Assembly Bill A11088

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11088
 
                           I N  A S S E M B L Y
 
                              October 7, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Thiele,
   Jean-Pierre) -- read once and  referred  to  the  Committee  on  Local
   Governments
 
 AN  ACT  in relation to creating a COVID-19 interim finance authority to
   restructure debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative  findings. It is hereby found, determined and
 declared that there is an immediate need to establish  a  comprehensive,
 coordinated approach to address the unexpected and unprecedented effects
 of  the worldwide COVID-19 pandemic on the economies and finances of the
 counties throughout the state in order to  ensure  the  continuation  of
 basic and essential services to the residents of the state.
   §  2.  A board, to be known as the COVID-19 interim finance authority,
 is hereby created.  Such board shall be a  body  corporate  and  politic
 constituting  a  public benefit corporation. Such board shall consist of
 the commissioner of health, the comptroller or one member  appointed  by
 him  or her who shall serve until his or her successor is appointed, the
 director of the budget, one member appointed by the temporary  president
 of  the senate, one member appointed by the speaker of the assembly, and
 five members to be appointed by the governor, by and with the advice and
 consent of the senate, for terms of three years. The governor shall also
 fill any vacancy which may occur by reason of the  death,  disqualifica-
 tion,  resignation  or  removal of any member theretofore appointed. The
 commissioner of health and the director of the budget each may appoint a
 person or persons to represent such commissioner  or  director,  respec-
 tively,  at  all  meetings of such board from which such commissioner or
 director, as the case may be, may be absent. Any such representative  so
 designated  shall have the power to attend and to vote at any meeting of
 such board from which the officer so designating him or her as a  repre-
 sentative  is  absent  with  the same force and effect as if the officer
 designating him or her were present and voting. The powers of the  board
 shall  be  vested  in and exercised by a majority of the whole number of
 the members thereof. The  members  of  the  board  shall  serve  without
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16956-03-0

 A. 11088                            2
 
 compensation  but shall be entitled to reimbursement of their actual and
 necessary expenses incurred in the performance of their official duties.
 The governor shall appoint a chair from among the members  appointed  by
 him  or  her  who  shall  serve  as  such  until his or her successor is
 appointed. At the first meeting of the board and at  the  first  meeting
 thereof  in  each  fiscal year thereafter the members of the board shall
 choose from their number a vice-chair and a secretary. The authority may
 also use the facilities, employees, records and equipment of the depart-
 ment of education with the consent of the regents.
   a. Notwithstanding any other provision of law  to  the  contrary,  the
 authority is hereby authorized until December 31, 2021 to issue upon the
 request of an eligible New York county, village, town or school district
 bonds, notes or other obligations in one or more series including bonds,
 notes  or  other  obligations issued to restructure or refinance general
 obligation debt, to prepay pension amortization,  to  pay  the  cost  of
 issuance  of such bonds, notes or other obligations, and bonds, notes or
 other obligations issued to refund or otherwise repay such bonds,  notes
 or  other  obligations  previously issued. Bonds of the authority may be
 issued,  amortized,  redeemed  and  refunded  without  regard   to   the
 provisions of the local finance law; provided, however, that the princi-
 pal  amount of outstanding bonds issued by the authority shall be deemed
 to be indebtedness of the county, village, town or school district sole-
 ly in ascertaining the amount of indebtedness the county, village,  town
 or  school  district  may contract pursuant to the local finance law and
 the state constitution and the authority shall not exceed  such  limita-
 tion.  Such  bonds,  notes  or other obligations issued by the authority
 shall not be a debt of  the  state,  county,  village,  town  or  school
 district  and  the state, county, village, town or school district shall
 not be liable thereon, nor shall they be payable out of any funds  other
 than a sufficient portion of its sales and compensating use tax, or real
 property  taxes  pledged to the authority to be apportioned or otherwise
 to be made payable to the  eligible  county,  village,  town  or  school
 district  by  the  state  of  New  York, for payments required under the
 financing agreement between the eligible county, village, town or school
 district and the authority as set forth in subdivision c of this section
 or state aid pledged and assigned by a county, village, town  or  school
 district to the authority for debt service payments and related expenses
 pursuant to any financing agreement entered into pursuant to paragraph b
 of this section.
   b.  Notwithstanding  any  other  provision  of law to the contrary, an
 eligible county, village, town or school district is  hereby  authorized
 to  enter  into one or more financing agreements with the authority upon
 terms as set forth by a duly enacted resolution of the  county  legisla-
 ture,  village board of trustees, town council, or school board however,
 the repayment period shall not exceed  twenty  years  in  duration;  the
 amount restructured and/or borrowed to prepay pension amortization shall
 not  exceed  twenty  percent  of  the  eligible county, village, town or
 school district's budget and principal payments  shall  begin  no  later
 than  the  fifth year of the term. Only debt that is scheduled to mature
 within twelve years may be restructured.
   c. Whenever the authority enters into a financing  agreement  with  an
 eligible county, village, town or school district, each eligible county,
 village, town or school district shall, in connection with the financing
 agreement,  assign  and  pledge to the authority a sufficient portion of
 its sales and compensating use tax or real property  tax  to  be  appor-
 tioned  or otherwise to be made payable to the eligible county, village,

 A. 11088                            3
 
 town or school district by the state of New York, for payments  required
 under  the  financing  agreement  between  the  eligible  county and the
 authority. The eligible county, village, town or school  district  shall
 have  no  right, title, or interest in sales tax, state aid revenues, or
 real property taxes which are paid directly by the state comptroller  to
 the authority's bond trustee to secure the authority's bonds.
   d.  All  county, village, town, school district and state officers are
 hereby authorized and required to pay all funds so assigned and  pledged
 pursuant  to  paragraphs a, b and c of this section to the authority or,
 upon the direction of the authority, to any  trustee  of  any  authority
 bond, note or other obligation issued pursuant to a certificate filed by
 the authority pursuant to the provisions of this section.
   e. The authority shall submit annually to the governor, and the chairs
 of  the senate finance committee and the assembly ways and means commit-
 tee a report which shall include, but not be limited to, detailed infor-
 mation on the  financing  activity  pursuant  to  this  section,  and  a
 detailed summary of the financing agreements entered into with any poli-
 tical subdivision.
   § 3. This act shall take effect immediately.