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Active List: May 30, 2012 , Floor Calendar: May 22, 2012 , Floor Calendar: May 23, 2012 , Floor Calendar: May 30, 2012

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Memo

BILL NUMBER:S6634A              REVISED 05/23/12

TITLE OF BILL: An act to amend the local finance law, in relation to bond anticipation notes issued during the calendar years 2007 and 2008

PURPOSE OR GENERAL IDEA OF BILL: This legislation extends the rollover period for bond anticipation notes issued during calendar years 2007 and 2008 to not more than seven years beyond the original date of issue.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends subparagraph 2 of paragraph b of Section 23.00 of the Local Finance Law as amended by Chapter 386 of the Laws of 2010 to extend the rollover period from 2004 and 2005 to 2007 and 2008.

Section 2 of the bill is the effective date.

JUSTIFICATION: Currently, except for bond anticipation notes issued in 2004 or 2005, local governments are authorized to extend or roll over bond anticipation notes for only up to 5 years. At the end of the period, the bond anticipation notes must be retired or converted into long-term debt. This legislation, by extending the rollover period for bond anticipation notes issued during calendar years 2007 and 2008, will provide municipalities the option of renewing the notes at a later date to shop around for a better rate for the long-term, thereby lowering costs to the municipality.

LEGISLATIVE HISTORY: New Bill - 2012.

FISCAL IMPLICATIONS: None. May result in cost savings to localities.

EFFECTIVE DATE: This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

6634--A
Cal. No. 696

IN SENATE

March 7, 2012
___________

Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local  Government
  -- reported favorably from said committee, ordered to first and second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

AN ACT to amend the local finance law, in relation to bond  anticipation
  notes issued during the calendar years 2007 and 2008

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

  Section 1. Subparagraph 2 of paragraph b of section 23.00 of the local
finance law, as amended by chapter 386 of the laws of 2010,  is  amended
to read as follows:
  2. renewals of bond anticipation notes issued originally during calen-
dar  year two thousand [four] SEVEN or two thousand [five] EIGHT may not
extend more than seven years beyond the original date of issue  of  such
bond anticipation notes.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14896-02-2