S T A T E   O F   N E W   Y O R K
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                                   417

                      Seventh Extraordinary Session

                            I N  S E N A T E

                              June 28, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

AN ACT to amend the local finance law and 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, 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 97 of the  laws  of  2006,  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
[nine]  TWELVE,  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.
  S 2. Paragraph b of section 53.00 of the local finance law, as amended
by chapter 97 of the laws of 2006, 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.
                                                           LBD11920-01-9

S. 417                              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, 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 deter-
mined 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 redemption. 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, paya-
ble 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,  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  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

S. 417                              3

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,  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.
  S  3.  The  opening  paragraph  of paragraph a of section 54.90 of the
local finance law, as amended by chapter 97 of  the  laws  of  2006,  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 [nine] TWELVE, 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  specified  at  issu-
ance)  exceed  ten  percent of the limit prescribed by section 104.00 of
this article.
  S 4. Subdivision 9 of paragraph d  of  section  107.00  of  the  local
finance law, as amended by chapter 97 of the laws of 2006, is amended to
read as follows:
  9.  Notwithstanding  any  other provision of law, the financing by any
municipality, prior to July fifteenth, two thousand  [nine]  TWELVE,  of
any  object  or purpose which has a period of probable usefulness deter-
mined by law, by the issuance of any bonds and notes, 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.
  S 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 97 of the laws of 2006, are  amended  to
read as follows:
  (a) section six, sixteen and seventeen of this act shall expire and be
deemed  repealed  on  and after July 15, [2009] 2012, 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, [2009] 2012;
  S 6. This act shall take effect immediately.