RETRIEVE BILL Statutory Debt Reform Program Bill - 001


     Legislative Bill Drafting Commission
                  12213-01-0

     S.        --------
                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

     *STATFILA*
     (Limits the amount of state-support-
     ed debt that may be issued)

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     St Fin. limit state-supp debt

                    AN ACT

     to amend the state finance  law,  in
     relation  to  limiting the amount of
     state-supported  debt  that  may  be
     issued

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

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  1    Section  1.  The  state finance law is amended by adding a new article

  2  5-B to read as follows:

  3                                  ARTICLE 5-B

  4                     LIMITATIONS ON STATE-SUPPORTED DEBT

  5          § 67-a. Definitions.

  6          § 67-b. Limitations on the issuance of state-supported debt.

  7    § 67-a. Definitions.  When used in this article  the  following  terms

  8  shall have the meanings set forth below:

  9    1. "State-supported debt" shall have the meaning as set forth in para-

 10  graph (f) of subdivision one of section twenty-two-c of article three of

 11  the state finance law.

 12    2.  "Total  personal income of the state" shall mean the most recently

 13  published estimate of the calendar year annual dollar amount  determined

 14  as  total  personal  income of the state of New York as published by the

 15  United States department of commerce or any successor agency  for  which

 16  information  is  available  prior  to October thirty-first of each year.

 17  Subsequent revisions of the published estimated dollar amount  for  such

 18  calendar  year  shall  not affect the validity of the determination made

 19  for any fiscal year.

 20    3. "Total governmental funds receipts" shall mean the total amount  of

 21  receipts  of all governmental funds of the state including general fund,

 22  special revenue funds, capital funds and debt service funds  as  finally

 23  reported  by the state comptroller on a cash basis of accounting for the

 24  state fiscal year, where such state fiscal year is defined by  law,  but

 25  shall  exclude cash transfers between funds and include any cash manage-

 26  ment or other related transactions whereby receipts in  a  state  fiscal

 27  year were reduced and maintained for subsequent use.

                                         3                         12213-01-0

  1    §  67-b.  Limitations  on  the  issuance of state-supported debt.   1.

  2  State-supported  debt  may  not  be  contracted  for  unless  the  total

  3  outstanding  principal  amount  of  such debt, as of the last day of the

  4  immediately preceding fiscal year is less than the designated percentage

  5  of  the  total  personal  income  of the state applicable to such fiscal

  6  year. The total outstanding principal amount of debt shall  include  all

  7  state-supported debt issued on and after April first, two thousand. Such

  8  designated percentage shall be six-tenths of one percent for fiscal year

  9  two thousand--two thousand one, and shall increase by five-tenths of one

 10  percent  in  fiscal  year  two  thousand one--two thousand two, by four-

 11  tenths of one percent in fiscal  year  two  thousand  two--two  thousand

 12  three,  and  by  one-third of one percent in each of the five subsequent

 13  fiscal years. The designated percentage for  fiscal  year  two  thousand

 14  eight--two  thousand  nine  and for each fiscal year thereafter shall be

 15  three and one-half percent. Provided such refundings  are  conducted  in

 16  accordance  with  section thirteen of article VII of the state constitu-

 17  tion, if state-supported debt  is  issued  to  refund  previously-issued

 18  state-supported  debt,  the  amount  of  refunding debt in excess of the

 19  amount of debt to be so refunded shall be excluded from the  calculation

 20  of  the  total  outstanding  principal amount of debt in each year until

 21  such refunding debt is  finally  retired.  In  addition,  provided  such

 22  refundings  are conducted in accordance with section thirteen of article

 23  VII of the state constitution, if state  debt  which  is  secured  by  a

 24  pledge  of specific revenues of the state is issued to refund state-sup-

 25  ported debt, for which the state is not  constitutionally  obligated  to

 26  pay  debt  service,  which was issued prior to the effective date of the

 27  constitutional amendment to reform the state's debt practices, then  the

 28  amount  of such refunding debt shall be excluded from the calculation of

                                         4                         12213-01-0

  1  the total outstanding principal amount of debt in each year  until  such

  2  refunding debt is finally retired.

  3    2.  State-supported  debt  may  not be contracted for unless the total

  4  amount of interest, installments of principal, contributions to  sinking

  5  funds, and related payments on a cash basis of accounting for state-sup-

  6  ported  debt  in  the immediately preceding fiscal year is less than the

  7  designated percentage of total  governmental  funds  receipts  for  such

  8  fiscal  year.  This  shall  include the total amount of payments on such

  9  debt issued on and after  April  first,  two  thousand,  but  shall  not

 10  include  payments  in  any  fiscal  year made by the state to defease or

 11  retire debt not required by mandatory payments nor payments made by  the

 12  state  for  debt  issued  to  refund debt that was issued prior to April

 13  first, two thousand. Such designated percentage shall be  six-tenths  of

 14  one  percent  for  fiscal year two thousand--two thousand one, and shall

 15  increase by  five-tenths of one percent in fiscal  year  two    thousand

 16  one--two  thousand two, by four-tenths of one percent in fiscal year two

 17  thousand two--two thousand three, and by one-third  of  one  percent  in

 18  each  of  the ten subsequent fiscal years. The designated percentage for

 19  fiscal year two thousand thirteen--two thousand fourteen  and  for  each

 20  fiscal year thereafter shall be five percent.

 21    3.  Upon  the  enactment  of  a constitutional amendment to reform the

 22  state's debt practices, as passed by  the  Legislature  during  the  two

 23  thousand  and  two  thousand  one calendar years, the limitations on the

 24  contracting of state-supported debt set forth in  subdivisions  one  and

 25  two of this section shall become null and void as of March thirty-first,

 26  two  thousand  three, and limitations on such debt shall be as set forth

 27  in the state's constitution.  Provided, however, that the provisions  of

 28  subdivision one of this section relating to the refunding of debts shall

                                         5                         12213-01-0

  1  continue  to  apply to such debts as may be authorized subsequent to the

  2  adoption of such constitutional amendment to  reform  the  state's  debt

  3  practices, and limitations thereon.

  4    § 2. This act shall take effect immediately.