senate Bill S6770

2013-2014 Legislative Session

Creates the urban restoration bond act of 2014

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 07, 2014 referred to infrastructure and capital investment

S6770 - Bill Details

See Assembly Version of this Bill:
A9255
Current Committee:
Law Section:
Cities

S6770 - Bill Texts

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Creates the urban restoration bond act of 2014; funds capital projects to repair, rehabilitate, construct, enhance, expand, and modernize transportation systems, roads, bridges, water supply systems, drainage systems, and publicly owned storm and sanitary sewers.

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BILL NUMBER:S6770

TITLE OF BILL: An act in relation to authorizing the creation of a
state debt in the amount of two billion dollars, in relation to
creating the urban restoration bond act of 2014 for the purposes of
funding capital projects to provide for improving the infrastructure
of cities of this state; and providing for the submission to the
people of a proposition or question therefor to be voted upon at the
general election to be held in November, 2014

PURPOSE:

This bill would authorize the creation of a state debt, pursuant to
referendum, in the amount of two billion dollars, for the purpose of
improving the infrastructure of cities in the state.

SUMMARY OF PROVISIONS:

Section one of the bill creates the short title of the bill: "the
urban restoration bond act of 2014".

Section two of the bill provides for the creation of a state debt in
an amount not to exceed $2,000,000,000 to provide moneys for the
single purpose of improving the infrastructure of cities of the state
by funding capital projects.

Section three of the bill authorizes the comptroller to issue and sell
bonds up to the aggregate amount of two billion dollars for the
purposes of this act.

Section four of the bill provides that the use of the moneys received
from the sale of bonds sold pursuant to this act shall be spent on
capital projects related to design, planning, site acquisition,
demolition, construction, reconstruction, rehabilitation, expansion
and modernization of transportation systems, roads, bridges, water
supply systems, drainage systems, and publicly owned storm and
sanitary sewers.

JUSTIFICATION:

Cities across New York are struggling to stay out of debt while
maintaining aging and failing infrastructure. Costs of running cities
are escalating as revenues are not keeping pace with the costs of
maintaining pension funds and healthcare plans. Additionally, the
natural disasters the state has suffered from over the past few years
have exacerbated the needs of cities to rebuild and restore
infrastructure,. A bond act to help cities fund capital projects for
the restoration of their infrastructure is justified at this time.

Mayors across the state are desperate for a funding mechanism that
will give them a means of addressing their cities' needs. In the
absence of relief from a new funding stream, several cities in New
York will be faced with imminent bankruptcy. The Unites States has
already witnessed a new phenomenon of bankruptcy in such major cites
such as Detroit, Michigan and San Bernardino, California. Cities
should not have to leverage the benefit of public safety against costs
of repairing failing infrastructure. This bond act proposal will give


cities the means to fund necessary repairs and continue to provide
essential services.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

This bill would allow for a debt not to exceed, in aggregate, two
billion dollars through the sale of bonds.

EFFECTIVE DATE:

The effective date section of the bill provides that this act shall
not take effect unless and until it is approved by a majority of votes
cast by the people in a general election in November 2014. Upon
approval, the act shall take effect immediately. The question before
the voters would be written as follows, "Shall the URBAN RESTORATION
BOND ACT OF 2014 be approved?".

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

                                  6770

                            I N  S E N A T E

                              March 7, 2014
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Infrastructure and Capital
  Investment

AN ACT in relation to authorizing the creation of a state  debt  in  the
  amount  of  two  billion  dollars,  in  relation to creating the urban
  restoration bond act of 2014  for  the  purposes  of  funding  capital
  projects to provide for improving the infrastructure of cities of this
  state; and providing for the submission to the people of a proposition
  or  question  therefor  to be voted upon at the general election to be
  held in November, 2014

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

  Section  1.  The urban restoration bond act of 2014 is enacted to read
as follows:
                   URBAN RESTORATION BOND ACT OF 2014
Section 1. Short title.
        2. Creation of a state debt.
        3. Bonds of the state.
        4. Use of moneys received.
  S 1. Short title. This act shall be known and  may  be  cited  as  the
"urban restoration bond act of 2014".
  S  2.  Creation  of  a  state debt. The creation of a state debt in an
amount  not   exceeding   in   the   aggregate   two   billion   dollars
($2,000,000,000)  is  hereby authorized to provide moneys for the single
purpose of improving the infrastructure of cities of this state by fund-
ing capital projects to repair, rehabilitate, construct, enhance, expand
and modernize  transportation  systems,  roads,  bridges,  water  supply
systems, drainage systems, and publicly owned storm and sanitary sewers.
The  legislature  may,  by  appropriate  legislation and subject to such
conditions as it may impose, make available out of the proceeds  of  the
sale  of  bonds  authorized  in  this  act,  moneys  disbursed  or to be
disbursed for the cost of approved capital projects undertaken by, or on
behalf of, cities for such purposes.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14049-01-4

S. 6770                             2

  S 3. Bonds of the state. The state comptroller  is  hereby  authorized
and  empowered  to issue and sell bonds of the state up to the aggregate
amount of two billion dollars ($2,000,000,000) for the purposes of  this
act, subject to the provisions of article five of the state finance law.
The  aggregate  principal  amount  of  such  bonds  shall not exceed two
billion dollars ($2,000,000,000) excluding bonds  issued  to  refund  or
otherwise  repay  bonds  heretofore  issued  for such purpose; provided,
however, that upon any such refunding or repayment, the total  aggregate
principal  amount  of  outstanding bonds may be greater than two billion
dollars ($2,000,000,000) only if the present value of the aggregate debt
service of the refunding or repayment  bonds  to  be  issued  shall  not
exceed  the  present value of the aggregate debt service of the bonds to
be refunded or repaid. The method for calculating present value shall be
determined by law.
  S 4. Use of moneys received. The moneys received by the state from the
sale of bonds sold pursuant to this act shall be  expended  pursuant  to
appropriations  for  capital  projects related to design, planning, site
acquisition, demolition, construction,  reconstruction,  rehabilitation,
or  acquisition and/or installation of equipment for the following types
of projects: capital  projects  related  to  repairing,  rehabilitating,
constructing,   enhancing,   expanding  and  modernizing  transportation
systems, roads, bridges, water supply  systems,  drainage  systems,  and
publicly owned storm and sanitary sewers.
  S  2.  This  act  shall  take  effect  immediately,  provided that the
provisions of section one of this act shall not take effect  unless  and
until  this  act  shall have been submitted to the people at the general
election to be held in November 2014 and shall have been approved  by  a
majority  of  all  votes  cast for and against it at such election. Upon
approval by the people, section one of this act shall take effect  imme-
diately.  The  ballots  to  be  furnished  for  the  use  of voters upon
submission of this act shall be in the form prescribed by  the  election
law  and  the  proposition  or question to be submitted shall be printed
thereon in substantially the following form, namely "The URBAN  RESTORA-
TION  BOND  ACT  OF  2014,  as set forth in section one of chapter (here
insert the chapter number) of the laws of 2014, authorizes the  sale  of
state bonds of up to two billion dollars ($2,000,000,000) to provide for
improving  the  infrastructure of cities of this state.  Shall the URBAN
RESTORATION BOND ACT OF 2014 be approved?".

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