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S07352 Summary:

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S07352 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7352
 
                    IN SENATE
 
                                      May 13, 2014
                                       ___________
 
        Introduced  by  Sen. MARTINS -- (at request of the State Comptroller) --
          read twice and ordered printed, and when printed to  be  committed  to
          the Committee on Local Government
 
        AN  ACT  to  amend  the  local  finance  law, in relation to encouraging
          certain municipalities to  adopt  multi-year  financial  planning  and
          providing for the payment of such planning from monies appropriated to

          the financial restructuring board for local governments
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 3 of section 160.05 of the local finance law,  as
     2  added by chapter 67 of the laws of 2013, is amended to read as follows:
     3    3. (a) Upon the request of a fiscally eligible municipality, by resol-
     4  ution of the governing body of such municipality with the concurrence of
     5  the  chief  executive  of such municipality, the financial restructuring
     6  board for local governments may undertake a comprehensive review of  the
     7  operations,  finances, management practices, economic base and any other
     8  factors that in its sole discretion it deems relevant to be able to make
     9  findings and recommendations on reforming and  restructuring  the  oper-

    10  ations  of the fiscally eligible municipality. As part of such recommen-
    11  dations, the board may propose that such municipality  agree  to  fiscal
    12  accountability  measures, as determined by the board, including, but not
    13  limited to, multi-year financial planning. It may  also  identify  cost-
    14  saving measures, recommend consolidation of functions or agencies within
    15  such municipality or between such municipality and other municipalities,
    16  consistent with existing law, identify and make available, to the extent
    17  otherwise  permitted  by  law, grants and loans on such terms and condi-
    18  tions as it deems appropriate, and make such  other  recommendations  as
    19  the  board may deem just and proper but in no event shall the sum of all
    20  awards made by the board to a single fiscally eligible  municipality  be
    21  greater  than  five million dollars. If such award is a loan, it may not

    22  be for a term longer than ten years. In the event a  grant  or  loan  is
    23  made,  the board may condition such award on the fiscally eligible muni-
    24  cipality submitting a report or reports on such  actions  taken  by  the
    25  fiscally  eligible municipality pursuant to the board's recommendations,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13926-06-4
        S. 7352                             2
 
     1  and the board shall require that the eligible  municipality  must  adopt
     2  and  implement all the board's recommendations as a condition to receiv-
     3  ing an award or awards. Before making final recommendations,  the  board
     4  shall  consult with the fiscally eligible municipality. Such recommenda-

     5  tions shall not be final and binding on a fiscally eligible municipality
     6  unless it formally agrees to abide by and implement such recommendations
     7  in which event such recommendations and the  terms  provided  thereunder
     8  shall be final and binding on such municipality.
     9    (b)  Notwithstanding  paragraph t of subdivision ten of section fifty-
    10  four of the state finance law and irrespective of whether there has been
    11  a determination or finding of fiscal  eligibility  under  this  section,
    12  upon the request of any county, city, excluding a city with a population
    13  of  greater  than one million, town, or village which (1) has elected to
    14  engage in multi-year planning with the assistance of an external  finan-
    15  cial advisor, and (2) has been identified as experiencing fiscal stress,

    16  the  financial  restructuring  board for local governments may determine
    17  that all or part of the cost to the county, city, town, or  village  for
    18  such  external  advisor  shall  be  subject to reimbursement from monies
    19  appropriated to such board for the making of grants and loans.
    20    § 2. This act shall take effect immediately.