NY State Senate Bill 2023-S8941

Current Bill Status - In Senate Committee Cities 2 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 01, 2024	referred to cities 2

2023-S8941 (ACTIVE) - Details

See Assembly Version of this Bill:: A9589
Current Committee:: Senate Cities 2
Law Section:: Local Finance

2023-S8941 (ACTIVE) - Summary

Enacts the city of Dunkirk fiscal recovery act; authorizes the issuance of deficit bonds and notes not to exceed eighteen million five hundred thousand dollars for the purpose of liquidating actual deficits in its general fund, water fund, and the capital projects fund of such city; requires review of city budgets and financial reports by the state comptroller; repeals provisions after 15 years.

2023-S8941 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8941

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act relating to the city of Dunkirk fiscal recovery act; and provid-
ing for the repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would authorize the City of Dunkirk ("City") to issue bonds to
liquidate certain actual deficits, impose on the City additional fiscal
accountability requirements, and provide for the establishment of a
Special Debt Service Fund for the City to be held by the Comptroller of
the State of New York ("State Comptroller"), in order to restore the
City's fiscal integrity and improve its ability to market bonds.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would set forth the short title of the act as the
City of Dunkirk Fiscal Recovery Act ("DFRA").

Section 2 of the bill would set forth definitions for the DFRA.

Section 3 of the bill would authorize the City to issue bonds on or
before December 31, 2025 in an aggregate principal amount not to exceed
$18,500,000, for the purpose of liquidating actual deficits in its
General Fund, Water Fund, Sewer Fund, and Capital Projects Fund existing
at the close of its 2024 fiscal year.

Section 4 of the bill would provide that the financing of the deficits
described in section 3 of the bill is a purpose of the City for which
indebtedness may be incurred, the period of probable usefulness of which
would be fixed at 15 years.

Section 5 of the bill would provide that no deficit bonds may be issued
unless and until the State Comptroller has first reviewed and confirmed
the existence of the deficits described in section 3 of the bill and
certified the amount of such deficits.

Section 6 of the bill would provide that deficit bonds may not be issued
in an amount exceeding the amount of the deficits certified by the State
Comptroller pursuant to section 5 of the bill. Any amount of deficit
notes issued in excess of the certified deficit amount would need to be
either redeemed or deposited in the Special Debt Service Fund estab-
lished in section 13 of the bill.

Section 7 of the bill would require the City Treasurer to prepare quar-
terly reports comparing budgeted revenues and expenditures to actual
revenues and expenditures, along with a trial balance of general ledger
accounts. Each report would also include actions recommended by the City
Fiscal Affairs Officer to resolve any unfavorable budget variance.

Section 8 of the bill would require the State Comptroller to examine the
City's proposed budget and make recommendations thereon to the city
prior to the adoption of the budget. The City Council would be required
to adjust the proposed budget consistent with any such recommendations.


Section 9 of the bill would require the City Fiscal Affairs Officer to
prepare, along with the proposed budget, a 3-year financial plan cover-
ing the next succeeding fiscal year and the two fiscal years thereafter,
which would at a minimum contain: projected employment levels; projected
annual expenditures; reserve fund amounts; estimated annual revenues;
and the proposed use of onetime revenue sources. In addition, the finan-
cial plan would identify actions necessary to achieve and maintain long-
term fiscal stability, including, but not limited to, improved manage-
ment practices, initiatives to minimize or reduce operating expenses,
and potential shared services agreements with other municipalities. The
City Fiscal Affairs Officer would be required to update the financial
plan consistent with the adopted budget and quarterly budget reports.

Section 10 of the bill would require the City Treasurer to notify the
State Comptroller at least 15 days prior to the issuance of any bonds or
notes or entering into any installment purchase contract, and the State
Comptroller may review arid make recommendations regarding the afforda-
bility to the City of any such proposed issuance or contract.

Section 11 of the bill would authorize the private sale of deficit
bonds, any refunding of such deficit bonds, and any other bonds issued
by the City on or before December 31, 2025, subject to the approval of
the State Comptroller of the terms and conditions of such sales.

