NY State Senate Bill 2017-S4303

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to finance
Feb 08, 2017	referred to finance

2017-S4303 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Rpld & add Art 5-B §§67-a - 67-f, amd §§68-a, 68-c, 97-rrr & 24, St Fin L; amd §§51 & 365, Pub Auth L

2017-S4303 (ACTIVE) - Summary

Creates a debt management board with authority to set a limit on state debt; authorizes the use of surplus moneys to reduce outstanding state debt; limits the amount of state debt that may be incurred; limits the debt of public authorities.

2017-S4303 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4303

 TITLE OF BILL :  An act to amend the state finance law, in relation
to the creation of a debt management board, using surplus moneys to
reduce outstanding state funded debt and limiting the amount of state
funded debt that may be incurred; to amend the public authorities law,
in relation to defining and listing public authorities, limiting the
debt of public authorities, the approval by the comptroller of the
terms and conditions of bonds or notes issued by public authorities,
the powers and duties of the public authorities control board, and the
issuance of bonds and notes of the New York state thruway authority;
and to repeal article 5-B of the state finance law relating to
limitations on state-supported debt

 PURPOSE :

To impose discipline on the State's borrowing practices by
establishing a State Debt Management Board and strict limitations on
State and public authority debt.

 SUMMARY OF PROVISIONS :

Section 1 adds a new Article 5-8 ("Debt Management Board and
Limitations on State Funded Debt") to the State Finance Law, including
six sections:

Section 67-a defines the terms "State debt," "State backed debt" and
"State funded debt" to clarify the full scope of the State's debt
obligation.

Section 67-a also defines the terms "Board" (i.e., the New York State
Debt Management Board), "Total personal income of the state, "capital
purpose," "conduit debt obligation" and "cash surplus."

Section 67-b requires, after any transfer to the Tax Stabilization
Reserve Fund, that a portion of any cash surplus accumulated in the
General Fund as of the end of any fiscal year, be deposited in the
Debt Reduction Reserve Fund for the exclusive purpose of reducing the
aggregate amount of outstanding State funded debt obligations.

Section 67-c creates the New York. State Debt Management Board
consisting of the Governor, the Comptroller, and a third person, who
shall be a financial expert jointly selected by the Governor and the
Comptroller.

Section 67-d sets forth the powers and duties of the Board, which
include monitoring all debt of the State and public authorities,
establishing an annual debt affordability level, and adopting debt
policy standards addressing:

* structure for State funded debt;

* criteria for refunding, including extending debt and use of savings;

*use of credit enhancements and derivative instruments;

*goals for the proportion of state capital spending to be financed
with debt and the proportion to be financed with current
appropriations;

*methods of sale;

*criteria for selecting State funded obligations to be retired or
defeased by the use of a portion of any cash surplus;


*the definition of non-recurring revenues to be used for the funding
of capital projects or for the purpose of retiring or defeating bonds
or notes previously issued;

*other policy standards the Board may determine to be appropriate; and

*policy standards for the issuance of debt obligations by Class A and
Class B public authorities.

Section 67-e requires the Comptroller to annually report to the Debt
Management Board on the amount of State funded debt outstanding.

Section 67-f sets forth general limitations on State funded debt and
State debt service payments, including:

*implementation of an overall debt cap, effective on and after April
1, 2015, on all State funded debt to limit debt to no more than 5% of
the total personal income in the State;

*implementation of the annual debt affordability level established by
the Debt Management Board;

*prohibiting the use of State funded debt for any purpose other than a
capital purpose;

*requiring all State funded debt to be in the form of obligations
issued by the Comptroller, beginning with the fiscal year that is at
least one year after the effective date of an amendment to the
Constitution;

*prohibiting the issuance of any state funded debt obligation with a
final maturity exceeding the probable life of the capital project
financed by such debt, as well as prohibiting any maturity longer than
30 years;

*up to and including State fiscal year 2018-2019, limiting the
issuance of new State funded debt obligations in any fiscal year to no
more than 9596 of the amount of the State funded debt incurred in the
last complete fiscal year.

*Prohibiting the issuance of new debt supported by a state agreement
to make payments only if expected debt service sources fall short.

Section 2 amends subdivision 2 of section 6B-a of Article 5-C
("Revenue Bond Financing Program") of the State Finance Law to conform
the definition of "authorized purpose" to the definition of "state
funded debt" set forth in new State Finance Law Article 5-B, as added
by this bill.

Section 3 amends subdivision 6 and adds a new subdivision 7 to section
68-c of the State Finance Law to prohibit, on a contingent basis, the
issuance of revenue bonds when and if the Constitution is amended to
eliminate backdoor borrowing.

Section 4 amends section 97-rrr of the State Finance Law to dedicate
the moneys of the Debt Reduction Reserve Fund to the purpose of
retiring or defeasing State funded debt obligations.

Section 5 adds a new subdivision 4 to section 24 of the State Finance
Law to require the inclusion in the budget bills submitted with each
year's Executive Budget an appropriation of the available balance from
the Debt Reduction Reserve Fund to be used exclusively for the purpose
of retiring or defeasing State funded debt obligations.



Section 6 adds a new section 2 to the Public Authorities Law to
establish a new comprehensive definition of a public authority. The
term "public authority' is defined as:

(i) any public authority, public benefit corporation, or commission
created by or existing under the Public Authorities Law or any other
law;

(ii) a public authority or a public benefit corporation, at least one
of whose members is appointed by the governor or who serves by virtue
of holding a civil office of the State;

(iii) a not-for-profit corporation affiliated with, sponsored by, or
created by a State agency;

(iv) a not-for-profit corporation created by or existing under article
2 of the racing, pari-mutuel wagering and breeding law and operating
under an exclusive franchise granted by the state;

(v) a local industrial development agency or other local public
benefit corporation; or

(vi) a subsidiary or affiliate of such a public authority.

Section 6 also adds definitions of the terms "affiliate," "affiliated
with," "subsidiary" and "other debt obligations." This section
categorizes all current or future public authorities into four
classes: Class A: major public authorities with statewide or regional
significance and their subsidiaries; Class B: entities affiliated with
a State agency or created by the State that have limited jurisdiction
but a majority of board members appointed by the Governor or other
State officials; Class C: entities with local jurisdiction; and Class
D: entities with interstate or international jurisdiction. Classes A,
B, C and D include, but are not limited to, the more than 720 public
authorities specified by name in the bill.

Section 7 adds a new section 3 to the Public Authorities Law imposing
limitations on the terms and conditions of any Class A or Class B
public authority debt obligations issued after the effective date of
this legislation. No Class A or Class B public authority may include
in a bond covenant or other debt instrument a requirement or guarantee
that the public authority will remain in existence until the debt is
repaid. Unless (i) permitted under a statutory debt cap applicable to
a Class A or Class B Public authority, or (ii) specifically authorized
by an act of the Legislature, no Class A or Class B public authority
can issue any bonds or notes, nor incur any other similar debt.
Refundings or refinancings would be permitted if they achieve cost
savings without extending the maturity of any existing debt.  Further,
no Class A or Class B public authority can include any provision
having the effect of extending the life of the authority when
refunding or refinancing any current debt obligation.

