Draft Legislation Establishing A Mount Vernon Fiscal Stability Board

Legislative Bill Drafting Commission IN SENATE____________________________________________________
09769-01-1 Senate introducer's signature

The senators whose names are circled below wish to join me in the sponsorship
of this proposal:
s15 Addabbo s17 Felder s07 Kaplan s58 O'Mara s10 Sanders
S. --------
s52 Akshar s59 Gallivan s26 Kavanagh s62 Ortt s23 Savino
Senate
s36 Bailey s05 Gaughran s63 Kennedy s01 Palumbo s32 Sepulveda
--------
s30 Benjamin s12 Gianaris s28 Krueger s21 Parker s41 Serino
s34 Biaggi s22 Gounardes s24 Lanza s19 Persaud s29 Serrano
s57 Borrello s47 Griffo s11 Liu s13 Ramos s39 Skoufis
IN SENATE--Introduced by Sen
s04 Boyle s40 Harckham s50 Mannion s61 Rath s16 Stavisky
s44 Breslin s54 Helming s42 Martucci s38 Reichlin- s45 Stec
s25 Brisport s46 Hinchey s02 Mattera Melnick s35 Stewart-
s08 Brooks s27 Hoylman s53 May s48 Ritchie Cousins
--read twice and ordered printed,
s55 Brouk s31 Jackson s37 Mayer s33 Rivera s49 Tedisco
and when printed to be committed
s14 Comrie s43 Jordan s20 Myrie s60 Ryan s06 Thomas
to the Committee on
s56 Cooney s09 Kaminsky s51 Oberacker s18 Salazar s03 Weik
-------- A.
Assembly IN ASSEMBLY__________________________________________________
Assembly introducer's signature
-------- The Members of the Assembly whose names are circled below wish to join me in the
multi-sponsorship of this proposal:
IN ASSEMBLY--Introduced by M. of A. a049 Abbate a063 Cusick a075 Gottfried a020 Miller, M. a121 Salka
a092 Abinanti a045 Cymbrowitz a021 Griffin a051 Mitaynes a111 Santabarbara
a031 Anderson a018 Darling a100 Gunther a015 Montesano a090 Sayegh
a122 Angelino a053 Davila a139 Hawley a145 Morinello a099 Schmitt
with M. of A. as co-sponsors a107 Ashby a072 De La Rosa a083 Heastie a065 Niou a076 Seawright
a035 Aubry a003 DeStefano a028 Hevesi a037 Nolan a084 Septimo
a120 Barclay a070 Dickens a128 Hunter a144 Norris a016 Sillitti
a030 Barnwell a054 Dilan a029 Hyndman a069 O'Donnell a052 Simon
a106 Barrett a081 Dinowitz a079 Jackson a091 Otis a114 Simpson
--read once and referred to the a060 Barron a147 DiPietro a104 Jacobson a132 Palmesano a005 Smith
Committee on a082 Benedetto a009 Durso a011 Jean-Pierre a088 Paulin a118 Smullen
a042 Bichotte a048 Eichenstein a134 Jensen a141 Peoples- a022 Solages
Hermelyn a004 Englebright a115 Jones Stokes a110 Steck
*PUBAUTLA* a117 Blankenbush a074 Epstein a077 Joyner a058 Perry a010 Stern
(Establishes the city of Mount a098 Brabenec a109 Fahy a125 Kelles a023 Pheffer a127 Stirpe
Vernon fiscal stability authority a026 Braunstein a061 Fall a040 Kim Amato a102 Tague
act) a138 Bronson a080 Fernandez a105 Lalor a086 Pichardo a064 Tannousis
a012 Brown a008 Fitzpatrick a013 Lavine a089 Pretlow a071 Taylor
--------
a093 Burdick a057 Forrest a097 Lawler a073 Quart a001 Thiele
a085 Burgos a124 Friend a126 Lemondes a019 Ra a033 Vanel
Pub Aut. Mt Vernon fiscal stabile
a142 Burke a046 Frontus a135 Lunsford a038 Rajkumar a116 Walczyk
a119 Buttenschon a095 Galef a123 Lupardo a006 Ramos a055 Walker
AN ACT
a094 Byrne a050 Gallagher a129 Magnarelli a062 Reilly a143 Wallace
a133 Byrnes a131 Gallahan a036 Mamdani a087 Reyes a112 Walsh
to amend the public authorities law
a103 Cahill a007 Gandolfo a130 Manktelow a043 Richardson a041 Weinstein
and the tax law, in relation to
a044 Carroll a002 Giglio, J.A. a108 McDonald a078 Rivera, J. a024 Weprin
establishing the "city of Mount
a136 Clark a148 Giglio, J.M. a014 McDonough a149 Rivera, J.D. a059 Williams
Vernon fiscal stability authority
a047 Colton a066 Glick a146 McMahon a068 Rodriguez a113 Woerner
act"
a140 Conrad a034 Gonzalez- a137 Meeks a027 Rosenthal, D. a096 Zebrowski
a032 Cook Rojas a017 Mikulin a067 Rosenthal, L. a056 Zinerman
__________________________________
The People of the State of New
a039 Cruz a150 Goodell a101 Miller, B. a025 Rozic
York, represented in Senate
____________________________________
and
Assembly, do enact as follows:
______________________________
1) Single House Bill (introduced and printed separately in either or
both houses). Uni-Bill (introduced simultaneously in both houses and printed
as one bill. Senate and Assembly introducer sign the same copy of the bill).
2) Circle names of co-sponsors and return to introduction clerk with 2
signed copies of bill and: in Assembly 2 copies of memorandum in support, in
Senate 4 copies of memorandum in support (single house); or 4 signed copies
of bill and 6 copies of memorandum in support (uni-bill).
LBDC 01/27/21
02/16/21 2 09769-01-1
1 Section 1. Sections 4000, 4001 and 4002 of the public authorities law,
2 as renumbered by chapter 182 of the laws of 2005, are renumbered
3 sections 4500, 4501 and 4502.
4 § 2. Article 10-D of the public authorities law is amended by adding a
5 new title 4 to read as follows:
6 _______
TITLE 4
7 _______________________________________
MOUNT VERNON FISCAL STABILITY AUTHORITY
8 __________________________
Section 4050. Short title.
9 _____________________________________________________________
4051. Legislative declaration of need for state intervention.
10 __________________
4052. Definitions.
11 ______________________________________________________
4053. City of Mount Vernon fiscal stability authority.
12 ______________________________________
4054. Administration of the authority.
13 ______________________________________
4055. General powers of the authority.
14 ______________________________________________________________
4056. Assistance to the authority; employees of the authority.
15 ________________________________________________________________
4057. City fiscal year two thousand twenty-two budget modifica-
16 __________________________________
tion and four-year financial plan.
17 ___________________________
4058. City financial plans.
18 __________________________________
4059. Efficiency incentive grants.
19 ______________________
4060. Advisory period.
20 _____________________
4061. Control period.
21 ____________________________
4062. Additional provisions.
22 _______________________________________________________________
4063. Declaration of need for financing assistance to the city.
23 _________________________________________________________
4064. Bonds, notes or other obligations of the authority.
24 ______________________________
4065. Remedies of bondholders.
25 ________________________________________________________________
4066. Intercept of city tax revenues, school district tax reven-
26 ___________________________
ues and state aid revenues.
27 _________________________________
4067. Resources of the authority.
28 _______________________________
4068. Agreement with the state.
02/16/21 3 09769-01-1
1 ________________________________
4069. Agreement with the county.
2 ______________________________
4070. Agreement with the city.
3 ________________________________________________________________
4071. Bonds, notes or other obligations legal for investment and
4 ________
deposit.
5 ____________________
4072. Tax exemption.
6 ____________________________________
4073. Actions against the authority.
7 _____________
4074. Audits.
8 ________________________________________
4075. Effect of inconsistent provisions.
9 _________________________________
4076. Separability; construction.
10 ______________________________________________________________________
§ 4050. Short title. This title shall be known and may be cited as the
11 ______________________________________________________
"city of Mount Vernon fiscal stability authority act".
12 ______________________________________________________________________
§ 4051. Legislative declaration of need for state intervention. The
13 ________________________________________________________________________
legislature hereby finds and declares that the city of Mount Vernon is
14 ________________________________________________________________________
facing a severe fiscal crisis, and that the crisis cannot be resolved
15 ________________________________________________________________________
absent assistance from the state. The legislature finds that, among
16 ________________________________________________________________________
other things, the comptroller of the city of Mount Vernon has failed to
17 ________________________________________________________________________
perform their duties as they pertain to managing the city's finances.
18 ________________________________________________________________________
The legislature further finds and declares that maintenance of a
19 ________________________________________________________________________
balanced budget by the city of Mount Vernon is a matter of overriding
20 ________________________________________________________________________
state concern, requiring the legislature to intervene to provide a means
21 ________________________________________________________________________
whereby: (a) the long-term fiscal stability of the city will be assured,
22 ________________________________________________________________________
(b) the confidence of investors in the city's bonds, notes and other
23 ________________________________________________________________________
obligations is preserved, and (c) the economy of both the region and the
24 ______________________________
state as a whole is protected.
25 ______________________________________________________________________
§ 4052. Definitions. For the purposes of this title, unless the
26 ___________________________
context otherwise requires:
27 ______________________________________________________________________
1. "Advisory period" means that period no earlier than January first,
28 ________________________________________________________________________
two thousand twenty-four, after which the authority has determined that:
02/16/21 4 09769-01-1
1 ________________________________________________________________________
(a) for each of the three immediately preceding city fiscal years, the
2 ________________________________________________________________________
city has adopted and adhered to budgets covering all expenditures, other
3 ________________________________________________________________________
than capital items, the results of which did not show a deficit, without
4 ________________________________________________________________________
the use of any authority assistance, as provided for under section four
5 ________________________________________________________________________
thousand fifty-eight of this title, when reported in accordance with
6 ________________________________________________________________________
generally accepted accounting principles; and (b) the comptroller and
7 ________________________________________________________________________
the state comptroller jointly certify that securities were sold by the
8 ________________________________________________________________________
city during the immediately preceding city fiscal year in the general
9 ________________________________________________________________________
public market, and that there is a substantial likelihood that such
10 ________________________________________________________________________
securities can be sold by the city in the general public market from
11 ________________________________________________________________________
such date through the end of the next succeeding city fiscal year in
12 ________________________________________________________________________
amounts that will satisfy substantially all of the capital and cash flow
13 ________________________________________________________________________
requirements of the city during that period in accordance with the
14 ________________________________________________________________________
financial plan then in existence. The joint certification made by the
15 ________________________________________________________________________
comptroller and the state comptroller shall be based on their separate
16 ________________________________________________________________________
written determinations which may take into account any relevant report
17 ________________________________________________________________________
and opinion from an independent expert in the marketing of securities
18 ________________________________________________________________________
selected by the authority, as well as any other relevant information
19 ________________________________________________________________________
available to the comptrollers. Once begun, an advisory period shall
20 ________________________________________________________________________
continue through December thirty-first, two thousand fifty-one, unless a
21 __________________________
control period is imposed.
22 ______________________________________________________________________
2. "Authority" or "city of Mount Vernon fiscal stability authority" or
23 ___________________________________________________________________
"MVFSA" means the public benefit corporation created by this title.
24 ______________________________________________________________________
3. "MVFSA assistance" means: (a) the amount of debt service savings in
25 ________________________________________________________________________
a given city fiscal year generated from the proceeds of bonds, notes or
26 ________________________________________________________________________
other obligations made available to or for the benefit of the city or
27 ________________________________________________________________________
any covered organization as determined by the authority; or (b) the
28 ________________________________________________________________________
proceeds of any deficit financing authorized by the authority, or some
02/16/21 5 09769-01-1
1 ________________________________________________________________________
combination thereof pursuant to the provisions of section four thousand
2 ________________________________________________________________________
fifty-eight of this title. Such assistance shall be made available only
3 ________________________________________________________________________
upon a declaration of need by the city pursuant to section four thousand
4 ______________________________________________________________
sixty-three of this title and the approval of the MVFSA board.
5 ______________________________________________________________________
4. "Bonds, notes or other obligations" means bonds, notes and other
6 _______________________________________________________________
evidences of indebtedness, issued or incurred by the authority.
7 ______________________________________________________________________
5. "Chief fiscal officer" means the chief fiscal officer of the city
8 ____________________________________________________
as defined in section 2.00 of the local finance law.
9 _________________________________________
6. "City" means the city of Mount Vernon.
10 ______________________________________________________________________
7. "City charter" means the city government law of the city of Mount
11 ___________________
Vernon, as amended.
12 _____________________________________________________________________
8. "City housing authority" means the Mount Vernon housing authority.
13 ______________________________________________________________________
9. "City school district" means the Mount Vernon city school district.
14 ______________________________________________________________________
10. "City tax revenues" means the portion of the county's "net
15 ________________________________________________________________________
collections", as defined in section twelve hundred sixty-two of the tax
16 ________________________________________________________________________
law, payable to the city under the agreement between the county and the
17 ________________________________________________________________________
city entered into pursuant to subdivision (c) of section twelve hundred
18 ________________________________________________________________________
sixty-two of the tax law. In the event that the city imposes sales and
19 ________________________________________________________________________
compensating use taxes pursuant to section twelve hundred ten of the tax
20 ________________________________________________________________________
law, "city tax revenues" shall also include net collections from such
21 ___________
city taxes.
22 ____________________________________________________________________
11. "Comptroller" means the comptroller of the city of Mount Vernon.
23 ______________________________________________________________________
12. "Control period" means that period of time from the effective date
24 ________________________________________________________________________
of this title, continuing until the authority determines that conditions
25 ________________________________________________________________________
have been met as provided in subdivision one of this section and the
26 ________________________________________________________________________
city qualifies for the onset of an advisory period. A control period may
27 ________________________________________________________________________
be reimposed as determined by the authority in accordance with section
28 ______________________________________
four thousand sixty-one of this title.
02/16/21 6 09769-01-1
1 _________________________________________________________________
13. "Council" means the city council of the city of Mount Vernon.
2 _____________________________________________
14. "County" means the county of Westchester.
3 ______________________________________________________________________
15. "Covered organization" means the city school district, any joint
4 ________________________________________________________________________
schools construction board of the city, and the city housing authority
5 ________________________________________________________________________
and any governmental agency, public authority or public benefit corpo-
6 ________________________________________________________________________
ration which receives or may receive moneys directly, indirectly or
7 ________________________________________________________________________
contingently from the city, but excluding the authority and (a) any
8 ________________________________________________________________________
other governmental agency, public authority or public benefit corpo-
9 ________________________________________________________________________
ration specifically exempted from the provisions of this title by order
10 ________________________________________________________________________
of the authority upon application of such governmental agency, public
11 ________________________________________________________________________
authority, or public benefit corporation to the authority or on the
12 ________________________________________________________________________
authority's own motion upon a finding by the authority that such
13 ________________________________________________________________________
exemption does not materially affect the ability of the city to adopt
14 ________________________________________________________________________
and maintain a budget pursuant to the provisions of this title, or (b)
15 ________________________________________________________________________
any state public authority defined in section two hundred one of the
16 ________________________________________________________________________
civil service law, unless specifically named above; provided, however,
17 ________________________________________________________________________
that the authority may terminate any exemption granted by order of the
18 ________________________________________________________________________
authority pursuant to this subdivision upon a determination that the
19 ________________________________________________________________________
circumstances upon which such exemption was granted are no longer appli-
20 ______
cable.
21 ______________________________________________________________________
16. "Director of the budget" means the director of the budget of the
22 ______
state.
23 ______________________________________________________________________
17. "Financeable costs" or "costs" means costs to finance (a) amounts
24 ________________________________________________________________________
necessary to accomplish a refunding, repayment or restructuring of a
25 ________________________________________________________________________
portion of the city's outstanding indebtedness or that of any covered
26 ________________________________________________________________________
organization; (b) cash flow needs of the city or any covered organiza-
27 ________________________________________________________________________
tion; (c) any object or purpose of the city or any covered organization,
28 ________________________________________________________________________
for which a period of probable usefulness is prescribed in section 11.00
02/16/21 7 09769-01-1
1 ________________________________________________________________________
of the local finance law, including the costs of any preliminary
2 ________________________________________________________________________
studies, surveys, maps, plans, estimates and hearings; (d) amounts
3 ________________________________________________________________________
necessary to finance a portion of the operating costs of the city or any
4 ________________________________________________________________________
covered organization as provided in section four thousand fifty-eight of
5 ________________________________________________________________________
this title, to the extent approved by the authority; or (e) incidental
6 ________________________________________________________________________
costs, including, but not limited to, legal fees, printing or engraving,
7 ________________________________________________________________________
publication of notices, taking of title, apportionment of costs, and
8 ________________________________________________________________________
capitalized interest, insurance premiums, costs related to items author-
9 ________________________________________________________________________
ized in subdivisions seven through nine of section four thousand fifty-
10 ________________________________________________________________________
five of this title or any underwriting or other costs incurred in
11 ________________________________________________________________________
connection with the financing thereof; provided however that, to the
12 ________________________________________________________________________
maximum extent practicable, all financeable costs shall not adversely
13 ________________________________________________________________________
affect the requirements of subdivision two of section four thousand
14 __________________________
seventy-two of this title.
15 ______________________________________________________________________
18. "Financial plan" means the financial plan of the city and the
16 ________________________________________________________________________
covered organizations to be developed pursuant to section four thousand
17 __________________________
fifty-eight of this title.
18 ______________________________________________________________________
19. "Major operating funds" means any funds and current balances
19 ________________________________________________________________________
designated to be disbursed for the operation of the city's governmental
20 ________________________________________________________________________
functions, including but not limited to (a) any funds that are allocated
21 ________________________________________________________________________
or disbursed as general funds; (b) any funds that are allocated or
22 ________________________________________________________________________
disbursed for the operation of the city's various departments, agencies
23 ________________________________________________________________________
and instrumentalities; (c) any funds that are allocated or disbursed for
24 ________________________________________________________________________
the operation of the city council; (d) any funds that are allocated or
25 ________________________________________________________________________
disbursed for the operation of the city school district; and (e) any
26 ________________________________________________________________________
funds of the city or a covered organization from time to time as desig-
27 _______________________
nated by the authority.
28 ________________________________________________________
20. "Mayor" means the mayor of the city of Mount Vernon.
02/16/21 8 09769-01-1
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21. "Presiding officer" means the presiding officer of the council
2 _____________________________________________
elected pursuant to the rules of the council.
3 ______________________________________________________________________
22. "Projected gap" means the excess, if any, of annual aggregate
4 ________________________________________________________________________
projected expenditures over annual aggregate projected revenues for the
5 ________________________________________________________________________
major operating funds in each year of a financial plan as determined by
6 ________________________________________________________________________
the city and certified by the authority. For purposes of determining the
7 ________________________________________________________________________
projected gap in each fiscal year, annual aggregate projected revenues
8 ________________________________________________________________________
shall not include the amount of MVFSA assistance expected to be avail-
9 __________________________
able for such fiscal year.
10 ______________________________________________________________________
23. "Revenues" means revenues of the authority consisting of city tax
11 ________________________________________________________________________
revenues, school district tax revenues, state aid revenues, and all
12 ________________________________________________________________________
other aid, rents, fees, charges, gifts, payments and other income and
13 ________________________________________________________________________
receipts paid or payable to the authority or a trustee for the account
14 ________________________________________________________________________
of the authority, to the extent such amounts are pledged to bondholders.
15 ________________________________________
24. "State" means the state of New York.
16 ______________________________________________________________________
25. "State aid" means: all general purpose local government aid; emer-
17 ________________________________________________________________________
gency financial assistance to certain cities; emergency financial
18 ________________________________________________________________________
assistance to eligible municipalities; supplemental municipal aid; and
19 ________________________________________________________________________
any successor type of aid and any new aid appropriated by the state as
20 ________________________________________________________
local government assistance for the benefit of the city.
21 ______________________________________________________________________
26. "State aid revenues" means state aid paid by the state comptroller
22 ________________________________________
to the authority pursuant to this title.
23 ___________________________________________________________
27. "State comptroller" means the comptroller of the state.
24 ______________________________________________________________________
28. "School district tax revenues" means the portion of the county's
25 ________________________________________________________________________
"net collections," as defined in section twelve hundred sixty-two of the
26 ________________________________________________________________________
tax law, payable to the city school district by the county pursuant to
27 ________________________________________________________________________
the authority of subdivision (a) of section twelve hundred sixty-two of
28 ____________
the tax law.
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29. "Cash flow borrowings" means: (a) notes issued by the authority on
2 ________________________________________________________________________
behalf of the city, the city school district or any other covered organ-
3 ________________________________________________________________________
ization, the proceeds of which are used to address temporary cash flow
4 ________________________________________________________________________
needs of the city, the city school district or the applicable covered
5 ________________________________________________________________________
organization; and (b) bonds, notes and other obligations issued by the
6 ________________________________________________________________________
authority to refund notes of the authority described in paragraph (a) of
7 _________________
this subdivision.
8 ______________________________________________________________________
30. "Obligations of the city" means bonds, notes and other evidences
9 _______________________________________________
of indebtedness issued or incurred by the city.
10 ______________________________________________________________________
§ 4053. City of Mount Vernon fiscal stability authority. 1. There is
11 ________________________________________________________________________
hereby created the city of Mount Vernon fiscal stability authority. The
12 ________________________________________________________________________
authority shall be a corporate governmental agency and instrumentality
13 _______________________________________________________
of the state constituting a public benefit corporation.
14 ______________________________________________________________________
2. The authority shall conduct meetings as often as deemed necessary
15 ________________________________________________________________________
to accomplish its purposes, but not less than quarterly during a control
16 _______________________________________________
period, and annually during an advisory period.
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3. The authority shall continue until its control, advisory or other
18 ________________________________________________________________________
responsibilities, and its liabilities have been met or otherwise
19 ________________________________________________________________________
discharged, which in no event shall be later than December thirty-first,
20 ________________________________________________________________________
two thousand fifty-one. Upon the termination of the authority, all of
21 ________________________________________________________________
its property and assets shall pass to and be vested in the city.
22 ______________________________________________________________________
§ 4054. Administration of the authority. 1. The authority shall be
23 ________________________________________________________________________
administered by nine directors, seven of which shall be appointed by the
24 ________________________________________________________________________
governor. Of the seven directors, one such director shall be a resident
25 ________________________________________________________________________
of the city of Mount Vernon; one such director shall be appointed
26 ________________________________________________________________________
following the recommendation of the state comptroller; and one such
27 ________________________________________________________________________
director shall be appointed on the joint recommendation of the temporary
28 ________________________________________________________________________
president of the senate and the speaker of the assembly. The mayor and
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the county executive shall serve as ex officio members. Every director,
2 ________________________________________________________________________
who is otherwise an elected official of the city or county, shall be
3 ________________________________________________________________________
entitled to designate a single representative to attend, in his or her
4 ________________________________________________________________________
place, meetings of the authority and to vote or otherwise act in his or
5 ________________________________________________________________________
her behalf. Such designees shall be residents of the city of Mount
6 ________________________________________________________________________
Vernon. Written notice of such designation shall be furnished prior to
7 ________________________________________________________________________
any participation by the single designee. Such single designee shall
8 ________________________________________________________________________
serve at the pleasure of the representative, and shall not be authorized
9 ________________________________________________________________________
to delegate any of his or her duties or functions to another person.
10 ________________________________________________________________________
Each director appointed by the governor shall be appointed for a term of
11 ________________________________________________________________________
four years, provided however, that four of the directors first appointed
12 ________________________________________________________________________
by the governor, including the director appointed following the recom-
13 ________________________________________________________________________
mendation of the state comptroller shall serve for a term ending Decem-
14 ________________________________________________________________________
ber thirty-first, two thousand twenty-three, and the remaining three
15 ________________________________________________________________________
directors first appointed by the governor including the director
16 ________________________________________________________________________
appointed on the joint recommendation of the temporary president of the
17 ________________________________________________________________________
senate and the speaker of the assembly shall serve for a term ending
18 ________________________________________________________________________
December thirty-first, two thousand twenty-five. Each director shall
19 ________________________________________________________________________
hold office until his or her successor has been appointed and qualified.
20 ________________________________________________________________________
Thereafter, each director shall serve a term of four years, except that
21 ________________________________________________________________________
any director appointed to fill a vacancy shall serve only until the
22 ____________________________________________
expiration of his or her predecessor's term.
23 ______________________________________________________________________
2. The governor shall designate a chairperson and a vice-chairperson
24 ________________________________________________________________________
from among the directors. The chairperson shall preside over all meet-
25 ________________________________________________________________________
ings of the directors and shall have such other duties as the directors
26 ________________________________________________________________________
may prescribe. The vice-chairperson shall preside over all meetings of
27 ________________________________________________________________________
the directors in the absence of the chairperson and shall have such
28 ____________________________________________
other duties as the directors may prescribe.
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3. The directors of the authority shall serve without salary, but each
2 ________________________________________________________________________
director shall be reimbursed for actual and necessary expenses incurred
3 ________________________________________________________________________
in the performance of such director's official duties as a director of
4 ______________
the authority.
5 ______________________________________________________________________
4. Notwithstanding any inconsistent provision of any general, special
6 ________________________________________________________________________
or local law, ordinance, resolution or charter, no officer, member or
7 ________________________________________________________________________
employee of the state, any city, county, town or village, any govern-
8 ________________________________________________________________________
mental entity operating any public school or college, any school
9 ________________________________________________________________________
district or any other public agency or instrumentality which exercises
10 ________________________________________________________________________
governmental powers under the laws of the state, shall forfeit his or
11 ________________________________________________________________________
her office or employment by reason of his or her acceptance of appoint-
12 ________________________________________________________________________
ment as a director, officer or employee of the authority, nor shall
13 ________________________________________________________________________
service as such director, officer or employee of the authority be deemed
14 ___________________________________________________________
incompatible or in conflict with such office or employment.
15 ______________________________________________________________________
5. Five directors shall constitute a quorum for the transaction of any
16 ________________________________________________________________________
business or the exercise of any power of the authority. No action shall
17 ________________________________________________________________________
be taken by the authority except pursuant to a favorable vote of at
18 ________________________________________________________________________
least five directors participating in a meeting at which such action is
19 ______
taken.
20 ______________________________________________________________________
6. The authority shall appoint a treasurer, and may appoint officers
21 ________________________________________________________
and agents as it may require and prescribe their duties.
22 ______________________________________________________________________
7. At least annually, commencing no more than one year after the date
23 ________________________________________________________________________
on which authority bonds, notes or other obligations are first issued,
24 ________________________________________________________________________
the authority shall report to the council, comptroller, the director of
25 ________________________________________________________________________
the budget, and the state comptroller on the amount of financing and the
26 _____________________________________________
cost savings for the city over the past year.
27 ______________________________________________________________________
8. The authority shall cease to exist on December thirty-first, two
28 ___________________
thousand fifty-one.
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1 ______________________________________________________________________
§ 4055. General powers of the authority. Except as otherwise limited
2 ________________________________________________________________________
by this title, the authority shall have the following powers in addition
3 ________________________________________________________________________
to those specially conferred elsewhere in this title, subject only to
4 ____________________________
agreements with bondholders:
5 ______________________
1. to sue and be sued;
6 _________________________________________________
2. to have a seal and alter the same at pleasure;
7 ______________________________________________________________________
3. to make and alter by-laws for its organization and management and
8 ________________________________________________________________________
subject to agreements with its bondholders, to make and alter rules and
9 ________________________________________________________________________
regulations governing the exercise of its powers and fulfillment of its
10 __________________________
purposes under this title;
11 ______________________________________________________________________
4. to make and execute contracts and all other instruments or agree-
12 ________________________________________________________________________
ments necessary or convenient to carry out any powers and functions
13 ______________________________
expressly given in this title;
14 ______________________________________________________________________
5. to commence any action to protect or enforce any right conferred
15 ________________________________________________
upon it by any law, contract or other agreement;
16 ______________________________________________________________________
6. to borrow money and issue bonds, notes or other obligations, or to
17 ________________________________________________________________________
refund the same, and to provide for the rights of the holders of its