Section 12 of the bill would require all proceedings in connection with
the issuance of such deficit bonds or deficit notes to be taken in
accordance with the provisions of the Local Finance Law ("LFL");
provided, however, that the City's bond resolutions would not be subject
to (i) any mandatory or permissive referendum, (ii) LFL § 107.00 with
respect to any requirements for a down payment, and (iii) the provisions
applicable to municipalities authorized to incur debt to liquidate oper-
ating deficits under LFL § 10.10.

Section 13 of the bill would require the City, upon the issuance of any
deficit bonds or deficit notes, to establish a Special Debt Service Fund
with the State Comptroller for the purpose of paying City debt service
due or becoming due in subsequent fiscal years. The State Comptroller
would be authorized to deposit State aid payable to the City and a
portion of the City's property tax collections in the Special Debt
Service Fund as necessary to ensure sufficient moneys are available to
make scheduled debt service payments over the succeeding twelve-month
period after accounting for the City's receipt of taxes and State aid
during such period. As soon as practicable thereafter, the State Comp-
troller would be required to pay over to the City any remaining amounts
of State aid and City property taxes that are not needed to reserve for
debt service.

Section 14 of the bill would set forth the State's pledge to the holders
of any bonds, notes or other obligations issued by the City during the
effective period of the DFRA that the State will not limit, alter or
impair the rights vested in the City to fulfill the terms of any agree-
ments made with bondholders pursuant to the DFRA, and would clarify that
nothing contained in the DFRA would obligate the state to make any
payments or impose any taxes to satisfy the debt service obligations of
the City or restrict any right of the State to amend, modify, repeal or
otherwise alter LFL § 54 or any other provision relating to state aid,
taxes or fees.

Section 15 of the bill would set forth the rights of bondholders and the
State Comptroller to commence an action in Chautauqua County Supreme
Court if the City fails to comply with any provision of this bill.

Section 16 of the bill would set forth a severability clause.

Section 17 of the bill Would take effect immediately, and the DFRA would
remain in effect for a 15-year period following the first issuance of
deficit bonds or deficit notes pursuant to the DFRA.

 
JUSTIFICATION:

The fiscal health of the City of Dunkirk has significantly worsened in
recent years due to the closure of the NRG electric generation plant.
This has created a substantial imbalance between revenues and expendi-
tures, resulting in a deficit for the city.

The comprehensive measures outlined in this Act are essential for
restoring the City's fiscal health and bolstering its capacity to
attract bond investments. This legislation requires stricter budget
controls and heightened financial supervision by the State, introduces a
State-managed debt service fund to guarantee timely bondholder payments,
and allows for temporary deficit financing to safeguard critical City
services during the recovery phase aimed at achieving longterm fiscal
stability.

 
FISCAL IMPLICATIONS:

The State Comptroller's administrative responsibilities under this Act
could be accomplished within existing resources. By authorizing the City
to issue deficit bonds, this bill would help the City to restore its
fund balance while also maintaining adequate essential services.  The
bill's enhanced fiscal oversight of the City and Special Debt Service
Fund would improve the City's ability to market future bond and note
issues at a lower cost.

