S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10282
 
                           I N  A S S E M B L Y
 
                               May 16, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Santabar-
   bara) -- read once and referred to the Committee on Local Governments
 
 AN ACT to amend the local finance law and chapter 419  of  the  laws  of
   1991,  amending  the  local  finance  law  and  other laws relating to
   providing relief to local governments for  certain  mandated  programs
   and  services, in relation to local government borrowing practices and
   mandate relief
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph b of section 21.00 of the local finance law, as
 amended by chapter 121 of the laws  of  2021,  is  amended  to  read  as
 follows:
   b.  Serial  bonds  shall  mature  in  annual  installments.  The first
 installment shall mature not later than eighteen months after  the  date
 of such bonds or two years after the date of the first bond anticipation
 note  or  notes  issued  in anticipation of such bonds, whichever is the
 earlier, provided, however, that  until  July  fifteenth,  two  thousand
 [twenty-four] TWENTY-SEVEN, the first installment shall mature not later
 than  two years after the date of such bonds or two years after the date
 of the first bond anticipation note or notes issued in  anticipation  of
 such  bonds,  whichever  is  the  earlier. However, if bond anticipation
 notes are issued in anticipation of bonds and if a portion of such notes
 or the renewals thereof are  redeemed  from  a  source  other  than  the
 proceeds  of such bonds within two years from the date of the first such
 note or notes and a further portion thereof shall be so  redeemed  prior
 to  the  termination  of  each twelve months' period succeeding the date
 such original portion was so redeemed, the  first  installment  of  such
 bonds  may,  in  the  alternative, be made to mature not later than five
 years from the date of the first such note or notes.
   § 2. Paragraph b of section 53.00 of the local finance law, as amended
 by chapter 121 of the laws of 2021, is amended to read as follows:
   b. If such bonds or notes are payable in  installments,  the  install-
 ments  remaining  unpaid  may  be  called for redemption only (i) in the
 inverse order of their maturity or, (ii) in equal proportionate amounts;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15469-01-4
 A. 10282                            2
 
 provided, however, that for bonds  issued  during  the  one-year  period
 commencing  July  first,  nineteen  hundred  eighty-eight, and for bonds
 issued during  the  one-year  period  commencing  July  first,  nineteen
 hundred  eighty-nine,  and  for  bonds issued during the one-year period
 commencing July first, nineteen hundred ninety,  and  for  bonds  issued
 during  the  three-year  period  commencing July first, nineteen hundred
 ninety-one, and for bonds issued during  the  period  from  July  first,
 nineteen  hundred  ninety-four  up  until  and including July fifteenth,
 nineteen hundred ninety-seven and for bonds  issued  during  the  period
 from  July fifteenth, nineteen hundred ninety-seven up until and includ-
 ing July fifteenth, two thousand, and for bonds issued during the period
 from July fifteenth, two thousand up until and including July fifteenth,
 two thousand three, and for bonds issued during  the  period  from  July
 fifteenth, two thousand three up until and including July fifteenth, two
 thousand  six,  and  for  bonds  issued  during  the  period  from  July
 fifteenth, two thousand six up until and including July  fifteenth,  two
 thousand  nine,  and  for  bonds  issued  during  the  period  from July
 fifteenth, two thousand six up until and including July  fifteenth,  two
 thousand  twelve,  and  for  bonds  issued  during  the period from July
 fifteenth, two thousand nine up until and including July fifteenth,  two
 thousand  fifteen,  and  for  bonds  issued  during the period from July
 fifteenth, two thousand fifteen up until and including  July  fifteenth,
 two  thousand eighteen, and for bonds issued during the period from July
 fifteenth, two thousand eighteen up until and including July  fifteenth,
 two  thousand  twenty-one,  and  for bonds issued during the period from
 July fifteenth, two thousand twenty-one  up  until  and  including  July
 fifteenth,  two  thousand  twenty-four,  AND FOR BONDS ISSUED DURING THE
 PERIOD FROM JULY  FIFTEENTH,  TWO  THOUSAND  TWENTY-FOUR  UP  UNTIL  AND
 INCLUDING   JULY  FIFTEENTH,  TWO  THOUSAND  TWENTY-SEVEN,  installments
 remaining unpaid on such bonds may be called  for  redemption  prior  to
 their date of maturity in such amounts, at such times in such manner and
 pursuant  to  such  terms as may be determined by the finance board of a
 municipality, school district or district corporation at the time of the
 issuance thereof.  Whenever any bonds or notes are called for redemption
 prior to the date of their maturity, interest shall  cease  to  be  paid
 thereon after the date for redemption set forth in such call for redemp-
 tion.  The  sum to be paid to redeem any unpaid installment prior to its
 maturity, exclusive of the interest accruing on such installment to  the
 date  of redemption, shall in no event be in excess of the lesser amount
 of either (i) the par value of such installment plus one-half of one per
 centum of such par value for each calendar year or part thereof elapsing
 between the date for redemption set forth in such  call  for  redemption
 and  the  date  of maturity of such installment, provided, however, that
 such amount shall not exceed one hundred five per  centum  of  such  par
 value,  or  (ii) the par value of such installment plus the total of all
 unpaid interest on such installment which would have  accrued  from  the
 date  of redemption to the date of maturity thereof had such installment
 not been redeemed prior to maturity, except that bonds sold to the state
 of New York municipal bond bank agency, which are  subject  to  call  as
 hereinbefore  authorized,  may  provide  for the payment of a redemption
 premium not to exceed five per centum of the par value of the  bonds  to
 be  called,  payable  on  the  date of the redemption thereof; provided,
 however, that for bonds issued during  the  one-year  period  commencing
 July  first,  nineteen hundred eighty-eight, and for bonds issued during
 the one-year period commencing July first, nineteen hundred eighty-nine,
 and for bonds issued during the one-year period commencing  July  first,
 A. 10282                            3
 
