Bill Text: NY S08428 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to expenditures and temporary transfers of reserve funds for expenses related to a state disaster emergency (Part A); relates to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies (Part B); relates to the forbearance of residential mortgage payments for qualified mortgagors for a period of up to 180 days with the option to extend for an additional 180 days (Part C); relates to hearings conducted on a felony complaint during a state disaster emergency (Part D).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-06-17 - SIGNED CHAP.126 [S08428 Detail]
Download: New_York-2019-S08428-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8428 IN SENATE May 28, 2020 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend a chapter of the laws of 2020 amending the local finance law relating to bond anticipation notes issued in calendar years 2015 through 2021, as proposed in legislative bills numbers S. 8417 and A. 10492, in relation to expenditures and temporary transfer of reserve funds for expenses related to state disaster emergency declared pursu- ant to executive order 202 of 2020 and authorizing the extension of repayment of inter-fund advances made for expenses related to state disaster emergency declared pursuant to executive order 202 of 2020 (Part A); to amend the public service law, in relation to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies; and to amend a chapter of the laws of 2020 amending the public service law, relating to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies, as proposed in legislative bills numbers S.8113-A and A.10521, in relation to the effectiveness thereof (Part B); to amend the banking law, in relation to the forbearance of residential mortgage payments (Part C); and to amend the criminal procedure law, in relation to hearings conducted on a felony complaint during a state disaster emergency (Part D) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law legislation providing for impor- 2 tant provisions relating to a state disaster emergency. Each component 3 is wholly contained within a Part identified as Parts A through D. The 4 effective date for each particular provision contained within such Part 5 is set forth in the last section of such Part. Any provision in any 6 section contained within a Part, including the effective date of the 7 Part, which makes reference to a section "of this act", when used in 8 connection with that particular component, shall be deemed to mean and 9 refer to the corresponding section of the Part in which it is found. 10 Section three of this act sets forth the general effective date of this 11 act. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16563-02-0S. 8428 2 1 PART A 2 Section 1. The title of a chapter of the laws of 2020 amending the 3 local finance law relating to bond anticipation notes issued in calendar 4 years 2015 through 2021, as proposed in legislative bills number S. 8417 5 and A. 10492, is amended to read as follows: 6 to amend the local finance law, in relation to bond anticipation notes 7 issued in calendar years 2015 through 2021; to authorize the expenditure 8 and temporary transfer of reserve funds for expenses related to [COVID-919] the state disaster emergency declared pursuant to executive order 10 202 of 2020; and to authorize the extension of repayment of inter-fund 11 advances made for expenses related to [COVID-19] the state disaster 12 emergency declared pursuant to executive order 202 of 2020 13 § 2. Section 2 of a chapter of the laws of 2020 amending the local 14 finance law relating to bond anticipation notes issued in calendar years 15 2015 through 2021, as proposed in legislative bills numbers S. 8417 and 16 A. 10492, is amended to read as follows: 17 § 2. Notwithstanding any provision of sections 6-c or 6-g of the 18 general municipal law or section 3651 of the education law to the 19 contrary, the governing board of a town, village, county, city, water 20 improvement district, sewer improvement district, fire district or 21 school district, by resolution which shall not be subject to referendum 22 requirements, may authorize expenditures from capital reserve funds for 23 capital costs attributable to the [COVID-19 pandemic] state disaster 24 emergency declared pursuant to executive order 202 of 2020. 