The New York State Senate

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

                                  8948

                            I N  S E N A T E

                              June 7, 2018
                               ___________

Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the state finance law, in relation to creating the Puer-
  to  Rican  relief  account;  and  providing  for  the  repeal  of such
  provisions upon expiration thereof

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

  Section 1. The state finance law is amended by adding a new section 96
to read as follows:
  §  96. PUERTO RICAN RELIEF ACCOUNT. 1.  THERE IS HEREBY ESTABLISHED AT
THE REQUEST OF THE COMMONWEALTH OF PUERTO RICO AND IN THE CUSTODY OF THE
COMPTROLLER A SPECIAL ACCOUNT TO BE KNOWN AS THE  "PUERTO  RICAN  RELIEF
ACCOUNT".
  2. THE SOURCES OF FUNDS SHALL CONSIST OF ALL RECOVERY AND RELIEF FUNDS
PROVIDED  BY  THE  FEDERAL GOVERNMENT TO THE COMMONWEALTH OF PUERTO RICO
UNDER THE BIPARTISAN BUDGET ACT OF 2018.
  3. (A) THE COMPTROLLER SHALL INVEST SUCH FUNDS IN SECURITIES IN  WHICH
HE IS AUTHORIZED BY LAW TO INVEST THE FUNDS OF THE STATE, EXCEPT THAT HE
MAY  INVEST  IN  OBLIGATIONS  CONSISTING OF NOTES, BONDS, DEBENTURES, OR
EQUIPMENT TRUST CERTIFICATES ISSUED UNDER AN INDENTURE,  WHICH  ARE  THE
DIRECT  OBLIGATIONS  OF,  OR IN THE CASE OF EQUIPMENT TRUST CERTIFICATES
ARE SECURED BY DIRECT OBLIGATIONS OF, A RAILROAD  OR  INDUSTRIAL  CORPO-
RATION,   OR  A  CORPORATION  ENGAGED  DIRECTLY  AND  PRIMARILY  IN  THE
PRODUCTION, TRANSPORTATION, DISTRIBUTION, OR SALE OF ELECTRICITY OR GAS,
OR THE OPERATION OF TELEPHONE OR TELEGRAPH SYSTEMS OR WATERWORKS, OR  IN
SOME  COMBINATION OF THEM; PROVIDED THE OBLIGOR CORPORATION IS ONE WHICH
IS INCORPORATED UNDER THE LAWS OF THE UNITED STATES, OR ANY STATE THERE-
OF, OR OF THE DISTRICT OF COLUMBIA, AND SAID OBLIGATIONS SHALL BE  RATED
AT  THE TIME OF PURCHASE WITHIN THE THREE HIGHEST CLASSIFICATIONS ESTAB-
LISHED BY AT LEAST TWO STANDARD RATING SERVICES. THE MAXIMUM AMOUNT THAT
THE COMPTROLLER MAY INVEST IN SUCH OBLIGATIONS SHALL NOT  EXCEED  THIRTY
PER  CENTUM OF THE ASSETS OF SUCH ACCOUNT; AND PROVIDED FURTHER THAT NOT
MORE THAN TWO AND ONE-HALF PER CENTUM OF  THE  ASSETS  OF  SUCH  ACCOUNT
SHALL BE INVESTED IN THE OBLIGATIONS OF ANY ONE CORPORATION OF THE HIGH-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD15970-01-8

S. 8948                             2

EST CLASSIFICATION AND SUBSIDIARY OR SUBSIDIARIES THEREOF, THAT NOT MORE
THAN  TWO  PER CENTUM OF THE ASSETS OF SUCH ACCOUNT SHALL BE INVESTED IN
THE OBLIGATIONS OF ANY ONE CORPORATION OF THE SECOND HIGHEST CLASSIFICA-
TION  AND SUBSIDIARY OR SUBSIDIARIES THEREOF, THAT NOT MORE THAN ONE AND
ONE-HALF PER CENTUM OF SUCH ACCOUNT SHALL BE INVESTED IN THE OBLIGATIONS
OF ANY ONE CORPORATION OF THE THIRD HIGHEST CLASSIFICATION  AND  SUBSID-
IARY  OR  SUBSIDIARIES  THEREOF.  HE  SHALL,  HOWEVER, BE SUBJECT TO ALL
TERMS, CONDITIONS, LIMITATIONS AND RESTRICTIONS IMPOSED BY LAW UPON  THE
MAKING OF SUCH INVESTMENTS. THE COMPTROLLER SHALL HAVE FULL POWER:
  (I) TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER OR DISPOSE OF ANY OF THE
SECURITIES  OR INVESTMENTS, IN WHICH ANY ASSETS OF SUCH ACCOUNT SHALL BE
INVESTED, INCLUDING THE PROCEEDS OF  SUCH  INVESTMENTS  AND  ANY  MONIES
BELONGING TO SUCH ACCOUNT, AND
  (II)  IN  HIS  OR  HER  NAME  AS  TRUSTEE, TO FORECLOSE MORTGAGES UPON
DEFAULT OR TO TAKE TITLE TO REAL PROPERTY IN SUCH  PROCEEDINGS  IN  LIEU
THEREOF AND TO LEASE AND SELL REAL PROPERTY SO ACQUIRED.
  (B)  ALL  RETURNS  ON  ANY  INVESTMENTS MADE BY THE COMPTROLLER OF ANY
FUNDS FROM SUCH ACCOUNT SHALL BE DEPOSITED WITHIN SUCH ACCOUNT  FOR  THE
SOLE BENEFIT OF THE COMMONWEALTH OF PUERTO RICO.
  (C)  THE  COMPTROLLER  ANNUALLY  SHALL  CREDIT TO SUCH ACCOUNT REGULAR
INTEREST ON THE MEAN AMOUNT THEREIN FOR THE PRECEDING YEAR.
  (D) THE COMPTROLLER IS AUTHORIZED TO  DEDUCT  ANY  NECESSARY  ADMINIS-
TRATION FEES FOR THE MANAGEMENT OF SUCH ACCOUNT.
  4.  THE  COMMONWEALTH  OF  PUERTO RICO SHALL NOTIFY THE COMPTROLLER OF
THEIR INTENTION TO TERMINATE SUCH ACCOUNT NO LATER THAN THE ONE  HUNDRED
EIGHTIETH DAY PRIOR TO THE DATE SUCH COMMONWEALTH REQUIRES THE RETURN OF
ALL FUNDS FROM SUCH ACCOUNT.
  §  2.  This  act shall take effect immediately and shall expire and be
deemed repealed 5 years after such date.