RETRIEVE BILL Bud Reform Stat Bill - 001


     Legislative Bill Drafting Commission
                  12215-02-0

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                SENATE
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     IN SENATE--Introduced by Sen

     --read twice and ordered printed,
     and when printed to be committed
     to the Committee on

               -------- A.
               ASSEMBLY
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     IN ASSEMBLY--Introduced by M. of A.

     --read  once  and  referred  to  the
     Committee on

     *LEGILA*
     (Relates to  legislative  action  on
     the budget)

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     St. Fin. legis action on budget

                    AN ACT

     to  amend  the state finance law and
     the legislative law, in relation  to
     legislative action on the budget

       The  People  of  the  State of New
     York,  represented  in  Senate   and
     Assembly, do enact as follows:

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  1    Section  1.  Subdivision  6 of section 23 of the state finance law, as

  2  added by chapter 309 of the laws of 1996, is amended to read as follows:

  3    6. Consensus economic and revenue forecasting conference; report.  (a)

  4  In  the  month  of  March February  in each year, prior to the report

  5  required by paragraph (b) of this subdivision, the chairperson and rank-

  6  ing minority member of the senate finance committee, the chairperson and

  7  ranking minority member of the assembly ways and means committee and the

  8  director of the budget shall jointly convene a  consensus  economic  and

  9  revenue forecasting conference in the form of a joint legislative-execu-

 10  tive hearing, for the purpose of assisting the governor and the legisla-

 11  ture  in  reaching  the consensus revenue forecast required by paragraph

 12  (b) of this subdivision.  The conveners of the conference  shall  invite

 13  such participants to the conference as shall, in their judgment, provide

 14  guidance  on  the  current  conditions  in, and probable outlook for the

 15  performance of, the economy of the state, as well as the effect of  such

 16  conditions and such performance on state receipts.

 17    (b) On or before March tenth first in each year, the director of the

 18  budget  and the secretary of the senate finance committee and the secre-

 19  tary of the assembly ways and means committee shall issue a joint report

 20  containing a consensus forecast of the economy and of receipts  for  the

 21  current and the ensuing state fiscal year. The report shall include, but

 22  shall  not  be  limited  to, the following information, presented on the

 23  cash basis of accounting: expected tax receipts on an  all-funds  basis,

 24  projected lottery receipts, and anticipated miscellaneous receipts to be

 25  received in the general fund.

 26    §  2.  Subdivision  3 of section 92 of the state finance law, as sepa-

 27  rately amended by chapters 405 and 957 of the laws of 1981,  is  amended

 28  to read as follows:

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  1    3.  At the close of each fiscal year any cash surplus remaining in the

  2  general fund over and above the norm  for  such  fiscal  year  shall  be

  3  transferred  from or retained in such fund as hereinafter in this subdi-

  4  vision provided. There shall be transferred  to  the  tax  stabilization

  5  reserve  fund  all of such surplus moneys, up to and including an amount

  6  equivalent to two-tenths five-tenths of one per centum of  such  norm,

  7  unless  such  transfer  would increase such reserve fund to an amount in

  8  excess of two five per centum of the  amount  of  the  norm  for  such

  9  fiscal  year,  in  which  event  such  transfer shall be limited to such

 10  amount as will increase such reserve fund to such two five per  centum

 11  limitation.  Any balance of such surplus moneys, thereafter remaining in

 12  the general fund, shall be retained in such fund and  be  available  for

 13  the reduction of state taxes.

 14    §  3.  The  opening  paragraph of section 54 of the legislative law is

 15  designated subdivision 1 and a new subdivision 2 is  added  to  read  as

 16  follows:

 17    2.  When  both  houses are in agreement and prepared to finally act on

 18  the appropriation bills submitted by the  governor  in  accordance  with

 19  article  seven  of the constitution, each house shall place on the desks

 20  of its members a summary report preceding final action  on  such  bills.

