKS -- read once and referred to the Committee on Ways and Means

AN ACT to amend the state finance law, in relation to the tax stabiliza-
  tion reserve fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 3 and 4 of section 92  of  the  state  finance
law,  as separately amended by chapters 405 and 957 of the laws of 1981,
are amended to read as follows:
  3. 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 tax stabilization
reserve fund all of such surplus moneys, up to and including  an  amount
equivalent  to  [two-tenths] FOUR-TENTHS of one per centum of such norm,
unless such transfer would increase such reserve fund to  an  amount  in
excess  of  [two]  FOUR  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] FOUR per centum
limitation.  Any balance of such surplus moneys, thereafter remaining in
the general fund, shall be retained in such fund and  be  available  for
the reduction of state taxes.
  4.  In  the  event  that  at the close of any fiscal year the receipts
derived from the taxes, fees and other  sources,  required  to  be  paid
during  such  fiscal  year into the general fund of the state shall fall
below the norm for such fiscal year, there shall be transferred from the
tax stabilization reserve fund to the general fund to  the  extent  that
there  are  sufficient  moneys in the tax stabilization reserve fund, an
amount equal to the difference between the norm and the amount  of  such
receipts. If such transfer reduces the tax stabilization reserve fund to
an  amount  less  than [two] FOUR per centum of the norm for such fiscal

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09668-01-9
              

A. 7444                             2

year, the amount so transferred shall be repaid in  cash  prior  to  the
computation and payment of any transfer to the fund pursuant to subdivi-
sion  three of this section in not less than three equal annual install-
ments within the period of six years or less next succeeding the date of
such  transfer;  provided,  however, that if any such annual installment
shall increase such reserve fund to an amount in excess  of  [two]  FOUR
per  centum  of the amount of the norm for the then current fiscal year,
such installment shall be limited to such amount as will  increase  such
reserve  fund  to  such  [two] FOUR per centum limitation and no further
repayment of the whole or any part of such transfer shall be required in
any subsequent fiscal year. Repayments to the tax stabilization  reserve
fund shall be stipulated in annual budget bills.
  S  2.  This act shall take effect 3 years after it shall have become a
law.