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

                                  1560

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. KOLB, REILICH, MONTESANO -- Multi-Sponsored by --
  M. of A. BARCLAY, BUTLER, CROUCH, DUPREY, FINCH, FITZPATRICK, GOODELL,
  HAWLEY,  JORDAN,  McDONOUGH,  McKEVITT, OAKS, RABBITT, RAIA, SALADINO,
  TEDISCO, TENNEY -- read once and referred to the Committee on Ways and
  Means

AN ACT to amend the state finance law and the education law in  relation
  to extending the state fiscal year; and to amend the state finance law
  in  relation  to  requiring  the  use of generally accepted accounting
  principles in the state fiscal plan

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

  Section  1.  Section 3 of the state finance law, as added by chapter 1
of the laws of 1943 and as separately renumbered by chapters 405 and 957
of the laws of 1981, is amended to read as follows:
  S 3. Fiscal year. 1. The  current  fiscal  year  of  the  state  which
commenced  with  the  first  day  of  [July, nineteen hundred forty-two]
APRIL, TWO THOUSAND THIRTEEN, is hereby [abridged]  EXTENDED  and  shall
end  with  the  [thirty-first] THIRTIETH day of [March, nineteen hundred
forty-three] APRIL, TWO THOUSAND FOURTEEN. For all purposes of determin-
ing annual increments of state employees pursuant to the education  law,
the  civil service law or other state law, and for all purposes whenever
by law some act is to be performed or time is  to  be  measured  by  the
fiscal  year  of  the  state,  the current fiscal year, as so [abridged]
EXTENDED, shall be deemed to be a full year unless the  context  clearly
requires a contrary construction.
  On  and  after  the first day of [April, nineteen hundred forty-three]
MAY, TWO THOUSAND FOURTEEN, the  fiscal  year  of  the  state,  for  the
purpose  of  budget, appropriations, receipts and disbursements of state
moneys and all other state affairs which  are  regulated  in  accordance
with or based on fiscal years, including the fiscal affairs of all state

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

                                                           LBD03181-01-3

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departments,  commissions,  boards,  agencies, offices and institutions,
shall begin with the first day of [April] MAY  and  end  with  the  next
following [thirty-first] THIRTIETH day of [March] APRIL.
  2.  All  books  and accounts in the offices of the comptroller and the
department of taxation and finance shall be kept by  fiscal  years.  All
annual  accounts  required  to be rendered to the comptroller or to such
department by any person shall be closed on the [thirty-first] THIRTIETH
day of [March] APRIL in each year, and be rendered as soon thereafter as
practicable, if no time is specially prescribed by law.
  3. Where any statute provides, in terms or effect, that any  inventory
or  account,  or  a  report relating in whole or in part to receipts and
disbursements of money, be made to the legislature or any state  officer
annually,  or for a year, by a department, commission, board, or officer
under the state government, such inventory or account, and  such  report
so  far  as  it relates to such receipts and disbursements, shall be for
the preceding  fiscal  year,  unless  the  calendar  year  be  expressly
mentioned.
  4.  Existing  provisions  of  other  laws describing or referring to a
fiscal year of the state as beginning July first and ending June thirti-
eth OR AS BEGINNING APRIL FIRST AND ENDING MARCH THIRTY-FIRST, or making
any requirement with respect to such fiscal year, or  referring  to  any
year so beginning and ending which applies to inventories or accounts in
state  matters, or to reports relating to state money or property, shall
be deemed modified by and be construed in connection with this  section,
and  be  deemed to refer to a fiscal or to another year or period begin-
ning and ending as [herein] prescribed IN  THIS  SECTION  for  a  fiscal
year.
  S 2. Subdivision 1 of section 2022 of the education law, as amended by
section  7  of  part  A of chapter 97 of the laws of 2011, is amended to
read as follows:
  1. Notwithstanding any law, rule or regulation to  the  contrary,  the
election  of trustees or members of the board of education, and the vote
upon the appropriation of the necessary  funds  to  meet  the  estimated
expenditures, in any common school district, union free school district,
central school district or central high school district shall be held at
the  annual  meeting  and  election  on the third Tuesday in [May] JUNE,
provided, however, that such election shall be held on the second  Tues-
day  in  [May] JUNE if the commissioner at the request of a local school
board certifies no later than  March  first  that  such  election  would
conflict with religious observances. The sole trustee, board of trustees
or  board  of  education of every common, union free, central or central
high school district and every city school district to which this  arti-
cle  applies  shall  hold  a budget hearing not less than seven nor more
than fourteen days prior to the annual meeting and election  or  special
district  meeting  at  which  a school budget vote will occur, and shall
prepare and present to the voters at  such  budget  hearing  a  proposed
school district budget for the ensuing school year.
  S 3. Subdivision 1 of section 2022 of the education law, as amended by
section  8  of  part  C of chapter 58 of the laws of 1998, is amended to
read as follows:
  1. Notwithstanding any law, rule or regulation to  the  contrary,  the
election  of trustees or members of the board of education, and the vote
upon the appropriation of the necessary  funds  to  meet  the  estimated
expenditures, in any common school district, union free school district,
central school district or central high school district shall be held at
the  annual  meeting  and  election  on the third Tuesday in [May] JUNE,

