S3918-2011 Actions

• Jun 8, 2011: SIGNED CHAP.70
• May 27, 2011: DELIVERED TO GOVERNOR
• May 23, 2011: returned to senate
• May 23, 2011: passed assembly
• May 23, 2011: ordered to third reading cal.410
• May 23, 2011: substituted for a7151
• Apr 12, 2011: referred to environmental conservation
• Apr 12, 2011: DELIVERED TO ASSEMBLY
• Apr 12, 2011: PASSED SENATE
• Apr 11, 2011: ADVANCED TO THIRD READING
• Apr 6, 2011: 2ND REPORT CAL.
• Apr 5, 2011: 1ST REPORT CAL.302
• Mar 9, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S3918-2011 Meetings

S3918-2011 Calendars

S3918-2011 Votes

S3918-2011 Memo

BILL NUMBER:S3918

TITLE OF BILL:

An act
to amend chapter 307 of the laws of 2005, amending the public
authorities law relating to the special powers of the New York state
environmental facilities corporation, in relation to extending the
effectiveness thereof

PURPOSE OF BILL:

This bill would extend for three years, to September 30, 2014, certain
provisions of sections 1285-j and 1285-m of the Public Authorities
Law ("PAL") relating to the special powers of the Environmental
Facilities Corporation ("EFC").

SUMMARY OF PROVISIONS:

Section 1 of the bill would extend the "sunset" provision of Chapter
307 of the Laws of 2005 through September 30, 2014, thereby continuing
the existing authority of EFC to directly invest Clean Water State
Revolving Fund ("CWSRF") monies and Drinking Water State Revolving
Fund ("DWSRF") monies in any security obligation available to
municipalities under the General Municipal Law ("GML").

Section 2 of the bill would provide an immediate effective date.

EXISTING LAW:

Currently under PAL �� 1285-j(6)(b) and 1285-m(6)(b), certain monies
held in the CWSRF and DWSRF may be invested in obligations permitted
under section 10 of the GML. However, these provisions will be deemed
repealed as of September 30, 2011.

PRIOR LEGISLATIVE HISTORY:

Chapter 307 of the Laws of 2005, which would have expired on September
30, 2008, was extended through September 30, 2011 by Chapter 214 of
the Laws of 2008.

STATEMENT IN SUPPORT:

Over the past decade, the Legislature has assisted EFC in expanding
its investment authorization, in particular with regard to the
collateral eligible to secure public deposits. (See Chapter 413 of
the Laws of 1996, Chapter 327 of the Laws of 1998, and Chapter 121 of
the Laws of 2000, all of which expanded the scope of eligible
investment providers). Chapter 155 of the Laws of 2003 and Chapter 307
of the Laws of 2005 permitted EFC to expand the security available
for certain investments made on behalf of municipalities to include

any security obligation available to municipalities under the GML.
Each of these statutory amendments reduced the risk to participating
municipalities that interest subsidies would fail short of targets by
expanding the universe of eligible providers and eligible collateral.
By continuing Chapter 307, the bill would continue to reduce this
risk and, in addition, would directly boost the prospect for
increased annualized program earnings. Program earnings are
immediately available to support additional projects. Because federal
appropriations for these programs may decline in the future, the bill
is necessary to boost program earnings in order to continue
supporting the future project needs of New York's municipalities.

This bill would allow EFC to continue to invest SRF funds directly in
security obligations under GML � 10. Previously, EFC only had the
authority to invest directly in obligations the interest on which is
excludable from gross income under the Internal Revenue Code. The
bill would allow EFC to continue to enhance its investment options by
taking advantage of the growing market for municipal taxable
securities. By allowing CWSRF and DWSRF assets to be invested in
taxable municipal obligations as well as tax-exempt municipal
obligations, these programs, including the participating
municipalities will benefit from higher investment returns without
diminishing investment credit quality. Continued authorization to
invest CWSRF and DWSRF assets in taxable investments will also
broaden the demand for taxable municipal bonds, including taxable
bonds issued by New York State municipalities.

BUDGET IMPLICATIONS:

The bill would have no impact on the State budget.

EFFECTIVE DATE:

The bill would take effect immediately.

S3918-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         3918
 2011-2012 Regular Sessions
 I N  SENATE
 March 9, 2011
 
 Introduced  by Sen. GRISANTI -- (at request of the Environmental Facili
 ties Corporation) -- read twice and ordered printed, and when  printed
 to  be  committed  to  the  Committee on Corporations, Authorities and
 Commissions
 

AN ACT to amend chapter 307 of the laws of  2005,  amending  the  public
 authorities  law  relating to the special powers of the New York state
 environmental facilities corporation, in  relation  to  extending  the
 effectiveness thereof
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

Section 3 of chapter 307 of the laws of 2005, amending  the
 public  authorities  law  relating to the special powers of the New York
 state environmental facilities corporation, as amended by chapter 214 of
 the laws of 2008, is amended to read as follows:

 

S 3. This act shall take effect immediately and shall  expire  and  be
 deemed repealed September 30, [2011] 2014.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09220-01-1

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