New York State Assembly

 
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A10479 Summary:

A10479 Actions:

A10479 Committee Votes:

Committee:CITIES   Chair:Benedetto      
DATE:05/30/2018AYE/NAY:10/2  Action: Favorable refer to committee Ways and Means        Correction Date:06/05/2018
Benedetto
Aye
Castorina
Excused
Crespo
Aye
Goodell
Nay
Braunstein
Aye
Brabenec
Excused
McDonald
Aye
Norris
Nay
Pichardo
Aye
Dilan
Aye
Carroll
Aye
Wright
Aye
Taylor
Excused
Fernandez
Aye
Epstein
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/05/2018AYE/NAY:26/4  Action: Favorable refer to committee Rules        
Weinstein
Aye
Oaks
Nay
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Nay
Gantt
Excused
Fitzpatrick
Aye
Glick
Aye
Hawley
Nay
Nolan
Excused
Malliotakis
Aye
Pretlow
Aye
Walter
Aye
Perry
Aye
Montesano
Aye
Colton
Aye
Curran
Nay
Cook
Aye
Ra
Aye
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Weprin
Abstained
Rodriguez
Aye
Ramos
Excused
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Peoples-Stokes
Excused
Simotas
Aye

Committee:RULES   Chair:Heastie      
DATE:06/06/2018AYE/NAY:28/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Aye
Butler
Aye
Gantt
Excused
Crouch
Aye
Nolan
Excused
Finch
Aye
Weinstein
Aye
Barclay
Aye
Hooper
Aye
Raia
Aye
Ortiz
Aye
Hawley
Aye
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Galef
Aye
Paulin
Aye
Titus
Excused
Peoples-Stokes
Aye
Benedetto
Aye

A10479 Floor Votes:

A10479 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10479
 
                   IN ASSEMBLY
 
                                     April 27, 2018
                                       ___________
 
        Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
          Committee 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 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  effective-
          ness 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 64 of the laws of 2017, 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  [eighteen]
     6  nineteen,  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 64 of  the  laws  of  2017,  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 [eighteen] nineteen,
    16  with  interest rates that vary in accordance with a formula or procedure
    17  and are subject to a maximum rate of interest set forth or  referred  to
    18  in  the  bonds  or  notes  and may provide the holders thereof with such
    19  rights to require the city or other persons to purchase  such  bonds  or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15623-01-8
        A. 10479                            2
 
     1  notes  or  renewals  thereof  from the proceeds of the resale thereof or
     2  otherwise from time to time prior to the final maturity of such bonds or
     3  notes as the finance board of the city of New York may determine and the
     4  city  may resell, at any time prior to final maturity, any such bonds or
     5  notes acquired as a result of the exercise  of  such  rights;  provided,
     6  however,  that  at no time shall the total principal amount of bonds and
     7  notes issued by the city of New York pursuant to this  paragraph  (other
     8  than  bonds  and  notes (1) bearing interest at rates and for periods of
     9  time that are specified without reference to future events or contingen-
    10  cies, or (2) described in section 136.00 of this article)  exceed  twen-
    11  ty-five  percent of the limit prescribed by section 104.00 of this arti-
    12  cle.
    13    § 3. The opening paragraph of subdivision 1 of paragraph d of  section
    14  54.90  of the local finance law, as amended by chapter 64 of the laws of
    15  2017, is amended to read as follows:
    16    On or before July fifteenth,  two  thousand  [eighteen]  nineteen  the
    17  mayor and comptroller of the city of New York may:
    18    §  4.  The  opening  paragraph  of paragraph a of section 57.00 of the
    19  local finance law, as amended by chapter 64 of  the  laws  of  2017,  is
    20  amended to read as follows:
    21    Bonds  shall  be  sold  only at public sale and in accordance with the
    22  procedure set forth in this section and sections 58.00 and 59.00 of this
    23  title, except as otherwise provided in this paragraph. Bonds may be sold
    24  at private sale to the United States government or any agency or instru-
    25  mentality thereof, the state of New York municipal bond bank agency,  to
    26  any sinking fund or pension fund of the municipality, school district or
    27  district corporation selling such bonds, or, in the case of sales by the
    28  city  of New York prior to July first, two thousand [eighteen] nineteen,
    29  also to the municipal assistance corporation for the city of New York or
    30  to any other purchaser with the consent of the mayor and the comptroller
    31  of such city and approval of the state comptroller, or, in the  case  of
    32  sales  by the county of Nassau prior to December thirty-first, two thou-
    33  sand seven, also to the Nassau county interim finance authority with the
    34  approval of the state comptroller, or, in the case of sales by the  city
    35  of  Buffalo  prior to June thirtieth, two thousand thirty-seven, also to
    36  the Buffalo fiscal stability authority with the approval  of  the  state
    37  comptroller,  or, in the case of bonds or other obligations of a munici-
    38  pality issued for the construction of any sewage treatment works, sewage
    39  collecting system,  storm  water  collecting  system,  water  management
    40  facility, air pollution control facility or solid waste disposal facili-
    41  ty, also to the New York state environmental facilities corporation, or,
    42  in the case of bonds or other obligations of a school district or a city
    43  acting on behalf of a city school district in a city having a population
    44  in  excess of one hundred twenty-five thousand but less than one million
    45  inhabitants according to the latest federal census, issued to finance or
    46  refinance the cost of  school  district  capital  facilities  or  school
    47  district capital equipment, as defined in section sixteen hundred seven-
    48  ty-six of the public authorities law, also to the dormitory authority of
    49  the state of New York. Bonds of a river improvement or drainage district
    50  established  by  or  under the supervision of the department of environ-
    51  mental conservation may be sold at private sale to the state of New York
    52  as investments for any funds of the state which by law may be  invested,
    53  provided,  however,  that the rate of interest on any such bonds so sold
    54  shall be approved by the water power  and  control  commission  and  the
    55  state comptroller. Bonds may also be sold at private sale as provided in
    56  section  63.00  of  this title. No bonds shall be sold on option or on a
        A. 10479                            3
 
