Bill Text: NY S07929 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the powers of the municipal bond bank agency.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-03-09 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S07929 Detail]

Download: New_York-2017-S07929-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7929
                    IN SENATE
                                      March 9, 2018
                                       ___________
        Introduced  by  Sen.  RANZENHOFER  --  (at request of the New York State
          Homes and Community Renewal) -- read twice and  ordered  printed,  and
          when printed to be committed to the Committee on Corporations, Author-
          ities and Commissions
        AN ACT to amend the public authorities law, in relation to the powers of
          the state of New York municipal bond bank agency
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "MBBA Technical Corrections Act of 2018".
     3    §  2.  Subdivisions 2 and 10 of section 2432 of the public authorities
     4  law, as amended by section 2 of part N of chapter  56  of  the  laws  of
     5  2010, are amended to read as follows:
     6    (2)  "Bonds"  and  "Notes". The bonds and notes, including any special
     7  program bonds, special school purpose bonds, recovery act  bonds,  [and]
     8  public safety communications bonds, and any bonds and notes issued after
     9  the effective date of the MBBA technical corrections act of two thousand
    10  eighteen,  respectively  issued  by  the  agency pursuant to this title.
    11  Bonds and notes shall not include any tax lien collateralized securities
    12  issued pursuant to this title.
    13    (10) "Debt Service Reserve Fund Requirement". With respect to any debt
    14  service reserve fund created by section twenty-four hundred  thirty-nine
    15  of  this  title  relating  to  bonds other than special program bonds or
    16  special school purpose bonds or special school deficit program bonds  or
    17  recovery  act  bonds  or  public safety communications bonds or bonds or
    18  notes issued after the effective date of the MBBA technical  corrections
    19  act  of two thousand eighteen, as of any particular date of computation,
    20  an amount of money equal to the greatest of the respective amounts,  for
    21  the then current or any succeeding calendar year, of annual debt service
    22  payments  required  to  be  made  to  the  agency on all municipal bonds
    23  purchased with the proceeds of bonds which bonds  are  secured  by  such
    24  debt  service  reserve  fund,  such annual debt service payments for any
    25  calendar year being an amount of money equal to the aggregate of (a) all
    26  interest payable during  such  calendar  year  on  all  municipal  bonds
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14351-01-8
        S. 7929                             2
     1  purchased by the agency and then outstanding on said date of computation
     2  which  are secured by such debt service reserve fund, plus (b) the prin-
     3  cipal amount of all municipal bonds purchased by  the  agency  and  then
     4  outstanding  on said date of computation which mature during such calen-
     5  dar year and are secured by such debt service  reserve  fund;  and  with
     6  respect  to any debt service reserve fund created by section twenty-four
     7  hundred thirty-nine of this title relating to  an  issue  or  issues  of
     8  special  program bonds or special school purpose bonds or special school
     9  deficit program bonds or recovery act bonds or  public  safety  communi-
    10  cations bonds, such amount as shall be determined by the agency.
    11    §  3.  Subdivision 1 of section 2435 of the public authorities law, as
    12  amended by section 4 of part N of chapter 56 of the  laws  of  2010,  is
    13  amended to read as follows:
    14    1.  The agency may purchase, and contract to purchase, municipal bonds
    15  from municipalities at such price or prices, upon such terms and  condi-
    16  tions  and  in  such manner, not inconsistent with the provisions of the
    17  local finance law, as the agency shall deem advisable; provided,  howev-
    18  er, that the average interest rate payable on all municipal bonds (taken
    19  as a group) purchased with the proceeds of an issue of bonds shall equal
    20  or exceed the interest rate on such issue of bonds. The agency shall not
    21  purchase  the  municipal  bonds of any municipality if (i) the aggregate
    22  principal amount thereof, together with the aggregate principal balances
    23  of the municipal bonds of such municipality then outstanding and held by
    24  the agency, exceed an amount equal to ten percent of the aggregate prin-
    25  cipal amount of the statutory authorization at the time for the issuance
    26  of bonds and notes, as provided in section twenty-four  hundred  thirty-
    27  eight  of  this  title,  and (ii) the aggregate principal amount thereof
    28  exceeds an amount equal to fifty  percent  of  the  aggregate  principal
    29  amount  of  all municipal bonds proposed to be so purchased at the time;
    30  provided, however, that this sentence shall  not  apply  to  local  ARRA
    31  bonds  or  local  public  safety  communications bonds or bonds or notes
    32  issued after the effective date of the MBBA technical corrections act of
    33  two thousand eighteen.
