Bill Text: NY A05413 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the public authorities law, in relation to the creation of the downstate New York power authority
Spectrum: Partisan Bill (Democrat 14-0)
Status: (Introduced - Dead) 2010-01-06 - referred to corporations, authorities and commissions [A05413 Detail]
Download: New_York-2009-A05413-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5413 2009-2010 Regular Sessions I N A S S E M B L Y February 13, 2009 ___________ Introduced by M. of A. BRENNAN, ORTIZ, CLARK, GREENE, CASTRO -- Multi- Sponsored by -- M. of A. AUBRY, BRADLEY, COLTON, COOK, DINOWITZ, GOTT- FRIED, HEASTIE, JACOBS, MARKEY, NOLAN, PHEFFER -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to the creation of the downstate New York power authority THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Article 5 of the public authorities law is amended by 2 adding a new title 6-E to read as follows: 3 TITLE 6-E 4 DOWNSTATE NEW YORK POWER AUTHORITY 5 SECTION 1148. SHORT TITLE. 6 1148-A. ESTABLISHMENT OF AUTHORITY. 7 1148-B. ESTABLISHMENT OF DOWNSTATE NEW YORK POWER 8 AUTHORITY. 9 1148-C. MEMBERS OF THE AUTHORITY. 10 1148-D. POWERS AND DUTIES OF THE AUTHORITY. 11 1148-E. DEPOSIT FOR TEMPORARY POSSESSION OF PROPERTY. 12 1148-F. APPLICATION OF PUBLIC SERVICE LAW. 13 1148-G. FURNISHING SERVICE WITHIN THE AUTHORITY. 14 1148-H. LIABILITIES FOR BONDS. 15 1148-I. BONDS AND NOTES OF THE AUTHORITY. 16 1148-J. RIGHTS OF REDEMPTION. 17 1148-K. BONDS AND OBLIGATIONS LEGAL INVESTMENTS OF FIDUCIARIES. 18 1148-L. EXEMPTION FROM TAXATION; PAYMENTS IN LIEU OF TAXES. 19 1148-M. THE CITY OF NEW YORK AND COUNTIES OF WESTCHESTER, 20 ROCKLAND AND ORANGE MAY LEVY TAXES WITHIN THE AUTHORITY 21 1148-N. EXAMINATION BY COMPTROLLER. 22 1148-O. REPORTS OF THE AUTHORITY. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07136-01-9 A. 5413 2 1 S 1148. SHORT TITLE. THIS TITLE MAY BE CITED AS THE "DOWNSTATE NEW 2 YORK POWER AUTHORITY ACT". 3 S 1148-A. ESTABLISHMENT OF AUTHORITY. THERE IS HEREBY ESTABLISHED AND 4 DEFINED A PUBLIC AUTHORITY TO BE KNOWN AS THE "DOWNSTATE NEW YORK POWER 5 AUTHORITY", WHICH SHALL EMBRACE THE SERVICE TERRITORY OF THE CONSOL- 6 IDATED EDISON COMPANY, INCLUDING THAT PORTION OF WESTCHESTER, ROCKLAND 7 AND ORANGE COUNTIES SERVED BY THE AFORESAID COMPANY. 8 S 1148-B. ESTABLISHMENT OF DOWNSTATE NEW YORK POWER AUTHORITY. THERE 9 IS HEREBY CREATED A PUBLIC UTILITY DISTRICT CORPORATION, TO BE KNOWN AS 10 THE "DOWNSTATE NEW YORK POWER AUTHORITY", HEREINAFTER REFERRED TO AS THE 11 AUTHORITY. THE AUTHORITY SHALL BE A BODY CORPORATE AND POLITIC CONSTI- 12 TUTING A PUBLIC BENEFIT CORPORATION, THE OBJECTS OF WHICH, IN THE JUDG- 13 MENT OF THE LEGISLATURE, CANNOT BE OBTAINED UNDER GENERAL LAWS. THE 14 CORPORATION SHALL HAVE THE POWER TO SUE AND BE SUED, AND TO ADOPT A 15 SEAL. IT SHALL HAVE THE POWER TO ACQUIRE REAL AND OTHER FORMS OF PROPER- 16 TY BY PURCHASE, EMINENT DOMAIN OR OTHERWISE, TO INCUR DEBTS, LIABILITIES 17 AND OBLIGATIONS, TO ISSUE BONDS AND NOTES AND TO EXERCISE ALL POWERS 18 AUTHORIZED BY THIS TITLE AND REASONABLY NECESSARY FOR ACCOMPLISHING ITS 19 PURPOSES, OR PROPERLY INCIDENTAL THERETO, SUBJECT TO THE CONSTITUTION 20 AND LAWS OF THE UNITED STATES AND THE STATE OF NEW YORK. SUCH POWERS 21 SHALL BE EXERCISED IN THE NAME OF THE AUTHORITY. 