New York A 7786: Relates to the liability of a municipality or governmental subdivision for the refund of property taxes to the Long Island power authority

Bill Text

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A07786 Summary:

BILL NOA07786 

&nbsp

SAME ASSAME AS S02333

&nbsp

SPONSORDavila

&nbsp

COSPNSRHyndman, Gonzalez-Rojas, Simon, Ramos, Romero, Rosenthal, Lunsford, Kelles, Forrest, Levenberg,
 Sayegh, Meeks, Gallagher, Reyes, Lee, Gibbs, Moreno

&nbsp

MLTSPNSR

&nbsp

Add Art 8 §§220 - 232, D & C L

&nbsp

Provides for restructuring unsustainable sovereign and subnational debt; provides a voluntary petition for relief may be filed with the state.

Go to top A07786 Actions:

BILL NOA07786 

&nbsp

04/10/2025referred to judiciary

01/07/2026referred to judiciary

Go to topA07786 Committee&nbspVotes:

Go to topA07786 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA07786 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7786

 2025-2026 Regular Sessions

 IN ASSEMBLY

 April 10, 2025
 ___________

 Introduced by M. of A. DAVILA, HYNDMAN, GONZALEZ-ROJAS, SIMON, RAMOS,
 ROMERO, ROSENTHAL, LUNSFORD, KELLES, FORREST, LEVENBERG, SAYEGH --
 read once and referred to the Committee on Judiciary

 AN ACT to amend the debtor and creditor law, in relation to restructur-
 ing unsustainable sovereign and subnational debt

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "sovereign debt stability act".
 3 § 2. The debtor and creditor law is amended by adding a new article 8
 4 to read as follows:
 5 ARTICLE 8
 6 SOVEREIGN AND SUBNATIONAL DEBT
 7 Section 220. Legislative intent.
 8 221. Definitions.
 9 222. Election to be covered by the provisions of this article.
 10 223. Petition for relief; recognition.
 11 224. Notification of creditors.
 12 225. Debt reconciliation.
 13 226. Submission, contents and voting on plan.
 14 227. Financing the restructuring.
 15 228. Priority of repayment.
 16 229. Adjudication of disputes.
 17 230. Recoverability of section 230 claims.
 18 231. Application; opt in.
 19 232. Severability.
 20 § 220. Legislative intent. The legislature finds that it is a long-
 21 standing policy of the United States and the state of New York, as the
 22 world's leading financial center, to support orderly, collaborative and
 23 effective international sovereign debt relief for countries with unsus-
 24 tainable levels of debt. Debt distress, debt crises, and disorderly

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05664-01-5

 A. 7786 2

 1 default are associated with unacceptable human suffering, economic
 2 decline, and financial market and payment systems disruption. Moreover,
 3 debt restructuring is ineffective and does not lead to sustainable
 4 outcomes when it is not perceived as equitable or legitimate by stake-
 5 holders in borrowing and lending countries. Additionally, public credi-
 6 tors are unlikely to participate in debt restructuring initiatives
 7 unless there is fair burden sharing among all public and private credi-
 8 tors, which is essential to the legitimacy and effectiveness of debt
 9 relief initiatives. Therefore, the legislature finds and declares that
 10 it shall be the policy of New York state to support international debt
 11 relief initiatives for countries to ensure that the cost of such debt
 12 relief is allocated in a fair and equitable manner, and that such costs
 13 do not fall disproportionately on the residents and taxpayers of New
 14 York state, and for other purposes. The purpose of this article is to
 15 provide effective mechanisms for restructuring sovereign and subnational
 16 debt so as to:
 17 1. reduce the social costs of sovereign and subnational debt crises to
 18 residents of New York state;
 19 2. reduce systemic risk to the financial system, a system that is
 20 concentrated in New York state;
 21 3. reduce creditor uncertainty, including to the numerous holders of
 22 sovereign debt that are residents in New York state;
 23 4. strengthen the role of New York state as a primary location for the
 24 issuing and trading of sovereign debt;
 25 5. reduce the need for sovereign and subnational debt bailouts, which
 26 create moral hazard and are costly to residents of New York state;
 27 6. otherwise protect economic ac