STATE OF NEW YORK ________________________________________________________________________ 10282 IN ASSEMBLY May 16, 2024 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Santabar- bara) -- read once and referred to the Committee on Local Governments AN ACT to amend the local finance law and chapter 419 of the laws of 1991, amending the local finance law and other laws relating to providing relief to local governments for certain mandated programs and services, in relation to local government borrowing practices and mandate relief The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph b of section 21.00 of the local finance law, as 2 amended by chapter 121 of the laws of 2021, is amended to read as 3 follows: 4 b. Serial bonds shall mature in annual installments. The first 5 installment shall mature not later than eighteen months after the date 6 of such bonds or two years after the date of the first bond anticipation 7 note or notes issued in anticipation of such bonds, whichever is the 8 earlier, provided, however, that until July fifteenth, two thousand 9 [twenty-four] twenty-seven, the first installment shall mature not later 10 than two years after the date of such bonds or two years after the date 11 of the first bond anticipation note or notes issued in anticipation of 12 such bonds, whichever is the earlier. However, if bond anticipation 13 notes are issued in anticipation of bonds and if a portion of such notes 14 or the renewals thereof are redeemed from a source other than the 15 proceeds of such bonds within two years from the date of the first such 16 note or notes and a further portion thereof shall be so redeemed prior 17 to the termination of each twelve months' period succeeding the date 18 such original portion was so redeemed, the first installment of such 19 bonds may, in the alternative, be made to mature not later than five 20 years from the date of the first such note or notes. 21 § 2. Paragraph b of section 53.00 of the local finance law, as amended 22 by chapter 121 of the laws of 2021, is amended to read as follows: 23 b. If such bonds or notes are payable in installments, the install- 24 ments remaining unpaid may be called for redemption only (i) in the 25 inverse order of their maturity or, (ii) in equal proportionate amounts; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15469-01-4
A. 10282 2 1 provided, however, that for bonds issued during the one-year period 2 commencing July first, nineteen hundred eighty-eight, and for bonds 3 issued during the one-year period commencing July first, nineteen 4 hundred eighty-nine, and for bonds issued during the one-year period 5 commencing July first, nineteen hundred ninety, and for bonds issued 6 during the three-year period commencing July first, nineteen hundred 7 ninety-one, and for bonds issued during the period from July first, 8 nineteen hundred ninety-four up until and including July fifteenth, 9 nineteen hundred ninety-seven and for bonds issued during the period 10 from July fifteenth, nineteen hundred ninety-seven up until and includ- 11 ing July fifteenth, two thousand, and for bonds issued during the period 12 from July fifteenth, two thousand up until and including July fifteenth, 13 two thousand three, and for bonds issued during the period from July 14 fifteenth, two thousand three up until and including July fifteenth, two 15 thousand six, and for bonds issued during the period from July 16 fifteenth, two thousand six up until and including July fifteenth, two 17 thousand nine, and for bonds issued during the period from July 18 fifteenth, two thousand six up until and including July fifteenth, two 19 thousand twelve, and for bonds issued during the period from July 20 fifteenth, two thousand nine up until and including July fifteenth, two 21 thousand fifteen, and for bonds issued during the period from July 22 fifteenth, two thousand fifteen up until and including July fifteenth, 23 two thousand eighteen, and for bonds issued during the period from July 24 fifteenth, two thousand eighteen up until and including July fifteenth, 25 two thousand twenty-one, and for bonds issued during the period from 26 July fifteenth, two thousand twenty-one up until and including July 27 fifteenth, two thousand twenty-four, and for bonds issued during the 28 period from July fifteenth, two thousand twenty-four up until and 29 including July fifteenth, two thousand twenty-seven, installments 30 remaining unpaid on such bonds may be called for redemption prior to 31 their date of maturity in such amounts, at such times in such manner and 32 pursuant to such terms as may be determined by the finance board of a 33 municipality, school district or district corporation at the time of the 34 issuance thereof. Whenever any bonds or notes are called for redemption 35 prior to the date of their maturity, interest shall cease to be paid 36 thereon after the date for redemption set forth in such call for redemp- 37 tion. The sum to be paid to redeem any unpaid installment prior to its 38 maturity, exclusive of the interest accruing on such installment to the 39 date of redemption, shall in no event be in excess of the lesser amount 40 of either (i) the par value of such installment plus one-half of one per 41 centum of such par value for each calendar year or part thereof elapsing 42 between the date for redemption set forth in such call for redemption 43 and the date of maturity of such installment, provided, however, that 44 such amount shall not exceed one hundred five per centum of such par 45 value, or (ii) the par value of such installment plus the total of all 46 unpaid interest on such installment which would have accrued from the 47 date of redemption to the date of maturity thereof had such installment 48 not been redeemed prior to maturity, except that bonds sold to the state 49 of New York municipal bond bank agency, which are subject to call as 50 hereinbefore authorized, may provide for the payment of a redemption 51 premium not to exceed five per centum of the par value of the bonds to 52 be called, payable on the date of the redemption thereof; provided, 53 however, that for bonds issued during the one-year period commencing 54 July first, nineteen hundred eighty-eight, and for bonds issued during 55 the one-year period commencing July first, nineteen hundred eighty-nine, 56 and for bonds issued during the one-year period commencing July first,