22 S 1148-C. MEMBERS OF THE AUTHORITY. THE MEMBERS, CONSTITUTING THE 23 BOARD OF DIRECTORS OF THE AUTHORITY, SHALL CONSIST OF ELEVEN PERSONS, 24 SEVEN OF WHOM SHALL RESIDE WITHIN THE CITY OF NEW YORK AND SHALL BE 25 APPOINTED BY THE MAYOR OF THE CITY OF NEW YORK AND CONFIRMED BY THE CITY 26 COUNCIL. TWO PERSONS SHALL RESIDE IN WESTCHESTER COUNTY AND SHALL BE 27 APPOINTED BY THE COUNTY EXECUTIVE OF WESTCHESTER COUNTY AND CONFIRMED BY 28 THE COUNTY LEGISLATURE. ONE PERSON SHALL RESIDE IN ROCKLAND COUNTY AND 29 SHALL BE APPOINTED BY THE COUNTY EXECUTIVE OF ROCKLAND COUNTY AND 30 CONFIRMED BY THE COUNTY LEGISLATURE. ONE PERSON SHALL RESIDE IN ORANGE 31 COUNTY AND SHALL BE APPOINTED BY THE COUNTY EXECUTIVE OF ORANGE COUNTY 32 AND CONFIRMED BY THE COUNTY LEGISLATURE. 33 THE TERM OF OFFICE OF EACH MEMBER SHALL BE FOUR YEARS, BUT IN THE 34 FIRST INSTANCE THE MAYOR SHALL APPOINT TWO MEMBERS EACH FOR TERMS OF 35 ONE, TWO AND THREE YEARS, RESPECTIVELY, AND ONE MEMBER FOR A FOUR-YEAR 36 TERM. THE WESTCHESTER COUNTY EXECUTIVE SHALL, IN THE FIRST INSTANCE, 37 APPOINT MEMBERS FOR ONE AND TWO YEARS, RESPECTIVELY. 38 UPON RESIGNATION OF A MEMBER, OR A VACANCY OCCURRING IN ANY OTHER 39 MANNER, IT SHALL BE FILLED BY THE OFFICER PREVIOUSLY APPOINTING THE 40 MEMBER TO THAT OFFICE TO FILL THE REMAINDER OF THE TERM. EACH MEMBER 41 BEFORE ENTERING UPON THE DUTIES OF HIS OFFICE SHALL TAKE THE CONSTITU- 42 TIONAL OATH OF OFFICE, WHICH SHALL BE FILED IN THE OFFICE OF THE SECRE- 43 TARY OF STATE. SEVEN DIRECTORS SHALL CONSTITUTE A QUORUM FOR THE TRANS- 44 ACTION OF BUSINESS, PROVIDED, HOWEVER, THAT AT LEAST ONE MEMBER SHALL BE 45 FROM WESTCHESTER, AND, NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE 46 CONCURRENCE OF A MAJORITY OF THOSE PRESENT AT A MEETING SHALL BE NECES- 47 SARY FOR THE PASSAGE OF ANY RESOLUTION, ORDER OR DETERMINATION. ANY 48 MEMBER MAY BE REMOVED BY THE ATTORNEY GENERAL FOR INEFFICIENCY, NEGLECT 49 OF DUTY OR MISCONDUCT IN OFFICE AFTER A HEARING UPON CHARGES AND AN 50 OPPORTUNITY TO BE HEARD IN PERSON OR BY COUNSEL UPON NOT LESS THAN TEN 51 DAYS NOTICE. NO DIRECTOR SHALL RECEIVE A SALARY, BUT EACH SHALL BE ENTI- 52 TLED TO REIMBURSEMENT FOR ANY ORDINARY AND NECESSARY ACTUAL EXPENSES 53 RELATED DIRECTLY TO THE BUSINESS OF THE AUTHORITY. THEY MAY ELECT ONE 54 OF THE MEMBERS AS PRESIDENT AND MAY ELECT OR APPOINT OTHER OFFICERS AND 55 DETERMINE THEIR POWERS. A. 5413 3 1 S 1148-D. POWERS AND DUTIES OF THE AUTHORITY. THE POWERS AND DUTIES 2 CONFERRED BY THIS TITLE SHALL BE EXERCISED BY THE BOARD OF DIRECTORS OF 3 THE AUTHORITY, SUBJECT TO THE TERMS OF THIS TITLE. IN THE EXERCISE OF 4 SUCH POWERS AND DUTIES THE BOARD SHALL HAVE THE FOLLOWING POWERS, 5 TOGETHER WITH SUCH OTHER POWERS AS MAY BE REASONABLY NECESSARY FOR 6 ACCOMPLISHING