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A10362 Summary:

BILL NOA10362A
 
SAME ASSAME AS S08459
 
SPONSORKim
 
COSPNSROrtiz, DenDekker, Englebright, Jacobson, Mosley, Simotas, Thiele, Barron, Giglio, Simon
 
MLTSPNSRGalef
 
Add Art 23 460 - 463, Ec Dev L
 
Establishes the COVID-19 recovery commission to determine how much funding to seek and new issuances that will be sold to the Federal Reserve Municipal Liquidity Facility and to gather information, testimony, advice and other input to make allocation decisions in respect of the new funding and recovery efforts related to novel coronavirus, COVID-19; requires the commission to report its findings to the governor and legislature monthly.
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A10362 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10362A
 
SPONSOR: Kim
  TITLE OF BILL: An act to amend the economic development law, in relation to establish- ing the COVID-19 Recovery Commission   PURPOSE OR GENERAL IDEA OF BILL: To establish the COVID-19 Recovery Commission, as a means for New York State and its constituent municipalities to tap into the Federal Reserve Municipal Lending Facility   (MLF): for the purposes of funding efforts to mitigate the health and economic fallout of the COVID-19 pandemic,   AND TO EXPLORE THE CREATION OF A PUBLIC BANK CAPITALIZED BY THE FUNDING PROVIDED THROUGH THE MLF':   SUMMARY OF PROVISIONS: Section 1 amends the Economic Development Law by adding a new Article 23 and corresponding Sections 460-463 to establish the COVID-19 Recovery Commission. Article 23, Section 460 establishes the COVID-19 Recovery Commission within the Department of Economic Development. All commissioners, presi- dents, and superintendents of state agencies who are endowed with financing responsibilities, As well as representatives to the states' principal subdivisions and municipalities, and public finance personnel who are appointed by the Governor and the leadership of the Legislature shall constitute the Commission itself. Upon the effective date of this article, the Commission shall be convened and required to hold public meetings at least once every week. Article 23, Section 461 outlines the powers and duties of the Commis- sion, including financing and the issuance of municipal bonds to sell to the Federal Reserve Municipal Liquidity. Facility, liaise with the Federal Reserve Bank of New York, and make all other logistical deci- sions and decisions related to consulting localities for additional allocations they need in mitigating the and economic fallout of the COVID-19 pandemic.   ADDITIONALLY, ONCE THE NOTE-ISSUANCE PROCESS UNDER THE MLF BEGINS, THE COMMISSION IS TASKED WITH DETERMINING WHETHER TO ESTABLISH A PUBLIC BANK; SUCH A PUBLIC BANK WOULD BE CAPITALIZED THROUGH EITHER DEPOSITS OR CAPITALIZATION FROM MLF FUNDS OR FEDERAL AID MONEY,' AND WOULD FUND INITIATIVES RELATED (BUT NOT BE LIMITED) TO: TESTING AND CONTACT-TRACING INITIATIVES TO MITIGATE THE COVID-19 PANDEMIC, EXERCIS- ING EMINENT DOMAIN AND PURCHASING FOR-PROFIT PRIVATE SECTOR NURSING HOMES, PROVIDING RENT AND DEBT MORTGAGE RELIEF TO RESIDENTS, AND ENSUR- ING WORKERS CONTINUE TO BE EMPLOYED BY THEIR FIRMS OR OTHERWISE EMPOWER WORKERS TO PURCHASE EQUITY STAKES IN THEIR FIRM.: Article 23, Section 462 mandates the Commission to submit monthly reports to the Governor and the Legislature, at which point the Commis- sioner of the Department of Economic Development is required to deter- mine if the Commission should continue to operate; this decision is to be reported to the Governor and the Legislature. Article 23, Section 463 provides the Commission with the ability to request any information or data from any state department or agency that is necessary for it to carry out its prescribed duties. Section 2 provides the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): This is a new bill.   JUSTIFICATION: In early April 2020, in response to the COVID-19 pandemic, the Federal Reserve of the United States unveiled new rules establishing the creation of a Municipal Liquidity Facility for the states and their municipalities. This is possible due to Section 13(3) of the Federal Reserve Act of 1913, the founding document of the United States Federal Reserve, as well as initial capitalization to establish the Municipal Liquidity Facility that was provided through the CARES Act passed by the United States Congress. Currently, substantial losses in budget revenue at both the state and municipality levels are expected, with as much as 10-15% expected to be lost in revenue for the former. However, with this powerful mechanism the Federal Reserve has provided, it is no longer necessary for legisla- tors and executives to unilaterally pursue a path of austerity budget- ing. Austerity economics is precisely the opposite of what local communities need - an injection of cash, or in other words, a "community quantita- tive easing" that has great potential in alleviating the economic woes of working families across New York State, and also provide much-needed funding to health care in mitigating the spread of the novel coronavi- rus.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Contingent on the findings of the COVID-19 Recovery Commission.   EFFECTIVE DATE: Immediately upon passage.
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A10362 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        10362--A
 
