STATE OF NEW YORK
________________________________________________________________________
7929
IN SENATE
March 9, 2018
___________
Introduced by Sen. RANZENHOFER -- (at request of the New York State
Homes and Community Renewal) -- read twice and ordered printed, and
when printed to be committed to the Committee on Corporations, Author-
ities and Commissions
AN ACT to amend the public authorities law, in relation to the powers of
the state of New York municipal bond bank agency
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "MBBA Technical Corrections Act of 2018".
3 § 2. Subdivisions 2 and 10 of section 2432 of the public authorities
4 law, as amended by section 2 of part N of chapter 56 of the laws of
5 2010, are amended to read as follows:
6 (2) "Bonds" and "Notes". The bonds and notes, including any special
7 program bonds, special school purpose bonds, recovery act bonds, [and]
8 public safety communications bonds, and any bonds and notes issued after
9 the effective date of the MBBA technical corrections act of two thousand
10 eighteen, respectively issued by the agency pursuant to this title.
11 Bonds and notes shall not include any tax lien collateralized securities
12 issued pursuant to this title.
13 (10) "Debt Service Reserve Fund Requirement". With respect to any debt
14 service reserve fund created by section twenty-four hundred thirty-nine
15 of this title relating to bonds other than special program bonds or
16 special school purpose bonds or special school deficit program bonds or
17 recovery act bonds or public safety communications bonds or bonds or
18 notes issued after the effective date of the MBBA technical corrections
19 act of two thousand eighteen, as of any particular date of computation,
20 an amount of money equal to the greatest of the respective amounts, for
21 the then current or any succeeding calendar year, of annual debt service
22 payments required to be made to the agency on all municipal bonds
23 purchased with the proceeds of bonds which bonds are secured by such
24 debt service reserve fund, such annual debt service payments for any
25 calendar year being an amount of money equal to the aggregate of (a) all
26 interest payable during such calendar year on all municipal bonds
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14351-01-8
S. 7929 2
1 purchased by the agency and then outstanding on said date of computation
2 which are secured by such debt service reserve fund, plus (b) the prin-
3 cipal amount of all municipal bonds purchased by the agency and then
4 outstanding on said date of computation which mature during such calen-
5 dar year and are secured by such debt service reserve fund; and with
6 respect to any debt service reserve fund created by section twenty-four
7 hundred thirty-nine of this title relating to an issue or issues of
8 special program bonds or special school purpose bonds or special school
9 deficit program bonds or recovery act bonds or public safety communi-
10 cations bonds, such amount as shall be determined by the agency.
11 § 3. Subdivision 1 of section 2435 of the public authorities law, as
12 amended by section 4 of part N of chapter 56 of the laws of 2010, is
13 amended to read as follows:
14 1. The agency may purchase, and contract to purchase, municipal bonds
15 from municipalities at such price or prices, upon such terms and condi-
16 tions and in such manner, not inconsistent with the provisions of the
17 local finance law, as the agency shall deem advisable; provided, howev-
18 er, that the average interest rate payable on all municipal bonds (taken
19 as a group) purchased with the proceeds of an issue of bonds shall equal
20 or exceed the interest rate on such issue of bonds. The agency shall not
21 purchase the municipal bonds of any municipality if (i) the aggregate
22 principal amount thereof, together with the aggregate principal balances
23 of the municipal bonds of such municipality then outstanding and held by
24 the agency, exceed an amount equal to ten percent of the aggregate prin-
25 cipal amount of the statutory authorization at the time for the issuance
26 of bonds and notes, as provided in section twenty-four hundred thirty-
27 eight of this title, and (ii) the aggregate principal amount thereof
28 exceeds an amount equal to fifty percent of the aggregate principal
29 amount of all municipal bonds proposed to be so purchased at the time;
30 provided, however, that this sentence shall not apply to local ARRA
31 bonds or local public safety communications bonds or bonds or notes
32 issued after the effective date of the MBBA technical corrections act of
33 two thousand eighteen.
34 § 4. Subdivision 5 of section 2437 of the public authorities law, as
35 amended by section 6 of part N of chapter 56 of the laws of 2010, is
36 amended to read as follows:
37 (5) Any bonds or notes of the agency other than special program bonds,
38 special school purpose bonds, special school deficit program bonds,
39 recovery act bonds [or], public safety communications bonds or bonds or
40 notes issued after the effective date of the MBBA technical corrections
41 act of two thousand eighteen shall be sold at public sale and from time
42 to time upon such terms and at such prices as may be determined by the
43 agency, and the agency may pay all expenses, premiums and commissions
44 which it may deem necessary or advantageous in connection with the issu-
45 ance and sale thereof. Any special program bonds, special school purpose
46 bonds, special school deficit program bonds, recovery act bonds [or],
47 public safety communications bonds or bonds or notes issued after the
48 effective date of the MBBA technical corrections act of two thousand
49 eighteen shall be sold at public or private sale and from time to time
50 upon such terms and at such prices as may be determined by the agency,
51 and the agency may pay all expenses, premiums and commissions which it
52 may deem necessary or advantageous in connection with the issuance and
53 sale thereof provided, however, that special program bonds relating to a
54 special program agreement entered for the purpose described in paragraph
55 (b) of subdivision one of section twenty-four hundred thirty-five-a of
56 this title shall be sold on or before June thirtieth, two thousand one.
S. 7929 3
1 No special program bonds, special school purpose bonds, special school
2 deficit program bonds, or recovery act bonds, or public safety communi-
3 cations bonds or bonds or notes issued after the effective date of the
4 MBBA technical corrections act of two thousand eighteen of the agency
5 may be sold by the agency at private sale, however, unless such sale and
6 the terms thereof have been approved in writing by (a) the comptroller,
7 where such sale is not to the comptroller, or (b) the director of the
8 budget, where such sale is to the comptroller.
9 § 5. Subdivision 1 of section 2438 of the public authorities law, as
10 amended by chapter 355 of the laws of 2016, is amended to read as
11 follows:
12 (1) The agency shall not issue bonds and notes in an aggregate princi-
13 pal amount at any one time outstanding exceeding one billion dollars,
14 excluding tax lien collateralized securities, special school purpose
15 bonds, special school deficit program bonds, special program bonds
16 issued to finance the reconstruction, rehabilitation or renovation of an
17 educational facility pursuant to the provisions of subdivision (b) of
18 section sixteen of chapter six hundred five of the laws of two thousand,
19 special program bonds issued to finance the cost of a project for
20 design, reconstruction or rehabilitation of a school building pursuant
21 to the provisions of section fourteen of the city of Syracuse and the
22 board of education of the city school district of the city of Syracuse
23 cooperative school reconstruction act, special program bonds issued to
24 finance the cost of a project for design, construction, reconstruction
25 or rehabilitation of a school building pursuant to the provisions of
26 section thirteen of the Yonkers city school district joint schools
27 construction and modernization act, recovery act bonds, public safety
28 communications bonds, bonds or notes issued after the effective date of
29 the MBBA technical act of two thousand eighteen and bonds and notes
30 issued to refund outstanding bonds and notes.
31 § 6. This act shall take effect immediately.