18 __________________________________
bonds, notes or other obligations;
19 ______________________________________________________________________
7. as security for the payment of the principal of and interest on any
20 ________________________________________________________________________
bonds, notes or other obligations issued by it pursuant to this title
21 ________________________________________________________________________
and any agreements made in connection therewith and for its obligations
22 ________________________________________________________________________
under bond facilities, to pledge all or any part of its revenues or
23 _______
assets;
24 ______________________________________________________________________
8. to procure insurance, letters of credit or other credit enhancement
25 ________________________________________________________________________
with respect to its bonds, notes or other obligations, or facilities for
26 ________________________________________________________________________
the payment of tenders of such bonds, notes or other obligations or
27 ________________________________________________________________________
facilities for the payment upon maturity of short-term notes not
28 ________
renewed;
02/16/21 13 09769-01-1
1 ______________________________________________________________________
9. to enter into interest rate exchange or similar arrangements with
2 ________________________________________________________________________
any person under such terms and conditions as the authority may deter-
3 ________________________________________________________________________
mine, not inconsistent with the general laws of this state and other
4 ________________________________________________________________________
provisions of this title, including, without limitation, provisions as
5 ________________________________________________________________________
to default or early termination and indemnification by the authority or
6 ________________________________________________________________________
any other party thereto for loss of benefits as a result thereof;
7 ________________________________________________________________________
provided, however, that such exchanges or similar arrangements shall be
8 ________________________________________________________________________
limited to twenty-five percent of the amount authorized in subdivision
9 ________________________________________________________________________
one of section four thousand sixty-four of this title to pay the
10 ________________________________________________________________________
financeable costs described in paragraph (a), (c), (d) or (e) of subdi-
11 __________________________________________________________________
vision seventeen of section four thousand fifty-two of this title;
12 ______________________________________________________________________
10. to procure insurance, letters of credit or other credit enhance-
13 ________________________________________________________________________
ment with respect to arrangements described in subdivision eight of this
14 ________
section;
15 ______________________________________________________________________
11. to accept gifts, grants, loans or contributions of funds or finan-
16 ________________________________________________________________________
cial or other aid in any form from the city, county, state or federal
17 ________________________________________________________________________
government or any agency or instrumentality thereof, or from any other
18 ________________________________________________________________________
source and to expend the proceeds for any of its corporate purposes in
19 _____________________________________________
accordance with the provisions of this title;
20 ______________________________________________________________________
12. subject to the provisions of any contract with bondholders, to
21 ________________________________________________________________________
invest any funds held in reserves or sinking funds, or any funds not
22 ________________________________________________________________________
required for immediate use or disbursement, at the discretion of the
23 ________________________________________________________________________
authority, in (a) obligations of the state or the United States govern-
24 ________________________________________________________________________
ment, (b) obligations the principal and interest of which are guaranteed
25 ________________________________________________________________________
by the state or the United States government, (c) certificates of depos-
26 ________________________________________________________________________
it, whether negotiable or non-negotiable, and banker's acceptances of
27 ________________________________________________________________________
any of the fifty largest banks in the United States which bank, at the
28 ________________________________________________________________________
time of investment, has an outstanding unsecured, uninsured and unguar-
02/16/21 14 09769-01-1
1 ________________________________________________________________________
anteed debt issue ranked by two nationally recognized independent rating
2 ________________________________________________________________________
agencies at a rating category that is no lower than the then current
3 ________________________________________________________________________
rating of the authority's bonds, notes or other obligations, (d) commer-
4 ________________________________________________________________________
cial paper of any bank or corporation created under the laws of either
5 ________________________________________________________________________
the United States or any state of the United States which commercial
6 ________________________________________________________________________
paper, at the time of the investment, has received the highest rating of
7 ________________________________________________________________________
two nationally recognized independent rating agencies, (e) bonds, deben-
8 ________________________________________________________________________
tures, or other evidences of indebtedness, issued or guaranteed at the
9 ________________________________________________________________________
time of the investment by the federal national mortgage association,
10 ________________________________________________________________________
federal home loan mortgage corporation, student loan marketing associ-
11 ________________________________________________________________________
ation, federal farm credit system, or any other United States government
12 ________________________________________________________________________
sponsored agency, provided that at the time of the investment such agen-
13 ________________________________________________________________________
cy receives, or its obligations receive, any of the three highest rating
14 ________________________________________________________________________
categories of two nationally recognized independent rating agencies, (f)
15 ________________________________________________________________________
any bonds or other obligations of any state or the United States of
16 ________________________________________________________________________
America or of any political subdivision thereof or any agency, instru-
17 ________________________________________________________________________
mentality or local governmental unit of any such state or political
18 ________________________________________________________________________
subdivision which bonds or other obligations, at the time of the invest-
19 ________________________________________________________________________
ment have received any of the three highest ratings of two nationally
20 ________________________________________________________________________
recognized independent rating agencies, (g) any repurchase agreement
21 ________________________________________________________________________
with any bank or trust company organized under the laws of any state of
22 ________________________________________________________________________
the United States of America or any national banking association or
23 ________________________________________________________________________
government bond dealer reporting to, trading with, and recognized as a
24 ________________________________________________________________________
primary dealer by the Federal Reserve Bank of New York, which agreement
25 ________________________________________________________________________
is secured by any one or more of the securities described in paragraph
26 ________________________________________________________________________
(a), (b) or (e) of this subdivision, which securities shall at all times
27 ________________________________________________________________________
have a market value of not less than the full amount of the repurchase
28 ________________________________________________________________________
agreement and be delivered to another bank or trust company organized
02/16/21 15 09769-01-1
1 ________________________________________________________________________
under the laws of the state or any national banking association domi-
2 ________________________________________________________________________
ciled in the state, as custodian, and (h) reverse repurchase agreements
3 ________________________________________________________________________
with any bank or trust company organized under the laws of any state of
4 ________________________________________________________________________
the United States of America or any national banking association or
5 ________________________________________________________________________
government bond dealer reporting to, trading with, and recognized as a
6 ________________________________________________________________________
primary dealer by the Federal Reserve Bank of New York, which agreement
7 ________________________________________________________________________
is secured by any one or more of the securities described in paragraph
8 ________________________________________________________________________
(a), (b) or (e) of this subdivision which securities shall at all times
9 ________________________________________________________________________
have a market value of not less than the full amount of the repurchase
10 ________________________________________________________________________
agreement and be delivered to another bank or trust company organized
11 ________________________________________________________________________
under the laws of the state or any national banking association domi-
12 _________________________________
ciled in the state, as custodian;
13 ______________________________________________________________________
13. to appoint such officers and employees as it may require for the
14 ________________________________________________________________________
performance of its duties and to fix and determine their qualifications,
15 ________________________________________________________________________
duties, and compensation, and to retain or employ counsel, auditors and
16 ________________________________________________________________________
private financial consultants and other services on a contract basis or
17 ________________________________________________________________________
otherwise for rendering professional, business or technical services and
18 ________________________________________________________________________
advice, and, in taking such actions, the authority shall consider the
19 _________________________________
financial impact on the city; and
20 ______________________________________________________________________
14. to do any and all things necessary or convenient to carry out its
21 ________________________________________________________________________
purposes and exercise the powers expressly given and granted in this
22 ________________________________________________________________________
title; provided, however, such authority shall under no circumstances
23 ________________________________________________________________________
acquire, hold or transfer title to, lease, own beneficially or other-
24 ________________________________________________________________________
wise, manage, operate or otherwise exercise control over any real prop-
25 ________________________________________________________________________
erty, any improvement to real property or any interest therein other
26 ________________________________________________________________________
than a lease or sublease of office space deemed necessary or desirable
27 _________________
by the authority.
02/16/21 16 09769-01-1
1 ______________________________________________________________________
§ 4056. Assistance to the authority; employees of the authority. 1.
2 ________________________________________________________________________
With the consent of any public corporation, the authority may use
3 ________________________________________________________________________
agents, employees and facilities thereof, paying to such public corpo-
4 __________________________________________________________
ration its agreed proportion of the compensation or costs.
5 ______________________________________________________________________
2. Officers and employees of state or city agencies may be transferred
6 ________________________________________________________________________
to the authority without examination and without loss of any civil
7 ________________________________________________________________________
service or retirement status or rights. Any officer or employee of the
8 ________________________________________________________________________
authority who heretofore acquired or shall hereafter acquire such posi-
9 ________________________________________________________________________
tion status by transfer and who at the time of such transfer was a
10 ________________________________________________________________________
member of the New York state and local employees' retirement system
11 ________________________________________________________________________
shall continue to be a member of such system as long as he or she
12 ________________________________________________________________________
continues in such service, and shall continue to have all the rights,
13 ________________________________________________________
privileges and obligations of membership in such system.
14 ______________________________________________________________________
§ 4057. City fiscal year two thousand twenty-two budget modification
15 ________________________________________________________________________
and four-year financial plan. 1. Not later than March first, two thou-
16 ________________________________________________________________________
sand twenty-two, the city shall submit to the authority a financial plan
17 ________________________________________________________________________
which may reflect a declaration of need as provided for in section four
18 ________________________________________________________________________
thousand sixty-three of this title. The plan shall cover the city's two
19 ______________________________________________________________________
thousand twenty-two fiscal year and the three subsequent fiscal years.
20 ______________________________________________________________________
2. Not later than fifteen days after such submission, the authority
21 _______________________________________________
shall approve or disapprove the financial plan.
22 ______________________________________________________________________
3. In the event the authority shall disapprove such financial plan
23 ________________________________________________________________________
based on disapproval of certain actions or assumptions, the authority
24 ________________________________________________________________________
shall promptly thereafter notify the city of its reasons. Within fifteen
25 ________________________________________________________________________
days from the receipt of such notification the city shall modify the
26 ________________________________________________________________________
financial plan, and unless such financial plan modification is approved
27 ________________________________________________________________________
by the authority, the authority shall impose a financial plan of its own
02/16/21 17 09769-01-1
1 ________________________________________________________________________
formulation as soon as practicable, as provided for in section four
2 _________________________________
thousand sixty-one of this title.
3 ______________________________________________________________________
§ 4058. City financial plans. 1. (a) Commencing with the city's two
4 ________________________________________________________________________
thousand twenty-three fiscal year, the mayor shall prepare and submit to
5 ________________________________________________________________________
the authority a four-year financial plan, and the mayor's proposed city
6 ________________________________________________________________________
budget, not later than the date required for submission of such budget
7 ________________________________________________________________________
to the council pursuant to the city charter. Such financial plan shall,
8 ________________________________________________________________________
in addition to the requirements for financial plans set forth in this
9 ________________________________________________________________________
section, contain actions sufficient to ensure with respect to the major
10 ________________________________________________________________________
operating funds for each fiscal year of the plan that annual aggregate
11 ________________________________________________________________________
operating expenses for such fiscal year shall not exceed annual aggre-
12 ________________________________________________________________________
gate operating revenues for such fiscal year. For purposes of determin-
13 ________________________________________________________________________
ing operating revenues in the fiscal years ending December thirty-first,
14 ________________________________________________________________________
two thousand twenty-three through two thousand twenty-six, such plan may
15 ________________________________________________________________________
assume receipt by the city of MVFSA assistance in the following collec-
16 _____________________________________________
tive amounts for each respective fiscal year:
17 ______
Amount __________________
Fiscal Year Ending
18 ___________
2023 amount ____
2023
19 ___________
2024 amount ____
2024
20 ___________
2025 amount ____
2025
21 ___________
2026 amount ____
2026
22 ________________________________
(b) As used in this subdivision:
23 ______________________________________________________________________
(i) "2023 amount" means that amount expected to be provided by the
24 ________________________________________________________________________
authority to ensure balanced major operating fund operations upon its
25 ________________________________________________________________________
determination that the city has taken recurring actions to close between
26 _________________________________________________________________
thirty-five per centum and forty per centum of the projected gap.
27 ______________________________________________________________________
(ii) "2024 amount" means that amount expected to be provided by the
28 ________________________________________________________________________
02/16/21 18 09769-01-1
1 ________________________________________________________________________
2 ________________________________________________________________
forty-five per centum and fifty per centum of the projected gap.
3 ______________________________________________________________________
(iii) "2025 amount" means that amount expected to be provided by the
4 ________________________________________________________________________
5 ________________________________________________________________________
6 ________________________________________________________________
sixty per centum and sixty-five per centum of the projected gap.
7 ______________________________________________________________________
(iv) "2026 amount" means that amount expected to be provided by the
8 ________________________________________________________________________
9 ________________________________________________________________________
10 __________________________________________________________________
eighty per centum and eighty-five per centum of the projected gap.
11 ______________________________________________________________________
2. Each financial plan and financial plan modification shall conform
12 ________________________________________________________________________
to the requirements of this subdivision and shall provide that the major
13 ________________________________________________________________________
operating funds of the city will be balanced in accordance with general-
14 ________________________________________________________________________
ly accepted accounting principles. The financial plan shall be developed
15 ________________________________________________________________________
and approved, and may from time to time be modified, in accordance with
16 _________________________
the following procedures:
17 ______________________________________________________________________
(a) The mayor shall submit to the authority a certificate stating that
18 ________________________________________________________________________
the budget submitted to the authority is consistent with the financial
19 ________________________________________________________________________
plan submitted therewith and that operation within the budget is feasi-
20 ____
ble.
21 ______________________________________________________________________
(b) Prior to the approval or disapproval of the financial plan of the
22 ________________________________________________________________________
city by the authority, the authority shall request community, educa-
23 ________________________________________________________________________
tional or other entity or entities to seek public input and comment
24 ________________________________________________________________________
relating to the city's and/or any covered organization's financial plan.
25 ________________________________________________________________________
Such community, educational or other entity or entities shall report to
26 ________________________________________________________________________
the authority on such public input and comment ten days after the city
27 ________________________________________________________________________
has submitted the financial plan to the authority. The authority shall
28 ________________________________________________________________________
evaluate any proposals submitted to the authority for cost savings
02/16/21 19 09769-01-1
1 ________________________________________________________________________
and/or service delivery enhancement in the city, and shall periodically,
2 ________________________________________________________________________
at least twice a year, summarize in a public report the authority's
3 ________________________________________________________________________
findings with respect to such proposals that, in the opinion of the
4 ________________________________________________________________________
authority, merit further consideration based on their potential impact
5 ________________________________________________________________________
on the city's budget. The authority shall provide public notice of the
6 ____________________________________________________
dates on which it plans to make such public reports.
7 ______________________________________________________________________
(c) Not more than twenty days after submission of a financial plan or
8 ________________________________________________________________________
more than fifteen days after submission of a financial plan modifica-
9 ________________________________________________________________________
tion, the authority shall determine whether the financial plan or finan-
10 ________________________________________________________________________
cial plan modification is complete and complies with the provisions of
11 ________________________________________________________________________
this section and section four thousand fifty-seven of this title and the
12 ________________________________________________________________________
other requirements of this title, and shall submit its recommendations
13 ________________________________________________________________________
with respect to the financial plan or financial plan modification in
14 ___________________________________________________
accordance with the provisions of this subdivision.
15 ______________________________________________________________________
(d) Upon the approval by the city of a budget in accordance with the
16 ________________________________________________________________________
provisions of the city charter, the mayor shall submit such approved
17 ________________________________________________________________________
budget and financial plan to the authority accompanied by expenditure,
18 ________________________________________________________________________
revenue and cash flow projections on a quarterly basis and certify to
19 ________________________________________________________________________
the authority that such budget is consistent with the financial plan to
20 ______________________________
be submitted to the authority.
21 ______________________________________________________________________
(e) If the authority determines that the financial plan or financial
22 ________________________________________________________________________
plan modification provided pursuant to paragraph (d) or (g) of this
23 ________________________________________________________________________
subdivision or section four thousand fifty-seven of this title is
24 ________________________________________________________________________
complete and complies with the standards set forth in this subdivision,
25 ________________________________________________________________________
the authority shall make a certification to the city setting forth
26 ________________________________________________________________________
revenue estimates agreed to by the authority in accordance with such
27 ______________
determination.
02/16/21 20 09769-01-1
1 ______________________________________________________________________
(f) The authority shall, in the event it disagrees with elements of
2 ________________________________________________________________________
the financial plan provided pursuant to paragraph (d) or (g) of this
3 ________________________________________________________________________
subdivision, or section four thousand fifty-seven of this title, provide
4 ________________________________________________________________________
notice thereof to the city, with copies to the director of the budget,
5 ________________________________________________________________________
the state comptroller, the chair of the assembly ways and means commit-
6 ________________________________________________________________________
tee and the chair of the senate finance committee, if, in the judgment
7 ________________________________________________________________________
of the authority, such plan: (i) is incomplete; (ii) fails to contain
8 ________________________________________________________________________
projections of revenues and expenditures that are based on reasonable
9 ________________________________________________________________________
and appropriate assumptions and methods of estimations; (iii) fails to
10 ________________________________________________________________________
provide that operations of the city and the covered organizations will
11 ________________________________________________________________________
be conducted within the cash resources available; or (iv) fails to
12 ______________________________________________________________________
comply with the provisions of this title or other requirements of law.
13 ______________________________________________________________________
(g) After the initial adoption of an approved financial plan, the
14 ________________________________________________________________________
revenue estimates certified by the authority and the financial plan
15 ________________________________________________________________________
shall be regularly reexamined by the authority in consultation with the
16 ________________________________________________________________________
city and the covered organizations and the mayor shall provide a modi-
17 ________________________________________________________________________
fied financial plan in such detail and within such time periods as the
18 ________________________________________________________________________
authority may require. In the event of reductions in such revenue esti-
19 ________________________________________________________________________
mates, or in the event the city or a covered organization shall expend
20 ________________________________________________________________________
funds at a rate that would exceed the aggregate expenditure limitation
21 ________________________________________________________________________
for the city or covered organization prior to the expiration of the
22 ________________________________________________________________________
fiscal year, the mayor shall submit a financial plan modification to
23 ________________________________________________________________________
effect such adjustments in revenue estimates and reductions in total
24 ________________________________________________________________________
expenditures as may be necessary to conform to such revised revenue
25 _______________________________________________
estimates or aggregate expenditure limitations.
26 ______________________________________________________________________
(h) If, within a time period specified by the authority, the city
27 ________________________________________________________________________
fails to make such modifications after reductions in revenue estimates,
28 ________________________________________________________________________
or to provide a modified plan in detail and within such time period
02/16/21 21 09769-01-1
1 ________________________________________________________________________
required by the authority, the authority shall adopt a resolution so
2 ________________________________________________________________________
finding and shall, as soon as practicable thereafter, formulate and
3 ________________________________________________________________________
adopt a financial plan to be effective until the authority approves a
4 ________________________________________________________________________
financial plan submitted by the city. All budgets and operations of the
5 ________________________________________________________________________
city or a covered organization shall be in conformance and compliance
6 _______________________________________
with the financial plan then in effect.
7 ______________________________________________________________________
(i) The city shall amend its budget or shall submit a financial plan
8 ________________________________________________________________________
modification for the approval of the authority such that the city's
9 ________________________________________________________________________
budget and the approved financial plan shall be consistent. In no event
10 ________________________________________________________________________
shall the city operate under a budget that is inconsistent with an
11 ________________________
approved financial plan.
12 ______________________________________________________________________
3. The financial plan shall be in such form and shall contain such
13 ________________________________________________________________________
information for each year during which the financial plan is in effect
14 ________________________________________________________________________
as the authority may specify, and shall include the city and all the
15 ________________________________________________________________________
covered organizations, and shall, in such detail as the authority from
16 ________________________________________________________________________
time to time may prescribe, include: (a) statements of all estimated
17 ________________________________________________________________________
revenues and of all expenditures and cash flow projections of the city
18 ________________________________________________________________________
and each covered organization; and (b) an accounting of the expenditure
19 ________________________________________________________________________
of efficiency incentive grants available to the city for each year of
20 _________
the plan.
21 ______________________________________________________________________
4. The financial plan shall include any information which the authori-
22 ________________________________________________________________________
ty may request to satisfy itself that: (a) projected employment levels,
23 ________________________________________________________________________
collective bargaining agreements and other actions relating to employee
24 ________________________________________________________________________
costs, capital construction and such other matters as the authority may
25 ________________________________________________________________________
specify are consistent with the provisions made for such obligations in
26 ________________________________________________________________________
the financial plan; (b) the city and the covered organizations are
27 ________________________________________________________________________
taking whatever action is necessary with respect to programs mandated by
28 ________________________________________________________________________
state and federal law to ensure that expenditures for such programs are
02/16/21 22 09769-01-1
1 ________________________________________________________________________
limited to and covered by the expenditures stated in the financial plan;
2 ________________________________________________________________________
(c) adequate reserves are provided to maintain essential programs in the
3 ________________________________________________________________________
event revenues have been overestimated or expenditures underestimated
4 ________________________________________________________________________
for any period; and (d) the city has adequate cash resources to meet its
5 ________________________________________________________________________
obligations. In addition, except to the extent such reporting require-
6 ________________________________________________________________________
ments may be modified pursuant to agreement between the authority and
7 ________________________________________________________________________
the city, for each fiscal year occurring during a control period, or
8 ________________________________________________________________________
while bonds, notes or other obligations issued pursuant to this title
9 ________________________________________________________________________
are outstanding, the mayor shall prepare a quarterly report of summa-
10 ________________________________________________________________________
rized budget data depicting overall trends, by major category within
11 ________________________________________________________________________
funds, of actual revenues and budget expenditures for the entire budget
12 ________________________________________________________________________
rather than individual line items, as well as updated quarterly cash
13 ________________________________________________________________________
flow projections of receipts and disbursements. Such reports shall
14 ________________________________________________________________________
compare revenue estimates and appropriations as set forth in such budget
15 ________________________________________________________________________
and in the quarterly revenue and expenditure projections submitted ther-
16 ________________________________________________________________________
ewith, with the actual revenues and expenditures made to date. Such
17 ________________________________________________________________________
reports shall also compare actual receipts and disbursements with the
18 ________________________________________________________________________
estimates contained in the cash flow projections, together with vari-
19 ________________________________________________________________________
ances and their explanation. All quarterly reports shall be accompanied
20 ________________________________________________________________________
by recommendations from the mayor to the council setting forth any reme-
21 ________________________________________________________________________
dial action necessary to resolve any unfavorable budget variance includ-
22 ________________________________________________________________________
ing the overestimation of revenues and the underestimation of appropri-
23 ________________________________________________________________________
ations. These reports shall be completed within thirty days after the
24 ________________________________________________________________________
end of each quarter and shall be submitted to the council, the authori-
25 ________________________________________________________________________
ty, the director of the budget and the state comptroller. For each
26 ________________________________________________________________________
fiscal year occurring during a control or advisory period or while
27 ________________________________________________________________________
bonds, notes or other obligations issued pursuant to this title are
28 ________________________________________________________________________
outstanding, the mayor shall submit a proposed budget or revision there-
02/16/21 23 09769-01-1
1 ________________________________________________________________________
to to the authority concurrent with submission to the council, and shall
2 ________________________________________________________________________
submit the adopted budget to the authority immediately upon its
3 _________
adoption.
4 ______________________________________________________________________
5. For each financial plan and financial plan modification to be
5 ________________________________________________________________________
prepared and submitted by the mayor to the authority pursuant to the
6 ________________________________________________________________________
provisions of this section, the covered organizations shall submit to
7 ________________________________________________________________________
the city such information with respect to their projected expenditures,
8 ________________________________________________________________________
revenues and cash flows for each of the years covered by such financial
9 __________________________________________________
plan or modification as the mayor shall determine.
10 ______________________________________________________________________
§ 4059. Efficiency incentive grants. By November tenth, two thousand
11 ________________________________________________________________________
twenty-four, the city shall develop and submit to the authority a plan
12 ________________________________________________________________________
for achieving recurring savings through innovations and reengineering.
13 ________________________________________________________________________
Subject to appropriations therefor in the state fiscal years two thou-
14 ________________________________________________________________________
sand twenty-four--two thousand twenty-five through two thousand twenty-
15 ________________________________________________________________________
eight--two thousand twenty-nine, the authority shall provide grants to
16 ________________________________________________________________________
support such city cost saving activities. State funding during such
17 ________________________________________________________________________
five-year period shall not exceed fifty million dollars, or ten million
18 ________________________________________________________________________
dollars annually, for grants provided pursuant to this section. Provided
19 ________________________________________________________________________
further, copies of such city plan shall be submitted to the director of
20 ________________________________________________________________________
the budget, the chair of the state senate finance committee and the
21 _____________________________________________________
chair of the state assembly ways and means committee.