     1  deferred payment plan, except that options to purchase, effective for  a
     2  period not exceeding one year, may be given:
     3    §  5.  Subdivision  3  of  paragraph  g  of section 90.00 of the local
     4  finance law, as amended by chapter 64 of the laws of 2017, is amended to
     5  read as follows"
     6    3. Outstanding bonds may, pursuant to a power to recall and redeem  or
     7  with  the  consent  of  the  holders thereof, be exchanged for refunding
     8  bonds (i) if the refunding bonds are to bear interest at a rate equal to
     9  or lower than that borne by the bonds to be refunded or (ii) if, in  the
    10  case  of  the  city of New York prior to July first, two thousand [eigh-
    11  teen] nineteen, the annual payment required for principal  and  interest
    12  on the refunding bond is less than the annual payment required for prin-
    13  cipal  and interest on the bond to be refunded, in each case such annual
    14  payments to be determined by dividing the total principal  and  interest
    15  payments  due over the remaining life of the bond by the number of years
    16  to maturity of the bond or (iii) if the bonds to be refunded were issued
    17  by the city of New York after June thirtieth, nineteen hundred  seventy-
    18  eight  and  prior  to  July  first, two thousand [eighteen] nineteen and
    19  contain covenants referring to the  existence  of  the  New  York  state
    20  financial  control board for the city of New York or any other covenants
    21  relating to matters other than  the  prompt  payment  of  principal  and
    22  interest  on  the  obligations  when due and the refunding bond omits or
    23  modifies any such covenant.
    24    § 6. Subdivision 8 of paragraph d  of  section  107.00  of  the  local
    25  finance law, as amended by chapter 64 of the laws of 2017, is amended to
    26  read as follows:
    27    8.  Notwithstanding  any  other provision of law, the financing by the
    28  city of New York prior to July first, two thousand  [eighteen]  nineteen
    29  of  any  object  or  purpose  which  has a period of probable usefulness
    30  determined by law by the issuance of any bonds or notes,  including  (i)
    31  the issuance of bonds or notes to obtain reimbursement for funds hereto-
    32  fore advanced for the object or purpose for which the bonds or notes are
    33  being issued, (ii) the issuance of bonds or notes to redeem notes previ-
    34  ously  issued for the object or purpose for which the bonds or notes are
    35  being issued or (iii) the issuance of bonds to refund  bonds  previously
    36  issued for the object or purpose for which bonds are being issued.
    37    §  7. Subdivision 1 of section 10-a of section 2 of chapter 868 of the
    38  laws of 1975, constituting the New York state  financial  emergency  act
    39  for  the city of New York, as amended by chapter 64 of the laws of 2017,
    40  is amended to read as follows:
    41    1. In the event that after the date on which the  provisions  of  this
    42  act become operative, any notes or bonds are issued by the city prior to
    43  July  1, [2018] 2019, or any bonds are issued by a state financing agen-
    44  cy, the state of New York hereby authorizes the city and authorizes  and
    45  requires  such  state financing agency to include a pledge and agreement
    46  of the state of New York in any agreement made by the city or such state
    47  financing agency with holders or guarantors of such notes or bonds  that
    48  the  state  will not take any action which will (a) substantially impair
    49  the authority of the board during a control period, as defined in subdi-
    50  vision twelve of section two of this act as in effect on the  date  such
    51  notes  or  bonds  are  issued  (i) to approve, disapprove, or modify any
    52  financial plan or financial plan  modification,  including  the  revenue
    53  projections  (or  any  item  thereof)  contained therein, subject to the
    54  standards set forth in paragraphs a, c, d, e and f of subdivision one of
    55  section eight of this act as in effect on the date such notes  or  bonds
    56  are issued and paragraph b of such subdivision as in effect from time to
        A. 10479                            4
 
