Amd Title, 2, 3 & 4, Chap of 2020 (as proposed in S.8417 & A.10492); amd 91, Pub Serv L; amd 5, Chap of 2020
(as proposed in S.8113-A & A.10521); amd 9-x, Bank L (as proposed in S.8243-C & A.10351-B); amd 180.65, CP L
(as proposed in S.8414 & A.10493)
Relates to expenditures and temporary transfers of reserve funds for expenses related to a state disaster emergency (Part A); relates to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies (Part B); relates to the forbearance of residential mortgage payments for qualified mortgagors for a period of up to 180 days with the option to extend for an additional 180 days (Part C); relates to hearings conducted on a felony complaint during a state disaster emergency (Part D).
STATE OF NEW YORK
________________________________________________________________________
10530
IN ASSEMBLY
May 28, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Mosley,
Lentol, Thiele, Rozic) -- read once and referred to the Committee on
Ways and Means
AN ACT to amend a chapter of the laws of 2020 amending the local finance
law relating to bond anticipation notes issued in calendar years 2015
through 2021, as proposed in legislative bills numbers S. 8417 and A.
10492, in relation to expenditures and temporary transfer of reserve
funds for expenses related to state disaster emergency declared pursu-
ant to executive order 202 of 2020 and authorizing the extension of
repayment of inter-fund advances made for expenses related to state
disaster emergency declared pursuant to executive order 202 of 2020
(Part A); to amend the public service law, in relation to issuing a
moratorium on utility termination of services during periods of
pandemics and/or state of emergencies; and to amend a chapter of the
laws of 2020 amending the public service law, relating to issuing a
moratorium on utility termination of services during periods of
pandemics and/or state of emergencies, as proposed in legislative
bills numbers S.8113-A and A.10521, in relation to the effectiveness
thereof (Part B); to amend the banking law, in relation to the
forbearance of residential mortgage payments (Part C); and to amend
the criminal procedure law, in relation to hearings conducted on a
felony complaint during a state disaster emergency (Part D)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law legislation providing for impor-
2 tant provisions relating to a state disaster emergency. Each component
3 is wholly contained within a Part identified as Parts A through D. The
4 effective date for each particular provision contained within such Part
5 is set forth in the last section of such Part. Any provision in any
6 section contained within a Part, including the effective date of the
7 Part, which makes reference to a section "of this act", when used in
8 connection with that particular component, shall be deemed to mean and
9 refer to the corresponding section of the Part in which it is found.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16563-02-0
A. 10530 2
1 Section three of this act sets forth the general effective date of this
2 act.
3 PART A
4 Section 1. The title of a chapter of the laws of 2020 amending the
5 local finance law relating to bond anticipation notes issued in calendar
6 years 2015 through 2021, as proposed in legislative bills number S. 8417
7 and A. 10492, is amended to read as follows:
8 to amend the local finance law, in relation to bond anticipation notes
9 issued in calendar years 2015 through 2021; to authorize the expenditure
10 and temporary transfer of reserve funds for expenses related to [COVID-
11 19] the state disaster emergency declared pursuant to executive order
12 202 of 2020; and to authorize the extension of repayment of inter-fund
13 advances made for expenses related to [COVID-19] the state disaster
14 emergency declared pursuant to executive order 202 of 2020
15 § 2. Section 2 of a chapter of the laws of 2020 amending the local
16 finance law relating to bond anticipation notes issued in calendar years
17 2015 through 2021, as proposed in legislative bills numbers S. 8417 and
18 A. 10492, is amended to read as follows:
19 § 2. Notwithstanding any provision of sections 6-c or 6-g of the
20 general municipal law or section 3651 of the education law to the
21 contrary, the governing board of a town, village, county, city, water
22 improvement district, sewer improvement district, fire district or
23 school district, by resolution which shall not be subject to referendum
24 requirements, may authorize expenditures from capital reserve funds for
25 capital costs attributable to the [COVID-19 pandemic] state disaster
26 emergency declared pursuant to executive order 202 of 2020.
