Bill Text: NY S07856 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to local government borrowing practices and mandate relief.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-30 - SUBSTITUTED BY A10349 [S07856 Detail]
Download: New_York-2017-S07856-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7856--A Cal. No. 685 IN SENATE March 5, 2018 ___________ Introduced by Sen. MARCHIONE -- 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 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: 1 Section 1. Paragraph b of section 21.00 of the local finance law, as 2 amended by chapter 77 of the laws of 2015, is amended to read as 3 follows: 4 b. Serial bonds shall mature in annual installments. The first 5 installment shall mature not later than eighteen months after the date 6 of such bonds or two years after the date of the first bond anticipation 7 note or notes issued in anticipation of such bonds, whichever is the 8 earlier, provided, however, that until July fifteenth, two thousand 9 [eighteen] twenty-one, the first installment shall mature not later than 10 two years after the date of such bonds or two years after the date of 11 the first bond anticipation note or notes issued in anticipation of such 12 bonds, whichever is the earlier. However, if bond anticipation notes are 13 issued in anticipation of bonds and if a portion of such notes or the 14 renewals thereof are redeemed from a source other than the proceeds of 15 such bonds within two years from the date of the first such note or 16 notes and a further portion thereof shall be so redeemed prior to the 17 termination of each twelve months' period succeeding the date such 18 original portion was so redeemed, the first installment of such bonds 19 may, in the alternative, be made to mature not later than five years 20 from the date of the first such note or notes. 21 § 2. Paragraph b of section 53.00 of the local finance law, as amended 22 by chapter 77 of the laws of 2015, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14961-02-8S. 7856--A 2 1 b. If such bonds or notes are payable in installments, the install- 2 ments remaining unpaid may be called for redemption only (i) in the 3 inverse order of their maturity or, (ii) in equal proportionate amounts; 4 provided, however, that for bonds issued during the one-year period 5 commencing July first, nineteen hundred eighty-eight, and for bonds 6 issued during the one-year period commencing July first, nineteen 7 hundred eighty-nine, and for bonds issued during the one-year period 8 commencing July first, nineteen hundred ninety, and for bonds issued 9 during the three-year period commencing July first, nineteen hundred 10 ninety-one, and for bonds issued during the period from July first, 11 nineteen hundred ninety-four up until and including July fifteenth, 12 nineteen hundred ninety-seven and for bonds issued during the period 13 from July fifteenth, nineteen hundred ninety-seven up until and includ- 14 ing July fifteenth, two thousand, and for bonds issued during the period 15 from July fifteenth, two thousand up until and including July fifteenth, 16 two thousand three, and for bonds issued during the period from July 17 fifteenth, two thousand three up until and including July fifteenth, two 18 thousand six, and for bonds issued during the period from July 19 fifteenth, two thousand six up until and including July fifteenth, two 20 thousand nine, and for bonds issued during the period from July 21 fifteenth, two thousand six up until and including July fifteenth, two 22 thousand twelve, and for bonds issued during the period from July 23 fifteenth, two thousand nine up until and including July fifteenth, two 24 thousand fifteen, and for bonds issued during the period from July 25 fifteenth, two thousand fifteen up until and including July fifteenth, 26 two thousand eighteen, and for bonds issued during the period from July 27 fifteenth, two thousand eighteen up until and including July fifteenth, 28 two thousand twenty-one, installments remaining unpaid on such bonds may 29 be called for redemption prior to their date of maturity in such 30 amounts, at such times in such manner and pursuant to such terms as may 31 be determined by the finance board of a municipality, school district or 32 district corporation at the time of the issuance thereof. Whenever any 33 bonds or notes are called for redemption prior to the date of their 34 maturity, interest shall cease to be paid thereon after the date for 35 redemption set forth in such call for redemption. The sum to be paid to 36 redeem any unpaid installment prior to its maturity, exclusive of the 37 interest accruing on such installment to the date of redemption, shall 38 in no event be in excess of the lesser amount of either (i) the par 39 value of such installment plus one-half of one per centum of such par 40 value for each calendar year or part thereof elapsing between the date 41 for redemption set forth in such call for redemption and the date of 42 maturity of such installment, provided, however, that such amount shall 43 not exceed one hundred five per centum of such par value, or (ii) the 44 par value of such installment plus the total of all unpaid interest on 45 such installment which would have accrued from the date of redemption to 46 the date of maturity thereof had such installment not been redeemed 47 prior to maturity, except that bonds sold to the state of New York 48 municipal bond bank agency, which are subject to call as hereinbefore 49 authorized, may provide for the payment of a redemption premium not to 50 exceed five per centum of the par value of the bonds to be called, paya- 51 ble on the date of the redemption thereof; provided, however, that for 52 bonds issued during the one-year period commencing July first, nineteen 53 hundred eighty-eight, and for bonds issued during the one-year period 54 commencing July first, nineteen hundred eighty-nine, and for bonds 55 issued during the one-year period commencing July first, nineteen 56 hundred ninety, and for bonds issued during the three-year periodS. 