S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9104
 
                             I N  S E N A T E
 
                               June 17, 2018
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
   when printed to be committed to the Committee on Rules
 
 AN ACT to amend chapter 88 of the laws of  2009  amending  the  tax  law
   relating  to  the  imposition  of  an occupancy tax in the city of New
   Rochelle, in relation to extending the effectiveness thereof; to amend
   chapter 89 of the laws of 2009 amending the tax law  relating  to  the
   imposition  of  an  occupancy  tax  in the city of Rye, in relation to
   extending the effectiveness thereof; to amend chapter 62 of  the  laws
   of  2015  amending the tax law, relating to the imposition of an occu-
   pancy tax in the city of Yonkers, in relation to extending the  effec-
   tiveness  thereof;  to amend chapter 327 of the laws of 2006, amending
   the tax law relating to authorizing the county of Essex to  impose  an
   additional  mortgage recording tax, in relation to extending the expi-
   ration and repeal of such provisions; to amend chapter 405 of the laws
   of 2005 amending the tax law relating to  authorizing  the  county  of
   Albany  to  impose  a county recording tax on obligations secured by a
   mortgage on real property, in relation to extending the  effectiveness
   thereof;  to  amend  chapter 368 of the laws of 2008, amending the tax
   law relating to authorizing the county of Warren to  impose  an  addi-
   tional mortgage recording tax, in relation to extending the effective-
   ness  thereof;  to  amend chapter 218 of the laws of 2009 amending the
   tax law relating to authorizing the county  of  Greene  to  impose  an
   additional mortgage recording tax, in relation to extending the effec-
   tiveness  thereof;  to  amend chapter 98 of the laws of 2009, amending
   the tax law relating to  authorizing  the  county  of  Cattaraugus  to
   impose  an additional mortgage recording tax, in relation to extending
   the expiration thereof; to amend chapter  105  of  the  laws  of  2009
   amending chapter 693 of the laws of 1980 enabling the county of Albany
   to  impose  and  collect taxes on occupancy of hotel or motel rooms in
   Albany county relating to revenues received  from  the  collection  of
   hotel or motel occupancy taxes, in relation to the effectiveness ther-
   eof;  to amend the real property tax law, in relation to adjusted base
   proportions for assessment rolls; to amend the real property tax  law,
   in  relation  to  the  determination  of  adjusted base proportions in
   special assessing units which are cities for the fiscal year two thou-
   sand nineteen; to amend the real property  tax  law,  in  relation  to
   allowing  certain  special assessing units other than cities to adjust
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16262-03-8

 S. 9104                             2
 
   their current base proportions, adjusted base proportions for  assess-
   ment  rolls,  and  the  base proportion in approved assessing units in
   Nassau county; to amend the local finance law, in relation to the sale
   of  bonds and notes of the city of Buffalo; to amend the local finance
   law, in relation to the sale of bonds and notes of  the  city  of  New
   York,  the issuance of bonds or notes with variable rates of interest,
   interest rate exchange agreements of the city of New York, the refund-
   ing of bonds, and the down payment for projects financed by bonds;  to
   amend  chapter 868 of the laws of 1975 constituting the New York state
   financial emergency act for the city of New York,  in  relation  to  a
   pledge  and  agreement  of  the state; and to amend chapter 142 of the
   laws of 2004, amending the local finance law relating to interest rate
   exchange agreements of the city of New York  and  refunding  bonds  of
   such  city, in relation to the effectiveness thereof; and to amend the
   local finance law, in relation to bonds and notes of the city of Yonk-
   ers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  2 of chapter 88 of the laws of 2009 amending the
 tax law relating to the imposition of an occupancy tax in  the  city  of
 New  Rochelle, as amended by chapter 159 of the laws of 2015, is amended
 to read as follows:
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed September 1, [2018] 2021.
   §  2. Section 2 of chapter 89 of the laws of 2009 amending the tax law
 relating to the imposition of an occupancy tax in the city  of  Rye,  as
 amended  by  chapter  204  of  the  laws  of 2015, is amended to read as
 follows:
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed September 1, [2018] 2021.
   §  3.  Section  2  of  chapter 62 of the laws of 2015 amending the tax
 relating to the imposition of an occupancy tax in the city  of  Yonkers,
 is amended to read as follows:
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed September 1, [2018] 2021.
   § 4. Section 3 of chapter 327 of the laws of 2006,  amending  the  tax
 law  relating to authorizing the county of Essex to impose an additional
 mortgage recording tax, as amended by chapter 289 of the laws  of  2015,
 is amended to read as follows:
   §  3.  This act shall take effect immediately; provided, however, that
 this act shall expire and be deemed repealed December 1, [2018] 2021.
   § 5. Section 2 of chapter 405 of the laws of 2005 amending the tax law
 relating to authorizing the county of Albany to impose a county  record-
 ing  tax  on  obligations  secured  by  a  mortgage on real property, as
 amended by chapter 132 of the laws  of  2016,  is  amended  to  read  as
 follows:
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall expire and be deemed repealed on  the  first
 of December, [2018] 2020.
   §  6.  Section  2 of chapter 368 of the laws of 2008, amending the tax
 law relating to authorizing the county of Warren to impose an additional
 mortgage recording tax, as amended by chapter 190 of the laws  of  2016,
 is amended to read as follows:

