NY State Senate Bill 2017-S8948

Senate Bill S8948

2017-2018 Legislative Session

Relates to creating the Puerto Rican relief account

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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
Jun 07, 2018	referred to rules

2017-S8948 (ACTIVE) - Details

See Assembly Version of this Bill:: A11199
Current Committee:: Senate Rules
Law Section:: State Finance Law
Laws Affected:: Add §96, St Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7959, A2329
2021-2022: S2219, A3509, A9420
2023-2024: S742, A922

2017-S8948 (ACTIVE) - Summary

Relates to creating the Puerto Rican relief account which shall consist of all recovery and relief funds provided by the federal government to the Commonwealth of Puerto Rico under the Bipartisan Budget Act of 2018.

2017-S8948 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8948

SPONSOR: SEPULVEDA
 
TITLE OF BILL:  An act to amend the state finance law, in relation to
creating the Puerto Rican relief account; and providing for the repeal
of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA BILL:

This bill would establish a New York State Puerto Rico Relief Account

 
SUMMARY OF SPECIFIC PROVISIONS:

Authorizes the Office of the NYS Comptroller to set up an account to
manage any recovery and relief funds provided by the federal government
to the government of Puerto Rico under the Bipartisan Budget Act of
2018.

The account would be set up at the request of the Puerto Rican govern-
ment.

The funds in the account shall be managed as all other state pension
funds are managed with return on investments being delivered to the
government of Puerto Rico.

The NYS Comptroller is authorized to deduct and administration fee for
the management of such funds.

The government of Puerto Rico shall notify the OSC of their intentions
to end this arrangement no later than 180 days from when all funds
should be returned to Puerto Rico.

The OSC should use all its technical and financial expertise to assist
the investment and growth of funds provided to Puerto Rico under the
federal Bipartisan Budget Act of 2018.

The authority of this act shall expire within five years and can be
renewed by act of legislature.

This act shall take effect immediately.

 
JUSTIFICATION:

The initiative unveiled by the Latino Caucus authorizes the Office of
the New York State Comptroller to lend its financial investment exper-
tise to the government of Puerto Rico by setting up a Puerto Rico Relief
Account. Earlier this year, Congress authorized and the President signed
into law the Bipartisan Budget Act of 2018, which provides Puerto Rico
with some $38 billion for recovery and relief efforts needed due to the
devastation by Hurricane Maria.

We need to continue to push for policies that will help Puerto Ricans
rebuild their lives and their homes in the short and long term. This
measure will help Puerto Ricans, whether they are still on the island or
whether they have relocated to New York, by providing those displaced
with the assistance they need to move from transitional to permanent
housing and by giving Puerto Rico access to tools, information, and
resources to improve their financial situation.

The NYS Comptroller's office manages the third largest pension system in
the United States and had a return on investment of 11.35 percent last
year for a total worth of over $206.9 billion. The financial and invest-
ment experts working at OSC can help Puerto Rico by providing their
incredible talents to the island's government by helping Puerto Rico
invest and manage the recovery money during its pending expenditure on
rebuilding and relief efforts. OSC can help stretch these federal
dollars in a manner no other entity can and with no risk to the State's
pension system or New York.

New York must step in and assist the Puerto Rican people in this tremen-
dous time of need. We cannot stand by while 2,300 families risk losing
the emergency housing they so desperately need.

