S6478-2011 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

S6478-2011 Meetings

S6478-2011 Calendars

S6478-2011 Votes

S6478-2011 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 defi-
nition 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 undertak-
en 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 imme-
diately.

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 devas-
tation. 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 govern-
ments 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.

S6478-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         6478
 I N  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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14102-02-2
 
       S. 6478                             2
 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.

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