25 § 3. Section 3 of a chapter of the laws of 2020 amending the local 26 finance law relating to bond anticipation notes issued in calendar years 27 2015 through 2021, as proposed in legislative bills numbers S. 8417 and 28 A. 10492, is amended to read as follows: 29 § 3. Notwithstanding any provision of the general municipal law, the 30 town law or the education law to the contrary, the governing board of a 31 town, village, county, city, water improvement district, sewer improve- 32 ment district, fire district or school district, by resolution which 33 shall not be subject to referendum requirements, if any, may authorize 34 the temporary transfer of moneys from reserve funds to pay for operating 35 costs attributable to the state disaster emergency declared pursuant to 36 executive order 202 of 2020 or other costs attributable to the [COVID-1937pandemic] state disaster emergency declared pursuant to executive order 38 202 of 2020, provided, that the reserve fund from which the funds were 39 temporarily transferred shall be reimbursed from the fund to which the 40 transfer was made over a period of not more than five fiscal years, 41 starting with the fiscal year following the transfer. At least twenty 42 percent of the moneys temporarily transferred shall be reimbursed each 43 fiscal year. Such reimbursement shall include an additional amount 44 reasonably estimated to be the amount that would have been earned on the 45 investment of the transferred moneys had they been retained in the capi- 46 tal reserve fund. 47 § 4. Section 4 of a chapter of the laws of 2020 amending the local 48 finance law relating to bond anticipation notes issued in calendar years 49 2015 through 2021, as proposed in legislative bills numbers S. 8417 and 50 A. 10492, is amended to read as follows: 51 § 4. Notwithstanding the provisions of subdivision 3 of section 9-a of 52 the general municipal law, for inter-fund advances made pursuant to such 53 subdivision for costs attributable to the [COVID-19 pandemic] state 54 disaster emergency declared pursuant to executive order 202 of 2020, 55 repayment of moneys to the fund from which they were advanced shall beS. 8428 3 1 made by close of the fiscal year next succeeding the fiscal year in 2 which such advance was made. 3 § 5. This act shall take effect on the same date and in the same 4 manner as a chapter of the laws of 2020 amending the local finance law 5 relating to bond anticipation notes issued in calendar years 2015 6 through 2021, as proposed in legislative bills numbers S. 8417 and A. 7 10492, takes effect. 8 PART B 9 Section 1. Subdivisions 9, 10 and 12 of section 91 of the public 10 service law, as added by a chapter of the laws of 2020 amending the 11 public service law, relating to issuing a moratorium on utility termi- 12 nation of services during periods of pandemics and/or state of emergen- 13 cies, as proposed in legislative bills numbers S.8113-A and A.10521, are 14 amended to read as follows: 15 9. No telephone corporation shall terminate or disconnect a residen- 16 tial service customer for the non-payment of an overdue charge for the 17 duration of the state disaster emergency declared pursuant to executive 18 order two hundred two of two thousand twenty (hereinafter "the COVID-19 19 state of emergency"). Telephone corporations shall have a duty to 20 restore service, to the extent not already required under this chapter, 21 [to] at the request of any residential customer within forty-eight hours 22 if such service has been terminated during the pendency of the COVID-19 23 state of emergency and disconnection of such service was due to non-pay- 24 ment of an overdue charge. 25 10. [After] For a period of one hundred eighty days after the COVID-19 26 state of emergency is lifted or expires, no telephone corporation shall 27 terminate or disconnect the service of a residential customer account 28 because of defaulted deferred payment agreements or arrears then owed to 29 the telephone corporation when such customer has experienced a change in 30 financial circumstances due to the COVID-19 state of emergency, as 31 defined by the department. The telephone corporation shall provide such 32 residential customer with the right to enter into, or restructure, a 33 deferred payment agreement without the requirement of a down payment, 34 late fees, or penalties[, as such is provided for in article two of this35chapter]. 36 12. Implementation of the provisions of this section shall not prohib- 37 it a telephone corporation from recovering lost or deferred revenues 38 after the lifting or expiration of the COVID-19 state of emergency, 39 pursuant to such means for recovery as are provided for in this chapter, 40 and by means not inconsistent with any of the provisions of this 41 article. Nothing in this section shall prohibit a telephone corporation 42 from disconnecting service at the request of a customer. Nothing in this 43 section shall prohibit a telephone corporation from disconnecting 44 service when it is necessary to protect the health and safety of custom- 45 ers and the public. 