N.Y. State Finance Law § 92-z: Revenue bond tax fund

§ 92-z. Revenue bond tax fund. 1. There is hereby established in the

joint custody of the state comptroller and the commissioner of taxation

and finance a fund within the general debt service fund to be known as

"the revenue bond tax fund".

2. Such fund shall consist of (a) fifty percent of receipts from the

imposition of personal income taxes pursuant to article twenty-two of

the tax law, less such amounts as the commissioner of taxation and

finance may determine to be necessary for refunds, (b) fifty percent of

receipts from the imposition of employer compensation expense taxes

pursuant to article twenty-four of the tax law, less such amounts as the

commissioner of taxation and finance may determine to be necessary for

refunds, and (c) fifty percent of receipts from the imposition of the

pass-through entity taxes pursuant to article twenty-four-A of the tax

law, less such amounts as the commission of taxation and finance may

determine to be necessary for refunds.

3. (a) Beginning on the first day of each month, the comptroller shall

deposit all of the receipts collected pursuant to section six hundred

seventy-one of the tax law in the revenue bond tax fund until the amount

of monthly receipts anticipated to be deposited pursuant to the

certificate required in paragraph (b) of subdivision five of this

section are met. On or before the twelfth day of each month, the

commissioner of taxation and finance shall certify to the state

comptroller the amounts specified in paragraph (a) of subdivision two of

this section relating to the preceding month and, in addition, no later

than March thirty-first of each fiscal year the commissioner of taxation

and finance shall certify such amounts relating to the last month of

such fiscal year. The amounts so certified shall be deposited by the

state comptroller in the revenue bond tax fund.

(b) Beginning on the first day of each month, the comptroller shall

deposit all of the receipts collected pursuant to section eight hundred

fifty-four of the tax law in the revenue bond tax fund until the amount

of monthly receipts anticipated to be deposited pursuant to the

certificate required in paragraph (b) of subdivision five of this

section are met. On or before the twelfth day of each month, the

commissioner of taxation and finance shall certify to the state

comptroller the amounts specified in paragraph (b) of subdivision two of

this section relating to the preceding month and, in addition, no later

than March thirty-first of each fiscal year the commissioner of taxation

and finance shall certify such amounts relating to the last month of

such fiscal year. The amounts so certified shall be deposited by the

state comptroller in the revenue bond tax fund.

(c) Beginning on the first day of each month, the comptroller shall

deposit all of the receipts collected pursuant to sections eight hundred

sixty-four and eight hundred sixty-five of the tax law in the revenue

bond tax fund until the amount of monthly receipts anticipated to be

deposited pursuant to the certificate required in paragraph (b) of

subdivision five of this section are met. On or before the twelfth day

of each month, the commissioner of taxation and finance shall certify to

the state comptroller the amounts specified in paragraph (c) of

subdivision two of this section relating to the preceding month and, in

addition, no later than March thirty-first of each fiscal year the

commissioner of taxation and finance shall certify such amounts relating

to the last month of such fiscal year. The amounts so certified shall be

deposited by the state comptroller in the revenue bond tax fund.

4. Moneys in the revenue bond tax fund shall be kept separate and

shall not be commingled with any other moneys in the custody of the

state comptroller and the commissioner of taxation and finance. All

deposits of such revenues shall, if required by the state comptroller,

be secured by obligations of the United States or of the state having a

market value equal at all times to the amount of such deposits and all

banks and trust companies are authorized to give security for such

deposits. Any such moneys in such fund may, in the discretion of the

state comptroller, be invested in obligations in which the state

comptroller is authorized to invest pursuant to section ninety-eight-a

of this article.

5. (a) The state comptroller shall from time to time, but in no event

later than the fifteenth day of each month (other than the last month of

the fiscal year) and no later than the thirty-first day of the last

month of each fiscal year, pay over and distribute to the credit of the

general fund of the state treasury all moneys in the revenue bond tax

fund, if any, in excess of the aggregate amount required to be set aside

for the payment of cash requirements pursuant to paragraph (b) of this

subdivision, provided that an appropriation has been made to pay all

amounts specified in any certificate or certificates delivered by the

director of the budget pursuant to paragraph (b) of this subdivision as

being required by each authorized issuer as such term is defined in

section sixty-eight-a of this chapter for the payment of cash

requirements of such issuers for such fiscal year. Subject to the rights

of holders of debt of the state, in no event shall the state comptroller

pay over and distribute any moneys on deposit in the revenue bond tax

fund to any person other than an authorized issuer pursuant to such

certificate or certificates (i) unless and until the aggregate of all

cash requirements certified to the state comptroller as required by such

authorized issuers to be set aside pursuant to paragraph (b) of this

subdivision for such fiscal year shall have been appropriated to such

authorized issuers in accordance with the schedule specified in the

certificate or certificates filed by the director of the budget or (ii)

