Bill Text: NY S02392 | 2011-2012 | General Assembly | Introduced
Bill Title: Creates a debt management board with authority to set a limit on state debt; authorizes the use of surplus moneys to reduce outstanding state debt; limits the amount of state debt that may be incurred; limits the debt of public authorities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-05 - PRINT NUMBER 2392A [S02392 Detail]
Download: New_York-2011-S02392-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 2392 2011-2012 Regular Sessions I N S E N A T E January 19, 2011 ___________ Introduced by Sen. LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to the creation of a debt management board, using surplus moneys to reduce outstanding state funded debt and limiting the amount of state funded debt that may be incurred; to amend the public authorities law, in relation to defining and listing public authorities, limiting the debt of public authorities, the approval by the comptroller of the terms and condi- tions of bonds or notes issued by public authorities, the powers and duties of the public authorities control board, and the issuance of bonds and notes of the New York state thruway authority; and to repeal article 5-B of the state finance law relating to limitations on state- supported debt THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Article 5-B of the state finance law is REPEALED and a new 2 article 5-B is added to read as follows: 3 ARTICLE 5-B 4 DEBT MANAGEMENT BOARD 5 AND 6 LIMITATIONS ON STATE FUNDED DEBT 7 SECTION 67-A. DEFINITIONS. 8 67-B. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED 9 DEBT. 10 67-C. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE. 11 67-D. POWERS AND DUTIES OF THE BOARD. 12 67-E. COMPTROLLER'S DUTIES WITH RESPECT TO BOARD. 13 67-F. LIMITATIONS ON STATE FUNDED DEBT AND STATE DEBT SERVICE 14 PAYMENTS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07311-01-1 S. 2392 2 1 S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE AND ARTICLE FIVE-C OF 2 THIS CHAPTER THE FOLLOWING TERMS SHALL HAVE THE MEANINGS SET FORTH 3 BELOW: 4 1. "BOARD" SHALL MEAN THE NEW YORK STATE DEBT MANAGEMENT BOARD ESTAB- 5 LISHED BY SECTION SIXTY-SEVEN-C OF THIS ARTICLE. 6 2. "CAPITAL PURPOSE" SHALL MEAN ANY PROJECT INVOLVING: 7 (A) THE ACQUISITION, CONSTRUCTION, DEMOLITION OR REPLACEMENT OF A 8 FIXED ASSET; 9 (B) THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY 10 EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS CAPACI- 11 TY; 12 (C) THE PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI- 13 TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, INCLUD- 14 ING THE PREPARATION AND REVIEW OF PLANS AND SPECIFICATIONS INCLUDING 15 ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND SUB-SURFACE INVESTI- 16 GATIONS INCIDENTAL THERETO; OR 17 (D) THE COSTS OF ISSUING DEBT OBLIGATIONS TO FINANCE A CAPITAL 18 PURPOSE. 19 3. "CASH SURPLUS" SHALL MEAN THE AMOUNT BY WHICH GENERAL FUND RECEIPTS 20 IN A FISCAL YEAR EXCEED GENERAL FUND EXPENDITURES IN SUCH FISCAL YEAR. 21 4. "CONDUIT DEBT OBLIGATIONS" SHALL MEAN A DEBT OBLIGATION ISSUED BY A 22 PUBLIC AUTHORITY (HEREINAFTER REFERRED TO IN THIS SUBDIVISION AS THE 23 "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY (HEREINAFTER REFERRED TO IN 24 THIS SUBDIVISION AS THE "CONDUIT BORROWER") OTHER THAN THE STATE OR A 25 POLITICAL SUBDIVISION OF THE STATE, WHERE PAYMENT OF THE OBLIGATION IS 26 TO BE MADE FROM FUNDS OF THE CONDUIT BORROWER, THE SECURITY FOR THE 27 OBLIGATION IS THE CREDIT OF THE CONDUIT BORROWER AND NO FUNDS OF THE 28 CONDUIT ISSUER, THE STATE OR A POLITICAL SUBDIVISION OF THE STATE ARE 29 PLEDGED TO SECURE THE OBLIGATION, WHETHER OR NOT THE OBLIGATION OF THE 30 CONDUIT ISSUER, THE STATE OR POLITICAL SUBDIVISION OF THE STATE IS 31 SUBJECT TO APPROPRIATION OR IS OTHERWISE CONTINGENT. 