46 § 2. Section 5 of a chapter of the laws of 2020 amending the public 47 service law, relating to issuing a moratorium on utility termination of 48 services during periods of pandemics and/or state of emergencies, as 49 proposed in legislative bills numbers S.8113-A and A.10521, is amended 50 to read as follows: 51 § 5. This act shall take effect immediately and shall expire March 31, 52 2021 when upon such date the provisions of this act shall be deemed 53 repealed.S. 8428 4 1 § 3. This act shall take effect on the same date and in the same 2 manner as a chapter of the laws of 2020 amending the public service law, 3 relating to issuing a moratorium on utility termination of services 4 during periods of pandemics and/or state of emergencies, as proposed in 5 legislative bills numbers S.8113-A and A.10521, takes effect; provided 6 however, that the amendments to subdivisions 9, 10 and 12 of section 91 7 of the public service law made by section one of this act shall not 8 affect the repeal of such subdivisions and shall be deemed to be 9 repealed therewith. 10 PART C 11 Section 1. Section 9-x of the banking law, as added by a chapter of 12 the laws of 2020, amending the banking law relating to the forbearance 13 of residential mortgage payments, as proposed in legislative bills 14 numbers S. 8243-C and A. 10351-B, is amended to read as follows: 15 § 9-x. Mortgage forbearance. 1. As used in this section, the following 16 terms shall have the following meanings: 17 (a) "Covered period" means March 7, 2020 until the date on which none 18 of the provisions that closed or otherwise restricted public or private 19 businesses or places of public accommodation, or required postponement 20 or cancellation of all non-essential gatherings of individuals of any 21 size for any reason in Executive Orders 202.3, 202.4, 202.5, 202.6, 22 202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive 23 Orders 202.28 and 202.31 and as further extended by any future Executive 24 Order, issued in response to the COVID-19 pandemic continue to apply in 25 the county of the qualified mortgagor's residence; 26 (b) "qualified mortgagor" means an individual [who resides in New27York] (i) whose [principal dwelling] primary residence is located in New 28 York and is encumbered by a home loan pursuant to paragraph (a) of 29 subdivision six of section thirteen hundred four of the real property 30 actions and proceedings law or whose [principal dwelling] primary resi- 31 dence is located in New York and is a co-operative unit whose shares are 32 encumbered by any loan otherwise meeting the requirements of a home loan 33 under paragraph (a) of subdivision six of section thirteen hundred four 34 of the real property actions and proceedings law, from or serviced by a 35 regulated institution; and (ii) who demonstrates financial hardship as a 36 result of COVID-19 during the covered period; 37 (c) "regulated institution" means any New York regulated banking 38 organization as defined in this chapter and any New York regulated mort- 39 gage servicer entity subject to supervision by the department; and 40 (d) "trial period plan" means an agreement whereby the mortgagor is 41 required to make trial payments in full and on-time in order to be 42 considered for a permanent loan modification. 43 2. Notwithstanding any other provision of law, New York regulated 44 institutions shall: 45 (a) make applications for forbearance of any payment due on a residen- 46 tial mortgage of a property located in New York widely available to any 47 qualified mortgagor who, during the covered period, is in arrears or on 48 a trial period plan, or who has applied for loss mitigation [and demon-49strates financial hardship during the covered period]; and 50 (b) grant such forbearance of all monthly payments due with respect to 51 the mortgage secured by the qualified mortgagor's primary residence in 52 New York for a period of up to one hundred eighty days to any such qual- 53 ified mortgagor [who is in arrears or on a trial period plan, or who has54applied for loss mitigation and demonstrates financial hardship], withS. 