NY State Senate Bill 2017-S4302

Archive: Last Bill Status - In Senate Committee Judiciary 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 15, 2018	opinion referred to judiciary
Jan 12, 2018	to attorney-general for opinion
Jan 03, 2018	referred to judiciary
Mar 10, 2017	opinion referred to judiciary
Feb 16, 2017	to attorney-general for opinion
Feb 08, 2017	referred to judiciary

2017-S4302 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Constitution, Concurrent Resolutions to Amend
Laws Affected:: Amd Art 7 §§10, 11 & 13, Constn

2017-S4302 (ACTIVE) - Summary

Relates to the authorization of debt in times of public emergency; limits the total amount of state debt; establishes a debt management board; relates to the refunding of state debts.

2017-S4302 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4302

 TITLE OF BILL :  CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
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

 PURPOSE :

The proposed will improve the transparency, accountability, and
affordability of New York State's borrowing practices.

 SUMMARY OF PROVISIONS :

Section 1 adds a new Article 5-B (Limitations on State Funded Debt")
to the State Finance Law, including four sections:

Section 67-a defines the terms "State debt," "State-backed debt,"
"State-funded debt" and "State-supported debt" to clarify the full
scope of the State's debt obligations'. Section 67-a also defines the
terms "Revenue debt," "Total personal income of the state," "capital
work or purpose," "conduit debt obligation", "cash surplus" and "state
authority."

Section 67-b sets forth the duties with respect to state-funded debt,

which include:

*authorizing the division of the budget to annually determine the debt
limit of the state by calculating the amount equal to five percent of
the defined total personal income of the state;

*beginning SPY 2025-26, authorizing the division of the budget, by
October 31, to determine the total debt limit of the state for the
next fiscal year and report the limit to the legislature and the
comptroller;

*beginning in fiscal year 2016-17, the inclusion of a plan in the
executive budget proposal outlining the methodology for implementing
the debt limit determined by DOB.

Section 67-c continues the current limitations on the issuance of
state-supported debt. This section shall expire and be deemed repealed
on March 31, 2024 when section 67-c is in effect.

Section 67-d sets forth general limitations on State funded debt
including:

*implementation of an overall debt cap, effective on and after April
1, 2022, on all State funded debt to limit debt to no more than 51; of
the total personal income in the State;

*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.


Section 67-e prohibits the issuance of new debt supported by a state
agreement to make payments only if expected debt service sources fall
short.

Section 67-f mandates that at the end of any fiscal year, 75 percent
of any cash surplus shall be deposited to the Rainy Day Fund until the
Fund reaches its maximum balance. The remaining 25 percent, as well as
anything after Rainy Day Fund has reached its limit, shall be
deposited in the Debt Reduction Reserve Fund.

Section 67-g creates the Debt Planning Council with seven members, one
each appointed by the Governor, the Comptroller, the Majority Leader
of the Senate and the Speaker of the Assembly and three public finance
experts drawn from a pool of candidates supplied by the existing four
and chosen by the Governor. Representatives of the Council shall elect
a chair person.

Section 67-h establishes the powers and duties of the Debt Planning
Council including annually establishing the debt affordability of the
State, which cannot be exceeded, annually reporting on all current and
projected State-Funded debt levels and factors that affect the cost of
that debt, creation of a State-Funded debt database and making
recommendations to the Governor and the Legislature on all
State-funded debt and other capital financing matters.

Sections 2 through 13 make conforming changes to statute to the newly
created definition of "state funded debt" set forth in new State
Finance Law Article 5-B, as added by this bill.

Section 14 amends section 50 of the State Finance Law by adding a
voting representative from the Debt Planning Council.

Section 15 expands the jurisdiction of the Public Authorities Control
Board to include financing and construction of projects of all state
authorities and requires that applications include a current listing
of all debt and debt service obligations of the applicant.

Section 16 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 17 provides for an immediate effective date. Provided,
however, that section 67-c of the state finance law shall expire and
be deemed repealed on March 31, 2024 and that subdivisions 3 and 6 of
section 67-d of the state finance law, as added by section one of this
act, shall take effect on the same date as the amendments to article 7
of the state constitution.