 S. 9104                             3
 
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed December 1, [2018] 2020.
   § 7. Section 2 of chapter 218 of the laws of 2009 amending the tax law
 relating  to  authorizing  the  county of Greene to impose an additional
 mortgage recording tax, as amended by chapter 129 of the laws  of  2016,
 is amended to read as follows:
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law and shall expire and be deemed  repealed  December  1,
 [2018] 2020.
   § 8. Section 2 of chapter 98 of the laws of 2009, amending the tax law
 relating  to  authorizing  the  county of Cattaraugus to impose an addi-
 tional mortgage recording tax, as amended by chapter 303 of the laws  of
 2015, is amended to read as follows:
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed December 1, [2018] 2021.
   § 9. Section 3 of chapter 105 of the laws of 2009 amending chapter 693
 of the laws of 1980 enabling the county of Albany to impose and  collect
 taxes  on occupancy of hotel or motel rooms in Albany county relating to
 revenues received from the collection of hotel or motel occupancy taxes,
 as amended by chapter 452 of the laws of 2016, is  amended  to  read  as
 follows:
   §  3.  This  act  shall take effect upon the adoption by the county of
 Albany of a local law imposing in such county the  additional  occupancy
 tax  authorized  by  this  act  and  shall expire and be deemed repealed
 December 31, [2018] 2020; provided that Albany county shall  notify  the
 legislative  bill  drafting commission upon the occurrence of the enact-
 ment of such local law in order that  the  commission  may  maintain  an
 accurate and timely effective data base of the official text of the laws
 of  the  state of New York in furtherance of effecting the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.
   §  10.  Subparagraph (iv) of paragraph (a) of subdivision 3 of section
 1903 of the real property tax law, as amended by chapter 152 of the laws
 of 2017, is amended to read as follows:
   (iv) Notwithstanding any  other  provision  of  law,  in  an  approved
 assessing unit in the county of Suffolk and for current base proportions
 to  be  determined  by taxes based on such approved assessing unit's two
 thousand three - two thousand four, two thousand  four  -  two  thousand
 five  and  two  thousand  five  - two thousand six assessment rolls, the
 current base proportion of any class shall not exceed the adjusted  base
 proportion  or  adjusted  proportion,  whichever  is appropriate, of the
 immediately preceding year by more than two percent, or in the  case  of
 the  two thousand five--two thousand six, two thousand six--two thousand
 seven, two thousand seven--two thousand eight, two  thousand  eight--two
 thousand  nine, two thousand twelve--two thousand thirteen, two thousand
 thirteen--two thousand fourteen,  two  thousand  fourteen--two  thousand
 fifteen,  two  thousand  fifteen--two  thousand  sixteen,  two  thousand
 sixteen--two thousand seventeen, [and] two thousand seventeen--two thou-
 sand eighteen, AND TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN  assess-
 ment   rolls,  one  percent.  Where  the  computation  of  current  base
 proportions would  otherwise  produce  such  result,  the  current  base
 proportion of such class or classes shall be limited to such two percent
 or  one  percent  increase  whichever is applicable, and the legislative
 body of such approved  assessing  unit  shall  alter  the  current  base
 proportion  of  either  class  so  that  the  sum  of  the  current base
 proportions equals one.

