Bill Text: NY A10256 | 2023-2024 | General Assembly | Introduced

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Bill Title: Authorizes the Dormitory Authority to provide public financing options to build new police facilities in areas that currently have one police precinct or facility covering 300,000 or more people.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-15 - referred to corporations, authorities and commissions [A10256 Detail]

Download: New_York-2023-A10256-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10256

                   IN ASSEMBLY

                                      May 15, 2024
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Kim) -- read
          once  and  referred  to the Committee on Corporations, Authorities and
          Commissions

        AN ACT to amend the public authorities law, in relation  to  authorizing
          the  Dormitory  Authority to provide public financing options to build
          new police facilities in certain areas

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  public  authorities  law  is amended by adding a new
     2  section 1680-s to read as follows:
     3    § 1680-s. Authority financing of additional police precincts.  1.  The
     4  dormitory  authority  is  hereby  authorized  to finance eligible police
     5  precinct facilities and buildings in any area  in  which  three  hundred
     6  thousand people or more are served by one police precinct.
     7    2.  (a) Subject to the provisions of chapter fifty-nine of the laws of
     8  two thousand and to the making of annual appropriations therefor by  the
     9  legislature, in order to assist the dormitory authority in providing for
    10  the financing of additional police precincts, the director of the budget
    11  is authorized in any state fiscal year commencing April first, two thou-
    12  sand  twenty-five  or any state fiscal year thereafter to enter into one
    13  or more service contracts, none of which shall exceed  thirty  years  in
    14  duration,  with the dormitory authority, upon such terms as the director
    15  of the budget and the dormitory authority agree.
    16    (b) Any service contract entered into pursuant  to  paragraph  (a)  of
    17  this  subdivision  or  any payments made or to be made thereunder may be
    18  assigned and pledged by the dormitory  authority  as  security  for  its
    19  bonds, notes, or other obligations.
    20    (c)  Any  such  service contracts shall provide that the obligation of
    21  the director of the budget or of the state to fund or to pay the amounts
    22  therein provided for shall not constitute a debt of the state within the
    23  meaning of any constitutional or statutory provision in  the  event  the
    24  dormitory  authority assigns or pledges the service contract payments as
    25  security for its bonds, notes, or other obligations and shall be  deemed
    26  executory  only to the extent monies are available and that no liability

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15504-01-4
        A. 10256                            2

     1  shall be incurred by the state  beyond  the  monies  available  for  the
     2  purpose, and that such obligation is subject to annual appropriations by
     3  the legislature.
     4    (d)  Any  service  contract or contracts entered into pursuant to this
     5  subdivision shall provide for state commitments to provide  annually  to
     6  the dormitory authority a sum or sums, upon such terms and conditions as
     7  shall  be  deemed appropriate by the director of the budget, to fund the
     8  principal, interest, or other related payments required for  any  bonds,
     9  notes,  or  other obligations of the dormitory authority issued pursuant
    10  to this section.
    11    3. (a) To obtain funds for the purposes of this section, the authority
    12  shall have power from time to time to issue negotiable bonds  or  notes.
    13  Unless  the context shall clearly indicate otherwise, whenever the words
    14  "bond" or "bonds" are used in this section, such words shall  include  a
    15  note or notes of the authority.
    16    (b)  The  dormitory authority shall not issue any bonds or notes in an
    17  amount in excess of fifty million  dollars  for  the  purposes  of  this
    18  section;  excluding  bonds  or  notes  issued  to  fund one or more debt
    19  service reserve funds, to pay costs of issuance of such bonds, and bonds
    20  or notes issued to refund or otherwise repay such bonds or notes  previ-
    21  ously issued. Except for purposes of complying with the internal revenue
    22  code,  any  interest  on  bond  proceeds  shall only be used to pay debt
    23  service on such bonds.
    24    (c) In computing for the purposes of paragraph (b)  of  this  subdivi-
    25  sion,  the aggregate amount of indebtedness evidenced by bonds and notes
    26  of the dormitory authority issued pursuant to this title, there shall be
    27  excluded the amount of such indebtedness represented by  such  bonds  or
    28  notes  issued to refund or otherwise repay bonds or notes; provided that
    29  the amount so excluded under this paragraph  may  exceed  the  principal
    30  amount  of  such  bonds or notes that were issued to refund or otherwise
    31  repay only if the present value of the aggregate  debt  service  on  the
    32  refunding  or  repayment  bonds  or  notes shall not have at the time of
    33  their issuance exceeded the present value of the aggregate debt  service
    34  of  the bonds or notes they were issued to refund or repay, such present
    35  value in each case being calculated by using the effective interest rate
    36  of the refunding or repayment bonds or notes, which shall be  that  rate
    37  arrived  at  by doubling the semi-annual interest rate (compounded semi-
    38  annually) necessary to discount the debt service payments on the refund-
    39  ing or repayment bonds or notes from the payment  date  thereof  to  the
    40  date  of  issue  of the refunding or repayment bonds or notes and to the
    41  price bid therefor, or to the proceeds received by the dormitory author-
    42  ity from the sale thereof, in  each  case  including  estimated  accrued
    43  interest.
    44    (d)  The state of New York hereby covenants with the purchasers, hold-
    45  ers, and owners from time to time of the bonds of the  authority  issued
    46  pursuant  to this section that it will not, subject to the provisions of
    47  paragraph (c) of  subdivision  two  of  this  section,  repeal,  revoke,
    48  rescind, modify, or amend the provisions of this section which relate to
    49  the  making  of  annual  service contract payments to the authority with
    50  respect to such bonds as to limit, impair,  or  impede  the  rights  and
    51  remedies  granted  to bondholders under this title or otherwise diminish
    52  the security pledged to such purchasers, holders, and owners or  signif-
    53  icantly impair the prospect of payment of any such bond.
    54    § 2. Section 1676 of the public authorities law is amended by adding a
    55  new subdivision 37 to read as follows:
        A. 10256                            3

     1    37. "Eligible police precinct facilities" shall mean a project for the
     2  design,  acquisition,  construction,  rehabilitation  or  improvement of
     3  police precinct facilities as set forth  in  an  agreement  between  the
     4  authority  and the director of the budget providing for the financing of
     5  such improvements.
     6    § 3. This act shall take effect immediately.