NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7383
SPONSOR: McMahon TITLE OF BILL:
An act to amend chapter 307 of the laws of 2005 amending the public
authorities law relating to the special powers of the New York state
environmental facilities corporation, in relation to extending the
effectiveness thereof
PURPOSE OF THE BILL:
Section 1 of this bill would extend until September 30, 2026 the
"sunset" provision of Section 3 of Chapter 307 of the Laws of 2005,
thereby extending for an additional three years the provisions of Public
Authorities Law ("PAL") §§ 1285-j(6)(b) and 1285-m(6)(b), which author-
ize authority of EFC to invest Clean Water State Revolving Fund
("CWSRF") and Drinking Water State Revolving Fund ("DWSRF") monies in
security obligations available to municipalities under the General
Municipal Law ("GML").
SUMMARY OF PROVISIONS:
Section 1 of this bill would extend until September 30, 2026 the
"sunset" provision of Section 3 of Chapter 307 of the Laws of 2005,
thereby extending for an additional three years the provisions of PAL
§§ 1285- j(6)(b) and 1285-m(6)(b), which authorize authority of EFC to
invest CWSRF and DWSRF monies in security obligations available to muni-
cipalities under the GML.
Section 2 of the bill provides for an immediate effective date.
JUSTIFICATION:
EFC administers the CWSRF and the DWSRF. Under these SRF programs, EFC
provides low cost financial assistance to municipalities and other enti-
ties for water and wastewater infrastructure and other environmental
projects. As of September 30, 2022, EFC has issued approximately $21
billion in State Revolving Fund Bonds under the CWSRF program and the
DWSRF program for the purpose of providing financial assistance to local
governments and public benefit corporations. Under both the CWSRF and
the DWSRF, EFC is authorized to provide assistance in several forms to
recipients for the purpose of financing or refinancing their capital
projects.
Prior to enactment of PAL §§ 1285-j(6)(b) and 1285-m(6)(b), EFC only.
bad the authority to invest directly in obligations the interest on
which is excludable from gross income under the Internal Revenue Code.
This legislation would allow EFC to continue to invest in a limited
array of municipal taxable securities. By allowing CWSRF and DWSRF
assets to continue to be invested in taxable municipal obligations as
well as tax-exempt municipal obligations, these programs, including the
participating municipalities, will benefit from higher investment
returns without diminishing investment credit quality. Continued author-
ization to invest CWSRF and DWSRF assets in taxable investments will
also broaden the demand for taxable municipal bonds, including taxable
bonds issued by New York State municipalities.
PRIOR LEGISLATIVE HISTORY:
These provisions were extended until September 30, 2611 by Chapter
'214:of the Laws of 2008; until September 30, 2014 by Chapter 70 of the
Laws of 2011; until September 30, 2017 by Chapter 159 of the Laws of
2014; September 30, 2020 by Chapter 137 of the Laws of 2017; and until
September 30, 2023 by Chapter 58 of the Laws of 2020.
FISCAL IMPLICATIONS:
The bill would have no budget implications to the State.
EFFECTIVE DATE:
The bill would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7383
2023-2024 Regular Sessions
IN ASSEMBLY
May 18, 2023
___________
Introduced by M. of A. McMAHON -- (at request of the Environmental
Facilities Corporation) -- read once and referred to the Committee on
Environmental Conservation
AN ACT to amend chapter 307 of the laws of 2005 amending the public
authorities law relating to the special powers of the New York state
environmental facilities corporation, in relation to extending the
effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3 of chapter 307 of the laws of 2005 amending the
2 public authorities law relating to the special powers of the New York
3 state environmental facilities corporation, as amended by section 1 of
4 item D of subpart A of part XXX of chapter 58 of the laws of 2020, is
5 amended to read as follows:
6 § 3. This act shall take effect immediately and shall expire and be
7 deemed repealed September 30, [2023] 2026.
8 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06160-01-3
