S T A T E O F N E W Y O R K ________________________________________________________________________ 7604 I N S E N A T E June 6, 2012 ___________ Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public authorities law, in relation to the Nassau county interim finance authority THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Legislative findings and declaration. The legislature here- 2 by finds and declares that a condition of fiscal difficulties continues 3 to exist in the county of Nassau, as evidenced by the declaration of a 4 control period by the Nassau county interim finance authority (NIFA). In 5 accordance with statutory authority, NIFA has approved the county's 6 2012-2015 multi-year financial plan which provides for borrowings by the 7 county to finance the payment of property tax refunds through 2014 to 8 facilitate the county's transition to a structurally-balanced budget in 9 2015. It is hereby further found and declared that the undertaking of 10 such borrowings is in the public interest of the county and the state. 11 It is in the public interest and is the policy of this state to assist 12 municipalities such as the county of Nassau in attempting to provide, 13 without interruption, services essential to their inhabitants while 14 meeting their obligations to the holders of their outstanding securi- 15 ties. The inability of the county of Nassau to finance the payment of 16 property tax refunds would interrupt the provision of essential services 17 to its inhabitants and is a matter of substantial state concern. Permit- 18 ting the county to utilize pre-existing borrowing authorization will 19 avoid this undesirable result and will allow the county to continue to 20 fund essential services such as those provided by its youth board. 21 S 2. Paragraph (e) of subdivision 2 of section 3669 of the public 22 authorities law, as added by chapter 84 of the laws of 2000, is amended 23 to read as follows: 24 (e) The authority shall review the terms of each proposed long-term 25 and short-term borrowing by the county and any covered organization to 26 be effected during any control period, and no such borrowing shall be 27 made during any control period unless it is approved by the authority, 28 PROVIDED, HOWEVER THAT APPROVAL BY THE AUTHORITY SHALL NOT BE REQUIRED EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16030-02-2 S. 7604 2 1 FOR BORROWINGS BY THE COUNTY TO PAY TAX CERTIORARI SETTLEMENTS OR JUDG- 2 MENTS OF ANY KIND AUTHORIZED BY BOND ORDINANCES APPROVED BY THE COUNTY 3 PRIOR TO THE AUTHORITY'S DECLARATION OF A CONTROL PERIOD ON JANUARY 4 TWENTY-SIXTH, TWO THOUSAND ELEVEN. Neither the county nor any covered 5 organization shall be prohibited from issuing bonds or notes to pay 6 outstanding bonds or notes. 7 S 3. Notwithstanding any general, special or local law to the contra- 8 ry, in the event that the county of Nassau is so authorized, without 9 requiring the approval of the Nassau county interim finance authority, 10 to borrow to pay tax certiorari settlements or judgments of any kind 11 authorized by bond ordinances approved by the county prior to the decla- 12 ration by the Nassau county interim finance authority of a control peri- 13 od on January 26, 2011, then the county of Nassau shall provide funding 14 for the Nassau county youth board in an amount not less than six million 15 six hundred thousand dollars annually. 16 S 4. Severability. If any provision of this act or if any application 17 thereof to any person or circumstance is held invalid, the remainder of 18 this act and the application of the provision to other persons and 19 circumstances shall not be affected thereby. 20 S 5. This act shall take effect immediately; provided, however, that 21 section two of this act shall not take effect until Nassau county imple- 22 ments budgetary savings initiatives which will result in savings of at 23 least one hundred million dollars during such county's 2012-2013 fiscal 24 year, and upon such amount being certified by the budget director of the 25 state of New York; and provided further, that the budget director of the 26 state of New York shall notify the legislative bill drafting commission 27 upon the certification required by this section in order that the 28 commission may maintain an accurate and timely effective data base of 29 the official text of the laws of the state of New York in furtherance of 30 effectuating the provisions of section 44 of the legislative law and 31 section 70-b of the public officers law.