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S06610 Summary:
BILL NO | S06610 |
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SAME AS | SAME AS A07398 |
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SPONSOR | KRUEGER |
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COSPNSR | |
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MLTSPNSR | |
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Amd §§54.10, 54.90, 57.00 & 90.00, Loc Fin L; amd §10-a, Chap 868 of 1975; amd §5, Chap 142 of 2004 | |
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Relates to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; amends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof. |
S06610 Actions:
BILL NO | S06610 | |||||||||||||||||||||||||||||||||||||||||||||||||
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05/10/2021 | REFERRED TO CITIES 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/18/2021 | 1ST REPORT CAL.1121 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/20/2021 | 2ND REPORT CAL. | |||||||||||||||||||||||||||||||||||||||||||||||||
05/24/2021 | ADVANCED TO THIRD READING | |||||||||||||||||||||||||||||||||||||||||||||||||
05/25/2021 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
05/25/2021 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
05/25/2021 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
05/25/2021 | substituted for a7398 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/25/2021 | ordered to third reading rules cal.141 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2021 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2021 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/29/2021 | DELIVERED TO GOVERNOR | |||||||||||||||||||||||||||||||||||||||||||||||||
06/29/2021 | SIGNED CHAP.189 |
S06610 Committee Votes:
Go to topS06610 Floor Votes:
Yes
Abbate
Yes
Clark
Yes
Frontus
No
Lalor
Yes
Paulin
Yes
Sillitti
Yes
Abinanti
Yes
Colton
Yes
Galef
Yes
Lavine
Yes
Peoples-Stokes
Yes
Simon
Yes
Anderson
Yes
Conrad
Yes
Gallagher
No
Lawler
Yes
Perry
No
Simpson
No
Angelino
Yes
Cook
No
Gallahan
No
Lemondes
Yes
Pheffer Amato
No
Smith
No
Ashby
ER
Cruz
No
Gandolfo
Yes
Lunsford
Yes
Pichardo
No
Smullen
Yes
Aubry
Yes
Cusick
No
Giglio JA
Yes
Lupardo
Yes
Pretlow
Yes
Solages
No
Barclay
Yes
Cymbrowitz
No
Giglio JM
Yes
Magnarelli
Yes
Quart
Yes
Steck
Yes
Barnwell
Yes
Darling
Yes
Glick
Yes
Mamdani
No
Ra
Yes
Stern
Yes
Barrett
Yes
Davila
Yes
Gonzalez-Rojas
No
Manktelow
Yes
Rajkumar
Yes
Stirpe
Yes
Barron
Yes
De La Rosa
No
Goodell
Yes
McDonald
Yes
Ramos
No
Tague
Yes
Benedetto
No
DeStefano
Yes
Gottfried
No
McDonough
No
Reilly
No
Tannousis
Yes
Bichotte Hermel
Yes
Dickens
Yes
Griffin
Yes
McMahon
Yes
Reyes
Yes
Taylor
No
Blankenbush
Yes
Dilan
No
Gunther
Yes
Meeks
Yes
Richardson
Yes
Thiele
No
Brabenec
Yes
Dinowitz
No
Hawley
No
Mikulin
Yes
Rivera J
Yes
Vanel
Yes
Braunstein
No
DiPietro
Yes
Hevesi
No
Miller B
Yes
Rivera JD
No
Walczyk
Yes
Bronson
No
Durso
Yes
Hunter
No
Miller M
Yes
Rodriguez
Yes
Walker
No
Brown
Yes
Eichenstein
Yes
Hyndman
Yes
Mitaynes
Yes
Rosenthal D
Yes
Wallace
Yes
Burdick
Yes
Englebright
Yes
Jackson
No
Montesano
Yes
Rosenthal L
No
Walsh
Yes
Burgos
Yes
Epstein
Yes
Jacobson
No
Morinello
Yes
Rozic
Yes
Weinstein
Yes
Burke
Yes
Fahy
Yes
Jean-Pierre
Yes
Niou
No
Salka
Yes
Weprin
No
Buttenschon
Yes
Fall
No
Jensen
ER
Nolan
No
Santabarbara
Yes
Williams
No
Byrne
Yes
Fernandez
Yes
Jones
No
Norris
Yes
Sayegh
No
Woerner
No
Byrnes
No
Fitzpatrick
Yes
Joyner
Yes
O'Donnell
No
Schmitt
Yes
Zebrowski
Yes
Cahill
ER
Forrest
Yes
Kelles
Yes
Otis
Yes
Seawright
Yes
Zinerman
Yes
Carroll
No
Friend
Yes
Kim
No
Palmesano
Yes
Septimo
Yes
Mr. Speaker
‡ Indicates voting via videoconference
S06610 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 6610 2021-2022 Regular Sessions IN SENATE May 10, 2021 ___________ Introduced by Sen. KRUEGER -- (at request of the NYC Office of Manage- ment and Budget) -- read twice and ordered printed, and when printed to be committed to the Committee on Cities 1 AN ACT to amend the local finance law, in relation to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates or interest, interest rate exchange agreements of the city of New York, and the refunding of bonds; to amend chapter 868 of the laws of 1975 constituting the New York state financial emergency act for the city of New York, in relation to a pledge and agreement of the state; and to amend chapter 142 of the laws of 2004, amending the local finance law relating to interest rate exchange agreements