S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7168
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 23, 2021
                                ___________
 
 Introduced by M. of A. PICHARDO -- read once and referred to the Commit-
   tee on Local Governments
 
 AN  ACT  to  amend  the local finance law and chapter 419 of the laws of
   1991, amending the local  finance  law  and  other  laws  relating  to
   providing  relief  to  local governments for certain mandated programs
   and services, in relation to local government borrowing practices  and
   mandate relief
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of section 21.00 of the local finance  law,  as
 amended  by  chapter  113  of  the  laws  of 2018, is amended to read as
 follows:
   b. Serial  bonds  shall  mature  in  annual  installments.  The  first
 installment  shall  mature not later than eighteen months after the date
 of such bonds or two years after the date of the first bond anticipation
 note or notes issued in anticipation of such  bonds,  whichever  is  the
 earlier,  provided,  however,  that  until  July fifteenth, two thousand
 [twenty-one] TWENTY-FOUR, the first installment shall mature  not  later
 than  two years after the date of such bonds or two years after the date
 of the first bond anticipation note or notes issued in  anticipation  of
 such  bonds,  whichever  is  the  earlier. However, if bond anticipation
 notes are issued in anticipation of bonds and if a portion of such notes
 or the renewals thereof are  redeemed  from  a  source  other  than  the
 proceeds  of such bonds within two years from the date of the first such
 note or notes and a further portion thereof shall be so  redeemed  prior
 to  the  termination  of  each twelve months' period succeeding the date
 such original portion was so redeemed, the  first  installment  of  such
 bonds  may,  in  the  alternative, be made to mature not later than five
 years from the date of the first such note or notes.
   § 2. Paragraph b of section 53.00 of the local finance law, as amended
 by chapter 113 of the laws of 2018, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10356-01-1

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   b. If such bonds or notes are payable in  installments,  the  install-
 ments  remaining  unpaid  may  be  called for redemption only (i) in the
 inverse order of their maturity or, (ii) in equal proportionate amounts;
 provided, however, that for bonds  issued  during  the  one-year  period
 commencing  July  first,  nineteen  hundred  eighty-eight, and for bonds
 issued during  the  one-year  period  commencing  July  first,  nineteen
 hundred  eighty-nine,  and  for  bonds issued during the one-year period
 commencing July first, nineteen hundred ninety,  and  for  bonds  issued
 during  the  three-year  period  commencing July first, nineteen hundred
 ninety-one, and for bonds issued during  the  period  from  July  first,
 nineteen  hundred  ninety-four  up  until  and including July fifteenth,
 nineteen hundred ninety-seven and for bonds  issued  during  the  period
 from  July fifteenth, nineteen hundred ninety-seven up until and includ-
 ing July fifteenth, two thousand, and for bonds issued during the period
 from July fifteenth, two thousand up until and including July fifteenth,
 two thousand three, and for bonds issued during  the  period  from  July
 fifteenth, two thousand three up until and including July fifteenth, two
 thousand  six,  and  for  bonds  issued  during  the  period  from  July
 fifteenth, two thousand six up until and including July  fifteenth,  two
 thousand  nine,  and  for  bonds  issued  during  the  period  from July
 fifteenth, two thousand six up until and including July  fifteenth,  two
 thousand  twelve,  and  for  bonds  issued  during  the period from July
 fifteenth, two thousand nine up until and including July fifteenth,  two
 thousand  fifteen,  and  for  bonds  issued  during the period from July
 fifteenth, two thousand fifteen up until and including  July  fifteenth,
 two  thousand eighteen, and for bonds issued during the period from July
 fifteenth, two thousand eighteen up until and including July  fifteenth,
 two  thousand  twenty-one,  AND  FOR BONDS ISSUED DURING THE PERIOD FROM
 JULY FIFTEENTH, TWO THOUSAND TWENTY-ONE  UP  UNTIL  AND  INCLUDING  JULY
 FIFTEENTH,  TWO  THOUSAND  TWENTY-FOUR, installments remaining unpaid on
 such bonds may be called for redemption prior to their date of  maturity
 in such amounts, at such times in such manner and pursuant to such terms
 as  may  be  determined  by  the finance board of a municipality, school
 district or district corporation at the time of  the  issuance  thereof.
 Whenever  any bonds or notes are called for redemption prior to the date
 of their maturity, interest shall cease to be  paid  thereon  after  the
 date for redemption set forth in such call for redemption. The sum to be
 paid  to  redeem any unpaid installment prior to its maturity, exclusive
 of the interest accruing on such installment to the date of  redemption,
 shall  in  no  event be in excess of the lesser amount of either (i) the
 par value of such installment plus one-half of one per  centum  of  such
 par  value  for  each calendar year or part thereof elapsing between the
 date for redemption set forth in such call for redemption and  the  date
 of  maturity  of  such  installment, provided, however, that such amount
 shall not exceed one hundred five per centum of such par value, or  (ii)
 the  par value of such installment plus the total of all unpaid interest
 on such installment which would have accrued from the date of redemption
 to the date of maturity thereof had such installment not  been  redeemed
 prior  to  maturity,  except  that  bonds  sold to the state of New York
 municipal bond bank agency, which are subject to  call  as  hereinbefore
 authorized,  may  provide for the payment of a redemption premium not to
 exceed five per centum of the par value of the bonds to be called, paya-
 ble on the date of the redemption thereof; provided, however,  that  for
 bonds  issued during the one-year period commencing July first, nineteen
 hundred eighty-eight, and for bonds issued during  the  one-year  period
 commencing  July  first,  nineteen  hundred  eighty-nine,  and for bonds