27 § 3. Section 3 of a chapter of the laws of 2020 amending the local
28 finance law relating to bond anticipation notes issued in calendar years
29 2015 through 2021, as proposed in legislative bills numbers S. 8417 and
30 A. 10492, is amended to read as follows:
31 § 3. Notwithstanding any provision of the general municipal law, the
32 town law or the education law to the contrary, the governing board of a
33 town, village, county, city, water improvement district, sewer improve-
34 ment district, fire district or school district, by resolution which
35 shall not be subject to referendum requirements, if any, may authorize
36 the temporary transfer of moneys from reserve funds to pay for operating
37 costs attributable to the state disaster emergency declared pursuant to
38 executive order 202 of 2020 or other costs attributable to the [COVID-19
39 pandemic] state disaster emergency declared pursuant to executive order
40 202 of 2020, provided, that the reserve fund from which the funds were
41 temporarily transferred shall be reimbursed from the fund to which the
42 transfer was made over a period of not more than five fiscal years,
43 starting with the fiscal year following the transfer. At least twenty
44 percent of the moneys temporarily transferred shall be reimbursed each
45 fiscal year. Such reimbursement shall include an additional amount
46 reasonably estimated to be the amount that would have been earned on the
47 investment of the transferred moneys had they been retained in the capi-
48 tal reserve fund.
49 § 4. Section 4 of a chapter of the laws of 2020 amending the local
50 finance law relating to bond anticipation notes issued in calendar years
51 2015 through 2021, as proposed in legislative bills numbers S. 8417 and
52 A. 10492, is amended to read as follows:
53 § 4. Notwithstanding the provisions of subdivision 3 of section 9-a of
54 the general municipal law, for inter-fund advances made pursuant to such
A. 10530 3
1 subdivision for costs attributable to the [COVID-19 pandemic] state
2 disaster emergency declared pursuant to executive order 202 of 2020,
3 repayment of moneys to the fund from which they were advanced shall be
4 made by close of the fiscal year next succeeding the fiscal year in
5 which such advance was made.
6 § 5. This act shall take effect on the same date and in the same
7 manner as a chapter of the laws of 2020 amending the local finance law
8 relating to bond anticipation notes issued in calendar years 2015
9 through 2021, as proposed in legislative bills numbers S. 8417 and A.
10 10492, takes effect.
11 PART B
12 Section 1. Subdivisions 9, 10 and 12 of section 91 of the public
13 service law, as added by a chapter of the laws of 2020 amending the
14 public service law, relating to issuing a moratorium on utility termi-
15 nation of services during periods of pandemics and/or state of emergen-
16 cies, as proposed in legislative bills numbers S.8113-A and A.10521, are
17 amended to read as follows:
18 9. No telephone corporation shall terminate or disconnect a residen-
19 tial service customer for the non-payment of an overdue charge for the
20 duration of the state disaster emergency declared pursuant to executive
21 order two hundred two of two thousand twenty (hereinafter "the COVID-19
22 state of emergency"). Telephone corporations shall have a duty to
23 restore service, to the extent not already required under this chapter,
24 [to] at the request of any residential customer within forty-eight hours
25 if such service has been terminated during the pendency of the COVID-19
26 state of emergency and disconnection of such service was due to non-pay-
27 ment of an overdue charge.
28 10. [After] For a period of one hundred eighty days after the COVID-19
29 state of emergency is lifted or expires, no telephone corporation shall
30 terminate or disconnect the service of a residential customer account
31 because of defaulted deferred payment agreements or arrears then owed to
32 the telephone corporation when such customer has experienced a change in
33 financial circumstances due to the COVID-19 state of emergency, as
34 defined by the department. The telephone corporation shall provide such
35 residential customer with the right to enter into, or restructure, a
36 deferred payment agreement without the requirement of a down payment,
37 late fees, or penalties[, as such is provided for in article two of this
38 chapter].
