S T A T E O F N E W Y O R K
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10100
I N A S S E M B L Y
May 3, 2012
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Introduced by M. of A. JAFFEE, RABBITT -- read once and referred to the
Committee on Ways and Means
AN ACT to authorize the county of Rockland to finance a certain deficit
by the issuance of bonds and to amend the tax law, in relation to
authorizing the imposition of an additional rate of sales and compen-
sating use taxes to fund such bonds
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The county of Rockland is hereby authorized to issue bonds
on or before December 31, 2013 in an aggregate principal amount not to
exceed eighty million dollars ($80,000,000) for the specific object or
purpose of liquidating the projected accumulated deficit in the general
fund of such county for the fiscal year ended December 31, 2011. In
anticipation of the issuance of the bonds authorized to be issued by
this act, the issuance and sale of bond anticipation notes are hereby
authorized.
S 2. Notwithstanding any provision of this act to the contrary, the
county of Rockland shall not issue any bonds for the purpose of liqui-
dating the projected deficit unless and until the amounts thereof are
reviewed and determined by the state comptroller. The county of Rockland
shall prepare a report detailing the amount and cause of such deficit
and submit such report together with the county's independent audit
report for its last completed fiscal year, if any such audit report has
been or is to be prepared, and such other information as the state comp-
troller may deem necessary, to the state comptroller, as well as the
chairs of the senate finance committee and the assembly ways and means
committee, at least 30 days prior to the issuance of any bonds pursuant
to this act. Within 30 days after receiving such report, the state comp-
troller shall perform such reviews as may be necessary to determine the
amount of such deficit and report the same to the chairs of the senate
finance committee and the assembly ways and means committee, the county
executive and the legislature of the county of Rockland. Bonds to liqui-
date such deficit shall not be issued in an amount exceeding such defi-
cit as determined by the state comptroller. Nothing provided in this act
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15601-02-2
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shall prevent the county of Rockland from authorizing the issuance of
bonds or bond anticipation notes, and issuing bond anticipation notes,
prior to the determination of the state comptroller of the amount of
such deficit. In the event bond anticipation notes are issued in an
amount in excess of the amounts determined by the state comptroller, the
county of Rockland shall redeem from funds other than the proceeds of
the bonds or bond anticipation notes, such bond anticipation notes in
the amount by which the amount of bond anticipation notes exceeds the
amount of such deficit as determined by the state comptroller.
S 3. It is hereby determined that the financing of the deficit
hereinbefore described is a purpose of the county of Rockland for which
indebtedness may be incurred, the period of probable usefulness of which
is hereby determined to be 10 years, computed from the date of such
bonds or from the date of the first bond anticipation note issued in
anticipation of the sale of such bonds, whichever date is earlier. Such
bonds and/or bond anticipation notes shall be general obligations of the
county of Rockland to which the faith and credit of the county is
pledged, and the county shall make an annual appropriation sufficient to
pay the principal of and interest on such obligations as the same shall
be come due.
S 4. Except as provided in this act, the provisions of the local
finance law shall be applicable to the authorization, sale and issuance
of the bonds and bond anticipation notes authorized to be issued by this
act.
S 5. (a) For each fiscal year occurring during the time bonds and/or
bond anticipation notes issued pursuant to this act are outstanding, the
county executive of the county of Rockland or such other officer or
officers as he or she may designate shall prepare a quarterly report of
summarized budget data depicting overall trends of actual revenues and
budget expenditures for the entire budget rather than individual line
items. Such budgetary reports shall compare revenue estimates and appro-
priations as set forth in such budget with the actual revenues and
expenditures made to date. All such quarterly budgetary reports shall be
accompanied by recommendations of the county executive of the county of
Rockland setting forth any remedial action necessary or desirable to
resolve any unfavorable budget variance including the over-estimation of
revenues and the under-estimation of expenditures. Each such quarterly
budgetary report shall be completed within 30 days after the end of each
quarter and shall be submitted to the legislature of the county of Rock-
land, the director of the division of the budget, the state comptroller,
and the chairs of the senate finance committee and the assembly ways and
means committee.
(b) For each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to this act are outstanding, the
county executive of the county of Rockland or such other officer or
officers as he or she may designate shall also prepare a quarterly trial
balance of general and special fund ledger accounts. Each such quarterly
trial balance shall be prepared in accordance with generally accepted
accounting principles. Each such quarterly trial balance shall be
completed within 30 days after the end of each quarterly period and
shall be submitted to each member of the legislature of the county of
Rockland, the director of the division of the budget, the state comp-
troller, and the chairs of the senate finance committee and the assembly
ways and means committee.
