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S08428 Summary:

S08428 Actions:

S08428 Committee Votes:

S08428 Floor Votes:

S08428 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8428
 
                    IN SENATE
 
                                      May 28, 2020
                                       ___________
 
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend a chapter of the laws of 2020 amending the local finance
          law relating to bond anticipation notes issued in calendar years  2015
          through  2021, as proposed in legislative bills numbers S. 8417 and A.
          10492, in relation to expenditures and temporary transfer  of  reserve
          funds for expenses related to state disaster emergency declared pursu-
          ant  to  executive  order 202 of 2020 and authorizing the extension of
          repayment of inter-fund advances made for expenses  related  to  state
          disaster  emergency  declared  pursuant to executive order 202 of 2020
          (Part A); to amend the public service law, in relation  to  issuing  a
          moratorium  on  utility  termination  of  services  during  periods of
          pandemics and/or state of emergencies; and to amend a chapter  of  the
          laws  of  2020  amending the public service law, relating to issuing a
          moratorium on  utility  termination  of  services  during  periods  of
          pandemics  and/or  state  of  emergencies,  as proposed in legislative
          bills numbers S.8113-A and A.10521, in relation to  the  effectiveness
          thereof  (Part  B);  to  amend  the  banking  law,  in relation to the
          forbearance of residential mortgage payments (Part C);  and  to  amend
          the  criminal  procedure  law,  in relation to hearings conducted on a
          felony complaint during a state disaster emergency (Part D)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act enacts into law legislation providing for impor-
     2  tant provisions relating to a state disaster emergency.  Each  component
     3  is  wholly  contained within a Part identified as Parts A through D. The
     4  effective date for each particular provision contained within such  Part
     5  is  set  forth  in  the  last section of such Part. Any provision in any
     6  section contained within a Part, including the  effective  date  of  the
     7  Part,  which  makes  reference  to a section "of this act", when used in
     8  connection with that particular component, shall be deemed to  mean  and
     9  refer  to  the  corresponding  section of the Part in which it is found.
    10  Section three of this act sets forth the general effective date of  this
    11  act.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16563-02-0
        S. 8428                             2
 
     1                                   PART A
 
     2    Section  1.  The  title  of a chapter of the laws of 2020 amending the
     3  local finance law relating to bond anticipation notes issued in calendar
     4  years 2015 through 2021, as proposed in legislative bills number S. 8417
     5  and A. 10492, is amended to read as follows:
     6    to amend the local finance law, in relation to bond anticipation notes
     7  issued in calendar years 2015 through 2021; to authorize the expenditure
     8  and temporary transfer of reserve funds for expenses related to  [COVID-
     9  19]  the  state  disaster emergency declared pursuant to executive order
    10  202 of 2020; and to authorize the extension of repayment  of  inter-fund
    11  advances  made  for  expenses  related  to [COVID-19] the state disaster
    12  emergency declared pursuant to executive order 202 of 2020
    13    § 2. Section 2 of a chapter of the laws of  2020  amending  the  local
    14  finance law relating to bond anticipation notes issued in calendar years
    15  2015  through 2021, as proposed in legislative bills numbers S. 8417 and
    16  A. 10492, is amended to read as follows:
    17    § 2. Notwithstanding any provision of  sections  6-c  or  6-g  of  the
    18  general  municipal  law  or  section  3651  of  the education law to the
    19  contrary, the governing board of a town, village,  county,  city,  water
    20  improvement  district,  sewer  improvement  district,  fire  district or
    21  school district, by resolution which shall not be subject to  referendum
    22  requirements,  may authorize expenditures from capital reserve funds for
    23  capital costs attributable to the  [COVID-19  pandemic]  state  disaster
    24  emergency declared pursuant to executive order 202 of 2020.
    25    §  3.  Section  3  of a chapter of the laws of 2020 amending the local
    26  finance law relating to bond anticipation notes issued in calendar years
    27  2015 through 2021, as proposed in legislative bills numbers S. 8417  and
    28  A. 10492, is amended to read as follows:
    29    §  3.  Notwithstanding any provision of the general municipal law, the
    30  town law or the education law to the contrary, the governing board of  a
    31  town,  village, county, city, water improvement district, sewer improve-
    32  ment district, fire district or school  district,  by  resolution  which
    33  shall  not  be subject to referendum requirements, if any, may authorize
    34  the temporary transfer of moneys from reserve funds to pay for operating
    35  costs attributable to the state disaster emergency declared pursuant  to
    36  executive order 202 of 2020 or other costs attributable to the [COVID-19
    37  pandemic]  state disaster emergency declared pursuant to executive order
    38  202 of 2020, provided, that the reserve fund from which the  funds  were
    39  temporarily  transferred  shall be reimbursed from the fund to which the
    40  transfer was made over a period of not  more  than  five  fiscal  years,
    41  starting  with  the  fiscal year following the transfer. At least twenty
    42  percent of the moneys temporarily transferred shall be  reimbursed  each
    43  fiscal  year.  Such  reimbursement  shall  include  an additional amount
    44  reasonably estimated to be the amount that would have been earned on the
    45  investment of the transferred moneys had they been retained in the capi-
    46  tal reserve fund.
    47    § 4. Section 4 of a chapter of the laws of  2020  amending  the  local
    48  finance law relating to bond anticipation notes issued in calendar years
    49  2015  through 2021, as proposed in legislative bills numbers S. 8417 and
    50  A. 10492, is amended to read as follows:
    51    § 4. Notwithstanding the provisions of subdivision 3 of section 9-a of
    52  the general municipal law, for inter-fund advances made pursuant to such
    53  subdivision for costs attributable  to  the  [COVID-19  pandemic]  state
    54  disaster  emergency  declared  pursuant  to executive order 202 of 2020,
    55  repayment of moneys to the fund from which they were advanced  shall  be
        S. 8428                             3
 
