senate Bill S4726

Authorizes the expenditure and temporary transfer of reserve funds for expenses related to the storm commonly known as Sandy

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 19 / Apr / 2013
    • REFERRED TO RULES
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1388
  • 17 / Jun / 2013
    • SUBSTITUTED BY A5550

Summary

Authorizes the expenditure and temporary transfer of reserve funds for the expenses related to the storm commonly known as Sandy; authorizes such transfers for both capital costs and operating costs; provides a timetable for reimbursement of funds transferred for operating costs.

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Bill Details

See Assembly Version of this Bill:
A5550
Versions:
S4726
Legislative Cycle:
2013-2014
Law Section:
Municipalities

Sponsor Memo

BILL NUMBER:S4726

TITLE OF BILL: An act authorizing the expenditure and temporary
transfer of reserve funds for expenses related to the storm commonly
known as Sandy

PURPOSE:

The bill allows local governments and school districts impacted by the
storm commonly known as Sandy to expend and temporarily transfer
reserve funds for Sandy-related expenses, notwithstanding certain
restrictions contained in sections of the General Municipal Law and
Education Law.

SUMMARY OF PROVISIONS:

Section one of the bill would authorize local governments and school
districts to expend moneys from capital reserve funds for capital
costs attributable to the storm commonly known as Sandy, without the
referendum requirements that would otherwise apply. Section two of the
bill would authorize local governments and school districts to
temporarily transfer moneys from any reserve fund to pay for
operating, costs attributable to Sandy. The moneys that are
transferred must be reimbursed from the fund into which they were
transferred back into the reserve fund over a period of not more than
five years. At least twenty percent of the moneys must be reimbursed
each year, with interest.

LEGISLATIVE HISTORY:

New bill.

JUSTIFICATION:

It has been projected that the costs for damages from Storm Sandy
could exceed S18 billion for New York State. Infrastructure,
including highways, airports, seaports and sewer and water systems,
was severely impacted. While much of the cost ultimately may be
covered by insurance or federal assistance, the affected
municipalities need additional flexibility in advancing funds for the
payment of these costs prior to reimbursement or covering those costs
that ultimately are not reimbursed.

This bill would help provide that flexibility by allowing local
governments and school district to expend moneys from their capital
reserve, fund without the need to comply with referendum
requirements.. The public benefit in facilitating prompt access to
these moneys for their intended purposes, in response to the emergency
conditions caused by Sandy, justifies this one-time exception to the
usual referendum requirements. Similarly, the bill would allow local
governments and school districts to readily access capital and other
reserve fund moneys to be temporarily advanced to cover operating
costs attributable to Sandy, notwithstanding that these reserve fund
moneys are statutorily restricted for specified uses. To ensure that
the lending reserve fund is made whole so that the moneys advanced
ultimately will be used for the originally intended purpose; the local


government or school district must reimburse the reserve fund, with
interest, over a period of not more than five years.

RECOMMENDATION:

The Comptroller urges passage of this legislation.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4726

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 19, 2013
                               ___________

Introduced  by  COMMITTEE  ON  RULES  --  (at request of the State Comp-
  troller) -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Rules

AN  ACT  authorizing  the  expenditure and temporary transfer of reserve
  funds for expenses related to the storm commonly known as Sandy

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Notwithstanding any provision of section 6-c or 6-g of the
general municipal law or section  3651  of  the  education  law  to  the
contrary,  the  governing  board of a town, village, county, city, water
improvement district,  sewer  improvement  district,  fire  district  or
school  district, by resolution which shall not be subject to referendum
requirements, may authorize expenditures from capital reserve funds  for
capital costs attributable to the storm commonly known as Sandy.
  S  2.  Notwithstanding any provision of the general municipal law, the
town law or the education law to the contrary, the governing board of  a
town,  village, county, city, water improvement district, sewer improve-
ment district, fire district or school  district,  by  resolution  which
shall  not  be subject to referendum requirements, if any, may authorize
the temporary transfer of moneys from reserve funds to pay for operating
costs attributable to the storm commonly known as Sandy, provided,  that
the reserve fund from which the funds were temporarily transferred shall
be reimbursed from the fund to which the transfer was made over a period
of  not  more  than  five  fiscal  years,  starting with the fiscal year
following the transfer.  At least twenty percent of the moneys temporar-
ily transferred shall be reimbursed each fiscal year.   Such  reimburse-
ment  shall  include an additional amount reasonably estimated to be the
amount that would have been earned on the investment of the  transferred
moneys had they been retained in the capital reserve fund.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05510-01-3

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