     1  time,  (ii)  to disapprove a contract of the city or a covered organiza-
     2  tion if the performance of such contract would be inconsistent with  the
     3  financial  plan or to approve or disapprove proposed short-term or long-
     4  term borrowing of the city or a covered organization or any agreement or
     5  other  arrangement  referred  to in subdivision four of section seven of
     6  this act, or (iii) to establish and adopt procedures with respect to the
     7  deposit in and disbursement from the board fund of  city  revenues;  (b)
     8  substantially  impair  the  authority  of  the board to review financial
     9  plans, financial plan  modifications,  contracts  of  the  city  or  the
    10  covered organizations and proposed short-term or long-term borrowings of
    11  the  city  and  the  covered organizations; (c) substantially impair the
    12  independent maintenance of a separate  fund  for  the  payment  of  debt
    13  service on bonds and notes of the city; (d) alter the composition of the
    14  board  so  that  the majority of the voting members of the board are not
    15  officials of the state of New York elected in a state-wide  election  or
    16  appointees  of  the  governor;  (e) terminate the existence of the board
    17  prior to the time to be determined in accordance with  section  thirteen
    18  of this act as in effect on the date such notes or bonds are issued; (f)
    19  substantially  modify  the  requirement that the city's financial state-
    20  ments be audited by a nationally recognized independent certified public
    21  accounting firm or consortium of firms and that a report on  such  audit
    22  be  furnished  to  the  board;  or (g) alter the definition of a control
    23  period set forth in subdivision twelve of section two of this act, as in
    24  effect on the date such notes or  bonds  are  issued,  or  substantially
    25  alter  the  authority  of the board, as set forth in said subdivision to
    26  reimpose or terminate a control  period;  provided,  however,  that  the
    27  foregoing  pledge  and agreement shall be of no further force and effect
    28  if at any time (i) there is on deposit in a separate trust account  with
    29  a  bank,  trust  company  or other fiduciary sufficient moneys or direct
    30  obligations of the United States or obligations guaranteed by the United
    31  States, the principal of and/or interest on which will provide moneys to
    32  pay punctually when due at maturity or prior to maturity by  redemption,
    33  in  accordance  with  their  terms, all principal of and interest on all
    34  outstanding notes and bonds of the city or such state  financing  agency
    35  containing  this  pledge and agreement and irrevocable instructions from
    36  the city or such state financing agency to such bank, trust  company  or
    37  other  fiduciary  for  such  payment of such principal and interest with
    38  such moneys shall have been given, or (ii) such notes and bonds, togeth-
    39  er with interest thereon, have been paid in full  at  maturity  or  have
    40  otherwise been refunded, redeemed, defeased, or discharged; and provided
    41  further  that  the foregoing pledge and agreement shall be of full force
    42  and effect upon its inclusion in any agreement made by the city or state
    43  financing agency with holders or guarantors of such notes or bonds.
    44    Upon payment for such obligations issued pursuant to this act  by  the
    45  original  and all subsequent holders inclusion of the foregoing covenant
    46  shall be deemed conclusive evidence of valuable  consideration  received
    47  by the state and city for such covenant and of reliance upon such pledge
    48  and agreement by any such holder. The state hereby grants any such bene-
    49  fited  holder  the right to sue the state in a court of competent juris-
    50  diction and enforce this covenant and agreement and waives all rights of
    51  defense based on sovereign immunity in such an action or suit.
    52    § 8. Section 5 of chapter 142 of the laws of 2004, amending the  local
    53  finance law relating to interest rate exchange agreements of the city of
    54  New  York  and refunding bonds of such city, as amended by chapter 64 of
    55  the laws of 2017, is amended to read as follows:
        A. 10479                            5
 
     1    § 5. This act shall take effect immediately,  provided,  that  section
     2  three  of  this  act shall expire and be deemed repealed July 15, [2018]
     3  2019.
     4    § 9. Separability. If any clause, sentence, paragraph, section or part
     5  of  this act shall be adjudged by any court of competent jurisdiction to
     6  be invalid, such judgment shall not affect,  impair  or  invalidate  the
     7  remainder thereof, but shall be confined in its operation to the clause,
     8  sentence,  paragraph,  section  or part thereof directly involved in the
     9  controversy in which such judgment shall have been rendered.
    10    § 10. This act shall take effect immediately.