     1  made  by  close  of  the  fiscal year next succeeding the fiscal year in
     2  which such advance was made.
     3    §  5.  This  act  shall  take  effect on the same date and in the same
     4  manner as a chapter of the laws of 2020 amending the local  finance  law
     5  relating  to  bond  anticipation  notes  issued  in  calendar years 2015
     6  through 2021, as proposed in legislative bills numbers S.  8417  and  A.
     7  10492, takes effect.
 
     8                                   PART B
 
     9    Section  1.  Subdivisions  9,  10  and  12 of section 91 of the public
    10  service law, as added by a chapter of the  laws  of  2020  amending  the
    11  public  service  law, relating to issuing a moratorium on utility termi-
    12  nation of services during periods of pandemics and/or state of  emergen-
    13  cies, as proposed in legislative bills numbers S.8113-A and A.10521, are
    14  amended to read as follows:
    15    9.  No  telephone corporation shall terminate or disconnect a residen-
    16  tial service customer for the non-payment of an overdue charge  for  the
    17  duration  of the state disaster emergency declared pursuant to executive
    18  order two hundred two of two thousand twenty (hereinafter "the  COVID-19
    19  state  of  emergency").  Telephone  corporations  shall  have  a duty to
    20  restore service, to the extent not already required under this  chapter,
    21  [to] at the request of any residential customer within forty-eight hours
    22  if  such service has been terminated during the pendency of the COVID-19
    23  state of emergency and disconnection of such service was due to non-pay-
    24  ment of an overdue charge.
    25    10. [After] For a period of one hundred eighty days after the COVID-19
    26  state of emergency is lifted or expires, no telephone corporation  shall
    27  terminate  or  disconnect  the service of a residential customer account
    28  because of defaulted deferred payment agreements or arrears then owed to
    29  the telephone corporation when such customer has experienced a change in
    30  financial circumstances due to  the  COVID-19  state  of  emergency,  as
    31  defined by the department.  The telephone corporation shall provide such
    32  residential  customer  with  the  right to enter into, or restructure, a
    33  deferred payment agreement without the requirement of  a  down  payment,
    34  late fees, or penalties[, as such is provided for in article two of this
    35  chapter].
    36    12. Implementation of the provisions of this section shall not prohib-
    37  it  a  telephone  corporation  from recovering lost or deferred revenues
    38  after the lifting or expiration of  the  COVID-19  state  of  emergency,
    39  pursuant to such means for recovery as are provided for in this chapter,
    40  and  by  means  not  inconsistent  with  any  of  the provisions of this
    41  article. Nothing in this section shall prohibit a telephone  corporation
    42  from disconnecting service at the request of a customer. Nothing in this
    43  section  shall  prohibit  a  telephone  corporation  from  disconnecting
    44  service when it is necessary to protect the health and safety of custom-
    45  ers and the public.
    46    § 2. Section 5 of a chapter of the laws of 2020  amending  the  public
    47  service  law, relating to issuing a moratorium on utility termination of
    48  services during periods of pandemics and/or  state  of  emergencies,  as
    49  proposed  in  legislative bills numbers S.8113-A and A.10521, is amended
    50  to read as follows:
    51    § 5. This act shall take effect immediately and shall expire March 31,
    52  2021 when upon such date the provisions of  this  act  shall  be  deemed
    53  repealed.
        S. 8428                             4
 
