Bill S6478-2011

Relates to temporary alternative methods of financing flood relief expenses

Relates to temporary alternative methods of financing flood relief expenses.

Details

Actions

  • Jun 19, 2012: SUBSTITUTED BY A9211
  • Jun 19, 2012: ORDERED TO THIRD READING CAL.1306
  • Jun 12, 2012: REPORTED AND COMMITTED TO RULES
  • May 23, 2012: REPORTED AND COMMITTED TO FINANCE
  • Feb 14, 2012: REFERRED TO LOCAL GOVERNMENT

Votes

VOTE: COMMITTEE VOTE: - Local Government - May 23, 2012
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein

Memo

BILL NUMBER:S6478

TITLE OF BILL: An act to amend the local finance law, in relation to temporary alternative methods of financing flood relief expenses

PURPOSE: This legislation would provide municipalities and school districts with authority to issue serial bonds to finance certain extraordinary expenses of flood relief incurred as a result of flooding in 2011, and would also provide them with additional flexibility in connection with the issuance of budget notes to finance such expenses.

SUMMARY OF PROVISIONS: Section one of the bill would update the definition of "extraordinary expenses of flood relief' in paragraph a of section 26.10 of the Local Finance Law to apply to certain expenses incurred before July 1, 2012, for public flood relief projects undertaken as a result of flooding which occurred during 2011.

Section two of the bill would amend paragraph b of section 26.10 to enable municipalities and school districts to finance "extraordinary expenses of flood relief' through the issuance of serial bonds to be repaid over no more than 5 years

Section three of this bill states that this act would take effect immediately.

PRIOR LEGISLATIVE HISTORY: New bill, but similar legislation has been enacted several times in the past (see, e.g. L 2006 ch 157).

JUSTIFICATION: Hurricane Irene wound up by most estimates as one of the ten most destructive and deadly hurricanes to hit the United States since 1980. Although it was downgraded to a tropical storm by the time it reached New York, Irene nonetheless caused widespread destruction and some of the worst flooding in recent years. Tropical Storm Irene was quickly followed by Tropical Storm Lee which caused additional devastation. Many municipalities and school districts throughout the State were severely affected by the flooding and the extraordinary costs of repairing the damage are considerable. The bill will help local governments manage the costs of repairing the damage by providing additional financing options.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: The bill would take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6478 IN SENATE February 14, 2012 ___________
Introduced by Sen. BONACIC -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the local finance law, in relation to temporary alterna- tive methods of financing flood relief expenses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of section 26.10 of the local finance law, as amended by chapter 157 of the laws of 2006, is amended to read as follows: a. Definitions. 1. With respect to any municipality which has a calen- dar fiscal year which commenced on the first day of January, two thou- sand [five] ELEVEN, the terms "extraordinary expenses [for] OF flood relief" and "such extraordinary expenses", as used in this section, shall mean the expenses incurred BEFORE THE FIRST DAY OF JULY, TWO THOU- SAND TWELVE for flood relief projects involving the public thorough- fares, public places and projects of such municipality [during any or all of the months of such year] UNDERTAKEN AS A RESULT OF FLOODING OCCURRING DURING TWO THOUSAND ELEVEN, in excess of the normal expenses which would have been incurred for such purposes during such [periods] PERIOD as determined by the finance board of such municipality [and also any interest payments on revenue anticipation notes issued in antic- ipation of the receipt of moneys from the state or federal government pursuant to any state or federal disaster relief act]. In making any such determination, the finance board shall not include as a part of such extraordinary expenses the salaries and wages of regular employees, except for overtime work and work on Sundays and holidays. SUCH EXTRAORDINARY EXPENSES MAY ALSO INCLUDE ANY INTEREST PAYMENTS ON REVENUE ANTICIPATION NOTES ISSUED IN ANTICIPATION OF THE RECEIPT OF MONEYS FROM THE STATE OR FEDERAL GOVERNMENT AS A RESULT OF SUCH FLOODING PURSUANT TO ANY STATE OR FEDERAL DISASTER RELIEF ACT. 2. With respect to any municipality or school district which has a fiscal year which commenced in the year two thousand [five] ELEVEN on or after the first day of March in such year, the terms "extraordinary
expenses [for] OF flood relief [projects]" and "such extraordinary expenses", as used in this section, shall mean the expense incurred BEFORE THE FIRST DAY OF JULY, TWO THOUSAND TWELVE for flood relief projects involving the public thoroughfares, public places and projects of such municipality or school district [during such fiscal year] UNDER- TAKEN AS A RESULT OF FLOODING OCCURRING DURING TWO THOUSAND ELEVEN, in excess of the amounts appropriated for such purposes in the annual budg- et for such fiscal year, or, if no such appropriations were made, then in excess of the average of all expenditures for such purposes during each of the five preceding fiscal years prior to the fiscal year commencing in the year two thousand [five] ELEVEN, as determined by the finance board of such municipality or school district. S 2. Subdivisions 1 and 2 of paragraph b of section 26.10 of the local finance law, as amended by chapter 157 of the laws of 2006, are amended to read as follows: 1. The finance board of a municipality which has a fiscal year which commenced on the first day of January, two thousand [five] ELEVEN, may authorize the issuance of serial bonds [in the] ON OR BEFORE DECEMBER THIRTY-FIRST two thousand [six fiscal year] TWELVE to provide for the payment of all or part of the extraordinary expenses of flood relief [incurred during any or all of the months of two thousand five], to reimburse any fund or account of the municipality from which moneys to pay such extraordinary expenses have been advanced or to replenish any fund or account of the municipality from which such extraordinary expenses have been paid, or any combination of such purposes, notwith- standing that there may have been lack of statutory authority for any such advance or payment from such fund or account. The period of proba- ble usefulness of such objects or purposes shall be five years. Any such serial bonds shall have a maximum maturity of over two years, but the date of final maturity of any such issue shall not extend beyond [the first day of March in the year two thousand eleven as to counties and towns and shall not extend beyond] the thirty-first day of December, two thousand [eleven, as to other municipalities] SEVENTEEN. 2. The finance board of a municipality or school district which has a fiscal year which commenced in the year two thousand [five] ELEVEN on or after the first day of March in such year may authorize the issuance of serial bonds [in the] ON OR BEFORE THE THIRTY-FIRST DAY OF DECEMBER, two thousand [six fiscal year, or in its next succeeding fiscal year] TWELVE, to provide for the payment of all or part of the extraordinary expenses of flood relief [incurred in the two thousand five fiscal year], to reimburse any fund or account of the municipality or school district from which moneys to pay such extraordinary expenses have been advanced or to replenish any fund or account of the municipality or school district from which such extraordinary expenses have been paid, or any combination of such purposes, notwithstanding that there may have been lack of statutory authority for any such advance or payment from such fund or account. The period of probable usefulness of such objects or purposes shall be five years. Any such serial bonds shall have a maximum maturity of over two years, but the date of final maturity of any such issue shall not extend beyond the thirty-first day of December, two thousand [eleven] SEVENTEEN. S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus