Bill Text: NY A07338 | 2019-2020 | General Assembly | Introduced
Bill Title: Enacts a balanced budget requirement and creates the New York state governmental accounting review board.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A07338 Detail]
Download: New_York-2019-A07338-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7338 2019-2020 Regular Sessions IN ASSEMBLY April 25, 2019 ___________ Introduced by M. of A. GALEF -- read once and referred to the Committee on Ways and Means AN ACT to amend the state finance law and the legislative law, in relation to enacting a balanced budget requirement and creating the New York state governmental accounting review board The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The state finance law is amended by adding a new article 2 3-A to read as follows: 3 ARTICLE III-A 4 BUDGETING ACCORDING TO GENERALLY 5 ACCEPTED ACCOUNTING PRINCIPLES 6 Section 35. Definitions. 7 36. Development of the executive budget submission and enacted 8 budget. 9 37. New York state governmental accounting review board. 10 § 35. Definitions. As used in this article, the following words and 11 terms shall have the following meanings unless the context otherwise 12 requires. 13 1. "Board" means New York state governmental accounting review board 14 pursuant to section thirty-seven of this article. 15 2. "Revenues" mean all taxes, rents, fees, charges, payments, all 16 proceeds from borrowings and other income and receipts paid or payable 17 to or for the state's treasury. 18 3. "Generally accepted accounting principles" means the set of 19 accounting principles for financial reporting established by the Finan- 20 cial Accounting Standards Advisory Board and governed by the American 21 Institute of Certified Public Accountants for federal reporting enti- 22 ties. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08615-01-9A. 7338 2 1 4. "Executive budget submission" means the document submitted by the 2 governor to the legislature pursuant to section two of article seven of 3 the state constitution. 4 5. "Enacted budget" means the document passed by both houses of the 5 legislature pursuant to section four of article seven of the state 6 constitution. 7 § 36. Development of the executive budget submission and enacted budg- 8 et. 1. For fiscal years beginning on and after April first, two thousand 9 twenty, the executive budget submission and the enacted budget covering 10 all expenditures other than capital items shall be prepared and balanced 11 so the results thereof would not show a deficit when reported in accord- 12 ance with generally accepted accounting principles. 13 2. The governor, the legislature and the New York state governmental 14 accounting review board shall confer concerning the requirement to 15 balance the budget, as well as the projected effect on the budgets by 16 any change in generally accepted accounting principles or change in the 17 application of generally accepted accounting principles to the state. 18 The governor and/or the legislature may petition the board to exempt 19 either the executive budget submission or the enacted budget from the 20 provisions of this section. 21 § 37. New York state governmental accounting review board. 1. There is 22 hereby created the New York state governmental accounting review board. 23 The board shall be a governmental agency and instrumentality as is set 24 forth in this article. 25 2. The board shall have the following functions: 26 a. to confer with the governor and the legislature concerning the 27 requirement to balance the budget as provided in section thirty-six of 28 this article, the projected effect on the budgets by any change in 29 generally accepted accounting principles, and change in the application 30 of generally accepted accounting principles to the state budget; 31 b. to hear petitions from the governor or legislature with relation to 32 modifying or exempting the executive budget submission or the enacted 33 budget from the balanced budget requirement of section thirty-six of 34 this article or from the requirements of any new or existing govern- 35 mental accounting standards, board statements, interpretations, techni- 36 cal bulletins, and concept statements; and 37 c. to determine whether immediate compliance with the provisions of 38 section thirty-six of this article will have a material effect on state 39 budgets over a time period insufficient to accommodate the effect with- 40 out a substantial adverse impact on the delivery of essential services, 41 and, upon such determination, to authorize and approve a method of phas- 42 ing the requirements of this section into such budgets over such reason- 43 ably expeditious time period as the board deems appropriate. 