senate Bill S4729

Signed By Governor
2013-2014 Legislative Session

Provides temporary alternative methods of financing storm relief expenses

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Archive: Last Bill Status Via A5551 - 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
Nov 13, 2013 signed chap.476
Nov 01, 2013 delivered to governor
Jun 17, 2013 returned to assembly
passed senate
3rd reading cal.1389
substituted for s4729
Jun 17, 2013 substituted by a5551
ordered to third reading cal.1389
Apr 19, 2013 referred to rules

Votes

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S4729 - Bill Details

See Assembly Version of this Bill:
A5551
Law Section:
Local Finance Law
Laws Affected:
Amd ยง26.10, Loc Fin L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5551
2009-2010: A8938

S4729 - Bill Texts

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Provides temporary alternative methods of financing storm relief expenses.

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BILL NUMBER:S4729

TITLE OF BILL: An act to amend the local finance law, in relation to
temporary alternative methods of financing storm relief expenses

PURPOSE:

This legislation would provide municipalities, school districts and
fire districts with additional flexibility to borrow for certain
extraordinary expenses incurred as a result of the storm commonly
known as Sandy.

SUMMARY OF PROVISIONS:

Section one of the bill would amend section 26.10 of the Local Finance
Law, relating to temporary alternative methods of financing flood
relief expenses, to apply to "extraordinary expenses of storm relief"
necessitated by Sandy. In addition to adapting section 26.10 to apply
to Sandy, bill section one would also expand the coverage of that
section to include "district corporations" (e.g., fire districts), and
eliminate from section 26.10 certain obsolete provisions and
provisions which distinguish between local governments on the basis of
when their fiscal years commence.

Section two of the bill would provide an immediate effective date.

LEGISLATIVE HISTORY:

This is a new proposal, but similar legislation has been enacted
several times in the past (see, e.g. chapter 157 of the laws of 2006),
and last year similar legislation was vetoed primarily because the
State assumed the entire local share of flood response and recovery
expenses associated with Hurricane Irene and Tropical Storm Lee (see
2011 Veto Message No. 151).

JUSTIFICATION:

The storm commonly known as Sandy was by most estimates as one of the
most destructive and deadly storms to hit the United States since
1980. Sandy caused widespread destruction massive flooding and
prolonged power outages. Many local governments throughout the State
were severely affected by the flooding and the extraordinary costs of
repairing the damage are considerable. The bill will help local
governments manage the costs of repairing the damage by providing
additional financing options.

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

The bill would take effect immediately.

RECOMMENDATION:

The Comptroller urges passage of this legislation.


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

                                  4729

                       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 to amend the local finance law, in relation to temporary alterna-
  tive methods of financing storm relief expenses

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

  Section 1. Section 26.10 of the local finance law, as added by chapter
599 of the laws of 1973, paragraph a and subdivisions  1,  2  and  3  of
paragraph  b  as amended by chapter 157 of the laws of 2006 and subdivi-
sions 4, 5 and 6 of paragraph b, subdivisions 1, 2, 3 and 7 of paragraph
c as amended by chapter 87 of the laws of 1996, is amended  to  read  as
follows:
  S  26.10  Temporary  alternative  methods  of financing [flood-relief]
STORM RELIEF expenses.  a. Definitions. [1. With respect to any  munici-
pality which has a calendar fiscal year which commenced on the first day
of  January,  two thousand five, the] AS USED IN THIS SECTION, THE terms
"extraordinary expenses [for flood] OF STORM relief" and "such  extraor-
dinary  expenses"[,  as used in this section,] shall mean [the] expenses
incurred BY A MUNICIPALITY,  SCHOOL  DISTRICT  OR  DISTRICT  CORPORATION
BEFORE  THE  FIRST  DAY  OF  JANUARY, TWO THOUSAND FOURTEEN, for [flood]
STORM relief projects [involving the] NECESSITATED BY DAMAGE  CAUSED  BY
THE   STORM  COMMONLY  KNOWN  AS  SANDY  ON  OR  SHORTLY  AFTER  OCTOBER
TWENTY-NINTH, TWO THOUSAND TWELVE.  THE  TERM  "STORM  RELIEF  PROJECTS"
SHALL  MEAN  THE  REPAIR  OR  RECONSTRUCTION  OF  public  thoroughfares,
[public] BUILDINGS, places, and projects of  such  municipality  [during
any  or  all  of  the  months of such year], SCHOOL DISTRICT OR DISTRICT
CORPORATION, in excess of the normal  expenses  which  would  have  been
incurred  for  such  purposes  during  such periods as determined by the
finance board of such municipality [and also any  interest  payments  on
revenue  anticipation  notes  issued  in  anticipation of the receipt of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05523-01-3

