What's happening
This bill allows bond anticipation notes issued in 2014, 2015, 2016, 2017, or 2018 to be renewed for up to seven years.
Why it matters
Helps local governments manage short-term debt. By allowing renewals of bond anticipation notes (BANs) for up to seven years, municipalities gain more time to manage and refinance their debt, potentially easing budget pressures.
Addresses projects from 2014-2018. Extending the renewal period for BANs issued in those years recognizes that many local projects or financial plans may have faced delays or unexpected costs, offering flexibility to complete or finance them without immediate long-term borrowing.
Reduces risk of forced borrowing at unfavorable terms. Without this extension, localities might have been compelled to issue long-term bonds sooner than planned—possibly at higher interest rates or under less favorable financial conditions.
Could impact local tax rates and services. By smoothing out debt payments, municipalities might avoid sudden spikes in local taxes or reductions in public services that could result from having to pay off or refinance BANs more quickly.
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Who cares
Headline styles
Extend Bond Note Renewals
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to local government
- 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 Note Renewals
In Assembly Committee · Local Governments · Sponsor Ellen C. Jaffee
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5631
2019-2020 Regular Sessions
IN SENATE
May 9, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the local finance law, in relation to the renewal of bond anticipation notes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph 2 of paragraph b of section 23.00 of the local finance law, as amended by chapter 264 of the laws of 2012, is amended to read as follows:
2. renewals of bond anticipation notes issued originally during calendar year two thousand [seven or] fourteen, two thousand [eight] fifteen, two thousand sixteen, two thousand seventeen, or two thousand eighteen may not extend more than seven years beyond the original date of issue of such bond anticipation notes.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10808-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the local finance law, in relation to the renewal of bond anticipation notes
Purpose or general idea of bill
To extend the rollover period for Bond Anticipation Notes issued during calendar years 2014, 2015, 2016, 2017 or 2018 to not more than seven years.
Summary of specific provisions
Section 1 of the bill amends subparagraph 2 of paragraph b of section 23.00 of the local finance law, as amended by chapter 264 of the laws of 2012 to to extend the rollover period for Bond Anticipation Notes issued during calendar years 2014, 2015, 2016, 2017 or 2018.
Justification
Currently, except for bond anticipation notes issued in 2007 or 2008, local governments are authorized to extend or roll over bond antic- ipation notes for up to 5 years. At the end of the period, the bond anticipation notes must be retired or converted into long-term debt. This legislation would extend the rollover period for bond anticipation notes issued during calendar years 2014, 2015, 2016, 2017 and 2018 from 5 years to 7 years, thereby providing municipalities the option to renew the notes for an additional 2 more years.
Legislative history
This is new legislation.
Fiscal implications
None, may result in cost savings to localities.
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.