32 5. "STATE BACKED DEBT" SHALL MEAN ANY DEBT OR OBLIGATION, OTHER THAN 33 STATE DEBT, THAT IS SUPPORTED IN WHOLE OR IN PART BY ANY FINANCING 34 ARRANGEMENT WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED, WHETHER 35 BY LAW, CONTRACT OR OTHERWISE, TO MAKE PAYMENTS WHICH WILL BE USED, 36 DIRECTLY OR INDIRECTLY, FOR THE PAYMENT OF PRINCIPAL, INTEREST OR 37 RELATED PAYMENTS ON INDEBTEDNESS INCURRED OR CONTRACTED BY THE STATE 38 ITSELF FOR ANY PURPOSE, OR BY ANY STATE AGENCY, MUNICIPALITY, INDIVID- 39 UAL, PUBLIC AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY 40 OTHER ENTITY FOR STATE CAPITAL OR OPERATING PURPOSES OR TO FINANCE 41 GRANTS, LOANS OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY OR ON 42 BEHALF OF THE STATE FOR ANY PURPOSE. IF THE STATE AGREES TO MAKE FUTURE 43 REVENUES FROM A SPECIFIC STATE SOURCE AVAILABLE FOR THE PURPOSE OF 44 SUPPORTING DEBT OF ANY MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR 45 OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, SUCH DEBT SHALL 46 BE CONSIDERED TO BE A DEBT FOR THE PURPOSE OF FINANCING A STATE GRANT, 47 LOAN OR OTHER ASSISTANCE PAYMENT AND SHALL BE A "STATE BACKED DEBT" FOR 48 THE PURPOSES OF THIS ARTICLE. THE TERM "STATE BACKED DEBT" APPLIES TO 49 ALL DEBT OR OBLIGATIONS DESCRIBED IN THIS SUBDIVISION FOR WHICH THE 50 STATE AGREES, OR HAS IN THE PAST AGREED, TO MAKE PAYMENTS (A) WHETHER OR 51 NOT THE OBLIGATION OF THE STATE TO MAKE PAYMENTS IS SUBJECT TO APPROPRI- 52 ATION OR IS OTHERWISE CONTINGENT, OR (B) WHETHER OR NOT DEBT SERVICE IS 53 TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY THE STATE TO ANOTHER 54 PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS. 55 6. "STATE FUNDED DEBT" SHALL MEAN THE COMBINED TOTAL OF ALL STATE DEBT 56 AND ALL STATE BACKED DEBT, EXCEPT SHORT TERM DEBT INCURRED IN ACCORDANCE S. 2392 3 1 WITH SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT 2 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI- 3 TUTION, AND REFUNDING DEBT INCURRED IN ACCORDANCE WITH SECTION THIRTEEN 4 OF ARTICLE SEVEN OF THE CONSTITUTION. 5 7. "STATE DEBT" SHALL MEAN ALL BONDS AND BOND ANTICIPATION NOTES 6 ISSUED BY THE STATE COMPTROLLER PURSUANT TO ARTICLE FIVE OF THIS CHAP- 7 TER. 8 8. "TOTAL PERSONAL INCOME OF THE STATE" SHALL MEAN THE MOST RECENTLY 9 PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF 10 THE STATE BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY SUCCESSOR 11 AGENCY FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS FOR WHICH 12 INFORMATION IS AVAILABLE PRIOR TO OCTOBER THIRTY-FIRST OF EACH YEAR. 13 SUBSEQUENT REVISIONS OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT FOR SUCH 14 CALENDAR QUARTERS SHALL NOT AFFECT THE VALIDITY OF THE DETERMINATION 15 MADE BY THE BOARD FOR ANY FISCAL YEAR. 16 S 67-B. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED DEBT. 17 AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS REMAIN- 18 ING IN THE GENERAL FUND AFTER THE TRANSFER PURSUANT TO SECTION 19 NINETY-TWO OF THIS CHAPTER SHALL BE TRANSFERRED TO THE DEBT REDUCTION 20 RESERVE FUND ESTABLISHED BY SECTION NINETY-SEVEN-RRR OF THIS CHAPTER, AS 21 ADDED BY SECTION THIRTY-SIX OF PART B OF CHAPTER FIFTY-SEVEN OF THE LAWS 22 OF NINETEEN HUNDRED NINETY-EIGHT. THE PORTION TO BE TRANSFERRED SHALL 23 BE EQUAL TO THE PROJECTED RATIO OF TOTAL DEBT SERVICE DISBURSEMENTS FOR 24 THE FISCAL YEAR TO TOTAL GOVERNMENTAL FUNDS DISBURSEMENTS FOR STATE 25 AGENCY OPERATIONS FOR THE FISCAL YEAR. 26 S 67-C. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE. 1. 27 THE NEW YORK STATE DEBT MANAGEMENT BOARD IS HEREBY ESTABLISHED TO HAVE 28 AND EXERCISE THE POWERS, DUTIES AND PREROGATIVES PROVIDED BY THE 29 PROVISIONS OF THIS ARTICLE AND ANY OTHER PROVISION OF LAW. 30 2. