NY State Senate Bill S8648

Archive: Last Bill Status - Signed by Governor

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

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Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 31, 2018	signed chap.183
Jul 19, 2018	delivered to governor
Jun 19, 2018	returned to senate passed assembly ordered to third reading cal.969 substituted for a10673
Jun 12, 2018	referred to ways and means delivered to assembly passed senate
Jun 05, 2018	advanced to third reading
Jun 04, 2018	2nd report cal.
May 31, 2018	1st report cal.1507
May 10, 2018	referred to health

Votes

S8648 (ACTIVE) - Details

See Assembly Version of this Bill:: A10673
Law Section:: New York State Medical Care Facilities Finance Agency Act
Laws Affected:: Amd §7, Chap 392 of 1973

S8648 (ACTIVE) - Summary

Relates to the ability of the New York state medical care facilities finance agency to issue certain bonds and notes.

S8648 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8648

SPONSOR: HANNON
 
TITLE OF BILL:

An act to amend the New York state medical care facilities finance agen-
cy act, in relation to the ability to issue certain bonds and notes

1.  
PURPOSE OF THE BILL:

This bill would increase the authorization of the Dormitory Authority of
the State of New York ("DASNY"), as successor to the New York State
Medical Care Facilities Finance Agency ("MCFFA") pursuant to the Health
Care Financing Consolidation Act of 1995, to issue hospital and nursing
home project bonds and notes from $15.8 billion to $16.6 billion.

2.  
SUMMARY OF PROVISIONS:

Section one of this bill would amend the MCFFA Act to increase DASNY's
authorization to issue hospital and nursing home project bonds and notes
from $15.8 billion to $16.6 billion.

Section two of the bill would make it effective immediately.

3.  
JUSTIFICATION:

DASNY issues bonds for purposes including funding mortgage leans or
project loans to not-for-profit hospital and nursing home corporations.
Some of the bonds issued for DASNY's hospital and nursing home clients
are issued under the MCFFA Act. Bonds issued pursuant to the MCFFA Act
are subject to the current hospital and aiming home project bond author-
ization cap in the MCFFA Act of $15.8 billion. This authorization was
most recently increased by $800,000,000 in 2011. It was also increased
by $800,000,000 in 2009.

As of December 21, 2017, DASNY has sold and closed bond transactions
pursuant to this authorization in the amount of $14,833,767,602.  Thus,
$966,232,398 of capacity under the existing statutory limitation is
available for other transactions. The federal tax reform legislature
caused increased activity in the bond market and as a result there are
currently several hospital financings in DASNY's "pipeline" totaling
approximately $840 million. This bill is necessary to ensure that DASNY
has sufficient capacity to support additional healthcare projects as
they seek financing.

Although DASNY cannot predict the timing of the proposed financings,
DASNY is seeking additional bond authorization at this time to ensure
that it will be able to meet the needs of additional private not-for-
profit health-care clients on a timely basis.

4.  
PRIOR LEGISLATIVE HISTORY:

The MCFFA bond cap was increased from $15 billion to $15.8 billion in
2011 (Chapter 516 of the laws of 2011). In 2009, the MCFFA bond cap was
increased from $14.2 billion to $15 billion (Chapter 238 of the laws of
2009).

5.  
FISCAL IMPLICATIONS:

The bill has no implications for the state budget.

6.  
EFFECTIVE DATE:
The bill shall take effect immediately.

S8648 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8648

                            I N  S E N A T E

                              May 10, 2018
                               ___________

Introduced  by Sen. HANNON -- (at request of the Dormitory Authority) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Health

AN ACT to amend the New York state medical care facilities finance agen-
  cy act, in relation to the ability to issue certain bonds and notes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of
chapter 392 of the laws of 1973, constituting the New York state medical
facilities finance agency act, as amended by chapter 516 of the laws  of
2011, is amended to read as follows:
  (b) The agency shall not issue hospital and nursing home project bonds
and  hospital  and  nursing home project notes in an aggregate principal
amount exceeding [fifteen] SIXTEEN billion [eight] SIX  hundred  million
dollars,  excluding hospital and nursing home project bonds and hospital
and nursing home project notes issued to refund outstanding hospital and
nursing home projects bonds and hospital and nursing home project notes;
provided, however, that upon any such refunding or repayment  the  total
aggregate  principal  amount  of outstanding bonds, notes or other obli-
gations may be  greater  than  [fifteen]  SIXTEEN  billion  [eight]  SIX
hundred  million dollars only if the present value of the aggregate debt
service of the refunding or repayment bonds, notes or other  obligations
to  be  issued  shall not exceed the present value of the aggregate debt
service of the bonds, notes or other obligations so to  be  refunded  or
repaid.  For  purposes  hereof, the present values of the aggregate debt
service of the refunding or repayment bonds, notes or other  obligations
and  of  the  aggregate  debt service of the bonds, notes or other obli-
gations so refunded or repaid, shall  be  calculated  by  utilizing  the
effective  interest  rate  of the refunding or repayment bonds, notes or
other obligations, which shall be that rate arrived at by  doubling  the
semi-annual   interest  rate  (compounded  semi-annually)  necessary  to
discount the debt service payments on the refunding or repayment  bonds,
notes or other obligations from the payment dates thereof to the date of
issue  of  the  refunding or repayment bonds, notes or other obligations

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD14331-01-8

S. 8648                             2

and to the price bid including estimated accrued  interest  or  proceeds
received  by  the  agency  including estimated accrued interest from the
sale thereof. The agency shall  not  issue  hospital  and  nursing  home
project bonds at any time secured by the hospital and nursing home capi-
tal  reserve fund if upon issuance, the amount in the hospital and nurs-
ing home capital reserve fund will be less than the hospital and nursing
home capital reserve fund requirement, unless the agency, at the time of
issuance of such bonds, shall deposit in  such  reserve  fund  from  the
proceeds  of  the  bonds  so to be issued, or otherwise, an amount which
together with the amount then in such reserve fund,  will  be  not  less
than the hospital and nursing home capital reserve fund requirement.
  § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S8648

Sponsored By

Archive: Last Bill Status - Signed by Governor

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Votes

Jun 12, 2018 - floor Vote

Floor Vote: Jun 12, 2018

May 31, 2018 - Health committee Vote

Health Committee Vote: May 31, 2018

S8648 (ACTIVE) - Details

S8648 (ACTIVE) - Summary

S8648 (ACTIVE) - Sponsor Memo

S8648 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S8648

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Sponsored By

Kemp Hannon

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Jun 12, 2018 - floor Vote

Floor Vote: Jun 12, 2018

May 31, 2018 - Health committee Vote

Health Committee Vote: May 31, 2018

S8648 (ACTIVE) - Details

S8648 (ACTIVE) - Summary

S8648 (ACTIVE) - Sponsor Memo

S8648 (ACTIVE) - Bill Text download pdf

Comments