22 ______________________________________________________________________
§ 4060. Advisory period. 1. During any advisory period the authority
23 ______
shall:
24 ______________________________________________________________________
(a) obtain from the city, the covered organizations and the state
25 ________________________________________________________________________
comptroller, all information, financial statements and projections,
26 ________________________________________________________________________
budgetary data and information, and management reports and materials as
27 ________________________________________________________________________
the authority deems necessary or desirable to accomplish the purposes of
28 ________________________________________________________________________
this title; and inspect, copy and audit such books and records of the
02/16/21 24 09769-01-1
1 ________________________________________________________________________
city and the covered organizations as the authority deems necessary or
2 ___________________________________________________
desirable to accomplish the purposes of this title;
3 ______________________________________________________________________
(b) review the operation, management, efficiency and productivity of
4 ________________________________________________________________________
city operations and of any covered organization's operations as the
5 ________________________________________________________________________
authority may determine, and make reports and recommendations thereon;
6 ________________________________________________________________________
examine the potential to enhance the revenue of the city or any covered
7 ________________________________________________________________________
organization; audit compliance with the financial plan in such areas as
8 ________________________________________________________________________
the authority may determine; and recommend to the city and the covered
9 ________________________________________________________________________
organizations such measures relating to their operations, management,
10 ________________________________________________________________________
efficiency and productivity as the authority deems appropriate to reduce
11 ________________________________________________________________________
costs, enhance revenue and improve services so as to advance the
12 _______________________
purposes of this title;
13 ______________________________________________________________________
(c) comment on the provisions of the budget, the financial plan and
14 ________________________________________________________________________
the financial plan modifications of the city as the authority deems
15 _________________________
necessary or appropriate;
16 ______________________________________________________________________
(d) review and comment on the terms of any proposed borrowing, includ-
17 ________________________________________________________________________
ing the prudence of each proposed issuance of bonds or notes to be
18 _______________________
issued by the city; and
19 ______________________________________________________________________
(e) assess the impact of any collective bargaining agreement to be
20 ________________________________________________________________________
entered into by the city and such contracts, that, in the judgment of
21 ________________________________________________________________________
the authority, may have a significant impact on the city's long-term
22 _________________
fiscal condition.
23 ______________________________________________________________________
2. During any advisory period, the city shall promptly provide all
24 ________________________________________________________________________
information requested by the authority, review the comments, assess-
25 ________________________________________________________________________
ments, reports and recommendations of the authority and publicly respond
26 ______________________________________________________________________
thereto, addressing such matters as have been raised by the authority.
27 ______________________________________________________________________
§ 4061. Control period. 1. A control period shall begin as of the
28 ________________________________________________________________________
effective date of this title and may be reimposed during an advisory
02/16/21 25 09769-01-1
1 ________________________________________________________________________
period if the authority determines at any time that a fiscal crisis is
2 ________________________________________________________________________
imminent or that any of the following events has occurred or that there
3 ________________________________________________________________________
is a substantial likelihood and imminence of such occurrence: (a) the
4 ________________________________________________________________________
city shall have failed to adopt a balanced budget, financial plan or
5 ________________________________________________________________________
budget modification as required by sections four thousand fifty-seven
6 ________________________________________________________________________
and four thousand fifty-eight of this title, (b) the city shall have
7 ________________________________________________________________________
failed to pay the principal of or interest on any of its bonds or notes
8 ________________________________________________________________________
when due, (c) the city shall have incurred an operating deficit of one
9 ________________________________________________________________________
percent or more in the aggregate results of operations of any major fund
10 ________________________________________________________________________
of the city or a covered organization during its fiscal year assuming
11 ________________________________________________________________________
all revenues and expenditures are reported in accordance with generally
12 ________________________________________________________________________
accepted accounting principles, subject to the provisions of this title,
13 ________________________________________________________________________
(d) the chief fiscal officer's certification at any time, at the request
14 ________________________________________________________________________
of the authority or on the chief fiscal officer's initiative, which
15 ________________________________________________________________________
certification shall be made from time to time as promptly as circum-
16 ________________________________________________________________________
stances warrant and reported to the authority, that on the basis of
17 ________________________________________________________________________
facts existing at such time such officer could not make the certif-
18 ________________________________________________________________________
ication described in subdivision one of section four thousand fifty-two
19 ________________________________________________________________________
of this title, or (e) the city shall have violated any provision of this
20 ________________________________________________________________________
title. A control period shall terminate when the authority has deter-
21 ________________________________________________________________________
mined that the city qualifies for the onset of an advisory period as
22 ________________________________________________________________________
provided under subdivision one of section four thousand fifty-two of
23 ________________________________________________________________________
this title. After onset of an advisory period, the authority shall annu-
24 ________________________________________________________________________
ally consider paragraphs (a) through (e) of this subdivision and deter-
25 ________________________________________________________________________
mine whether, in its judgment, any of the events described in such para-
26 ________________________________________________________________________
graphs have occurred and the authority shall publish each such
27 ________________________________________________________________________
determination. Any certification made by the chief fiscal officer here-
28 ________________________________________________________________________
under shall be based on such officer's written determination which shall
02/16/21 26 09769-01-1
1 ________________________________________________________________________
take into account a report and opinion of an independent expert in the
2 ________________________________________________________________________
marketing of municipal securities selected by the authority, and the
3 ________________________________________________________________________
opinion of such expert and any other information taken into account
4 ________________________________________________________________________
shall be made public when delivered to the authority. Notwithstanding
5 ________________________________________________________________________
any part of the foregoing to the contrary, in no event shall any control
6 _____________________________________________________________________
period continue beyond December thirty-first, two thousand fifty-one.
7 ______________________________________________________________________
2. In carrying out the purposes of this title during any control peri-
8 __________________
od, the authority:
9 ______________________________________________________________________
(a) shall approve or disapprove the financial plan and the financial
10 ________________________________________________________________________
plan modifications of the city, as provided in sections four thousand
11 ________________________________________________________________________
fifty-seven and four thousand fifty-eight of this title, and shall
12 ________________________________________________________________________
formulate and adopt its own modifications to the financial plan, as
13 ________________________________________________________________________
necessary; such modifications shall become effective upon their adoption
14 _________________
by the authority;
15 ______________________________________________________________________
(b) may set a maximum level of spending for any proposed budget of any
16 _____________________
covered organization;
17 ___________________________________________
(c) may impose a wage and/or hiring freeze:
18 ______________________________________________________________________
(i) During a control period, upon a finding by the authority that a
19 ________________________________________________________________________
wage and/or hiring freeze is essential to the adoption or maintenance of
20 ________________________________________________________________________
a city budget or a financial plan that is in compliance with this title,
21 ________________________________________________________________________
the authority shall be empowered to order that all increases in salary
22 ________________________________________________________________________
or wages of employees of the city and employees of covered organizations
23 ________________________________________________________________________
which will take effect after the date of the order pursuant to collec-
24 ________________________________________________________________________
tive bargaining agreements, other analogous contracts or interest arbi-
25 ________________________________________________________________________
tration awards, now in existence or hereafter entered into, requiring
26 ________________________________________________________________________
such salary or wage increases as of any date thereafter are suspended.
27 ________________________________________________________________________
Such order may also provide that all increased payments for holiday and
28 ________________________________________________________________________
vacation differentials, shift differentials, salary adjustments accord-
02/16/21 27 09769-01-1
1 ________________________________________________________________________
ing to plan and step-ups or increments for employees of the city and
2 ________________________________________________________________________
employees of covered organizations which will take effect after the date
3 ________________________________________________________________________
of the order pursuant to collective bargaining agreements, other analo-
4 ________________________________________________________________________
gous contracts or interest arbitration awards requiring such increased
5 ________________________________________________________________________
payments as of any date thereafter are, in the same manner, suspended.
6 ________________________________________________________________________
For the purposes of computing the pension base of retirement allowances,
7 ________________________________________________________________________
any suspended salary or wage increases and any other suspended payments
8 ________________________________________________________________________
shall not be considered as part of compensation or final compensation or
9 ____________________________________
of annual salary earned or earnable;
10 ______________________________________________________________________
(ii) Notwithstanding the provisions of subparagraph (i) of this para-
11 ________________________________________________________________________
graph, this subdivision shall not be applicable to employees of the city
12 ________________________________________________________________________
or employees of a covered organization subject to a collective bargain-
13 ________________________________________________________________________
ing agreement or an employee of the city or a covered organization not
14 ________________________________________________________________________
subject to a collective bargaining agreement where the collective
15 ________________________________________________________________________
bargaining representative or such unrepresented employee has agreed to a
16 ________________________________________________________________________
deferment of salary or wage increase, by an instrument in writing which
17 ________________________________________________________________________
has been certified by the authority as being an acceptable and appropri-
18 ________________________________________________________________________
ate contribution toward alleviating the fiscal crisis of the city. Any
19 ________________________________________________________________________
such agreement to a deferral of salary or wage increase may provide that
20 ________________________________________________________________________
for the purposes of computing the pension base of retirement allowances,
21 ________________________________________________________________________
any deferred salary or wage increase may be considered as part of
22 ________________________________________________________________________
compensation or final compensation or of annual salary earned or earna-
23 ____
ble;
24 _____________________________________________________________
(iii) Notwithstanding the provisions of subparagraphs (i) and
25 ______________________________________________________________________
(ii) of this paragraph, no retroactive pay adjustments of any kind
26 ________________________________________________________________________
shall accrue or be deemed to accrue during the period of wage freeze,
27 ________________________________________________________________________
and no such additional amounts shall be paid at the time a wage freeze
28 _____________________________________
is lifted, or at any time thereafter;
02/16/21 28 09769-01-1
1 ______________________________________________________________________
(d) shall periodically evaluate the suspension of salary or wage
2 ________________________________________________________________________
increases or suspensions of other increased payments or benefits, and
3 ________________________________________________________________________
may, if it finds that the fiscal crisis, in the sole judgment of the
4 _________________________________________________
authority has abated, terminate such suspensions;
5 ______________________________________________________________________
(e) shall review and approve or disapprove any collective bargaining
6 ________________________________________________________________________
agreement to be entered into by the city or any covered organization, or
7 ________________________________________________________________________
purporting to bind, the city or any covered organization. Prior to
8 ________________________________________________________________________
entering into any collective bargaining agreement, the city or any
9 ________________________________________________________________________
covered organization shall submit a copy of such collective bargaining
10 ________________________________________________________________________
agreement to the authority, accompanied by an analysis of the projected
11 ________________________________________________________________________
costs of such agreement and a certification that execution of the agree-
12 ________________________________________________________________________
ment will be in accordance with the financial plan. Such submission
13 ________________________________________________________________________
shall be in such form and include such additional information as the
14 ________________________________________________________________________
authority may prescribe. The authority shall promptly review the terms
15 ________________________________________________________________________
of such collective bargaining agreement and the supporting information
16 ________________________________________________________________________
in order to determine compliance with the financial plan, and shall
17 ________________________________________________________________________
disapprove any collective bargaining agreement which, in its judgment,
18 ________________________________________________________________________
would be inconsistent with the financial plan. No collective bargaining
19 ________________________________________________________________________
agreement binding, or purporting to bind, the city or any covered organ-
20 ________________________________________________________________________
ization after the effective date of this title shall be valid and bind-
21 ________________________________________________________________________
ing upon the city or any covered organization unless first approved by
22 ____________________________
resolution of the authority;
23 ______________________________________________________________________
(f) shall act jointly with the city in selecting members of any inter-
24 ________________________________________________________________________
est arbitration panel. Notwithstanding any other evidence presented by
25 ________________________________________________________________________
the city, the covered organization or any recognized employee organiza-
26 ________________________________________________________________________
tion, the arbitration panel must, prior to issuing any final decision,
27 ________________________________________________________________________
provide the authority with the opportunity to present evidence regarding
28 _________________________________
the fiscal condition of the city;
02/16/21 29 09769-01-1
1 ______________________________________________________________________
(g) shall take any action necessary in order to implement the finan-
2 ________________________________________________________________________
cial plan should the city or any covered organization have failed to
3 ________________________________________________________________________
comply with any material action necessary to fulfill the plan, provided,
4 ________________________________________________________________________
however, the authority shall provide seven (7) days' notice of its
5 ________________________________________________________________________
determination that the city or any covered organization has not complied
6 ________________________________
prior to taking any such action.
7 ______________________________________________________________________
(h) may review and approve or disapprove contracts or other obli-
8 ________________________________________________________________________
gations binding or purporting to bind the city or any covered organiza-
9 _____
tion;
10 ______________________________________________________________________
(i) shall, with respect to any proposed borrowing by or on behalf of
11 ________________________________________________________________________
the city or any covered organization on or after January first, two
12 ________________________________________________________________________
thousand twenty-two, review the terms of and comment, within thirty days
13 ________________________________________________________________________
after notification by the city or covered organization of a proposed
14 ________________________________________________________________________
borrowing, on the prudence of each proposed issuance of bonds or notes
15 ________________________________________________________________________
to be issued by the city or covered organization and no such borrowing
16 ________________________________________________________________________
shall be made unless first reviewed, commented upon and approved by the
17 ________________________________________________________________________
authority. The authority shall comment within thirty days after notifi-
18 ________________________________________________________________________
cation by the city or covered organization of a proposed borrowing to
19 ________________________________________________________________________
the mayor, the comptroller, the council, the director of the budget and
20 ________________________________________________________________________
the state comptroller and indicate approval or disapproval of the
21 ________________________________________________________________________
proposed borrowing. Notwithstanding the foregoing, neither the city nor
22 ________________________________________________________________________
any covered organization shall be prohibited from issuing bonds or notes
23 __________________________________
to pay outstanding bonds or notes;
24 ______________________________________________________________________
(j) may review the operation, management, efficiency and productivity
25 ________________________________________________________________________
of the city and any covered organizations as the authority may deter-
26 ________________________________________________________________________
mine, and make reports thereon; examine the potential to enhance the
27 ________________________________________________________________________
revenue of the city or any covered organization; audit compliance with
28 ________________________________________________________________________
the financial plan in such areas as the authority may determine; recom-
02/16/21 30 09769-01-1
1 ________________________________________________________________________
mend to the city and the covered organizations such measures relating to
2 ________________________________________________________________________
their operations, management, efficiency and productivity as the author-
3 ________________________________________________________________________
ity deems appropriate to reduce costs, enhance revenue, and improve
4 _____________________________________________________
services so as to advance the purposes of this title;
5 ______________________________________________________________________
(k) may require the city to undertake certain actions to advance seri-
6 ________________________________________________________________________
ous and in-depth exploration of a merger of services with the county,
7 ________________________________________________________________________
including identification and analysis of options; development of a
8 ________________________________________________________________________
detailed fiscal and programmatic plan; identification of city, county,
9 _______________________________________________________________
and state impediments; and fostering of informed public debate;
10 ______________________________________________________________________
(l) may review and approve or disapprove the terms of any proposed
11 ________________________________________________________________________
settlement of claims against the city or any covered organization in
12 _________________________________
excess of fifty thousand dollars;
13 ______________________________________________________________________
(m) may obtain from the city, the covered organizations, comptroller,
14 ________________________________________________________________________
and the state comptroller, as appropriate, all information required
15 ________________________________________________________________________
pursuant to this section, and such other financial statements and
16 ________________________________________________________________________
projections, budgetary data and information, and management reports and
17 ________________________________________________________________________
materials as the authority deems necessary or desirable to accomplish
18 ________________________________________________________________________
the purposes of this title; and inspect, copy and audit such books and
19 ________________________________________________________________________
records of the city and the covered organizations as the authority deems
20 ________________________________________________________________
necessary or desirable to accomplish the purposes of this title;
21 ______________________________________________________________________
(n) may perform such audits and reviews of the city and any agency
22 ________________________________________________________________
thereof and any covered organizations as it deems necessary; and
23 ______________________________________________________________________
(o) may issue, from time to time and to the extent it deems necessary
24 ________________________________________________________________________
or desirable in order to accomplish the purposes of this title, to the
25 ________________________________________________________________________
appropriate official of the city and each covered organization, such
26 ________________________________________________________________________
orders necessary to accomplish the purposes of this title, including,
27 ________________________________________________________________________
but not limited to, timely and satisfactory implementation of an
28 ________________________________________________________________________
approved financial plan. Any order so issued shall be binding upon the
02/16/21 31 09769-01-1
1 ________________________________________________________________________
official to whom it was issued and failure to comply with such order
2 ________________________________________________________________________
shall subject the official to the penalties described in subdivision
3 ______________________
three of this section.
4 _________________________________
3. (a) During any control period:
5 ______________________________________________________________________
(i) no officer or employee of the city or of any of the covered organ-
6 ________________________________________________________________________
izations shall make or authorize an obligation or other liability in
7 ________________________________________________________________________
excess of the amount available therefor under the financial plan as then
8 __________
in effect;
9 ______________________________________________________________________
(ii) no officer or employee of the city or of any of the covered
10 ________________________________________________________________________
organizations shall involve the city or any of the covered organizations
11 ________________________________________________________________________
in any contract or other obligation or liability for the payment of
12 ________________________________________________________________________
money for any purpose required to be approved by the authority unless
13 ________________________________________________________________________
such contract has been so approved and unless such contract or obli-
14 ________________________________________________________________________
gation or liability is in compliance with the approved financial plan as
15 _______________
then in effect.
16 ______________________________________________________________________
(b) No officer or employee of the city or any of the covered organiza-
17 ________________________________________________________________________
tions shall take any action in violation of any valid order of the
18 ________________________________________________________________________
authority or shall fail or refuse to take any action required by any
19 _______________________________________________________________
such order or shall prepare, present or certify any information
20 ______________________________________________________________________
(including any projections or estimates) or report to the authority or
21 ________________________________________________________________________
any of its agents that is false or misleading, or, upon learning that
22 ________________________________________________________________________
any such information is false or misleading, shall fail promptly to
23 ___________________________________________
advise the authority or its agents thereof.
24 ______________________________________________________________________
(c) In addition to any penalty or liability under any other law, any
25 ________________________________________________________________________
officer or employee of the city or any of the covered organizations who
26 ________________________________________________________________________
shall violate paragraph (a) or (b) of this subdivision shall be subject
27 ________________________________________________________________________
to appropriate administrative discipline, including, when circumstances
28 ________________________________________________________________________
warrant, suspension from duty without pay or removal from office by
02/16/21 32 09769-01-1
1 ________________________________________________________________________
order of either the governor or the mayor; and any officer or employees
2 ________________________________________________________________________
of the city or any of the covered organizations who shall knowingly and
3 ________________________________________________________________________
willfully violate paragraph (a) or (b) of this subdivision shall, upon
4 _______________________________________
conviction, be guilty of a misdemeanor.
5 ______________________________________________________________________
(d) In the case of a violation of paragraph (a) or (b) of this subdi-
6 ________________________________________________________________________
vision by an officer or employee of the city or of a covered organiza-
7 ________________________________________________________________________
tion, the mayor or the chief executive officer of such covered organiza-
8 ________________________________________________________________________
tion shall immediately report to the authority all pertinent facts
9 ______________________________________________________
together with a statement of the action taken thereon.
10 ______________________________________________________________________
§ 4062. Additional provisions. 1. Notwithstanding any provision to the
11 ________________________________________________________________________
contrary in title six-A of article two of the local finance law, neither
12 ________________________________________________________________________
the city nor any covered organization shall file any petition authorized
13 ________________________________________________________________________
by such title six-A without the approval of the authority and the state
14 ________________________________________________________________________
comptroller. No such petition shall be filed as long as any bonds, notes
15 ________________________________________________________________________
or other obligations issued by the authority remain outstanding. Failure
16 ________________________________________________________________________
of the authority or the state comptroller to notify the city or a
17 ________________________________________________________________________
covered organization within thirty days (or such additional time, not
18 ________________________________________________________________________
exceeding thirty days, as the authority or state comptroller shall have
19 ________________________________________________________________________
notified the city or covered organization that it requires to complete
20 ________________________________________________________________________
its review) after submission to it of a petition shall be deemed to
21 ___________________________________________________________
constitute authority or state comptroller approval thereof.
22 ______________________________________________________________________
2. Nothing contained in this title shall limit the right of the city
23 ________________________________________________________________________
or any covered organization to comply with the provisions of any exist-
24 ________________________________________________________________________
ing contract within or for the benefit of the holders of any bonds or
25 _______________________________________________
notes of the city or such covered organization.
26 ______________________________________________________________________
3. Nothing contained in this title shall be construed to limit the
27 ________________________________________________________________________
power of the city or a covered organization to determine, from time to
28 ________________________________________________________________________
time, within available funds for the city or for such covered organiza-
02/16/21 33 09769-01-1
1 ________________________________________________________________________
tion, the purposes for which expenditures are to be made by the city or
2 ________________________________________________________________________
such covered organization and the amounts of such expenditures, consist-
3 ________________________________________________________________________
ent with the aggregate expenditures then permitted under the financial
4 _______________________________________________
plan for the city or such covered organization.
5 ______________________________________________________________________
4. The authority's fiscal year shall be January first through December
6 _____________
thirty-first.
7 ______________________________________________________________________
5. The authority shall adopt guidelines for procurement contracts in
8 ________________________________________________________________________
accordance with section twenty-eight hundred seventy-nine of this chap-
9 ____
ter.
10 ______________________________________________________________________
§ 4063. Declaration of need for financing assistance to the city. 1.
11 ________________________________________________________________________
The city shall determine and declare whether it requests the authority
12 ________________________________________________________________________
to undertake a financing of costs, including costs of the city school
13 ________________________________________________________________________
district or any other covered organization. Any such request shall be
14 ________________________________________________________________________
made by and through the mayor after approval by the council. Any such
15 ________________________________________________________________________
financing shall be consistent with the adopted budget and financial plan
16 ________________________________________________________________________
of the city required under sections four thousand fifty-seven and four
17 __________________________________________________
thousand fifty-eight of this title, as applicable.
18 ______________________________________________________________________
2. Upon declaration by the city of such need, the mayor shall request
19 ________________________________________________________________________
that the authority provide financing in accordance with the provisions
20 ______________
of this title.
21 ______________________________________________________________________
3. Upon approval by the authority, in its discretion in accordance
22 ________________________________________________________________________
with the provisions of this title, of such financing request, the
23 ________________________________________________________________________
authority may enter into agreements with the city, for itself or on
24 ________________________________________________________________________
behalf of the city school district or any other covered organization, as
25 ________________________________________________________________________
applicable, and the city, acting by the mayor, approved by the council,
26 ________________________________________________________________________
may enter into agreements with the authority in accordance with the
27 ________________________________________________________________________
provisions of this title as to the financing of costs by the authority,
28 ________________________________________________________________________
the application of revenues to the authority to secure its bonds, notes
02/16/21 34 09769-01-1
1 ________________________________________________________________________
or other obligations, and further assurances in respect of the authori-
2 ________________________________________________________________________
ty's receipt of such revenues and the fiscal affairs of the city,
3 ________________________________________________________________________
including but not limited to the manner of preparation of budget reports
4 ________________________________________________________________________
and financial plans as provided for in sections four thousand fifty-sev-
5 ________________________________________________________________________
en and four thousand fifty-eight of this title, as applicable. The
6 ________________________________________________________________________
authority's revenues shall not be deemed funds of the city. Any such
7 ________________________________________________________________________
agreements with the city may be pledged by the authority to secure its
8 ________________________________________________________________________
bonds, notes or other obligations and may not be modified thereafter
9 ______________________________________________
except as provided by the terms of the pledge.
10 ______________________________________________________________________
4. Such agreements with the city shall: (a) describe the particular
11 ________________________________________________________________________
financeable costs to be financed in whole or in part by the authority;
12 ________________________________________________________________________
(b) describe the plan for the financing of the costs; (c) set forth the
13 ________________________________________________________________________
method by which and by whom and the terms and conditions upon which
14 ________________________________________________________________________
money provided by the authority shall be disbursed to the city for
15 ________________________________________________________________________
itself or on behalf of the city's dependent school district or other
16 ________________________________________________________________________
covered organization, as applicable; (d) where appropriate, provide for
17 ________________________________________________________________________
the payment of such costs by the city under such contracts as shall be
18 ________________________________________________________________________
awarded by the city or for the city to make a capital contribution of
19 ________________________________________________________________________
such proceeds as city funds to another entity for the payment or
20 ________________________________________________________________________
reimbursement of such costs; and (e) require every contract entered into
21 ________________________________________________________________________
by the city, or another entity receiving funds from the city, for costs
22 ________________________________________________________________________