 21  Such  summary report shall be prepared by the division of the budget and

 22  submitted to each house not later than forty-eight hours  after  receipt

 23  of a joint letter from the secretary of the senate finance committee and

 24  the  secretary of the assembly ways and means committee that states that

 25  both houses are in agreement and prepared to finally act on  the  appro-

 26  priation  bills  and  proposed  legislation submitted by the governor in

 27  accordance with article seven of the constitution. The secretary of  the

 28  senate  finance  committee  and  the  secretary of the assembly ways and

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  1  means committee shall furnish the division  of  the  budget,  concurrent

  2  with  the  submission  of  the  joint  letter, sufficient information to

  3  prepare the summary report  required  by  this  section,  including  the

  4  appropriation bills and proposed legislation on which both houses are in

  5  agreement  and prepared to act. The summary report prepared by the divi-

  6  sion of the budget shall be in such a form as to indicate that the budg-

  7  et as amended provides that, for the general fund, the total  of  antic-

  8  ipated disbursements, including transfers to other funds, is not greater

  9  than  the  total of anticipated receipts, including transfers from other

 10  funds, plus any balance available in such fund. The summary report shall

 11  further describe the impact of proposed legislative  amendments  on  the

 12  receipt and disbursement estimates contained in the executive budget for

 13  such  fiscal  year  and for the succeeding two fiscal years. The summary

 14  report shall be in such format as the division of the budget may  deter-

 15  mine.

 16    §  4.  The  legislative law is amended by adding a new section 54-a to

 17  read as follows:

 18    § 54-a. Conference committees on the budget. On or before March  first

 19  in  any  year  when  the  legislature  shall have failed by such date to

 20  finally act upon the  appropriation  bills  submitted  by  the  governor

 21  pursuant  to  article seven of the constitution, the temporary president

 22  of the senate and the speaker of the assembly shall jointly appoint  and

 23  charge  one or more joint conference committees on the budget in accord-

 24  ance with procedures set forth in permanent joint rules  of  the  senate

 25  and assembly.

 26    In  any  year in which one or more such committees are appointed, each

 27  committee shall issue its report on the  budget  not  later  than  March

 28  twenty-ninth.

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  1    §  5.  The  legislative law is amended by adding a new section 54-b to

  2  read as follows:

  3    § 54-b. Votes on revenue actions of fifty million dollars or more.  1.

  4  For  the  purpose  of  ascertaining  when  a  vote by the legislature is

  5  subject to the provisions of section twenty  of  article  three  of  the

  6  constitution,  and  for  the  purposes of this section, the term "tax or

  7  other revenue source" refers to any  tax,  assessment,  charge,  fee  or

  8  similar levy imposed by the state, provided, however, that to the extent

  9  that  the  following  shall apply to any tax, assessment, charge, fee or

 10  similar levy imposed by the state, they shall not be included within the

 11  meaning of such term for such purpose:

 12    a. A change in the date or dates of payment or for the  remittance  of

 13  collections thereof by any agency of the state;

 14    b.  A  change in the rate or rates of interest for payments or liabil-

 15  ities which may be due and owed but have not been paid;

 16    c. Any provision for penalties to be imposed  against  persons  liable

 17  for payment;

 18    d.  Provisions affecting or amending the authorization for collection,

 19  administration and enforcement or procedures pertaining thereto;

 20    e. An authorization for one or more municipalities to locally  impose,

 21  administer,  or  enforce a tax, assessment, charge, fee or other similar

 22  levy; and

 23    f. An extension of an existing or expired provision.

 24    2. Prior to the consideration of any  bill  that  would  increase  any

 25  individual  tax  or other revenue item, the legislature and the governor

 26  shall agree on a revenue estimate associated with such proposed increase

 27  on a cash basis of accounting, for all governmental funds,  if  applica-

 28  ble. The revenue estimate for each such proposed increase shall be esti-

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  1  mated  for  the  first full twelve month period such increase is to take

  2  effect. In the case where such increase is proposed to remain in  effect

  3  for  a  period  less  than  twelve months, the revenue estimate shall be

  4  annualized.  If  the  annual  or  annualized estimate of the increase so

  5  agreed upon equals or exceeds fifty million dollars, such estimate shall

  6  be conclusive with respect to the applicability of the  requirements  of

  7  section  twenty  of  article  three of the constitution and shall not be

  8  subject to judicial review.  The  legislature  and  the  governor  shall

  9  jointly  produce a report summarizing such estimates before the legisla-

 10  ture shall act upon any bill containing any tax or other revenue item.

 11    § 6. This act shall take effect immediately, provided,  however,  that

 12  sections  one,  three  and  four  of this act shall take effect April 1,

 13  2000; section two of this act shall take effect three years  after  this

 14  act  shall  have  become  a law; and section five of this act shall take

 15  effect on the same date as a "CONCURRENT RESOLUTION OF  THE  SENATE  AND

 16  ASSEMBLY  proposing  an  amendment  to article 3 of the constitution, in

 17  relation to requiring two-thirds assent of each house of the legislature

 18  for the increase of revenues", takes effect.