2023-S8941 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8941
 
                             I N  S E N A T E
 
                               April 1, 2024
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 2
 
 AN ACT relating to the city of Dunkirk fiscal recovery act; and  provid-
   ing 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. Short title. This act shall be known and may  be  cited  as
 the "city of Dunkirk fiscal recovery act".
   §  2.  Definitions. As used in this act, the following words and terms
 shall have the following meanings respectively, unless  the  text  shall
 indicate another or different meaning or intent:
   (a)  "Budget" means a current operating budget of the city prepared or
 adopted pursuant to general, special or  local  law,  being  the  annual
 budget  and estimate of expenditures to be made during a fiscal year for
 the general support and current expenses of the government of  the  city
 to  be  paid  from taxes or assessments or other current revenues of the
 city for such year.
   (b) "City" means the city of Dunkirk, in the county of Chautauqua.
   (c) "City treasurer" means the treasurer of the city.
   (d) "City council" means the city council of the city.
   (e) "City fiscal affairs officer" means the city fiscal affairs  offi-
 cer of the city.
   (f)  "City taxes" means and includes all taxes on real property levied
 and assessed by the city, based on valuation thereof and shall not  mean
 any rent, rate, fee, special assessment or other charge based on benefit
 or use.
   (g)  "Collecting  officer"  means the officer empowered to collect and
 receive city taxes.
   (h) "Deficit bonds" means the bonds authorized to be issued by section
 three of this act.
   (i) "Deficit notes" means bond anticipation  notes  issued  in  antic-
 ipation of the issuance of deficit bonds.
   (j)  "Financial  plan" means the three-year financial plan required by
 section nine of this act.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14973-02-4
 S. 8941                             2
 
   (k) "Fiscal year" means the fiscal year of the city.
   (l) "Mayor" means the mayor of the city.
   (m)  "Outstanding",  when used with respect to obligations of the city
 as of any particular date, means all obligations of the city theretofore
 issued and thereupon being issued except any obligation theretofore paid
 and discharged or for the payment of the principal of  and  interest  on
 which  money is held by or on behalf of the city, in trust solely and in
 all events only for the purpose and sufficient to pay in full the  prin-
 cipal  and  redemption  premium,  if  any, of and interest on such obli-
 gations.
   (n) "Special debt service" means, with respect to a fiscal  year,  the
 amounts  required  for  the  timely  payment of (i) all principal due or
 becoming due and payable in said year with respect to any serial  bonds,
 tax  anticipation  notes, capital notes or budget notes of the city, and
 all principal amortization for said year required by law with respect to
 bond anticipation notes or other securities of the city, and not specif-
 ically mentioned in paragraph (ii) of this subdivision, (ii) all  inter-
 est  due  or  becoming  due and payable in said year with respect to any
 serial bonds, bond anticipation notes, tax anticipation  notes,  revenue
 anticipation  notes,  capital notes, budget notes or other securities of
 the city not specifically mentioned herein, and (iii) all  sinking  fund
 contributions  required  in  said  year with respect to any sinking fund
 bonds.
   (o) "Special debt service fund" means the fund which is  held  by  the
 state  comptroller and is described and provided for in section thirteen
 of this act.
   (p) "State aid" means all aid and incentives for municipalities pursu-
 ant to section 54 of the state finance law, any successor  type  of  aid
 and any new aid appropriated by the state as local government assistance
 for the benefit of the city.
   (q)  "State  comptroller" means the comptroller of the state, pursuant
 to their authority to supervise the accounts of any  political  subdivi-
 sion of the state.
   Unless  the context specifically provides otherwise, any terms used in
 this act such as revenues, expenditures or expenses shall  be  construed
 as  such term is construed under applicable accounting principles incor-
 porated in the uniform system of accounts prescribed by the state  comp-
 troller.
   § 3. Deficit bond and deficit note issuance authorization. The city is
 hereby authorized to issue bonds, subject to the provisions of this act,
 on  or before December 31, 2025, in an aggregate principal amount not to
 exceed eighteen million  five  hundred  thousand  dollars  ($18,500,000)
 (exclusive  of  the costs and expenses incidental to the issuance of the
 bonds authorized to be issued by this section) for the  specific  object
 or  purpose  of  liquidating  actual deficits in its general fund, water
 fund, sewer fund, and the capital projects fund existing at the close of
 its 2024 fiscal year. In anticipation of the  issuance  of  such  bonds,
 deficit notes are hereby authorized to be issued.
   §  4.  Period  of probable usefulness established. It is hereby deter-
 mined that the financing of the deficits described in section  three  of
 this  act is an object or purpose of the city for which indebtedness may
 be incurred, the period of probable usefulness of which is hereby deter-
 mined to be fifteen years, computed from the date of such deficit  bonds
 or  from the date of the first deficit notes, whichever date is earlier.
 Such deficit bonds and deficit notes shall be general obligations of the
 city, to which the faith and credit of the city is pledged, and the city
 S. 8941                             3
 