    34    § 4. Subdivision 5 of section 2437 of the public authorities  law,  as
    35  amended  by  section  6  of part N of chapter 56 of the laws of 2010, is
    36  amended to read as follows:
    37    (5) Any bonds or notes of the agency other than special program bonds,
    38  special school purpose bonds,  special  school  deficit  program  bonds,
    39  recovery  act bonds [or], public safety communications bonds or bonds or
    40  notes issued after the effective date of the MBBA technical  corrections
    41  act  of two thousand eighteen shall be sold at public sale and from time
    42  to time upon such terms and at such prices as may be determined  by  the
    43  agency,  and  the  agency may pay all expenses, premiums and commissions
    44  which it may deem necessary or advantageous in connection with the issu-
    45  ance and sale thereof. Any special program bonds, special school purpose
    46  bonds, special school deficit program bonds, recovery  act  bonds  [or],
    47  public  safety  communications  bonds or bonds or notes issued after the
    48  effective date of the MBBA technical corrections  act  of  two  thousand
    49  eighteen  shall  be sold at public or private sale and from time to time
    50  upon such terms and at such prices as may be determined by  the  agency,
    51  and  the  agency may pay all expenses, premiums and commissions which it
    52  may deem necessary or advantageous in connection with the  issuance  and
    53  sale thereof provided, however, that special program bonds relating to a
    54  special program agreement entered for the purpose described in paragraph
    55  (b)  of  subdivision one of section twenty-four hundred thirty-five-a of
    56  this title shall be sold on or before June thirtieth, two thousand  one.
        S. 7929                             3
     1  No  special  program bonds, special school purpose bonds, special school
     2  deficit program bonds, or recovery act bonds, or public safety  communi-
     3  cations  bonds  or bonds or notes issued after the effective date of the
     4  MBBA  technical  corrections  act of two thousand eighteen of the agency
     5  may be sold by the agency at private sale, however, unless such sale and
     6  the terms thereof have been approved in writing by (a) the  comptroller,
     7  where  such  sale  is not to the comptroller, or (b) the director of the
     8  budget, where such sale is to the comptroller.
     9    § 5. Subdivision 1 of section 2438 of the public authorities  law,  as
    10  amended  by  chapter  355  of  the  laws  of 2016, is amended to read as
    11  follows:
    12    (1) The agency shall not issue bonds and notes in an aggregate princi-
    13  pal amount at any one time outstanding exceeding  one  billion  dollars,
    14  excluding  tax  lien  collateralized  securities, special school purpose
    15  bonds, special school  deficit  program  bonds,  special  program  bonds
    16  issued to finance the reconstruction, rehabilitation or renovation of an
    17  educational  facility  pursuant  to the provisions of subdivision (b) of
    18  section sixteen of chapter six hundred five of the laws of two thousand,
    19  special program bonds issued to  finance  the  cost  of  a  project  for
    20  design,  reconstruction  or rehabilitation of a school building pursuant
    21  to the provisions of section fourteen of the city of  Syracuse  and  the
    22  board  of  education of the city school district of the city of Syracuse
    23  cooperative school reconstruction act, special program bonds  issued  to
    24  finance  the  cost of a project for design, construction, reconstruction
    25  or rehabilitation of a school building pursuant  to  the  provisions  of
    26  section  thirteen  of  the  Yonkers  city  school district joint schools
    27  construction and modernization act, recovery act  bonds,  public  safety
    28  communications  bonds, bonds or notes issued after the effective date of
    29  the MBBA technical act of two thousand  eighteen  and  bonds  and  notes
    30  issued to refund outstanding bonds and notes.
    31    § 6. This act shall take effect immediately.