of the city of New York and refunding bonds of such city, in relation to the effectiveness thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The opening paragraph of paragraph (a) of section 54.10 of 2 the local finance law, as amended by section 1 of item QQ of subpart B 3 of part XXX of chapter 58 of the laws of 2020, is amended to read as 4 follows: 5 To facilitate the marketing of any issue of bonds or notes of the city 6 of New York issued on or before June thirtieth, two thousand [twenty-7one] twenty-two, the mayor and comptroller of such city may, subject to 8 the approval of the state comptroller and the limitations on private 9 sales of bonds and notes, respectively, provided by law: 10 § 2. The closing paragraph of paragraph a of section 54.90 of the 11 local finance law, as amended by section 2 of item QQ of subpart B of 12 part XXX of chapter 58 of the laws of 2020, is amended to read as 13 follows: 14 Notwithstanding the foregoing, whenever in the judgment of the finance 15 board of the city of New York the interest of such city would be served 16 thereby, the city of New York may without further approval issue bonds EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09916-01-1S. 6610 2 1 or notes, on or before July fifteenth, two thousand [twenty-one] twen- 2 ty-two, with interest rates that vary in accordance with a formula or 3 procedure and are subject to a maximum rate of interest set forth or 4 referred to in the bonds or notes and may provide the holders thereof 5 with such rights to require the city or other persons to purchase such 6 bonds or notes or renewals thereof from the proceeds of the resale ther- 7 eof or otherwise from time to time prior to the final maturity of such 8 bonds or notes as the finance board of the city of New York may deter- 9 mine and the city may resell, at any time prior to final maturity, any 10 such bonds or notes acquired as a result of the exercise of such rights; 11 provided, however, that at no time shall the total principal amount of 12 bonds and notes issued by the city of New York pursuant to this para- 13 graph (other than bonds and notes (1) bearing interest at rates and for 14 periods of time that are specified without reference to future events or 15 contingencies, or (2) described in section 136.00 of this article) 16 exceed twenty-five percent of the limit prescribed by section 104.00 of 17 this article. 18 § 3. The opening paragraph of subdivision 1 of paragraph d of section 19 54.90 of the local finance law, as amended by section 3 of item QQ of 20 subpart B of part XXX of chapter 58 of the laws of 2020, is amended to 21 read as follows: 22 On or before July fifteenth, two thousand [twenty-one] twenty-two the 23 mayor and comptroller of the city of New York may: 24 § 4. The opening paragraph of paragraph a of section 57.00 of the 25 local finance law, as amended by section 4 of item QQ of subpart B of 26 part XXX of chapter 58 of the laws of 2020, is amended to read as 27 follows: 28 Bonds shall be sold only at public sale and in accordance with the 29 procedure set forth in this section and sections 58.00 and 59.00 of this 30 title, except as otherwise provided in this paragraph. Bonds may be sold 31 at private sale to the United States government or any agency or instru- 32 mentality thereof, the state of New York municipal bond bank agency, to 33 any sinking fund or pension fund of the municipality, school district or 34 district corporation selling such bonds, or, in the case of sales by the 35 city of New York prior to July first, two thousand [twenty-one] twenty- 36 two, also to the municipal assistance corporation for the city of New 37 York or to any other purchaser with the consent of the mayor and the 38 comptroller of such city and approval of the state comptroller, or, in 39 the case of sales by the county of Nassau prior to December thirty- 40 first, two thousand seven, also to the Nassau county interim finance 41 authority with the approval of the state comptroller, or, in the case of 42 sales by the city of Buffalo prior to June thirtieth, two thousand thir- 43 ty-seven, also to the Buffalo fiscal stability authority with the 44 approval of the state comptroller, or, in the case of bonds or other 45 obligations of a municipality issued for the construction of any sewage 46 treatment works, sewage collecting system, storm water collecting 47 system, water management facility, air pollution control facility or 48 solid waste disposal