S. 4729                             2

moneys from the state or federal government pursuant  to  any  state  or
federal  disaster  relief act], SCHOOL DISTRICT OR DISTRICT CORPORATION.
In making any such determination, the finance board shall not include as
a  part of such extraordinary expenses the salaries and wages of regular
employees, except for overtime work and work on  Sundays  and  holidays.
SUCH EXTRAORDINARY EXPENSES MAY INCLUDE ANY INTEREST PAYMENTS ON REVENUE
ANTICIPATION  NOTES ISSUED IN ANTICIPATION OF THE RECEIPT OF MONEYS FROM
THE STATE OR FEDERAL GOVERNMENT ON ACCOUNT OF SUCH STORM PURSUANT TO ANY
STATE OR FEDERAL DISASTER RELIEF ACT.
  [2. With respect to any municipality or school district  which  has  a
fiscal  year  which  commenced in the year two thousand five on or after
the first day of March in such year, the terms  "extraordinary  expenses
for flood relief projects" and "such extraordinary expenses", as used in
this  section, shall mean the expense incurred for flood relief projects
involving the public thoroughfares, public places and projects  of  such
municipality  or  school  district during such fiscal year, in excess of
the amounts appropriated for such purposes in the annual budget for such
fiscal year, or, if no such appropriations were made, then in excess  of
the  average  of  all  expenditures for such purposes during each of the
five preceding fiscal years prior to the fiscal year commencing  in  the
year two thousand five, as determined by the finance board of such muni-
cipality or school district.]
  b.  The  financing of [flood] STORM relief expenses by the issuance of
serial bonds.
  1. The finance board of a municipality [which has a fiscal year  which
commenced  on  the  first  day  of  January,  two thousand five], SCHOOL
DISTRICT OR DISTRICT CORPORATION may authorize the  issuance  of  serial
bonds  [in  the]  ON  OR  BEFORE DECEMBER THIRTY-FIRST two thousand [six
fiscal year] THIRTEEN to provide for the payment of all or part  of  the
extraordinary  expenses  of [flood] STORM relief [incurred during any or
all of the months of two  thousand  five],  to  reimburse  any  fund  or
account  of  the  [municipality]  ISSUER  from  which moneys to pay such
extraordinary expenses have been advanced or to replenish  any  fund  or
account  of  the  [municipality]  ISSUER  from  which such extraordinary
expenses have been paid, or any combination of such  purposes,  notwith-
standing  that  there  may have been lack of statutory authority for any
such advance or payment from such fund or account. The period of  proba-
ble usefulness of such objects or purposes shall be five years. Any such
serial  bonds  shall  have a maximum maturity of over two years, but the
date of final maturity of any such issue shall not  extend  beyond  [the
first  day  of  March in the year two thousand eleven as to counties and
towns and shall not extend beyond] the thirty-first day of December, two
thousand [eleven, as to other municipalities] EIGHTEEN.
  2. [The finance board of a municipality or school district which has a
fiscal year which commenced in the year two thousand five  on  or  after
the first day of March in such year may authorize the issuance of serial
bonds  in  the  two  thousand six fiscal year, or in its next succeeding
fiscal year, to provide for the payment of all or part of  the  extraor-
dinary expenses of flood relief incurred in the two thousand five fiscal
year,  to  reimburse  any  fund or account of the municipality or school
district from which moneys to pay such extraordinary expenses have  been
advanced  or  to  replenish  any  fund or account of the municipality or
school district from which such extraordinary expenses have  been  paid,
or any combination of such purposes, notwithstanding that there may have
been  lack  of  statutory authority for any such advance or payment from
such fund or account. The period of probable usefulness of such  objects

