The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9420
 
                           I N  A S S E M B L Y
 
                               March 7, 2022
                                ___________
 
 Introduced  by M. of A. GIBBS -- read once and referred to the Committee
   on Ways and Means
 
 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-a to read as follows:
   §  96-A.  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.

                                                            LBD03049-01-1
 A. 9420                             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.