 shall make an annual appropriation sufficient to pay  the  principal  of
 and interest on such obligations as the same shall become due.
   §  5.  Certification of deficit. No deficit bonds may be issued unless
 and until the state comptroller  shall  first  review  and  confirm  the
 existence  of  the  deficits  described in section three of this act, as
 well as certify the amount of the deficits. As soon as practicable after
 the effective date of this act, but in no event prior to  the  close  of
 the  city's  2024 fiscal year, the city shall prepare a report detailing
 the amount and cause of the deficit and submit to the state  comptroller
 such  report,  together  with  the independent audit report for its last
 completed fiscal year and such other  information  as  the  state  comp-
 troller  may  deem  necessary.  Within  thirty  days after receiving all
 necessary reports and information, the state comptroller shall:
   (a) perform such reviews as may be necessary;
   (b) confirm the existence and certify the amount of the deficits; and
   (c) provide notification to the city fiscal affairs officer, the  city
 treasurer, the mayor and the city council as to the existence and amount
 of any such deficits.
   § 6. Limit on amount of deficit bonds. Deficit bonds may not be issued
 in  an  amount exceeding the amount of such deficits as certified by the
 state comptroller. If the city issues deficit notes prior to a  determi-
 nation  by the state comptroller pursuant to section five of this act in
 an amount in excess of the amount of such deficits as confirmed  by  the
 state  comptroller,  the  city  shall, from funds other than proceeds of
 bonds or bond anticipation notes, either redeem such  deficit  notes  in
 the  amount by which the amount of such deficit notes exceeds the amount
 of such deficits as confirmed by the state comptroller or deposit a  sum
 equal  to  the  amount  by which such deficit notes exceed the amount of
 such deficits as confirmed by the state  comptroller  into  the  special
 debt service fund.
   § 7. Quarterly budget reports and trial balances. For each fiscal year
 during  the effective period of this act, the city treasurer shall moni-
 tor budgets of the city and, for each budget, prepare a quarterly report
 of summarized budget data depicting overall trends  of  actual  revenues
 and  budget  expenditures  for  the entire budget rather than individual
 line items. Such reports shall compare revenue estimates  and  appropri-
 ations as set forth in such budget with the actual revenues and expendi-
 tures  made  to  date.  All  quarterly reports shall be accompanied by a
 recommendation by the city fiscal  affairs  officer  setting  forth  any
 remedial  action  necessary  to  resolve any unfavorable budget variance
 including the overestimation of  revenues  and  the  underestimation  of
 appropriations,  and shall be completed within thirty days of the end of
 each quarter. The city treasurer shall also prepare,  as  part  of  such
 report,  a quarterly trial balance of general ledger accounts. The above
 quarterly budgetary  reports  and  quarterly  trial  balances  shall  be
 prepared  in  accordance  with applicable accounting principles incorpo-
 rated in the uniform system of accounts prescribed by  the  state  comp-
 troller.  These  reports  shall  be submitted to the city fiscal affairs
 officer, the mayor, the city council, the state director of the  budget,
 the  state comptroller, the chair of the assembly ways and means commit-
 tee, and the chair of the senate finance committee.
   § 8. Budget review by state comptroller. During the  effective  period
 of  this  act, the city fiscal affairs officer shall submit the proposed
 budget for the next succeeding fiscal year to the state  comptroller  no
 later  than thirty days before the date scheduled for the city council's
 vote on the adoption of the final budget or the last date on  which  the
 S. 8941                             4
 