     1    §  3.  This  act  shall  take  effect on the same date and in the same
     2  manner as a chapter of the laws of 2020 amending the public service law,
     3  relating to issuing a moratorium  on  utility  termination  of  services
     4  during  periods of pandemics and/or state of emergencies, as proposed in
     5  legislative  bills  numbers S.8113-A and A.10521, takes effect; provided
     6  however, that the amendments to subdivisions 9, 10 and 12 of section  91
     7  of  the  public  service  law  made by section one of this act shall not
     8  affect the repeal of  such  subdivisions  and  shall  be  deemed  to  be
     9  repealed therewith.
 
    10                                   PART C
 
    11    Section  1.  Section  9-x of the banking law, as added by a chapter of
    12  the laws of 2020, amending the banking law relating to  the  forbearance
    13  of  residential  mortgage  payments,  as  proposed  in legislative bills
    14  numbers S. 8243-C and A. 10351-B, is amended to read as follows:
    15    § 9-x. Mortgage forbearance. 1. As used in this section, the following
    16  terms shall have the following meanings:
    17    (a) "Covered period" means March 7, 2020 until the date on which  none
    18  of  the provisions that closed or otherwise restricted public or private
    19  businesses or places of public accommodation, or  required  postponement
    20  or  cancellation  of  all non-essential gatherings of individuals of any
    21  size for any reason in Executive  Orders  202.3,  202.4,  202.5,  202.6,
    22  202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
    23  Orders 202.28 and 202.31 and as further extended by any future Executive
    24  Order,  issued in response to the COVID-19 pandemic continue to apply in
    25  the county of the qualified mortgagor's residence;
    26    (b) "qualified mortgagor" means an  individual  [who  resides  in  New
    27  York] (i) whose [principal dwelling] primary residence is located in New
    28  York  and  is  encumbered  by  a  home loan pursuant to paragraph (a) of
    29  subdivision six of section thirteen hundred four of  the  real  property
    30  actions  and proceedings law or whose [principal dwelling] primary resi-
    31  dence is located in New York and is a co-operative unit whose shares are
    32  encumbered by any loan otherwise meeting the requirements of a home loan
    33  under paragraph (a) of subdivision six of section thirteen hundred  four
    34  of  the real property actions and proceedings law, from or serviced by a
    35  regulated institution; and (ii) who demonstrates financial hardship as a
    36  result of COVID-19 during the covered period;
    37    (c) "regulated institution"  means  any  New  York  regulated  banking
    38  organization as defined in this chapter and any New York regulated mort-
    39  gage servicer entity subject to supervision by the department; and
    40    (d)  "trial  period  plan" means an agreement whereby the mortgagor is
    41  required to make trial payments in full  and  on-time  in  order  to  be
    42  considered for a permanent loan modification.
    43    2.  Notwithstanding  any  other  provision  of law, New York regulated
    44  institutions shall:
    45    (a) make applications for forbearance of any payment due on a residen-
    46  tial mortgage of a property located in New York widely available to  any
    47  qualified  mortgagor who, during the covered period, is in arrears or on
    48  a trial period plan, or who has applied for loss mitigation [and  demon-
    49  strates financial hardship during the covered period]; and
    50    (b) grant such forbearance of all monthly payments due with respect to
    51  the  mortgage  secured by the qualified mortgagor's primary residence in
    52  New York for a period of up to one hundred eighty days to any such qual-
    53  ified mortgagor [who is in arrears or on a trial period plan, or who has
    54  applied for loss mitigation and demonstrates financial  hardship],  with
        S. 8428                             5
 