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provided, however, that such election shall be held on the second  Tues-
day  in  [May] JUNE if the commissioner at the request of a local school
board certifies no later than  March  first  that  such  election  would
conflict with religious observances. When such election or vote is taken
by  recording  the  ayes  and  noes of the qualified voters attending, a
majority of the qualified voters present and voting, by a hand or  voice
vote,  may  determine  to  take  up the question of voting the necessary
funds to meet the estimated expenditures for a specific item separately,
and the qualified voters present and voting may increase the  amount  of
any  estimated  expenditures  or  reduce  the same, except for teachers'
salaries, and the ordinary contingent expenses of the schools. The  sole
trustee,  board of trustees or board of education of every common, union
free, central or central high school  district  and  every  city  school
district  to  which this article applies shall hold a budget hearing not
less than seven nor more than fourteen days prior to the annual  meeting
and  election  or special district meeting at which a school budget vote
will occur, and shall prepare and present to the voters at  such  budget
hearing a proposed school district budget for the ensuing school year.
  S  4. Subdivision 2 of section 2601-a of the education law, as amended
by section 9 of part A of chapter 97 of the laws of 2011, is amended  to
read as follows:
  2.  The board of education shall conduct all annual and special school
district meetings for the purpose of adopting a school  district  budget
in  the  same  manner as a union free school district in accordance with
the provisions of article forty-one of this title, except  as  otherwise
provided  by  this section. The annual meeting and election of each such
city school district shall be held on the third Tuesday of [May] JUNE in
each year, provided, however that such annual meeting and election shall
be held on the second Tuesday in [May] JUNE if the commissioner  at  the
request of a local school board certifies no later than March first that
such  election would conflict with religious observances, and any school
budget revote shall be held on the date and in the same manner specified
in subdivision three of section two thousand seven of  this  title.  The
provisions  of  this article, and where applicable subdivisions nine and
nine-a of section twenty-five hundred two of this title,  governing  the
qualification  and  registration of voters, and procedures for the nomi-
nation and election of members of the board of education shall  continue
to  apply, and shall govern the qualification and registration of voters
and voting procedures with respect to the adoption of a school  district
budget.
  S  5. Subdivision 2 of section 2601-a of the education law, as amended
by section 6 of part M of chapter 57 of the laws of 2005, is amended  to
read as follows:
  2.  The board of education shall conduct all annual and special school
district meetings for the purpose of adopting a school  district  budget
in  the  same  manner as a union free school district in accordance with
the provisions of article forty-one of this title, except  as  otherwise
provided  by  this section. The annual meeting and election of each such
city school district shall be held on the third Tuesday of [May] JUNE in
each year, provided, however that such annual meeting and election shall
be held on the second Tuesday in [May] JUNE if the commissioner  at  the
request of a local school board certifies no later than March first that
such  election would conflict with religious observances, and any school
budget revote shall be held on the date and in the same manner specified
in subdivision three of section two thousand seven of  this  title.  The
provisions  of  this article, and where applicable subdivisions nine and

