senate Bill S3918

Signed By Governor
2011-2012 Legislative Session

Extends effectiveness of provisions relating to the special powers of the New York state environmental facilities corporation

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 08, 2011 signed chap.70
May 27, 2011 delivered to governor
May 23, 2011 returned to senate
passed assembly
ordered to third reading cal.410
substituted for a7151
Apr 12, 2011 referred to environmental conservation
delivered to assembly
passed senate
Apr 11, 2011 advanced to third reading
Apr 06, 2011 2nd report cal.
Apr 05, 2011 1st report cal.302
Mar 09, 2011 referred to corporations, authorities and commissions

Votes

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Apr 5, 2011 - Corporations, Authorities and Commissions committee Vote

S3918
4
0
committee
4
Aye
0
Nay
0
Aye with Reservations
0
Absent
2
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: Apr 5, 2011

excused (2)

S3918 - Bill Details

See Assembly Version of this Bill:
A7151
Law Section:
Municipalities
Laws Affected:
Amd §3, Chap 307 of 2005

S3918 - Bill Texts

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Extends, until September 30, 2014, the authority of the New York state environmental facilities corporation to expand its direct investment authority of Clean Water State Revolving Fund ("CWSRF") monies to include any security obligation available to municipalities under the General Municipal Law.

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BILL NUMBER:S3918

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 BILL:

This bill would extend for three years, to September 30, 2014, certain
provisions of sections 1285-j and 1285-m of the Public Authorities
Law ("PAL") relating to the special powers of the Environmental
Facilities Corporation ("EFC").

SUMMARY OF PROVISIONS:

Section 1 of the bill would extend the "sunset" provision of Chapter
307 of the Laws of 2005 through September 30, 2014, thereby continuing
the existing 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 would provide an immediate effective date.

EXISTING LAW:

Currently under PAL §§ 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. However, these provisions will be deemed
repealed as of September 30, 2011.

PRIOR LEGISLATIVE HISTORY:

Chapter 307 of the Laws of 2005, which would have expired on September
30, 2008, was extended through September 30, 2011 by Chapter 214 of
the Laws of 2008.

STATEMENT IN SUPPORT:

Over the past decade, the Legislature has 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). 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 fail short of targets by
expanding the universe of eligible providers and eligible collateral.
By continuing Chapter 307, the bill would continue to reduce this
risk and, in addition, would directly boost the prospect for
increased annualized program earnings. Program earnings are
immediately available to support additional projects. Because federal
appropriations for these programs may decline in the future, the bill
is necessary to boost program earnings in order to continue
supporting the future project needs of New York's municipalities.

This bill would allow EFC to continue to invest SRF funds directly in
security obligations under GML § 10. 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. The
bill 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 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:

The bill would have no impact on the State budget.

EFFECTIVE DATE:

The bill would take effect immediately.

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

                                  3918

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 9, 2011
                               ___________

Introduced  by Sen. GRISANTI -- (at request of the Environmental Facili-
  ties Corporation) -- read twice and ordered printed, and when  printed
  to  be  committed  to  the  Committee on Corporations, Authorities and
  Commissions

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 214 of
the laws of 2008, is amended to read as follows:
  S 3. This act shall take effect immediately and shall  expire  and  be
deemed repealed September 30, [2011] 2014.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09220-01-1

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