Section 8 amends subdivision 1 of section 51 of the Public Authorities
Law to expand the jurisdiction of the Public Authorities Control Board
to approving the financing and construction of projects of all Class A
and Class B public authorities.

Section 9 adds a new subdivision 6 to section 51 of the Public
Authorities Law to require an annual report by the Public Authorities
Control Board detailing (i) the aggregate amount of debt approved by
the Board during the fiscal year, (ii) a list of the individual
projects approved by the Board for each public authority during the
fiscal year, and (iii) the total amount of new debt obligations the
Board has approved during the fiscal year for issuance by each public
authority.

Section 10 amends subdivision 2 of section 365 of the Public
Authorities Law to delete the requirement that Thruway Authority bonds
and notes sold at public sale must be issued by the Comptroller.

Section 11 provides for an immediate effective date.

 JUSTIFICATION :

The construction of roads, bridges, canals, housing developments,
hospitals, universities mass transit and other.  government facilities
has made New York the Empire State. Debt is a tool that, when used
prudently, helps governments plan and pay for such large public works
projects. Borrowing in moderation allows those who will benefit from
necessary, worthwhile capital investment to pay the costs.

This bill proposes major reforms that should be enacted into law to
restore accountability, and transparency and limit debt to an
affordable level. It is long past time for effective reform that will
decrease the State's propensity to utilize debt financing, recognize
the value of pay as-you-go spending and open the process to the
public. Successful reforms must implement debt management policy that
balances need with capacity and intergenerational equity. To be
competitive with other states, New York must continue to make needed,
affordable capital investments.

Establishing a new, all-inclusive definition of "State funded debt"
will provide a more comprehensive accounting of the State's debt
portfolio, eliminate loopholes in the current statutes and insure that
all State funded debt is subject to the cap equal to 5 percent of the
State's personal income. As New York's outstanding debt is currently
equal to 6.5 percent of personal income, steps will have to be taken
to bring down the debt to 5 percent.

To force discipline and reach the proposed Constitutional debt cap of
5 percent by State Fiscal Year 2018-19, the legislation limits annual
debt issuance to 95 percent of the last complete fiscal year's
issuance starting immediately and continuing through March 31, 2019.
The establishment of a Debt Management Board will provide coordinated
policy direction, monitoring and reporting for all debt, including
debt issued by public authorities. The three-person Debt Management
Board made up of the Governor, the State Comptroller, and a financial
expert, selected jointly by the Governor and Comptroller, would be
vested with the responsibility to issue a binding debt affordability
study, annually by October 31. Additionally, the board would forecast
the debt affordability level expected for the two succeeding fiscal
years based on multiyear projections of State revenues and spending.
With this structure, the State's chief executive and the State's chief
fiscal officer jointly would be responsible for controlling, planning,
implementing, reporting and managing the State's borrowing from
beginning to end. Beginning in, the issuance of State debt will be
subject to the Board's debt affordability level.

Additional oversight of public authority debt is provided by expanding
the responsibilities of the Public Authorities Control Board (RACE) to
include the oversight of all major State and regional authorities,
requiring an annual report from the PACB and requiring that all public
authority negotiated bond sales be submitted to the Comptroller for
approval of their terms and conditions.

There is a suitable time and an inappropriate time to utilize debt. In
New York State, debt has been utilized all too often, for
objectionable purposes, and has become an easy answer to solving the
State's fiscal problems. With no sign of this harmful trend ceasing
anytime in the future, it is time for reform. Fox the foregoing
reasons, the Comptroller respectfully urges passage of this
legislation.
 PRIOR LEGISLATIVE HISTORY :

S.8175 of 2006: Referred to Rules
S.1303 of 2007: Referred to Finance
S.1303 of 2008: Referred to Finance
S.521 of 2010: Referred to Finance
S.2392A of 2012: Referred to Finance
S.1925 of 2014: Referred to Finance.

 EFFECTIVE DATE :
This act shall take effect immediately, provided, however, that
paragraph a of subdivision 3 and subdivision 6 of section 67-f of the
state finance law, as added by section one of this act, and section
three of this act, shall take effect on the same date as a concurrent
resolution of the Senate and Assembly entitled "proposing amendments
to article 7 of the state constitution, in relation to the
authorization of debt in times of public emergency, a limit on the
total amount of state debt, the establishment of a debt management
board, and refunding of state debts", takes effect.

2017-S4303 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4303
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2017
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation to the creation of  a
   debt  management  board,  using  surplus  moneys to reduce outstanding
   state funded debt and limiting the amount of state  funded  debt  that
   may  be  incurred; to amend the public authorities law, in relation to
   defining and listing public authorities, limiting the debt  of  public
   authorities,  the  approval by the comptroller of the terms and condi-
   tions of bonds or notes issued by public authorities, the  powers  and
   duties  of  the  public authorities control board, and the issuance of
   bonds and notes of the New York state thruway authority; and to repeal
   article 5-B of the state finance law relating to limitations on state-
   supported debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Article 5-B of the state finance law is REPEALED and a new
 article 5-B is added to read as follows:
                                ARTICLE 5-B
                           DEBT MANAGEMENT BOARD
                                    AND
                     LIMITATIONS ON STATE FUNDED DEBT
 SECTION 67-A. DEFINITIONS.
         67-B. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING  STATE  FUNDED
                 DEBT.
         67-C. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE.
         67-D. POWERS AND DUTIES OF THE BOARD.
         67-E. COMPTROLLER'S DUTIES WITH RESPECT TO BOARD.
         67-F. LIMITATIONS  ON  STATE  FUNDED DEBT AND STATE DEBT SERVICE
                 PAYMENTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06528-01-7