39 12. Implementation of the provisions of this section shall not prohib-
40 it a telephone corporation from recovering lost or deferred revenues
41 after the lifting or expiration of the COVID-19 state of emergency,
42 pursuant to such means for recovery as are provided for in this chapter,
43 and by means not inconsistent with any of the provisions of this
44 article. Nothing in this section shall prohibit a telephone corporation
45 from disconnecting service at the request of a customer. Nothing in this
46 section shall prohibit a telephone corporation from disconnecting
47 service when it is necessary to protect the health and safety of custom-
48 ers and the public.
49 § 2. Section 5 of a chapter of the laws of 2020 amending the public
50 service law, relating to issuing a moratorium on utility termination of
51 services during periods of pandemics and/or state of emergencies, as
52 proposed in legislative bills numbers S.8113-A and A.10521, is amended
53 to read as follows:
A. 10530 4
1 § 5. This act shall take effect immediately and shall expire March 31,
2 2021 when upon such date the provisions of this act shall be deemed
3 repealed.
4 § 3. This act shall take effect on the same date and in the same
5 manner as a chapter of the laws of 2020 amending the public service law,
6 relating to issuing a moratorium on utility termination of services
7 during periods of pandemics and/or state of emergencies, as proposed in
8 legislative bills numbers S.8113-A and A.10521, takes effect; provided
9 however, that the amendments to subdivisions 9, 10 and 12 of section 91
10 of the public service law made by section one of this act shall not
11 affect the repeal of such subdivisions and shall be deemed to be
12 repealed therewith.
13 PART C
14 Section 1. Section 9-x of the banking law, as added by a chapter of
15 the laws of 2020, amending the banking law relating to the forbearance
16 of residential mortgage payments, as proposed in legislative bills
17 numbers S. 8243-C and A. 10351-B, is amended to read as follows:
18 § 9-x. Mortgage forbearance. 1. As used in this section, the following
19 terms shall have the following meanings:
20 (a) "Covered period" means March 7, 2020 until the date on which none
21 of the provisions that closed or otherwise restricted public or private
22 businesses or places of public accommodation, or required postponement
23 or cancellation of all non-essential gatherings of individuals of any
24 size for any reason in Executive Orders 202.3, 202.4, 202.5, 202.6,
25 202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
26 Orders 202.28 and 202.31 and as further extended by any future Executive
27 Order, issued in response to the COVID-19 pandemic continue to apply in
28 the county of the qualified mortgagor's residence;
29 (b) "qualified mortgagor" means an individual [who resides in New
30 York] (i) whose [principal dwelling] primary residence is located in New
31 York and is encumbered by a home loan pursuant to paragraph (a) of
32 subdivision six of section thirteen hundred four of the real property
33 actions and proceedings law or whose [principal dwelling] primary resi-
34 dence is located in New York and is a co-operative unit whose shares are
35 encumbered by any loan otherwise meeting the requirements of a home loan
36 under paragraph (a) of subdivision six of section thirteen hundred four
37 of the real property actions and proceedings law, from or serviced by a
38 regulated institution; and (ii) who demonstrates financial hardship as a
39 result of COVID-19 during the covered period;
40 (c) "regulated institution" means any New York regulated banking
41 organization as defined in this chapter and any New York regulated mort-
42 gage servicer entity subject to supervision by the department; and
43 (d) "trial period plan" means an agreement whereby the mortgagor is
44 required to make trial payments in full and on-time in order to be
45 considered for a permanent loan modification.
46 2. Notwithstanding any other provision of law, New York regulated
47 institutions shall:
48 (a) make applications for forbearance of any payment due on a residen-
49 tial mortgage of a property located in New York widely available to any
50 qualified mortgagor who, during the covered period, is in arrears or on
51 a trial period plan, or who has applied for loss mitigation [and demon-
52 strates financial hardship during the covered period]; and
53 (b) grant such forbearance of all monthly payments due with respect to
54 the mortgage secured by the qualified mortgagor's primary residence in
A. 10530 5
1 New York for a period of up to one hundred eighty days to any such qual-
2 ified mortgagor [who is in arrears or on a trial period plan, or who has
3 applied for loss mitigation and demonstrates financial hardship], with
4 the option to extend the forbearance of such monthly payments for up to
5 an additional one hundred eighty days provided that this extension is
6 subject to the mortgagor demonstrating continued financial hardship. If
7 any qualified mortgagor has already received a forbearance pursuant to
8 executive order 202.9 of two thousand twenty, the time of such forbear-
9 ance shall be considered as part of the requirement of this section to
10 provide a forbearance of up to one hundred eighty days, and any exten-
11 sion thereof pursuant to this section.
