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Sponsors
Senator · Senate District 45
No co-sponsors yet.
History
- Substituted by A10255
- Ordered to third reading cal.1699
- Reported and committed to rules
- Reported and committed to finance
- Referred to housing, construction and community development
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 federal bond volume allocations, the unified state bond ceiling and the private activity bond allocation act of 2016
Signed by Governor · Sponsor William Magnarelli
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act in relation to redistributing 2014 bond volume allocations made pursuant to section 146 of the federal tax reform act of 1986, allocation of the unified state bond volume ceiling, and enacting the private activity bond allocation act of 2016; and providing for the repeal of certain provisions upon expiration thereof
Purpose
This bill would provide an orderly and efficient tax-exempt, private activity bond allocation process for State and local issuers by extending for an additional two years to July 1, 2017 the current allocation system and modifying the 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 2016."
Read the full memo (941 words)
Section 2 of the bill would set forth the legislative findings.
Section 3 of the bill would define terms.
Sections 4 through 6, 8 through 10 and 16 of the bill would detail the allocation formula for the distribution of private activity bond volume ceiling ("IDB Cap") as follows: one-third of the IDB Cap would be available to State agencies, one-third would be available to local agencies(industrial development agencies or IDAs) and one-third would be available to a statewide bond reserve for use by both the State and IDAs. In addition, the ESD commissioner would be required to publish the amount of recaptured local set aside on its website each year.
Section 7 of the bill would set 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 11 of the bill would authorize the process for future allocations of statewide ceiling for certain multi-year housing development projects.
Sections 12 and 13 of the bill would detail provisions relating to year end recapture of IDB Cap to the statewide bond reserve and procedures for carry forward elections of IDB Cap, respectively. Also, the Director of the Division of Budget is required to publish the total amount of unused statewide ceiling from the prior year on the division of budget's website by January 15th of each year.
Section 14 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. The Director of the Division of Budget is required to publish an annual volume cap report on its website concurrently with providing the report to the bond allocation advisory panel.
Section 15 of the bill would provide for a severability provision.
Section 17 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 18 of the bill would provide for an immediate effective date.
Existing law
Most of the provisions of the Private Activity Bond Allocation Act of 2014 will expire on January 1, 2016.
Justification
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. 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. 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.
The multi-year funding provision enacted in 2000 authorizing the multi-year funding of large residential projects, as modified in the Private Activity Bond Allocation Act of 2008, has served New York well. It authorizes the allocation of volume cap over more than one year, thereby providing funds in the actual year they are needed and permitting more large projects to proceed. As development projects grow in scale, they face increasing regulatory hurdles and take longer to complete. Issuers around the state are now familiar with the multi-year process, and therefore the statutory continuation of this approach would provide the least disruptive, most flexible and least costly alternative for the allocation of the state's bond volume. 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 short, this bill would continue the orderly flow of Private Activity Bonds for the development and preservation of affordable housing and other economic activity in New York. This bill would also require more transparency about how much the State has recaptured or carried forward.
Legislative history
Similar bills have been enacted on an annual basis with respect to the State's bond volume system. See Chapter 49 of 2014; 83 of the Laws of 2012; Chapter 71 of the Laws of 2011; Chapter 214 of the Laws of 2010; Chapter 180 of the Laws of 2009; 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.
Fiscal implications
None
Effective date
This bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.