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A06509 Summary:

BILL NOA06509
 
SAME ASSAME AS S05383
 
SPONSORMagnarelli
 
COSPNSR
 
MLTSPNSR
 
Amd 2, Chap 581 of 2005
 
Relates to statutory installment bonds and extending the effectiveness thereof.
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A06509 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6509
 
SPONSOR: Magnarelli
  TITLE OF BILL: An act to amend chapter 581 of the laws of 2005 amending the local finance law relating to statutory installment bonds, in relation to extending the effectiveness thereof   PURPOSE OF THE BILL: The bill would extend to September 30, 2020 provisions relating to stat- utory installment bonds issued to the New York State Environmental Facilities Corporation ("EFC").   SUMMARY OF PROVISIONS: Section 1 of the bill would extend until September 30, 2020 the "sunset" provision of Section 2 of Chapter 581 of the Laws of 2005, thereby extending for an additional three years the provisions of Local Finance Law ("LFL") § 62.10(c) which authorizes local governments to issue stat- utory installment bonds in an amount not to exceed $20 million to EFC at a fixed rate or, if issued in serial maturities, at a set rate for each individual maturity. Section 2 of the bill provides for an immediate effective date.   JUSTIFICATION: EFC administers the Clean Water State Revolving Fund ("CWSRF") and the Drinking Water State Revolving Fund ("DWSRF"). Under these revolving fund programs, EFC provides low cost financial assistance to munici- palities and other entities for water and wastewater infrastructure and other environmental projects. As of September 30, 2016, EFC has issued approximately $17.4 billion in State Revolving Fund Bonds under the CWSRF program and the DWSRF program for the purpose of providing finan- cial assistance to local governments and public benefit corporations. Before 2005, in accordance with the LFL, a borrower receiving EFC financing was required to issue serial bonds to EFC for each maturity; i.e., for a 20 year financing, EFC would receive 20 separate bonds from the community. The issuance of serial bonds caused EFC, and those providing trustee services, excessive servicing cost and substantial time in handling and processing of multiple bonds. This process also resulted in unnecessary bonding costs for EFC's borrowers. A single debt instrument for financings at or under $20 million, such as a statutory installment bond, reduces the costs associated with print- ing, processing and storage. Reduced paper usage achieves environmental benefits, while also reducing the chance of error associated with multi- ple printed bonds. This simplified approach also benefits borrowers in making the financing process more "user friendly" while enhancing the efficient preparation and execution of the bonds.   PRIOR LEGISLATIVE HISTORY: LFL § 62.10(c) was extended until September 30, 2011 by Chapter 213 of the Laws of 2008, until September 30, 2014 by Chapter 69 of the Laws of 2011 and until September 30, 2017 by Chapter 110 of the Laws of 2014.   FISCAL IMPLICATIONS: The bill would have no budget implications to the State.   EFFECTIVE DATE: The bill would take effect immediately.
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A06509 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6509
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 7, 2017
                                       ___________
 
        Introduced  by  M.  of A. MAGNARELLI -- (at request of the Environmental
          Facilities Corporation) -- read once and referred to the Committee  on
          Local Governments
 
        AN  ACT  to  amend  chapter  581  of the laws of 2005 amending the local
          finance law relating to statutory installment bonds,  in  relation  to
          extending the effectiveness thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 2 of chapter 581 of the laws of 2005  amending  the
     2  local finance law relating to statutory installment bonds, as amended by
     3  chapter 110 of the laws of 2014, is amended to read as follows:
     4    §  2.  This act shall take effect immediately and shall remain in full
     5  force and effect until September 30, [2017] 2020, at which time it shall
     6  expire and be deemed repealed.
     7    § 2. This act shall take effect immediately.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09931-01-7
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