 budget  may  be  finally  adopted,  whichever is sooner. The state comp-
 troller shall examine such proposed budget and make such recommendations
 as deemed appropriate thereon to the city prior to the adoption  of  the
 budget,  but  no  later  than ten days before the date scheduled for the
 city council's vote on the adoption of the final budget or the last date
 on which the budget must be adopted, whichever is sooner. Such recommen-
 dations shall be made after examination into the estimates  of  revenues
 and  expenditures of the city. The city council, no later than five days
 prior to the adoption of the budget, shall review any  such  recommenda-
 tions  and  make  adjustments to the proposed budget consistent with any
 recommendations made by the state comptroller.
   § 9. Multiyear financial plans. During the effective  period  of  this
 act,  the  city  fiscal  affairs  officer  shall prepare, along with the
 proposed budget for the next succeeding fiscal year, a three-year finan-
 cial plan covering the next succeeding fiscal year and  the  two  fiscal
 years  thereafter.  The  financial  plan  shall,  at  a minimum, contain
 projected employment levels, projected annual expenditures for  personal
 service, fringe benefits, non-personal services and debt service; appro-
 priate reserve fund amounts; estimated annual revenues including projec-
 tion  of  property tax rates, the value of the taxable real property and
 resulting tax levy, annual growth in  sales  tax  and  non-property  tax
 revenues;  and  the proposed use of one-time revenue sources. The finan-
 cial plan shall also identify actions necessary to achieve and  maintain
 long-term  fiscal  stability,  including,  but  not limited to, improved
 management  practices,  initiatives  to  minimize  or  reduce  operating
 expenses,  and  potential  shared services agreements with other munici-
 palities. Within thirty days following the adoption by the city  council
 of  the  budget  for  the  next  succeeding  fiscal  year  and  upon the
 completion of each quarterly budget report pursuant to section seven  of
 this  act,  the  city  fiscal affairs officer shall update the financial
 plan consistent with  such  adopted  budget  or  such  quarterly  budget
 report. Copies of the financial plan and any update shall be provided to
 the  city  treasurer, the mayor, the city council, the state director of
 the budget, the state comptroller, the chair of the  assembly  ways  and
 means committee, and the chair of the senate finance committee.
   §  10.  State  comptroller to comment on further debt issuance. During
 the effective period of this act, the city treasurer  shall  notify  the
 state  comptroller  at  least  fifteen days prior to the issuance of any
 bonds or notes or entering into any installment purchase  contract,  and
 the  state comptroller may review and make recommendations regarding the
 affordability to the city of any such proposed issuance or contract.
   § 11. Private sale of bonds authorized. To facilitate the marketing of
 (a) deficit bonds, (b) any bonds issued to refund  such  deficit  bonds,
 and (c) any other bonds to be issued on or before December 31, 2025, the
 city  may,  notwithstanding any limitation on the private sales of bonds
 provided by law and subject to the approval of the state comptroller  of
 the terms and conditions of such sales:
   (1) arrange for the underwriting of such bonds at private sale through
 negotiated fees or by sale of such bonds to an underwriter; or
   (2)  arrange  for  the  private  sale of such bonds through negotiated
 agreement, with compensation for such sales to be provided by negotiated
 agreement and/or negotiated fee, if required.
   The cost of such underwriting or private placement shall be deemed  to
 be a preliminary cost for purposes of section 11.00 of the local finance
 law.
 S. 8941                             5
 