S. 4729                             3

or  purposes  shall  be  five  years. Any such serial bonds shall have a
maximum maturity of over two years, but the date of  final  maturity  of
any such issue shall not extend beyond the thirty-first day of December,
two thousand eleven.
  3.]  No  provision of subdivision one [or two] of this paragraph shall
be deemed to prohibit the issuance of serial bonds for  the  purpose  of
financing  any  portion of such extraordinary expenses described in such
[subdivisions] SUBDIVISION which heretofore have been or hereafter shall
be financed by the issuance of  budget  notes  or  for  the  purpose  of
redeeming any such notes.
  [4.]  3. Except as provided in this section, such serial bonds and any
bond anticipation notes in anticipation thereof,  shall  be  authorized,
sold  and issued in the manner provided by this chapter. Any bond antic-
ipation notes issued in  anticipation  of  such  bonds  shall,  for  the
purpose  of determining the power of the issuer to contract indebtedness
and to raise taxes upon real estate, be deemed to be serial bonds of  an
issue  having  a maximum maturity of more than two years as described in
paragraph A of section five and in section ten of article eight  of  the
state  constitution  and  for  the  purposes of (1) subdivision one-a of
section 136.00 of this chapter, (2) section two hundred thirty-three  of
the county law, (3) section 5-514 of the village law, (4) any general or
special  law  applicable  to  counties,  cities,  villages [and], school
districts OR DISTRICT CORPORATIONS which relates to the raising of taxes
on real estate to provide for the payment of the  interest  on  and  the
principal  of  indebtedness,  and (5) all laws relating to the financial
reports, debt statements and real estate tax margin computations of such
municipalities [or], school  districts  OR  DISTRICT  CORPORATIONS.  The
chief  fiscal  officer  of  any  municipality  [or],  school district OR
DISTRICT CORPORATION issuing or renewing such  bond  anticipation  notes
shall immediately after the issuance or renewal thereof notify the state
comptroller  of  such  issuance  or  renewal.  The state comptroller may
prescribe the form of any such notice and shall furnish  such  forms  to
municipalities [and], school districts AND DISTRICT CORPORATIONS for the
purpose of making any such report.
  [5.]  4.  Capital  notes  may  not  be issued to finance any object or
purpose for which serial bonds are authorized to be issued  pursuant  to
this  paragraph.  The  provisions of this paragraph shall not affect the
power of any municipality [or], school district OR DISTRICT  CORPORATION
described  in  paragraph a of this section to finance all or part of any
such extraordinary expenses pursuant to the provisions of section  29.00
of this chapter and paragraph c of this section.
  [6.]  5.  Section  104.10  of  this chapter shall not be applicable in
relation to, or as the result of, the  adoption  of  a  bond  resolution
authorizing the issuance of serial bonds pursuant to this paragraph. The
provisions  of section 10.00, paragraph a of section 21.00 and any other
section of this chapter, or the provisions of any  general,  special  or
local  law, which would restrict, limit or prohibit the issuance of such
bonds (except those enacted to conform with the state constitution) are,
to the extent that this section is  utilized  by  a  municipality  [or],
school  district OR DISTRICT CORPORATION, suspended and made ineffective
insofar as necessary to effectuate the purposes of this section.
  c. The financing of [flood] STORM relief expenses by the  issuance  of
budget  notes.  1.  If  any municipality or school district described in
paragraph a of this section has heretofore issued budget notes  pursuant
to  the provisions of subdivision two or three of paragraph a of section
29.00 of this chapter  to  provide  for  the  payment  of  extraordinary

S. 4729                             4

expenses  of  [flood]  STORM  relief,  [as defined in this section,] the
finance board, by resolution, may determine that  such  notes  shall  be
deemed to have been issued pursuant to the provisions of subdivision one
of  paragraph  a of such section and that such notes so issued shall not
thereafter be considered in determining the power of  such  municipality
or  school  district  to issue budget notes pursuant to such subdivision
two or three.
  2. If any municipality [or], school district OR  DISTRICT  CORPORATION
described  in  paragraph  a of this section has heretofore issued budget
notes pursuant to the provisions of subdivision one,  two  or  three  of
paragraph  a,  or  paragraph  b,  of  section  29.00 of this chapter, to
provide for the payment  of  extraordinary  expenses  of  [flood]  STORM
relief,  [as  defined  in this section,] the finance board may determine
that the provisions of paragraph j of such section shall not be applica-
ble in relation to the maturity of such notes and (a)  that  such  notes
shall mature in equal annual installments in two different fiscal years,
but  the  final maturity of such notes shall not extend beyond the close
of the second fiscal year  immediately  succeeding  the  year  of  their
issue,  or  (b) if the fiscal procedures applicable to such municipality
[or], school district OR DISTRICT CORPORATION will enable the  necessary
budgetary  appropriations for debt service to be made and such appropri-
ations to become available, that such notes shall mature in three  equal
annual installments in three different fiscal years, but the final matu-
rity  of  any such notes shall not exceed three years in accordance with
the provisions of paragraph a of section 11.00  of  this  chapter  which
prescribes a period of probable usefulness of three years for objects or
purposes  financed  by  the  issuance of budget notes. Such budget notes
which mature in three equal annual installments,  as  aforesaid,  shall,
for  the  purpose  of  determining  the  power of the issuer to contract
indebtedness and to raise taxes on real estate, be deemed to  be  serial
bonds  of  an  issue having a maximum maturity of more than two years as
described in paragraph A of section five and in section ten  of  article
eight  of  the  state constitution and for the purposes of (1) paragraph
one-a of section 136.00 of this chapter, (2) section two  hundred  thir-
ty-three  of  the  county law, (3) section 5-514 of the village law, (4)
any general or special law  applicable  to  counties,  cities,  villages
[and],  school  districts  OR DISTRICT CORPORATIONS which relates to the
raising of taxes on real estate to provide for the payment of the inter-
est on and the principal of indebtedness, and (5) all laws  relating  to
financial  reports,  debt statements and real estate tax margin computa-
tions of such municipalities [or], school districts OR  DISTRICT  CORPO-
RATIONS.    If the finance board determines that such budget notes shall
mature in three equal  annual  installments,  as  aforesaid,  the  chief
fiscal  officer  of  such municipality [or], school district OR DISTRICT
CORPORATION immediately after the adoption of the resolution making such
determination shall file a copy of the resolution with the  state  comp-
troller  and  shall  immediately  after  the issuance or renewal of such
notes notify the state comptroller of  such  issuance  or  renewal.  The
state  comptroller  may  prescribe the form of any such notice and shall
furnish such forms to municipalities [or], school districts OR  DISTRICT
CORPORATIONS for the purpose of making any such report.
  3.  Notwithstanding  any  of  the  provisions of section 29.00 of this
chapter, the finance board  of  a  municipality  or  a  school  district
described  in  paragraph a of this section may authorize the issuance of
budget notes pursuant to subdivision one of paragraph a, or, in the case
of a municipality, paragraph b of such section 29.00 of this chapter  to