 S. 4303                             2
 
   § 67-A. DEFINITIONS. AS USED IN THIS ARTICLE  AND  ARTICLE  FIVE-C  OF
 THIS  CHAPTER  THE  FOLLOWING  TERMS  SHALL  HAVE THE MEANINGS SET FORTH
 BELOW:
   1.  "BOARD" SHALL MEAN THE NEW YORK STATE DEBT MANAGEMENT BOARD ESTAB-
 LISHED BY SECTION SIXTY-SEVEN-C OF THIS ARTICLE.
   2. "CAPITAL PURPOSE" SHALL MEAN ANY PROJECT INVOLVING:
   (A) THE ACQUISITION, CONSTRUCTION,  DEMOLITION  OR  REPLACEMENT  OF  A
 FIXED ASSET;
   (B)  THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY
 EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS  CAPACI-
 TY;
   (C)  THE  PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI-
 TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET,  INCLUD-
 ING  THE  PREPARATION  AND  REVIEW OF PLANS AND SPECIFICATIONS INCLUDING
 ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND  SUB-SURFACE  INVESTI-
 GATIONS INCIDENTAL THERETO; OR
   (D)  THE  COSTS  OF  ISSUING  DEBT  OBLIGATIONS  TO  FINANCE A CAPITAL
 PURPOSE.
   3. "CASH SURPLUS" SHALL MEAN THE AMOUNT BY WHICH GENERAL FUND RECEIPTS
 IN A FISCAL YEAR EXCEED GENERAL FUND EXPENDITURES IN SUCH FISCAL YEAR.
   4. "CONDUIT DEBT OBLIGATIONS" SHALL MEAN A DEBT OBLIGATION ISSUED BY A
 PUBLIC AUTHORITY (HEREINAFTER REFERRED TO IN  THIS  SUBDIVISION  AS  THE
 "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY (HEREINAFTER REFERRED TO IN
 THIS  SUBDIVISION  AS  THE "CONDUIT BORROWER") OTHER THAN THE STATE OR A
 POLITICAL SUBDIVISION OF THE STATE, WHERE PAYMENT OF THE  OBLIGATION  IS
 TO  BE  MADE  FROM  FUNDS  OF THE CONDUIT BORROWER, THE SECURITY FOR THE
 OBLIGATION IS THE CREDIT OF THE CONDUIT BORROWER AND  NO  FUNDS  OF  THE
 CONDUIT  ISSUER,  THE  STATE OR A POLITICAL SUBDIVISION OF THE STATE ARE
 PLEDGED TO SECURE THE OBLIGATION, WHETHER OR NOT THE OBLIGATION  OF  THE
 CONDUIT  ISSUER,  THE  STATE  OR  POLITICAL  SUBDIVISION OF THE STATE IS
 SUBJECT TO APPROPRIATION OR IS OTHERWISE CONTINGENT.
   5. "STATE BACKED DEBT" SHALL MEAN ANY DEBT OR OBLIGATION,  OTHER  THAN
 STATE  DEBT,  THAT  IS  SUPPORTED  IN  WHOLE OR IN PART BY ANY FINANCING
 ARRANGEMENT WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED,  WHETHER
 BY  LAW,  CONTRACT  OR  OTHERWISE,  TO MAKE PAYMENTS WHICH WILL BE USED,
 DIRECTLY OR INDIRECTLY,  FOR  THE  PAYMENT  OF  PRINCIPAL,  INTEREST  OR
 RELATED  PAYMENTS  ON  INDEBTEDNESS  INCURRED OR CONTRACTED BY THE STATE
 ITSELF FOR ANY PURPOSE, OR BY ANY STATE AGENCY,  MUNICIPALITY,  INDIVID-
 UAL,  PUBLIC  AUTHORITY  OR  OTHER  PUBLIC OR PRIVATE CORPORATION OR ANY
 OTHER ENTITY FOR STATE CAPITAL  OR  OPERATING  PURPOSES  OR  TO  FINANCE
 GRANTS,  LOANS  OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY OR ON
 BEHALF OF THE STATE FOR ANY PURPOSE. IF THE STATE AGREES TO MAKE  FUTURE
 REVENUES  FROM  A  SPECIFIC  STATE  SOURCE  AVAILABLE FOR THE PURPOSE OF
 SUPPORTING DEBT OF ANY MUNICIPALITY,  INDIVIDUAL,  PUBLIC  AUTHORITY  OR
 OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, SUCH DEBT SHALL
 BE  CONSIDERED  TO BE A DEBT FOR THE PURPOSE OF FINANCING A STATE GRANT,
 LOAN OR OTHER ASSISTANCE PAYMENT AND SHALL BE A "STATE BACKED DEBT"  FOR
 THE  PURPOSES  OF  THIS ARTICLE. THE TERM "STATE BACKED DEBT" APPLIES TO
 ALL DEBT OR OBLIGATIONS DESCRIBED IN  THIS  SUBDIVISION  FOR  WHICH  THE
 STATE AGREES, OR HAS IN THE PAST AGREED, TO MAKE PAYMENTS (A) WHETHER OR
 NOT THE OBLIGATION OF THE STATE TO MAKE PAYMENTS IS SUBJECT TO APPROPRI-
 ATION  OR IS OTHERWISE CONTINGENT, OR (B) WHETHER OR NOT DEBT SERVICE IS
 TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY  THE  STATE  TO  ANOTHER
 PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS.
   6. "STATE FUNDED DEBT" SHALL MEAN THE COMBINED TOTAL OF ALL STATE DEBT
 AND ALL STATE BACKED DEBT, EXCEPT SHORT TERM DEBT INCURRED IN ACCORDANCE

