S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10349
 
                           I N  A S S E M B L Y
 
                              April 16, 2018
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee 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 77 of the  laws  of  2015,  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
 [eighteen] TWENTY-ONE, 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 77 of the laws of 2015, is amended to read as follows:
   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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15403-01-8

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 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, 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
 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

 A. 10349                            3
 
 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,  a  municipality,
 school  district,  or district corporation may provide for redemption 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 77 of  the  laws  of  2015,  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 [eighteen] TWENTY-ONE,
 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 ther-
 eof 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 specified at issu-
 ance) 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 77 of the laws of 2015, is amended to
 read as follows:
   9. Notwithstanding any other provision of law, the  financing  by  any
 municipality,  prior  to July fifteenth, two thousand [eighteen] TWENTY-
 ONE, of any object or purpose which has a period of probable  usefulness
 determined by law, by the issuance of any bonds and notes, including (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  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 77 of the laws of 2015, are  amended  to
 read as follows:

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   (a) section six, sixteen and seventeen of this act shall expire and be
 deemed  repealed  on  and after July 15, [2018] 2021, 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 preceding 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, [2018] 2021;
   § 6. This act shall take effect immediately.