THE PURPOSES AND DUTIES DECLARED AND SET FORTH IN THIS 7 TITLE: 8 1. TO OWN AND OPERATE ELECTRIC GENERATING FACILITIES IN THE NEW YORK 9 CITY AND WESTCHESTER, ROCKLAND AND ORANGE COUNTY AREAS FOR THE BENEFIT 10 OF THE PEOPLE AND BUSINESSES OF THE CITY OF NEW YORK AND THE COUNTIES OF 11 WESTCHESTER, ROCKLAND AND ORANGE; 12 2. TO ACQUIRE, BY PURCHASE, CONDEMNATION OR OTHERWISE, THE FACILITIES 13 FORMERLY OWNED BY THE CONSOLIDATED EDISON COMPANY FOR THE PRODUCTION OF 14 ELECTRICITY; 15 3. TO DETERMINE UPON THE LOCATION, TYPE, SIZE, CONSTRUCTION, LEASE, 16 PURCHASE, OWNERSHIP, ACQUISITION, USE AND OPERATION OF ANY PLANT OR 17 PLANTS OR OTHER STRUCTURE OR PROPERTY, WITHIN OR WITHOUT THE TERRITORIAL 18 LIMITS OF THE AUTHORITY; 19 4. TO APPOINT AND AT PLEASURE DISCHARGE A SECRETARY OR TREASURER AND 20 SUCH CLERICAL, ENGINEERING, LEGAL AND OTHER PROFESSIONAL ASSISTANCE AS 21 IT MAY DEEM NECESSARY FOR THE PURPOSES OF THIS TITLE AND FIX THEIR 22 COMPENSATION; 23 5. TO APPOINT AND AT PLEASURE REMOVE ALL EMPLOYEES, TO TRANSFER 24 EMPLOYEES FROM THEIR POSITIONS TO OTHER POSITIONS AND TO CONSOLIDATE OR 25 ABOLISH SUCH POSITIONS, EXCEPT THAT ANY COLLECTIVE BARGAINING AGREEMENTS 26 IN FORCE BETWEEN THE CONSOLIDATED EDISON COMPANY OR ANY OTHER COMPANY 27 AND ANY CERTIFIED COLLECTIVE BARGAINING REPRESENTATIVE FOR ANY EMPLOYEES 28 SHALL REMAIN IN FULL FORCE AND EFFECT, AND SUCH EMPLOYEES SHALL BE 29 EXEMPT FROM THE PROVISIONS OF THE PUBLIC EMPLOYEES FAIR EMPLOYMENT ACT 30 AS SET FORTH IN ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW; 31 6. TO ENTER UPON ANY LANDS AND WITHIN ANY BUILDING WHENEVER IN ITS 32 JUDGMENT IT MAY BE NECESSARY FOR THE PURPOSE OF MAKING SURVEYS AND EXAM- 33 INATIONS TO ACCOMPLISH ANY PURPOSES SET FORTH IN THIS TITLE; 34 7. BY THE WHOLE, OR BY ANY THREE OR MORE, OF THE MEMBERS OF THE 35 AUTHORITY, TO MAKE ANY INVESTIGATION WHICH IT MAY DEEM NECESSARY TO 36 ENABLE IT EFFECTIVELY TO CARRY OUT THE PROVISIONS OF THIS TITLE AND, FOR 37 THAT PURPOSE, TO TAKE AND HEAR PROOFS AND TESTIMONY AND TO COMPEL BY 38 SUBPOENA THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF RECORDS, 39 BOOKS, PAPERS, ACCOUNTS AND OTHER DOCUMENTS INCLUDING PUBLIC RECORDS; 40 8. TO EXECUTE CONTRACTS, BORROW MONEY, ISSUE BONDS AND OTHER CERTIF- 41 ICATES OF INDEBTEDNESS AND SELL OR DISPOSE OF SAME IN SUCH AMOUNTS AND 42 AT SUCH RATES OF INTEREST AS MAY BE ADVISABLE. THIS SHALL INCLUDE THE 43 POWER TO BORROW MONEY FROM ANY STATE OR FEDERAL AGENCY, INCLUDING THE 44 POWER AUTHORITY OF THE STATE OF NEW YORK, AND TO CONTRACT WITH THE POWER 45 AUTHORITY OF THE STATE OF NEW YORK FOR ANY ADMINISTRATIVE, LEGAL, ENGI- 46 NEERING OR OTHER SERVICES AS MAY BE NECESSARY TO EFFECTUATE THE ORDERLY 47 TRANSITION OF OPERATIONS FROM THE PREVIOUS OWNERS TO THE AUTHORITY; 48 9. (A) TO HOLD PUBLIC HEARINGS, ON THE INITIATIVE OF ANY THREE MEMBERS 49 OF THE BOARD OR ON THE REQUEST OF ANY PERSON OR PERSONS, UPON ANY MATTER 50 THE BOARD DEEMS IN THE PUBLIC INTEREST; 51 (B) FURTHER, TO DEVELOP AND ADOPT BY OCTOBER THIRTIETH OF EACH CALEN- 