 S. 4303                             3
 
 WITH  SECTION  NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT
 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE  CONSTI-
 TUTION,  AND REFUNDING DEBT INCURRED IN ACCORDANCE WITH SECTION THIRTEEN
 OF ARTICLE SEVEN OF THE CONSTITUTION.
   7.  "STATE  DEBT"  SHALL  MEAN  ALL  BONDS AND BOND ANTICIPATION NOTES
 ISSUED BY THE STATE COMPTROLLER PURSUANT TO ARTICLE FIVE OF  THIS  CHAP-
 TER.
   8.  "TOTAL  PERSONAL INCOME OF THE STATE" SHALL MEAN THE MOST RECENTLY
 PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF
 THE STATE BY THE UNITED STATES DEPARTMENT OF COMMERCE OR  ANY  SUCCESSOR
 AGENCY  FOR  THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS FOR WHICH
 INFORMATION IS AVAILABLE PRIOR TO OCTOBER  THIRTY-FIRST  OF  EACH  YEAR.
 SUBSEQUENT  REVISIONS  OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT FOR SUCH
 CALENDAR QUARTERS SHALL NOT AFFECT THE  VALIDITY  OF  THE  DETERMINATION
 MADE BY THE BOARD FOR ANY FISCAL YEAR.
   § 67-B. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED DEBT.
 AT  THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS REMAIN-
 ING IN THE GENERAL FUND AFTER THE TRANSFER PURSUANT TO  SECTION  NINETY-
 TWO  OF  THIS CHAPTER SHALL BE TRANSFERRED TO THE DEBT REDUCTION RESERVE
 FUND ESTABLISHED BY SECTION NINETY-SEVEN-RRR OF THIS CHAPTER,  AS  ADDED
 BY  SECTION  THIRTY-SIX  OF PART B OF CHAPTER FIFTY-SEVEN OF THE LAWS OF
 NINETEEN HUNDRED NINETY-EIGHT.  THE PORTION TO BE TRANSFERRED  SHALL  BE
 EQUAL TO THE PROJECTED RATIO OF TOTAL DEBT SERVICE DISBURSEMENTS FOR THE
 FISCAL  YEAR  TO TOTAL GOVERNMENTAL FUNDS DISBURSEMENTS FOR STATE AGENCY
 OPERATIONS FOR THE FISCAL YEAR.
   § 67-C. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE.  1.
 THE  NEW  YORK STATE DEBT MANAGEMENT BOARD IS HEREBY ESTABLISHED TO HAVE
 AND EXERCISE  THE  POWERS,  DUTIES  AND  PREROGATIVES  PROVIDED  BY  THE
 PROVISIONS OF THIS ARTICLE AND ANY OTHER PROVISION OF LAW.
   2. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF THREE PERSONS, INCLUD-
 ING THE GOVERNOR, THE COMPTROLLER AND A THIRD PERSON WHO SHALL BE JOINT-
 LY  APPOINTED BY THE GOVERNOR AND THE COMPTROLLER. THE TERM OF OFFICE OF
 THE MEMBERS OF THE BOARD SHALL BE THE SAME AS THE TERMS OF OFFICE OF THE
 GOVERNOR AND THE COMPTROLLER. IF THE THIRD MEMBER OF THE BOARD  RESIGNS,
 BECOMES  INCAPACITATED, IS JOINTLY REMOVED BY THE GOVERNOR AND THE COMP-
 TROLLER OR IS OTHERWISE UNABLE TO SERVE,  THE  GOVERNOR  AND  THE  COMP-
 TROLLER  SHALL JOINTLY APPOINT A SUCCESSOR TO SERVE THE REMAINDER OF THE
 UNEXPIRED TERM.  THE GOVERNOR SHALL BE THE  CHAIRPERSON  OF  THE  BOARD.
 THE  BOARD  SHALL  ACT  BY  MAJORITY OF ALL OF THE MEMBERS OF THE BOARD,
 EXCEPT THAT CHANGING THE DEBT AFFORDABILITY LEVEL PREVIOUSLY ESTABLISHED
 BY THE BOARD SHALL REQUIRE UNANIMOUS APPROVAL BY ALL THE MEMBERS OF  THE
 BOARD.  ANY  ACTION  BY  THE BOARD SHALL BE EVIDENCED BY A CERTIFICATION
 THEREOF SIGNED BY A MAJORITY OF ALL THE MEMBERS, EXCEPT THAT ALL MEMBERS
 SHALL SIGN A CERTIFICATION OF ANY ACTION REQUIRING  UNANIMOUS  APPROVAL.
 EACH MEMBER OF THE BOARD SHALL BE ENTITLED TO DESIGNATE A REPRESENTATIVE
 TO  ATTEND  MEETINGS  OF  THE  BOARD  IN HIS OR HER PLACE AND TO VOTE OR
 OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER ABSENCE. NOTICE OF SUCH
 DESIGNATION SHALL BE FURNISHED IN WRITING TO THE BOARD BY THE  DESIGNAT-
 ING  MEMBER.  A REPRESENTATIVE SHALL SERVE AT THE PLEASURE OF THE DESIG-
 NATING MEMBER DURING THE MEMBER'S TERM OF OFFICE. A REPRESENTATIVE SHALL
 NOT BE AUTHORIZED TO DELEGATE ANY OF HIS OR HER DUTIES OR POWERS TO  ANY
 OTHER PERSON.
   3.  THE  THIRD  MEMBER JOINTLY APPOINTED BY THE GOVERNOR AND THE COMP-
 TROLLER SHALL BE A FINANCIAL EXPERT WITH EXPERIENCE IN  PUBLIC  FINANCE,
 ECONOMICS, ACADEMICS OR GOVERNMENT.

 S. 4303                             4
 
   4.  ALL  THE  MEMBERS  OF THE BOARD AND THEIR REPRESENTATIVES SHALL BE
 ENTITLED TO  REIMBURSEMENT  FOR  THEIR  ACTUAL  AND  NECESSARY  EXPENSES
 INCURRED  IN  THE  PERFORMANCE OF THEIR OFFICIAL DUTIES PURSUANT TO THIS
 SECTION OR ANY OTHER PROVISION OF LAW.
   5.  THE  BOARD SHALL MEET SEMI-ANNUALLY OR MORE FREQUENTLY AT THE CALL
 OF THE CHAIRPERSON. MEETINGS OF THE BOARD SHALL BE SUBJECT TO  THE  OPEN
 MEETINGS LAW ESTABLISHED BY ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
   §  67-D.  POWERS AND DUTIES OF THE BOARD.  1. THE BOARD SHALL HAVE THE
 POWER AND THE DUTY TO (A) ANNUALLY DETERMINE THE TOTAL DEBT LIMIT OF THE
 STATE BY CALCULATING THE DOLLAR AMOUNT EQUIVALENT TO FIVE PERCENT OF THE
 TOTAL PERSONAL INCOME OF THE STATE, AS DEFINED IN SECTION  SIXTY-SEVEN-A
 OF  THIS ARTICLE, AND (B) ANNUALLY PRESCRIBE A DEBT AFFORDABILITY LEVEL,
 WHICH ON AND AFTER APRIL FIRST, TWO  THOUSAND  TWENTY-SIX  SHALL  BE  NO
 HIGHER THAN THE TOTAL DEBT LIMIT OF THE STATE.
   2.  ON  OR  BEFORE  OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL
 DETERMINE THE TOTAL DEBT LIMIT OF THE STATE FOR THE  NEXT  FISCAL  YEAR,
 AND  REPORT  THE  LIMIT  TO  THE  TEMPORARY PRESIDENT OF THE SENATE, THE
 SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER  OF
 THE  SENATE  FINANCE COMMITTEE, AND THE CHAIRPERSON AND RANKING MINORITY
 MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE  THE  SAME
 DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT.
   3.  ON  OR  BEFORE  OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL
 PRESCRIBE THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE NEXT  FISCAL
 YEAR, AND REPORT THE LEVEL TO THE TEMPORARY PRESIDENT OF THE SENATE, THE
 SPEAKER  OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER OF
 THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON AND  RANKING  MINORITY
 MEMBER  OF  THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE THE SAME
 DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LEVEL.  WITHIN
 THE  LIMITATION  ESTABLISHED  BY  THE TOTAL DEBT LIMIT OF THE STATE, THE
 DEBT AFFORDABILITY LEVEL OF THE STATE SHALL BE BASED  UPON  THE  BOARD'S
 EVALUATION  OF  THE TOTAL AMOUNT OF ADDITIONAL DEBT THAT MAY BE INCURRED
 AND THE TOTAL DEBT SERVICE OBLIGATIONS AND RELATED PAYMENTS THAT MAY  BE
 UNDERTAKEN  BY  THE STATE WITHOUT OVERBURDENING PRESENT OR FUTURE GENER-
 ATIONS, TAKING INTO  ACCOUNT  THE  CURRENT  AND  EXPECTED  REVENUES  AND
 EXPENSES  OF  THE  STATE,  THE CURRENT AND EXPECTED TRENDS AFFECTING THE
 ECONOMY OF THE STATE, AND SUCH OTHER FACTORS AS THE  BOARD  DEEMS  RELE-
 VANT.  IN  ADDITION TO THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE
 NEXT FISCAL YEAR, THE BOARD'S REPORT TO THE LEGISLATURE AND ANNOUNCEMENT
 TO THE PUBLIC SHALL INCLUDE THE BOARD'S FORECAST OF THE DEBT AFFORDABIL-
 ITY LEVELS EXPECTED FOR THE TWO SUCCEEDING FISCAL YEARS.  FOLLOWING  THE
 BOARD'S  ESTABLISHMENT  OF A DEBT AFFORDABILITY LEVEL OF THE STATE FOR A
 FISCAL YEAR, THERE SHALL BE NO CHANGE IN SUCH LEVEL (OTHER THAN  A  DEBT
 AFFORDABILITY  LEVEL  FORECAST  FOR  A FISCAL YEAR AFTER THE NEXT FISCAL
 YEAR) EXCEPT WITH THE UNANIMOUS APPROVAL OF THE MEMBERS OF THE BOARD.
   4. THE BOARD SHALL HAVE THE POWER AND IT SHALL BE  ITS  DUTY  TO  MAKE
 RECOMMENDATIONS  TO  THE  GOVERNOR  AND  THE  LEGISLATURE OF POLICIES TO
 GOVERN THE ISSUANCE OF ALL STATE FUNDED DEBT AND OTHER CAPITAL FINANCING
 MATTERS.
   5. THE BOARD SHALL ADOPT POLICY STANDARDS RELATING TO THE ISSUANCE  OF
 ALL  STATE  FUNDED  DEBT AND FOR CAPITAL FINANCING. SUCH STANDARDS SHALL
 REQUIRE THE UNANIMOUS APPROVAL OF ALL THREE MEMBERS OF  THE  BOARD,  AND
 SHALL COVER, AMONG OTHER ITEMS, THE FOLLOWING:
   (A)  STRUCTURES FOR STATE FUNDED DEBT, SUCH AS RATE OF AMORTIZATION OF
 PRINCIPAL, THE USE OF PREMIUMS AND CAPITALIZATION OF INTEREST  ON  STATE
 FUNDED DEBT;