to be financed in whole or in part by the authority to be subject to the
23 ________________________________________________________________________
provisions of the city charter and other applicable laws governing
24 _________________________________________________________
contracts of the city or such entity, as the case may be.
25 ______________________________________________________________________
5. At least annually, commencing no more than one year after the date
26 ________________________________________________________________________
on which authority bonds, notes or other obligations are first issued,
27 ________________________________________________________________________
the mayor shall report to the authority, the comptroller, the council,
28 ________________________________________________________________________
the state comptroller, the chairs of the senate finance committee and
02/16/21 35 09769-01-1
1 ________________________________________________________________________
the assembly ways and means committee, and the director of the budget on
2 ________________________________________________________________________
the costs financed by the authority and the amount of such financing
3 ________________________________________________________________________
over the past year, which report shall describe, by reference to the
4 ________________________________________________________________________
specific items in the city's budget or financial plan, its compliance
5 __________
therewith.
6 ______________________________________________________________________
§ 4064. Bonds, notes or other obligations of the authority. 1. The
7 ________________________________________________________________________
authority shall have the power and is hereby authorized from time to
8 ________________________________________________________________________
time to issue bonds, notes or other obligations in such principal
9 ________________________________________________________________________
amounts as it may determine to be necessary pursuant to section four
10 ________________________________________________________________________
thousand sixty-three of this title to pay any financeable costs and to
11 ________________________________________________________________________
fund reserves to secure such bonds, notes or other obligations, includ-
12 ________________________________________________________________________
ing incidental expenses in connection therewith; provided, however, the
13 ________________________________________________________________________
aggregate principal amounts of such bonds, notes or other obligations
14 ________________________________________________________________________
outstanding at any one time shall not exceed one hundred seventy-five
15 ________________________________________________________________________
million dollars, and such bonds shall be tax exempt to the maximum
16 ________________________________________________________________________
extent practicable, as provided by section four thousand seventy-two of
17 ________________________________________________________________________
this title. Bonds, notes or other obligations issued by the authority
18 ________________________________________________________________________
(a) to pay reasonable costs of issuance, as determined by the authority,
19 ________________________________________________________________________
(b) to establish debt service reserve funds, (c) to refund or advance
20 ________________________________________________________________________
refund any outstanding bonds or notes of the city or the authority, or
21 ________________________________________________________________________
(d) as cash flow borrowings shall not count against the above limit on
22 ________________________________________________________________________
outstanding bonds, notes or other obligations of the authority, nor
23 ________________________________________________________________________
shall any accretion of principal of bonds that would constitute interest
24 ________________________________________________________________________
under the Internal Revenue Code of 1986, as amended, count against such
25 ________________________________________________________________________
limit; provided, however, that the aggregate principal amount of cash
26 ________________________________________________________________________
flow borrowings outstanding at any one time shall not exceed one hundred
27 ___________________________
forty-five million dollars.
02/16/21 36 09769-01-1
1 ______________________________________________________________________
2. The authority may issue bonds, notes or other obligations to refund
2 ________________________________________________________________________
bonds, notes or other obligations previously issued, but in no event
3 ________________________________________________________________________
shall the final maturity of any bonds, notes or other obligations of the
4 ________________________________________________________________________
authority be later than June thirtieth, two thousand thirty-seven. No
5 ________________________________________________________________________
bond of the authority shall mature more than thirty years from the date
6 ________________________________________________________________________
of its issue, or after June thirtieth, two thousand thirty-seven, which-
7 _____________________
ever date is earlier.
8 ______________________________________________________________________
3. Bonds, notes or other obligations of the authority may be issued,
9 ________________________________________________________________________
amortized, redeemed and refunded without regard to the provisions of the
10 __________________
local finance law.
11 ______________________________________________________________________
4. The directors may delegate to the chairperson or other director or
12 ________________________________________________________________________
officer of the authority the power to set the financial terms of bonds,
13 ___________________________
notes or other obligations.
14 ______________________________________________________________________
5. The authority in its sole discretion shall determine that the issu-
15 ________________________________________________________________________
ance of its bonds, notes or other obligations is appropriate. Bonds,
16 ________________________________________________________________________
notes or other obligations shall be authorized by resolution of the
17 ________________________________________________________________________
authority. Bonds shall bear interest at such fixed or variable rates and
18 ________________________________________________________________________
shall be in such denominations, be in such form, either coupon or regis-
19 ________________________________________________________________________
tered, be sold at such public or private sale, be executed in such
20 ________________________________________________________________________
manner, be denominated in United States currency, be payable in such
21 ________________________________________________________________________
medium of payment, at such place and be subject to such terms of redemp-
22 ________________________________________________________________________
tion as the authority may provide in such resolution. No bonds, notes
23 ________________________________________________________________________
or other obligations of the authority may be sold at private sale unless
24 ________________________________________________________________________
such sale and the terms thereof have been approved in writing by: (a)
25 ________________________________________________________________________
the state comptroller where such sale is not to the state comptroller;
26 ________________________________________________________________________
or (b) the director of the budget, where such sale is to the state comp-
27 ________
troller.
02/16/21 37 09769-01-1
1 ______________________________________________________________________
6. Any resolution or resolutions authorizing bonds, notes or other
2 ________________________________________________________________________
obligations or any issue of bonds, notes or other obligations may
3 ________________________________________________________________________
contain provisions which may be a part of the contract with the holders
4 ________________________________________________________________________
of the bonds, notes or other obligations thereby authorized as to: (a)
5 ________________________________________________________________________
pledging all or part of the authority's revenues, together with any
6 ________________________________________________________________________
other moneys, securities or contracts, to secure the payment of the
7 ________________________________________________________________________
bonds, notes or other obligations, subject to such agreements with bond-
8 ________________________________________________________________________
holders as may then exist; (b) the setting aside of reserves and the
9 ________________________________________________________________________
creation of sinking funds and the regulation and disposition thereof;
10 ________________________________________________________________________
(c) limitations on the purposes to which the proceeds from the sale of
11 ________________________________________________________________________
bonds, notes or other obligations may be applied; (d) limitations on the
12 ________________________________________________________________________
issuance of additional bonds, notes or other obligations, the terms upon
13 ________________________________________________________________________
which additional bonds, notes or other obligations may be issued and
14 ________________________________________________________________________
secured and the refunding of bonds, notes or other obligations; (e) the
15 ________________________________________________________________________
procedure, if any, by which the terms of any contract with bondholders
16 ________________________________________________________________________
may be amended or abrogated, including the proportion of bondholders
17 ________________________________________________________________________
which must consent thereto and the manner in which such consent may be
18 ________________________________________________________________________
given; (f) vesting in a trustee or trustees such properties, rights,
19 ________________________________________________________________________
powers and duties in trust as the authority may determine, which may
20 ________________________________________________________________________
include any or all of the rights, powers and duties of the trustee
21 ________________________________________________________________________
appointed by the bondholders pursuant to section four thousand sixty-
22 ________________________________________________________________________
five of this title and limiting or abrogating the rights of the bond-
23 ________________________________________________________________________
holders to appoint a trustee under such section or limiting the rights,
24 ________________________________________________________________________
duties and powers of such trustee; and (g) defining the acts or omis-
25 ________________________________________________________________________
sions of the authority to act which may constitute a default in the
26 ________________________________________________________________________
obligations and duties of the authority to the bondholders and providing
27 ________________________________________________________________________
for the rights and remedies of the bondholders in the event of such
28 ________________________________________________________________________
default, including as a matter of right the appointment of a receiver;
02/16/21 38 09769-01-1
1 ________________________________________________________________________
provided, however, that such acts or omissions of the authority to act
2 ________________________________________________________________________
which may constitute a default and such rights and remedies shall not be
3 ________________________________________________________________________
inconsistent with the general laws of the state and other provisions of
4 ___________
this title.
5 ______________________________________________________________________
7. In addition to the powers conferred upon the authority in this
6 ________________________________________________________________________
section to secure its bonds, notes or other obligations, the authority
7 ________________________________________________________________________
shall have power in connection with the issuance of bonds, notes or
8 ________________________________________________________________________
other obligations to enter into such agreements for the benefit of the
9 ________________________________________________________________________
bondholders as the authority may deem necessary, convenient or desirable
10 ________________________________________________________________________
concerning the use or disposition of its revenues or other moneys,
11 ________________________________________________________________________
including the entrusting, pledging or creation of any other security
12 ________________________________________________________________________
interest in any such revenues, moneys and the doing of any act, includ-
13 ________________________________________________________________________
ing refraining from doing any act, which the authority would have the
14 ________________________________________________________________________
right to do in the absence of such agreements. The authority shall have
15 ________________________________________________________________________
power to enter into amendments of any such agreements within the powers
16 ________________________________________________________________________
granted to the authority by this title and to perform such agreements.
17 ________________________________________________________________________
The provisions of any such agreements may be made a part of the contract
18 _______________________________________________________________________
with the holders of bonds, notes or other obligations of the authority.
19 ______________________________________________________________________
8. Whenever a series of bonds, notes or other obligations of the
20 ________________________________________________________________________
authority is issued pursuant to this section for purposes other than
21 ________________________________________________________________________
deficit financing authorized by section four thousand fifty-eight of
22 ________________________________________________________________________
this title, the payment of the proceeds of such series of bonds, notes
23 ________________________________________________________________________
or other obligations to the city may be, at the request of the authori-
24 ________________________________________________________________________
ty, evidenced by obligations of the city issued in accordance with
25 ________________________________________________________________________
applicable provisions of the state constitution and local finance law
26 ________________________________________________________________________
then in effect at the time any such obligations are issued, provided
27 ________________________________________________________________________
that the principal amount of the authority's bonds, notes or other obli-
28 ________________________________________________________________________
gations issued in connection with any such exchange shall not exceed the
02/16/21 39 09769-01-1
1 ________________________________________________________________________
principal amount of such obligations of the city and accrued interest
2 ________________________________________________________________________
thereon at the stated rate to the date of such exchange, and provided
3 ________________________________________________________________________
further, however, that the principal payments on any such issue of city
4 ________________________________________________________________________
obligations shall in no event be scheduled to fall on a date later than
5 ________________________________________________________________________
the date on which falls a corresponding amount of scheduled principal
6 ________________________________________________________________________
payments on the series of bonds, notes or other obligations of the
7 ________________________________________________________________________
authority originally issued to provide such proceeds or issued to refund
8 __________________________________________________________________
bonds, notes or other obligations issued to provide such proceeds.
9 ______________________________________________________________________
9. Notwithstanding any provision of the uniform commercial code to the
10 ________________________________________________________________________
contrary, any pledge of or other security interest in revenues, moneys,
11 ________________________________________________________________________
accounts, contract rights, general intangibles or other personal proper-
12 ________________________________________________________________________
ty made or created by the authority shall be valid, binding and
13 ________________________________________________________________________
perfected from the time when such pledge is made or other security
14 ________________________________________________________________________
interest attaches without any physical delivery of the collateral or
15 ________________________________________________________________________
further act, and the lien of any such pledge or other security interest
16 ________________________________________________________________________
shall be valid, binding and perfected against all parties having claims
17 ________________________________________________________________________
of any kind in tort, contract or otherwise against the authority irre-
18 ________________________________________________________________________
spective of whether such parties have notice thereof. No instrument by
19 ________________________________________________________________________
which such a pledge or security interest is created nor any financing
20 ____________________________________________________________
statement need be recorded or filed to be valid and binding.
21 ______________________________________________________________________
10. Whether or not the bonds, notes or other obligations of the
22 ________________________________________________________________________
authority are of such form and character as to be negotiable instruments
23 ________________________________________________________________________
under the terms of the uniform commercial code, the bonds, notes or
24 ________________________________________________________________________
other obligations are hereby made negotiable instruments within the
25 ________________________________________________________________________
meaning of and for all the purposes of the uniform commercial code,
26 _____________________________________________________________
subject only to the provisions of the bonds for registration.
27 ______________________________________________________________________
11. Neither the directors of the authority nor any person executing
28 ________________________________________________________________________
bonds, notes or other obligations shall be liable personally thereon or
02/16/21 40 09769-01-1
1 ________________________________________________________________________
be subject to any personal liability or accountability solely by reason
2 ________________________________________________________________________
of the issuance thereof. The bonds, notes or other obligations of the
3 ________________________________________________________________________
authority shall not be a debt of either the state or the city, and
4 ________________________________________________________________________
neither the state nor the city shall be liable thereon, nor shall they
5 ________________________________________________________________________
be payable out of any funds other than those of the authority; and such
6 ________________________________________________________________________
bonds, notes or other obligations shall contain on the face thereof a
7 _________________________
statement to such effect.
8 ______________________________________________________________________
12. The authority, subject to such agreements with bondholders as then
9 ________________________________________________________________________
may exist, shall have power to purchase bonds, notes or other obli-
10 ________________________________________________________________________
gations of the authority out of any moneys available therefor, which
11 ____________________________
shall thereupon be canceled.
12 ______________________________________________________________________
§ 4065. Remedies of bondholders. Subject to any resolution or resol-
13 ________________________________________________________________________
utions adopted pursuant to paragraph (f) of subdivision six of section
14 _______________________________________
four thousand sixty-four of this title:
15 ______________________________________________________________________
1. In the event that the authority shall default in the payment of
16 ________________________________________________________________________
principal of or interest on any issue of bonds, notes or other obli-
17 ________________________________________________________________________
gations after the same shall become due, whether at maturity or upon
18 ________________________________________________________________________
call for redemption, and such default shall continue for a period of
19 ________________________________________________________________________
thirty days, or shall default in any agreement made with the holders of
20 ________________________________________________________________________
any issue of bonds, notes, or other obligations, the holders of at least
21 ________________________________________________________________________
twenty-five per centum in aggregate principal amount of the bonds, notes
22 ________________________________________________________________________
or other obligations of such issue then outstanding, by instrument or
23 ________________________________________________________________________
instruments filed in the office of the clerk of the county and proved or
24 ________________________________________________________________________
acknowledged in the same manner as a deed to be recorded, may appoint a
25 ________________________________________________________________________
trustee to represent the holders of such bonds for the purpose provided
26 ________________
in this section.
27 ______________________________________________________________________
2. Such trustee may, and upon written request of the holders of at
28 ________________________________________________________________________
least twenty-five per centum in principal amount of such bonds, notes or
02/16/21 41 09769-01-1
1 ________________________________________________________________________
other obligations outstanding shall, in his or her or its own name: (a)
2 ________________________________________________________________________
by action or proceeding in accordance with the civil practice law and
3 ________________________________________________________________________
rules, enforce all rights of the bondholders and require the authority
4 ________________________________________________________________________
to carry out any other agreements with the holders of such bonds, notes
5 ________________________________________________________________________
or other obligations and to perform its duties under this title; (b)
6 ________________________________________________________________________
bring an action or proceeding upon such bonds, notes or other obli-
7 ________________________________________________________________________
gations; (c) by action or proceeding, require the authority to account
8 ________________________________________________________________________
as if it were the trustee of an express trust for the holder of such
9 ________________________________________________________________________
bonds, notes or other obligations; and (d) by action or proceeding,
10 ________________________________________________________________________
enjoin any acts or things which may be unlawful or in violation of the
11 ________________________________________________________________
rights of the holders of such bonds, notes or other obligations.
12 ______________________________________________________________________
3. Such trustee shall, in addition to the provisions of subdivisions
13 ________________________________________________________________________
one and two of this section, have and possess all of the powers neces-
14 ________________________________________________________________________
sary or appropriate for the exercise of any functions specifically set
15 ________________________________________________________________________
forth in this section or incident to the general representation of bond-
16 __________________________________________________________
holders in the enforcement and protection of their rights.
17 ______________________________________________________________________
4. The supreme court of the county shall have jurisdiction of any
18 __________________________________________________________________
action or proceeding by the trustee on behalf of such bondholders.
19 ______________________________________________________________________
§ 4066. Intercept of city tax revenues, school district tax revenues
20 ________________________________________________________________________
and state aid revenues. 1. The state comptroller, in accordance with
21 ________________________________________________________________________
section twelve hundred sixty-one of the tax law, shall pay at least
22 ________________________________________________________________________
monthly to the authority, (a) for the period beginning upon the effec-
23 ________________________________________________________________________
tive date of this title through December thirty-first, two thousand
24 ________________________________________________________________________
fifty-one, city tax revenues and, (b) for the period beginning January
25 ________________________________________________________________________
first, two thousand twenty-two, during which the county sets aside net
26 ________________________________________________________________________
collections for educational purposes pursuant to the authority of subdi-
27 ________________________________________________________________________
vision (a) of section twelve hundred sixty-two of the tax law, school
28 ________________________________________________________________________
district tax revenues. During the period beginning on the effective date
02/16/21 42 09769-01-1
1 ________________________________________________________________________
of this title through December thirty-first, two thousand fifty-one, the
2 ________________________________________________________________________
county shall impose such taxes pursuant to the authority of subdivision
3 ________________________________________________________________________
(a) of section twelve hundred ten of the tax law at a rate of no less
4 ________________________________________________________________________
than three percent. In addition, during such periods, respectively, the
5 ________________________________________________________________________
state comptroller shall pay to the authority (i) city tax revenues
6 ________________________________________________________________________
pursuant to the then current agreement under subdivision (c) of section
7 ________________________________________________________________________
twelve hundred sixty-two of the tax law among the county and the cities
8 ________________________________________________________________________
in the county and (ii) school district tax revenues; provided however,
9 ________________________________________________________________________
in the event that such agreement among the county and such cities shall
10 ________________________________________________________________________
have expired or been terminated during such period, notwithstanding any
11 ________________________________________________________________________
other provision of general, special or local law to the contrary, the
12 ________________________________________________________________________
state comptroller shall make such payments of city tax revenues to the
13 ________________________________________________________________________
authority pursuant to the provisions of paragraph two of subdivision (d)
14 ___________________________________________________
of section twelve hundred sixty-two of the tax law.
15 ______________________________________________________________________
2. Commencing on the effective date of this title, and until December
16 ________________________________________________________________________
thirty-first, two thousand fifty-one, the state comptroller shall pay
17 ____________________________________
state aid revenues to the authority.
18 ______________________________________________________________________
3. The city shall have no right, title, or interest in the city tax
19 ________________________________________________________________________
revenues or state aid revenues paid to the authority pursuant to this
20 ________________________________________________________________________
section; and the city school district shall have no right, title, or
21 ________________________________________________________________________
interest in the school district tax revenues paid to the authority
22 _________________________
pursuant to this section.
23 ______________________________________________________________________
§ 4067. Resources of the authority. 1. Subject to the provisions of
24 ________________________________________________________________________
this title, the directors of the authority shall receive, accept,
25 ________________________________________________________________________
invest, administer, expend and disburse for its corporate purposes all
26 ________________________________________________________________________
moneys of the authority from whatever source derived including: (a)
27 ________________________________________________________________
revenues; and (b) proceeds of bonds, notes or other obligations.
02/16/21 43 09769-01-1
1 ______________________________________________________________________
2. Subject to the provisions of any contract with holders of bonds,
2 ________________________________________________________________________
notes or other obligations revenues of the authority shall be paid to
3 _______________________________________________________________
the authority and shall not be commingled with any other money.
4 ______________________________________________________________________
3. The money in any of the authority's accounts shall be paid out on
5 ________________________________________________________________________
checks signed by the treasurer of the authority, or by other lawful and
6 ________________________________________________________________________
appropriate means such as wire or electronic transfer, on requisitions
7 ________________________________________________________________________
of the chairperson of the authority or of such other officer as the
8 ________________________________________________________________________
directors shall authorize to make such requisition, or pursuant to a
9 ___________________________________
bond resolution or trust indenture.
10 ______________________________________________________________________
4. All deposits of authority money shall be secured by obligations of
11 ________________________________________________________________________
the United States or of the state or of the city at a market value at
12 ________________________________________________________________________
least equal at all times to the amount of the deposit, and all banks and
13 ________________________________________________________________________
trust companies are authorized to give such security for such deposits.
14 ________________________________________________________________________
The authority shall have the power, notwithstanding the provisions of
15 ________________________________________________________________________
this section, to contract with the holders of any of its bonds, notes or
16 ________________________________________________________________________
other obligations as to the custody, collection, securing, investment
17 ________________________________________________________________________
and payment of any money of the authority or any money held in trust or
18 ________________________________________________________________________
otherwise for the payment of bonds, notes or other obligations or in any
19 ________________________________________________________________________
way to secure bonds, notes or other obligations, and to carry out any
20 ________________________________________________________________________
such contract notwithstanding that such contract may be inconsistent
21 ________________________________________________________________________
with the other provisions of this title. Money held in trust or other-
22 ________________________________________________________________________
wise for the payment of bonds, notes or other obligations or in any way
23 ________________________________________________________________________
to secure bonds, notes or other obligations, and deposits of such money,
24 ________________________________________________________________________
may be secured in the same manner as money of the authority, and all
25 ________________________________________________________________________
banks and trust companies are authorized to give such security for such
26 _________
deposits.
27 ______________________________________________________________________
5. Revenues of the authority shall be applied in the following order
28 ________________________________________________________________________
of priority: first to pay debt service or for set asides to pay debt
02/16/21 44 09769-01-1
1 ________________________________________________________________________
service on the authority's bonds, notes, or other obligations and to
2 ________________________________________________________________________
replenish any reserve funds securing such bonds, notes or other obli-
3 ________________________________________________________________________
gations of the authority, in accordance with the provision of any inden-
4 ________________________________________________________________________
ture or bond resolution of the authority; then to pay the authority's
5 ________________________________________________________________________
operating expenses not otherwise provided for; then to pay to the state
6 ________________________________________________________________________
pursuant to paragraph three of subdivision (c) of section twelve hundred
7 ________________________________________________________________________
sixty-one of the tax law; and then, subject to the authority's agreement
8 ________________________________________________________________________
with the city, for itself or on behalf of the city's dependent school
9 ________________________________________________________________________
district and any other covered organization, to transfer as frequently
10 ________________________________________________________________________
as practicable the balance of revenues not required to meet contractual
11 ________________________________________________________________________
or other obligations of the authority to the city or the city's depend-
12 _____________________________________________________________________
ent school district as provided in subdivision seven of this section.
13 ______________________________________________________________________
6. (a) Any such payment of state aid revenues to the authority shall
14 ________________________________________________________________________
not obligate the state to make available, nor entitle the city to
15 __________________________________
receive, any additional state aid.
16 ______________________________________________________________________
(b) Nothing contained in this title shall be construed to create a
17 ________________________________________________________________________
debt of the state within the meaning of any constitutional or statutory
18 ________________________________________________________________________
provisions. Any provision with respect to state aid or state aid reven-
19 ________________________________________________________________________
ues shall be deemed executory only to the extent of moneys available,
20 ________________________________________________________________________
and no liability shall be incurred by the state beyond the moneys avail-
21 ________________________________________________________________________
able for that purpose, and any such payment by the comptroller of state
22 ________________________________________________________________________
aid revenues is subject to annual appropriation of state aid by the
23 __________________
state legislature.
24 ______________________________________________________________________
(c) Nothing contained in this title shall be deemed to restrict the
25 ________________________________________________________________________
right of the state to amend, repeal, modify, or otherwise alter section
26 ________________________________________________________________________
fifty-four of the state finance law or any provision relating to state
27 ________________________________________________________________________
aid to municipalities. The authority shall include within any resol-
28 ________________________________________________________________________
ution, contract, or agreement with holders of its bonds, notes or other
02/16/21 45 09769-01-1
1 ________________________________________________________________________
obligations a provision which states that no default occurs as a result
2 ________________________________________________________________________
of the state's exercising its right to amend, repeal, modify, or other-
3 ________________________________________________________________________
wise alter section fifty-four of the state finance law or any other
4 __________________________________________________
provision relating to state aid to municipalities.
5 ______________________________________________________________________
7. On a monthly basis, the authority shall prepare and provide to the
6 ________________________________________________________________________
city and the city's dependent school district a detailed separate
7 ________________________________________________________________________
accounting of all revenues received and payments and debt service set
8 ________________________________________________________________________
asides made, as attributable to the city and the city's dependent school
9 ________________________________________________________________________
district. Such accounting shall reflect: (a) the amount of state aid
10 ________________________________________________________________________
revenues, city tax revenues and school district tax revenues received
11 ________________________________________________________________________
during such month; (b) the respective portion of debt service paid or
12 ________________________________________________________________________
set aside during such month by the authority for its notes, bonds and
13 ________________________________________________________________________
other obligations attributable to the city and the city's dependent
14 ________________________________________________________________________
school district; (c) the respective portion of reserve fund replenish-
15 ________________________________________________________________________
ment made or set aside during such month by the authority in connection
16 ________________________________________________________________________
with its notes, bonds and other obligations attributable to the city and
17 _________________________________________
the city's dependent school district; and
18 ______________________________________________________________________
(d) the respective portion of administrative expenses of the authority