8428 5 1 the option to extend the forbearance of such monthly payments for up to 2 an additional one hundred eighty days provided that this extension is 3 subject to the mortgagor demonstrating continued financial hardship. If 4 any qualified mortgagor has already received a forbearance pursuant to 5 executive order 202.9 of two thousand twenty, the time of such forbear- 6 ance shall be considered as part of the requirement of this section to 7 provide a forbearance of up to one hundred eighty days, and any exten- 8 sion thereof pursuant to this section. 9 (c) Such forbearance may be backdated to March seventh, two thousand 10 twenty, provided that the maximum length of the forbearance may be no 11 longer than one hundred eighty days and any extension thereof pursuant 12 to this section. 13 3. Notwithstanding any other provision of law, any mortgage forbear- 14 ance granted by a regulated institution pursuant to executive order 15 number 202.9 of two thousand twenty, this section, or [any other law,16rule or regulation to the] 3 NYCRR Part 119 to a qualified mortgagor as 17 a result of financial hardship [during the covered period] shall be 18 subject to the following provisions: 19 (a) the mortgagor shall have the option to extend the term of the loan 20 for the length of the period of forbearance. The regulated institution 21 shall [waive interest on the principal for the term of the forbearance22and waive any late fees accumulated as a result of the forbearance] not 23 charge additional interest or any late fees or penalties on the forborne 24 payment; or 25 (b) the mortgagor shall have the option to have the arrears accumu- 26 lated during the forbearance period payable on a monthly basis for the 27 remaining term of the loan without being subject to penalties or late 28 fees incurred as a result of the forbearance; or 29 (c) the mortgagor shall have the option to negotiate a loan modifica- 30 tion or any other option that meets the changed circumstances of the 31 qualified mortgagor; or 32 (d) if [the mortgagor is unable to make mortgage payments due to mort-33gagors' demonstrated hardship and] the mortgagor and regulated institu- 34 tion cannot reasonably agree on a mutually acceptable loan modification, 35 the [mortgagor] regulated institution shall [have the option] offer to 36 defer arrears accumulated during the forbearance period as a non-inter- 37 est bearing balloon [payment] loan payable at the maturity of the loan 38 [consistent with the safety and soundness of such regulated institu-39tion], or at the time the loan is satisfied through a refinance or sale 40 of the property. Any late fees accumulated as a result of the forbear- 41 ance shall be waived. 42 [(d)] (e) The exercising of options provided for in paragraph (a), (b) 43 [or], (c) or (d) of this subdivision by a qualified mortgagor shall not 44 be reported negatively to any credit bureau by any regulated institu- 45 tion. 46 4. Notwithstanding any other provision of law, adherence with this 47 section shall be a condition precedent to commencing a foreclosure 48 action stemming from missed payments which would have otherwise been 49 subject to this section. A defendant may raise the violation of this 50 section as a defense to a foreclosure action commenced on the defend- 51 ant's property when such action is based on missed payments that would 52 have otherwise been subject to this section. 53 5. Notwithstanding anything to the contrary in this section, this 54 section shall not apply to, and does not affect any mortgage loans made, 55 insured, purchased or securitized by any agency or instrumentality of 56 the United States, any government sponsored enterprise, or a federalS. 8428 6 1 home loan bank, or a corporate governmental agency of the state consti- 2 tuted as a political subdivision and public benefit corporation, or the 3 rights and obligations of any lender, issuer, servicer or trustee of 4 such obligations, including servicers for the Government National Mort- 5 gage Association. 6 6. Notwithstanding any other provision of law or of this section, the 7 obligation to grant the forbearance relief required by this section 8 shall be subject to the regulated institution having sufficient capital 9 and liquidity to meet its obligations and to operate in a safe and sound 10 manner. Any regulated institution that determines that it is not able to 11 offer relief pursuant to this section to any qualified mortgagor must 12 notify the department within five business days of making such determi- 13 nation. Any such notice filed with the department shall include informa- 14 tion about the qualified mortgagor, the reason the regulated institution 15 determined that it was unable to offer any relief pursuant to this 16 section, information about the regulated institution's financial condi- 17 tion supporting the regulated institution's determination, and any other 18 information required by the department. At the same time that the regu- 19 lated institution provides notice to the department, it shall advise the 20 qualified mortgagor that the application for relief was denied and 21 provide a statement that the applicant may file a complaint with the New 22 York state department of financial services at 1-800-342-3736 or 23 http://www.dfs.ny.gov if the applicant believes the application was 24 wrongly denied. 