     1  the  option to extend the forbearance of such monthly payments for up to
     2  an additional one hundred eighty days provided that  this  extension  is
     3  subject to the mortgagor demonstrating continued financial hardship.  If
     4  any  qualified  mortgagor has already received a forbearance pursuant to
     5  executive order 202.9 of two thousand twenty, the time of such  forbear-
     6  ance  shall  be considered as part of the requirement of this section to
     7  provide a forbearance of up to one hundred eighty days, and  any  exten-
     8  sion thereof pursuant to this section.
     9    (c)  Such  forbearance may be backdated to March seventh, two thousand
    10  twenty, provided that the maximum length of the forbearance  may  be  no
    11  longer  than  one hundred eighty days and any extension thereof pursuant
    12  to this section.
    13    3. Notwithstanding any other provision of law, any  mortgage  forbear-
    14  ance  granted  by  a  regulated  institution pursuant to executive order
    15  number 202.9 of two thousand twenty, this section, or  [any  other  law,
    16  rule  or regulation to the] 3 NYCRR Part 119 to a qualified mortgagor as
    17  a result of financial hardship [during  the  covered  period]  shall  be
    18  subject to the following provisions:
    19    (a) the mortgagor shall have the option to extend the term of the loan
    20  for  the length of the period of forbearance.  The regulated institution
    21  shall [waive interest on the principal for the term of  the  forbearance
    22  and  waive any late fees accumulated as a result of the forbearance] not
    23  charge additional interest or any late fees or penalties on the forborne
    24  payment; or
    25    (b) the mortgagor shall have the option to have  the  arrears  accumu-
    26  lated  during  the forbearance period payable on a monthly basis for the
    27  remaining term of the loan without being subject to  penalties  or  late
    28  fees incurred as a result of the forbearance; or
    29    (c)  the mortgagor shall have the option to negotiate a loan modifica-
    30  tion or any other option that meets the  changed  circumstances  of  the
    31  qualified mortgagor; or
    32    (d) if [the mortgagor is unable to make mortgage payments due to mort-
    33  gagors'  demonstrated hardship and] the mortgagor and regulated institu-
    34  tion cannot reasonably agree on a mutually acceptable loan modification,
    35  the [mortgagor] regulated institution shall [have the option]  offer  to
    36  defer  arrears accumulated during the forbearance period as a non-inter-
    37  est bearing balloon [payment] loan payable at the maturity of  the  loan
    38  [consistent  with  the  safety  and soundness of such regulated institu-
    39  tion], or at the time the loan is satisfied through a refinance or  sale
    40  of  the  property. Any late fees accumulated as a result of the forbear-
    41  ance shall be waived.
    42    [(d)] (e) The exercising of options provided for in paragraph (a), (b)
    43  [or], (c) or (d) of this subdivision by a qualified mortgagor shall  not
    44  be  reported  negatively  to any credit bureau by any regulated institu-
    45  tion.
    46    4. Notwithstanding any other provision of  law,  adherence  with  this
    47  section  shall  be  a  condition  precedent  to commencing a foreclosure
    48  action stemming from missed payments which  would  have  otherwise  been
    49  subject  to  this section.   A defendant may raise the violation of this
    50  section as a defense to a foreclosure action commenced   on the  defend-
    51  ant's  property  when such action is based on missed payments that would
    52  have otherwise been subject to this section.
    53    5. Notwithstanding anything to the  contrary  in  this  section,  this
    54  section shall not apply to, and does not affect any mortgage loans made,
    55  insured,  purchased  or  securitized by any agency or instrumentality of
    56  the United States, any government sponsored  enterprise,  or  a  federal
        S. 8428                             6
 
     1  home  loan bank, or a corporate governmental agency of the state consti-
     2  tuted as a political subdivision and public benefit corporation, or  the
     3  rights  and  obligations  of  any lender, issuer, servicer or trustee of
     4  such  obligations, including servicers for the Government National Mort-
     5  gage Association.
     6    6. Notwithstanding any other provision of law or of this section,  the
     7  obligation  to  grant  the  forbearance  relief required by this section
     8  shall be subject to the regulated institution having sufficient  capital
     9  and liquidity to meet its obligations and to operate in a safe and sound
    10  manner. Any regulated institution that determines that it is not able to
    11  offer  relief  pursuant  to this section to any qualified mortgagor must
    12  notify the department within five business days of making such  determi-
    13  nation. Any such notice filed with the department shall include informa-
    14  tion about the qualified mortgagor, the reason the regulated institution
    15  determined  that  it  was  unable  to  offer any relief pursuant to this
    16  section, information about the regulated institution's financial  condi-
    17  tion supporting the regulated institution's determination, and any other
    18  information  required by the department. At the same time that the regu-
    19  lated institution provides notice to the department, it shall advise the
    20  qualified mortgagor that the  application  for  relief  was  denied  and
    21  provide a statement that the applicant may file a complaint with the New
    22  York  state  department  of  financial  services  at  1-800-342-3736  or
    23  http://www.dfs.ny.gov if the  applicant  believes  the  application  was
    24  wrongly denied.
    25    §  2.  This  act  shall  take  effect on the same date and in the same
    26  manner as a chapter of the laws of 2020, amending the banking law relat-
    27  ing to the forbearance of residential mortgage payments, as proposed  in
    28  legislative bills numbers S. 8243-C and A. 10351-B, takes effect.
 
