S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7455
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 10, 2021
                                ___________
 
 Introduced  by M. of A. RA -- read once and referred to the Committee on
   Election Law
 
 AN ACT
   to amend the election law and the state finance law,  in  relation  to
 requiring  a  proposition  authorizing  the  creation of a state debt to
 contain an estimate of the debt service payable thereon,  and  to  amend
 the state finance law, in relation to requiring publication of an expla-
 nation of the proposition authorizing the creation of state debt, depos-
 its  to  the tax stabilization reserve fund, and using surplus moneys to
 reduce outstanding state funded debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The election law is amended by adding a new section 7-112
 to read as follows:
   § 7-112. BALLOTS; FORM FOR PROPOSITION; ADDITIONAL REQUIREMENTS.  EACH
 DULY CERTIFIED PROPOSITION CONTAINED ON THE BALLOT AND SUBMITTED TO  THE
 VOTERS  OF  THE  STATE  WHICH  PROVIDES FOR THE CREATION OF A STATE DEBT
 SHALL CONTAIN AN ESTIMATE OF THE ANTICIPATED NUMBER OF YEARS OVER  WHICH
 SUCH DEBT SHALL BE AMORTIZED AND THE TOTAL EXPECTED DEBT SERVICE PAYABLE
 ON  THE  PRINCIPAL  AMOUNT  OF  SUCH  BONDS UNTIL THEIR RETIREMENT. SUCH
 INFORMATION SHALL BE PRINTED IN THE LARGEST TYPE WHICH IS PRACTICABLE TO
 USE IN THE SPACE PROVIDED FOR THE PROPOSITION. SUCH INFORMATION SHALL BE
 PROVIDED TO THE STATE BOARD OF ELECTIONS AND THE SECRETARY OF  STATE  BY
 THE STATE COMPTROLLER NOT LATER THAN SEVEN DAYS AFTER THE PASSAGE OF THE
 LAW AUTHORIZING SUCH PROPOSITION.
   § 2. Subdivision 2 of section 4-116 of the election law, as amended by
 chapter 60 of the laws of 1993, is amended to read as follows:
   2. The state board of elections shall publish once in the week preced-
 ing  any  election  at which proposed constitutional amendments or other
 propositions or questions are to be submitted to the voters of the state
 an abstract of such amendment or question, INCLUDING THE ESTIMATE OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03840-01-1

 A. 7455                             2
 
 AMORTIZATION PERIOD AND THE TOTAL ANTICIPATED DEBT  SERVICE  PAYABLE  ON
 THE  PRINCIPAL  WHERE THE PROPOSITION AUTHORIZES THE CREATION OF A STATE
 DEBT, a brief statement of  the  law  or  proceedings  authorizing  such
 submission,  a  statement that such submission will be made and the form
 in which it is to be submitted.
   § 3. The state finance law is amended by adding a  new  section  6  to
 read as follows:
   §  6.  STATE  PUBLICATION CONCERNING PROPOSITION. ANY REPORT, PUBLICA-
 TION, PAMPHLET OR OTHER WRITTEN DOCUMENT PREPARED BY A STATE DEPARTMENT,
 AGENCY, AUTHORITY OR OTHER COMPONENT OR DIVISION  OF  STATE  GOVERNMENT,
 INTENDED  FOR  DISTRIBUTION  TO THE PUBLIC, WHICH IS INTENDED TO PROMOTE
 AWARENESS OF OR EXPLAIN THE PROVISIONS CONTAINED IN, OR INCIDENTAL TO, A
 DULY CERTIFIED PROPOSITION TO BE CONTAINED  ON  THE  BALLOT  AND  TO  BE
 SUBMITTED  TO THE VOTERS OF THE STATE WHICH PROPOSITION PROVIDES FOR THE
 CREATION OF A STATE DEBT SHALL CONTAIN THEREIN AN ESTIMATE OF THE ANTIC-
 IPATED NUMBER OF YEARS OVER WHICH SUCH DEBT SHALL BE AMORTIZED  AND  THE
 TOTAL  EXPECTED  DEBT  SERVICE  PAYABLE  ON THE PRINCIPAL AMOUNT OF SUCH
 BONDS UNTIL THEIR RETIREMENT. SUCH INFORMATION SHALL BE PRINTED  IN  THE
 LARGEST TYPE WHICH IS PRACTICABLE TO USE IN SUCH DOCUMENT.
   §  4.  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] ONE-HALF of one  per  centum  of  such  norm,
 unless  such  transfer  would increase such reserve fund to an amount in
 excess of [two] FIVE 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] FIVE 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] FIVE per centum of the norm for such fiscal
 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] FIVE
 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] FIVE 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.

 A. 7455                             3
 
   §  5. The state finance law is amended by adding a new section 65-a to
 read as follows:
   § 65-A. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED DEBT.
 AT  THE  CLOSE  OF  EACH  FISCAL  YEAR, AT LEAST TEN PERCENT OF ANY CASH
 SURPLUS REMAINING IN THE GENERAL FUND AFTER  THE  TRANSFER  PURSUANT  TO
 SECTION  NINETY-TWO  OF  THIS  CHAPTER  SHALL BE TRANSFERRED TO THE DEBT
 REDUCTION RESERVE FUND ESTABLISHED BY SECTION NINETY-SEVEN-CCC  OF  THIS
 CHAPTER.
   § 6. Section 97-rrr of the state finance law, as amended by section 45
 of  part  H of chapter 56 of the laws of 2000, 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.]  97-CCC.  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 fund.]
   2. Such fund shall consist of all monies credited or transferred ther-
 eto from the general fund or from any other fund or sources pursuant  to
 law.
   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:
   (a) for the payment of principal, interest, and  related  expenses  on
 general obligation bonds, lease purchase payments, or special contractu-
 al  obligation payments, or] ONLY for the [purposes] PURPOSE of retiring
 or defeasing bonds OR NOTES previously  issued,  including  any  accrued
 interest  thereon, 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] STATE FUNDED
 DEBT.
   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] THIRTIETH, TWO THOUSAND TWENTY-ONE.
   § 7. This act shall take effect immediately;  provided,  however  that
 provisions  of  section  four  of this act shall take effect three years
 after it shall have become a law.