 S. 9104                             4
 
   § 11. Subdivision 1 of section 1803-a of the real property tax law  is
 amended by adding a new paragraph (dd) to read as follows:
   (DD)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVI-
 SION TO THE CONTRARY, IN A SPECIAL ASSESSING UNIT WHICH IS  A  CITY  AND
 FOR  CURRENT BASE PROPORTIONS TO BE DETERMINED IN SUCH SPECIAL ASSESSING
 UNIT'S FISCAL YEAR TWO THOUSAND NINETEEN, THE CURRENT BASE PROPORTION OF
 ANY CLASS SHALL NOT EXCEED THE  ADJUSTED  BASE  PROPORTION  OR  ADJUSTED
 PROPORTION,  WHICHEVER IS APPROPRIATE, OF THE IMMEDIATELY PRECEDING YEAR
 BY MORE THAN ONE-HALF OF ONE PERCENT. WHERE  THE  COMPUTATION  PERFORMED
 PURSUANT  TO  PARAGRAPH  (B) OF THIS SUBDIVISION WOULD OTHERWISE PRODUCE
 SUCH RESULT, THE CURRENT BASE PROPORTION OF SUCH CLASS OR CLASSES  SHALL
 BE  LIMITED  TO  A  ONE-HALF OF ONE PERCENT INCREASE AND THE LEGISLATIVE
 BODY OF SUCH SPECIAL ASSESSING UNIT SHALL ALTER THE CURRENT BASE PROPOR-
 TION OF ANY OR ALL REMAINING CLASSES SO THAT THE SUM OF THE CURRENT BASE
 PROPORTIONS EQUALS ONE.
   § 12. In the event the special assessing unit which is a city has sent
 out real property tax bills for its fiscal year  2019  before  this  act
 shall  have become a law, the city shall take such actions as are neces-
 sary, consistent with applicable state and  local  law,  to  effect  the
 provisions of section eleven of this act, including, but not limited to,
 revising  the  current  base  proportions and adjusted base proportions,
 resetting the real property tax rates and sending amended real  property
 tax  bills.  Provided,  however,  that nothing herein shall be deemed to
 affect the obligation of any taxpayer with respect to the payment of any
 installment of real property tax for such fiscal year which was due  and
 payable prior to the date such amended real property tax bills are sent;
 for  this  purpose,  such  obligations shall be determined in accordance
 with the applicable provisions of law that were  in  effect  immediately
 prior to the effective date of this act, and such  city shall be author-
 ized to determine the date on which amended bills are to be sent and the
 installments of real property tax which are to be reflected therein.
   §  13. Subdivision 1 of section 1803-a of the real property tax law is
 amended by adding a new paragraph (ee) to read as follows:
   (EE) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (C) OF THIS  SUBDIVI-
 SION TO THE CONTRARY, IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY AND
 FOR  CURRENT  BASE  PROPORTIONS  TO BE DETERMINED BY TAXES BASED ON SUCH
 SPECIAL ASSESSING UNIT'S TWO  THOUSAND  EIGHTEEN  ASSESSMENT  ROLL,  THE
 CURRENT  BASE PROPORTION OF ANY CLASS SHALL NOT EXCEED THE ADJUSTED BASE
 PROPORTION OR ADJUSTED PROPORTION,  WHICHEVER  IS  APPROPRIATE,  OF  THE
 IMMEDIATELY  PRECEDING YEAR BY MORE THAN ONE PERCENT. WHERE THE COMPUTA-
 TION PERFORMED PURSUANT TO  PARAGRAPH  (B)  OF  THIS  SUBDIVISION  WOULD
 OTHERWISE PRODUCE SUCH RESULT, THE CURRENT BASE PROPORTION OF SUCH CLASS
 OR  CLASSES SHALL BE LIMITED TO SUCH ONE PERCENT INCREASE AND THE LEGIS-
 LATIVE BODY OF SUCH SPECIAL ASSESSING UNIT SHALL ALTER THE CURRENT  BASE
 PROPORTION  OF  ANY  OR  ALL  REMAINING  CLASSES  SO THAT THE SUM OF THE
 CURRENT BASE PROPORTIONS EQUALS ONE.
   § 13-a. Paragraph (a) of subdivision 3 of section  1903  of  the  real
 property  tax  law is amended by adding a new subparagraph (xix) to read
 as follows:
   (XIX) NOTWITHSTANDING ANY OTHER  PROVISION  OF  LAW,  IN  AN  APPROVED
 ASSESSING  UNIT IN THE COUNTY OF NASSAU AND FOR CURRENT BASE PROPORTIONS
 TO BE DETERMINED BY TAXES BASED ON SUCH APPROVED  ASSESSING  UNIT'S  TWO
 THOUSAND  EIGHTEEN  ROLL, THE CURRENT BASE PROPORTION OF ANY CLASS SHALL
 NOT EXCEED THE ADJUSTED BASE PROPORTION OR ADJUSTED PROPORTION, WHICHEV-
 ER IS APPROPRIATE, OF THE IMMEDIATELY PRECEDING YEAR, BY MORE  THAN  ONE
 PERCENT,  PROVIDED  THAT SUCH APPROVED ASSESSING UNIT HAS PASSED A LOCAL