   §  12. Exceptions to the local finance law. Except as provided in this
 act, all proceedings in connection with the  issuance  of  such  deficit
 bonds  or  deficit  notes  shall be had and taken in accordance with the
 provisions of the local finance law, provided, however, that any  resol-
 ution  or  resolutions  authorizing  the  issuance of such bonds or bond
 anticipation notes shall not be subject to (a) any mandatory or  permis-
 sive  referendum,  (b)  the  provisions  of  section 107.00 of the local
 finance law with respect to any requirements for a down payment and  (c)
 the provisions of section 10.10 of the local finance law.
   §  13. Special debt service fund. (a) Upon the issuance of any deficit
 bonds or deficit notes, the city council shall establish and  thereafter
 maintain  a special debt service fund with the state comptroller for the
 purpose of paying the special debt service due or becoming due in subse-
 quent fiscal years. Such special debt service fund shall be discontinued
 upon the expiration of the effectiveness of this act,  and  any  balance
 remaining in the special debt service fund at that time shall be paid by
 the  state  comptroller to the city treasurer for use by the city in the
 manner provided by law.
   (b) The state comptroller shall deposit and pay into the special  debt
 service  fund  any  portion of state aid as the state comptroller deter-
 mines necessary to ensure sufficient moneys are available to make sched-
 uled special debt service payments from the special  debt  service  fund
 over  the  succeeding  twelve  month period taking account of the city's
 receipt of city taxes and state aid during such twelve month period  and
 the  availability of other amounts appropriated or set aside by the city
 to make such payments. Thereafter, the state comptroller shall, as  soon
 as practicable, pay over the remainder of any such state aid to the city
 treasurer for use by the city in the manner provided by law.
   (c)  Not  later than the first day of each fiscal year beginning after
 issuance of any deficit bonds or deficit notes, the city treasurer shall
 certify to the state comptroller the percentage obtained by dividing the
 balance obtained by subtracting the amount of the appropriation for such
 year for a reserve for uncollected taxes from the total amount  of  city
 taxes levied and assessed for such year, into the total appropriation in
 the  budget of such year for special debt service, and the percentage so
 certified shall constitute the debt service percentage for  such  fiscal
 year. Immediately upon receipt of any payment during such fiscal year of
 or  on  account  of any city taxes, the city, its collecting officer and
 any agent receiving the same shall remit such payment to the state comp-
 troller. Of each sum so received, the state  comptroller  shall  deposit
 and  pay into the special debt service fund the portion thereof equal to
 the debt service percentage of the total sum, and shall deposit and  pay
 into  the  fund  such additional amounts as the state comptroller deter-
 mines necessary to ensure sufficient moneys are available to make sched-
 uled special debt service payments from the special  debt  service  fund
 over  the succeeding twelve month period taking account of the timing of
 the city's receipt of city taxes and state aid during such twelve  month
 period  and  the availability of other amounts appropriated or set aside
 by the city to make such payments.  Thereafter,  the  state  comptroller
 shall, as soon as practicable, pay over the remainder of such sum to the
 city treasurer for use by the city in the manner provided by law.
   (d)  The  moneys in the special debt service fund shall be invested in
 the manner  provided  by  section  11  of  the  general  municipal  law,
 provided,  however, that the investments shall be made for and on behalf
 of the city by the state comptroller upon instructions  from  the  chief
 fiscal  officer  of  the  city which shall be consistent with the city's
 S. 8941                             6
 
