What's happening
This bill extends the expiration date for statutory installment bonds under the local finance law from 2017 to 2020.
Why it matters
Provides local governments with continued access to statutory installment bonds. for three more years, which can help municipalities finance infrastructure projects more flexibly and affordably.
Delaying the expiration of this financing tool may help towns and cities manage budgets and cash flow. , especially for large or unexpected capital needs, without relying on more expensive or restrictive borrowing options.
By extending the effectiveness of this law, the bill could support ongoing or planned public works and environmental projects. , as local governments retain an important financing mechanism that might otherwise lapse.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Extend Bond Law Expiration
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.139
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.300
- Substituted for A6509
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.582
Show 1 earlier action
- Referred to local government
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.
Extend Bond Law Deadline
Assembly Floor Calendar · Sponsor William Magnarelli
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5383
2017-2018 Regular Sessions
IN SENATE
March 23, 2017
Introduced by Sen. MARCHIONE -- (at request of the Environmental Facilities Corporation) -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend chapter 581 of the laws of 2005 amending the local finance law relating to statutory installment bonds, in relation to extending the effectiveness thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2 of chapter 581 of the laws of 2005 amending the local finance law relating to statutory installment bonds, as amended by chapter 110 of the laws of 2014, is amended to read as follows:
§ 2. This act shall take effect immediately and shall remain in full force and effect until September 30, [2017] 2020, at which time it shall expire and be deemed repealed.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09931-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 581 of the laws of 2005 amending the local finance law relating to statutory installment bonds, in relation to extending the effectiveness thereof
Purpose of the bill
The bill would extend to September 30, 2020 provisions relating to statutory installment bonds issued to the New York State Environmental Facilities Corporation ("EFC").
Summary of provisions
Section 1 of the bill would extend until September 30, 2020 the "sunset" provision of Section 2 of Chapter 581 of the Laws of 2005, thereby extending for an additional three years the provisions of Local Finance Law ("LFL") § 62.10(c) which authorizes local governments to issue statutory installment bonds in an amount not to exceed $20 million to EFC at a fixed rate or, if issued in serial maturities, at a set rate for each individual maturity.
Section 2 of the bill provides for an immediate effective date.
Justification
EFC administers the Clean Water State Revolving Fund ("CWSRF") and the Drinking Water State Revolving Fund ("DWSRF"). Under these revolving fund programs, EFC provides low cost financial assistance to municipalities and other entities for water and wastewater infrastructure and other environmental projects. As of September 30, 2016, EFC has issued approximately $17.4 billion in State Revolving Fund Bonds under the CWSRF program and the DWSRF program for the purpose of providing financial assistance to local governments and public benefit corporations.
Before 2005, in accordance with the LFL, a borrower receiving EFC financing was required to issue serial bonds to EFC for each maturity; i.e., for a 20 year financing, EFC would receive 20 separate bonds from the community. The issuance of serial bonds caused EFC, and those providing trustee services, excessive servicing cost and substantial time in handling and processing of multiple bonds. This process also resulted in unnecessary bonding costs for EFC's borrowers.
A single debt instrument for financings at or under $20 million, such as a statutory installment bond, reduces the costs associated with printing, processing and storage. Reduced paper usage achieves environmental benefits, while also reducing the chance of error associated with multiple printed bonds. This simplified approach also benefits borrowers in making the financing process more "user friendly" while enhancing the efficient preparation and execution of the bonds.
Prior legislative history
LFL § 62.10(c) was extended until September 30, 2011 by Chapter 213 of the Laws of 2008, until September 30, 2014 by Chapter 69 of the Laws of 2011 and until September 30, 2017 by Chapter 110 of the Laws of 2014.
Fiscal implications
The bill would have no budget implications to the State.
Effective date
The 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.