if, after having been so certified and appropriated, any payment

required to be made pursuant to paragraph (b) of this subdivision has

not been made to the authorized issuers which was required to have been

made pursuant to such certificate or certificates; provided, however,

that no person, including such authorized issuers or the holders of

revenue bonds, shall have any lien on moneys on deposit in the revenue

bond tax fund. Any agreement entered into pursuant to section

sixty-eight-c of this chapter related to any payment authorized by this

section shall be executory only to the extent of such revenues available

to the state in such fund. Notwithstanding subdivisions two and three of

this section, in the event the aggregate of all cash requirements

certified to the state comptroller as required by such authorized

issuers to be set aside pursuant to paragraph (b) of this subdivision

for the fiscal year beginning on April first shall not have been

appropriated to such authorized issuers in accordance with the schedule

specified in the certificate or certificates filed by the director of

the budget or, (ii) if, having been so certified and appropriated, any

payment required to be made pursuant to paragraph (b) of this

subdivision has not been made pursuant to such certificate or

certificates, all receipts collected pursuant to section six hundred

seventy-one of the tax law, section eight hundred fifty-four of the tax

law, section eight hundred sixty-four of the tax law, and section eight

hundred sixty-five of the tax law shall be deposited in the revenue bond

tax fund until the greater of forty percent of the aggregate of the

receipts from the imposition of (A) the personal income tax imposed by

article twenty-two of the tax law, (B) the employer compensation expense

tax imposed by article twenty-four of the tax law, and (C) the

pass-through entity tax imposed by article twenty-four-A of the tax law

for the fiscal year beginning on April first and as specified in the

certificate or certificates filed by the director of the budget pursuant

to this paragraph or a total of twelve billion dollars has been

deposited in the revenue bond tax fund. Notwithstanding any other

provision of law, if the state has appropriated and paid to the

authorized issuers the amounts necessary for the authorized issuers to

meet their requirements for the current fiscal year pursuant to the

certificate or certificates submitted by the director of the budget

pursuant to paragraph (b) of this section, the state comptroller shall,

on the last day of each fiscal year, pay to the general fund of the

state all sums remaining in the revenue bond tax fund on such date

except such amounts as the director of the budget may certify are needed

to meet the cash requirements of authorized issuers during the

subsequent fiscal year.

(b) No later than thirty days after the submission of the executive

budget in accordance with article seven of the constitution, the

director of the budget shall prepare a certificate of the amount of

monthly receipts anticipated to be deposited pursuant to subdivision two

of this section during the fiscal year beginning April first of that

year together with the monthly amounts necessary to be set aside from

the receipts of such fund, as shall be sufficient to meet the total cash

requirements of authorized issuers, as defined by section sixty-eight-a

of this chapter during such fiscal year, based on information that shall

be provided by such authorized issuers, consistent with the terms of any

contract with outstanding bondholders. Such monthly set asides shall

equal not less than the total debt service requirements due to all

authorized issuers in the following month and as certified by the

director of the budget, except in the case of revenue bonds of an

authorized issuer that are due on a monthly or more frequent basis. The

state comptroller shall set aside all such moneys as received in the

revenue bond tax fund until the amount set aside is equal to the monthly

amount of cash requirements, as certified by the director of the budget.

Notwithstanding subdivision three of section seventy-two of this article

or any other provision of law, all moneys set aside in the revenue bond

tax fund to meet the annual cash requirements of authorized issuers

pursuant to a certificate or certificates as required in this paragraph

shall remain in the revenue bond tax fund until needed for payment to

authorized issuers, as provided in this section. For the purpose of

meeting any required payment on any issue of revenue bonds of an

authorized issuer that is due on a monthly or more frequent basis, the

state comptroller shall set aside all receipts deposited pursuant to

subdivision three of this section as received until the amount so set

aside is, in accordance with the schedule set forth for such purpose by

the director of the budget, sufficient to pay the required payment on

such issue and any other such issue with a payment date on or before

such payment date. In the event that the amount set aside by the state

comptroller pursuant to this paragraph is not sufficient to meet the

cash requirements required pursuant to a certificate or certificates

submitted by the director of the budget, the state comptroller shall

immediately transfer from the general fund to the revenue bond tax fund

an amount which, when combined with the amount set aside pursuant to

this paragraph, shall be sufficient to meet the payment required

pursuant to such certificate or certificates. The director of the budget

may revise such certification at such times as shall be necessary,

provided, however, that the director of the budget shall, as necessary,

revise such certification not later than thirty days after the issuance

of any revenue bonds, including refunding bonds, and after the adoption

of any interest rate exchange or other financial arrangement affecting

the cash requirements of the authorized issuers. In no event shall the

state comptroller be held liable for the failure to set aside an amount

sufficient to pay any required payment of an authorized issuer.

6. All payments of moneys from the revenue bond tax fund shall be made

on the audit and warrant of the state comptroller.