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- Referred to finance
- Referred to finance
Full text
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Title of bill
An act to amend the executive law, in relation to requiring the state and public entities to file a statement with the comptroller containing information regarding the issuance of bonds
Purpose
The bill would require that any bonds that are issued by the State or any political subdivision thereof be filed with the Office of the State Comptroller for public disclosure.
Summary of provisions
This bill requires that each bond offered in the State of New York by the state or any political subdivision be filed with the Office of the State Comptroller (OSC). The bill requires the Comptroller to establish procedures for the filing of information for each bond that would be available for public view. Such information, at a minimum, would include the official statement, a copy of the prospectus, the total cost of t.he bond and an estimate of the fees paid to bond counsels, underwriters, swap providers, counsels to the underwriters, trustees, financial advisors and any other entities determined by the Comptroller to be relevant to the offering because the public has a right to know. Such public disclosure is required within 30 days of the bond offering, and shall be made available though a special section on the Comptroller's Internet website at www.osc.state.ny.us. The OSC will assume any cost incurred by local governments through compliance with this act.
Justification
According to a report issued in 2004 by the Office of the Comptroller, there are more than 640 authorities in the State, including 169 major State public authorities and affiliated subsidiary corporations, 43 authorities that are affiliated with State agencies, 425 local authorities and 3 interstate authorities with 3 subsidiaries. Authorities issue more than 90 percent of State debt; State general obligated debt makes up the other 10 percent. The 17 authorities that have issued at least $100 million in debt have a total of $105 billion in debt outstanding, including $33.8 billion in State supported debt. In addition to the State, the political subdivisions of the State also offer bonds from local governments, school districts and Industrial Development Agencies (IDAs).
Unfortunately, the specifics of these bonds are generally not available to the public, nor are the fees paid pursuant to bond offerings ascertainable. This bill would ensure that any bond offered by the State, or any political subdivision thereof, be publicly disclosed and easily accessible by requiring all relevant information, including all fees to be paid as part of the bond offering process, and be made public through the OSC website.
State and municipal bonding has little or no accountability in terms of disclosure. Shedding light on the process to ensure that the public knows how its money is being spent requires major reform. The first step in that reform is public disclosure of the specific costs of each bond and who is benefiting from such offerings. By providing this information in an easily accessible form, there will be better oversight and accountability to the people on whose behalf these bonds are issued -- the taxpayers.
Legislative history
Introduced as S.6024A in 2005 Introduced as S.1154 in 2007
Fiscal implications
None to local government; minimal to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.