facility, also to the New York state environmental 49 facilities corporation, or, in the case of bonds or other obligations of 50 a school district or a city acting on behalf of a city school district 51 in a city having a population in excess of one hundred twenty-five thou- 52 sand but less than one million inhabitants according to the latest 53 federal census, issued to finance or refinance the cost of school 54 district capital facilities or school district capital equipment, as 55 defined in section sixteen hundred seventy-six of the public authorities 56 law, also to the dormitory authority of the state of New York. Bonds ofS. 6610 3 1 a river improvement or drainage district established by or under the 2 supervision of the department of environmental conservation may be sold 3 at private sale to the state of New York as investments for any funds of 4 the state which by law may be invested, provided, however, that the rate 5 of interest on any such bonds so sold shall be approved by the water 6 power and control commission and the state comptroller. Bonds may also 7 be sold at private sale as provided in section 63.00 of this title. No 8 bonds shall be sold on option or on a deferred payment plan, except that 9 options to purchase, effective for a period not exceeding one year, may 10 be given: 11 § 5. Subdivision 3 of paragraph g of section 90.00 of the local 12 finance law, as amended by section 5 of item QQ of subpart B of part XXX 13 of chapter 58 of the laws of 2020, is amended to read as follows: 14 3. Outstanding bonds may, pursuant to a power to recall and redeem or 15 with the consent of the holders thereof, be exchanged for refunding 16 bonds (i) if the refunding bonds are to bear interest at a rate equal to 17 or lower than that borne by the bonds to be refunded or (ii) if, in the 18 case of the city of New York prior to July first, two thousand [twenty-19one] twenty-two, the annual payment required for principal and interest 20 on the refunding bond is less than the annual payment required for prin- 21 cipal and interest on the bond to be refunded, in each case such annual 22 payments to be determined by dividing the total principal and interest 23 payments due over the remaining life of the bond by the number of years 24 to maturity of the bond or (iii) if the bonds to be refunded were issued 25 by the city of New York after June thirtieth, nineteen hundred seventy- 26 eight and prior to July first, two thousand [twenty-one] twenty-two and 27 contain covenants referring to the existence of the New York state 28 financial control board for the city of New York or any other covenants 29 relating to matters other than the prompt payment of principal and 30 interest on the obligations when due and the refunding bond omits or 31 modifies any such covenant. 32 § 6. Subdivision 1 of section 10-a of chapter 868 of the laws of 1975, 33 constituting the New York state financial emergency act for the city of 34 New York, as amended by section 6 of item QQ of subpart B of part XXX of 35 chapter 58 of the laws of 2020, is amended to read as follows: 36 1. In the event that after the date on which the provisions of this 37 act become operative, any notes or bonds are issued by the city prior to 38 July 1, [2021] 2022, or any bonds are issued by a state financing agen- 39 cy, the state of New York hereby authorizes the city and authorizes and 40 requires such state financing agency to include a pledge and agreement 41 of the state of New York in any agreement made by the city or such state 42 financing agency with holders or guarantors of such notes or bonds that 43 the state will not take any action which will (a) substantially impair 44 the authority of the board during a control period, as defined in subdi- 45 vision twelve of section two of this act as in effect on the date such 46 notes or bonds are issued (i) to approve, disapprove, or modify any 47 financial plan or financial plan modification, including the revenue 48 projections (or any item thereof) contained therein, subject to the 49 standards set forth in paragraphs a, c, d, e and f of subdivision one of 50 section eight of this act as in effect on the date such notes or bonds 51 are issued and paragraph b of such subdivision as in effect from time to 52 time, (ii) to disapprove a contract of the city or a covered organiza- 53 tion if the performance of such contract would be inconsistent with the 54 financial plan or to approve or disapprove proposed short-term