52 DAR YEAR A CAPITAL BUDGET PLAN FOR THE FOLLOWING CALENDAR YEAR AND TO 53 HOLD AT LEAST TWO PUBLIC HEARINGS ON SAID BUDGET IN EACH COUNTY IN THE 54 CITY OF NEW YORK AND IN THE COUNTIES OF WESTCHESTER, ROCKLAND AND ORANGE 55 WITH BOTH A DAY AND AN EVENING SESSION, BEGINNING AT LEAST FORTY-FIVE 56 DAYS PRIOR TO THE ADOPTION OF SAID CAPITAL BUDGET; A. 5413 4 1 (C) TO MAKE SUCH PROPOSED CAPITAL BUDGET AVAILABLE FOR PUBLIC 2 INSPECTION AT ALL OFFICES OF THE AUTHORITY, IN THE MAIN LIBRARIES OF 3 BOTH SAID COUNTIES AND IN SUCH OTHER PLACES AS THE PUBLIC SERVICE 4 COMMISSION MAY REQUIRE SO THAT THE SAME MAY BE AVAILABLE FOR PUBLIC 5 INSPECTION; THE PUBLIC SHALL BE NOTIFIED OF SAID HEARINGS IN BILLS 6 RENDERED FOR SERVICE AT LEAST THIRTY DAYS PRIOR TO THE FIRST SUCH HEAR- 7 ING; 8 S 1148-E. DEPOSIT FOR TEMPORARY POSSESSION OF PROPERTY. WHENEVER THE 9 AUTHORITY, IN ANY PROCEEDINGS INSTIGATED BY IT FOR THE ACQUISITION OF 10 ANY EXISTING PLANT OR PLANTS BY CONDEMNATION, SHALL MAKE APPLICATION FOR 11 TEMPORARY POSSESSION PURSUANT TO THE PROVISIONS OF THE EMINENT DOMAIN 12 PROCEDURE LAW, THE SUM TO BE FIXED BY THE COURT FOR DEPOSIT AS A CONDI- 13 TION FOR GRANTING SUCH APPLICATION NEED NOT EXCEED TWENTY PER CENTUM OF 14 THE ASSESSED VALUATION OF THE REAL PROPERTY SOUGHT TO BE ACQUIRED IN 15 SUCH PROCEEDING AS SUCH ASSESSED VALUATION APPEARED UPON THE LAST 16 ASSESSMENT ROLLS FOR STATE AND CITY TAXES PRIOR TO THE COMMENCEMENT OF 17 SUCH PROCEEDING. 18 S 1148-F. APPLICATION OF PUBLIC SERVICE LAW. THE RATES, CHARGES, 19 SERVICES, PRACTICES AND FINANCES OF THE AUTHORITY SHALL REMAIN SUBJECT 20 TO THE JURISDICTION OF THE PUBLIC SERVICE COMMISSION AND THE PROVISIONS 21 OF THE PUBLIC SERVICE LAW, INCLUDING THE PROVISIONS OF THE HOME ENERGY 22 FAIR PRACTICES ACT, THE HOME INSULATION AND ENERGY CONSERVATION ACT AND 23 THE PROVISIONS RELATED TO THE SITING AND CERTIFICATION OF MAJOR GENERAT- 24 ING PLANTS AND TRANSMISSION LINES. NOTWITHSTANDING THE AFORESAID APPLI- 25 CATION OF THE PROVISIONS OF THE PUBLIC SERVICE LAW, THE FOLLOWING 26 PROVISIONS SHALL GOVERN WITH RESPECT TO THE RATES, CHARGES, SERVICES, 27 PRACTICES AND FINANCES OF THE AUTHORITY AND, WHERE SUCH PROVISIONS ARE 28 INCONSISTENT WITH THE PUBLIC SERVICE LAW, SHALL BE DEEMED TO SUPERSEDE 29 IT: 30 1. THE AMOUNT OF CONSIDERATION PAID AND THE ISSUANCE OF SECURITIES BY 31 THE AUTHORITY FOR THE ACQUISITION OF THE AFORESAID FACILITIES SHALL NOT 32 REQUIRE THE APPROVAL OF THE PUBLIC SERVICE COMMISSION. 33 2. THE COST OF ACQUISITION OF SAID FACILITIES, INCLUDING THE COSTS OF 34 THE ISSUANCE OF BONDS AND NOTES RELATED TO SUCH ACQUISITION SUCH AS 35 LEGAL AND ENGINEERING FEES, UNDERWRITERS' DISCOUNT AND OTHER REASONABLE 36 AND NECESSARY FEES RELATED TO SUCH ISSUANCE, SHALL BE DEEMED BY THE 37 PUBLIC SERVICE COMMISSION TO BE THE ORIGINAL COST OF SAID FACILITIES 38 UPON WHICH THE RATE BASE SHALL BE DETERMINED. ANY CONTINGENCY FUNDS AND 39 ANY DEBT SERVICE RESERVE FUNDS RAISED AS A RESULT OF THE ISSUANCE OF 40 BONDS AND NOTES SHALL BE DEEMED CASH ASSETS AND CAPITAL SURPLUS LIABIL- 41 ITIES, RESPECTIVELY, AND ANY INCOME FROM SUCH CASH ASSETS SHALL BE 42 DETERMINED TO BE OTHER THAN OPERATING INCOME FOR THE AUTHORITY. 