A. 10282 3 1 nineteen hundred ninety, and for bonds issued during the three-year 2 period commencing July first, nineteen hundred ninety-one, and for bonds 3 issued during the period from July first, nineteen hundred ninety-four 4 up until and including July fifteenth, nineteen hundred ninety-seven, 5 and for bonds issued during the period from July fifteenth, nineteen 6 hundred ninety-seven up until and including July fifteenth, two thou- 7 sand, and for bonds issued during the period from July fifteenth, two 8 thousand up until and including July fifteenth, two thousand three, and 9 for bonds issued during the period from July fifteenth, two thousand 10 three up until and including July fifteenth, two thousand six, and for 11 bonds issued during the period from July fifteenth, two thousand six up 12 until and including July fifteenth, two thousand nine, and for bonds 13 issued during the period from July fifteenth, two thousand nine up until 14 and including July fifteenth, two thousand twelve, and for bonds issued 15 during the period from July fifteenth, two thousand twelve up until and 16 including July fifteenth, two thousand fifteen, and for bonds issued 17 during the period from July fifteenth, two thousand fifteen up until and 18 including July fifteenth, two thousand eighteen, and for bonds issued 19 during the period from July fifteenth, two thousand eighteen up until 20 and including July fifteenth, two thousand twenty-one, and for bonds 21 issued during the period from July fifteenth, two thousand twenty-one up 22 until and including July fifteenth, two thousand twenty-four, and for 23 bonds issued during the period from July fifteenth, two thousand twen- 24 ty-four up until and including July fifteenth, two thousand twenty-sev- 25 en, a municipality, school district, or district corporation may provide 26 for redemption of such bonds prior to the date of their maturity at a 27 price or prices as may be as determined by the issuer of such bonds or 28 notes at the time of the issuance thereof. 29 § 3. The opening paragraph of paragraph a of section 54.90 of the 30 local finance law, as amended by chapter 121 of the laws of 2021, is 31 amended to read as follows: 32 Whenever in the judgment of the finance board the interest of a muni- 33 cipality would be served thereby, the municipality may issue bonds or 34 notes, on or before July fifteenth, two thousand [twenty-four] twenty- 35 seven, with interest rates that vary in accordance with a formula or 36 procedure and are subject to a maximum rate of interest set forth or 37 referred to in the bonds or notes and may provide the holders thereof 38 with such rights to require the municipality or other persons to 39 purchase such bonds or notes or renewals thereof from the proceeds of 40 the resale thereof or otherwise from time to time prior to the final 41 maturity of such bonds or notes as the finance board may determine and 42 the municipality may resell, at any time prior to final maturity, any 43 such bonds or notes acquired as a result of the exercise of such rights; 44 provided, however, that at no time shall the total principal amount of 45 bonds and notes issued pursuant to this paragraph (other than bonds and 46 notes bearing interest at rates and for periods of time that are speci- 47 fied at issuance) exceed ten percent of the limit prescribed by section 48 104.00 of this article. 49 § 4. Subdivision 9 of paragraph d of section 107.00 of the local 50 finance law, as amended by chapter 121 of the laws of 2021, is amended 51 to read as follows: 52 9. Notwithstanding any other provision of law, the financing by any 53 municipality, prior to July fifteenth, two thousand [twenty-four] twen- 54 ty-seven, of any object or purpose which has a period of probable 55 usefulness determined by law, by the issuance of any bonds and notes, 56 including (i) the issuance of bonds or notes, to redeem notes previously
A. 10282 4 1 issued for the object or purpose for which the bonds or notes are being 2 issued or (ii) the issuance of bonds to refund bonds previously issued 3 for the object or purpose for which bonds are being issued. 4 § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws 5 of 1991, amending the local finance law and other laws relating to 6 providing relief to local governments for certain mandated programs and 7 services, as amended by chapter 121 of the laws of 2021, are amended to 8 read as follows: 9 (a) sections six, sixteen and seventeen of this act shall expire and 10 be deemed repealed on and after July 15, [2024] 2027, and upon such date 11 the amendments made to the provisions of the local finance law by such 12 sections shall also expire and such provisions shall revert to and be 13 read as set out in law on the date immediately preceding the effective 14 date of such sections six, sixteen and seventeen of this act; 15 (e) subdivision (b) of section thirty-five of this act shall expire 16 and be deemed repealed on and after July 15, [2024] 2027; 17 § 6. This act shall take effect immediately.