Bill Text: NY A10551 | 2011-2012 | General Assembly | Amended
Bill Title: Relates to permitting financing by the Nassau county interim finance authority for the benefit of the Nassau county health care corporation.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-06-18 - print number 10551a [A10551 Detail]
Download: New_York-2011-A10551-Amended.html
S T A T E O F N E W Y O R K
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10551--A
I N A S S E M B L Y
June 5, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lavine,
Schimel) -- read once and referred to the Committee on Corporations,
Authorities and Commissions -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public authorities law, in relation to allowing
certain financing by the Nassau county interim finance authority for
the benefit of the Nassau health care corporation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 12 of section 3651 of the public authorities
2 law, as added by chapter 84 of the laws of 2000, is amended to read as
3 follows:
4 12. "Financeable costs" or "costs" means costs to finance (a) amounts
5 necessary to accomplish a refunding, repayment or restructuring of a
6 portion of the county's outstanding indebtedness or that of any covered
7 organization, (b) cash flow needs of the county OR OF THE NASSAU HEALTH
8 CARE CORPORATION, (c) tax certiorari settlements and judgments of any
9 kind to which the county is a party, (d) appropriated capital costs of
10 the county OR OF THE NASSAU HEALTH CARE CORPORATION, including the costs
11 of any preliminary studies, surveys, maps, plans, estimates and hear-
12 ings, (e) amounts necessary to finance any county deficit, to the extent
13 authorized by state law, or (f) incidental costs, including, but not
14 limited to, legal fees, printing or engraving, publication of notices,
15 taking of title, apportionment of costs, and capitalized interest,
16 insurance premiums, costs related to items authorized in subdivisions
17 seven through ten of section thirty-six hundred fifty-four of this title
18 or any underwriting or other costs incurred in connection with the
19 financing thereof.
20 S 2. Subdivisions 1 and 2 of section 3656 of the public authorities
21 law, as amended by chapter 685 of the laws of 2003, are amended to read
22 as follows:
23 1. The authority shall have the power and is hereby authorized from
24 time to time to issue bonds in such principal amounts as it may deter-
25 mine to be necessary pursuant to section thirty-six hundred fifty-five
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16126-05-2
A. 10551--A 2
1 of this title to pay any financeable costs and to fund reserves to
2 secure such bonds, including incidental expenses in connection there-
3 with. Provided, however, the aggregate principal amounts of such bonds
4 issued to pay the financeable costs described in paragraph (a) of subdi-
5 vision twelve of section thirty-six hundred fifty-one of this title
6 shall not exceed four hundred fifteen million dollars, excluding bonds,
7 notes, or other obligations issued to refund or otherwise repay bonds,
8 notes, or other obligations theretofore issued for such purposes.
9 Notwithstanding the foregoing limit on the amount of bonds that the
10 authority may issue to pay the financeable costs described in paragraph
11 (a) of subdivision twelve of section thirty-six hundred fifty-one of
12 this title, the authority shall have the power to issue up to an addi-
13 tional seven hundred ninety million dollars of bonds, excluding bonds,
14 notes, or other obligations issued to refund or otherwise repay bonds,
15 notes, or other obligations theretofore issued for such purpose, to pay
16 such costs if the county's indebtedness to be refunded, repaid or
17 restructured with the payment of such bonds was originally incurred by
18 the county to pay tax certiorari settlements or assignments of any kind
19 to which the county is a party. Provided further, the aggregate princi-
20 pal amounts of such bonds issued to pay the financeable costs described
21 in paragraph (c) of subdivision twelve of section thirty-six hundred
22 fifty-one of this title, which resulted from certiorari proceedings
23 commenced prior to June first, two thousand, shall not exceed four
24 hundred million dollars, excluding bonds, notes, or other obligations
25 issued to refund or otherwise repay bonds, notes, or other obligations
26 theretofore issued for such purposes. And, provided further, the aggre-
27 gate principal amounts of such bonds issued to pay the financeable coun-
28 ty costs described in paragraph (c) of subdivision twelve of section
29 thirty-six hundred fifty-one of this title, which resulted from certior-
30 ari proceedings commenced on or after June first, two thousand, shall
31 not exceed four hundred million dollars in the aggregate for the fiscal
32 years two thousand through two thousand seven, however, of said four
33 hundred million dollars only fifteen million dollars may be issued in
34 the fiscal year two thousand six and ten million dollars may be issued
35 in the fiscal year two thousand seven, excluding bonds, notes, or other
36 obligations issued to refund or otherwise repay bonds, notes, or other
37 obligations theretofore issued for such purposes. Effective in the year
38 two thousand six, upon request of the county, the authority shall issue,
39 in the amount requested, bonds to pay tax certiorari settlements or
40 judgments of any kind to which the county is a party, not to exceed
41 fifteen million dollars; and effective in the year two thousand seven,
42 upon request of the county, the authority shall issue, in the amount
43 requested, bonds to pay tax certiorari settlements or judgments of any
44 kind to which the county is a party, not to exceed ten million dollars.