 S. 4303                             5
 
   (B)  CRITERIA  FOR  REFUNDING OUTSTANDING STATE FUNDED DEBT INCLUDING,
 BUT NOT LIMITED TO, SUCH MATTERS AS EXTENSION OF THE TERM OF OUTSTANDING
 DEBT, PRESENT VALUE SAVINGS AND DISTRIBUTION OF ACTUAL SAVINGS;
   (C)  THE  USE OF CREDIT ENHANCEMENTS, DERIVATIVE INSTRUMENTS AND VARI-
 ABLE OR FIXED RATE DEBT OBLIGATIONS WITH RESPECT TO STATE FUNDED DEBT;
   (D) GOALS FOR THE PROPORTION OF STATE CAPITAL SPENDING TO BE  FINANCED
 WITH DEBT AND THE PROPORTION TO BE FINANCED WITH CURRENT APPROPRIATIONS;
   (E)  THE  METHOD  OF SALE, SUCH AS COMPETITIVE OR NEGOTIATED, OF STATE
 FUNDED DEBT OBLIGATIONS;
   (F) CRITERIA TO BE USED IN SELECTING STATE FUNDED DEBT OBLIGATIONS  TO
 BE  RETIRED  OR  DEFEASED BY THE USE OF THE PORTION OF ANY CASH SURPLUS,
 DETERMINED PURSUANT TO SECTION SIXTY-SEVEN-B OF THIS ARTICLE, THAT SHALL
 BE DEDICATED TO THE EXCLUSIVE PURPOSE OF REDUCING THE  AGGREGATE  AMOUNT
 OF OUTSTANDING STATE FUNDED DEBT OBLIGATIONS;
   (G)  THE  DEFINITION OF NON-RECURRING REVENUES WHICH SHALL BE USED FOR
 THE FUNDING OF CAPITAL PROJECTS WHICH HAVE BEEN AUTHORIZED BY LAW TO  BE
 FINANCED THROUGH THE ISSUANCE OF STATE FUNDED DEBT OR FOR THE PURPOSE OF
 RETIRING OR DEFEASING BONDS OR NOTES PREVIOUSLY ISSUED;
   (H) SUCH OTHER POLICY MATTERS RELATING TO THE ISSUANCE OF STATE FUNDED
 DEBT AS THE BOARD MAY DETERMINE TO BE APPROPRIATE; AND
   (I)  POLICY  STANDARDS TO BE FOLLOWED BY STATE AUTHORITIES, AS DEFINED
 IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, IN RELATION TO  THE  ISSU-
 ANCE  BY  SUCH PUBLIC AUTHORITIES OF DEBT OBLIGATIONS OTHER THAN CONDUIT
 DEBT OBLIGATIONS.  IN THE DISCRETION OF  THE  COMPTROLLER,  SUCH  POLICY
 STANDARDS  MAY  BE  APPLIED BY THE COMPTROLLER IN THE EXERCISE OF HIS OR
 HER CONSTITUTIONAL AUTHORITY TO SUPERVISE THE ACCOUNTS OF PUBLIC AUTHOR-
 ITIES, AS DEFINED IN SECTION TWO OF  THE  PUBLIC  AUTHORITIES  LAW,  AND
 POLITICAL SUBDIVISIONS.
   THE  BOARD  SHALL  ANNUALLY REVIEW THE POLICY STANDARDS AND ADOPT SUCH
 CHANGES OR ADDITIONS AS IT DEEMS ADVISABLE ON OR BEFORE THE  ANNIVERSARY
 DATE OF ITS ORIGINAL STANDARDS.
   §  67-E.  COMPTROLLER'S DUTIES WITH RESPECT TO BOARD.  THE COMPTROLLER
 SHALL COLLECT AND ANALYZE DATA WITH RESPECT TO OUTSTANDING STATE  FUNDED
 DEBT  AND,  AT LEAST ANNUALLY, ON OR BEFORE THE ONE HUNDRED FIFTIETH DAY
 FOLLOWING THE END OF THE STATE FISCAL YEAR, REPORT  TO  THE  BOARD,  THE
 GOVERNOR, THE TEMPORARY PRESIDENT AND THE MINORITY LEADER OF THE SENATE,
 AND  THE SPEAKER AND MINORITY LEADER OF THE ASSEMBLY ON THE CONDITION OF
 STATE FUNDED DEBT.  SUCH REPORT SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,
 THE  AMOUNT  OF STATE FUNDED DEBT OUTSTANDING, THE DIFFERENT ISSUERS AND
 CATEGORIES OF SUCH DEBT, AND ANY DIFFERENCES  IN  CREDIT  RATINGS  AMONG
 CATEGORIES AND ISSUES.
   §  67-F.  LIMITATIONS  ON  STATE  FUNDED  DEBT  AND STATE DEBT SERVICE
 PAYMENTS.  1. NO ADDITIONAL STATE FUNDED DEBT SHALL  BE  INCURRED  AFTER
 APRIL  FIRST,  TWO  THOUSAND TWENTY-SIX IF THE TOTAL PRINCIPAL AMOUNT OF
 SUCH ADDITIONAL DEBT, TOGETHER WITH THE TOTAL PRINCIPAL AMOUNT OF  STATE
 FUNDED  DEBT ALREADY OUTSTANDING AND THE TOTAL PRINCIPAL AMOUNT OF STATE
 FUNDED DEBT ALREADY AUTHORIZED BUT NOT YET  INCURRED,  IS  EQUAL  TO  OR
 GREATER  THAN  THE  TOTAL  DEBT  LIMIT OF THE STATE AS DETERMINED BY THE
 BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE.
   2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN  ACCORDANCE  WITH
 SECTION  NINE  OF  ARTICLE  SEVEN  OF  THE  CONSTITUTION, EMERGENCY DEBT
 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE  CONSTI-
 TUTION,  AND  REFUNDING  DEBT,  NO  STATE  FUNDED DEBT SHALL BE INCURRED
 EXCEPT TO FINANCE A CAPITAL PURPOSE.
   3. (A) ALL DEBT SUBJECT TO THE PROVISIONS OF THIS SECTION  (I)  SHALL,
 EXCEPT  FOR  REFUNDING  DEBT,  BE  INCURRED  ONLY  FOR A CAPITAL PURPOSE