 S. 9104                             5
 
 LAW, ORDINANCE OR RESOLUTION PROVIDING THEREFOR. WHERE  THE  COMPUTATION
 OF  CURRENT  BASE  PROPORTIONS  WOULD OTHERWISE PRODUCE SUCH RESULT, THE
 CURRENT BASE PROPORTION OF SUCH CLASS OR CLASSES  SHALL  BE  LIMITED  TO
 SUCH  ONE  PERCENT  INCREASE  AND  THE LEGISLATIVE BODY OF SUCH APPROVED
 ASSESSING UNIT SHALL ALTER THE CURRENT BASE PROPORTION OF  EITHER  CLASS
 SO THAT THE SUM OF THE CURRENT BASE PROPORTIONS EQUALS ONE.
   § 14. Section 54.30 of the local finance law, as amended by chapter 62
 of the laws of 2017, is amended to read as follows:
   §  54.30  Costs  of  sales;  bonds  and  notes of the city of Buffalo.
 Subject to the provisions of chapter one hundred twenty-two of the  laws
 of  two  thousand three creating the Buffalo fiscal stability authority,
 to facilitate the marketing of any issue of serial bonds or notes of the
 city of Buffalo issued on or before June thirtieth, two thousand  [eigh-
 teen]  NINETEEN,  such  city  may,  notwithstanding  any  limitations on
 private sales of bonds provided by law, and subject to approval  by  the
 state  comptroller of the terms and conditions of such sale: (a) arrange
 for the underwriting of its bonds or notes at private sale through nego-
 tiated agreement, compensation for such underwriting to be  provided  by
 negotiated  fee or by sale of such bonds or notes to an underwriter at a
 price of less than the sum of par value of, and the accrued interest on,
 such obligations; or (b) arrange for the private sale of  its  bonds  or
 notes  through  negotiated  agreement, compensation for such sales to be
 provided by negotiated fee, if required. The cost of  such  underwriting
 or  private placement shall be deemed a preliminary cost for purposes of
 section 11.00 of this article.
   § 15. The opening paragraph of paragraph (a) of section 54.10  of  the
 local  finance  law,  as  amended  by chapter 64 of the laws of 2017, is
 amended to read as follows:
   To facilitate the marketing of any issue of bonds or notes of the city
 of New York issued on or before June thirtieth, two thousand  [eighteen]
 NINETEEN,  the  mayor  and  comptroller of such city may, subject to the
 approval of the state comptroller and the limitations on  private  sales
 of bonds and notes, respectively, provided by law:
   §  16.  The  closing  paragraph of paragraph a of section 54.90 of the
 local finance law, as amended by chapter 64 of  the  laws  of  2017,  is
 amended to read as follows:
   Notwithstanding the foregoing, whenever in the judgment of the finance
 board  of the city of New York the interest of such city would be served
 thereby, the city of New York may without further approval  issue  bonds
 or notes, on or before July fifteenth, two thousand [eighteen] NINETEEN,
 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 city or other persons to purchase  such  bonds  or
 notes  or  renewals  thereof  from the proceeds of the resale thereof or
 otherwise from time to time prior to the final maturity of such bonds or
 notes as the finance board of the city of New York may determine and the
 city 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  by the city of New York pursuant to this paragraph (other
 than bonds and notes (1) bearing interest at rates and  for  periods  of
 time that are specified without reference to future events or contingen-
 cies,  or  (2) described in section 136.00 of this article) exceed twen-
 ty-five percent of the limit prescribed by section 104.00 of this  arti-
 cle.

