Provides that bond anticipation notes issued during calendar years 2010 and 2011 may not extend more than 7 years beyond original date of issuance of such bond notes.
Ayes (55): Addabbo, Avella, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Little, Marcellino, Marchione, Martins, Maziarz, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Ball
Absent (2): Espaillat, Montgomery
Excused (3): Boyle, Diaz, Libous
TITLE OF BILL: An act to amend the local finance law, in relation to bond anticipation notes issued during the calendar years 2010 and 2011
PURPOSE OR GENERAL IDEA OF BILL: This legislation extends the rollover period for bond anticipation notes issued during calendar years 2010 and 2011 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 264 of the Laws of 2012 to extend the rollover period from 2007 and 2008 to 2010 and 2011.
Section 2 of the bill is the effective date.
JUSTIFICATION: Currently, except for bond anticipation notes issued in 2004, 2005, 2007 and 2008, 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 2010 and 2011, will provide municipalities the option of renewing the notes at a later date when a better rate can be secured for the long-term. The bill will save costs to the municipality by providing the municipality with the option to secure a lower interest rate.
LEGISLATIVE HISTORY: New Bill - 2014
FISCAL IMPLICATIONS: None to the State. May result in cost savings to localities.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6817 IN SENATE March 13, 2014 ___________Introduced by Sen. STEWART-COUSINS -- 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 bond anticipation notes issued during the calendar years 2010 and 2011 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 264 of the laws of 2012, is amended to read as follows: 2. renewals of bond anticipation notes issued originally during calen- dar year two thousand
[seven]TEN or two thousand [eight]ELEVEN 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. LBD14031-01-4