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A07381 Summary:

BILL NOA07381
 
SAME ASSAME AS S07066
 
SPONSORBurke
 
COSPNSROtis
 
MLTSPNSR
 
Amd 3, Chap 492 of 1993
 
Extends certain provisions relating to installment loans and obligations evidencing installment loans to 2026.
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A07381 Actions:

BILL NOA07381
 
05/18/2023referred to local governments
05/31/2023reported referred to ways and means
06/01/2023reported referred to rules
06/05/2023reported
06/05/2023rules report cal.552
06/05/2023substituted by s7066
 S07066 AMEND= RYAN
 05/17/2023REFERRED TO LOCAL GOVERNMENT
 05/30/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 05/30/2023ORDERED TO THIRD READING CAL.1410
 06/05/2023PASSED SENATE
 06/05/2023DELIVERED TO ASSEMBLY
 06/05/2023referred to ways and means
 06/05/2023substituted for a7381
 06/05/2023ordered to third reading rules cal.552
 06/05/2023passed assembly
 06/05/2023returned to senate
 08/11/2023DELIVERED TO GOVERNOR
 08/23/2023SIGNED CHAP.342
 05/17/2023REFERRED TO LOCAL GOVERNMENT
 05/30/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 05/30/2023ORDERED TO THIRD READING CAL.1410
 06/05/2023PASSED SENATE
 06/05/2023DELIVERED TO ASSEMBLY
 06/05/2023referred to ways and means
 06/05/2023substituted for a7381
 06/05/2023ordered to third reading rules cal.552
 06/05/2023passed assembly
 06/05/2023returned to senate
 08/11/2023DELIVERED TO GOVERNOR
 08/23/2023SIGNED CHAP.342
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A07381 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7381
 
SPONSOR: Burke
  TITLE OF BILL: An act to amend chapter 492 of the laws of 1993 amending the local finance law relating to installment loans and obligations evidencing installment loans, in relation to extending the effectiveness thereof   PURPOSE OF THE BILL: The bill would extend to September 30, 2026 provisions relating to bonds or notes bonds issued to the New York State Environmental Facilities Corporation ("EFC") evidencing installment loans from the Clean Water State Revolving Fund ("CWSRF") and the Drinking Water State Revolving Fund ("DWSRF").   SUMMARY OF PROVISIONS: Section 1 of the bill would extend until September 30, 2026 the "sunset" provision of Section 3 of Chapter 492 of the Laws, of 1993, thereby extending for an additional three years the provisions of Local Finance Law ("LFL") § 169.00 which authorizes municipalities to issue their bonds or notes evidencing installment loans to EFC in order to obtain financial assistance from the CWSRF and the DWSRF. Section 2 of the bill provides for an immediate effective date.   JUSTIFICATION: EFC administers the CWSRF and the DWSRF. Under these revolving fund programs, EFC provides low cost financial assistance to municipalities and other entities for water and wastewater infrastructure and other environmental projects. As of September 30, 2022, EFC has issued approx- imately $21 billion in State Revolving Fund Bonds under the CWSRF program and the DWSRF program for the purpose of providing financial assistance to local governments and public benefit corporations. Under both the CWSRF and the DWSRF, EFC is authorized to provide assist- ance in several forms to recipients for the purpose of financing or refinancing their capital projects. Normally, when financing is provided to a municipality under either the CWSRF or the DWSRF, EFC receives a general obligation bond or note from the municipality as evidence of its obligation to repay such financing. Installment loam, through the use of a grid note, allow municipalities to draw financing proceeds on a cost-incurred basis without having to issue a separate bond or note to EFC for each amount advanced. Without grid notes, a municipality would be required to "close" a new loan each time it requested funds. The resultant transactional costs could be prohibitive. The use of grid notes was authorized for the CWSRF by Chap- ter 492 of the Laws of 1993, and for the DWSRF by Chapter 304 of the Laws of 1997. The use of grid notes in EFC's short-term financing program has been an unqualified success in saving municipalities money. Hundreds of coun- ties, cities, towns and villages throughout New York have successfully utilized grid notes to secure short-term CWSRF or DWSRF financing. The use of grid notes has provided recipients with flexibility and savings, and helped make low-cost financing readily available for financing plan- ning and design costs, as well as actual construction, and, in many cases, interest-free "bridge" financing for municipalities which antic- ipate receiving grants or other funding for, a project.   PRIOR LEGISLATIVE HISTORY: Chapter 492 of the Laws of 1993 enacted LFL § 169.00 and applied initially only to the CWSRF. Chapter 304 of the Laws of 1997 extended the application of LFL § 169.00 to the DWSRF. By its terms, Chapter 304 of the Laws of 1997 expires the same date as Chapter 492 of the Laws of 1993. Chapter 492 of the Laws of 1993, which would have expired on June 30, 1996, was extended until June 30, 1999 by Chapter 250 of the Laws of 1996. It has been extended every three years since 1999, until September 30, 2002 by Chapter 122 of the Laws of 1999; until September 30, 2005 by Chapter 339 of the Laws of 2002; until September 30, 2008 by Chapter 628 of the Laws of 2005; until September 30, 2011 by Chapter 212 of the Laws of 2008; until September 30, 2014 by Chapter 41 of the Laws of 2011; until September 30, 2017 by Chapter 111 of the Laws of 2014; until September 30, 2020 by Chapter 46 of the Laws of 2017; and until Septem- ber 30, 2023 by Chapter 58 of the laws of 2020.   FISCAL IMPLICATIONS: The bill would have no budget implications to the State.   EFFECTIVE DATE: The bill would take effect immediately.
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A07381 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7381
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 18, 2023
                                       ___________
 
        Introduced by M. of A. BURKE -- (at request of the Environmental Facili-
          ties  Corporation) -- read once and referred to the Committee on Local
          Governments
 
        AN ACT to amend chapter 492 of the  laws  of  1993  amending  the  local
          finance  law  relating to installment loans and obligations evidencing
          installment loans, 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 3 of chapter 492 of the laws of 1993, amending the
     2  local finance law relating to installment loans and obligations evidenc-
     3  ing installment loans, as amended by section 1 of item A of subpart A of
     4  part XXX of chapter 58 of the laws  of  2020,  is  amended  to  read  as
     5  follows:
     6    §  3.  This act shall take effect immediately and shall remain in full
     7  force and effect until September 30, [2023] 2026, at which time it shall
     8  be deemed repealed.
     9    § 2. This act shall take effect immediately.
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06155-01-3
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