 S. 4303                             6
 
 AUTHORIZED BY LAW, AND (II) SHALL, IF INCURRED ON OR AFTER THE FIRST DAY
 OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE EFFECTIVE
 DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITU-
 TION, BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER.
   (B)  ON  AND AFTER APRIL FIRST, TWO THOUSAND TWENTY-ONE, NO DEBT OBLI-
 GATION SUBJECT TO THE PROVISIONS OF THIS SECTION SHALL BE ISSUED  UNLESS
 THE COMPTROLLER DETERMINES THAT SUCH ISSUANCE IS WITHIN THE DEBT AFFORD-
 ABILITY  LEVEL  FOR  THAT FISCAL YEAR ESTABLISHED BY THE DEBT MANAGEMENT
 BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS  ARTICLE.  ON  OR  AFTER
 APRIL  FIRST,  TWO THOUSAND TWENTY-SIX, NO SUCH DEBT OBLIGATION SHALL BE
 ISSUED UNLESS THE COMPTROLLER DETERMINES THAT SUCH  ISSUANCE  IS  WITHIN
 (I) THE LIMIT ON STATE DEBT AND (II) THE DEBT AFFORDABILITY LEVEL ESTAB-
 LISHED BY THE BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE.
   4. NO STATE FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION
 WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT
 FINANCED  BY  SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF THIS CHAP-
 TER. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  NO
 STATE  FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH A
 FINAL MATURITY OF MORE THAN THIRTY YEARS.
   5. DURING EACH FISCAL YEAR BEGINNING ON OR AFTER THE EFFECTIVE DATE OF
 THIS SECTION, UP TO AND INCLUDING ANY FISCAL YEAR ENDING IN TWO THOUSAND
 TWENTY-FIVE NO NEW STATE FUNDED DEBT SHALL BE INCURRED IN  AN  AGGREGATE
 PRINCIPAL  AMOUNT EXCEEDING NINETY-FIVE PERCENT OF THE AGGREGATE PRINCI-
 PAL AMOUNT OF NEW STATE FUNDED DEBT INCURRED  IN  THE  PRECEDING  FISCAL
 YEAR.
   6.  NO  STATE  FUNDED  DEBT  OUTSTANDING ON THE EFFECTIVE DATE OF THIS
 SUBDIVISION SHALL BE REFUNDED UNLESS (A) SUCH REFUNDING IS CONDUCTED  IN
 ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION
 APPLIED,  AND  (B) ANY SUCH REFUNDING OBLIGATIONS ISSUED ON OR AFTER THE
 FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE
 EFFECTIVE DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE
 CONSTITUTION IMPOSING A LIMIT ON THE TOTAL AMOUNT  OF  STATE  DEBT,  ARE
 ISSUED  BY  THE  COMPTROLLER.  SUCH OUTSTANDING DEBT OBLIGATIONS AND THE
 DEBT SERVICE EXPENSES, DIRECT OR INDIRECT, REQUIRED FOR SUCH OBLIGATIONS
 SHALL BE INCLUDED IN THE DETERMINATION OF THE DEBT LIMIT  AND  THE  DEBT
 AFFORDABILITY LEVEL PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE.
   7.  DEBT  OBLIGATIONS  ISSUED TO REFUND OUTSTANDING STATE FUNDED DEBT,
 REGARDLESS OF WHETHER SUCH OUTSTANDING DEBT WAS INCURRED  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  THIS  SUBDIVISION,  SHALL  NOT  BE  COUNTED FOR THE
 PURPOSES OF THE DEBT LIMIT AND THE DEBT AFFORDABILITY  LEVEL  DETERMINED
 PURSUANT  TO  SECTION SIXTY-SEVEN-D OF THIS ARTICLE IF SUCH REFUNDING IS
 CONDUCTED IN ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE
 CONSTITUTION APPLIED. DEBT  SERVICE  EXPENSES  ON  DEBT  THAT  HAS  BEEN
 REFUNDED  IN  ACCORDANCE  WITH  SECTION THIRTEEN OF ARTICLE SEVEN OF THE
 CONSTITUTION SHALL BE EXCLUDED FOR THE DEBT AFFORDABILITY LEVEL  TO  THE
 EXTENT  THAT  SUCH  DEBT  SERVICE EXPENSES ARE TO BE PAID FROM AN ESCROW
 FUND ESTABLISHED WITH PROCEEDS OF THE REFUNDING DEBT, BUT  DEBT  SERVICE
 EXPENSES  ON  THE  REFUNDING DEBT SHALL BE INCLUDED EXCEPT TO THE EXTENT
 THAT SUCH DEBT SERVICE EXPENSES ARE TO BE PAID FROM SUCH AN ESCROW FUND.
 FOR THE PURPOSES OF THIS SUBDIVISION AND SUBDIVISIONS SIX AND  EIGHT  OF
 THIS  SECTION,  ANY REFUNDING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL
 MATURITY OF THE DEBT BEING REFUNDED SHALL BE DEEMED TO BE IN  COMPLIANCE
 WITH  THE  PROVISIONS  OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE
 SEVEN OF THE CONSTITUTION MADE APPLICABLE BY THIS SUBDIVISION  IF  THERE
 IS  AN ACTUAL DEBT SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT
 OF THE ISSUANCE OF THE REFUNDING DEBT.