(c) For the fiscal year beginning January 1, 2012 and for each fiscal
year thereafter during which such debt or any debt incurred to refund
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such debt is outstanding, the county executive of the county of Rockland
or other officer or officers responsible for the preparation of the
tentative budget shall submit the tentative budget for the next succeed-
ing fiscal year to the state comptroller simultaneously with submission
of such budget to the county legislature on or before the 23rd day of
October in accordance with the charter of the county. Submission of such
budget to the state comptroller in electronic form shall be sufficient
for compliance with this section. The state comptroller shall examine
such proposed budget and make such recommendations as deemed appropriate
thereon to the county legislature no more than 20 days after the date of
submission of such budget to the state comptroller. Such recommendations
shall be made after examination into the estimates of revenues and
expenditures of the county of Rockland. The legislature of the county of
Rockland, no later than 5 days prior to the adoption of the budget,
shall review any such recommendations and may make adjustments to its
proposed budget consistent with any recommendations made by the state
comptroller. Any recommendations that the legislature rejects shall be
explained in writing to the state comptroller. The action or inaction of
the state comptroller under this section shall not be construed to
affect the legal validity of the budget of the county of Rockland nor to
affect the powers or duties of the county of Rockland with respect to
the local budget; provided, however, that the county of Rockland may not
issue bonds for any object or purpose unless and until adjustments to
its proposed budget, consistent with any recommendations made by the
state comptroller, are made, or any such recommendations that are
rejected have been explained in writing to the state comptroller.
(d) Within 90 days of the issuance of any debt pursuant to this act
and for each fiscal year thereafter, during which such debt or any debt
incurred to refund such debt is outstanding, the county executive of the
county of Rockland or other officer or officers responsible for the
preparation of the tentative budget of the county of Rockland, within 30
days after the final adoption of the budget for the next succeeding
fiscal year shall prepare a 3 year financial plan covering the next
succeeding fiscal year and the 2 fiscal years thereafter. The financial
plan shall, at a minimum, contain the information required to be
provided in a 3-year financial plan as prescribed by subdivision 10 of
section 54 of the state finance law. Copies of the financial plan shall
be provided to the county executive and chief fiscal officer of the
county of Rockland, the director of the budget, the state comptroller,
the chair of the assembly ways and means committee and the chair of the
senate finance committee. This financial plan requirement shall not
apply to the extent the county of Rockland is subject to a different
multi-year financial plan requirement under state or local law.
(e) For each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to this act are outstanding, the
chief fiscal officer of the county of Rockland shall notify the state
comptroller at least 15 days prior to the issuance of any bonds or notes
or entering into any installment purchase contract and the state comp-
troller may review and make recommendations regarding the affordability
to the county of Rockland of any such proposed issuance or contract. The
state comptroller may require the submission by the county of Rockland
of such information as the state comptroller shall deem necessary to
complete his or her review.
S 6. To facilitate the marketing of the bonds and/or bond anticipation
notes authorized to be issued by this act, the county of Rockland may,
notwithstanding any limitations on the private sales of bonds otherwise
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provided by law, and subject to approval by the state comptroller of the
terms and conditions of such sales, arrange for the underwriting or
other sale of its bonds and/or bond anticipation notes at private sale
upon negotiated terms and conditions which may include reasonable under-
writing or placement fees or discounts. The costs of such underwriting
or sale shall be deemed preliminary costs for purposes of section 11.00
of the local finance law.