19 ________________________________________________________________________
paid or set aside during such month by the authority attributable to the
20 ________________________________________________________________________
city and the city's dependent school district. As soon as practicable
21 ________________________________________________________________________
after each monthly payment or set aside, the authority shall make
22 ________________________________________________________________________
respective payments of the remaining monthly balance or revenues to the
23 ________________________________________________________________________
city and the city's dependent school district in accordance with such
24 ________________________________________________________________________
separate accounting. To the extent that such respective monthly payments
25 ________________________________________________________________________
of the remaining balance of revenues result in an overpayment or under-
26 ________________________________________________________________________
payment to the city or the city's dependent school district, the author-
27 ________________________________________________________________________
ity shall in the immediately subsequent month, after making debt service
28 ________________________________________________________________________
payments or debt service set asides, replenishing any reserve funds and
02/16/21 46 09769-01-1
1 ________________________________________________________________________
paying the administrative expenses of the authority for such month, make
2 ________________________________________________________________________
an adjustment in favor of the city or the city's dependent school
3 ________________________________________________________________________
district, as the case may be, before determining the remaining amount of
4 ________________________________________________________________________
the balance of revenues for such subsequent month and paying such
5 ________________________________________________________________________
remaining monthly balance of revenues to the city and the city's depend-
6 ________________________________________________________________________
ent school district. Nothing in this title shall be deemed to restrict
7 ________________________________________________________________________
the authority of the state comptroller and the commissioner of taxation
8 ________________________________________________________________________
and finance to adjust for overpayments or underpayments pursuant to the
9 ________
tax law.
10 ______________________________________________________________________
§ 4068. Agreement with the state. 1. The state does hereby pledge to
11 ________________________________________________________________________
and agree with the holders of any issue of bonds, notes or other obli-
12 ________________________________________________________________________
gations issued by the authority pursuant to this title and secured by
13 ________________________________________________________________________
such a pledge that the state will not limit, alter or impair the rights
14 ________________________________________________________________________
hereby vested in the authority to fulfill the terms of any agreements
15 ________________________________________________________________________
made with such holders pursuant to this title, or in any way impair the
16 ________________________________________________________________________
rights and remedies of such holders or the security for such bonds,
17 ________________________________________________________________________
notes or other obligations until such bonds, notes or other obligations
18 ________________________________________________________________________
together with the interest thereon and all costs and expenses in
19 ________________________________________________________________________
connection with any action or proceeding by or on behalf of such hold-
20 ________________________________________________________________________
ers, are fully paid and discharged. The authority is authorized to
21 ________________________________________________________________________
include this pledge and agreement of the state in any agreement with the
22 ________________________________________________________________________
holders of such bonds, notes or other obligations. Nothing contained in
23 ________________________________________________________________________
this title shall be deemed to restrict any right of the state to amend,
24 ________________________________________________________________________
modify, repeal or otherwise alter: (a) section fifty-four of the state
25 ________________________________________________________________________
finance law or any other provision relating to state aid, or (b) stat-
26 ________________________________________________________________________
utes imposing or relating to taxes or fees, or appropriations relating
27 ________
thereto.
02/16/21 47 09769-01-1
1 ______________________________________________________________________
2. The authority shall not include within any resolution, contract or
2 ________________________________________________________________________
agreement with holders of the bonds, notes or other obligations issued
3 ________________________________________________________________________
under this title any provision which provides that a default occurs as a
4 ________________________________________________________________________
result of the state exercising its right to amend, repeal, modify or
5 ________________________________________________________________________
otherwise alter: (a) section fifty-four of the state finance law or any
6 ________________________________________________________________________
other provision relating to state aid; or (b) statutes imposing or
7 ________________________________________________________________________
relating to taxes, fees, or appropriations relating thereto. Nothing in
8 ________________________________________________________________________
this title shall be deemed to obligate the state to make any payments or
9 ________________________________________________________________________
impose any taxes to satisfy the debt service obligations of the authori-
10 ___
ty.
11 ______________________________________________________________________
§ 4069. Agreement with the county. 1. The county does hereby covenant
12 ________________________________________________________________________
and agree with the holders of any issue of bonds, notes or other obli-
13 ________________________________________________________________________
gations issued by the authority pursuant to this title and secured by
14 ________________________________________________________________________
such covenant and agreement that the county will not limit, alter or
15 ________________________________________________________________________
impair the rights hereby vested in the authority to fulfill the terms of
16 ________________________________________________________________________
any agreements made with such holders pursuant to this title, or in any
17 ________________________________________________________________________
way impair the rights and remedies of such holders or the security for
18 ________________________________________________________________________
such bonds, notes or other obligations until such bonds, notes or other
19 ________________________________________________________________________
obligations, together with the interest thereon and all costs and
20 ________________________________________________________________________
expenses in connection with any action or proceeding by or on behalf of
21 ________________________________________________________________________
such holders are fully paid and discharged. The authority is authorized
22 ________________________________________________________________________
to include this covenant and agreement of the county in any agreement
23 ________________________________________________________________________
with the holders of such bonds, notes or other obligations. Nothing
24 ________________________________________________________________________
contained in this title shall be deemed to restrict any right of the
25 ________________________________________________________________________
county to amend, modify, repeal or otherwise alter any local laws, ordi-
26 ________________________________________________________________________
nances or resolutions imposing or relating to taxes or fees, or appro-
27 ________________________________________________________________________
priations relating to such taxes or fees, or setting aside net
28 ________________________________________________________________________
collections for educational purposes pursuant to the authority of subdi-
02/16/21 48 09769-01-1
1 ________________________________________________________________________
vision (a) of section twelve hundred sixty-two of the tax law, so long
2 ________________________________________________________________________
as, after giving effect to such amendment, modification or other alter-
3 ________________________________________________________________________
ation, the aggregate amount as then projected by the authority of (i)
4 ________________________________________________________________________
sales and compensating use taxes to be imposed pursuant to the authority
5 ________________________________________________________________________
of section twelve hundred ten of the tax law and paid to the city and
6 ________________________________________________________________________
(ii) all net collections for educational purposes to be set aside by the
7 ________________________________________________________________________
county pursuant to the authority of subdivision (a) of section twelve
8 ________________________________________________________________________
hundred sixty-two of the tax law and paid to the city's dependent school
9 ________________________________________________________________________
district during each of the authority's fiscal years following the
10 ________________________________________________________________________
effective date of such amendment, modification or other alteration shall
11 ________________________________________________________________________
be not less than two hundred percent of maximum annual debt service on
12 ________________________________________________________________________
authority bonds then outstanding. Notwithstanding anything to the
13 ________________________________________________________________________
contrary in this section, the county further agrees that it shall impose
14 ________________________________________________________________________
taxes pursuant to the authority of subdivision (a) of section twelve
15 _____________________________________________________________________
hundred ten of the tax law at the rate of no less than three percent.
16 ______________________________________________________________________
17 ________________________________________________________________________
18 ________________________________________________________________________
19 ________________________________________________________________________
result of the county exercising its right to amend, repeal, modify or
20 ________________________________________________________________________
otherwise alter such taxes, fees or appropriations or such net
21 ________________________________________________________________________
collections set aside for educational purposes. Nothing in this title
22 ________________________________________________________________________
shall be deemed to obligate the county to make any payments or impose
23 ________________________________________________________________________
any taxes or set aside net collections for educational purposes pursuant
24 ________________________________________________________________________
to the authority of subdivision (a) of section twelve hundred sixty-two
25 ________________________________________________________________________
of the tax law; except that the county shall impose taxes pursuant to
26 ________________________________________________________________________
the authority of subdivision (a) of section twelve hundred ten of the
27 __________________________________________________
tax law at the rate of no less than three percent.
02/16/21 49 09769-01-1
1 ______________________________________________________________________
§ 4070. Agreement with the city. 1. The city hereby covenants and
2 ________________________________________________________________________
agrees with the holders of bonds, notes or other obligations issued by
3 ________________________________________________________________________
the authority pursuant to this title, that the city will not take
4 ________________________________________________________________________
actions which limit, alter or impair the rights and remedies of such
5 ________________________________________________________________________
holders or the security for such bonds, notes or other obligations until
6 ________________________________________________________________________
such bonds, notes or other obligations, together with the interest ther-
7 ________________________________________________________________________
eon and all costs and expenses in connection with any action or proceed-
8 ________________________________________________________________________
ing by or on behalf of such holders are fully paid and discharged. The
9 ________________________________________________________________________
authority is authorized to include this covenant and agreement of the
10 ________________________________________________________________________
city in any agreement with the holders of such bonds, notes or other
11 ________________________________________________________________________
obligations. Nothing contained in this title shall be deemed to
12 ________________________________________________________________________
restrict the right of the city to amend, modify, repeal or otherwise
13 ________________________________________________________________________
alter any local law, ordinance or resolution imposing or relating to
14 ________________________________________________________________________
taxes or fees, or appropriations relating thereto, including sales and
15 ________________________________________________________________________
compensating use taxes imposed pursuant to the authority of section
16 ________________________________________________________________________
twelve hundred ten of the tax law, so long as, after giving effect to
17 ________________________________________________________________________
such amendment, modification or other alteration, the aggregate amount
18 ________________________________________________________________________
as then projected by the authority of (i) sales and compensating use
19 ________________________________________________________________________
taxes to be imposed pursuant to the authority of section twelve hundred
20 ________________________________________________________________________
ten of the tax law and paid to the city and (ii) all net collections for
21 ________________________________________________________________________
educational purposes to be set aside by the county pursuant to the
22 ________________________________________________________________________
authority of subdivision (a) of section twelve hundred sixty-two of the
23 ________________________________________________________________________
tax law and paid to the city's dependent school district during each of
24 ________________________________________________________________________
the authority's fiscal years thereafter, shall be not less than two
25 ________________________________________________________________________
hundred percent of maximum annual debt service on authority bonds then
26 ________________________________________________________________________
outstanding. The city further covenants and agrees that (i) it will not
27 ________________________________________________________________________
take any action, including the imposition of sales and compensating use
28 ________________________________________________________________________
taxes preempting the county's taxes, to terminate or alter the terms of
02/16/21 50 09769-01-1
1 ________________________________________________________________________
the agreement among the county, the city and the other cities in the
2 ________________________________________________________________________
county under subdivision (c) of section twelve hundred sixty-two of the
3 ________________________________________________________________________
tax law that would reduce or eliminate the amount of net collections
4 ________________________________________________________________________
that the county distributes or is to distribute to the city prior to
5 ________________________________________________________________________
June thirtieth, two thousand thirty-seven, without the authority's prior
6 ________________________________________________________________________
approval, and (ii) if the city imposes sales and compensating use taxes,
7 ________________________________________________________________________
it shall do so pursuant to subdivision (a) of section twelve hundred ten
8 ______________________________________________________________
of the tax law at the maximum rate authorized by such section.
9 ______________________________________________________________________
10 ________________________________________________________________________
11 ________________________________________________________________________
12 ________________________________________________________________________
result of the city exercising its right to amend, repeal, modify or
13 ________________________________________________________________________
otherwise alter such taxes, fees or appropriations. Nothing in this
14 ________________________________________________________________________
title shall be deemed to obligate the city to make any payments or
15 ________________________________________________________________________
impose any taxes; except that, if the city imposes sales and compensat-
16 ________________________________________________________________________
ing use taxes, it shall do so pursuant to subdivision (a) of section
17 ________________________________________________________________________
twelve hundred ten of the tax law at the maximum rate authorized by such
18 ________
section.
19 ______________________________________________________________________
§ 4071. Bonds, notes or other obligations legal for investment and
20 ________________________________________________________________________
deposit. Bonds, notes or other obligations of the authority are hereby
21 ________________________________________________________________________
made securities in which all public officers and bodies of the state and
22 ________________________________________________________________________
all public corporations, municipalities and municipal subdivisions, all
23 ________________________________________________________________________
insurance companies and associations and other persons carrying on an
24 ________________________________________________________________________
insurance business, all banks, bankers, trust companies, savings banks
25 ________________________________________________________________________
and savings associations including savings and loan associations, build-
26 ________________________________________________________________________
ing and loan associations, investment companies and other persons carry-
27 ________________________________________________________________________
ing on a banking business, all administrators, conservators, guardians,
28 ________________________________________________________________________
executors, trustees and other fiduciaries, and all other persons whatso-
02/16/21 51 09769-01-1
1 ________________________________________________________________________
ever who are now or may hereafter be authorized to invest in bonds,
2 ________________________________________________________________________
notes or other obligations of the state, may properly and legally invest
3 ________________________________________________________________________
funds, including capital, in their control or belonging to them. Such
4 ________________________________________________________________________
bonds, notes or other obligations are also hereby made securities which
5 ________________________________________________________________________
may be deposited with and may be received by all public officers and
6 ________________________________________________________________________
bodies of the state and all municipalities and public corporations for
7 ________________________________________________________________________
any purpose for which the deposit of bonds, notes or other obligations
8 ___________________________________________________
of the state is now or may hereafter be authorized.
9 ______________________________________________________________________
§ 4072. Tax exemption. 1. It is hereby determined that the creation of
10 ________________________________________________________________________
the authority and the carrying out of its corporate purposes are in all
11 ________________________________________________________________________
respects for the benefit of the people of the state of New York and are
12 ________________________________________________________________________
public purposes. Accordingly, the authority shall be regarded as
13 ________________________________________________________________________
performing an essential governmental function in the exercise of the
14 ________________________________________________________________________
powers conferred upon it by this title. The property of the authority,
15 ________________________________________________________________________
its income and its operations shall be exempt from taxation, assess-
16 ________________________________________________________________________
ments, special assessments and ad valorem levies. The authority shall
17 ________________________________________________________________________
not be required to pay any fees, taxes, special ad valorem levies or
18 ________________________________________________________________________
assessments of any kind, whether state or local, including, but not
19 ________________________________________________________________________
limited to, fees, taxes, special ad valorem levies or assessments on
20 ________________________________________________________________________
real property, franchise taxes, sales taxes or other taxes, upon income
21 ________________________________________________________________________
or with respect to any property owned by it or under its jurisdiction,
22 ________________________________________________________________________
control or supervision, or upon the uses thereof, or upon or with
23 ________________________________________________________________________
respect to its activities or operations in furtherance of the powers
24 ________________________________________________________________________
conferred upon it by this title, or upon or with respect to any fares,
25 ________________________________________________________________________
tolls, rentals, rates, charges, fees, revenues or other income received
26 _________________
by the authority.
27 ______________________________________________________________________
2. Any bonds, notes or other obligations issued pursuant to this
28 _______________________________________________________________
title, and the income therefrom, shall be exempt from taxation.
02/16/21 52 09769-01-1
1 ______________________________________________________________________
§ 4073. Actions against the authority. 1. Except in an action for
2 ________________________________________________________________________
wrongful death, no action or proceeding shall be prosecuted or main-
3 ________________________________________________________________________
tained against the authority for personal injury or damage to real or
4 ________________________________________________________________________
personal property alleged to have been sustained by reason of the negli-
5 ________________________________________________________________________
gence or wrongful act of the authority or of any director, officer,
6 ________________________________________________________________________
agent or employee thereof, unless: (a) it shall appear by and as an
7 ________________________________________________________________________
allegation in the complaint or moving papers that a notice of claim
8 ________________________________________________________________________
shall have been made and served upon the authority, within the time
9 ________________________________________________________________________
limit prescribed by and in compliance with section fifty-e of the gener-
10 ________________________________________________________________________
al municipal law; (b) it shall appear by and as an allegation in the
11 ________________________________________________________________________
complaint or moving papers that at least thirty days have elapsed since
12 ________________________________________________________________________
the service of such notice and that adjustment or payment thereof has
13 ________________________________________________________________________
been neglected or refused; and (c) the action or proceeding shall be
14 ________________________________________________________________________
commenced within one year after the happening of the event upon which
15 ________________________________________________________________________
the claim is based. An action against the authority for wrongful death
16 ________________________________________________________________________
shall be commenced in accordance with the notice of claim and time limi-
17 __________________________________________________________________
tation provisions of title eleven of article nine of this chapter.
18 ______________________________________________________________________
2. Wherever a notice of claim is served upon the authority, it shall
19 ________________________________________________________________________
have the right to demand an examination of the claimant relative to the
20 ________________________________________________________________________
occurrence and extent of the injuries or damages for which claim is
21 ________________________________________________________________________
made, in accordance with the provisions of section fifty-h of the gener-
22 _________________
al municipal law.
23 ______________________________________________________________________
3. The authority may require any person presenting for settlement an
24 ________________________________________________________________________
account or claim for any cause whatever against the authority to be
25 ________________________________________________________________________
sworn before a director, counsel or an attorney, officer or employee
26 ________________________________________________________________________
thereof designated for such purpose, concerning such account or claim
27 ________________________________________________________________________
and when so sworn, to answer orally as to any facts relative to such
02/16/21 53 09769-01-1
1 ________________________________________________________________________
account or claim. The authority shall have power to settle or adjust
2 ________________________________________________
any claims in favor of or against the authority.
3 ______________________________________________________________________
4. The rate of interest to be paid by the authority upon any judgment
4 ________________________________________________________________________
for which it is liable, other than a judgment on bonds, notes or other
5 ________________________________________________________________________
obligations, shall not exceed the maximum rate of interest on judgments
6 ________________________________________________________________________
and accrued claims against municipal authorities as provided in the
7 ________________________________________________________________________
general municipal law. Interest on payments of principal or interest on
8 ________________________________________________________________________
any bonds, notes or other obligations in default shall accrue at the
9 ________________________________________________________________________
rate specified in the general municipal law until paid or otherwise
10 __________
satisfied.
11 ______________________________________________________________________
5. The venue of every action, suit or special proceeding brought
12 _______________________________________________________________
against the authority shall be the supreme court in the county.
13 ______________________________________________________________________
6. Neither any director of the authority nor any officer, employee, or
14 ________________________________________________________________________
agent of the authority, while acting within the scope of his or her
15 ________________________________________________________________________
authority, shall be subject to any liability resulting from exercising
16 ______________________________________________________
or carrying out any of the powers given in this title.
17 ______________________________________________________________________
7. (a) The state shall hold harmless and indemnify directors, offi-
18 ________________________________________________________________________
cers, employees and representatives of the authority, all of whom shall
19 ________________________________________________________________________
be deemed officers and employees of the state for purposes of section
20 ________________________________________________________________________
seventeen of the public officers law, against any claim, demand, suit,
21 ________________________________________________________________________
or judgment arising by reason of any act or omission to act by such
22 ________________________________________________________________________
director, officer, employee or representative occurring in the discharge
23 ________________________________________________________________________
of his or her duties and within the scope of his or her service on
24 ________________________________________________________________________
behalf of the authority including any claim, demand, suit or judgment
25 ________________________________________________________________________
based on allegations that financial loss was sustained by any person in
26 ________________________________________________________________________
connection with the acquisition, disposition or holding of securities or
27 ________________________________________________________________________
other obligations. In the event of any such claim, demand, suit or judg-
28 ________________________________________________________________________
ment, a director, officer, employee or representative of the authority
02/16/21 54 09769-01-1
1 ________________________________________________________________________
shall be held harmless and indemnified, notwithstanding the limitations
2 ________________________________________________________________________
of subdivision one of section seventeen of the public officers law,
3 ________________________________________________________________________
unless such individual is found by a final judicial determination not to
4 ________________________________________________________________________
have acted, in good faith, for a purpose which he or she reasonably
5 ________________________________________________________________________
believed to be in the best interest of the authority or not to have had
6 _______________________________________________________________
reasonable cause to believe that his or her conduct was lawful.
7 ______________________________________________________________________
(b) In connection with any such claim, demand, suit, or judgment, any
8 ________________________________________________________________________
director, officer, employee or representative of the authority shall be
9 ________________________________________________________________________
entitled to representation by private counsel of his or her choice in
10 ________________________________________________________________________
any civil judicial proceeding whenever the attorney general determines
11 ________________________________________________________________________
based upon his or her investigation and review of the facts and circum-
12 ________________________________________________________________________
stances of the case that representation by the attorney general would be
13 ________________________________________________________________________
inappropriate. The attorney general shall notify the individual in writ-
14 ________________________________________________________________________
ing of such determination that the individual is entitled to be repres-
15 ________________________________________________________________________
ented by private counsel. The attorney general may require, as a condi-
16 ________________________________________________________________________
tion to payment of the fees and expenses of such representative, that
17 ________________________________________________________________________
appropriate groups of such individuals be represented by the same coun-
18 ________________________________________________________________________
sel. If the individual or groups of individuals is entitled to represen-
19 ________________________________________________________________________
tation by private counsel under the provisions of this section, the
20 ________________________________________________________________________
attorney general shall so certify to the state comptroller. Reasonable
21 ________________________________________________________________________
attorneys' fees and litigation expenses shall be paid by the state to
22 ________________________________________________________________________
such private counsel from time to time during the pendency of the civil
23 ________________________________________________________________________
action or proceeding, subject to certification that the individual is
24 ________________________________________________________________________
entitled to representation under the terms and conditions of this
25 ________________________________________________________________________
section by the authority, upon the audit and warrant of the state comp-
26 ________________________________________________________________________
troller. The provisions of this subdivision shall be in addition to and
27 ________________________________________________________________________
shall not supplant any indemnification or other benefits heretofore or
28 ________________________________________________________________________
hereafter conferred upon directors, officers, employees or represen-
02/16/21 55 09769-01-1
1 ________________________________________________________________________
tatives of the authority by section seventeen of the public officers
2 ________________________________________________________________________
law, by action of the authority or otherwise. The provisions of this
3 ________________________________________________________________________
subdivision shall inure only to directors, officers, employees and
4 ________________________________________________________________________
representatives of the authority, shall not enlarge or diminish the
5 ________________________________________________________________________
rights of any other party, and shall not impair, limit or modify the
6 ____________________________________________________________________
rights and obligations of any insurer under any policy of insurance.
7 ______________________________________________________________________
§ 4074. Audits. 1. The accounts of the authority shall be subject to
8 ________________________________________________________________________
the audit of the comptroller and the state comptroller. In addition, the
9 ________________________________________________________________________
authority shall be subject to an annual financial audit performed by an
10 ________________________________________________________________________
independent certified accountant selected by the authority. Such audit
11 ________________________________________________________________________
report shall be submitted to the county executive, the presiding offi-
12 ________________________________________________________________________
cer, the comptroller, the governor, the state comptroller, the chair and
13 ________________________________________________________________________
ranking minority member of the senate finance committee and the chair
14 _____________________________________________________________________
and ranking minority member of the assembly ways and means committee.
15 ______________________________________________________________________
2. For each fiscal year during the existence of the authority, and
16 ________________________________________________________________________
within one hundred twenty days after the close of the county's fiscal
17 ________________________________________________________________________
year, the county shall submit its audited financial statements to the
18 __________
authority.
19 ______________________________________________________________________
§ 4075. Effect of inconsistent provisions. Insofar as the provisions
20 ________________________________________________________________________
of this title are inconsistent with the provisions of any other act,
21 ________________________________________________________________________
general or special, or of any charter, local law, ordinance or resol-
22 ________________________________________________________________________
ution of any municipality, the provisions of this title shall be
23 ________________________________________________________________________
controlling. Nothing contained in this section shall be held to supple-
24 ________________________________________________________________________
ment or otherwise expand the powers or duties of the authority otherwise
25 ________________________
set forth in this title.
26 ______________________________________________________________________
§ 4076. Separability; construction. If any clause, sentence, para-
27 ________________________________________________________________________
graph, section, or part of this title shall be adjudged by any court of
28 ________________________________________________________________________
competent jurisdiction to be invalid, such judgment shall not affect,
02/16/21 56 09769-01-1
1 ________________________________________________________________________
impair or invalidate the remainder thereof, but shall be confined in its
2 ________________________________________________________________________
operation to the clause, sentence, paragraph, section, or part thereof
3 ________________________________________________________________________
involved in the controversy in which such judgment shall have been
4 ________________________________________________________________________
rendered. The provisions of this title shall be liberally construed to
5 ________________________________________________________________
assist the effectuation of the public purposes furthered hereby.
6 § 3. Subdivision (a) and paragraphs 3 and 5-a of subdivision (c) of
7 section 1261 of the tax law, subdivision (a) as amended by chapter 182
8 of the laws of 2005, paragraph 3 of subdivision (c) as amended by
9 section 1 and paragraph 5-a of subdivision (c) as amended by section 2
10 of part NN of chapter 55 of the laws of 2020, are amended to read as
11 follows:
12 (a) All taxes, penalties and interest imposed by cities, counties or
13 school districts under the authority of section twelve hundred ten,
14 twelve hundred eleven, twelve hundred twelve or twelve hundred twelve-A
15 of this article, which are collected by the commissioner, shall be
16 deposited daily with such responsible banks, banking houses or trust
17 companies, as may be designated by the state comptroller, to the credit
18 of the comptroller, in trust for the cities, counties or school
19 districts imposing the tax or for (i) the Nassau county interim finance
20 authority or (ii) the Buffalo fiscal stability authority or (iii) the
21 Erie county fiscal stability authority _________________________________

