|SAME AS||SAME AS S08459|
|COSPNSR||Ortiz, DenDekker, Englebright, Jacobson, Mosley, Simotas, Thiele, Barron, Giglio, Simon|
|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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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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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. LBD16226-02-0A. 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; andA. 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.