New York Assembly Bill A02353

New York 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 1/16/25
• Refer: 1/7/26

Caption

Relates to the payment of 5% of settlement funds totaling $1,000,000 or more to the principal balance of the state's general debt service fund.

Summary

A02353 would require that 5% of any settlement payment to the state totaling $1 million or more be directed to the principal balance of the state’s general debt service fund. In practical terms, the bill creates a dedicated diversion of a small portion of large settlement proceeds away from general use and toward reducing state debt. The measure applies broadly to settlement money paid to the state, without limiting the source of the settlement or the type of claim involved. The bill amends the state finance law by adding a new provision to section 72. It would take effect immediately upon enactment. Because it is framed as a finance and debt-management measure, the bill affects how the state accounts for and allocates certain settlement revenues, rather than changing substantive law governing settlements themselves.

Impact

The bill would alter state fiscal law by earmarking 5% of qualifying settlement funds for the general debt service fund’s principal balance, thereby reducing the amount of those funds available for other state purposes. It would affect state budget officials, the comptroller/finance apparatus responsible for receiving and allocating settlement proceeds, and indirectly taxpayers and bondholders by modestly increasing debt repayment resources. The bill does not create a new tax or change settlement liability; it changes the post-receipt disposition of large settlement payments.

Sentiment

No committee transcript or vote record is available, so there is no documented debate or recorded sentiment in the provided materials. Based on the bill’s text and sponsors, it appears to be a fiscally oriented proposal intended to use settlement windfalls for debt reduction. The absence of recorded opposition or support in the materials means the overall sentiment cannot be assessed beyond the bill’s apparent budgetary purpose.

Contention

The main potential point of contention is whether settlement proceeds should be partially reserved for debt reduction rather than being available for the general fund or other appropriations. Critics could view the automatic 5% diversion as limiting legislative flexibility over one-time revenues, while supporters may argue it imposes fiscal discipline and helps pay down state debt. No specific objections or supporters are identified in the provided record.