 S. 9104                             6
 
   § 17. The opening paragraph of subdivision 1 of paragraph d of section
 54.90  of the local finance law, as amended by chapter 64 of the laws of
 2017, is amended to read as follows:
   On  or  before  July  fifteenth,  two thousand [eighteen] NINETEEN the
 mayor and comptroller of the city of New York may:
   § 18. The opening paragraph of paragraph a of  section  57.00  of  the
 local  finance  law,  as  amended  by chapter 64 of the laws of 2017, is
 amended to read as follows:
   Bonds shall be sold only at public sale and  in  accordance  with  the
 procedure set forth in this section and sections 58.00 and 59.00 of this
 title, except as otherwise provided in this paragraph. Bonds may be sold
 at private sale to the United States government or any agency or instru-
 mentality  thereof, the state of New York municipal bond bank agency, to
 any sinking fund or pension fund of the municipality, school district or
 district corporation selling such bonds, or, in the case of sales by the
 city of New York prior to July first, two thousand [eighteen]  NINETEEN,
 also to the municipal assistance corporation for the city of New York or
 to any other purchaser with the consent of the mayor and the comptroller
 of  such  city and approval of the state comptroller, or, in the case of
 sales by the county of Nassau prior to December thirty-first, two  thou-
 sand seven, also to the Nassau county interim finance authority with the
 approval  of the state comptroller, or, in the case of sales by the city
 of Buffalo prior to June thirtieth, two thousand thirty-seven,  also  to
 the  Buffalo  fiscal  stability authority with the approval of the state
 comptroller, or, in the case of bonds or other obligations of a  munici-
 pality issued for the construction of any sewage treatment works, sewage
 collecting  system,  storm  water  collecting  system,  water management
 facility, air pollution control facility or solid waste disposal facili-
 ty, also to the New York state environmental facilities corporation, or,
 in the case of bonds or other obligations of a school district or a city
 acting on behalf of a city school district in a city having a population
 in excess of one hundred twenty-five thousand but less than one  million
 inhabitants according to the latest federal census, issued to finance or
 refinance  the  cost  of  school  district  capital facilities or school
 district capital equipment, as defined in section sixteen hundred seven-
 ty-six of the public authorities law, also to the dormitory authority of
 the state of New York. Bonds of a river improvement or drainage district
 established by or under the supervision of the  department  of  environ-
 mental conservation may be sold at private sale to the state of New York
 as  investments for any funds of the state which by law may be invested,
 provided, however, that the rate of interest on any such bonds  so  sold
 shall  be  approved  by  the  water power and control commission and the
 state comptroller. Bonds may also be sold at private sale as provided in
 section 63.00 of this title. No bonds shall be sold on option  or  on  a
 deferred  payment plan, except that options to purchase, effective for a
 period not exceeding one year, may be given:
   § 19. Subdivision 3 of paragraph g  of  section  90.00  of  the  local
 finance law, as amended by chapter 64 of the laws of 2017, is amended to
 read as follows:
   3.  Outstanding bonds may, pursuant to a power to recall and redeem or
 with the consent of the holders  thereof,  be  exchanged  for  refunding
 bonds (i) if the refunding bonds are to bear interest at a rate equal to
 or  lower than that borne by the bonds to be refunded or (ii) if, in the
 case of the city of New York prior to July first,  two  thousand  [eigh-
 teen]  NINETEEN,  the annual payment required for principal and interest
 on the refunding bond is less than the annual payment required for prin-