44 3. The board shall be comprised of five members, one of whom will 45 serve as chair; who are nominated by the governor and appointed with 46 advice and consent of the senate. All of the appointed members shall be 47 residents of the state. Such appointed members shall serve a term of 48 five years. All appointed members shall have academic or business expe- 49 rience in governmental accounting standards and generally accepted 50 accounting principles. The board shall act by a majority quorum vote of 51 the entire board. The board shall maintain a record of its proceedings 52 in such form as it may determine, but such record shall indicate attend- 53 ance and all votes cast by each member. 54 4. Notwithstanding any inconsistent provisions of law, no officer or 55 employee of the state, or political subdivision of the state, any 56 governmental entity operating any public school or college or otherA. 7338 3 1 public agency or instrumentality or unit of government which exercises 2 governmental powers under the laws of the state, shall forfeit his 3 office or employment by reason of his acceptance or appointment as a 4 member, representative, officer, employee or agent of the board nor 5 shall service as such member, officer, employee or agent of the board be 6 deemed incompatible or in conflict with such office or employment. 7 5. The members of the board shall serve without salary or per diem 8 allowance but shall be entitled to reimbursement for actual and neces- 9 sary expenses incurred in the performance of official duties under this 10 act, provided however that such members and representatives are not, at 11 the time such expenses are incurred, public employees otherwise entitled 12 to such reimbursement. 13 6. All agencies, authorities, and institutions of the state shall 14 cooperate with and provide such assistance to the board as the board may 15 request. 16 7. The chair, in consultation with the board, may hire or appoint an 17 executive director for the board if deemed necessary. 18 § 2. Section 22 of the state finance law is amended by adding a new 19 subdivision 17 to read as follows: 20 17. Notwithstanding any provision of law to the contrary, budgets 21 submitted pursuant to this section shall include: 22 (a) a description of all of the expenditures estimated to be made 23 before the close of the current fiscal year and all of the expenditures 24 proposed to be made during the ensuing fiscal year, both in accordance 25 with generally accepted accounting principles as defined in article 26 three-A of this chapter; and 27 (b) a description of all the revenues estimated to accrue before the 28 close of the current fiscal year and during the ensuing fiscal year, 29 inclusive of any revenues which are expected to result from the proposed 30 legislation which the governor deems necessary to provide receipts 31 sufficient to meet proposed disbursements, all in accordance with gener- 32 ally accepted accounting principles as defined in article three-A of 33 this chapter. 34 § 3. Paragraph (a) of subdivision 2 of section 54 of the legislative 35 law, as added by chapter 1 of the laws of 2007, is amended to read as 36 follows: 37 (a) The legislature shall enact a budget for the upcoming fiscal year 38 that it determines is balanced [in the general fund]. 39 § 4. Subdivision 2 of section 54 of the legislative law is amended by 40 adding a new paragraph (d) to read as follows: 41 (d) Notwithstanding any provision of law to the contrary, budgets 42 submitted pursuant to this section shall include: 43 (i) all of the expenditures estimated to be made before the close of 44 the current fiscal year and all of the expenditures proposed to be made 45 during the ensuing fiscal year, both in accordance with generally 46 accepted accounting principles as defined in article three-A of the 47 state finance law; and 48 (ii) a description of all of the revenues estimated to accrue before 49 the close of the current fiscal year and during the ensuing fiscal year, 50 inclusive of any revenues which are expected to result from the proposed 51 legislation which the legislature deems necessary to provide receipts 52 sufficient to meet proposed disbursements, all in accordance with gener- 53 ally accepted accounting principles as defined in article three-A of the 54 state finance law. 55 § 5. Separability clause. If any part or provision of this section or 56 the application thereof to any person is adjudged by a court of compe-A. 7338 4 1 tent jurisdiction to be unconstitutional or otherwise invalid, such 2 judgment shall not affect or impair any other part or provision or the 3 application thereof to any other person, but shall be confined to such 4 part or provision. 5 § 6. This act shall take effect immediately, provided that if this act 6 shall take effect after April 1, 2020, it shall be deemed to have been 7 in effect on and after April 1, 2020.
