§ 92-cc. Rainy day reserve fund. 1. There is hereby established in the
state treasury a fund to be known as the "rainy day reserve fund". Such
fund shall consist of moneys deposited therein and monies shall be
withdrawn from such fund only for the purposes as provided therein.

2. Such fund shall have a maximum balance not to exceed twenty-five
per centum of the aggregate amount projected to be disbursed from the
general fund during the then-current fiscal year. At the request of the
director of the budget, the state comptroller shall transfer monies to
the rainy day reserve fund up to and including an amount equivalent to
fifteen per centum of the aggregate amount projected to be disbursed
from the general fund during the then-current fiscal year, unless such
transfer would increase the rainy day reserve fund to an amount in
excess of twenty-five per centum of the aggregate amount projected to be
disbursed from the general fund during the then-current fiscal year, in
which event such transfer shall be limited to such amount as will
increase the rainy day reserve fund to such twenty-five per centum
limitation.

3. a. The amounts available in such reserve may be used if the
following conditions are met:

(i) Economic downturn. The commissioner of labor shall calculate and
publish, on or before the fifteenth day of each month, a composite index
of business cycle indicators. Such index shall be calculated using
monthly data on New York state private sector employment, average weekly
hours of manufacturing workers, and the unemployment rate prepared by
the department of labor or its successor agency, and total sales tax
collections adjusted for inflation, prepared by the department of
taxation and finance or its successor agency. Such index shall be
adjusted for seasonal variations in accordance with the procedures
issued by the United States Census Bureau or its successor agency. If
the composite index declines for five consecutive months, the
commissioner of labor shall notify the governor, the speaker of the
assembly, the temporary president of the senate, and the minority
leaders of the assembly and the senate. Upon such notification, the
director of the budget may authorize and direct the comptroller to
transfer from the rainy day reserve fund to the general fund such
amounts as the director of the budget deems necessary to meet the
requirements of the state financial plan. The authority to transfer
funds under the provisions of this subdivision shall lapse when the
composite index shall have increased for five consecutive months or
twelve months from the original notification of the commissioner of
labor, whichever occurs earlier. Provided, however, that for every
additional and consecutive monthly decline succeeding the five month
decline so noted by the commissioner of labor, the twelve month lapse
date shall be extended by one additional month; or

(ii) Catastrophic events. In the event of a need to repel invasion,
suppress insurrection, defend the state in war, or to respond to any
other emergency resulting from a disaster, including but not limited to,
a disaster caused by an act of terrorism, the director of the budget may
authorize and direct the comptroller to transfer from the rainy day
reserve fund to the general fund such amounts as the director of the
budget deems necessary to meet the requirements of the state financial
plan.

b. Prior to authorizing any transfer from the rainy day reserve fund
pursuant to the provisions of this section, the director of the budget
shall notify the speaker of the assembly, the temporary president of the
senate, and the minority leaders of the assembly and the senate. Such
letter shall specify the reasons for the transfer and the amount
thereof. Any amounts transferred from the rainy day reserve fund to the
general fund shall be subject to all the repayment provisions of this
section.

4. Any transfer authorized in subdivision three of this section shall
be repaid in cash within a period of three years after the date that
such authority to transfer funds under the provisions of this
subdivision lapses, provided however that any transfer authorized as a
result of a catastrophic event shall be subject to repayment provisions
to be proposed by the governor and implemented by appropriation or
transfer of funds.

5. Moneys in the rainy day reserve fund may be temporarily loaned to
the general fund during any fiscal year in anticipation of the receipt
of revenues from taxes, fees and other sources required to be paid into
the general fund during such fiscal year. Moneys so temporarily loaned
shall be repaid in cash during the same fiscal year.