Bill Text: NY A07168 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to local government borrowing practices and mandate relief.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2021-06-11 - signed chap.121 [A07168 Detail]
Download: New_York-2021-A07168-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7168 2021-2022 Regular Sessions IN ASSEMBLY April 23, 2021 ___________ Introduced by M. of A. PICHARDO -- read once and referred to the Commit- tee on Local Governments AN ACT to amend the local finance law and chapter 419 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 113 of the laws of 2018, 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 [twenty-one] twenty-four, the first installment shall mature not later 10 than two years after the date of such bonds or two years after the date 11 of the first bond anticipation note or notes issued in anticipation of 12 such bonds, whichever is the earlier. However, if bond anticipation 13 notes are issued in anticipation of bonds and if a portion of such notes 14 or the renewals thereof are redeemed from a source other than the 15 proceeds of such bonds within two years from the date of the first such 16 note or notes and a further portion thereof shall be so redeemed prior 17 to the termination of each twelve months' period succeeding the date 18 such original portion was so redeemed, the first installment of such 19 bonds may, in the alternative, be made to mature not later than five 20 years 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 113 of the laws of 2018, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10356-01-1A. 7168 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, and for bonds issued during the period from 29 July fifteenth, two thousand twenty-one up until and including July 30 fifteenth, two thousand twenty-four, installments remaining unpaid on 31 such bonds may be called for redemption prior to their date of maturity 32 in such amounts, at such times in such manner and pursuant to such terms 33 as may be determined by the finance board of a municipality, school 34 district or district corporation at the time of the issuance thereof. 35 Whenever any bonds or notes are called for redemption prior to the date 36 of their maturity, interest shall cease to be paid thereon after the 37 date for redemption set forth in such call for redemption. The sum to be 38 paid to redeem any unpaid installment prior to its maturity, exclusive 39 of the interest accruing on such installment to the date of redemption, 40 shall in no event be in excess of the lesser amount of either (i) the 41 par value of such installment plus one-half of one per centum of such 42 par value for each calendar year or part thereof elapsing between the 43 date for redemption set forth in such call for redemption and the date 44 of maturity of such installment, provided, however, that such amount 45 shall not exceed one hundred five per centum of such par value, or (ii) 46 the par value of such installment plus the total of all unpaid interest 47 on such installment which would have accrued from the date of redemption 48 to the date of maturity thereof had such installment not been redeemed 49 prior to maturity, except that bonds sold to the state of New York 50 municipal bond bank agency, which are subject to call as hereinbefore 51 authorized, may provide for the payment of a redemption premium not to 52 exceed five per centum of the par value of the bonds to be called, paya- 53 ble on the date of the redemption thereof; provided, however, that for 54 bonds issued during the one-year period commencing July first, nineteen 55 hundred eighty-eight, and for bonds issued during the one-year period 56 commencing July first, nineteen hundred eighty-nine, and for bondsA. 7168 3 1 issued during the one-year period commencing July first, nineteen 2 hundred ninety, and for bonds issued during the three-year period 3 commencing July first, nineteen hundred ninety-one, and for bonds issued 4 during the period from July first, nineteen hundred ninety-four up until 5 and including July fifteenth, nineteen hundred ninety-seven, and for 6 bonds issued during the period from July fifteenth, nineteen hundred 7 ninety-seven up until and including July fifteenth, two thousand, and 8 for bonds issued during the period from July fifteenth, two thousand up 9 until and including July fifteenth, two thousand three, and for bonds 10 issued during the period from July fifteenth, two thousand three up 11 until and including July fifteenth, two thousand six, and for bonds 12 issued during the period from July fifteenth, two thousand six up until 13 and including July fifteenth, two thousand nine, and for bonds issued 14 during the period from July fifteenth, two thousand nine up until and 15 including July fifteenth, two thousand twelve, and for bonds issued 16 during the period from July fifteenth, two thousand twelve up until and 17 including July fifteenth, two thousand fifteen, and for bonds issued 18 during the period from July fifteenth, two thousand fifteen up until and 19 including July fifteenth, two thousand eighteen, and for bonds issued 20 during the period from July fifteenth, two thousand eighteen up until 21 and including July fifteenth, two thousand twenty-one, and for bonds 22 issued during the period from July fifteenth, two thousand twenty-one up 23 until and including July fifteenth, two thousand twenty-four, a munici- 24 pality, school district, or district corporation may provide for redemp- 25 tion of such bonds prior to the date of their maturity at a price or 26 prices as may be as determined by the issuer of such bonds or notes at 27 the time of the issuance thereof. 28 § 3. The opening paragraph of paragraph a of section 54.90 of the 29 local finance law, as amended by chapter 113 of the laws of 2018, is 30 amended to read as follows: 31 Whenever in the judgment of the finance board the interest of a muni- 32 cipality would be served thereby, the municipality may issue bonds or 33 notes, on or before July fifteenth, two thousand [twenty-one] twenty- 34 four, with interest rates that vary in accordance with a formula or 35 procedure and are subject to a maximum rate of interest set forth or 36 referred to in the bonds or notes and may provide the holders thereof 37 with such rights to require the municipality or other persons to 38 purchase such bonds or notes or renewals thereof from the proceeds of 39 the resale thereof or otherwise from time to time prior to the final 40 maturity of such bonds or notes as the finance board may determine and 41 the municipality may resell, at any time prior to final maturity, any 42 such bonds or notes acquired as a result of the exercise of such rights; 43 provided, however, that at no time shall the total principal amount of 44 bonds and notes issued pursuant to this paragraph (other than bonds and 45 notes bearing interest at rates and for periods of time that are speci- 46 fied at issuance) exceed ten percent of the limit prescribed by section 47 104.00 of this article. 48 § 4. Subdivision 9 of paragraph d of section 107.00 of the local 49 finance law, as amended by chapter 113 of the laws of 2018, is amended 50 to read as follows: 51 9. Notwithstanding any other provision of law, the financing by any 52 municipality, prior to July fifteenth, two thousand [twenty-one] twen- 53 ty-four, of any object or purpose which has a period of probable useful- 54 ness determined by law, by the issuance of any bonds and notes, includ- 55 ing (i) the issuance of bonds or notes, to redeem notes previously 56 issued for the object or purpose for which the bonds or notes are beingA. 7168 4 1 issued or (ii) the issuance of bonds to refund bonds previously issued 2 for the object or purpose for which bonds are being issued. 3 § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws 4 of 1991, amending the local finance law and other laws relating to 5 providing relief to local governments for certain mandated programs and 6 services, as amended by chapter 113 of the laws of 2018, are amended to 7 read as follows: 8 (a) [section] sections six, sixteen and seventeen of this act shall 9 expire and be deemed repealed on and after July 15, [2021] 2024, and 10 upon such date the amendments made to the provisions of the local 11 finance law by such sections shall also expire and such provisions shall 12 revert to and be read as set out in law on the date immediately preced- 13 ing the effective date of such sections six, sixteen and seventeen of 14 this act; 15 (e) subdivision (b) of section thirty-five of this act shall expire 16 and be deemed repealed on and after July 15, [2021] 2024; 17 § 6. This act shall take effect immediately.