S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9417
 
                             I N  S E N A T E
 
                               May 15, 2024
                                ___________
 
 Introduced  by Sen. MARTINEZ -- (at request of the NYC Office of Manage-
   ment and Budget) -- read twice and ordered printed, and  when  printed
   to be committed to the Committee on Local Government
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15469-01-4
 S. 9417                             2
 
 inverse order of their maturity or, (ii) in equal proportionate amounts;
 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,
 S. 9417                             3
 
 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 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,
 S. 9417                             4
 
 including (i) the issuance of bonds or notes, to redeem notes previously
 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.