Section 92-CC. Rainy day reserve fund

1. There is hereby established in the
  state  treasury a fund to be known as the "rainy day reserve fund". Such
  fund shall consist of moneys  deposited  therein  and  monies  shall  be
  withdrawn from such fund only for the purposes as provided therein.
    2.  Such  fund  shall  have  a maximum balance not to exceed three per
  centum of the aggregate  amount  projected  to  be  disbursed  from  the
  general   fund   during   the  fiscal  year  immediately  following  the
  then-current fiscal year.
    3. a. The amounts available  in  such  reserve  may  be  used  if  the
  following conditions are met:
    (i)  Economic  downturn. The commissioner of labor shall calculate and
  publish, on or before the fifteenth day of each month, a composite index
  of business cycle indicators.  Such  index  shall  be  calculated  using
  monthly  data  on  New  York state employment, total manufacturing hours
  worked, and unemployment prepared by the  department  of  labor  or  its
  successor  agency,  and  total  sales  tax collected net of law changes,
  prepared by the department of taxation  and  finance  or  its  successor
  agency.   Such  index  shall  be  constructed  in  accordance  with  the
  procedures for calculating composite indexes issued  by  the  conference
  board   or   its  successor  organization,  and  adjusted  for  seasonal
  variations in accordance with the procedures issued by the census bureau
  of the United States department of commerce or its successor agency.  If
  the   composite   index   declines  for  five  consecutive  months,  the
  commissioner of labor shall notify the  governor,  the  speaker  of  the
  assembly,  the  temporary  president  of  the  senate,  and the minority
  leaders of the assembly and the  senate.  Upon  such  notification,  the
  director  of  the  budget  may  authorize  and direct the comptroller to
  transfer from the rainy day  reserve  fund  to  the  general  fund  such
  amounts  as  the  director  of  the  budget  deems necessary to meet the
  requirements of the state financial  plan.  The  authority  to  transfer
  funds  under  the  provisions  of  this subdivision shall lapse when the
  composite index shall have increased  for  five  consecutive  months  or
  twelve  months  from  the  original  notification of the commissioner of
  labor, whichever occurs  earlier.  Provided,  however,  that  for  every
  additional  and  consecutive  monthly  decline succeeding the five month
  decline so noted by the commissioner of labor, the  twelve  month  lapse
  date shall be extended by one additional month; or
    (ii)  Catastrophic  events.  In the event of a need to repel invasion,
  suppress insurrection, defend the state in war, or  to  respond  to  any
  other emergency resulting from a disaster, including but not limited to,
  a disaster caused by an act of terrorism, the director of the budget may
  authorize  and  direct  the  comptroller  to transfer from the rainy day
  reserve fund to the general fund such amounts as  the  director  of  the
  budget  deems  necessary to meet the requirements of the state financial
  plan.
    b. Prior to authorizing any transfer from the rainy day  reserve  fund
  pursuant  to  the provisions of this section, the director of the budget
  shall notify the speaker of the assembly, the temporary president of the
  senate, and the minority leaders of the assembly and  the  senate.  Such
  letter  shall  specify  the  reasons  for  the  transfer  and the amount
  thereof. Any amounts transferred from the rainy day reserve fund to  the
  general  fund  shall  be subject to all the repayment provisions of this
  section.
    4. Any transfer authorized in subdivision three of this section  shall
  be  repaid  in  cash  within a period of three years after the date that
  such  authority  to  transfer  funds  under  the  provisions   of   this
  subdivision  lapses,  provided however that any transfer authorized as a
  result of a catastrophic event shall be subject to repayment  provisions

  to  be  proposed  by  the  governor  and implemented by appropriation or
  transfer of funds.
    5.  Moneys  in the rainy day reserve fund may be temporarily loaned to
  the general fund during any fiscal year in anticipation of  the  receipt
  of  revenues from taxes, fees and other sources required to be paid into
  the general fund during such fiscal year. Moneys so  temporarily  loaned
  shall be repaid in cash during the same fiscal year.