What's happening
This bill creates a special state-managed Puerto Rican relief account to invest and hold federal recovery funds for Puerto Rico.
Why it matters
Strengthens Oversight and Security of Aid Funds. By assigning New York State’s comptroller to manage and invest Puerto Rico’s federal recovery funds, the bill aims to ensure professional oversight, reduce mismanagement risks, and potentially increase returns on aid money before it is disbursed for recovery efforts.
Maximizes Value of Federal Aid. The legislation allows these funds to be invested in a diversified portfolio of high-grade securities, with strict limits on risk and concentration. This could help the account grow and generate additional interest income, ultimately providing more resources for Puerto Rican recovery projects.
Ensures Transparency and Accountability. By requiring annual interest crediting, clear reporting, and allowing only necessary administrative fees, the bill sets up mechanisms for transparency, which may increase public trust in how disaster relief funds are handled and reduce opportunities for misuse.
Empowers Puerto Rico with Exit Control. The bill gives the Commonwealth of Puerto Rico the ability to terminate the account with 180 days’ notice, ensuring that Puerto Rico retains agency and flexibility over its own funds and can access them as needed for recovery timelines.
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Who cares
Commonwealth of Puerto Rico
The bill would place its federal recovery and relief funds under the Bipartisan Budget Act of 2018 in a New York-managed account, with investment returns solely benefiting the commonwealth and at least 180 days’ notice required to retrieve all funds.
New York State comptroller
The bill would assign custody and investment management of the account to the comptroller, authorize necessary administration fees and require annual interest credits.
Railroad, industrial and utility corporations
The bill would allow the account to invest in qualifying corporate obligations, subject to credit-rating requirements, a 30% overall cap and limits on holdings from any one corporation and its subsidiaries.
Headline styles
Create Puerto Rico Relief Fund
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 32
No co-sponsors yet.
History
- Referred to finance
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.
Create Puerto Rican Relief Account
In Assembly Committee · Ways And Means · Sponsor Robert J. Rodriguez
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7959
IN SENATE
March 4, 2020
Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to creating the Puerto Rican relief account; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 96-a to read as follows:
§ 96-a. Puerto Rican relief account. 1. There is hereby established at the request of the Commonwealth of Puerto Rico and in the custody of the comptroller a special account to be known as the "Puerto Rican relief account".
2. The sources of funds shall consist of all recovery and relief funds provided by the federal government to the Commonwealth of Puerto Rico under the Bipartisan Budget Act of 2018.
3. (a) The comptroller shall invest such funds in securities in which he is authorized by law to invest the funds of the state, except that he may invest in obligations consisting of notes, bonds, debentures, or equipment trust certificates issued under an indenture, which are the direct obligations of, or in the case of equipment trust certificates are secured by direct obligations of, a railroad or industrial corporation, or a corporation engaged directly and primarily in the production, transportation, distribution, or sale of electricity or gas, or the operation of telephone or telegraph systems or waterworks, or in some combination of them; provided the obligor corporation is one which is incorporated under the laws of the United States, or any state thereof, or of the District of Columbia, and said obligations shall be rated at the time of purchase within the three highest classifications established by at least two standard rating services. The maximum amount that the comptroller may invest in such obligations shall not exceed thirty per centum of the assets of such account; and provided further that not more than two and one-half per centum of the assets of such account shall be invested in the obligations of any one corporation of the high-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06917-01-9
S. 7959 2
est classification and subsidiary or subsidiaries thereof, that not more than two per centum of the assets of such account shall be invested in the obligations of any one corporation of the second highest classification and subsidiary or subsidiaries thereof, that not more than one and one-half per centum of such account shall be invested in the obligations of any one corporation of the third highest classification and subsidiary or subsidiaries thereof. He shall, however, be subject to all terms, conditions, limitations and restrictions imposed by law upon the making of such investments. The comptroller shall have full power:
(i) To hold, purchase, sell, assign, transfer or dispose of any of the securities or investments, in which any assets of such account shall be invested, including the proceeds of such investments and any monies belonging to such account, and
(ii) In his or her name as trustee, to foreclose mortgages upon default or to take title to real property in such proceedings in lieu thereof and to lease and sell real property so acquired.
(b) All returns on any investments made by the comptroller of any funds from such account shall be deposited within such account for the sole benefit of the Commonwealth of Puerto Rico.
(c) The comptroller annually shall credit to such account regular interest on the mean amount therein for the preceding year.
(d) The comptroller is authorized to deduct any necessary administration fees for the management of such account.
4. The Commonwealth of Puerto Rico shall notify the comptroller of their intention to terminate such account no later than the one hundred eightieth day prior to the date such commonwealth requires the return of all funds from such account.
§ 2. This act shall take effect immediately and shall expire and be deemed repealed 5 years after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to creating the Puer- to Rican relief account; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL::
This bill would establish a New York State Puerto Rico Relief Account
SUMMARY OF PROVISIONS::
Authorizes the Office of the NYS Comptroller to set up an account to manage any recovery and relief funds provided by the federal government to the government of Puerto Rico under the Bipartisan Budget Act of 2018. The account would be set up at the request of the Puerto Rican Government. The funds in the account shall be managed as all other state pension funds are managed with return on investments being delivered to the government of Puerto Rico. The NYS Comptroller is authorized to deduct an administration fee for the management of such funds. The government of Puerto Rico shall notify the OSC of their intentions to end this arrangement no later than 180 days from when all funds should be returned to Puerto Rico. The OSC should use all its technical and financial expertise to assist the investment and growth of funds provided to Puerto Rico under the federal Bipartisan Budget Act of 2018. The authority of this act shall expire within five years and can be renewed by act of legislature. This act shall take effect immediately.
Difference between original and amended version (if applicable)
JUSTIFICATION::
The Initiative unveiled by the Latino Caucus authorizes the Office of the New York State Comptroller to lend its financial investment exper- tise to the government of Puerto Rico by setting up a Puerto Rico Relief Account. Earlier this year, Congress authorized and the President signed into law the Bipartisan Budget Act of 2018, which provides Puerto Rico with some $38 Billion for recovery and relief efforts needed due to the devastation by Hurricane Maria. We need to continue to push for policies that will help Puerto Ricans rebuild their lives and their homes in the short and long term. This measure will help Puerto Ricans, whether they are still on the island or whether they have relocated to New York, by providing those displaced with the assistance they need to move from transitional to permanent housing and by giving Puerto Rico access to tools, information, and resources to improve their financial situations. The NYS Comptroller's office manages the third largest pension system in the United States and had a return on investment of 11.35 percent last year for a total worth of over $206.9 billion. The financial and invest- ment experts working at OSC can help Puerto Rico by providing their incredible talents to the island's government by helping Puerto Rico invest and manage the recovery money during its pending expenditure on rebuilding and relief efforts. OSC can help stretch these federal dollars in a manner no other entity can and with no risk to the State's pension system or New York. New York must step in and assist the Puerto Rican people in this tremendous time and need. We cannot stand by while
2,300 families risk losing the emergency housing they so desperately need.
PRIOR LEGISLATIVE HISTORY::
Introduced in the Senate and Assembly in 2018 as S.8948/A.11199
FISCAL IMPLICATIONS FOR STATE LOCAL GOVERNMENTS::
None to state
EFFECTIVE DATE::
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.