 JUSTIFICATION :

Although New York regularly borrows and spends money to finance long
term projects such as roads, bridges, dams, prisons and university
buildings, there is no policy to comprehensively track these capital
assets and there is no long term plan for maintaining, replacing or
adding to them. Without knowing what we have or what we need, it is
difficult to determine if the State's limited resources are being put
to the best use or if the State's infrastructure will be able to
support future citizen needs.

Furthermore, the State relies heavily on borrowing by public
authorities, which does not require the approval of taxpayers
("backdoor borrowing") to pay for a large portion of the State's
Capital Plan.  Less than six percent of the State's current debt
burden has been approved by those who pay for it. Reliance on this
type of borrowing has become commonplace. The enacted Five Year
Capital Plan for SFY 2016-17 through SFY 2020-21 contains no new
borrowing proposals requiring voter approval, but instead relies upon
public authority debt. One reason is the Constitution allows only one
bond act for a single purpose to be put before voters at a time,
significantly limiting the State's flexibility to address all capital
needs in this process.

New York's already high debt burden is projected to significantly
increase over the next five years. The debt reform measures enacted in
2000 did little to slow the growth of the State debt or restrict the
use of debt to capital projects and, as a result, the State is rapidly
approaching the statutory cap on State-supported debt outstanding as
established in the Debt Reform Act of 2000. Although that cap was
placed on the amount of debt outstanding and debt was restricted to
capital purposes only, these provisions did not apply to all types of
State debt and are statutory, not constitutional, and thus easily
by-passed. As a result, these measures have not been effective. For
example, as of March 31, 2012, 13.5 percent of the State's current
debt burden is for debt that was issued for budget relief or deficit
financing, which is much like using a mortgage to pay for groceries.

The Debt Reform Act of 2000 did not adequately restrain harmful
borrowing practices or control growth. The State's borrowing practices
must be made more transparent, accountable and affordable.

Approximately 94 percent of State Funded debt outstanding was issued
without voter approval by myriad public authorities. The Constitution
establishes a procedure for controlling debt outstanding by keeping
voters involved. This bill will not only return voters to that role,
but will also remove public authorities from the process by having the
State Comptroller issue ALL debt for the State.

2017-S4302 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4302
 
                        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 Judiciary
 
             CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
 
 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
 
   Section 1. Resolved (if the Assembly concur), That section 10 of arti-
 cle 7 of the constitution be amended to read as follows:
   § 10. In addition to the above limited power to  contract  debts,  the
 state  may contract debts to repel invasion, suppress insurrection, [or]
 defend the state in war, [or to suppress forest fires] OR TO RESPOND  TO
 ANY  OTHER EMERGENCY STEMMING FROM A DISASTER INCLUDING, BUT NOT LIMITED
 TO, A DISASTER CAUSED BY AN ACT OF TERRORISM; but the money arising from
 the contracting of such debts shall be applied for the purpose for which
 it was raised, or to repay such debts, and to no other purpose whatever.
 NO DEBT SHALL BE CONTRACTED PURSUANT TO THIS SECTION WITHOUT THE CONCUR-
 RENCE OF THE GOVERNOR, THE COMPTROLLER, THE ATTORNEY  GENERAL  AND  TWO-
 THIRDS  OF THE MEMBERS ELECTED TO EACH HOUSE OF THE LEGISLATURE; AND THE
 GOVERNOR SHALL HAVE POWER TO SUMMON THE  COMPTROLLER  AND  THE  ATTORNEY
 GENERAL  AND  CONVENE  THE  LEGISLATURE IN EXTRAORDINARY SESSION FOR THE
 PURPOSE OF CONSIDERING SUCH EMERGENCY DEBT. AT THE TIME, DATE AND  PLACE
 APPOINTED  BY  THE  GOVERNOR, NO OTHER SUBJECT SHALL BE ACTED UPON UNTIL
 EACH, IN THE FOLLOWING ORDER, HAS GIVEN THEIR APPROVAL OR ANY ONE THERE-
 OF HAS GIVEN THEIR DISAPPROVAL OF THE DEBT PROPOSED BY THE  GOVERNOR  TO
 ENABLE  THE  STATE TO RESPOND TO SUCH EMERGENCY: THE GOVERNOR, THE COMP-
 TROLLER, THE ATTORNEY GENERAL, THE SENATE AND THE ASSEMBLY. THE PROPOSAL
 OF SUCH EMERGENCY DEBT SHALL BE IN THE FORM OF A RESOLUTION PREPARED AND
 SUBMITTED BY THE GOVERNOR TO THE COMPTROLLER, THE ATTORNEY GENERAL,  THE
 SENATE AND THE ASSEMBLY, WHO SHALL APPROVE OR DISAPPROVE SUCH RESOLUTION
 WITHOUT  ANY  CHANGES THERETO; AND IF SUCH RESOLUTION IS APPROVED BY THE
 GOVERNOR, THE COMPTROLLER, THE ATTORNEY GENERAL, AND TWO-THIRDS  OF  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD89066-01-7