or (iv) the Mount Vernon fiscal
22 ____________________
stability authority, created by the public authorities law, (i) to the
23 extent that net collections from taxes imposed by Nassau county are
24 payable to the Nassau county interim finance authority or (ii) to the
25 extent that net collections from taxes imposed by Erie county or by the
26 city of Buffalo are payable to the Buffalo fiscal stability authority or
27 (iii) to the extent that net collections from taxes imposed by Erie
28 county are payable to the Erie county fiscal stability authority _______
or (iv)
02/16/21 57 09769-01-1
1 ________________________________________________________________________
to the extent that net collections from taxes imposed by Westchester
2 ________________________________________________________________________
county or by the city of Mount Vernon are payable to the Mount Vernon
3 __________________________
fiscal stability authority, or for any public benefit corporation to
4 which the tax may be payable pursuant to law. Such deposits and deposits
5 received pursuant to subdivision (b) of section twelve hundred fifty-two
6 of this article shall be kept in trust and separate and apart from all
7 other monies in the possession of the comptroller. The comptroller shall
8 require adequate security from all such depositories of such revenue
9 collected by the commissioner, including the deposits received pursuant
10 to subdivision (b) of section twelve hundred fifty-two of this article.
11 Any amount payable to such authorities pursuant to the public authori-
12 ties law shall, at the time it is otherwise payable to (i) Nassau coun-
13 ty, (ii) Erie county or the city of Buffalo, [or] (iii) Erie county, __
or
14 _____________________________________________________
(iv) Westchester county or the city of Mount Vernon, respectively, as
15 specified in this section, be paid instead to such respective authority.
16 Any amount payable to a public benefit corporation pursuant to law
17 shall, at the time it is otherwise payable to the taxing jurisdiction as
18 specified in this section, be paid instead to such public benefit corpo-
19 ration.
20 (3) However, the taxes, penalties and interest which (i) the county of
21 Nassau, (ii) the county of Erie, to the extent the county of Erie is
22 contractually or statutorily obligated to allocate and apply or pay net
23 collections to the city of Buffalo and to the extent that such county
24 has set aside net collections for educational purposes attributable to
25 the Buffalo school district, or the city of Buffalo [or],

