NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5056
SPONSOR: Conrad TITLE OF BILL:
An act to amend the local finance law, in relation to extending the
exclusion of indebtedness contracted for sewage facilities
PURPOSE OR GENERAL IDEA OF BILL:
This legislation implements the proposed constitutional amendment
extending the authorization for municipalities to exclude sewer debt
from their constitutional debt limits.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill would amend Local Finance Law § 124.10 to
extend, until 2034, the existing authorization for municipalities to
exclude from their constitutional debt limitations indebtedness issued
for the construction or reconstruction of facilities for the conveyance,
treatment and disposal of sewage.
Section two of the bill would make a conforming amendment to Local
Finance Law § 136.00(4-a), which relates to calculation of the debt
limit.
JUSTIFICATION:c
Since 1964, counties, cities, towns and villages have been authorized to
exclude sewer-related debt from their constitutional debt limits, ensur-
ing they have the ability to finance other essential capital require-
ments. The constitutional authorization for the exclusion of sewer-re-
lated debt expires at the end of 2023. The bill makes the necessary
changes to the Local Finance Law to implement the proposed constitu-
tional amendment extending the sewer debt exclusion, once the amendment
has been approved by the voters.
PRIOR LEGISLATIVE HISTORY:
This is new legislation. Similar legislation was enacted in 2014.
FISCAL IMPLICATIONS:
None for the State.
EFFECTIVE DATE:
This act shall take effect on the same date as the amendment to the
constitution relating to sewer debt exclusion, S.4597/A.3776, takes
effect.