S. 4729                             5

provide  for the payment of all or part of the extraordinary expenses of
[flood] STORM relief, [as defined in this  section,]  to  reimburse  any
fund or account of the municipality or school district from which moneys
to  pay  such  extraordinary expenses have been advanced or to replenish
any fund or account of the municipality or school  district  from  which
such  extraordinary  expenses have been paid, or any combination of such
purposes, notwithstanding that there may have  been  lack  of  statutory
authority for any such advance or payment from such fund or account. The
finance  board  may  determine  that such notes may mature in the manner
provided in paragraph j of section 29.00 of this  chapter,  or,  if  the
fiscal  procedures  applicable  to  such municipality or school district
will enable the necessary budgetary appropriations for debt  service  to
be  made  and  such  appropriations to become available, that such notes
shall mature in two equal annual installments in  two  different  fiscal
years,  but the final maturity of such notes shall not extend beyond the
close of the second fiscal year immediately succeeding the year of their
issue.
  4. [If a municipality which had a calendar fiscal year which commenced
on the first day of January, nineteen hundred seventy-two, or the  first
day  of  January, nineteen hundred seventy-three, issued budget notes in
such year pursuant to the provisions of section 29.00 of this chapter to
finance the payment of expenses of flood relief in such fiscal years and
if such budget notes, under  the  provisions  of  paragraph  j  of  such
section,  could  not be renewed after the close of its fiscal year which
would end in the year next succeeding the year of issuance, then and  in
such event the finance board of such municipality may determine that the
provisions  of  paragraph  j  of such section shall not be applicable in
relation to the maturity of such notes and that such notes shall  mature
in  equal  annual installments in the two years next succeeding the year
of issuance.
  5. If a municipality which had a calendar fiscal year, which commenced
on the first day of January, nineteen hundred seventy-two or  the  first
day  of January, nineteen hundred seventy-three, authorized the issuance
of budget notes in such years pursuant  to  the  provisions  of  section
29.00 of this chapter to finance the payment of expenses of flood relief
in  such  years  and if such notes were not issued in the years nineteen
hundred seventy-two or nineteen hundred seventy-three, but were  or  are
to  be  issued  in  the years nineteen hundred seventy-three or nineteen
hundred seventy-four, and if such budget notes, under the provisions  of
paragraph j of such section, could not be renewed after the close of its
fiscal  year  which  would  end  in the year next succeeding the year of
issuance, then and in any such event the finance board of  such  munici-
pality  may determine that the provisions of paragraph j of such section
shall not be applicable in relation to the maturity of  such  notes  and
that  such  notes  shall  mature in equal annual installments in the two
years next succeeding the year of issuance.
  6. Any resolution of a finance board of a municipality making a deter-
mination pursuant to subdivisions one, two, three, four or five of  this
paragraph  may  be  adopted  by  a  majority  vote of the finance board,
notwithstanding the provisions of paragraph d of section 40.00  of  this
chapter.
  7.] The provisions of subdivision four of paragraph c of section 40.00
of  this  chapter  and  of  any  other  section  of this chapter and the
provisions of any general, special or local law  which  would  restrict,
limit  or prohibit the renewal of budget notes as provided in this para-
graph (except those enacted to conform  with  the  state  constitution),

S. 4729                             6

are,  to  the extent that this section is utilized by a municipality [or
a], school district OR DISTRICT CORPORATION, suspended and made ineffec-
tive insofar as necessary to effectuate the objects and purposes of this
section.
  d.  Separability.  If any clause, sentence, subdivision, paragraph, or
part of this section be adjudged by any court of competent  jurisdiction
to  be invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, subdivision, paragraph, or part thereof directly  involved  in
the controversy in which such judgment shall have been rendered.
  S 2. This act shall take effect immediately.

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