_ (iii) the
26 county of Erie ______________________________________________________

or (iv) the county of Westchester, to the extent the
27 ________________________________________________________________________
county of Westchester is contractually or statutorily obligated to allo-
28 ________________________________________________________________________
cate and apply or pay net collections to the city of Mount Vernon and to
02/16/21 58 09769-01-1
1 ________________________________________________________________________
the extent that such county has set aside net collections for educa-
2 ________________________________________________________________________
tional purposes attributable to the Mount Vernon city school district,
3 ___________________________
or the city of Mount Vernon is authorized to impose pursuant to section
4 twelve hundred ten of this article, other than such taxes in the amounts
5 described, respectively, in subdivisions one and two of section one
6 thousand two hundred sixty-two-e of this part, during the period that
7 such section authorizes Nassau county to establish special or local
8 assistance programs thereunder, together with any penalties and interest
9 related thereto, and after the comptroller has reserved such refund fund
10 and such costs, shall, commencing on the next payment date after the
11 effective date of this sentence and of each month thereafter, until such
12 date as (i) the Nassau county interim finance authority shall have no
13 obligations outstanding, or (ii) the Buffalo fiscal stability authority
14 shall cease to exist, [or] (iii) the Erie county fiscal stability
15 authority shall cease to exist, ________________________________________