43 3. ANY RATE INCREASES OR DECREASES RESULTING FROM THE CREATION OF THE 44 AUTHORITY SHALL BE UNIFORM AMONG ALL CLASSES OF CUSTOMERS. IN ADDITION, 45 THE AUTHORITY SHALL NOT SEEK ANY CHANGES, OTHER THAN THE UNIFORM CHANGES 46 FOR ALL CLASSES OF CUSTOMERS, IN ANY TARIFF, RATE OR SCHEDULE FOR AT 47 LEAST TWO YEARS AFTER THE ACQUISITION OF THE AFOREMENTIONED GENERATING 48 FACILITIES. AFTER SUCH PERIOD, ALL CHANGES AMONG RATES, TARIFFS AND 49 SCHEDULES AMONG CLASSES OF CUSTOMERS SHALL BE SUBJECT TO THE APPROVAL OF 50 THE PUBLIC SERVICE COMMISSION. 51 4. THE BOARD OF DIRECTORS SHALL ANNUALLY MAKE THE REPORT REQUIRED BY 52 SUBDIVISION SEVEN OF SECTION SIXTY-SIX OF THE PUBLIC SERVICE LAW TO THE 53 PUBLIC SERVICE COMMISSION, WHICH REPORT SHALL BE VERIFIED BY THE OATH OF 54 THE PRESIDENT OF THE AUTHORITY. 55 S 1148-G. FURNISHING SERVICE WITHIN THE AUTHORITY. IT SHALL BE THE 56 OBLIGATION OF THE AUTHORITY TO FURNISH SAFE AND RELIABLE ELECTRIC GENER- A. 5413 5 1 ATION SERVICE TO THE PERSONS AND BUSINESSES IN THE AUTHORITY AT JUST AND 2 REASONABLE RATES. THE AUTHORITY SHALL HAVE THE POWER TO CONSTRUCT OR 3 ACQUIRE, WITHIN OR WITHOUT THE TERRITORIAL LIMITS OF THE AUTHORITY, SUCH 4 ADDITIONAL FACILITIES BEYOND THE FORMER FACILITIES OF THE CONSOLIDATED 5 EDISON COMPANY AS SHALL REASONABLY BE NECESSARY TO MEET SUCH OBLI- 6 GATIONS. THE AUTHORITY MAY PURCHASE POWER AND ENERGY FROM ANY PERSONS, 7 AND SELL POWER AND ENERGY TO ANY PERSON, WITHIN OR WITHOUT THE TERRITO- 8 RIAL LIMITS OF THE AUTHORITY, WHERE THE BOARD OF DIRECTORS DEEMS SUCH 9 SALES OR PURCHASES TO BE IN THE BEST INTEREST OF THE PEOPLE AND BUSI- 10 NESSES OF THE AUTHORITY. 11 S 1148-H. LIABILITIES FOR BONDS. THE BONDS OR OTHER OBLIGATIONS OF THE 12 AUTHORITY SHALL NOT BE DEBTS OF THE STATE OF NEW YORK, THE CITY OF NEW 13 YORK OR THE COUNTY OF WESTCHESTER, AND THE BOARD OF DIRECTORS SHALL HAVE 14 NO POWER TO MAKE THEM PAYABLE EXCEPT OUT OF REVENUES OF THE AUTHORITY. 15 S 1148-I. BONDS AND NOTES OF THE AUTHORITY. 1. THE AUTHORITY SHALL 16 HAVE THE POWER, AND IS HEREBY AUTHORIZED, FROM TIME TO TIME TO ISSUE ITS 17 NEGOTIABLE BONDS OR NOTES, IN CONFORMITY WITH THE APPLICABLE PROVISIONS 18 OF THE LOCAL FINANCE LAW, FOR THE PURPOSE OF FINANCING THE ACQUISITION 19 OF THE FORMER ELECTRIC GENERATING FACILITIES OF THE CONSOLIDATED EDISON 20 COMPANY AND FOR THE FINANCING OF ANY FURTHER PROJECTS AUTHORIZED BY THIS 21 TITLE, INCLUDING THE ACQUISITION OF ANY REAL OR PERSONAL PROPERTY DEEMED 22 NECESSARY BY THE AUTHORITY. 23 2. IN ANTICIPATION OF THE SALE OF SUCH BONDS THE AUTHORITY MAY ISSUE 24 NEGOTIABLE BOND ANTICIPATION NOTES IN CONFORMITY WITH THE APPLICABLE 25 PROVISIONS OF THE LOCAL FINANCE LAW AND MAY RENEW THE SAME FROM TIME TO 26 TIME BUT THE MAXIMUM MATURITY OF ANY SUCH NOTE, INCLUDING RENEWALS THER- 27 EOF, SHALL NOT EXCEED FIVE YEARS FROM THE DATE OF ISSUE OF SUCH ORIGINAL 28 NOTES. SUCH NOTES SHALL BE PAID FROM ANY MONEYS OF THE AUTHORITY AVAIL- 29 ABLE THEREFOR AND NOT OTHERWISE PLEDGED OR FROM THE PROCEEDS OF SALE OF 30 THE BONDS OF THE AUTHORITY IN ANTICIPATION OF WHICH THEY WERE ISSUED. 