or long- 55 term borrowing of the city or a covered organization or any agreement or 56 other arrangement referred to in subdivision four of section seven ofS. 6610 4 1 this act, or (iii) to establish and adopt procedures with respect to the 2 deposit in and disbursement from the board fund of city revenues; (b) 3 substantially impair the authority of the board to review financial 4 plans, financial plan modifications, contracts of the city or the 5 covered organizations and proposed short-term or long-term borrowings of 6 the city and the covered organizations; (c) substantially impair the 7 independent maintenance of a separate fund for the payment of debt 8 service on bonds and notes of the city; (d) alter the composition of the 9 board so that the majority of the voting members of the board are not 10 officials of the state of New York elected in a state-wide election or 11 appointees of the governor; (e) terminate the existence of the board 12 prior to the time to be determined in accordance with section thirteen 13 of this act as in effect on the date such notes or bonds are issued; (f) 14 substantially modify the requirement that the city's financial state- 15 ments be audited by a nationally recognized independent certified public 16 accounting firm or consortium of firms and that a report on such audit 17 be furnished to the board; or (g) alter the definition of a control 18 period set forth in subdivision twelve of section two of this act, as in 19 effect on the date such notes or bonds are issued, or substantially 20 alter the authority of the board, as set forth in said subdivision to 21 reimpose or terminate a control period; provided, however, that the 22 foregoing pledge and agreement shall be of no further force and effect 23 if at any time (i) there is on deposit in a separate trust account with 24 a bank, trust company or other fiduciary sufficient moneys or direct 25 obligations of the United States or obligations guaranteed by the United 26 States, the principal of and/or interest on which will provide moneys to 27 pay punctually when due at maturity or prior to maturity by redemption, 28 in accordance with their terms, all principal of and interest on all 29 outstanding notes and bonds of the city or such state financing agency 30 containing this pledge and agreement and irrevocable instructions from 31 the city or such state financing agency to such bank, trust company or 32 other fiduciary for such payment of such principal and interest with 33 such moneys shall have been given, or (ii) such notes and bonds, togeth- 34 er with interest thereon, have been paid in full at maturity or have 35 otherwise been refunded, redeemed, defeased, or discharged; and provided 36 further that the foregoing pledge and agreement shall be of full force 37 and effect upon its inclusion in any agreement made by the city or state 38 financing agency with holders or guarantors of such notes or bonds. 39 Upon payment for such obligations issued pursuant to this act by the 40 original and all subsequent holders inclusion of the foregoing covenant 41 shall be deemed conclusive evidence of valuable consideration received 42 by the state and city for such covenant and of reliance upon such pledge 43 and agreement by any such holder. The state hereby grants any such bene- 44 fited holder the right to sue the state in a court of competent juris- 45 diction and enforce this covenant and agreement and waives all rights of 46 defense based on sovereign immunity in such an action or suit. 47 § 7. Section 5 of chapter 142 of the laws of 2004, amending the local 48 finance law relating to interest rate exchange agreements of the city of 49 New York and refunding bonds of such city, as amended by section 7 of 50 item QQ of subpart B of part XXX of chapter 58 of the laws of 2020, is 51 amended to read as follows: 52 § 5. This act shall take effect immediately, provided, that section 53 three of this act shall expire and be deemed repealed July 15, [2021] 54 2022. 55 § 8. Separability. If any clause, sentence, paragraph, section or part 56 of this act shall be adjudged by any court of competent jurisdiction toS. 6610 5 1 be invalid, such judgment shall not affect, impair or invalidate the 2 remainder thereof, but shall be confined in its operation to the clause, 3 sentence, paragraph, section or part thereof directly involved in the 4 controversy in which such judgment shall have been rendered. 5 § 9. This act shall take effect immediately.