Bill S7645-2011

Relates to local government borrowing practices and mandate relief

Relates to local government borrowing practices and mandate relief.

Details

Actions

  • Jun 29, 2012: SIGNED CHAP.91
  • Jun 22, 2012: DELIVERED TO GOVERNOR
  • Jun 18, 2012: returned to senate
  • Jun 18, 2012: passed assembly
  • Jun 18, 2012: ordered to third reading rules cal.339
  • Jun 18, 2012: substituted for a10610
  • Jun 18, 2012: referred to ways and means
  • Jun 18, 2012: DELIVERED TO ASSEMBLY
  • Jun 18, 2012: PASSED SENATE
  • Jun 14, 2012: ORDERED TO THIRD READING CAL.1263
  • Jun 11, 2012: REFERRED TO RULES

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 14, 2012
Ayes (20): Skelos, Alesi, Farley, Fuschillo, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Seward, Breslin, Dilan, Hassell-Thompson, Parker, Perkins, Smith, Stewart-Cousins
Ayes W/R (4): Saland, Sampson, Duane, Montgomery
Excused (1): Krueger

Memo

BILL NUMBER:S7645

TITLE OF BILL: An act to amend the local finance law and chapter 413 of the laws of 1991, amending the local finance law and other laws relating to providing relief to local governments for certain mandated programs and services, in relation to local government borrowing practices and mandate relief

SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill would extend, until 2015, provisions authorizing municipalities to pay the first installment on an issue of serial bonds two years after the date of issuance of such bonds or two years after the date of the first bond anticipation note or notes issued in anticipation of such bonds, whichever is sooner.

Section two extends, until 2015, the authorization to redeem bonds prior to maturity in such amount and manner as may be determined by the finance board of the municipality.

Section three extends, until 2015, municipal authorization to issue variable rate bonds and notes.

Section four extends, until 2015, the suspension of the five percent down payment requirement in the circumstances set forth in LFL 107.00 (d) (9).

Section five extends, until 2015, laws originally added by Chapter 413 ("COPS") and the lease financing of certain public works (General Municipal Law § 109-b), variable rate obligations (LFL § 51.00 (5)), original issue discount bonds (LFL § 57.00 (f)), and the promulgation of rules by the State Comptroller regarding the approval of negotiated sales of bonds (LFL § 57.10).