                   IN ASSEMBLY
 
                                     April 29, 2020
                                       ___________
 
        Introduced  by  M.  of  A. KIM, ORTIZ, DenDEKKER, ENGLEBRIGHT, JACOBSON,
          MOSLEY, SIMOTAS, THIELE, BARRON, GIGLIO, SIMON --  Multi-Sponsored  by
          --  M.  of  A.  GALEF  --  read  once and referred to the Committee on
          Economic Development -- committee discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN  ACT to amend the economic development law, in relation to establish-
          ing the COVID-19 Recovery Commission
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  economic  development law is amended by adding a new
     2  article 23 to read as follows:
     3                                 ARTICLE 23
     4                        COVID-19 RECOVERY COMMISSION
 
     5  Section 460. COVID-19 recovery commission.
     6          461. Powers and duties of the commission.
     7          462. Reporting.
     8          463. Assistance of other agencies.
     9    § 460. COVID-19 recovery commission. 1. There is hereby established in
    10  the department a commission,  to  be  known  as  the  COVID-19  recovery
    11  commission.
    12    2.  Such  commission  shall consist of the director of the budget, the
    13  president of the empire state development corporation,  the  superinten-
    14  dent  of  the  department  of  financial  services, the president of the
    15  metropolitan transportation authority, the president of the port author-
    16  ity, the president of the dormitory authority, the commissioner  of  the
    17  department  of  health  and  all  other state commissioners in charge of
    18  financing as determined by  the  governor.  The  commission  shall  also
    19  include representatives of the state's principal subdivisions and appro-
    20  priate  public  finance  personnel  appointed  as follows: three members
    21  shall be appointed by the governor, two members shall  be  appointed  by
    22  the temporary president of the senate, two members shall be appointed by
    23  the speaker of the assembly, one member shall be appointed by the minor-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16226-02-0

