Bill Text: NY S02408 | 2025-2026 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-17 - REFERRED TO FINANCE [S02408 Detail]

Download: New_York-2025-S02408-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2408

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 17, 2025
                                       ___________

        Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Finance

        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:

     1    Section  1.  The  state finance law is amended by adding a new section
     2  96-a to read as follows:
     3    § 96-a. Puerto Rican relief account. 1.  There is  hereby  established
     4  at  the request of the Commonwealth of Puerto Rico and in the custody of
     5  the comptroller a special account to  be  known  as  the  "Puerto  Rican
     6  relief account".
     7    2. The sources of funds shall consist of all recovery and relief funds
     8  provided  by  the  federal government to the Commonwealth of Puerto Rico
     9  under the Bipartisan Budget Act of 2018.
    10    3. (a) The comptroller shall invest such funds in securities in  which
    11  such  comptroller is authorized by law to invest the funds of the state,
    12  except that such comptroller may invest  in  obligations  consisting  of
    13  notes,  bonds,  debentures, or equipment trust certificates issued under
    14  an indenture, which are the direct obligations of, or  in  the  case  of
    15  equipment  trust  certificates  are  secured by direct obligations of, a
    16  railroad or industrial corporation, or a  corporation  engaged  directly
    17  and  primarily  in the production, transportation, distribution, or sale
    18  of electricity or gas,  or  the  operation  of  telephone  or  telegraph
    19  systems  or  waterworks,  or  in  some combination of them; provided the
    20  obligor corporation is one which is incorporated under the laws  of  the
    21  United States, or any state thereof, or of the District of Columbia, and
    22  said obligations shall be rated at the time of purchase within the three
    23  highest  classifications  established  by  at  least two standard rating
    24  services. The maximum amount that the comptroller  may  invest  in  such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06390-01-5
        S. 2408                             2

     1  obligations  shall  not  exceed  thirty per centum of the assets of such
     2  account; and provided further that not more than two  and  one-half  per
     3  centum  of  the  assets  of  such account shall be invested in the obli-
     4  gations of any one corporation of the highest classification and subsid-
     5  iary  or  subsidiaries thereof, that not more than two per centum of the
     6  assets of such account shall be invested in the obligations of  any  one
     7  corporation  of  the  second  highest  classification  and subsidiary or
     8  subsidiaries thereof, that not more than one and one-half per centum  of
     9  such account shall be invested in the obligations of any one corporation
    10  of the third highest classification and subsidiary or subsidiaries ther-
    11  eof.  The  comptroller  shall,  however, be subject to all terms, condi-
    12  tions, limitations and restrictions imposed by law upon  the  making  of
    13  such investments. The comptroller shall have full power:
    14    (i) To hold, purchase, sell, assign, transfer or dispose of any of the
    15  securities  or investments, in which any assets of such account shall be
    16  invested, including the proceeds of  such  investments  and  any  monies
    17  belonging to such account, and
    18    (ii)  In  such  comptroller's  name as trustee, to foreclose mortgages
    19  upon default or to take title to real property in  such  proceedings  in
    20  lieu thereof and to lease and sell real property so acquired.
    21    (b)  All  returns  on  any  investments made by the comptroller of any
    22  funds from such account shall be deposited within such account  for  the
    23  sole benefit of the Commonwealth of Puerto Rico.
    24    (c)  The  comptroller  annually  shall  credit to such account regular
    25  interest on the mean amount therein for the preceding year.
    26    (d) The comptroller is authorized to  deduct  any  necessary  adminis-
    27  tration fees for the management of such account.
    28    4.  The  Commonwealth  of  Puerto Rico shall notify the comptroller of
    29  their intention to terminate such account no later than the one  hundred
    30  eightieth day prior to the date such commonwealth requires the return of
    31  all funds from such account.
    32    §  2.  This  act shall take effect immediately and shall expire and be
    33  deemed repealed 5 years after such date.