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Sponsors
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History
- Substituted by A8570
- Advanced to third reading
- 2nd report cal.
- 1st report cal.492
- Print number 3363a
- Amend and recommit to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to redistributing 2008 bond volume allocations
Signed by Governor · Sponsor Sam Hoyt
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act in relation to redistributing 2008 bond volume allocations made pursuant to section 146 of the federal tax reform act of 1986, in relation to allocation of the unified state bond volume ceiling, and in relation to enacting the private activity bond allocation act of 2009 and providing for the expiration of certain provisions thereof
Purpose
This bill would provide a mechanism for the orderly and efficient tax-exempt, private activity bond allocation process for state and local issuers by extending for an additional year to January 1, 2010 the current allocation system and modifying use of bond allocations and multi-year set asides.
Summary of provisions
Section 1 of the bill would set forth the title, "Private Activity Bond Allocation Act of 2009."
Read the full memo (805 words)
Section 2 of the bill would set forth State legislative findings.
Section 3 of the bill would set forth defined terms.
Sections 4 through 6, 8 through 10 and 15 of the bill would detail the allocation formula for the distribution of private activity bond volume ceiling ("IDB Cap"), which can generally be described as follows: one-third of the IDB Cap is available to State agencies, one-third is available to local agencies (industrial development agencies or IDAs) and one-third is available to a statewide bond reserve for use by both the State and IDAs.
Section 7 of the bill would provide for certain requirements and conditions relating to access to new employment opportunities created in connection with industrial or manufacturing projects financed through the issuance of qualified small issue bonds.
Section 10-a of the bill would authorize and describe the process for future allocations of statewide ceiling for certain multi-year housing development projects.
Sections 11 and 12 of the bill would detail provisions relating to year end recapture of IDB Cap to the statewide bond reserve and procedures for carryforward elections of IDB Cap, respectively.
Section 13 of the bill would create a New York State Bond Allocation Policy Advisory Panel to provide policy advice regarding the priorities for distribution of the statewide ceiling.
Section 14 of the bill would provide for a severability provision.
Section 16 of the bill would prohibit the proposed legislation from superseding, altering or impairing any allocation of IDB Cap made prior to the effective date of the legislation.
Section 17 of the bill would provide for an immediate effective date.
Existing law
Most of the provisions of the Private Activity Bond Allocation Act of 2008 expired on January 1, 2009.
Legislative history
Similar bills have been enacted on an annual basis with respect to the State's bond volume system. See Chapter 110 of the Laws of 2008; Chapter 593 of the Laws of 2007; Chapter 228 of the Laws of 2006; Chapter 79 of the Laws of 2005; Chapter 27 of the Laws of 2004; Chapter 32 of the Laws of 2003; Chapter 97 of the Laws of 2002; and Chapter 15 of the Laws of 2001.
Statement in support
The Federal Tax Reform Act of 1986, as amended, imposes a ceiling on the volume of tax exempt, private activity and certain other bonds that may be issued in a state in any given year. It also establishes an allocation formula which provides 50% of the statewide IDB Cap to State agencies and the remaining 50% to local governments. New York State has opted to establish an alternative method of distribution in which one-third of the IDB Cap is available to State agencies, one-third to local agencies (industrial development agencies or IDAs) and one-third to a statewide bond reserve for use by both the State and IDAs. Federal law permitted temporary modification of this allocation formula by gubernatorial executive order until December 31, 1987. Following this sunset, the federal act permits states to establish an alternative formula for allocation by statute.
The system implemented in 2000, regarding the multi-year funding of large residential projects, as modified in the Private Activity Bond Allocation Act of 2008, has served New York well. As development projects grow in scale, they face increasing regulatory hurdles and take longer to complete. Further, issuers around the state are familiar with the process, and therefore the statutory continuation of this approach will provide the least disruptive, most flexible and least costly alternative for the allocation of the State's bond volume. The multi-year provision permits more of these projects to proceed and provides funds in the actual year it is needed. This bill is necessary to sustain construction activity and jobs and to continue the development of much-needed affordable housing for all New Yorkers.
In sum, this bill will continue the orderly flow of Private Activity Bonds for the development of affordable housing and other economic activity in New York.
Budget implications
None.
Effective date
This bill takes effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.