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
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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.
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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
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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
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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.