 S. 9104                             7
 
 cipal and interest on the bond to be refunded, in each case such  annual
 payments  to  be determined by dividing the total principal and interest
 payments due over the remaining life of the bond by the number of  years
 to maturity of the bond or (iii) if the bonds to be refunded were issued
 by  the city of New York after June thirtieth, nineteen hundred seventy-
 eight and prior to July first,  two  thousand  [eighteen]  NINETEEN  and
 contain  covenants  referring  to  the  existence  of the New York state
 financial control board for the city of New York or any other  covenants
 relating  to  matters  other  than  the  prompt payment of principal and
 interest on the obligations when due and the  refunding  bond  omits  or
 modifies any such covenant.
   §  20.  Subdivision  8  of  paragraph d of section 107.00 of the local
 finance law, as amended by chapter 64 of the laws of 2017, is amended to
 read as follows:
   8. Notwithstanding any other provision of law, the  financing  by  the
 city  of  New York prior to July first, two thousand [eighteen] NINETEEN
 of any object or purpose which  has  a  period  of  probable  usefulness
 determined  by  law by the issuance of any bonds or notes, including (i)
 the issuance of bonds or notes to obtain reimbursement for funds hereto-
 fore advanced for the object or purpose for which the bonds or notes are
 being issued, (ii) the issuance of bonds or notes to redeem notes previ-
 ously issued for the object or purpose for which the bonds or notes  are
 being  issued  or (iii) the issuance of bonds to refund bonds previously
 issued for the object or purpose for which bonds are being issued.
   § 21. Subdivision 1 of section 10-a of section 2 of chapter 868 of the
 laws of 1975, constituting the New York state  financial  emergency  act
 for  the city of New York, as amended by chapter 64 of the laws of 2017,
 is amended to read as follows:
   1. In the event that after the date on which the  provisions  of  this
 act become operative, any notes or bonds are issued by the city prior to
 July  1, [2018] 2019, or any bonds are issued by a state financing agen-
 cy, the state of New York hereby authorizes the city and authorizes  and
 requires  such  state financing agency to include a pledge and agreement
 of the state of New York in any agreement made by the city or such state
 financing agency with holders or guarantors of such notes or bonds  that
 the  state  will not take any action which will (a) substantially impair
 the authority of the board during a control period, as defined in subdi-
 vision twelve of section two of this act as in effect on the  date  such
 notes  or  bonds  are  issued  (i) to approve, disapprove, or modify any
 financial plan or financial plan  modification,  including  the  revenue
 projections  (or  any  item  thereof)  contained therein, subject to the
 standards set forth in paragraphs a, c, d, e and f of subdivision one of
 section eight of this act as in effect on the date such notes  or  bonds
 are issued and paragraph b of such subdivision as in effect from time to
 time,  (ii)  to disapprove a contract of the city or a covered organiza-
 tion if the performance of such contract would be inconsistent with  the
 financial  plan or to approve or disapprove proposed short-term or long-
 term borrowing of the city or a covered organization or any agreement or
 other arrangement referred to in subdivision four of  section  seven  of
 this act, or (iii) to establish and adopt procedures with respect to the
 deposit  in  and  disbursement from the board fund of city revenues; (b)
 substantially impair the authority of  the  board  to  review  financial
 plans,  financial  plan  modifications,  contracts  of  the  city or the
 covered organizations and proposed short-term or long-term borrowings of
 the city and the covered organizations;  (c)  substantially  impair  the
 independent  maintenance  of  a  separate  fund  for the payment of debt

