S T A T E   O F   N E W   Y O R K
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    S. 5784                                                  A. 7984

                       2015-2016 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              June 3, 2015
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment

IN  ASSEMBLY  -- Introduced by M. of A. THIELE, PALUMBO -- read once and
  referred to the Committee on Local Governments

AN ACT to amend the local finance law, in relation  to  refunding  bonds
  issued by a municipality authorized to create a community preservation
  fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 2 and 4 of paragraph a and  subdivision  3  of
paragraph  f of section 90.00 of the local finance law, subdivision 2 of
paragraph a as added by section 8 of part F of chapter 383 of  the  laws
of  2001, subdivision 4 of paragraph a as amended by chapter 1034 of the
laws of 1960 and subdivision 3 of paragraph f as amended by chapter  711
of the laws of 1943, are amended to read as follows:
  2.  Notwithstanding  the  provisions  of subdivision one of this para-
graph[,]: (A) bonds issued by a school district prior to December  first
two  thousand  one,  or prior to thirty days after the effective date of
this subdivision, whichever is  later,  for  the  purpose  of  financing
facilities  which  were  eligible  for  building aid pursuant to section
thirty-six hundred two of the education  law,  and  for  which  the  aid
apportionments  payable  in  two thousand two--two thousand three and/or
two thousand three--two thousand four school years for approved expendi-
tures for debt service are subsequently  reduced  as  a  result  of  the
application  of  assumed amortization to unpaid principal outstanding as
of July first, two thousand two, may be refunded and the refunding bonds
may be sold at either public or private  sale  in  accordance  with  the
provisions of section 90.10 of this title; provided, however, the school
district  need  not comply with: (i) subparagraph (a) of subdivision two

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11306-03-5
              

S. 5784                             2                            A. 7984

of paragraph b of section 90.10 of this title; and (ii) if the bonds  to
be refunded are to be redeemed or paid on the same date as the refunding
bonds  are  issued,  the  school  district  need  not  comply  with  the
provisions  of section 90.10 of this title relating to the escrow of the
proceeds of the sale of the refunding bonds; AND (B) BONDS ISSUED  BY  A
MUNICIPALITY AUTHORIZED TO CREATE A COMMUNITY PRESERVATION FUND PURSUANT
TO  SUBDIVISION  TWO OF SECTION SIXTY-FOUR-E OF THE TOWN LAW AND FOR THE
PURPOSE OF FINANCING COMMUNITY  PRESERVATION  WHICH  WERE  ELIGIBLE  FOR
FUNDING  PURSUANT TO SUBDIVISIONS THREE AND FOUR OF SECTION SIXTY-FOUR-E
OF THE TOWN LAW MAY BE REFUNDED AND THE REFUNDING BONDS MAY BE  SOLD  AT
EITHER  PUBLIC  OR  PRIVATE  SALE  IN  ACCORDANCE WITH THE PROVISIONS OF
SECTION 90.10 OF THIS TITLE; PROVIDED, HOWEVER,  THE  MUNICIPALITY  NEED
NOT  COMPLY WITH: (I) SUBPARAGRAPH (A) OF SUBDIVISION TWO OF PARAGRAPH B
OF SECTION 90.10 OF THIS TITLE; AND (II) IF THE BONDS TO BE REFUNDED ARE
TO BE REDEEMED OR PAID ON THE SAME  DATE  AS  THE  REFUNDING  BONDS  ARE
ISSUED,  THE MUNICIPALITY NEED NOT COMPLY WITH THE PROVISIONS OF SECTION
90.10 OF THIS TITLE RELATING TO THE ESCROW OF THE PROCEEDS OF  THE  SALE
OF THE REFUNDING BONDS.
  4.  If  a budgetary appropriation has been made for the payment of the
principal on bonds, such maturity shall not be included in  a  refunding
bond  issue;  PROVIDED,  HOWEVER,  THIS  SUBDIVISION  SHALL NOT APPLY TO
REFUNDING BONDS ISSUED BY A MUNICIPALITY AUTHORIZED TO CREATE A COMMUNI-
TY PRESERVATION FUND PURSUANT TO SUBDIVISION TWO OF SECTION SIXTY-FOUR-E
OF THE TOWN LAW AND FOR THE PURPOSE OF FINANCING COMMUNITY  PRESERVATION
WHICH  WERE ELIGIBLE FOR FUNDING PURSUANT TO SUBDIVISIONS THREE AND FOUR
OF SECTION SIXTY-FOUR-E OF THE TOWN LAW.
  3. If the bonds to be refunded are bonds which were issued on or after
January first, nineteen hundred thirty-nine, other than bonds issued  to
redeem  notes, certificates or other evidences of temporary indebtedness
issued prior to January first, nineteen hundred thirty-nine,  in  antic-
ipation  of  such  bonds,  a statement of the maximum period of probable
usefulness, at the time of the issuance of the bonds to be  refunded  OR
AS  MAY  BE  PROVIDED  BY RESOLUTION OR RESOLUTION SUBJECT TO PERMISSIVE
REFERENDUM, BY THE GOVERNING BODY OF  THE  MUNICIPALITY  AND  CONSISTENT
WITH SECTION 11.00 OF THIS ARTICLE OR SUCH OTHER GENERAL OR SPECIAL LAW,
of the object or purpose for which such bonds were issued.
  S  2.  Subdivision  2  of  paragraph  b  of section 90.10 of the local
finance law is amended by adding a  new  subparagraph  (f)  to  read  as
follows:
  (F)  NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (A) OF THIS SUBDI-
VISION, A MUNICIPALITY MAY ALSO ISSUE REFUNDING BONDS TO REFUND BONDS IF
THE BONDS WERE ISSUED BY A MUNICIPALITY AUTHORIZED TO CREATE A COMMUNITY
PRESERVATION FUND PURSUANT TO SUBDIVISION TWO OF SECTION SIXTY-FOUR-E OF
THE TOWN LAW AND FOR THE PURPOSE  OF  FINANCING  COMMUNITY  PRESERVATION
WHICH  WERE ELIGIBLE FOR FUNDING PURSUANT TO SUBDIVISIONS THREE AND FOUR
OF SECTION SIXTY-FOUR-E OF THE TOWN LAW.
  S 3. Subdivisions 4 and 5 of paragraph e of section 90.10 of the local
finance law, subdivision 4 as added by chapter 264 of the laws  of  1977
and  subdivision  5  as  amended by chapter 201 of the laws of 1978, are
amended to read as follows:
  4. A statement of the maximum period or periods of probable usefulness
permitted by law at the time of the issuance of the bonds to be refunded
for the object or purpose or objects or purposes for which such bonds to
be refunded were issued.  NOTWITHSTANDING THE ABOVE, THE PERIOD OR PERI-
ODS OF PROBABLE USEFULNESS FOR BONDS ISSUED BY A MUNICIPALITY AUTHORIZED
TO CREATE A COMMUNITY PRESERVATION FUND PURSUANT TO SUBDIVISION  TWO  OF