31 SUCH NOTES SHALL NOT BE ISSUED IN ANY AMOUNT IN EXCESS OF THE AMOUNT OF 32 BONDS WHICH THE AUTHORITY IS AUTHORIZED TO ISSUE LESS THE AMOUNT OF ANY 33 BONDS OR OTHER NOTES THERETOFORE ISSUED AND OUTSTANDING. THE NOTES SHALL 34 BE ISSUED IN THE SAME MANNER AS THE BONDS. SUCH NOTES AND THE RESOLUTION 35 AUTHORIZING THE SAME MAY CONTAIN ANY PROVISIONS, CONDITIONS OR LIMITA- 36 TIONS WHICH A BOND RESOLUTION OF THE AUTHORITY MAY CONTAIN. 37 3. THE AUTHORITY SHALL HAVE POWER FROM TIME TO TIME, WHENEVER IT DEEMS 38 REFUNDING EXPEDIENT, TO REFUND ANY BONDS BY THE ISSUANCE OF NEW BONDS, 39 WHETHER THE BONDS TO BE REFUNDED HAVE OR HAVE NOT MATURED, AND MAY ISSUE 40 BONDS AND NOTES PARTLY TO REFUND BONDS AND NOTES THEN OUTSTANDING AND 41 PARTLY FOR ANY OTHER PURPOSE AUTHORIZED BY THIS TITLE. REFUNDING BONDS 42 AND NOTES MAY BE EXCHANGED FOR THE BONDS AND NOTES TO BE REFUNDED, WITH 43 SUCH CASH ADJUSTMENTS AS MAY BE AGREED, OR MAY BE SOLD WITH THE PROCEEDS 44 APPLIED TO THE PURCHASE OR PAYMENT OF THE BONDS AND NOTES TO BE 45 REFUNDED. 46 4. THE BONDS AND NOTES MAY BE ISSUED PAYABLE IN ANNUAL INSTALLMENTS OR 47 AS TERM BONDS OF THE AUTHORITY OR THE AUTHORITY MAY, IN ITS DISCRETION, 48 ISSUE BONDS AND NOTES OF BOTH TYPES. SUCH BONDS AND NOTES SHALL BE 49 AUTHORIZED BY RESOLUTION OF THE BOARD OF DIRECTORS AND SHALL BEAR SUCH 50 DATE OR DATES, MATURE AT SUCH TIME OR TIMES NOT EXCEEDING FIFTY YEARS 51 FROM THEIR RESPECTIVE DATES, BEAR INTEREST AT SUCH RATE OR RATES PAYABLE 52 ANNUALLY OR SEMI-ANNUALLY, BE IN SUCH DENOMINATIONS, BE IN REGISTERED 53 FORM ONLY, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN LAWFUL MONEY OF THE 54 UNITED STATES OF AMERICA AT SUCH PLACE OR PLACES AND BE SUBJECT TO SUCH 55 TERMS OF REDEMPTION AS SUCH RESOLUTION OR RESOLUTIONS MAY PROVIDE. IN 56 THE EVENT THAT TERM BONDS ARE ISSUED, THE RESOLUTION AUTHORIZING SAME A. 5413 6 1 MAY MAKE SUCH PROVISIONS FOR THE ESTABLISHMENT AND MANAGEMENT OF 2 ADEQUATE SINKING FUNDS FOR THE PAYMENT THEREOF AS THE AUTHORITY MAY DEEM 3 NECESSARY. THE BONDS OR NOTES SHALL BE SOLD AT PUBLIC SALE AND MAY BE 4 SOLD FOR SUCH PRICE OR PRICES AS THE AUTHORITY SHALL DETERMINE. 5 ANNOUNCEMENTS OF SUCH PUBLIC SALE MAY APPEAR IN ANY BILLS RENDERED FOR 6 SERVICE BY THE AUTHORITY. THE RESOLUTION OR RESOLUTIONS AUTHORIZING ANY 7 SUCH OBLIGATIONS MAY CONTAIN PROVISIONS, WHICH SHALL BE PART OF THE 8 CONTRACT WITH THE HOLDERS THEREOF, WHICH PROVISIONS MAY: 9 (A) PLEDGE THE REVENUES OF THE AUTHORITY TO SECURE THE PAYMENT OF SUCH 10 BONDS AND AGREE TO MAINTAIN SCHEDULES OF RATES, TARIFFS AND CHARGES 11 ADEQUATE TO PAY THE INTEREST AND PRINCIPAL OF SUCH OBLIGATIONS; 12 (B) GIVE TO THE HOLDERS OF SUCH BONDS AND OTHER OBLIGATIONS, OR THEIR 13 AUTHORIZED REPRESENTATIVES, A LIEN UPON SUCH REVENUES AND MAINTAIN SUCH 14 ACCOUNTS AS MAY BE REQUIRED BY SUCH HOLDERS, SUBJECT TO AGREEMENT