S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8804
 
                             I N  S E N A T E
 
                               July 17, 2020
                                ___________
 
 Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
 compensation but shall be entitled to reimbursement of their actual  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

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

 S. 8804                             2
 
 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,
 town  or school district by the state of New York, for payments required

 S. 8804                             3
 
 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.