S T A T E O F N E W Y O R K
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10551--A
I N A S S E M B L Y
June 5, 2012
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lavine,
Schimel) -- read once and referred to the Committee on Corporations,
Authorities and Commissions -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public authorities law, in relation to allowing
certain financing by the Nassau county interim finance authority for
the benefit of the Nassau health care corporation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 12 of section 3651 of the public authorities
law, as added by chapter 84 of the laws of 2000, is amended to read as
follows:
12. "Financeable costs" or "costs" means costs to finance (a) amounts
necessary to accomplish a refunding, repayment or restructuring of a
portion of the county's outstanding indebtedness or that of any covered
organization, (b) cash flow needs of the county OR OF THE NASSAU HEALTH
CARE CORPORATION, (c) tax certiorari settlements and judgments of any
kind to which the county is a party, (d) appropriated capital costs of
the county OR OF THE NASSAU HEALTH CARE CORPORATION, including the costs
of any preliminary studies, surveys, maps, plans, estimates and hear-
ings, (e) amounts necessary to finance any county deficit, to the extent
authorized by state law, or (f) incidental costs, including, but not
limited to, legal fees, printing or engraving, publication of notices,
taking of title, apportionment of costs, and capitalized interest,
insurance premiums, costs related to items authorized in subdivisions
seven through ten of section thirty-six hundred fifty-four of this title
or any underwriting or other costs incurred in connection with the
financing thereof.
S 2. Subdivisions 1 and 2 of section 3656 of the public authorities
law, as amended by chapter 685 of the laws of 2003, are amended to read
as follows:
1. The authority shall have the power and is hereby authorized from
time to time to issue bonds in such principal amounts as it may deter-
mine to be necessary pursuant to section thirty-six hundred fifty-five
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16126-05-2
A. 10551--A 2
of this title to pay any financeable costs and to fund reserves to
secure such bonds, including incidental expenses in connection there-
with. Provided, however, the aggregate principal amounts of such bonds
issued to pay the financeable costs described in paragraph (a) of subdi-
vision twelve of section thirty-six hundred fifty-one of this title
shall not exceed four hundred fifteen million dollars, excluding bonds,
notes, or other obligations issued to refund or otherwise repay bonds,
notes, or other obligations theretofore issued for such purposes.
Notwithstanding the foregoing limit on the amount of bonds that the
authority may issue to pay the financeable costs described in paragraph
(a) of subdivision twelve of section thirty-six hundred fifty-one of
this title, the authority shall have the power to issue up to an addi-
tional seven hundred ninety million dollars of bonds, excluding bonds,
notes, or other obligations issued to refund or otherwise repay bonds,
notes, or other obligations theretofore issued for such purpose, to pay
such costs if the county's indebtedness to be refunded, repaid or
restructured with the payment of such bonds was originally incurred by
the county to pay tax certiorari settlements or assignments of any kind
to which the county is a party. Provided further, the aggregate princi-
pal amounts of such bonds issued to pay the financeable costs described
in paragraph (c) of subdivision twelve of section thirty-six hundred
fifty-one of this title, which resulted from certiorari proceedings
commenced prior to June first, two thousand, shall not exceed four
hundred million dollars, excluding bonds, notes, or other obligations
issued to refund or otherwise repay bonds, notes, or other obligations
theretofore issued for such purposes. And, provided further, the aggre-
gate principal amounts of such bonds issued to pay the financeable coun-
ty costs described in paragraph (c) of subdivision twelve of section
thirty-six hundred fifty-one of this title, which resulted from certior-
ari proceedings commenced on or after June first, two thousand, shall
not exceed four hundred million dollars in the aggregate for the fiscal
years two thousand through two thousand seven, however, of said four
hundred million dollars only fifteen million dollars may be issued in
the fiscal year two thousand six and ten million dollars may be issued
in the fiscal year two thousand seven, excluding bonds, notes, or other
obligations issued to refund or otherwise repay bonds, notes, or other
obligations theretofore issued for such purposes. Effective in the year
two thousand six, upon request of the county, the authority shall issue,
in the amount requested, bonds to pay tax certiorari settlements or
judgments of any kind to which the county is a party, not to exceed
fifteen million dollars; and effective in the year two thousand seven,
upon request of the county, the authority shall issue, in the amount
requested, bonds to pay tax certiorari settlements or judgments of any
kind to which the county is a party, not to exceed ten million dollars.