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nine-a of section twenty-five hundred two of this title,  governing  the
qualification  and  registration of voters, and procedures for the nomi-
nation and election of members of the board of education shall  continue
to  apply, and shall govern the qualification and registration of voters
and voting procedures with respect to the adoption of a school  district
budget.
  S 6. Section 2515 of the education law, as added by chapter 171 of the
laws of 1996, is amended to read as follows:
  S  2515.  Fiscal  year.  The fiscal year for  city school districts of
cities with less than one hundred twenty-five thousand inhabitants shall
be the period commencing with [July] AUGUST first and ending with  [June
thirtieth] JULY THIRTY-FIRST next following.
  S  7.  Subdivision 3 of section 2006 of the education law, as added by
section 4 of part M of chapter 57 of the laws of  2005,  is  amended  to
read as follows:
  3.  Whenever  the  voters shall have defeated the budget of the school
district at the annual meeting and election, the  trustees  may  call  a
special  district  meeting  for a school budget revote to be held on the
third Tuesday of [June] JULY, provided, however that such budget  revote
shall  be  held on the second Tuesday in [June] JULY if the commissioner
at the request of a local school board certifies  no  later  than  March
first  that  such  vote  would  conflict with religious observances. The
trustees shall give the notices required by subdivision one  of  section
two  thousand  three  of  this  part and this section by publishing such
notices once in each week within  the  two  weeks  next  preceding  such
special  meeting,  the  first  publication  to be at least fourteen days
before such meeting, with any  required  posting  to  be  fourteen  days
before the time of such meeting.
  S  8.  Paragraph  b  of subdivision 3 of section 2007 of the education
law, as amended by section 5 of part M of chapter  57  of  the  laws  of
2005, is amended to read as follows:
  b.  A  school  budget  revote  called  pursuant to paragraph a of this
subdivision shall be held on the third Tuesday of [June] JULY, provided,
however that such budget revote shall be held on the second  Tuesday  in
[June]  JULY  if the commissioner at the request of a local school board
certifies no later than March first that such vote would  conflict  with
religious observances.
  S  9.  The state finance law is amended by adding a new article 3-A to
read as follows:
                              ARTICLE III-A
      BALANCED BUDGETING ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
                               PRINCIPLES
SECTION 35. DEFINITION.
        36. COMPTROLLER ADVICE TO THE DIRECTOR OF BUDGET; LEGISLATURE.
        37. IDENTIFYING BUDGET GAPS; PRO RATA SPENDING REDUCTIONS.
  S 35. DEFINITION. AS  USED  IN  THIS  ARTICLE:    "GENERALLY  ACCEPTED
ACCOUNTING PRINCIPLES" MEANS THE SET OF ACCOUNTING PRINCIPLES FOR FINAN-
CIAL  REPORTING  ESTABLISHED BY THE FINANCIAL ACCOUNTING STANDARDS ADVI-
SORY BOARD AND GOVERNED BY THE AMERICAN INSTITUTE  OF  CERTIFIED  PUBLIC
ACCOUNTANTS FOR FEDERAL REPORTING ENTITIES.
  S  36. COMPTROLLER ADVICE TO THE DIRECTOR OF BUDGET; LEGISLATURE. UPON
RECEIPT OF A FINANCIAL PLAN AFTER JANUARY FIRST, TWO THOUSAND  FOURTEEN,
THE  STATE  COMPTROLLER  SHALL, WITHIN SEVEN DAYS, PROVIDE ADVICE TO THE
DIRECTOR OF THE BUDGET, THE CHAIR OF THE SENATE FINANCE  COMMITTEE,  THE
CHAIR  OF  THE  ASSEMBLY WAYS AND MEANS COMMITTEE, THE  RANKING MINORITY
MEMBER OF THE SENATE FINANCE COMMITTEE, AND THE RANKING MINORITY  MEMBER