 
LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

None to the state

 
EFFECTIVE DATE:
Immediate

2017-S8948 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8948
 
                             I N  S E N A T E
 
                               June 7, 2018
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the state finance law, in relation to creating the Puer-
   to  Rican  relief  account;  and  providing  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. The state finance law is amended by adding a new section 96
 to read as follows:
   §  96. PUERTO RICAN RELIEF ACCOUNT. 1.  THERE IS HEREBY ESTABLISHED AT
 THE REQUEST OF THE COMMONWEALTH OF PUERTO RICO AND IN THE CUSTODY OF THE
 COMPTROLLER A SPECIAL ACCOUNT TO BE KNOWN AS THE  "PUERTO  RICAN  RELIEF
 ACCOUNT".
   2. THE SOURCES OF FUNDS SHALL CONSIST OF ALL RECOVERY AND RELIEF FUNDS
 PROVIDED  BY  THE  FEDERAL GOVERNMENT TO THE COMMONWEALTH OF PUERTO RICO
 UNDER THE BIPARTISAN BUDGET ACT OF 2018.
   3. (A) THE COMPTROLLER SHALL INVEST SUCH FUNDS IN SECURITIES IN  WHICH
 HE IS AUTHORIZED BY LAW TO INVEST THE FUNDS OF THE STATE, EXCEPT THAT HE
 MAY  INVEST  IN  OBLIGATIONS  CONSISTING OF NOTES, BONDS, DEBENTURES, OR
 EQUIPMENT TRUST CERTIFICATES ISSUED UNDER AN INDENTURE,  WHICH  ARE  THE
 DIRECT  OBLIGATIONS  OF,  OR IN THE CASE OF EQUIPMENT TRUST CERTIFICATES
 ARE SECURED BY DIRECT OBLIGATIONS OF, A RAILROAD  OR  INDUSTRIAL  CORPO-
 RATION,   OR  A  CORPORATION  ENGAGED  DIRECTLY  AND  PRIMARILY  IN  THE
 PRODUCTION, TRANSPORTATION, DISTRIBUTION, OR SALE OF ELECTRICITY OR GAS,
 OR THE OPERATION OF TELEPHONE OR TELEGRAPH SYSTEMS OR WATERWORKS, OR  IN
 SOME  COMBINATION OF THEM; PROVIDED THE OBLIGOR CORPORATION IS ONE WHICH
 IS INCORPORATED UNDER THE LAWS OF THE UNITED STATES, OR ANY STATE THERE-
 OF, OR OF THE DISTRICT OF COLUMBIA, AND SAID OBLIGATIONS SHALL BE  RATED
 AT  THE TIME OF PURCHASE WITHIN THE THREE HIGHEST CLASSIFICATIONS ESTAB-
 LISHED BY AT LEAST TWO STANDARD RATING SERVICES. THE MAXIMUM AMOUNT THAT
 THE COMPTROLLER MAY INVEST IN SUCH OBLIGATIONS SHALL NOT  EXCEED  THIRTY
 PER  CENTUM OF THE ASSETS OF SUCH ACCOUNT; AND PROVIDED FURTHER THAT NOT
 MORE THAN TWO AND ONE-HALF PER CENTUM OF  THE  ASSETS  OF  SUCH  ACCOUNT
 SHALL BE INVESTED IN THE OBLIGATIONS OF ANY ONE CORPORATION OF THE HIGH-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15970-01-8

 S. 8948                             2

 EST CLASSIFICATION AND SUBSIDIARY OR SUBSIDIARIES THEREOF, THAT NOT MORE
 THAN  TWO  PER CENTUM OF THE ASSETS OF SUCH ACCOUNT SHALL BE INVESTED IN
 THE OBLIGATIONS OF ANY ONE CORPORATION OF THE SECOND HIGHEST CLASSIFICA-
 TION  AND SUBSIDIARY OR SUBSIDIARIES THEREOF, THAT NOT MORE THAN ONE AND
 ONE-HALF PER CENTUM OF SUCH ACCOUNT SHALL BE INVESTED IN THE OBLIGATIONS
 OF ANY ONE CORPORATION OF THE THIRD HIGHEST CLASSIFICATION  AND  SUBSID-
 IARY  OR  SUBSIDIARIES  THEREOF.  HE  SHALL,  HOWEVER, BE SUBJECT TO ALL
 TERMS, CONDITIONS, LIMITATIONS AND RESTRICTIONS IMPOSED BY LAW UPON  THE
 MAKING OF SUCH INVESTMENTS. THE COMPTROLLER SHALL HAVE FULL POWER:
   (I) TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER OR DISPOSE OF ANY OF THE
 SECURITIES  OR INVESTMENTS, IN WHICH ANY ASSETS OF SUCH ACCOUNT SHALL BE
 INVESTED, INCLUDING THE PROCEEDS OF  SUCH  INVESTMENTS  AND  ANY  MONIES
 BELONGING TO SUCH ACCOUNT, AND
   (II)  IN  HIS  OR  HER  NAME  AS  TRUSTEE, TO FORECLOSE MORTGAGES UPON
 DEFAULT OR TO TAKE TITLE TO REAL PROPERTY IN SUCH  PROCEEDINGS  IN  LIEU
 THEREOF AND TO LEASE AND SELL REAL PROPERTY SO ACQUIRED.
   (B)  ALL  RETURNS  ON  ANY  INVESTMENTS MADE BY THE COMPTROLLER OF ANY
 FUNDS FROM SUCH ACCOUNT SHALL BE DEPOSITED WITHIN SUCH ACCOUNT  FOR  THE
 SOLE BENEFIT OF THE COMMONWEALTH OF PUERTO RICO.
   (C)  THE  COMPTROLLER  ANNUALLY  SHALL  CREDIT TO SUCH ACCOUNT REGULAR
 INTEREST ON THE MEAN AMOUNT THEREIN FOR THE PRECEDING YEAR.
   (D) THE COMPTROLLER IS AUTHORIZED TO  DEDUCT  ANY  NECESSARY  ADMINIS-
 TRATION FEES FOR THE MANAGEMENT OF SUCH ACCOUNT.
   4.  THE  COMMONWEALTH  OF  PUERTO RICO SHALL NOTIFY THE COMPTROLLER OF
 THEIR INTENTION TO TERMINATE SUCH ACCOUNT NO LATER THAN THE ONE  HUNDRED
 EIGHTIETH DAY PRIOR TO THE DATE SUCH COMMONWEALTH REQUIRES THE RETURN OF
 ALL FUNDS FROM SUCH ACCOUNT.
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed 5 years after such date.

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