JUSTIFICATION: The provisions contained within this legislation were enacted to provide municipalities with expanded debt issuance and management options. The extension of these provisions will provide mandate relief and ensure that municipalities continue to realize financial flexibility, while at the same time reserving the Legislature's opportunity to review the implementation in light of changing fiscal conditions.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7645 IN SENATE June 11, 2012 ___________
Introduced by Sen. MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the local finance law and chapter 413 of the laws of 1991, amending the local finance law and other laws relating to providing relief to local governments for certain mandated programs and services, in relation to local government borrowing practices and mandate relief THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph b of section 21.00 of the local finance law, as amended by chapter 186 of the laws of 2009, is amended to read as follows: b. Serial bonds shall mature in annual installments. The first installment shall mature not later than eighteen months after the date of such bonds or two years after the date of the first bond anticipation note or notes issued in anticipation of such bonds, whichever is the earlier, provided, however, that until July fifteenth, two thousand [twelve] FIFTEEN, the first installment shall mature not later than two years after the date of such bonds or two years after the date of the first bond anticipation note or notes issued in anticipation of such bonds, whichever is the earlier. However, if bond anticipation notes are issued in anticipation of bonds and if a portion of such notes or the renewals thereof are redeemed from a source other than the proceeds of such bonds within two years from the date of the first such note or notes and a further portion thereof shall be so redeemed prior to the termination of each twelve months' period succeeding the date such original portion was so redeemed, the first installment of such bonds may, in the alternative, be made to mature not later than five years from the date of the first such note or notes. S 2. Paragraph b of section 53.00 of the local finance law, as amended by chapter 186 of the laws of 2009, is amended to read as follows: b. If such bonds or notes are payable in installments, the install- ments remaining unpaid may be called for redemption only (i) in the inverse order of their maturity or, (ii) in equal proportionate amounts; provided, however, that for bonds issued during the one-year period commencing July first, nineteen hundred eighty-eight, and for bonds issued during the one-year period commencing July first, nineteen
hundred eighty-nine, and for bonds issued during the one-year period commencing July first, nineteen hundred ninety, and for bonds issued during the three-year period commencing July first, nineteen hundred ninety-one, and for bonds issued during the period from July first, nineteen hundred ninety-four up until and including July fifteenth, nineteen hundred ninety-seven and for bonds issued during the period from July fifteenth, nineteen hundred ninety-seven up until and includ- ing July fifteenth, two thousand, and for bonds issued during the period from July fifteenth, two thousand up until and including July fifteenth, two thousand three, and for bonds issued during the period from July fifteenth, two thousand three up until and including July fifteenth, two thousand six, and for bonds issued during the period from July fifteenth, two thousand six up until and including July fifteenth, two thousand nine, and for bonds issued during the period from July fifteenth, two thousand six up until and including July fifteenth, two thousand twelve, AND FOR BONDS ISSUED DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND NINE UP UNTIL AND INCLUDING JULY FIFTEENTH, TWO THOUSAND FIFTEEN, installments remaining unpaid on such bonds may be called for redemption prior to their date of maturity in such amounts, at such times in such manner and pursuant to such terms as may be deter- mined by the finance board of a municipality, school district or district corporation at the time of the issuance thereof. Whenever any bonds or notes are called for redemption prior to the date of their maturity, interest shall cease to be paid thereon after the date for redemption set forth in such call for redemption. The sum to be paid to redeem any unpaid installment prior to its maturity, exclusive of the interest accruing on such installment to the date of redemption, shall in no event be in excess of the lesser amount of either (i) the par value of such installment plus one-half of one per centum of such par value for each calendar year or part thereof elapsing between the date for redemption set forth in such call for redemption and the date of maturity of such installment, provided, however, that such amount shall not exceed one hundred five per centum of such par value, or (ii) the par value of such installment plus the total of all unpaid interest on such installment which would have accrued from the date of redemption to the date of maturity thereof had such installment not been redeemed prior to maturity, except that bonds sold to the state of New York municipal bond bank agency, which are subject to call as hereinbefore authorized, may provide for the payment of a redemption premium not to exceed five per centum of the par value of the bonds to be called, paya- ble on the date of the redemption thereof; provided, however, that for bonds issued during the one-year period commencing July first, nineteen hundred eighty-eight, and for bonds issued during the one-year period commencing July first, nineteen hundred eighty-nine, and for bonds issued during the one-year period commencing July first, nineteen hundred ninety, and for bonds issued during the three-year period commencing July first, nineteen hundred ninety-one, and for bonds issued during the period from July first, nineteen hundred ninety-four up until and including July fifteenth, nineteen hundred ninety-seven, and for bonds issued during the period from July fifteenth, nineteen hundred ninety-seven up until and including July fifteenth, two thousand, and for bonds issued during the period from July fifteenth, two thousand up until and including July fifteenth, two thousand three, and for bonds issued during the period from July fifteenth, two thousand three up until and including July fifteenth, two thousand six, and for bonds issued during the period from July fifteenth, two thousand six up until
and including July fifteenth, two thousand nine, and for bonds issued during the period from July fifteenth, two thousand nine up until and including July fifteenth, two thousand twelve, AND FOR BONDS ISSUED DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND TWELVE UP UNTIL AND INCLUDING JULY FIFTEENTH, TWO THOUSAND FIFTEEN, a municipality, school district, or district corporation may provide for redemption of such bonds prior to the date of their maturity at a price or prices as may be as determined by the issuer of such bonds or notes at the time of the issuance thereof. S 3. The opening paragraph of paragraph a of section 54.90 of the local finance law, as amended by chapter 186 of the laws of 2009, is amended to read as follows: Whenever in the judgment of the finance board the interest of a muni- cipality would be served thereby, the municipality may issue bonds or notes, on or before July fifteenth, two thousand [twelve] FIFTEEN, with interest rates that vary in accordance with a formula or procedure and are subject to a maximum rate of interest set forth or referred to in the bonds or notes and may provide the holders thereof with such rights to require the municipality or other persons to purchase such bonds or notes or renewals thereof from the proceeds of the resale thereof or otherwise from time to time prior to the final maturity of such bonds or notes as the finance board may determine and the municipality may resell, at any time prior to final maturity, any such bonds or notes acquired as a result of the exercise of such rights; provided, however, that at no time shall the total principal amount of bonds and notes issued pursuant to this paragraph (other than bonds and notes bearing interest at rates and for periods of time that are specified at issu- ance) exceed ten percent of the limit prescribed by section 104.00 of this article. S 4. Subdivision 9 of paragraph d of section 107.00 of the local finance law, as amended by chapter 186 of the laws of 2009, is amended to read as follows: 9. Notwithstanding any other provision of law, the financing by any municipality, prior to July fifteenth, two thousand [twelve] FIFTEEN, of any object or purpose which has a period of probable usefulness deter- mined by law, by the issuance of any bonds and notes, including (i) the issuance of bonds or notes, to redeem notes previously issued for the object or purpose for which the bonds or notes are being issued or (ii) the issuance of bonds to refund bonds previously issued for the object or purpose for which bonds are being issued. S 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws of 1991, amending the local finance law and other laws relating to providing relief to local governments for certain mandated programs and services, as amended by chapter 186 of the laws of 2009, are amended to read as follows: (a) section six, sixteen and seventeen of this act shall expire and be deemed repealed on and after July 15, [2012] 2015, and upon such date the amendments made to the provisions of the local finance law by such sections shall also expire and such provisions shall revert to and be read as set out in law on the date immediately preceding the effective date of such sections six, sixteen and seventeen of this act; (e) subdivision (b) of section thirty-five of this act shall expire and be deemed repealed on and after July 15, [2012] 2015; S 6. This act shall take effect immediately.

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