45 NOTWITHSTANDING THE FOREGOING, THE AUTHORITY MAY ISSUE UP TO THREE
46 HUNDRED MILLION DOLLARS IN BONDS TO PAY THE FINANCEABLE COSTS DESCRIBED
47 IN PARAGRAPHS (A), (D) AND (F) OF SUBDIVISION TWELVE OF SECTION THIRTY-
48 SIX HUNDRED FIFTY-ONE OF THIS TITLE, PROVIDED THAT SUCH FINANCEABLE
49 COSTS ARE DIRECTLY RELATED TO THE NASSAU HEALTH CARE CORPORATION. When-
50 ever this title establishes a limit on the principal amount of bonds
51 that the authority is authorized to issue, there shall not be counted
52 against such limit (i) amounts determined by the authority as reasonable
53 to be used to pay the cost of issuing such bonds, (ii) the amount of
54 bonds that would constitute interest under the Internal Revenue Code of
55 1986, as amended, and (iii) amounts determined by the authority as
56 necessary to establish any reserves.
A. 10551--A 3
1 The authority shall have the power from time to time to refund any
2 bonds of the authority by the issuance of new bonds, whether the bonds
3 to be refunded have or have not matured, and may issue bonds partly to
4 refund bonds of the authority then outstanding and partly to pay the
5 financeable costs pursuant to section thirty-six hundred fifty-five of
6 this title. Bonds issued by the authority shall be payable solely out of
7 particular revenues or other moneys of the authority as may be desig-
8 nated in the proceedings of the authority under which the bonds shall be
9 authorized to be issued, subject to any agreements entered into between
10 the authority and the county, and subject to any agreements with the
11 holders of outstanding bonds pledging any particular revenues or moneys;
12 but in no event shall transitional state aid be pledged as security for
13 or be made available for the payment of bonds. BONDS AND NOTES ISSUED
14 BY THE AUTHORITY ON BEHALF OF THE NASSAU HEALTH CARE CORPORATION SHALL
15 NOT BE SUBJECT TO SECTION TWENTY-NINE HUNDRED SEVENTY-SIX OF THIS CHAP-
16 TER.
17 2. [The authority is authorized to issue its bonds for a period ending
18 not later than December thirty-first, two thousand seven.] The authority
19 may issue bonds to refund bonds previously issued [without regard to the
20 limitation in the first sentence of this subdivision], but in no event
21 shall any bonds of the authority finally mature later than January thir-
22 ty-first, two thousand thirty-six. Notwithstanding any other provision
23 of law, no bond of the authority shall mature more than thirty years
24 from the date of its issue.
25 S 3. Subdivisions 8, 9 and 10 of section 3654 of the public authori-
26 ties law, as added by chapter 84 of the laws of 2000, are amended to
27 read as follows:
28 8. to procure insurance, OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH
29 CARE CORPORATION WITH RESPECT TO, letters of credit or other credit
30 enhancement with respect to its bonds, or facilities for the payment of
31 tenders of such bonds or facilities for the payment upon maturity of
32 short-term notes not renewed;
33 9. to enter into OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH CARE
34 CORPORATION WITH RESPECT TO, interest rate exchange or similar arrange-
35 ments with any person under such terms and conditions as the authority
36 may determine, not inconsistent with the general laws of this state and
37 other provisions of this title, including, without limitation,
38 provisions as to default or early termination and indemnification by the
39 authority or any other party thereto for loss of benefits as a result
40 thereof; provided, however, that such exchanges or similar arrangements
41 shall be limited to fifty percent of the amount authorized in subdivi-
42 sion one of section thirty-six hundred fifty-six of this [article] TITLE
43 to pay the financeable costs described in paragraph (a) of subdivision
44 eleven of section thirty-six hundred fifty-one of this [article] TITLE;
45 10. to procure OR SERVE AS GUARANTOR FOR THE NASSAU HEALTH CARE CORPO-
46 RATION WITH RESPECT TO, insurance, letters of credit or other credit
47 enhancement with respect to arrangements described in subdivision nine
48 of this section;
49 S 4. This act shall take effect immediately.
