New York State Assembly

 
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A06662 Summary:

A06662 Actions:

A06662 Committee Votes:

Committee:CITIES   Chair:Benedetto      
DATE:04/25/2017AYE/NAY:13/0  Action: Favorable refer to committee Ways and Means        Correction Date:05/10/2017
Benedetto
Aye
Castorina
Aye
Crespo
Aye
Goodell
Aye
Weprin
Abstained
Brabenec
Absent
Braunstein
Aye
Norris
Aye
Kearns
Aye
Mayer
Aye
McDonald
Aye
Pichardo
Aye
Dilan
Aye
Carroll
Aye
Wright
Aye

Committee:WAYS AND MEANS   Chair:Farrell      
DATE:05/02/2017AYE/NAY:33/0  Action: Favorable         
Farrell
Aye
Oaks
Aye
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Excused
Fitzpatrick
Aye
Weinstein
Aye
Hawley
Aye
Glick
Aye
Malliotakis
Aye
Nolan
Aye
Walter
Aye
Pretlow
Aye
Montesano
Aye
Perry
Aye
Curran
Aye
Colton
Aye
Ra
Aye
Cook
Aye
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Moya
Aye
Weprin
Abstained
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye

A06662 Floor Votes:

A06662 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6662
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 13, 2017
                                       ___________
 
        Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
          tee on Cities
 
        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  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;  to  amend 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 chapter 78 of the laws of 2016,  is
     3  amended to read as follows:
     4    To facilitate the marketing of any issue of bonds or notes of the city
     5  of New York issued on or before June thirtieth, two thousand [seventeen]
     6  eighteen,  the  mayor  and  comptroller of such city may, subject to the
     7  approval of the state comptroller and the limitations on  private  sales
     8  of bonds and notes, respectively, provided by law:
     9    §  2.  The  closing  paragraph  of paragraph a of section 54.90 of the
    10  local finance law, as amended by chapter 78 of  the  laws  of  2016,  is
    11  amended to read as follows:
    12    Notwithstanding the foregoing, whenever in the judgment of the finance
    13  board  of the city of New York the interest of such city would be served
    14  thereby, the city of New York may without further approval  issue  bonds
    15  or  notes,  on  or  before  July  fifteenth,  two  thousand  [seventeen]
    16  eighteen, with interest rates that vary in accordance with a formula  or
    17  procedure  and  are  subject  to a maximum rate of interest set forth or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10471-01-7
        A. 6662                             2
 
     1  referred to in the bonds or notes and may provide  the  holders  thereof
     2  with  such  rights to require the city or other persons to purchase such
     3  bonds or notes or renewals thereof from the proceeds of the resale ther-
     4  eof  or  otherwise from time to time prior to the final maturity of such
     5  bonds or notes as the finance board of the city of New York  may  deter-
     6  mine  and  the city may resell, at any time prior to final maturity, any
     7  such bonds or notes acquired as a result of the exercise of such rights;
     8  provided, however, that at no time shall the total principal  amount  of
     9  bonds  and  notes  issued by the city of New York pursuant to this para-
    10  graph (other than bonds and notes (1) bearing interest at rates and  for
    11  periods of time that are specified without reference to future events or
    12  contingencies,  or  (2)  described  in  section  136.00 of this article)
    13  exceed twenty-five percent of the limit prescribed by section 104.00  of
    14  this article.
    15    §  3. The opening paragraph of subdivision 1 of paragraph d of section
    16  54.90 of the local finance law, as amended by chapter 78 of the laws  of
    17  2016, is amended to read as follows:
    18    On  or  before  July  fifteenth, two thousand [seventeen] eighteen the
    19  mayor and comptroller of the city of New York may:
    20    § 4. The opening paragraph of paragraph a  of  section  57.00  of  the
    21  local  finance  law,  as  amended  by chapter 78 of the laws of 2016, is
    22  amended to read as follows:
    23    Bonds shall be sold only at public sale and  in  accordance  with  the
    24  procedure set forth in this section and sections 58.00 and 59.00 of this
    25  title, except as otherwise provided in this paragraph. Bonds may be sold
    26  at private sale to the United States government or any agency or instru-
    27  mentality  thereof, the state of New York municipal bond bank agency, to
    28  any sinking fund or pension fund of the municipality, school district or
    29  district corporation selling such bonds, or, in the case of sales by the
    30  city of New York prior to July first, two thousand [seventeen] eighteen,
    31  also to the municipal assistance corporation for the city of New York or
    32  to any other purchaser with the consent of the mayor and the comptroller
    33  of such city and approval of the state comptroller, or, in the  case  of
    34  sales  by the county of Nassau prior to December thirty-first, two thou-
    35  sand seven, also to the Nassau county interim finance authority with the
    36  approval of the state comptroller, or, in the case of sales by the  city
    37  of  Buffalo  prior to June thirtieth, two thousand thirty-seven, also to
    38  the Buffalo fiscal stability authority with the approval  of  the  state
    39  comptroller,  or, in the case of bonds or other obligations of a munici-
    40  pality issued for the construction of any sewage treatment works, sewage
    41  collecting system,  storm  water  collecting  system,  water  management
    42  facility, air pollution control facility or solid waste disposal facili-
    43  ty, also to the New York state environmental facilities corporation, or,
    44  in the case of bonds or other obligations of a school district or a city
    45  acting on behalf of a city school district in a city having a population
    46  in  excess of one hundred twenty-five thousand but less than one million
    47  inhabitants according to the latest federal census, issued to finance or
    48  refinance the cost of  school  district  capital  facilities  or  school
    49  district capital equipment, as defined in section sixteen hundred seven-
    50  ty-six of the public authorities law, also to the dormitory authority of
    51  the state of New York. Bonds of a river improvement or drainage district
    52  established  by  or  under the supervision of the department of environ-
    53  mental conservation may be sold at private sale to the state of New York
    54  as investments for any funds of the state which by law may be  invested,
    55  provided,  however,  that the rate of interest on any such bonds so sold
    56  shall be approved by the water power  and  control  commission  and  the
        A. 6662                             3
 