 S. 4302                             2

 MEMBERS  ELECTED TO EACH HOUSE OF THE LEGISLATURE, THEN SUCH LAW OR LAWS
 SHALL BE ENACTED AS MAY BE NECESSARY  OR  ADVISABLE  TO  IMPLEMENT  SUCH
 APPROVAL.
   §  2.  Resolved (if the Assembly concur), That section 11 of article 7
 of the constitution be amended to read as follows:
   § 11. 1. Except the debts or refunding debts specified in sections  9,
 10  and  13 of this article, no debt shall be hereafter contracted by or
 [in] ON behalf of the state, unless such debt shall be authorized by law
 PURSUANT TO THIS SECTION,  for  some  single  work  or  purpose,  to  be
 distinctly  specified  therein.  DEBT  SUBJECT TO THE PROVISIONS OF THIS
 SECTION SHALL BE ANY DEBT OR OBLIGATION SUPPORTED IN WHOLE OR IN PART BY
 ANY FINANCING ARRANGEMENT WHEREBY THE  STATE  AGREES,  WHETHER  BY  LAW,
 CONTRACT,  OR OTHERWISE, TO MAKE PAYMENTS WHICH ARE TO 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,  INDIVIDUAL,  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 MUNICI-
 PALITY, INDIVIDUAL, 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 SUBJECT  TO
 THE  PROVISIONS  OF THIS SECTION.   THE PROVISIONS OF THIS SECTION SHALL
 APPLY (I) WHETHER OR NOT THE OBLIGATION OF THE STATE TO MAKE PAYMENTS IS
 SUBJECT TO APPROPRIATION OR IS OTHERWISE CONTINGENT, OR (II) 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.
   [No] 2. EXCEPT AS PROVIDED IN SUBDIVISION 5 OF THIS SECTION,  NO  such
 law  shall  take effect until it shall, at a general election, have been
 submitted to the people, and have received a majority of all  the  votes
 cast for and against it at such election nor shall it be submitted to be
 voted on within three months after its passage BY THE LEGISLATURE nor at
 any  general  election  when  any MORE THAN FOUR other [law or any bill]
 PROPOSITIONS shall be submitted to be voted for or against.
   3. DURING THE FISCAL YEAR BEGINNING IN CALENDAR YEAR 2026 AND IN EVERY
 FISCAL YEAR THEREAFTER, NO PROPOSITION CONCERNING SUCH A  LAW  SHALL  BE
 SUBMITTED  TO  THE PEOPLE FOR APPROVAL, AND NO SUCH LAW SHALL BE ENACTED
 PURSUANT TO SUBDIVISION 5 OF THIS SECTION, UNLESS  THE  TOTAL  PRINCIPAL
 AMOUNT  OF  DEBT  TO  BE AUTHORIZED BY SUCH LAW, TOGETHER WITH THE TOTAL
 PRINCIPAL AMOUNT OF DEBT EITHER ALREADY OUTSTANDING, OR AUTHORIZED TO BE
 INCURRED PURSUANT TO THIS SECTION, SHALL BE EQUAL TO OR LESS  THAN  FIVE
 PERCENT  OF THE TOTAL PERSONAL INCOME OF THE STATE. SUCH PERSONAL INCOME
 IS TO BE DETERMINED BY THE DEBT MANAGEMENT BOARD ESTABLISHED PURSUANT TO
 SUBDIVISION 4 OF THIS SECTION IN ACCORDANCE WITH SUCH COMMONLY  ACCEPTED
 METHOD  OR  METHODS  OF  MEASURING THE ECONOMIC ACTIVITY OF THE STATE AS
 SHALL BE PRESCRIBED BY A LAW, WHICH SHALL BE ENACTED NOT LATER THAN JUNE
 30, 2019, AND AS MAY BE AMENDED FROM TIME TO TIME NOT INCONSISTENT  WITH
 THIS  SECTION.  DEBT  SUBJECT TO THE LIMIT IMPOSED BY THIS SECTION SHALL
 INCLUDE ALL DEBT SUPPORTED BY FINANCING ARRANGEMENTS DESCRIBED IN SUBDI-
 VISION 1 OF THIS SECTION BUT SHALL NOT INCLUDE THE  DEBTS  SPECIFIED  IN
 SECTIONS  9,  10 AND 13 OF THIS ARTICLE OR DEBT PREVIOUSLY AUTHORIZED BY
 LAW BUT NOT INCURRED BECAUSE OF THE SUBSEQUENT REPEAL OF  SUCH  AUTHORI-
 ZATION  OR  THE SUBSEQUENT PROHIBITION OF SUCH DEBT PURSUANT TO SUBDIVI-
 SION 10 OF THIS SECTION.