12 (c) Such forbearance may be backdated to March seventh, two thousand
13 twenty, provided that the maximum length of the forbearance may be no
14 longer than one hundred eighty days and any extension thereof pursuant
15 to this section.
16 3. Notwithstanding any other provision of law, any mortgage forbear-
17 ance granted by a regulated institution pursuant to executive order
18 number 202.9 of two thousand twenty, this section, or [any other law,
19 rule or regulation to the] 3 NYCRR Part 119 to a qualified mortgagor as
20 a result of financial hardship [during the covered period] shall be
21 subject to the following provisions:
22 (a) the mortgagor shall have the option to extend the term of the loan
23 for the length of the period of forbearance. The regulated institution
24 shall [waive interest on the principal for the term of the forbearance
25 and waive any late fees accumulated as a result of the forbearance] not
26 charge additional interest or any late fees or penalties on the forborne
27 payment; or
28 (b) the mortgagor shall have the option to have the arrears accumu-
29 lated during the forbearance period payable on a monthly basis for the
30 remaining term of the loan without being subject to penalties or late
31 fees incurred as a result of the forbearance; or
32 (c) the mortgagor shall have the option to negotiate a loan modifica-
33 tion or any other option that meets the changed circumstances of the
34 qualified mortgagor; or
35 (d) if [the mortgagor is unable to make mortgage payments due to mort-
36 gagors' demonstrated hardship and] the mortgagor and regulated institu-
37 tion cannot reasonably agree on a mutually acceptable loan modification,
38 the [mortgagor] regulated institution shall [have the option] offer to
39 defer arrears accumulated during the forbearance period as a non-inter-
40 est bearing balloon [payment] loan payable at the maturity of the loan
41 [consistent with the safety and soundness of such regulated institu-
42 tion], or at the time the loan is satisfied through a refinance or sale
43 of the property. Any late fees accumulated as a result of the forbear-
44 ance shall be waived.
45 [(d)] (e) The exercising of options provided for in paragraph (a), (b)
46 [or], (c) or (d) of this subdivision by a qualified mortgagor shall not
47 be reported negatively to any credit bureau by any regulated institu-
48 tion.
49 4. Notwithstanding any other provision of law, adherence with this
50 section shall be a condition precedent to commencing a foreclosure
51 action stemming from missed payments which would have otherwise been
52 subject to this section. A defendant may raise the violation of this
53 section as a defense to a foreclosure action commenced on the defend-
54 ant's property when such action is based on missed payments that would
55 have otherwise been subject to this section.
A. 10530 6
1 5. Notwithstanding anything to the contrary in this section, this
2 section shall not apply to, and does not affect any mortgage loans made,
3 insured, purchased or securitized by any agency or instrumentality of
4 the United States, any government sponsored enterprise, or a federal
5 home loan bank, or a corporate governmental agency of the state consti-
6 tuted as a political subdivision and public benefit corporation, or the
7 rights and obligations of any lender, issuer, servicer or trustee of
8 such obligations, including servicers for the Government National Mort-
9 gage Association.