S 7. Clause 23 of subparagraph (i) of the opening paragraph of section
1210 of the tax law, as amended by chapter 124 of the laws of 2011, is
amended to read as follows:
(23) the county of Rockland is hereby further authorized and empowered
to adopt and amend local laws, ordinances or resolutions imposing such
taxes at a rate which is: (i) five-eights of one percent additional to
the three percent rate authorized above in this paragraph for such coun-
ty for the period beginning March first, two thousand two, and ending
November thirtieth, two thousand thirteen; and also (ii) at a rate which
is three-eighths of one percent additional to the three percent rate
authorized above in this paragraph, and which is also additional to the
five-eights of one percent rate also authorized above in this clause for
such county, for the period beginning March first, two thousand seven
and ending November thirtieth, two thousand thirteen; AND ALSO (III) AN
ADDITIONAL THREE-EIGHTHS OF ONE PERCENT IN ADDITION TO THE OTHER RATES
AUTHORIZED IN THIS PARAGRAPH FOR SUCH COUNTY FOR THE PERIOD BEGINNING
SEPTEMBER FIRST, TWO THOUSAND TWELVE AND ENDING NOVEMBER THIRTIETH, TWO
THOUSAND TWENTY-TWO;
S 8. (a) The legislature of the county of Rockland, acting by resol-
ution approved by the county executive, shall contract with a bank or
trust company located and authorized to do business in this state for
the purpose of having such bank or trust company act, in connection with
the issuance of bonds and/or bond anticipation notes issued pursuant to
this act, as the fiscal agent for the county in accordance with section
70.00 of the local finance law and this act. Upon the issuance of any
debt pursuant to this act, the legislature of the county of Rockland
shall establish and thereafter maintain a debt service fund with such
fiscal agent for the purpose of paying with respect to each fiscal year
occurring during the time bonds and/or bond anticipation notes issued
pursuant to this act are outstanding, the amounts required for the time-
ly payment of: (i) all principal due or becoming due and payable in said
year with respect to any bonds issued pursuant to this act and all prin-
cipal amortization for said year required by law with respect to bond
anticipation notes issued pursuant to this act; (ii) all interest due or
becoming due and payable in said year with respect to any such bonds or
bond anticipation notes; and (iii) all sinking fund contributions
required in said year with respect to any sinking fund bonds issued
pursuant to this act. Such debt service fund shall be discontinued upon
the payment of all principal and interest due with respect to any such
bonds and/or bond anticipation notes issued pursuant to this act.
(b) The chief fiscal officer of the county of Rockland shall deposit
and pay into the debt service fund all sales and compensating use tax
revenues recognized for the fiscal years ended December 31, 2013 and
thereafter from the additional three-eighths of one percent of such
taxes imposed pursuant to clause 23 of subparagraph (i) of the opening
paragraph of section 1210 of the tax law, as amended by section seven of
this act for the period beginning September 1, 2012 and ending November
30, 2022.
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(c) The moneys in the debt service fund shall be invested in the
manner provided by section 11 of the general municipal law, provided,
however, that the investments shall be made for and on behalf of the
county of Rockland by the fiscal agent upon instructions from the chief
fiscal officer of such county which shall be consistent with such coun-
ty's investment policy adopted pursuant to section 39 of the general
municipal law.
(d) The fiscal agent shall from time to time during each fiscal year
withdraw from the debt service fund all amounts required for the payment
as the same becomes due of scheduled debt service payments on all
outstanding bonds or notes issued pursuant to this act and shall cause
the amounts so withdrawn to be applied only to such payments as and when
due. After the date the fiscal agent has made payment of all such
amounts due for each such fiscal year and retained any amounts necessary
to make payments of such scheduled debt service for the immediately
succeeding fiscal year, any balance remaining in the debt service fund
shall be paid by such fiscal agent to the chief fiscal officer of the
county of Rockland to be used only for the payment of principal and
interest due in such fiscal year or the immediately succeeding fiscal
year with respect to outstanding bonds and/or bond anticipation notes
issued by the county for capital project financing purposes.
(e) The special debt service fund and all monies or securities therein
or payable thereto in accordance with this section is hereby declared to
be county of Rockland property devoted to essential governmental
purposes and accordingly, shall not be applied to any purpose other than
as provided herein and shall not be subject to any order, judgment,
lien, execution, attachment, setoff or counterclaim by any creditor of
the county of Rockland other than a creditor for whose benefit such fund
is established and maintained and entitled thereto under and pursuant to
this act.
S 9. The state does hereby pledge to and agree with the holders of any
bonds, notes or other obligations issued by the county of Rockland
pursuant to this act and secured by such a pledge that the state will
not limit, alter or impair the rights hereby vested in such county to
fulfill the terms of any agreements made with such holders pursuant to
this act, or in any way impair the rights and remedies of such holders
or the security for such bonds, notes or other obligations until such
bonds, notes or other obligations together with the interest thereon and
all costs and expenses in connection with any action or proceeding by or
on behalf of such holders, are fully paid and discharged. The county of
Rockland is authorized to include this pledge and agreement of the state
in any agreement with the holders of such bonds, notes or other obli-
gations. Nothing contained in this act shall be deemed to: (a) obligate
the state to make any payments or impose any taxes to satisfy the debt
service obligations of such county; or (b) create a debt of the state
within the meaning of any constitutional or statutory provisions.
S 10. If any clause, sentence, paragraph, section or part of this act
shall be adjudged by any court of competent jurisdiction to be invalid,
such judgement shall not affect, impair, or invalidate the remainder
thereof, but shall be confined in its operation to the clause, sentence,
paragraph, section, or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
S 11. This act shall take effect immediately.