Extends certain provisions of law relating to temporary investments by local governments

4 Co-sponsors

• Joseph P. Addabbo Jr.
• Tony Avella
• Simcha Felder
• John L. Sampson

BILL NUMBER:S6624

Title of bill

An act to amend chapter 130 of the laws of 1998, amending the general municipal law relating to temporary investments by local governments, in relation to extending the expiration of the provisions thereof

Summary of provisions

Section two would extend the sunset date of the subdivision 3 of section n of the General Municipal Law to July 1, 2017.

Section three sets forth the effective date.

Justification

The "Temporary Investments" subdivision of the General Municipal Law, affecting only New York City, sunsets June 30, 2014. This bill would extend the sunset date to July 1, 2017.

Under the statute, New York City is permitted to invest in certain low risk, short term obligations, including top quality commercial paper. In an analysis done by New York City Comptroller Scott Stringer's office, New York City could lose around $10 million annually without this extension of the law.

This Legislature has voted to extend and the Governor has approved extending the sunset provision for three years on multiple occasions, most recently in 2011. This has provided New York City with increased flexibility in its investment decisions and has consequently allowed the City to achieve higher yields on its investments, without a significant increase in risk.

This bill is supported by the New York City Comptroller.

Legislative history

2011: S.5486 /A.7735 - Chapter 107.

Fiscal implications

None to the State

Effective date

This act shall take effect immediately; provided however, if this act shall have become a law after July 1, 2014 it shall be deemed to have been full force and effect on and after July 1, 2014.