S. 5784                             3                            A. 7984

SECTION  SIXTY-FOUR-E  OF  THE TOWN LAW AND FOR THE PURPOSE OF FINANCING
COMMUNITY PRESERVATION WHICH  WERE  ELIGIBLE  FOR  FUNDING  PURSUANT  TO
SUBDIVISIONS  THREE  AND  FOUR  OF  SECTION SIXTY-FOUR-E OF THE TOWN LAW
SHALL NOT BE LIMITED TO THE PERIOD OF PROBABLE USEFULNESS AT THE TIME OF
ISSUANCE  OF  THE BOND TO BE REFUNDED BUT RATHER THE STATEMENT OF PERIOD
OR PERIODS OF PROBABLE  USEFULNESS  REQUIRED  IN  THIS  SUBDIVISION  MAY
INCLUDE  AN  EXTENSION OF SUCH PERIOD OF TIME SET FORTH IN SECTION 11.00
OF THIS ARTICLE OR SUCH OTHER GENERAL OR SPECIAL LAW.
  5. The financial plan for the refunding proposed, showing the  sources
and  amounts  of  all  moneys required to accomplish such refunding, and
except where such refunding bonds are issued by the city of New York  OR
MUNICIPALITY  pursuant  to subparagraph (b) OR (F) of subdivision two of
paragraph b of this section, RESPECTIVELY, an estimate  of  the  present
value of the total debt service savings anticipated, computed in accord-
ance  with  subparagraph  (a)  of subdivision two of paragraph b of this
section.
  S 4. Paragraph g of section 90.10 of the local finance law, as amended
by chapter 201 of the laws of 1978, is amended to read as follows:
  g. Except where such refunding bonds are issued by  the  city  of  New
York  pursuant  to subparagraph (b) of subdivision two of paragraph b of
this section OR ISSUED PURSUANT TO SUBPARAGRAPH (F) OF  SUBDIVISION  TWO
OF  PARAGRAPH B OF THIS SECTION WHERE SUCH REFUNDING BONDS ARE ISSUED BY
A MUNICIPALITY, no refunding bonds shall  be  issued  pursuant  to  this
section  unless  the chief fiscal officer of the issuer shall have first
filed with the finance board a certificate, approved by the state  comp-
troller,  which  shall be final and conclusive upon all parties, setting
forth the present value of the total debt service savings to the  issuer
resulting  from  the issuance of the refunding bonds computed in accord-
ance with the provisions of subparagraph (a) of subdivision two of para-
graph b of this section, except that the actual amount, rather  than  an
estimate,  of  the  amount  of accrued interest to be paid on such bonds
shall be used in determining the effective interest  cost  thereof.  The
certificate  shall  be in the form and shall contain such information as
shall be prescribed by the state comptroller. The certificate shall  not
be  approved  until ten days after the filing of such certificate in the
office of the state comptroller.
  S 5. Clause (b) of subdivision 21 of paragraph a of section  11.00  of
the local finance law, as amended by chapter 837 of the laws of 1945, is
amended to read as follows:
  (b) The financing of the acquisition of land, permanent rights in land
or  temporary  easements  in  land  incidental to a capital improvement,
inclusive of any administrative or other expenditures arising  therefrom
or  related  thereto,  if such acquisition and expenditures are financed
from a fund into which are paid the proceeds of the  sale  of  bonds  or
bond  anticipation notes issued in anticipation of such bonds and out of
which the cost of such acquisition and such expenditures are paid, thir-
ty years. NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, THE ACQUI-
SITION OF LAND OR PERMANENT RIGHTS IN LAND  AND  THE  FINANCING  OF  THE
ACQUISITION  AS  SET  FORTH IN THIS SUBDIVISION MADE PURSUANT TO SECTION
SIXTY-FOUR-E OF THE TOWN LAW SHALL HAVE A PERIOD OF PROBABLE  USEFULNESS
OF  FIFTY  YEARS  AND TO THE EXTENT THAT THE ORIGINAL PERIOD OF PROBABLE
USEFULNESS WAS SET BY RESOLUTION AND/OR RESOLUTION SUBJECT TO PERMISSIVE
REFERENDUM, SUCH MUNICIPALITY MAY AMEND THE PERIOD OF  PROBABLE  USEFUL-
NESS  BY  RESOLUTION  OF  THE  GOVERNING  BODY  IN  ACCORDANCE  WITH THE
PROVISIONS OF THIS CHAPTER.
  S 6. This act shall take effect immediately.