S T A T E   O F   N E W   Y O R K
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                                  5666

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 3, 2015
                               ___________

Introduced by M. of A. KOLB, MONTESANO -- Multi-Sponsored by -- M. of A.
  BARCLAY,  BUTLER, CROUCH, DUPREY, FINCH, FITZPATRICK, GOODELL, HAWLEY,
  McDONOUGH, McKEVITT, OAKS, 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  FOURTEEN, is hereby [abridged] EXTENDED and shall
end with the [thirty-first] THIRTIETH day of  [March,  nineteen  hundred
forty-three]  APRIL, TWO THOUSAND FIFTEEN. 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 FIFTEEN, 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 depart-
ments, commissions, boards, agencies, offices  and  institutions,  shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03503-02-5

              

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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,
provided, however, that such election shall be held on the second  Tues-

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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
nine-a of section twenty-five hundred two of this title,  governing  the

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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 FIFTEEN,
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
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE OR THEIR DESIGNEES,  CONCERNING

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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.