     1  state comptroller. Bonds may also be sold at private sale as provided in
     2  section  63.00  of  this title. No bonds shall be sold on option or on a
     3  deferred payment plan, except that options to purchase, effective for  a
     4  period not exceeding one year, may be given:
     5    §  5.  Subdivision  3  of  paragraph  g  of section 90.00 of the local
     6  finance law, as amended by chapter 78 of the laws of 2016, is amended to
     7  read as follows:
     8    3. Outstanding bonds may, pursuant to a power to recall and redeem  or
     9  with  the  consent  of  the  holders thereof, be exchanged for refunding
    10  bonds (i) if the refunding bonds are to bear interest at a rate equal to
    11  or lower than that borne by the bonds to be refunded or (ii) if, in  the
    12  case  of  the city of New York prior to July first, two thousand [seven-
    13  teen] eighteen, the annual payment required for principal  and  interest
    14  on the refunding bond is less than the annual payment required for prin-
    15  cipal  and interest on the bond to be refunded, in each case such annual
    16  payments to be determined by dividing the total principal  and  interest
    17  payments  due over the remaining life of the bond by the number of years
    18  to maturity of the bond or (iii) if the bonds to be refunded were issued
    19  by the city of New York after June thirtieth, nineteen hundred  seventy-
    20  eight  and  prior  to  July first, two thousand [seventeen] eighteen and
    21  contain covenants referring to the  existence  of  the  New  York  state
    22  financial  control board for the city of New York or any other covenants
    23  relating to matters other than  the  prompt  payment  of  principal  and
    24  interest  on  the  obligations  when due and the refunding bond omits or
    25  modifies any such covenant.
    26    § 6. Subdivision 8 of paragraph d  of  section  107.00  of  the  local
    27  finance law, as amended by chapter 78 of the laws of 2016, is amended to
    28  read as follows:
    29    8.  Notwithstanding  any  other provision of law, the financing by the
    30  city of New York prior to July first, two thousand [seventeen]  eighteen
    31  of  any  object  or  purpose  which  has a period of probable usefulness
    32  determined by law by the issuance of any bonds or notes,  including  (i)
    33  the issuance of bonds or notes to obtain reimbursement for funds hereto-
    34  fore advanced for the object or purpose for which the bonds or notes are
    35  being issued, (ii) the issuance of bonds or notes to redeem notes previ-
    36  ously  issued for the object or purpose for which the bonds or notes are
    37  being issued or (iii) the issuance of bonds to refund  bonds  previously
    38  issued for the object or purpose for which bonds are being issued.
    39    §  7. Subdivision 1 of section 10-a of section 2 of chapter 868 of the
    40  laws of 1975, constituting the New York state  financial  emergency  act
    41  for  the city of New York, as amended by chapter 78 of the laws of 2016,
    42  is amended to read as follows:
    43    1. In the event that after the date on which the  provisions  of  this
    44  act become operative, any notes or bonds are issued by the city prior to
    45  July  1, [2017] 2018, or any bonds are issued by a state financing agen-
    46  cy, the state of New York hereby authorizes the city and authorizes  and
    47  requires  such  state financing agency to include a pledge and agreement
    48  of the state of New York in any agreement made by the city or such state
    49  financing agency with holders or guarantors of such notes or bonds  that
    50  the  state  will not take any action which will (a) substantially impair
    51  the authority of the board during a control period, as defined in subdi-
    52  vision twelve of section two of this act as in effect on the  date  such
    53  notes  or  bonds  are  issued  (i) to approve, disapprove, or modify any
    54  financial plan or financial plan  modification,  including  the  revenue
    55  projections  (or  any  item  thereof)  contained therein, subject to the
    56  standards set forth in paragraphs a, c, d, e and f of subdivision one of
        A. 6662                             4
 