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OF  THE ASSEMBLY WAYS AND MEANS COMMITTEE OR THEIR DESIGNEES, CONCERNING
PRESENT "CASH-BASIS" BALANCED BUDGET ISSUES  AND  INCREMENTAL  STEPS  IN
MOVEMENT  TOWARD  ACHIEVING  A  BALANCED  BUDGET  ACCORDING TO GENERALLY
ACCEPTED  ACCOUNTING PRINCIPLES BY THE THIRTIETH DAY OF APRIL, TWO THOU-
SAND FIFTEEN.
  S 37. IDENTIFYING BUDGET GAPS; PRO RATA SPENDING REDUCTIONS.  1.  UPON
RECEIPT  OF  EACH  FINANCIAL  PLAN  AND  QUARTERLY FINANCIAL PLAN UPDATE
DURING THE FIRST OR THIRD QUARTER OF A STATE FISCAL YEAR  AFTER  JANUARY
FIRST,  TWO  THOUSAND FIFTEEN, THE STATE COMPTROLLER SHALL, WITHIN SEVEN
DAYS, DETERMINE IF THE SUBMITTED FINANCIAL PLAN IS BALANCED ACCORDING TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
  2. IF THE STATE COMPTROLLER DETERMINES THAT THE CURRENT  YEAR  PORTION
OF  A FINANCIAL PLAN OR QUARTERLY FINANCIAL PLAN UPDATE DURING THE FIRST
OR THIRD QUARTER OF A STATE FISCAL YEAR IDENTIFIES  A  BUDGET  GAP,  THE
STATE  COMPTROLLER SHALL ADVISE THE DIRECTOR OF THE BUDGET, THE CHAIR OF
THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS  AND  MEANS
COMMITTEE,  THE RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE,
AND THE RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE
OR THEIR DESIGNEES OF HIS  OR  HER  FINDINGS  AND  MAKE  RECOMMENDATIONS
CONCERNING ACTIONS TO CLOSE SUCH BUDGET GAPS.
  3.  IF  WITHIN  THIRTY  DAYS,  THE GOVERNOR AND THE LEGISLATURE DO NOT
ENACT MEASURES TO CLOSE SUCH GAPS, THE  GOVERNOR  WILL  BE  GRANTED  THE
AUTHORITY  TO  MAKE  PRO  RATA  SPENDING  REDUCTIONS TO CLOSE SUCH GAPS,
EXCEPTING APPROPRIATIONS FOR THE OPERATION OF THE LEGISLATIVE AND  JUDI-
CIAL BRANCHES OF STATE GOVERNMENT.
  S 10. Subdivision 1 of section 22 of the state finance law, as amended
by chapter 762 of the laws of 1992, is amended and a new subdivision 1-d
is added to read as follows:
  1.  include  (A)  BOTH THE CURRENT YEAR PLAN AND A FIVE YEAR FINANCIAL
PLAN THAT EMPLOYS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AS SUCH TERM
IS DEFINED IN SECTION THIRTY-FIVE OF THIS  CHAPTER,  IDENTIFIES  CURRENT
AND FUTURE BUDGET GAPS, AND PROPOSES ACTIONS TO CLOSE GAPS; (B) a summa-
ry financial plan showing for each of the governmental fund types: [(a)]
(I)  the  disbursements  estimated  to  be  made before the close of the
current fiscal year and  the  moneys  estimated  to  be  available  from
receipts  and  other  sources therefor; and [(b)] (II) the disbursements
proposed to be made during the ensuing fiscal year, and the moneys esti-
mated to be available from receipts and other sources therefor inclusive
of any receipts which are expected to result from  proposed  legislation
which  he  OR SHE deems necessary to provide receipts sufficient to meet
such proposed disbursements. For the purposes of this summary  financial
plan,  disbursements shall be presented by the following purposes: state
purposes, local assistance, capital projects, debt service, and  general
state  charges;  receipts  shall be presented for each fund type by each
revenue source which accounts for at least one per centum  of  all  such
receipts  and  otherwise  by categories of revenue sources; receipts and
disbursements for special revenue funds shall  be  presented  separately
for federal funds and all other special revenue funds. Whenever receipts
or disbursements are proposed to be moved to a different fund type, each
significant amount so moved shall be identified.
  1-D.  PROVIDE  THAT QUARTERLY UPDATES TO BOTH THE CURRENT YEAR AND THE
FIVE YEAR FINANCIAL PLANS REQUIRED BY PARAGRAPH (A) OF  SUBDIVISION  ONE
OF  THIS  SECTION SHALL BE SUBMITTED TO THE STATE COMPTROLLER, THE CHAIR
OF THE SENATE FINANCE COMMITTEE, THE CHAIR  OF  THE  ASSEMBLY  WAYS  AND
MEANS  COMMITTEE,  THE  RANKING  MINORITY  MEMBER  OF THE SENATE FINANCE
COMMITTEE, AND THE RANKING MINORITY MEMBER  OF  THE  ASSEMBLY  WAYS  AND

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MEANS  COMMITTEE OR THEIR DESIGNEES, WITHIN TEN DAYS AFTER THE COMMENCE-
MENT OF EACH QUARTER OF THE STATE FISCAL YEAR.
  S  11.  Separability.  If any clause, sentence, paragraph, section, or
part of this act shall be adjudged by any court of  competent  jurisdic-
tion to be invalid, such judgment shall not affect, impair or invalidate
the  remainder  thereof,  but  shall be confined in its operation to the
clause, sentence, paragraph, section, or part thereof  involved  in  the
controversy in which such judgment shall have been rendered.
  S 12. This act shall take effect immediately, provided that the amend-
ments  to  subdivision  1  of  section 2022 of the education law made by
section two of this act shall be subject to the expiration and reversion
of such section pursuant to chapter 97 of the laws of 2011  as  amended,
when  upon  such  date the provisions of section three of this act shall
take effect; and provided further that the amendments to  subdivision  2
of  section 2601-a of the education law made by section four of this act
shall be subject to the expiration and reversion of such section  pursu-
ant  to  chapter  97 of the laws of 2011 as amended, when upon such date
the provisions of section five of this act shall take effect.