senate Bill S6978

Signed by Governor

Extends the special powers of the environmental facilities corporation

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Sponsor

Bill Status


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

  • 09 / Apr / 2014
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 13 / May / 2014
    • 1ST REPORT CAL.628
  • 14 / May / 2014
    • 2ND REPORT CAL.
  • 19 / May / 2014
    • ADVANCED TO THIRD READING
  • 20 / May / 2014
    • PASSED SENATE
  • 20 / May / 2014
    • DELIVERED TO ASSEMBLY
  • 20 / May / 2014
    • REFERRED TO WAYS AND MEANS
  • 09 / Jun / 2014
    • SUBSTITUTED FOR A9425
  • 09 / Jun / 2014
    • ORDERED TO THIRD READING CAL.859
  • 09 / Jun / 2014
    • PASSED ASSEMBLY
  • 09 / Jun / 2014
    • RETURNED TO SENATE
  • 11 / Jul / 2014
    • DELIVERED TO GOVERNOR
  • 22 / Jul / 2014
    • SIGNED CHAP.159

Summary

Extends the special powers of the environmental facilities corporation.

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Bill Details

See Assembly Version of this Bill:
A9425
Versions:
S6978
Legislative Cycle:
2013-2014
Law Section:
Environmental Conservation
Laws Affected:
Amd ยง3, Chap 307 of 2005

Sponsor Memo

BILL NUMBER:S6978

TITLE OF BILL: An act to amend chapter 307 of the laws of 2005,
amending the public authorities law relating to the special powers of
the New York state environmental facilities corporation, in relation
to extending the effectiveness thereof

Purpose of the Bill:

This bill would extend for three years, to September 30, 2017, certain
provisions of Sections 1285-j and 1285-m of the Public Authorities Law
("PAL") in relation to the special powers of the Environmental
Facilities Corporation ("EFC").

Summary of Provisions:

Section 1 of this bill would extend the "sunset" provision of Section
3 of Chapter 307 of the Laws of 2005, thereby extending until
September 30, 2017 the authority of EFC to directly invest Clean Water
State Revolving Fund ("CWSRF") monies and Drinking Water State
Revolving Fund ("DWSRF") monies in any security obligation available
to municipalities under the General Municipal Law ("GML").

Section 2 of the bill provides for an immediate effective date.

Existing Law:

Currently, under PAL Sections 1285-j(6)(b) and 1285-m(6)(b), certain
monies held in the CWSRF and DWSRF may be invested in obligations
permitted under Section 10 of the GML. These provisions, however, will
be deemed repealed as of September 30, 2014.

Prior Legislative History:

These provisions were extended until September 30, 2011 by Chapter 214
of the Laws of 2008, and until September 30, 2014 by Chapter 70 of the
Laws of 2011.

Statement in Support:

The Legislature has in the past assisted EFC in expanding its
investment authorization, in particular with regard to the collateral
eligible to secure public deposits. (See Chapter 413 of the Laws of
1996, Chapter 327 of the Laws of 1998 and Chapter 121 of the Laws of
2000, all of which expanded the scope of eligible investment
providers). More recently, Chapter 155 of the Laws of 2003 and Chapter
307 of the Laws of 2005 permitted EFC to expand the security available
for certain investments made on behalf of municipalities to include
any security obligation available to municipalities under the GML.
Each of these statutory amendments reduced the risk to participating
municipalities that interest subsidies would fall short of targets by
expanding the universe of eligible providers and eligible collateral.

This bill would allow EFC to continue to invest CWSRF and DWSRF funds
directly in security obligations under Section 10 of the GML.
Previously, EFC only had the authority to invest directly in
obligations the interest on which is excludable from gross income


under the Internal Revenue Code. This legislation would allow EFC to
continue to enhance its investment options by taking advantage of the
growing market for municipal taxable securities. By allowing CWSRF and
DWSRF assets to continue to be invested in taxable municipal
obligations as well as tax-exempt municipal obligations, these
programs, including the participating municipalities, will benefit
from higher investment returns without diminishing investment credit
quality. Continued authorization to invest CWSRF and DWSRF assets in
taxable investments will also broaden the demand for taxable municipal
bonds, including taxable bonds issued by New York State
municipalities.

Budget Implications:

None.

Local Impact:

None.

Effective date:

The bill would take effect immediately.

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

                                  6978

                            I N  S E N A T E

                              April 9, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER  --  (at  request of the Environmental
  Facilities Corporation) -- read twice and ordered  printed,  and  when
  printed to be committed to the Committee on Environmental Conservation

AN  ACT  to  amend  chapter 307 of the laws of 2005, amending the public
  authorities law relating to the special powers of the New  York  state
  environmental  facilities  corporation,  in  relation to extending the
  effectiveness thereof

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

  Section  1. Section 3 of chapter 307 of the laws of 2005, amending the
public authorities law relating to the special powers of  the  New  York
state  environmental facilities corporation, as amended by chapter 70 of
the laws of 2011, is amended to read as follows:
  S 3. This act shall take effect immediately and shall  expire  and  be
deemed repealed September 30, [2014] 2017.
  S 2. This act shall take effect immediately.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13969-01-4

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