 S. 4302                             3
 
   4. A DEBT MANAGEMENT BOARD, CONSISTING  OF  THE  GOVERNOR,  THE  COMP-
 TROLLER  AND  A  THIRD  PERSON  JOINTLY SELECTED BY THE GOVERNOR AND THE
 COMPTROLLER, SHALL BE ESTABLISHED BY  LAW.  THE  DEBT  MANAGEMENT  BOARD
 SHALL  ANNUALLY  DETERMINE,  WITHIN  THE  LIMITS ESTABLISHED PURSUANT TO
 SUBDIVISION  3  OF  THIS SECTION, A DEBT AFFORDABILITY LEVEL WHICH SHALL
 PRESCRIBE FOR EACH FISCAL YEAR  AND  FORECAST  FOR  THE  TWO  SUCCEEDING
 FISCAL  YEARS  THE  TOTAL AMOUNT OF ADDITIONAL DEBT THAT MAY BE INCURRED
 AND THE TOTAL DEBT SERVICE OBLIGATIONS THAT MAY  BE  UNDERTAKEN  BY  THE
 STATE WITHOUT OVERBURDENING PRESENT OR FUTURE GENERATIONS. THE EXECUTIVE
 BUDGET  SUBMITTED  PURSUANT TO SECTION 2 OF THIS ARTICLE FOR THE ENSUING
 FISCAL YEAR AND THE BUDGET BILLS SUBMITTED PURSUANT TO SECTION 3 OF THIS
 ARTICLE FOR SUCH FISCAL YEAR SHALL NOT PROPOSE ANY  ADDITIONAL  DEBT  OR
 NEW  DEBT  SERVICE  EXPENSE  THAT  WOULD  CAUSE TOTAL DEBT OR TOTAL DEBT
 SERVICE EXPENSES TO EXCEED THE DEBT AFFORDABILITY LEVEL  PRESCRIBED  FOR
 SUCH FISCAL YEAR, AND NEITHER THE GOVERNOR NOR THE LEGISLATURE SHALL, BY
 LAW, CONTRACT, OR OTHERWISE, PROVIDE FOR ANY ADDITIONAL DEBT OR NEW DEBT
 SERVICE  EXPENSE  THAT  WOULD  CAUSE  TOTAL  DEBT  OR TOTAL DEBT SERVICE
 EXPENSES TO EXCEED SUCH LEVEL WITHOUT THE UNANIMOUS APPROVAL OF THE DEBT
 MANAGEMENT BOARD. DURING THE FISCAL YEAR BEGINNING IN 2022 AND IN  EVERY
 FISCAL  YEAR  THEREAFTER,  THE DEBT MANAGEMENT BOARD SHALL NOT ESTABLISH
 ANY DEBT AFFORDABILITY LEVEL WHICH WOULD RESULT  IN  A  TOTAL  PRINCIPAL
 AMOUNT  OF  DEBT IN EXCESS OF THE LIMIT ESTABLISHED PURSUANT TO SUBDIVI-
 SION 3 OF THIS SECTION.
   5. DURING ANY FISCAL YEAR, A LAW  OR  LAWS  AUTHORIZING  DEBT  IN  THE
 COMBINED  AGGREGATE  AMOUNT  OF ONE BILLION DOLLARS, OR THREE PERCENT OF
 THE LIMIT DETERMINED PURSUANT TO SUBDIVISION 3 OF THIS SECTION, WHICHEV-