 S. 4303                             7
 
   8. AFTER THE EFFECTIVE DATE OF  THIS  SECTION  THE  STATE  SHALL  NOT,
 EXCEPT  AS  SPECIFICALLY  AUTHORIZED  BY A PROVISION OF THE CONSTITUTION
 OTHER THAN SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION, AGREE TO
 MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETHER OR NOT SUBJECT TO  APPRO-
 PRIATION,  THAT  ARE  TO  BE  AVAILABLE  TO PAY DEBT SERVICE ON ANY DEBT
 INCURRED BY A MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR OTHER PUBLIC
 OR PRIVATE CORPORATION OR ANY OTHER ENTITY, FOR  ANY  PURPOSE,  IF  SUCH
 PAYMENTS  ARE  EXPECTED  TO  BE  USED  TO PAY DEBT SERVICE ONLY IF OTHER
 SOURCES AVAILABLE FOR  THE  PAYMENT  OF  DEBT  SERVICE  ARE  INADEQUATE.
 OUTSTANDING  DEBT  THAT  WOULD BE PROHIBITED BY THIS SUBDIVISION IF SUCH
 DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION  MAY
 BE  REFUNDED  BY  THE ENTITY THAT INCURRED THE OUTSTANDING DEBT PROVIDED
 THAT ALL PROVISIONS OF SUBDIVISIONS SIX AND SEVEN OF  THIS  SECTION  ARE
 COMPLIED  WITH  EXCEPT  THE  REQUIREMENT  THAT SUCH REFUNDING DEBT OBLI-
 GATIONS BE  ISSUED  BY  THE  COMPTROLLER,  AND  REFUNDING  DEBT  SERVICE
 EXPENSES  SHALL ONLY BE INCLUDED IN DEBT AFFORDABILITY DETERMINATIONS IF
 DEBT SERVICE EXPENSES  ON  THE  DEBT  BEING  REFUNDED  WOULD  HAVE  BEEN
 INCLUDED.
   §  2.  Subdivision  2  of  section  68-a  of the state finance law, as
 amended by section 43 of part HH of chapter 57 of the laws of  2013,  is
 amended to read as follows:
   2. "Authorized purpose" for purposes of this article and section nine-
 ty-two-z  of  this  chapter  shall mean any [purposes] PURPOSE for which
 [state-supported] STATE FUNDED debt, as defined by section sixty-seven-a
 of this chapter, may BE or has been issued except  debt  for  which  the
 state  is  constitutionally obligated thereunder to pay debt service and
 related expenses.
   § 3. Subdivision 6 of section 68-c of the state finance law, as  added
 by  section  2  of part I of chapter 383 of the laws of 2001, is amended
 and a new subdivision 7 is added to read as follows:
   6. Any resolution or other agreement authorizing revenue  bonds  under
 this  article  shall  reserve  the right of the state, upon amendment OF
 SECTION ELEVEN OF ARTICLE SEVEN  of  the  New  York  state  constitution
 allowing the issuance or assumption of bonds, notes or other obligations
 secured  by  revenues,  which  may include the revenues securing revenue
 bonds of authorized issuers (a) to assume, in whole or in part,  revenue
 bonds  of the authorized issuers, (b) to extinguish the existing lien of
 such resolution, or other agreement and (c) to substitute  security  for
 the  revenue  bonds of the authorized issuers, in each case only so long
 as such assumption, extinguishment or substitution is done in accordance
 with such resolution or other agreement AND SUCH  CONSTITUTIONAL  AMEND-
 MENT.
   7.  ON  AND  AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT
 LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT OF SECTION ELEV-
 EN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT  ON  THE  TOTAL
 AMOUNT OF STATE DEBT, NO REVENUE BONDS SHALL BE ISSUED.
   § 4. Section 97-rrr of the state finance law, as amended by section 45
 of  part  H  of  chapter  56  of the laws of 2000, is amended to read as
 follows:
   § 97-rrr. Debt reduction reserve fund. 1. There is hereby  established
 in the joint custody of the comptroller and the commissioner of taxation
 and finance a fund to be known as the debt reduction reserve fund. [Such
 fund shall be established as a capital projects fund.]
   2. Such fund shall consist of all monies credited or transferred ther-
 eto  from the general fund or from any other fund or sources pursuant to
 law.

 S. 4303                             8
 
   3. The monies in such fund, following appropriation by the legislature
 and allocation by the director of the budget, shall  be  available  [for
 the following purposes:
   (a)  for  the  payment of principal, interest, and related expenses on
 general obligation bonds, lease purchase payments, or special contractu-
 al obligation payments, or] ONLY for the [purposes] PURPOSE of  retiring
 or  defeasing  bonds  OR  NOTES previously issued, including any accrued
 interest thereon, for any [state-supported bonding program or  programs,
 and;
   (b)  for  the  funding of capital projects, equipment acquisitions, or
 similar expenses which have  been  authorized  by  law  to  be  financed
 through the issuance of bonds, notes, or other obligations] STATE FUNDED
 DEBT.
   §  5.  Section  24 of the state finance law is amended by adding a new
 subdivision 6 to read as follows:
   6. THE BUDGET BILLS SHALL INCLUDE AN APPROPRIATION  OF  THE  AVAILABLE
 BALANCE  FROM THE DEBT REDUCTION RESERVE FUND CREATED BY SECTION NINETY-
 SEVEN-RRR OF THIS CHAPTER, AS ADDED BY SECTION THIRTY-SIX OF PART  B  OF
 CHAPTER  FIFTY-SEVEN OF THE LAWS OF NINETEEN HUNDRED NINETY-EIGHT, TO BE
 USED EXCLUSIVELY FOR THE PURPOSE OF RETIRING OR DEFEASING  STATE  FUNDED
 DEBT  OBLIGATIONS IN ACCORDANCE WITH THE CRITERIA ESTABLISHED BY THE NEW
 YORK STATE DEBT MANAGEMENT BOARD.
   § 6. Subdivision 1 of section 51 of the  public  authorities  law,  as
 added  by chapter 838 of the laws of 1983, paragraph k as added by chap-
 ter 506 of the laws of 1995, paragraph l as added by chapter 468 of  the
 laws  of  2004,  paragraph m as added by section 10 of part E of chapter
 494 of the laws of 2009 and paragraph n as added by chapter 533  of  the
 laws of 2010, is amended to read as follows:
   1.  [The] SUBJECT TO (A) THE COMPTROLLER'S CONSTITUTIONAL AUTHORITY TO
 SUPERVISE THE ACCOUNTS OF  PUBLIC  AUTHORITIES,  (B)  THE  COMPTROLLER'S
 STATUTORY  AUTHORITY  TO  APPROVE THE TERMS AND CONDITIONS OF DEBT OBLI-
 GATIONS ISSUED BY PUBLIC  AUTHORITIES,  AND  (C)  THE  POLICY  STANDARDS
 ESTABLISHED  BY  THE  NEW  YORK  STATE DEBT MANAGEMENT BOARD PURSUANT TO
 SECTION SIXTY-SEVEN-D OF THE STATE FINANCE LAW  IN  RELATION  TO  PUBLIC
 AUTHORITY  DEBT,  THE  New  York  state public authorities control board
 shall have the power and it shall be its duty  to  receive  applications
 for  approval  of the financing and construction of any project proposed
 by any [of the following state public benefit corporations:
   a. New York state environmental facilities corporation
   b. New York state housing finance agency
   c. New York state medical care facilities finance agency
   d. Dormitory authority
   e. New York state urban development corporation
   f. Job development authority
   g. Battery park city authority
   h. New York state project finance agency
   i. State of New York mortgage agency
   j. New York state energy research and development authority
   k. Long Island Power Authority
   l. Albany Convention Center Authority
   m. State of New York Municipal  Bond  Bank  Agency  for  bonds  issued
 pursuant to section two thousand four hundred thirty-six-b of this chap-
 ter
   n. North Country Power Authority] CLASS A OR CLASS B PUBLIC AUTHORITY,
 AS DEFINED IN SECTION TWO OF THIS CHAPTER.