7856--A 3 1 commencing July first, nineteen hundred ninety-one, and for bonds issued 2 during the period from July first, nineteen hundred ninety-four up until 3 and including July fifteenth, nineteen hundred ninety-seven, and for 4 bonds issued during the period from July fifteenth, nineteen hundred 5 ninety-seven up until and including July fifteenth, two thousand, and 6 for bonds issued during the period from July fifteenth, two thousand up 7 until and including July fifteenth, two thousand three, and for bonds 8 issued during the period from July fifteenth, two thousand three up 9 until and including July fifteenth, two thousand six, and for bonds 10 issued during the period from July fifteenth, two thousand six up until 11 and including July fifteenth, two thousand nine, and for bonds issued 12 during the period from July fifteenth, two thousand nine up until and 13 including July fifteenth, two thousand twelve, and for bonds issued 14 during the period from July fifteenth, two thousand twelve up until and 15 including July fifteenth, two thousand fifteen, and for bonds issued 16 during the period from July fifteenth, two thousand fifteen up until and 17 including July fifteenth, two thousand eighteen, and for bonds issued 18 during the period from July fifteenth, two thousand eighteen up until 19 and including July fifteenth, two thousand twenty-one, a municipality, 20 school district, or district corporation may provide for redemption of 21 such bonds prior to the date of their maturity at a price or prices as 22 may be as determined by the issuer of such bonds or notes at the time of 23 the issuance thereof. 24 § 3. The opening paragraph of paragraph a of section 54.90 of the 25 local finance law, as amended by chapter 77 of the laws of 2015, is 26 amended to read as follows: 27 Whenever in the judgment of the finance board the interest of a muni- 28 cipality would be served thereby, the municipality may issue bonds or 29 notes, on or before July fifteenth, two thousand [eighteen] twenty-one, 30 with interest rates that vary in accordance with a formula or procedure 31 and are subject to a maximum rate of interest set forth or referred to 32 in the bonds or notes and may provide the holders thereof with such 33 rights to require the municipality or other persons to purchase such 34 bonds or notes or renewals thereof from the proceeds of the resale ther- 35 eof or otherwise from time to time prior to the final maturity of such 36 bonds or notes as the finance board may determine and the municipality 37 may resell, at any time prior to final maturity, any such bonds or notes 38 acquired as a result of the exercise of such rights; provided, however, 39 that at no time shall the total principal amount of bonds and notes 40 issued pursuant to this paragraph (other than bonds and notes bearing 41 interest at rates and for periods of time that are specified at issu- 42 ance) exceed ten percent of the limit prescribed by section 104.00 of 43 this article. 44 § 4. Subdivision 9 of paragraph d of section 107.00 of the local 45 finance law, as amended by chapter 77 of the laws of 2015, is amended to 46 read as follows: 47 9. Notwithstanding any other provision of law, the financing by any 48 municipality, prior to July fifteenth, two thousand [eighteen] twenty- 49 one, of any object or purpose which has a period of probable usefulness 50 determined by law, by the issuance of any bonds and notes, including (i) 51 the issuance of bonds or notes, to redeem notes previously issued for 52 the object or purpose for which the bonds or notes are being issued or 53 (ii) the issuance of bonds to refund bonds previously issued for the 54 object or purpose for which bonds are being issued. 55 § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws 56 of 1991, amending the local finance law and other laws relating toS. 7856--A 4 1 providing relief to local governments for certain mandated programs and 2 services, as amended by chapter 77 of the laws of 2015, are amended to 3 read as follows: 4 (a) section six, sixteen and seventeen of this act shall expire and be 5 deemed repealed on and after July 15, [2018] 2021, and upon such date 6 the amendments made to the provisions of the local finance law by such 7 sections shall also expire and such provisions shall revert to and be 8 read as set out in law on the date immediately preceding the effective 9 date of such sections six, sixteen and seventeen of this act; 10 (e) subdivision (b) of section thirty-five of this act shall expire 11 and be deemed repealed on and after July 15, [2018] 2021; 12 § 6. This act shall take effect immediately.