        A. 10362--A                         2
 
     1  ity  leader  of  the  senate,  and  one member shall be appointed by the
     2  minority leader of the assembly.
     3    3.  The  commission  members  shall  be appointed immediately upon the
     4  effective date of this article and shall meet publicly  at  least  every
     5  week thereafter.
     6    §  461. Powers and duties of the commission. The commission shall have
     7  the following powers and duties:
     8    1. to determine how much funding to seek  and  whom  to  authorize  to
     9  begin preparations for the new issuances that the state and its subdivi-
    10  sions will sell to the Federal Reserve Municipal Liquidity Facility.
    11    2.  to consult with representatives of the Federal Reserve Bank of New
    12  York (acting in an ex officio capacity if necessary).
    13    3. to determine appropriate state and local personnel to handle  note-
    14  issuing and Federal Reserve-liaising tasks.
    15    4. to gather information, testimony, advice and all other deliberative
    16  inputs necessary to make sensible allocation decisions in respect of the
    17  new funding and recovery efforts related to novel coronavirus, COVID-19,
    18  that  will  be  incoming  from  the  Federal Reserve Municipal Liquidity
    19  Facility.
    20    5. to determine whether to approach the Federal  Reserve  for  further
    21  easing  of the terms of the Federal Reserve Municipal Liquidity Facility
    22  Term Sheet.
    23    6. The commission shall also, once the  municipal  liquidity  facility
    24  application and associated note-issuance process is underway, determine:
    25    (a)  whether  the state might benefit by establishing a public bank to
    26  manage, and perhaps "lever-up" through lending of its own on  the  basis
    27  of such deposits and/or capitalization as it receives, municipal liquid-
    28  ity  facility funds and such other funds as the state might receive (for
    29  example, federal paycheck protection program or federal  small  business
    30  administration  economic  injury disaster loan moneys) or make available
    31  for purposes of COVID-19 relief;
    32    (b) whether a public bank such as that contemplated in  paragraph  (a)
    33  of  this subdivision, or some other state instrumentality from among the
    34  authorities named in this article, might benefit the state by funding  a
    35  comprehensive  "gold  standard"  system  of  testing and contact-tracing
    36  persons residing or doing business in the state for COVID-19 infection;
    37    (c) whether a public bank such as that contemplated in  paragraph  (a)
    38  of  this subdivision, or some other state instrumentality from among the
    39  authorities named in this article, might benefit the state by  compulso-
    40  rily  purchasing, through use of the eminent domain authority, all nurs-
    41  ing homes in the state owned  by  for-profit  private  sector  entities,
    42  private equity funds in particular;
    43    (d)  whether  a public bank such as that contemplated in paragraph (a)
    44  of this subdivision, or some other state instrumentality from among  the
    45  authorities  named in this article, might benefit the state by affording
    46  lower-income residents of the state any form of temporary rent relief or
    47  mortgage debt relief;
    48    (e) whether a public bank such as that contemplated in  paragraph  (a)
    49  of  this subdivision, or some other state instrumentality from among the
    50  authorities named in this article, might benefit the state of  New  York
    51  by using federal paycheck protection program moneys, federal small busi-
    52  ness  administration  economic  injury  disaster  loan  moneys, or other
    53  moneys either to keep workers employed by their  present  employers  or,
    54  barring  that,  to assist workers in purchasing equity stakes in or full
    55  ownership of the firms that employ them; and

        A. 10362--A                         3
 
     1    (f) whether a public bank such as that contemplated in  paragraph  (a)
     2  of  this subdivision, or some other state instrumentality from among the
     3  authorities named in this article, might benefit the state in some other
     4  manner or manners through direct  or  indirect  use  of  newly  acquired
     5  federal   municipal  liquidity  facility,  federal  paycheck  protection
     6  program, or federal small business administration economic injury disas-
     7  ter loan funds.
     8    § 462. Reporting. The commission shall  report  its  findings  to  the
     9  governor  and  the legislature within one month of the effective date of
    10  this article and monthly thereafter.    Upon  the  transmission  of  the
    11  report to the governor and the legislature, the commissioner shall with-
    12  in thirty days determine whether the commission shall continue in opera-
    13  tion, or whether it shall be changed in some manner, or whether it shall
    14  be  dissolved,  and shall report his or her findings and recommendations
    15  to the governor and the legislature.
    16    § 463. Assistance of other agencies. To  effectuate  the  purposes  of
    17  this  article,  the  commission  may  request and shall receive from any
    18  department, division, board,  bureau,  commission  or  other  agency  or
    19  authority  of  the  state  such assistance, information and data as will
    20  enable the commission to properly carry out its  powers  and  duties  as
    21  described  in  section  four  hundred  sixty-one  of  this article. Such
    22  assistance shall not waive or impair the terms of an existing  agreement
    23  negotiated  between  the relevant employer and employee organization nor
    24  limit any obligation to  bargain  terms  and  conditions  of  employment
    25  pursuant to article fourteen of the civil service law.
    26    § 2. This act shall take effect immediately.
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