or (iv) the Mount Vernon fiscal stabili-
16 _________________________________
ty authority shall cease to exist be paid by the comptroller, respec-
17 tively, to (i) the Nassau county interim finance authority to be applied
18 by the Nassau county interim finance authority, or (ii) to the Buffalo
19 fiscal stability authority to be applied by the Buffalo fiscal stability
20 authority, or (iii) to the Erie county fiscal stability authority to be
21 applied by the Erie county fiscal stability authority, ______________

or (iv) to the
22 ________________________________________________________________________
Mount Vernon fiscal stability authority to be applied by the Mount
23 ___________________________________
Vernon fiscal stability authority, as the case may be, in the following
24 order of priority: first pursuant to the Nassau county interim finance
25 authority's contracts with bondholders or the Buffalo fiscal stability
26 authority's contracts with bondholders or the Erie county fiscal stabil-
27 ity authority's contracts with bondholders _____________________________

or the Mount Vernon fiscal
28 _________________________________________________
stability authority's contracts with bondholders, respectively, then to
02/16/21 59 09769-01-1
1 pay the Nassau county interim finance authority's operating expenses not
2 otherwise provided for or the Buffalo fiscal stability authority's oper-
3 ating expenses not otherwise provided for or the Erie county fiscal
4 stability authority's operating expenses not otherwise provided for __

or
5 ________________________________________________________________________
the Mount Vernon fiscal stability authority's operating expenses not
6 ________________________
otherwise provided for, respectively, then (i) for the Nassau county
7 interim finance authority to pay to the state as soon as practicable in
8 the months of May and December each year, the amount necessary to
9 fulfill the town and village distribution requirement on behalf of
10 Nassau county pursuant to paragraph five-a of this subdivision, or (ii)
11 for the Buffalo fiscal stability authority to pay to the state as soon
12 as practicable in the months of May and December each year, the percent-
13 age of the amount necessary to fulfill the town and village distribution
14 requirement on behalf of Erie county pursuant to paragraph five-a of
15 this subdivision that equates to the percentage of the county net
16 collections that the city of Buffalo and the Buffalo city school
17 district, together, are due in the months of May and December each year,
18 or (iii) for the Erie county fiscal stability authority to pay to the
19 state as soon as practicable in the months of May and December each
20 year, the amount necessary to fulfill the town and village distribution
21 requirement on behalf of Erie county pursuant to paragraph five-a of
22 this subdivision, less the amount being paid to the state by the Buffalo
23 fiscal stability authority in each respective month, __________________

or (iv) for the
24 ________________________________________________________________________
Mount Vernon fiscal stability authority to pay to the state as soon as
25 ________________________________________________________________________
practicable in the months of May and December each year, the percentage
26 ________________________________________________________________________
of the amount necessary to fulfill the town and village distribution
27 ________________________________________________________________________
requirement on behalf of Westchester county pursuant to paragraph five-a
28 ________________________________________________________________________
of this subdivision that equates to the percentage of the county net
02/16/21 60 09769-01-1
1 ________________________________________________________________________
collections that the city of Mount Vernon and the Mount Vernon city
2 ________________________________________________________________________
school district, together, are due in the months of May and December
3 ___________
each year, and then (i) pursuant to the Nassau county interim finance
4 authority's agreements with the county of Nassau, which agreements shall
5 require the Nassau county interim finance authority to transfer such
6 taxes, penalties and interest remaining after providing for contractual
7 or other obligations of the Nassau county interim finance authority, and
8 subject to any agreement between such authority and the county of
9 Nassau, to the county of Nassau as frequently as practicable; or (ii)
10 pursuant to the Buffalo fiscal stability authority's agreements with the
11 city of Buffalo, which agreements shall require the Buffalo fiscal
12 stability authority to transfer such taxes, penalties and interest
13 remaining after providing for contractual or other obligations of the
14 Buffalo fiscal stability authority, and subject to any agreement between
15 such authority and the city of Buffalo, to the city of Buffalo or the
16 city of Buffalo school district, as the case may be, as frequently as
17 practicable; or (iii) pursuant to the Erie county fiscal stability
18 authority's agreements with the county of Erie, which agreements shall
19 require the Erie county fiscal stability authority to transfer such
20 taxes, penalties and interest remaining after providing for contractual
21 or other obligations of the Erie county fiscal stability authority, and
22 subject to any agreement between such authority and the county of Erie,
23 to the county of Erie as frequently as practicable;

______________________
or (iv) pursuant to
24 ________________________________________________________________________
the Mount Vernon fiscal stability authority's agreements with the city
25 ________________________________________________________________________
of Mount Vernon, which agreements shall require the Mount Vernon fiscal
26 ________________________________________________________________________
stability authority to transfer such taxes, penalties and interest
27 ________________________________________________________________________
remaining after providing for contractual or other obligations of the
28 ________________________________________________________________________
Mount Vernon fiscal stability authority, and subject to any agreement
02/16/21 61 09769-01-1
1 ________________________________________________________________________
between such authority and the city of Mount Vernon, to the city of
2 ________________________________________________________________________
Mount Vernon or the Mount Vernon city school district, as the case may
3 ________________________________
be, as frequently as practicable. During the period that the comp-
4 troller is required to make payments to the Nassau county interim
5 finance authority described in the previous sentence, the county of
6 Nassau shall have no right, title or interest in or to such taxes,
7 penalties and interest required to be paid to the Nassau county interim
8 finance authority, except as provided in such authority's agreements
9 with the county of Nassau. During the period that the comptroller is
10 required to make payments to the Buffalo fiscal stability authority
11 described in the second previous sentence, the city of Buffalo and such
12 school district shall have no right, title or interest in or to such
13 taxes, penalties and interest required to be paid to the Buffalo fiscal
14 stability authority, except as provided in such authority's agreements
15 with the city of Buffalo. During the period that the comptroller is
16 required to make payments to the Erie county fiscal stability authority
17 described in the third previous sentence, the county of Erie shall have
18 no right, title or interest in or to such taxes, penalties and interest
19 required to be paid to the Erie county fiscal stability authority,
20 except as provided in such authority's agreements with the county of
21 Erie. ________________________________________________________________
During the period that the comptroller is required to make
22 ________________________________________________________________________
payments to the Mount Vernon fiscal stability authority described in the
23 ________________________________________________________________________
fourth previous sentence, the city of Mount Vernon and such school
24 ________________________________________________________________________
district shall have no right, title or interest in or to such taxes,
25 ________________________________________________________________________
penalties and interest required to be paid to the Mount Vernon fiscal
26 ________________________________________________________________________
stability authority, except as provided in such authority's agreements
27 ______________________________
with the city of Mount Vernon.
02/16/21 62 09769-01-1
1 (5-a) However, after the comptroller has made the payments to the
2 Nassau county interim finance authority, the Buffalo fiscal stability
3 authority, [and] the Erie county fiscal stability authority,

_________
and the
4 _______________________________________
Mount Vernon fiscal stability authority required by paragraph three of
5 this subdivision, for each municipality that received a base level grant
6 in state fiscal year two thousand eighteen-two thousand nineteen but not
7 in state fiscal year two thousand nineteen-two thousand twenty under the
8 aid and incentives for municipalities program pursuant to subdivision
9 ten of section fifty-four of the state finance law, the comptroller
10 shall annually withhold from each county except Nassau and Erie from the
11 remaining taxes, penalties and interest imposed by the county in which a
12 majority of the population of such municipality resides, and on behalf
13 of Nassau and Erie counties the comptroller shall annually receive from
14 the Nassau county interim finance authority, the Buffalo fiscal stabili-
15 ty authority, [and] the Erie county fiscal stability authority,

_________
and the
16 _______________________________________
Mount Vernon fiscal stability authority, an amount equal to the base
17 level grant received by such municipality in state fiscal year two thou-
18 sand eighteen-two thousand nineteen and shall annually distribute, by
19 December fifteenth, two thousand nineteen and by such date annually
20 thereafter, such amount directly to such municipality, unless such muni-
21 cipality has a fiscal year ending May thirty-first, then such annual
22 distribution shall be made by May fifteenth, two thousand twenty and by
23 such date annually thereafter. No county shall have any right, title or
24 interest in or to the taxes, penalties and interest required to be with-
25 held or distributed pursuant to this paragraph.
26 § 4. Subdivision (d) of section 1262 of the tax law is amended by
27 adding a new paragraph 5 to read as follow:

02/16/21 63 09769-01-1
1 ______________________________________________________________________
(5) Notwithstanding any provision of general, special or local law to
2 ________________________________________________________________________
the contrary, if at any time from the effective date of the Mount Vernon
3 ________________________________________________________________________
fiscal stability authority act until December thirty-first, two thousand
4 ________________________________________________________________________
fifty-one any city in the county of Westchester imposes sales and
5 ________________________________________________________________________
compensating use taxes described in section twelve hundred ten of this
6 ________________________________________________________________________
article, then the county of Westchester shall not be required to allo-
7 ________________________________________________________________________
cate under paragraph one of this subdivision, any net collections from
8 ________________________________________________________________________
its taxes imposed during such period; instead it shall continue to allo-
9 ________________________________________________________________________
cate net collections from its taxes to any city in the county which does
10 ________________________________________________________________________
not impose such taxes and to the area of the county outside the cities,
11 ________________________________________________________________________
in accordance with the terms of the most current agreement among such
12 ________________________________________________________________________
county and the cities in the county entered into pursuant to subdivision
13 ____________________
(c) of this section.
14 § 5. If any section, part or provision of this act shall be adjudged
15 unconstitutional or invalid or ineffective by any court of this state,
16 any party in interest shall have a direct appeal as of right to the
17 court of appeals of the state of New York, and such appeal shall have
18 preference over all other causes. Service upon the adverse party of a
19 notice of appeal shall stay the effect of the judgment or order appealed
20 from pending the hearing and determination of the appeal.
21 § 6. Separability. If any clause, sentence, paragraph, section or part
22 of this act be adjudged by any court of competent jurisdiction to be
23 unconstitutional, invalid, or ineffective, such judgment shall not
24 affect, impair or invalidate the remainder thereof but shall be confined
25 in its operation to the clause, sentence, paragraph, section or part
26 thereof directly involved in the controversy in which such judgment
27 shall have been rendered.
28 § 7. This act shall take effect immediately.

Draft Legislation Establishing A Mount Vernon Fiscal Stability Board

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Draft Legislation Establishing A Mount Vernon Fiscal Stability Board

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Legislative Bill Drafting Commission IN SENATE____________________________________________________

09769-01-1 Senate introducer's signature

2 as renumbered by chapter 182 of the laws of 2005, are renumbered

3 sections 4500, 4501 and 4502.

4 § 2. Article 10-D of the public authorities law is amended by adding a

5 new title 4 to read as follows:

6 § 3. Subdivision (a) and paragraphs 3 and 5-a of subdivision (c) of

8 of the laws of 2005, paragraph 3 of subdivision (c) as amended by

9 section 1 and paragraph 5-a of subdivision (c) as amended by section 2

10 of part NN of chapter 55 of the laws of 2020, are amended to read as

12 (a) All taxes, penalties and interest imposed by cities, counties or

13 school districts under the authority of section twelve hundred ten,

14 twelve hundred eleven, twelve hundred twelve or twelve hundred twelve-A

15 of this article, which are collected by the commissioner, shall be

16 deposited daily with such responsible banks, banking houses or trust

17 companies, as may be designated by the state comptroller, to the credit

18 of the comptroller, in trust for the cities, counties or school

20 authority or (ii) the Buffalo fiscal stability authority or (iii) the

21 Erie county fiscal stability authority _________________________________

24 payable to the Nassau county interim finance authority or (ii) to the

26 city of Buffalo are payable to the Buffalo fiscal stability authority or

5 received pursuant to subdivision (b) of section twelve hundred fifty-two

7 other monies in the possession of the comptroller. The comptroller shall

8 require adequate security from all such depositories of such revenue

9 collected by the commissioner, including the deposits received pursuant

10 to subdivision (b) of section twelve hundred fifty-two of this article.

11 Any amount payable to such authorities pursuant to the public authori-

15 specified in this section, be paid instead to such respective authority.

16 Any amount payable to a public benefit corporation pursuant to law

17 shall, at the time it is otherwise payable to the taxing jurisdiction as

18 specified in this section, be paid instead to such public benefit corpo-

22 contractually or statutorily obligated to allocate and apply or pay net

24 has set aside net collections for educational purposes attributable to

25 the Buffalo school district, or the city of Buffalo [or],

26 county of Erie ______________________________________________________

5 described, respectively, in subdivisions one and two of section one

7 such section authorizes Nassau county to establish special or local

8 assistance programs thereunder, together with any penalties and interest

13 obligations outstanding, or (ii) the Buffalo fiscal stability authority

15 authority shall cease to exist, ________________________________________

17 tively, to (i) the Nassau county interim finance authority to be applied

18 by the Nassau county interim finance authority, or (ii) to the Buffalo

19 fiscal stability authority to be applied by the Buffalo fiscal stability

20 authority, or (iii) to the Erie county fiscal stability authority to be

21 applied by the Erie county fiscal stability authority, ______________

24 order of priority: first pursuant to the Nassau county interim finance

25 authority's contracts with bondholders or the Buffalo fiscal stability

26 authority's contracts with bondholders or the Erie county fiscal stabil-

27 ity authority's contracts with bondholders _____________________________

2 otherwise provided for or the Buffalo fiscal stability authority's oper-

4 stability authority's operating expenses not otherwise provided for __

7 interim finance authority to pay to the state as soon as practicable in

9 fulfill the town and village distribution requirement on behalf of

10 Nassau county pursuant to paragraph five-a of this subdivision, or (ii)

14 requirement on behalf of Erie county pursuant to paragraph five-a of

15 this subdivision that equates to the percentage of the county net

19 state as soon as practicable in the months of May and December each

21 requirement on behalf of Erie county pursuant to paragraph five-a of

23 fiscal stability authority in each respective month, __________________

4 authority's agreements with the county of Nassau, which agreements shall

5 require the Nassau county interim finance authority to transfer such

6 taxes, penalties and interest remaining after providing for contractual