BY THE 15 PUBLIC SERVICE COMMISSION AND THE STATE COMPTROLLER; 16 (C) REQUIRE SUCH REVENUES TO BE SET ASIDE FOR SINKING FUNDS AND 17 RESERVE FUNDS, SAFEGUARDING THE DEPOSIT, USE AND INVESTMENT THEREOF; 18 (D) LIMIT OR RESTRICT THE POWER OF THE AUTHORITY UNDER THIS TITLE, 19 INSOFAR AS THE SAME MAY BE DEEMED ADVISABLE, TO SECURE THE PAYMENT OF 20 SUCH BONDS AND NOTES, INCLUDING THE AUTHORITY TO ISSUE ADDITIONAL OBLI- 21 GATIONS OR THE DISPOSITION OF THE PROCEEDS OF REVENUES OF THE AUTHORITY; 22 (E) AUTHORIZE THE APPOINTMENT OF A TRUSTEE OR RECEIVER AS PROVIDED, 23 LIMIT THE RIGHTS OF THE BONDHOLDERS TO ENFORCE THEIR BONDS OR NOTES BY 24 INDEPENDENT ACTION AND, IN THE EVENT OF A RECEIVERSHIP, REQUIRE THE 25 RETURN OF ALL PROPERTIES TO THE AUTHORITY WHEN THE BONDS OR NOTES ARE 26 PAID OR REDEEMED AND ALL COSTS PAID; 27 (F) CONTAIN ANY OTHER PROVISIONS REASONABLY NECESSARY OR DEEMED ADVIS- 28 ABLE TO SECURE AND PROVIDE FOR THE PAYMENT OF SAID BONDS AND OBLIGATIONS 29 AND THE RIGHTS AND REMEDIES OF THE HOLDERS THEREOF; 30 (G) PROVIDE THAT THE AUTHORITY, THE STATE OF NEW YORK, THE COUNTIES OF 31 WESTCHESTER, ROCKLAND AND ORANGE AND THE CITY OF NEW YORK MAY PURCHASE, 32 PLEDGE, CANCEL, HOLD OR REDEEM SUCH BONDS AND NOTES; 33 (H) PROVIDE FOR THE AMENDMENT OF ANY SUCH RESOLUTION IN ANY RESPECT 34 AND THE AMOUNT OF BONDS OR OBLIGATIONS THE HOLDERS OF WHICH, AFTER 35 PUBLISHED OR WRITTEN NOTICE, MUST CONSENT OR OBJECT THERETO IN ORDER 36 THAT SUCH AMENDMENT MAY OR MAY NOT BECOME EFFECTIVE. 37 S 1148-J. RIGHTS OF REDEMPTION. THE AUTHORITY, THE STATE OF NEW YORK, 38 THE CITY OF NEW YORK, AND THE COUNTIES OF WESTCHESTER, ROCKLAND AND 39 ORANGE SHALL HAVE THE RIGHT TO REDEEM THE BONDS AND OBLIGATIONS OF THE 40 AUTHORITY, MAY ACQUIRE SUCH BONDS AND NOTES AND MAY CANCEL, HOLD, SELL 41 OR OTHERWISE DISPOSE OF SUCH BONDS AND OBLIGATIONS. 42 S 1148-K. BONDS AND OBLIGATIONS LEGAL INVESTMENTS OF FIDUCIARIES. ON 43 OR BEFORE JANUARY FIRST OF EACH YEAR, COMMENCING WITH JANUARY FIRST, TWO 44 THOUSAND TEN, THE COMPTROLLER OF THE STATE OF NEW YORK SHALL FILE WITH 45 THE PUBLIC SERVICE COMMISSION HIS CERTIFICATE STATING THE AVERAGE ANNUAL 46 REVENUES OF THE AUTHORITY, OR OF THE PROPERTIES ACQUIRED OR TO BE 47 ACQUIRED BY THE AUTHORITY, FOR THE THEN PRECEDING FIVE YEARS, AS THE 48 CASE MAY BE, AND THE MAXIMUM AMOUNT REQUIRED IN ANY FUTURE YEAR TO MEET 49 THE INTEREST AND MATURING PRINCIPAL OF THE OUTSTANDING OBLIGATIONS OF 50 THE AUTHORITY. IF IN HIS OPINION THE OBLIGATIONS OF THE AUTHORITY ARE ON 51 THE FACTS SO DETERMINED AND IN HIS JUDGMENT SUFFICIENTLY SECURED SO AS 52 TO CONSTITUTE A SUITABLE INVESTMENT FOR THE PUBLIC FUNDS OF THE STATE, 53 HE SHALL SO CERTIFY, BUT SUCH CERTIFICATION MAY LATER BE WITHDRAWN. SO 54 LONG AS SUCH CERTIFICATION REMAINS IN EFFECT, THE COMPTROLLER AND ALL 55 OTHER PUBLIC OFFICERS AND BODIES OF THE STATE, ALL MUNICIPALITIES AND 56 OTHER POLITICAL SUBDIVISIONS, ALL INSURANCE COMPANIES AND ASSOCIATIONS, A. 5413 7 1 ALL SAVINGS BANKS AND SAVINGS INSTITUTIONS, INCLUDING SAVINGS AND LOAN 2 OFFICERS, ASSOCIATIONS, ADMINISTRATORS, GUARDIANS, EXECUTORS AND TRUS- 3 TEES, AND ALL OTHER FIDUCIARIES IN THE STATE MAY PROPERLY AND LEGALLY 4 INVEST FUNDS IN THEIR CONTROL IN SUCH OBLIGATIONS. 