    29                                   PART D

    30    Section 1. Section 180.65 of the criminal procedure law, as added by a
    31  chapter  of the laws of 2020, amending the criminal procedure law relat-
    32  ing to conducting hearings on a felony complaint during a state disaster
    33  emergency, as proposed in legislative  bills  numbers  S.  8414  and  A.
    34  10493, is amended to read as follows:
    35  § 180.65 Hearing upon   felony  complaint;  emergency  provision  during
    36              disaster emergency.
    37    During the  period  of  the  COVID-19  state  disaster  emergency,  as
    38  declared pursuant to executive order number two hundred two of two thou-
    39  sand  twenty  and  extensions thereof and article two-B of the executive
    40  law, the following additional provisions shall apply to the conduct of a
    41  hearing on a felony complaint pursuant to this article:
    42    1. The appearance of any party and any witness at such hearing may  be
    43  by  electronic appearance through an independent audio-visual system, as
    44  such terms are defined in section 182.10 of this title, where the  court
    45  finds  upon  its  own motion after hearing from the parties and any such
    46  witness, either in person or by electronic appearance, that due  to  the
    47  person's circumstances and such disaster emergency a personal appearance
    48  by  such  party  or  witness  would  be an unreasonable hardship to such
    49  person or witness or create an unreasonable health risk to  the  public,
    50  court staff or anyone else involved in the proceeding.
    51    2. At any such hearing on the felony complaint, the judge must be able
    52  to  hear  and see the image of each witness clearly [though] through the
    53  independent audio-visual system and such sound and visual image shall be
    54  similar to the sound and image the judge  would  hear  and  see  if  the
        S. 8428                             7
 
     1  witness  were  present  together with the judge testifying in the court-
     2  room.  Documents, photographs and the like offered at the hearing may be
     3  exchanged among the parties by electronic means.  A  stenographic  tran-
     4  scription  or  appropriate  audio  recording of the proceedings shall be
     5  maintained, and the live testimony received  by  electronic  appearance,
     6  and  other  electronic  appearances  where  practicable,  shall be video
     7  recorded by the court, and  a  copy  provided  to  the  people  and  the
     8  defense.
     9    3. The authority for an electronic appearance pursuant to this section
    10  shall  be  considered  sufficient means to enable the court to conduct a
    11  hearing on a felony complaint within the meaning of  section  180.80  of
    12  this article.
    13    §  2.  This  act  shall  take  effect on the same date and in the same
    14  manner as a chapter of the laws of 2020, amending the criminal procedure
    15  law relating to conducting hearings on a felony complaint during a state
    16  disaster emergency, as proposed in legislative bills numbers S. 8414 and
    17  A. 10493, takes effect, provided, however, that the amendments  made  to
    18  section 180.65 of the criminal procedure law made by section one of this
    19  act  shall  not  affect  the  repeal of such section and shall be deemed
    20  repealed therewith.
    21    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    22  sion, section or part of this act shall be  adjudged  by  any  court  of
    23  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    24  impair, or invalidate the remainder thereof, but shall  be  confined  in
    25  its  operation  to the clause, sentence, paragraph, subdivision, section
    26  or part thereof directly involved in the controversy in which such judg-
    27  ment shall have been rendered. It is hereby declared to be the intent of
    28  the legislature that this act would  have  been  enacted  even  if  such
    29  invalid provisions had not been included herein.
    30    §  3.  This  act shall take effect immediately provided, however, that
    31  the applicable effective date of Parts A through D of this act shall  be
    32  as specifically set forth in the last section of such Parts.