What's happening
This bill authorizes the North Country Alliance Local Development Corporation to use trust fund interest to pay administrative costs.
Why it matters
Allows greater flexibility in funding day-to-day operations. By permitting the use of trust fund interest for administrative costs, the North Country Alliance Local Development Corporation can better cover its basic expenses without seeking new funding sources or reducing support for its main programs.
Could help sustain local economic development efforts. Ensuring administrative costs are covered may improve the organization's ability to maintain staff and operations, enabling it to continue supporting business growth and job creation in the North Country region.
May set a precedent for similar organizations. If successful, this approach could encourage other development corporations or nonprofits with restricted funds to seek similar authorization, potentially changing how such organizations manage and allocate their resources.
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Who cares
Headline styles
Allow Trust Fund Interest Spending
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Returned to senate
- Died in assembly
- Referred to local governments
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.526
- Referred to corporations, authorities and commissions
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3016
2017-2018 Regular Sessions
IN SENATE
January 19, 2017
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT in relation to authorizing the North Country Alliance Local Development Corporation to utilize interest derived from the North Country Alliance trust fund to cover administrative costs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding any other law, rule or regulation to the contrary, the regional corporation is hereby authorized to pay administrative costs using interest derived from the trust fund.
For the purposes of this act, the terms "administrative costs", "regional corporation" and "trust fund" shall have the same meaning as defined in the agreement entered into in 1989 between the North Country Alliance Local Development Corporation and the New York State Urban Development Corporation.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08234-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act in relation to authorizing the North Country Alliance Local Development Corporation to utilize interest derived from the North Country Alliance trust fund to cover administrative costs
Purpose
To authorize the North Country Alliance Local Development Corporation to utilize interest derived from the North Country Alliance trust fund to finance its administrative costs
Summary of provisions
Section 1 provides the regional corporation, North Country Alliance, is authorized to pay administrative costs using interest derived from the trust fund. For this purpose, "administrative costs," "regional corporation," and "trust fund," shall have the same meaning as defined in the 1989 agreement between the North Country Alliance Local Development Corporation and the New York State Urban Development Corporation.
Section 2 provides the effective date.
Existing law
Under Section 6 of the Omnibus Economic Development Act of 1987, North Country Alliance entered into what is known as the Regional Revolving Loan Trust Fund Agreement with the New York State Urban Development Corporation in 1989.
Justification
In March 1989, North Country Alliance (NCA) entered into what is known as the Regional Revolving Loan Trust Fund Agreement with the New York State Urban Development Corporation (UDC). The Agreement established NCA's Regional Revolving Loan Fund to provide low interest loans for working capital to small businesses. The Agreement initially provided for administrative funds to be paid from the Trust Fund Account proceeds. This fund is comprised of the original grant funds from the UDC, as well as repayments on loans. However, the administrative funds NCA received were always paid from a General and Administrative Account held by the UDC, which was capitalized with dividends and interest earned on the investments of the Trust Fund Account.
Since 2010, the UDC has capitalized the General and Administrative Account. Therefore, NCA has not been able to receive its eligible allotment of administrative funds pursuant to the original Agreement. This is providing a serious burden on the NCA and will likely result in the corporation having to increase fees to borrower in order to recover costs associated with overseeing the program. Because NCA promotes small business growth and job creation, increasing borrower fees is antithetical to the mission of the organization.
This legislation alleviates the need for NCA to increase its borrower fees by authorizing NCA to use interest derived from the Trust Fund Account to pay certain administrative costs as outlined by the Agreement. Providing such statutory authorization does not have any negative fiscal impact on the State, as this is not a new appropriation, but the authorization for the use of existing funds.
Legislative history
2016: S.6981 Passed the Senate.
Fiscal implications
None. This measure will not require a new appropriation and is simply authorizing the use of existing funds.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.