 S. 9104                             8
 
 service on bonds and notes of the city; (d) alter the composition of the
 board so that the majority of the voting members of the  board  are  not
 officials  of  the state of New York elected in a state-wide election or
 appointees  of  the  governor;  (e) terminate the existence of the board
 prior to the time to be determined in accordance with  section  thirteen
 of this act as in effect on the date such notes or bonds are issued; (f)
 substantially  modify  the  requirement that the city's financial state-
 ments be audited by a nationally recognized independent certified public
 accounting firm or consortium of firms and that a report on  such  audit
 be  furnished  to  the  board;  or (g) alter the definition of a control
 period set forth in subdivision twelve of section two of this act, as in
 effect on the date such notes or  bonds  are  issued,  or  substantially
 alter  the  authority  of the board, as set forth in said subdivision to
 reimpose or terminate a control  period;  provided,  however,  that  the
 foregoing  pledge  and agreement shall be of no further force and effect
 if at any time (i) there is on deposit in a separate trust account  with
 a  bank,  trust  company  or other fiduciary sufficient moneys or direct
 obligations of the United States or obligations guaranteed by the United
 States, the principal of and/or interest on which will provide moneys to
 pay punctually when due at maturity or prior to maturity by  redemption,
 in  accordance  with  their  terms, all principal of and interest on all
 outstanding notes and bonds of the city or such state  financing  agency
 containing  this  pledge and agreement and irrevocable instructions from
 the city or such state financing agency to such bank, trust  company  or
 other  fiduciary  for  such  payment of such principal and interest with
 such moneys shall have been given, or (ii) such notes and bonds, togeth-
 er with interest thereon, have been paid in full  at  maturity  or  have
 otherwise been refunded, redeemed, defeased, or discharged; and provided
 further  that  the foregoing pledge and agreement shall be of full force
 and effect upon its inclusion in any agreement made by the city or state
 financing agency with holders or guarantors of such notes or bonds.
   Upon payment for such obligations issued pursuant to this act  by  the
 original  and all subsequent holders inclusion of the foregoing covenant
 shall be deemed conclusive evidence of valuable  consideration  received
 by the state and city for such covenant and of reliance upon such pledge
 and agreement by any such holder. The state hereby grants any such bene-
 fited  holder  the right to sue the state in a court of competent juris-
 diction and enforce this covenant and agreement and waives all rights of
 defense based on sovereign immunity in such an action or suit.
   § 22. Section 5 of chapter 142 of the laws of 2004, amending the local
 finance law relating to interest rate exchange agreements of the city of
 New York and refunding bonds of such city, as amended by chapter  64  of
 the laws of 2017, is amended to read as follows:
   §  5.  This  act shall take effect immediately, provided, that section
 three of this act shall expire and be deemed repealed  July  15,  [2018]
 2019.
   § 23. Section 54.40 of the local finance law, as amended by chapter 44
 of the laws of 2017, is amended to read as follows:
   §  54.40  Bonds  and  notes  of  the  city  of Yonkers. Subject to the
 provisions of the New York state financial  emergency  act  of  nineteen
 hundred eighty-four for the city of Yonkers, to facilitate the marketing
 of  any  issue of serial bonds or notes of the city of Yonkers issued on
 or before June thirtieth, two thousand [eighteen]  NINETEEN,  such  city
 may,  notwithstanding any limitations on private sales of bonds provided
 by law, and subject to approval by the state comptroller  of  the  terms
 and  conditions  of  such  sale: (a) arrange for the underwriting of its

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 bonds or notes at private sale  through  negotiated  agreement,  compen-
 sation for such underwriting to be provided by negotiated fee or by sale
 of such bonds or notes to an underwriter at a price of less than the sum
 of  par  value of, and the accrued interest on, such obligations; or (b)
 arrange for the private sale of its bonds or  notes  through  negotiated
 agreement, compensation for such sales to be provided by negotiated fee,
 if required. The cost of such underwriting or private placement shall be
 deemed a preliminary cost for purposes of section 11.00 of this article.
   §  24. This act shall take effect immediately; provided, however, that
 section thirteen of this act shall apply to the levy of taxes  based  on
 the  2018 assessment roll in a special assessing unit that is not a city
 and that section thirteen-a of this act shall apply to the levy of taxes
 based on the 2018 assessment roll in approved  assessing  units  in  the
 county of Nassau that pass a local law, ordinance or resolution to adopt
 these provisions.