 ER IS GREATER, MAY BE ENACTED WITHOUT BEING SUBMITTED  FOR  APPROVAL  BY
 THE  PEOPLE.  HOWEVER,  IN  NO EVENT SHALL DEBT INCURRED IN FISCAL YEARS
 BEGINNING IN 2026 AND THEREAFTER PURSUANT TO SUCH LAW OR LAWS RESULT  IN
 A  TOTAL  PRINCIPAL  AMOUNT  OF  DEBT  IN EXCESS OF THE LIMIT DETERMINED
 PURSUANT TO SUBDIVISION 3 OF THIS  SECTION  OR  THE  DEBT  AFFORDABILITY
 LEVEL ESTABLISHED PURSUANT TO SUBDIVISION 4 OF THIS SECTION.
   6.  ALL  DEBT  SUBJECT  TO  THE  PROVISIONS OF THIS SECTION (I) SHALL,
 EXCEPT FOR REFUNDING DEBT,  BE  INCURRED  ONLY  FOR  A  CAPITAL  PURPOSE
 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  THIS  SUBDIVISION, BE IN THE FORM OF OBLIGATIONS ISSUED BY THE
 COMPTROLLER.
   7. NOTHING CONTAINED IN THIS SECTION SHALL INVALIDATE DEBT OBLIGATIONS
 OUTSTANDING ON THE EFFECTIVE DATE OF  THIS  SUBDIVISION  THAT  WOULD  BE
 SUBJECT  TO  THE PROVISIONS OF THIS SECTION IF INCURRED AFTER THE EFFEC-
 TIVE DATE OF THIS SUBDIVISION, AND THE STATE MAY CONTINUE TO PROVIDE FOR
 PAYMENTS RELATED TO SUCH DEBT ON THE SAME TERMS UNDER  WHICH  SUCH  DEBT
 WAS  INCURRED;  PROVIDED,  HOWEVER,  THAT NO SUCH DEBT SHALL BE REFUNDED
 UNLESS (I) SUCH REFUNDING COMPLIES IN ALL RESPECTS WITH THE REQUIREMENTS
 OF SECTION 13 OF THIS ARTICLE, AND (II) ANY REFUNDING OBLIGATIONS ISSUED
 ON OR AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR  BEGINNING  AT  LEAST
 ONE  YEAR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION 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 LIMIT IMPOSED BY SUBDIVISION  3  OF
 THIS  SECTION AND THE DEBT AFFORDABILITY LEVEL REQUIRED BY SUBDIVISION 4
 OF THIS SECTION. THE PROVISIONS OF SECTION 16 OF THIS ARTICLE SHALL  NOT
 APPLY TO STATE PAYMENTS WITH RESPECT TO ANY SUCH OBLIGATIONS UNLESS SUCH
 PROVISIONS WOULD HAVE APPLIED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDI-
 VISION.