 nineteen  hundred  ninety,  and  for  bonds issued during the three-year
 period commencing July first, nineteen hundred ninety-one, and for bonds
 issued during the period from July first, nineteen  hundred  ninety-four
 up  until  and  including July fifteenth, nineteen hundred ninety-seven,
 and for bonds issued during the period  from  July  fifteenth,  nineteen
 hundred  ninety-seven  up  until and including July fifteenth, two thou-
 sand, and for bonds issued during the period from  July  fifteenth,  two
 thousand  up until and including July fifteenth, two thousand three, and
 for bonds issued during the period from  July  fifteenth,  two  thousand
 three  up  until and including July fifteenth, two thousand six, and for
 bonds issued during the period from July fifteenth, two thousand six  up
 until  and  including  July  fifteenth, two thousand nine, and for bonds
 issued during the period from July fifteenth, two thousand nine up until
 and including July fifteenth, two thousand twelve, and for bonds  issued
 during  the period from July fifteenth, two thousand twelve up until and
 including July fifteenth, two thousand fifteen,  and  for  bonds  issued
 during the period from July fifteenth, two thousand fifteen up until and
 including  July  fifteenth,  two thousand eighteen, and for bonds issued
 during the period from July fifteenth, two thousand  eighteen  up  until
 and  including  July  fifteenth,  two thousand twenty-one, and for bonds
 issued during the period from July fifteenth, two thousand twenty-one up
 until and including July fifteenth, two thousand  twenty-four,  AND  FOR
 BONDS  ISSUED  DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND TWEN-
 TY-FOUR UP UNTIL AND INCLUDING JULY FIFTEENTH, TWO THOUSAND  TWENTY-SEV-
 EN, a municipality, school district, or district corporation may provide
 for  redemption  of  such bonds prior to the date of their maturity at a
 price or prices as may be as determined by the issuer of such  bonds  or
 notes at the time of the issuance thereof.
   §  3.  The  opening  paragraph  of paragraph a of section 54.90 of the
 local finance law, as amended by chapter 121 of the  laws  of  2021,  is
 amended to read as follows:
   Whenever  in the judgment of the finance board the interest of a muni-
 cipality would be served thereby, the municipality may  issue  bonds  or
 notes,  on  or before July fifteenth, two thousand [twenty-four] TWENTY-
 SEVEN, 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  municipality  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 may  determine  and
 the  municipality  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 pursuant to this paragraph (other than bonds and
 notes bearing interest at rates and for periods of time that are  speci-
 fied  at issuance) exceed ten percent of the limit prescribed by section
 104.00 of this article.
   § 4. Subdivision 9 of paragraph d  of  section  107.00  of  the  local
 finance  law,  as amended by chapter 121 of the laws of 2021, is amended
 to read as follows:
   9. Notwithstanding any other provision of law, the  financing  by  any
 municipality,  prior to July fifteenth, two thousand [twenty-four] TWEN-
 TY-SEVEN, of any object or  purpose  which  has  a  period  of  probable
 usefulness  determined  by  law, by the issuance of any bonds and notes,
 including (i) the issuance of bonds or notes, to redeem notes previously
 A. 10282                            4
 
 issued for the object or purpose for which the bonds or notes are  being
 issued  or  (ii) the issuance of bonds to refund bonds previously issued
 for the object or purpose for which bonds are being issued.
   § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws
 of  1991,  amending  the  local  finance  law and other laws relating to
 providing relief to local governments for certain mandated programs  and
 services,  as amended by chapter 121 of the laws of 2021, are amended to
 read as follows:
   (a) sections six, sixteen and seventeen of this act shall  expire  and
 be deemed repealed on and after July 15, [2024] 2027, and upon such date
 the  amendments  made to the provisions of the local finance law by such
 sections shall also expire and such provisions shall revert  to  and  be
 read  as  set out in law on the date immediately preceding the effective
 date of such sections six, sixteen and seventeen of this act;
   (e) subdivision (b) of section thirty-five of this  act  shall  expire
 and be deemed repealed on and after July 15, [2024] 2027;
   § 6. This act shall take effect immediately.