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 issued during  the  one-year  period  commencing  July  first,  nineteen
 hundred  ninety,  and  for  bonds  issued  during  the three-year period
 commencing July first, nineteen hundred ninety-one, and for bonds issued
 during the period from July first, nineteen hundred ninety-four up until
 and  including  July  fifteenth,  nineteen hundred ninety-seven, and for
 bonds issued during the period from  July  fifteenth,  nineteen  hundred
 ninety-seven  up  until  and including July fifteenth, two thousand, and
 for bonds issued during the period from July fifteenth, two thousand  up
 until  and  including  July fifteenth, two thousand three, and for bonds
 issued during the period from July  fifteenth,  two  thousand  three  up
 until  and  including  July  fifteenth,  two thousand six, and for bonds
 issued during the period from July fifteenth, two thousand six up  until
 and  including  July  fifteenth, two thousand nine, and for bonds issued
 during the period from July fifteenth, two thousand nine  up  until  and
 including  July  fifteenth,  two  thousand  twelve, and for bonds issued
 during the period from July fifteenth, two thousand twelve up until  and
 including  July  fifteenth,  two  thousand fifteen, and for bonds issued
 during the period from July fifteenth, two thousand fifteen up until and
 including July fifteenth, two thousand eighteen, and  for  bonds  issued
 during  the  period  from July fifteenth, two thousand eighteen up until
 and including July fifteenth, two thousand  twenty-one,  AND  FOR  BONDS
 ISSUED DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND TWENTY-ONE UP
 UNTIL  AND INCLUDING JULY FIFTEENTH, TWO THOUSAND TWENTY-FOUR, a munici-
 pality, school district, or district corporation may provide for redemp-
 tion of such bonds prior to the date of their maturity  at  a  price  or
 prices  as  may be as determined by the issuer of such bonds or notes at
 the time of the issuance thereof.
   § 3. The opening paragraph of paragraph a  of  section  54.90  of  the
 local  finance  law,  as  amended by chapter 113 of the laws of 2018, is
 amended to read as follows:
   Whenever in the judgment of the finance board the interest of a  muni-
 cipality  would  be  served thereby, the municipality may issue bonds or
 notes, on or before July fifteenth, two  thousand  [twenty-one]  TWENTY-
 FOUR,  with  interest  rates  that  vary in accordance with a formula or
 procedure and are subject to a maximum rate of  interest  set  forth  or
 referred  to  in  the bonds or notes and may provide the holders thereof
 with such rights  to  require  the  municipality  or  other  persons  to
 purchase  such  bonds  or notes or renewals thereof from the proceeds of
 the resale thereof or otherwise from time to time  prior  to  the  final
 maturity  of  such bonds or notes as the finance board may determine and
 the municipality may resell, at any time prior to  final  maturity,  any
 such bonds or notes acquired as a result of the exercise of such rights;
 provided,  however,  that at no time shall the total principal amount of
 bonds and notes issued pursuant to this paragraph (other than bonds  and
 notes  bearing interest at rates and for periods of time that are speci-
 fied at issuance) exceed ten percent of the limit prescribed by  section
 104.00 of this article.
   §  4.  Subdivision  9  of  paragraph  d of section 107.00 of the local
 finance law, as amended by chapter 113 of the laws of 2018,  is  amended
 to read as follows:
   9.  Notwithstanding  any  other provision of law, the financing by any
 municipality, prior to July fifteenth, two thousand  [twenty-one]  TWEN-
 TY-FOUR, of any object or purpose which has a period of probable useful-
 ness  determined by law, by the issuance of any bonds and notes, includ-
 ing (i) the issuance of bonds  or  notes,  to  redeem  notes  previously
 issued  for the object or purpose for which the bonds or notes are being

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 issued or (ii) the issuance of bonds to refund bonds  previously  issued
 for the object or purpose for which bonds are being issued.
   § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws
 of  1991,  amending  the  local  finance  law and other laws relating to
 providing relief to local governments for certain mandated programs  and
 services,  as amended by chapter 113 of the laws of 2018, are amended to
 read as follows:
   (a) [section] SECTIONS six, sixteen and seventeen of  this  act  shall
 expire  and  be  deemed  repealed on and after July 15, [2021] 2024, and
 upon such date the amendments  made  to  the  provisions  of  the  local
 finance law by such sections shall also expire and such provisions shall
 revert  to and be read as set out in law on the date immediately preced-
 ing the effective date of such sections six, sixteen  and  seventeen  of
 this act;
   (e)  subdivision  (b)  of section thirty-five of this act shall expire
 and be deemed repealed on and after July 15, [2021] 2024;
   § 6. This act shall take effect immediately.