A01190 Summary:

BILL NOA01190
 
SAME ASSAME AS S04447
 
SPONSORGlick
 
COSPNSR
 
MLTSPNSR
 
Add 92-ii, St Fin L
 
Relates to establishing the state university of New York and city university of New York endowment fund.
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A01190 Actions:

BILL NOA01190
 
01/14/2019referred to higher education
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A01190 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1190
 
SPONSOR: Glick
  TITLE OF BILL: An act to amend the state finance law, in relation to establishing the state university of New York and the city university of New York endowment fund   PURPOSE: The purpose of this bill is to create an endowment fund for both the state university of New York and the city university of New York with funds being held and invested by the comptroller.   SUMMARY OF PROVISIONS: Section 1. Amends the state finance law be adding section 92-gg which establishes the state university of New York endowment fund and the city university of New York endowment fund which will be in the custody of the comptroller. The assets and income held within the funds will be held and invested by the comptroller as the trustee. The state univer- sity of New York endowment fund and the city university of New York endowment fund will be made up of any funds that are transferred to these endowments as well as any other deposits made from other public or private sources. Also, ten percent of money received from settlements or judgments in claims or causes of actions by the state or any agency will be transferred to the comptroller where it will in turn be transferred to the endowment funds. Funds that are transferred to these endowment funds are solely for use by the state university of New York and the city university of New York. These funds are also only in place to supplement rather than supplant funds provided by the state. Annual payments from the investment earnings of the endowments will be used as determined by the board of trustees and may be spent on, but not limited to, areas such as employment of additional full-time f aculty members, student financial aid, grants for research and development and other such higher education purposes. Section 2. Establishes the effective date of this law.   JUSTIFICATION: For too long, our public higher education systems have suffered cuts in the amount of resources provided by the state. This lack of funds, along with growing enrollment, has caused more adjunct faculty to be hired instead of full time faculty. Both SUNY and CUNY have lamented the fact that their fiscal status prevents replacing adjunct faculty with full time faculty at a faster rate. It is thought that additional funds from the endowment could assist the systems in this regard. An active endowment fund encourages contributiOns from alumni, faculty and philanthropists. It demonstrates the regard that the State and the community have for our public higher education systems. The funds will also provide much needed resources for faculty, student aid and research and development. The funding mechanism for the endowment does not require taxpayer funds. It uses a portion of any settlements from judgements arising from any claim or cause of action brought by the state. In this way we continue to build our intellectual capital in this state.   LEGISLATIVE HISTORY: 2017-18: Referred to Higher Education 2016: Reported referred to higher education   FISCAL IMPLICATIONS: To be determined   EFFECTIVE DATE: This act will take effect immediately.
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A01190 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1190
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 14, 2019
                                       ___________
 
        Introduced  by M. of A. GLICK -- read once and referred to the Committee
          on Higher Education
 
        AN ACT to amend the state finance law, in relation to  establishing  the
          state  university  of  New  York  and  the city university of New York
          endowment fund
 
          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 section
     2  92-ii to read as follows:
     3    § 92-ii. State university of New York and city university of New  York
     4  endowment  fund.    1. There is hereby established in the custody of the
     5  comptroller a fund to be known as the state university of New  York  and
     6  city  university  of New York endowment fund.  Notwithstanding any other
     7  provision of law, all of the assets and income of the endowment shall be
     8  held and invested by the  comptroller  as  trustee  of  such  endowment,
     9  except such income as may be allocated or distributed by the comptroller
    10  pursuant to appropriation.
    11    2. The endowment shall consist of amounts transferred into such endow-
    12  ment,  and  any  other amounts as may be deposited in the endowment from
    13  other public or private sources. Notwithstanding any  provision  of  the
    14  law  to  the  contrary,  in addition to any other amounts transferred or
    15  deposited, ten percent of all moneys  received  as  the  result  of  the
    16  settlement  or compromise of or from any judgment arising from any claim
    17  or cause of action brought by the state or any agency thereof  shall  be
    18  transferred and paid to the state comptroller, and the comptroller shall
    19  deposit  such  moneys  into  the  state  university of New York and city
    20  university of New York endowment fund.
    21    3. Amounts transferred to or deposited into  the  endowment  shall  be
    22  dedicated to the state university of New York and/or the city university
    23  of  New  York, and shall be used for no other purpose, and distributions
    24  from the endowment shall be used to supplement,  rather  than  supplant,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05014-01-9

        A. 1190                             2
 
     1  appropriations  from the state in support of the state university of New
     2  York and the city university of New York. The full amount of the princi-
     3  pal of the endowment shall be preserved and  annual  payments  shall  be
     4  made  from  the  investment  earnings of the endowment in support of the
     5  state university of New York and the city university  of  New  York,  to
     6  provide  funding for purposes as determined by the boards of trustees of
     7  the state university of New York and the city  university  of  New  York
     8  which may include, but shall not be limited to, employment of additional
     9  full-time  faculty  members,  student  financial  aid to improve access,
    10  grants for research and development, and for additional higher education
    11  purposes as may be authorized.
    12    § 2. This act shall take effect immediately.
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A01190 LFIN:

 NO LFIN
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