 investment policy adopted pursuant to section 39 of the general  munici-
 pal law.
   (e)  The  state comptroller shall from time to time during each fiscal
 year withdraw from the special debt service fund  all  amounts  required
 for  the  payment as the same becomes due of all special debt service of
 such fiscal year and cause the amounts so withdrawn  to  be  applied  to
 such payments as and when due.
   (f) The special debt service fund and all monies or securities therein
 or payable thereto in accordance with this section is hereby declared to
 be  city property devoted to essential governmental purposes and accord-
 ingly, shall not be applied to any purpose other than as provided herein
 and shall not be  subject  to  any  order,  judgment,  lien,  execution,
 attachment,  setoff  or  counterclaim  by any creditor of the city other
 than a creditor for whose benefit such fund  is  established  and  main-
 tained and entitled thereto under and pursuant to this act.
   §  14.  Agreement  with the state. (a) The state does hereby pledge to
 and agree with the holders of any  bonds,  notes  or  other  obligations
 issued  by  the city during the effective period of this act and secured
 by such a pledge that the state will not  limit,  alter  or  impair  the
 rights  hereby vested in the city to fulfill the terms of any agreements
 made with such holders pursuant to this act, or in any  way  impair  the
 rights  and  remedies  of  such  holders or the security for such bonds,
 notes or other obligations until such bonds, notes or other  obligations
 together  with  the  interest  thereon  and  all  costs  and expenses in
 connection with any action or proceeding by or on behalf of  such  hold-
 ers,  are  fully  paid and discharged. The city is authorized to include
 this pledge and agreement of the state in any agreement with the holders
 of such bonds, notes or other obligations. Nothing contained in this act
 shall be deemed to (i) obligate the state to make any payments or impose
 any taxes to satisfy the debt service  obligations  of  the  city,  (ii)
 restrict  any  right  of the state to amend, modify, repeal or otherwise
 alter (A) section 54 of the state finance law  or  any  other  provision
 relating  to state aid, or (B) statutes imposing or relating to taxes or
 fees, or appropriations relating thereto, or (iii) create a debt of  the
 state  within the meaning of any constitutional or statutory provisions.
 The city shall not include in any resolution, contract or agreement with
 holders of such bonds, notes or other obligations  any  provision  which
 provides  that an event of default occurs as a result of the state exer-
 cising its rights described in paragraph (ii) of this subdivision.
   (b) Any provision with respect to state aid shall be deemed  executory
 only  to  the  extent  of  moneys  available,  and no liability shall be
 incurred by the state beyond the moneys available for that purpose,  and
 any  such payment by the state comptroller of state aid shall be subject
 to annual appropriation of state aid by the state legislature.
   § 15. Rights of the state comptroller  and  bondholders.  (a)  In  the
 event that the city shall fail to comply with any provision of this act,
 and  such non-compliance shall continue for a period of 30 days, (1) the
 state comptroller acting alone, or (2) a duly  appointed  representative
 of  the  holders of at least 25 per centum in aggregate principal amount
 of (i) any series of deficit bonds or deficit notes, (ii) any series  of
 bonds issued to refund such deficit bonds or deficit notes, or (iii) any
 other  series  of notes or bonds issued by the city during the effective
 period of this act, by instrument or instruments filed in the office  of
 the  clerk  of  Chautauqua county and proved or acknowledged in the same
 manner as a deed to be recorded, may  bring  an  action  or  commence  a
 proceeding  in  accordance  with the civil practice law and rules to (A)
 S. 8941                             7
 
 require the city to carry out any of its obligations under this  act  or
 (B)  enjoin  any acts or things which may be unlawful or in violation of
 the obligations imposed on the city under this  act.  In  addition,  the
 duly  appointed  representative of the bondholders of any such series of
 notes or bonds may bring an action or commence a proceeding  in  accord-
 ance  with the civil practice law and rules to enforce the rights of the
 holders of such series of notes or bonds.
   (b) The supreme court in the county of Chautauqua shall have jurisdic-
 tion of any action or proceeding by the state comptroller or the  repre-
 sentative of such bondholders.
   § 16. Severability clause. If any clause, sentence, paragraph, section
 or  part  of this act shall be adjudged by any court of competent juris-
 diction to be invalid, such judgment shall not affect, impair or invali-
 date the remainder thereof, but shall be confined in  its  operation  to
 the clause, sentence, paragraph, section or part involved in the contro-
 versy in which such judgment shall have been rendered. The provisions of
 this  act shall be liberally construed to assist the effectuation of the
 public purposes furthered hereby.
   § 17. This act shall take effect immediately; and shall remain in full
 force and effect until the fifteenth anniversary of the  date  of  first
 issuance  of  deficit  bonds or deficit notes pursuant to this act, when
 upon such date the provisions of this act shall be deemed repealed;  and
 provided,  however, that the state comptroller shall notify the legisla-
 tive bill drafting commission upon the occurrence of this act  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 furth-
 erance of effectuating the provisions of section 44 of  the  legislative
 law and section 70-b of the public officers law.

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Senate Bill S8941

Sponsored By

Current Bill Status - In Senate Committee Cities 2 Committee

2023-S8941 (ACTIVE) - Details

2023-S8941 (ACTIVE) - Summary

2023-S8941 (ACTIVE) - Sponsor Memo

2023-S8941 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8941

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Sponsored By

George M. Borrello

Current Bill Status - In Senate Committee Cities 2 Committee

2023-S8941 (ACTIVE) - Details

2023-S8941 (ACTIVE) - Summary

2023-S8941 (ACTIVE) - Sponsor Memo

2023-S8941 (ACTIVE) - Bill Text download pdf

Comments