10 6. Notwithstanding any other provision of law or of this section, the
11 obligation to grant the forbearance relief required by this section
12 shall be subject to the regulated institution having sufficient capital
13 and liquidity to meet its obligations and to operate in a safe and sound
14 manner. Any regulated institution that determines that it is not able to
15 offer relief pursuant to this section to any qualified mortgagor must
16 notify the department within five business days of making such determi-
17 nation. Any such notice filed with the department shall include informa-
18 tion about the qualified mortgagor, the reason the regulated institution
19 determined that it was unable to offer any relief pursuant to this
20 section, information about the regulated institution's financial condi-
21 tion supporting the regulated institution's determination, and any other
22 information required by the department. At the same time that the regu-
23 lated institution provides notice to the department, it shall advise the
24 qualified mortgagor that the application for relief was denied and
25 provide a statement that the applicant may file a complaint with the New
26 York state department of financial services at 1-800-342-3736 or
27 http://www.dfs.ny.gov if the applicant believes the application was
28 wrongly denied.
29 § 2. This act shall take effect on the same date and in the same
30 manner as a chapter of the laws of 2020, amending the banking law relat-
31 ing to the forbearance of residential mortgage payments, as proposed in
32 legislative bills numbers S. 8243-C and A. 10351-B, takes effect.
33 PART D
34 Section 1. Section 180.65 of the criminal procedure law, as added by a
35 chapter of the laws of 2020, amending the criminal procedure law relat-
36 ing to conducting hearings on a felony complaint during a state disaster
37 emergency, as proposed in legislative bills numbers S. 8414 and A.
38 10493, is amended to read as follows:
39 § 180.65 Hearing upon felony complaint; emergency provision during
40 disaster emergency.
41 During the period of the COVID-19 state disaster emergency, as
42 declared pursuant to executive order number two hundred two of two thou-
43 sand twenty and extensions thereof and article two-B of the executive
44 law, the following additional provisions shall apply to the conduct of a
45 hearing on a felony complaint pursuant to this article:
46 1. The appearance of any party and any witness at such hearing may be
47 by electronic appearance through an independent audio-visual system, as
48 such terms are defined in section 182.10 of this title, where the court
49 finds upon its own motion after hearing from the parties and any such
50 witness, either in person or by electronic appearance, that due to the
51 person's circumstances and such disaster emergency a personal appearance
52 by such party or witness would be an unreasonable hardship to such
53 person or witness or create an unreasonable health risk to the public,
54 court staff or anyone else involved in the proceeding.
A. 10530 7
1 2. At any such hearing on the felony complaint, the judge must be able
2 to hear and see the image of each witness clearly [though] through the
3 independent audio-visual system and such sound and visual image shall be
4 similar to the sound and image the judge would hear and see if the
5 witness were present together with the judge testifying in the court-
6 room. Documents, photographs and the like offered at the hearing may be
7 exchanged among the parties by electronic means. A stenographic tran-
8 scription or appropriate audio recording of the proceedings shall be
9 maintained, and the live testimony received by electronic appearance,
10 and other electronic appearances where practicable, shall be video
11 recorded by the court, and a copy provided to the people and the
12 defense.
13 3. The authority for an electronic appearance pursuant to this section
14 shall be considered sufficient means to enable the court to conduct a
15 hearing on a felony complaint within the meaning of section 180.80 of
16 this article.
17 § 2. This act shall take effect on the same date and in the same
18 manner as a chapter of the laws of 2020, amending the criminal procedure
19 law relating to conducting hearings on a felony complaint during a state
20 disaster emergency, as proposed in legislative bills numbers S. 8414 and
21 A. 10493, takes effect, provided, however, that the amendments made to
22 section 180.65 of the criminal procedure law made by section one of this
23 act shall not affect the repeal of such section and shall be deemed
24 repealed therewith.
25 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
26 sion, section or part of this act shall be adjudged by any court of
27 competent jurisdiction to be invalid, such judgment shall not affect,
28 impair, or invalidate the remainder thereof, but shall be confined in
29 its operation to the clause, sentence, paragraph, subdivision, section
30 or part thereof directly involved in the controversy in which such judg-
31 ment shall have been rendered. It is hereby declared to be the intent of
32 the legislature that this act would have been enacted even if such
33 invalid provisions had not been included herein.
34 § 3. This act shall take effect immediately provided, however, that
35 the applicable effective date of Parts A through D of this act shall be
36 as specifically set forth in the last section of such Parts.