25 § 2. This act shall take effect on the same date and in the same 26 manner as a chapter of the laws of 2020, amending the banking law relat- 27 ing to the forbearance of residential mortgage payments, as proposed in 28 legislative bills numbers S. 8243-C and A. 10351-B, takes effect. 29 PART D 30 Section 1. Section 180.65 of the criminal procedure law, as added by a 31 chapter of the laws of 2020, amending the criminal procedure law relat- 32 ing to conducting hearings on a felony complaint during a state disaster 33 emergency, as proposed in legislative bills numbers S. 8414 and A. 34 10493, is amended to read as follows: 35 § 180.65 Hearing upon felony complaint; emergency provision during 36 disaster emergency. 37 During the period of the COVID-19 state disaster emergency, as 38 declared pursuant to executive order number two hundred two of two thou- 39 sand twenty and extensions thereof and article two-B of the executive 40 law, the following additional provisions shall apply to the conduct of a 41 hearing on a felony complaint pursuant to this article: 42 1. The appearance of any party and any witness at such hearing may be 43 by electronic appearance through an independent audio-visual system, as 44 such terms are defined in section 182.10 of this title, where the court 45 finds upon its own motion after hearing from the parties and any such 46 witness, either in person or by electronic appearance, that due to the 47 person's circumstances and such disaster emergency a personal appearance 48 by such party or witness would be an unreasonable hardship to such 49 person or witness or create an unreasonable health risk to the public, 50 court staff or anyone else involved in the proceeding. 51 2. At any such hearing on the felony complaint, the judge must be able 52 to hear and see the image of each witness clearly [though] through the 53 independent audio-visual system and such sound and visual image shall be 54 similar to the sound and image the judge would hear and see if theS. 8428 7 1 witness were present together with the judge testifying in the court- 2 room. Documents, photographs and the like offered at the hearing may be 3 exchanged among the parties by electronic means. A stenographic tran- 4 scription or appropriate audio recording of the proceedings shall be 5 maintained, and the live testimony received by electronic appearance, 6 and other electronic appearances where practicable, shall be video 7 recorded by the court, and a copy provided to the people and the 8 defense. 9 3. The authority for an electronic appearance pursuant to this section 10 shall be considered sufficient means to enable the court to conduct a 11 hearing on a felony complaint within the meaning of section 180.80 of 12 this article. 13 § 2. This act shall take effect on the same date and in the same 14 manner as a chapter of the laws of 2020, amending the criminal procedure 15 law relating to conducting hearings on a felony complaint during a state 16 disaster emergency, as proposed in legislative bills numbers S. 8414 and 17 A. 10493, takes effect, provided, however, that the amendments made to 18 section 180.65 of the criminal procedure law made by section one of this 19 act shall not affect the repeal of such section and shall be deemed 20 repealed therewith. 21 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 22 sion, section or part of this act shall be adjudged by any court of 23 competent jurisdiction to be invalid, such judgment shall not affect, 24 impair, or invalidate the remainder thereof, but shall be confined in 25 its operation to the clause, sentence, paragraph, subdivision, section 26 or part thereof directly involved in the controversy in which such judg- 27 ment shall have been rendered. It is hereby declared to be the intent of 28 the legislature that this act would have been enacted even if such 29 invalid provisions had not been included herein. 30 § 3. This act shall take effect immediately provided, however, that 31 the applicable effective date of Parts A through D of this act shall be 32 as specifically set forth in the last section of such Parts.