 S. 4303                             9
 
 Any  application  made  concerning  a  project  shall include the terms,
 conditions and dates of the repayment of state appropriations authorized
 by law pursuant to a repayment agreement, AND A CURRENT LISTING  OF  ALL
 OUTSTANDING  DEBT  AND  DEBT  SERVICE  OBLIGATIONS OF THE APPLICANT. Any
 subsidiary  of,  or corporation with the same members or directors as, a
 public benefit corporation subject to the  provisions  of  this  section
 shall  also  be  subject to the provisions of this section. All applica-
 tions and submissions to the board required to be made by  a  subsidiary
 shall  be made on behalf of such subsidiary by the public benefit corpo-
 ration which created  the  subsidiary.  No  public  benefit  corporation
 subject  to  the  provisions  of this section shall make any commitment,
 enter into any agreement or incur any indebtedness for  the  purpose  of
 acquiring,  constructing, or financing any project unless prior approval
 has been received from the board by such public benefit  corporation  as
 provided herein.
   §  7.  Section 51 of the public authorities law is amended by adding a
 new subdivision 6 to read as follows:
   6. NOT LATER THAN NINETY DAYS AFTER THE END OF EACH FISCAL  YEAR,  THE
 BOARD SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER, THE TEMPORARY PRES-
 IDENT  AND  THE  MINORITY  LEADER OF THE SENATE, AND THE SPEAKER AND THE
 MINORITY LEADER OF THE ASSEMBLY AN  ANNUAL  REPORT  DETAILING:  (A)  THE
 AGGREGATE AMOUNT OF DEBT APPROVED BY THE BOARD DURING SUCH FISCAL YEAR;
   (B)  A  LIST OF THE INDIVIDUAL PROJECTS APPROVED BY THE BOARD FOR EACH
 PUBLIC AUTHORITY DURING SUCH FISCAL YEAR; AND
   (C) THE TOTAL AMOUNT OF NEW DEBT OBLIGATIONS THE  BOARD  HAS  APPROVED
 DURING SUCH FISCAL YEAR FOR ISSUANCE BY EACH PUBLIC AUTHORITY.
   THE  BOARD  SHALL  PUBLISH  SUCH  REPORT BY POSTING SUCH REPORT ON THE
 BOARD'S INTERNET WEBSITE. EACH SUCH REPORT POSTED ON THE BOARD'S  INTER-
 NET  WEBSITE  SHALL  BE  MAINTAINED  ON SUCH WEBSITE FOR AT LEAST TWELVE
 MONTHS OR UNTIL THE NEXT SUCH REPORT IS POSTED ON SUCH WEBSITE, WHICHEV-
 ER IS LATER. THE BOARD SHALL ISSUE A NEWS RELEASE ANNOUNCING SUCH REPORT
 TO NEWSPAPERS OF GENERAL  CIRCULATION  AND  RADIO  AND  TELEVISION  NEWS
 BUREAUS WITHIN THE STATE.
   §  8.  Subdivision  2 of section 365 of the public authorities law, as
 separately amended by sections 349 and 381 of chapter 190 of the laws of
 1990, is amended to read as follows:
   2. The notes and bonds shall be authorized by resolution of the board,
 shall bear such date or dates and mature at such time or times,  in  the
 case  of  notes  and  any renewals thereof within five years after their
 respective dates and in the case of bonds not exceeding forty years from
 their respective dates, as such resolution or resolutions  may  provide.
 The  notes  and  bonds  shall bear interest at such rate or rates, be in
 such denominations, be in such form, either coupon or registered,  carry
 such  registration privileges, be executed in such manner, be payable in
 such medium of payment, at such place or places, and be subject to  such
 terms of redemption as such resolution or resolutions may provide. Bonds
 and  notes shall be sold by the authority, at public or private sale, at
 such price or prices as the authority may determine. Bonds and notes  of
 the  authority shall not be sold by the authority at private sale unless
 such sale and the terms thereof have been approved  in  writing  by  the
 comptroller, where such sale is not to the comptroller, or by the direc-
 tor  of  the  budget,  where such sale is to the comptroller. [Bonds and
 notes sold at public sale shall be sold by the comptroller, as agent  of
 the authority, in such manner as the authority, with the approval of the
 comptroller, shall determine.]

 S. 4303                            10
 
   §  9.  This act shall take effect immediately; provided, however, that
 paragraph (a) of subdivision 3 and subdivision 6 of section 67-f of  the
 state  finance  law,  as  added  by section one of this act, and section
 three of this act, shall take effect on the same date  as  a  concurrent
 resolution  of the Senate and Assembly entitled "proposing amendments to
 article 7 of the constitution, in relation to the authorization of  debt
 in times of public emergency, a limit on the total amount of state debt,
 the  establishment  of  a  debt  management board and refunding of state
 debts", takes effect.

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Senate Bill S4303

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

2017-S4303 (ACTIVE) - Details

2017-S4303 (ACTIVE) - Summary

2017-S4303 (ACTIVE) - Sponsor Memo

2017-S4303 (ACTIVE) - Bill Text download pdf

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Senate Bill S4303

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Sponsored By

Fred Akshar

Archive: Last Bill Status - In Senate Committee Finance Committee

2017-S4303 (ACTIVE) - Details

2017-S4303 (ACTIVE) - Summary

2017-S4303 (ACTIVE) - Sponsor Memo

2017-S4303 (ACTIVE) - Bill Text download pdf

Comments