5 S 1148-L. EXEMPTION FROM TAXATION; PAYMENTS IN LIEU OF TAXES. THE 6 REAL AND PERSONAL PROPERTY OF THE AUTHORITY AND ALL OF ITS ACTIVITIES 7 AND OPERATIONS SHALL BE EXEMPT FROM TAXATION PROVIDED, HOWEVER, THAT THE 8 AUTHORITY SHALL PAY TO ALL UNITS OF STATE AND LOCAL GOVERNMENT AMOUNTS 9 IN LIEU OF TAXES EQUAL TO THE TAXES PAID OR OWING BY THE PREVIOUS OWNER 10 IN THE FISCAL YEAR IMMEDIATELY PRIOR TO THE ACQUISITION OF THE FACILI- 11 TIES OF SAID PREVIOUS OWNER BY THE AUTHORITY. IN ADDITION THE BOARD MAY 12 AGREE TO INCREASE PAYMENTS IN LIEU OF TAXES TO THE CITY OF NEW YORK AND 13 THE COUNTIES OF WESTCHESTER, ROCKLAND AND ORANGE. 14 S 1148-M. THE CITY OF NEW YORK AND COUNTIES OF WESTCHESTER, ROCKLAND 15 AND ORANGE MAY LEVY TAXES WITHIN THE AUTHORITY. 1. THE CITY OF NEW YORK 16 AND THE COUNTY OF WESTCHESTER MAY, AT ANY TIME, LEVY A SPECIAL TAX 17 ASSESSMENT UPON THE REAL PROPERTY IN SUCH CITY OR COUNTY, RESPECTIVELY, 18 BENEFITED BY THE AUTHORITY TO DEFRAY ALL OR ANY PORTION OF THE PAYMENT 19 OF INTEREST AND PRINCIPAL OF BONDS OR OTHER OBLIGATIONS OF THE AUTHORI- 20 TY, TO PROVIDE SINKING FUNDS, GUARANTY FUNDS OR OTHER FUNDS FOR EACH 21 PAYMENT OR TO PROVIDE FOR THE REDEMPTION OF SUCH OBLIGATIONS. SUCH 22 ASSESSMENT OR ASSESSMENTS SHALL BE LEVIED IN CONFORMANCE WITH THE APPLI- 23 CABLE PROVISIONS OF THE UNITED STATES INTERNAL REVENUE CODE AND ANY 24 REGULATIONS OR RULINGS ISSUED THEREUNDER IN ORDER THAT REAL PROPERTY 25 OWNERS IN SUCH CITY AND COUNTY BE ENABLED TO DEDUCT SUCH ASSESSMENTS 26 FROM FEDERAL INCOME TAXES. 27 2. SUCH CITY AND COUNTIES SHALL ESTABLISH A SYSTEM OF ACCOUNTS, WITH 28 THE APPROVAL OF THE STATE COMPTROLLER AND THE PUBLIC SERVICE COMMISSION, 29 FOR THE TRANSFER OF THE PROCEEDS OF SUCH LEVIES TO THE AUTHORITY AND FOR 30 SUCH REDUCTIONS IN THE RATES AND CHARGES FOR ELECTRIC SERVICE IN THE 31 AMOUNTS TRANSFERRED AS SHALL BE REQUIRED OF THE AUTHORITY, EXCEPT THAT 32 AMOUNTS TRANSFERRED FOR THE MAINTENANCE OF SINKING FUNDS, GUARANTY FUNDS 33 OR FUNDS OTHER THAN FOR THE PAYMENT OF INTEREST OR PRINCIPAL MATURING 34 WITHIN ONE YEAR SHALL NOT PRESENTLY REDUCE RATES FOR ELECTRIC SERVICE. 35 S 1148-N. EXAMINATION BY COMPTROLLER. THE STATE COMPTROLLER AND HIS 36 LEGALLY AUTHORIZED REPRESENTATIVES ARE HEREBY AUTHORIZED AND EMPOWERED 37 FROM TIME TO TIME, AND IN ADDITION TO THE PUBLIC SERVICE COMMISSION, TO 38 EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUDING ITS RECEIPTS, 39 DISBURSEMENTS, CONTRACTS, LEASES, SINKING FUNDS, INVESTMENTS AND ANY 40 OTHER MATTERS RELATING TO ITS FINANCIAL STANDING. 41 S 1148-O. REPORTS OF THE AUTHORITY. THE AUTHORITY SHALL ANNUALLY 42 REPORT TO THE GOVERNOR, THE LEGISLATURE, THE CITY OF NEW YORK, THE COUN- 43 TY OF WESTCHESTER, THE PUBLIC SERVICE COMMISSION AND THE COMPTROLLER 44 UPON ITS ACTIVITIES AND OPERATIONS. 45 S 2. This act shall take effect immediately.