NOTWITHSTANDING THE FOREGOING, THE AUTHORITY MAY ISSUE UP TO THREE
HUNDRED MILLION DOLLARS IN BONDS TO PAY THE FINANCEABLE COSTS DESCRIBED
IN PARAGRAPHS (A), (D) AND (F) OF SUBDIVISION TWELVE OF SECTION THIRTY-
SIX HUNDRED FIFTY-ONE OF THIS TITLE, PROVIDED THAT SUCH FINANCEABLE
COSTS ARE DIRECTLY RELATED TO THE NASSAU HEALTH CARE CORPORATION. When-
ever this title establishes a limit on the principal amount of bonds
that the authority is authorized to issue, there shall not be counted
against such limit (i) amounts determined by the authority as reasonable
to be used to pay the cost of issuing such bonds, (ii) the amount of
bonds that would constitute interest under the Internal Revenue Code of
1986, as amended, and (iii) amounts determined by the authority as
necessary to establish any reserves.
A. 10551--A 3
The authority shall have the power from time to time to refund any
bonds of the authority by the issuance of new bonds, whether the bonds
to be refunded have or have not matured, and may issue bonds partly to
refund bonds of the authority then outstanding and partly to pay the
financeable costs pursuant to section thirty-six hundred fifty-five of
this title. Bonds issued by the authority shall be payable solely out of
particular revenues or other moneys of the authority as may be desig-
nated in the proceedings of the authority under which the bonds shall be
authorized to be issued, subject to any agreements entered into between
the authority and the county, and subject to any agreements with the
holders of outstanding bonds pledging any particular revenues or moneys;
but in no event shall transitional state aid be pledged as security for
or be made available for the payment of bonds. BONDS AND NOTES ISSUED
BY THE AUTHORITY ON BEHALF OF THE NASSAU HEALTH CARE CORPORATION SHALL
NOT BE SUBJECT TO SECTION TWENTY-NINE HUNDRED SEVENTY-SIX OF THIS CHAP-
TER.
2. [The authority is authorized to issue its bonds for a period ending
not later than December thirty-first, two thousand seven.] The authority
may issue bonds to refund bonds previously issued [without regard to the
limitation in the first sentence of this subdivision], but in no event
shall any bonds of the authority finally mature later than January thir-
ty-first, two thousand thirty-six. Notwithstanding any other provision
of law, no bond of the authority shall mature more than thirty years
from the date of its issue.
S 3. Subdivisions 8, 9 and 10 of section 3654 of the public authori-
ties law, as added by chapter 84 of the laws of 2000, are amended to
read as follows:
8. to procure insurance, OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH
CARE CORPORATION WITH RESPECT TO, letters of credit or other credit
enhancement with respect to its bonds, or facilities for the payment of
tenders of such bonds or facilities for the payment upon maturity of
short-term notes not renewed;
9. to enter into OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH CARE
CORPORATION WITH RESPECT TO, interest rate exchange or similar arrange-
ments with any person under such terms and conditions as the authority
may determine, not inconsistent with the general laws of this state and
other provisions of this title, including, without limitation,
provisions as to default or early termination and indemnification by the
authority or any other party thereto for loss of benefits as a result
thereof; provided, however, that such exchanges or similar arrangements
shall be limited to fifty percent of the amount authorized in subdivi-
sion one of section thirty-six hundred fifty-six of this [article] TITLE
to pay the financeable costs described in paragraph (a) of subdivision
eleven of section thirty-six hundred fifty-one of this [article] TITLE;
10. to procure OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH CARE CORPO-
RATION WITH RESPECT TO, insurance, letters of credit or other credit
enhancement with respect to arrangements described in subdivision nine
of this section;
S 4. This act shall take effect immediately.