     1  section eight of this act as in effect on the date such notes  or  bonds
     2  are issued and paragraph b of such subdivision as in effect from time to
     3  time,  (ii)  to disapprove a contract of the city or a covered organiza-
     4  tion  if the performance of such contract would be inconsistent with the
     5  financial plan or to approve or disapprove proposed short-term or  long-
     6  term borrowing of the city or a covered organization or any agreement or
     7  other  arrangement  referred  to in subdivision four of section seven of
     8  this act, or (iii) to establish and adopt procedures with respect to the
     9  deposit in and disbursement from the board fund of  city  revenues;  (b)
    10  substantially  impair  the  authority  of  the board to review financial
    11  plans, financial plan  modifications,  contracts  of  the  city  or  the
    12  covered organizations and proposed short-term or long-term borrowings of
    13  the  city  and  the  covered organizations; (c) substantially impair the
    14  independent maintenance of a separate  fund  for  the  payment  of  debt
    15  service on bonds and notes of the city; (d) alter the composition of the
    16  board  so  that  the majority of the voting members of the board are not
    17  officials of the state of New York elected in a state-wide  election  or
    18  appointees  of  the  governor;  (e) terminate the existence of the board
    19  prior to the time to be determined in accordance with  section  thirteen
    20  of this act as in effect on the date such notes or bonds are issued; (f)
    21  substantially  modify  the  requirement that the city's financial state-
    22  ments be audited by a nationally recognized independent certified public
    23  accounting firm or consortium of firms and that a report on  such  audit
    24  be  furnished  to  the  board;  or (g) alter the definition of a control
    25  period set forth in subdivision twelve of section two of this act, as in
    26  effect on the date such notes or  bonds  are  issued,  or  substantially
    27  alter  the  authority  of the board, as set forth in said subdivision to
    28  reimpose or terminate a control  period;  provided,  however,  that  the
    29  foregoing  pledge  and agreement shall be of no further force and effect
    30  if at any time (i) there is on deposit in a separate trust account  with
    31  a  bank,  trust  company  or other fiduciary sufficient moneys or direct
    32  obligations of the United States or obligations guaranteed by the United
    33  States, the principal of and/or interest on which will provide moneys to
    34  pay punctually when due at maturity or prior to maturity by  redemption,
    35  in  accordance  with  their  terms, all principal of and interest on all
    36  outstanding notes and bonds of the city or such state  financing  agency
    37  containing  this  pledge and agreement and irrevocable instructions from
    38  the city or such state financing agency to such bank, trust  company  or
    39  other  fiduciary  for  such  payment of such principal and interest with
    40  such moneys shall have been given, or (ii) such notes and bonds, togeth-
    41  er with interest thereon, have been paid in full  at  maturity  or  have
    42  otherwise been refunded, redeemed, defeased, or discharged; and provided
    43  further  that  the foregoing pledge and agreement shall be of full force
    44  and effect upon its inclusion in any agreement made by the city or state
    45  financing agency with holders or guarantors of such notes or bonds.
    46    Upon payment for such obligations issued pursuant to this act  by  the
    47  original  and all subsequent holders inclusion of the foregoing covenant
    48  shall be deemed conclusive evidence of valuable  consideration  received
    49  by the state and city for such covenant and of reliance upon such pledge
    50  and agreement by any such holder. The state hereby grants any such bene-
    51  fited  holder  the right to sue the state in a court of competent juris-
    52  diction and enforce this covenant and agreement and waives all rights of
    53  defense based on sovereign immunity in such an action or suit.
    54    § 8. Section 5 of chapter 142 of the laws of 2004, amending the  local
    55  finance law relating to interest rate exchange agreements of the city of
        A. 6662                             5
 
     1  New  York  and refunding bonds of such city, as amended by chapter 78 of
     2  the laws of 2016, is amended to read as follows:
     3    §  5.  This  act shall take effect immediately, provided, that section
     4  three of this act shall expire and be deemed repealed  July  15,  [2017]
     5  2018.
     6    § 9. Separability. If any clause, sentence, paragraph, section or part
     7  of  this act shall be adjudged by any court of competent jurisdiction to
     8  be invalid, such judgment shall not affect,  impair  or  invalidate  the
     9  remainder thereof, but shall be confined in its operation to the clause,
    10  sentence,  paragraph,  section  or part thereof directly involved in the
    11  controversy in which such judgment shall have been rendered.
    12    § 10. This act shall take effect immediately.