S08948 Summary:

BILL NOS08948
 
SAME ASSAME AS A11199
 
SPONSORSEPULVEDA
 
COSPNSR
 
MLTSPNSR
 
Add §96, St Fin L
 
Relates to creating the Puerto Rican relief account which shall consist of all recovery and relief funds provided by the federal government to the Commonwealth of Puerto Rico under the Bipartisan Budget Act of 2018.
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S08948 Actions:

BILL NOS08948
 
06/07/2018REFERRED TO RULES
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S08948 Committee Votes:

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S08948 Floor Votes:

There are no votes for this bill in this legislative session.
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S08948 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8948
 
                    IN SENATE
 
                                      June 7, 2018
                                       ___________
 
        Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the state finance law, in relation to creating the Puer-
          to  Rican  relief  account;  and  providing  for  the  repeal  of such
          provisions upon expiration thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The state finance law is amended by adding a new section 96
     2  to read as follows:
     3    §  96. Puerto Rican relief account. 1.  There is hereby established at
     4  the request of the Commonwealth of Puerto Rico and in the custody of the
     5  comptroller a special account to be known as the  "Puerto  Rican  relief
     6  account".
     7    2. The sources of funds shall consist of all recovery and relief funds
     8  provided  by  the  federal government to the Commonwealth of Puerto Rico
     9  under the Bipartisan Budget Act of 2018.
    10    3. (a) The comptroller shall invest such funds in securities in  which
    11  he is authorized by law to invest the funds of the state, except that he
    12  may  invest  in  obligations  consisting of notes, bonds, debentures, or
    13  equipment trust certificates issued under an indenture,  which  are  the
    14  direct  obligations  of,  or in the case of equipment trust certificates
    15  are secured by direct obligations of, a railroad  or  industrial  corpo-
    16  ration,   or  a  corporation  engaged  directly  and  primarily  in  the
    17  production, transportation, distribution, or sale of electricity or gas,
    18  or the operation of telephone or telegraph systems or waterworks, or  in
    19  some  combination of them; provided the obligor corporation is one which
    20  is incorporated under the laws of the United States, or any state there-
    21  of, or of the District of Columbia, and said obligations shall be  rated
    22  at  the time of purchase within the three highest classifications estab-
    23  lished by at least two standard rating services. The maximum amount that
    24  the comptroller may invest in such obligations shall not  exceed  thirty
    25  per  centum of the assets of such account; and provided further that not
    26  more than two and one-half per centum of  the  assets  of  such  account
    27  shall be invested in the obligations of any one corporation of the high-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15970-01-8

        S. 8948                             2

     1  est classification and subsidiary or subsidiaries thereof, that not more
     2  than  two  per centum of the assets of such account shall be invested in
     3  the obligations of any one corporation of the second highest classifica-
     4  tion  and subsidiary or subsidiaries thereof, that not more than one and
     5  one-half per centum of such account shall be invested in the obligations
     6  of any one corporation of the third highest classification  and  subsid-
     7  iary  or  subsidiaries  thereof.  He  shall,  however, be subject to all
     8  terms, conditions, limitations and restrictions imposed by law upon  the
     9  making of such investments. The comptroller shall have full power:
    10    (i) To hold, purchase, sell, assign, transfer or dispose of any of the
    11  securities  or investments, in which any assets of such account shall be
    12  invested, including the proceeds of  such  investments  and  any  monies
    13  belonging to such account, and
    14    (ii)  In  his  or  her  name  as  trustee, to foreclose mortgages upon
    15  default or to take title to real property in such  proceedings  in  lieu
    16  thereof and to lease and sell real property so acquired.
    17    (b)  All  returns  on  any  investments made by the comptroller of any
    18  funds from such account shall be deposited within such account  for  the
    19  sole benefit of the Commonwealth of Puerto Rico.
    20    (c)  The  comptroller  annually  shall  credit to such account regular
    21  interest on the mean amount therein for the preceding year.
    22    (d) The comptroller is authorized to  deduct  any  necessary  adminis-
    23  tration fees for the management of such account.
    24    4.  The  Commonwealth  of  Puerto Rico shall notify the comptroller of
    25  their intention to terminate such account no later than the one  hundred
    26  eightieth day prior to the date such commonwealth requires the return of
    27  all funds from such account.
    28    §  2.  This  act shall take effect immediately and shall expire and be
    29  deemed repealed 5 years after such date.
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