 S. 4302                             4
 
   8.  DEBT  OBLIGATIONS ISSUED TO REFUND OUTSTANDING STATE DEBT, REGARD-
 LESS OF WHETHER SUCH OUTSTANDING DEBT WAS INCURRED PRIOR TO  THE  EFFEC-
 TIVE  DATE OF THIS SUBDIVISION, SHALL NOT BE COUNTED FOR THE PURPOSES OF
 THE LIMIT IMPOSED BY SUBDIVISION 3 OF THIS SECTION AND THE DEBT AFFORDA-
 BILITY LEVEL REQUIRED BY SUBDIVISION 4 OF THIS SECTION IF SUCH REFUNDING
 COMPLIES  IN  ALL RESPECTS WITH SECTION 13 OF THIS ARTICLE. DEBT SERVICE
 EXPENSES ON DEBT THAT HAS BEEN REFUNDED IN ACCORDANCE WITH SECTION 13 OF
 THIS ARTICLE SHALL BE EXCLUDED FROM 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 PURPOSES OF THIS SUBDIVISION  AND  SUBDIVISIONS  7  AND  9  OF  THIS
 SECTION,  ANY REFUNDING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL MATU-
 RITY OF THE DEBT BEING REFUNDED SHALL  BE  DEEMED  TO  COMPLY  WITH  THE
 PROVISIONS OF SUBDIVISION 6 OF SECTION 13 OF THIS ARTICLE, PROVIDED THAT
 THERE  IS  AN ACTUAL DEBT SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A
 RESULT OF THE ISSUANCE OF THE REFUNDING DEBT.
   9. AFTER THE EFFECTIVE DATE OF  THIS  SECTION  THE  STATE  SHALL  NOT,
 EXCEPT  AS SPECIFICALLY AUTHORIZED IN SOME OTHER SECTION OF THIS CONSTI-
 TUTION, AGREE TO MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETHER  OR  NOT
 SUBJECT  TO  APPROPRIATION, 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  SUBDIVI-
 SION  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  7 AND 8 OF THIS
 SECTION ARE COMPLIED WITH EXCEPT THE  REQUIREMENT  THAT  SUCH  REFUNDING
 DEBT  OBLIGATIONS  BE  ISSUED  BY  THE  COMPTROLLER,  AND REFUNDING DEBT
 SERVICE EXPENSES SHALL ONLY BE INCLUDED IN THE DEBT AFFORDABILITY  LEVEL
 IF  THE DEBT SERVICE EXPENSES ON THE DEBT BEING REFUNDED WOULD HAVE BEEN
 INCLUDED.
   10. The legislature may, at any time after the ENACTMENT  OR  approval
 of  such  law  [by the people], if no debt shall have been contracted in
 pursuance thereof, repeal the same; and may at any time, by law,  forbid
 the contracting of any further debt or liability under such law.
   §  3.  Resolved (if the Assembly concur), That subdivisions 6 and 7 of
 section 13 of article 7 of  the  constitution  be  amended  to  read  as
 follows:
   6.  In  no  event shall the last annual installment or contribution on
 any portion of refunding debt, including refunding obligations issued to
 refund other refunding obligations, be made after THE  LAST  INSTALLMENT
 ON  THE  RELEVANT PORTION OF THE DEBT TO BE REFUNDED OR AFTER the termi-
 nation of the period of probable life of the projects financed with  the
 proceeds of the relevant portion of the debt to be refunded, or any debt
 previously  refunded  with  the  refunding  obligations  to be refunded,
 determined as of the date of issuance of the original obligations pursu-
 ant to section 12 of this article to finance  such  projects,  or  forty
 years from such date, if earlier; provided, however, that in lieu of the
 foregoing,  an  entire  refunding issue or portion thereof may be struc-
 tured to mature over the remaining weighted average useful life  of  all
 projects financed with the obligations being refunded.

 S. 4302                             5
 
   7.  [Subject  to the provisions of subdivision 5 of this section, each
 annual installment or contribution of principal of refunding obligations
 shall be equal to the amount that would be required by subdivision 1  of
 section  12  of  this article if such installments or contributions were
 required  to be made from the year that the next installment or contrib-
 ution would have been due on the obligations to be refunded, if they had
 not been refunded, until the final maturity of the refunding obligations
 but excluding any year in which no  installment  or  contribution  would
 have  been due on the obligations to be refunded or, in the alternative,
 the] THE total payments of principal and interest on the refunding bonds
 shall be less in each year  to  their  final  maturity  than  the  total
 payments  of  principal and interest on the bonds to be refunded in each
 such year.
   § 4. Resolved (if the Assembly concur), That the foregoing  amendments
 be referred to the first regular legislative session convening after the
 next  succeeding  general  election  of members of the assembly, and, in
 conformity with  section  1  of  article  19  of  the  constitution,  be
 published for 3 months previous to the time of such election.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S4302

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2017-S4302 (ACTIVE) - Details

2017-S4302 (ACTIVE) - Summary

2017-S4302 (ACTIVE) - Sponsor Memo

2017-S4302 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4302

Share this bill

Sponsored By

Fred Akshar

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2017-S4302 (ACTIVE) - Details

2017-S4302 (ACTIVE) - Summary

2017-S4302 (ACTIVE) - Sponsor Memo

2017-S4302 (ACTIVE) - Bill Text download pdf

Comments