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF THREE PERSONS, INCLUD- 31 ING THE GOVERNOR, THE COMPTROLLER AND A THIRD PERSON WHO SHALL BE JOINT- 32 LY APPOINTED BY THE GOVERNOR AND THE COMPTROLLER. THE TERM OF OFFICE OF 33 THE MEMBERS OF THE BOARD SHALL BE THE SAME AS THE TERMS OF OFFICE OF THE 34 GOVERNOR AND THE COMPTROLLER. IF THE THIRD MEMBER OF THE BOARD RESIGNS, 35 BECOMES INCAPACITATED, IS JOINTLY REMOVED BY THE GOVERNOR AND THE COMP- 36 TROLLER OR IS OTHERWISE UNABLE TO SERVE, THE GOVERNOR AND THE COMP- 37 TROLLER SHALL JOINTLY APPOINT A SUCCESSOR TO SERVE THE REMAINDER OF THE 38 UNEXPIRED TERM. THE GOVERNOR SHALL BE THE CHAIRPERSON OF THE BOARD. 39 THE BOARD SHALL ACT BY MAJORITY OF ALL OF THE MEMBERS OF THE BOARD, 40 EXCEPT THAT CHANGING THE DEBT AFFORDABILITY LEVEL PREVIOUSLY ESTABLISHED 41 BY THE BOARD SHALL REQUIRE UNANIMOUS APPROVAL BY ALL THE MEMBERS OF THE 42 BOARD. ANY ACTION BY THE BOARD SHALL BE EVIDENCED BY A CERTIFICATION 43 THEREOF SIGNED BY A MAJORITY OF ALL THE MEMBERS, EXCEPT THAT ALL MEMBERS 44 SHALL SIGN A CERTIFICATION OF ANY ACTION REQUIRING UNANIMOUS APPROVAL. 45 EACH MEMBER OF THE BOARD SHALL BE ENTITLED TO DESIGNATE A REPRESENTATIVE 46 TO ATTEND MEETINGS OF THE BOARD IN HIS OR HER PLACE AND TO VOTE OR 47 OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER ABSENCE. NOTICE OF SUCH 48 DESIGNATION SHALL BE FURNISHED IN WRITING TO THE BOARD BY THE DESIGNAT- 49 ING MEMBER. A REPRESENTATIVE SHALL SERVE AT THE PLEASURE OF THE DESIG- 50 NATING MEMBER DURING THE MEMBER'S TERM OF OFFICE. A REPRESENTATIVE SHALL 51 NOT BE AUTHORIZED TO DELEGATE ANY OF HIS OR HER DUTIES OR POWERS TO ANY 52 OTHER PERSON. 53 3. THE THIRD MEMBER JOINTLY APPOINTED BY THE GOVERNOR AND THE COMP- 54 TROLLER SHALL BE A FINANCIAL EXPERT WITH EXPERIENCE IN PUBLIC FINANCE, 55 ECONOMICS, ACADEMICS OR GOVERNMENT. S. 2392 4 1 4. ALL THE MEMBERS OF THE BOARD AND THEIR REPRESENTATIVES SHALL BE 2 ENTITLED TO REIMBURSEMENT FOR THEIR ACTUAL AND NECESSARY EXPENSES 3 INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES PURSUANT TO THIS 4 SECTION OR ANY OTHER PROVISION OF LAW. 5 5. THE BOARD SHALL MEET SEMI-ANNUALLY OR MORE FREQUENTLY AT THE CALL 6 OF THE CHAIRPERSON. MEETINGS OF THE BOARD SHALL BE SUBJECT TO THE OPEN 7 MEETINGS LAW ESTABLISHED BY ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW. 8 S 67-D. POWERS AND DUTIES OF THE BOARD. 1. THE BOARD SHALL HAVE THE 9 POWER AND THE DUTY TO (A) ANNUALLY DETERMINE THE TOTAL DEBT LIMIT OF THE 10 STATE BY CALCULATING THE DOLLAR AMOUNT EQUIVALENT TO FIVE PERCENT OF THE 11 TOTAL PERSONAL INCOME OF THE STATE, AS DEFINED IN SECTION SIXTY-SEVEN-A 12 OF THIS ARTICLE, AND (B) ANNUALLY PRESCRIBE A DEBT AFFORDABILITY LEVEL, 13 WHICH ON AND AFTER APRIL FIRST, TWO THOUSAND NINETEEN SHALL BE NO HIGHER 14 THAN THE TOTAL DEBT LIMIT OF THE STATE. 15 2. ON OR BEFORE OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL 16 DETERMINE THE TOTAL DEBT LIMIT OF THE STATE FOR THE NEXT FISCAL YEAR, 17 AND REPORT THE LIMIT TO THE TEMPORARY PRESIDENT OF THE SENATE, THE 18 SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER OF 19 THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON AND RANKING MINORITY 20 MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE THE SAME 21 DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT. 22 3. ON OR BEFORE OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL 23 PRESCRIBE THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE NEXT FISCAL 24 YEAR, AND REPORT THE LEVEL TO THE TEMPORARY PRESIDENT OF THE SENATE, THE 25 SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER OF 26 THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON AND RANKING MINORITY 27 MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE THE SAME 28 DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LEVEL. WITHIN 29 THE LIMITATION ESTABLISHED BY THE TOTAL DEBT LIMIT OF THE STATE, THE 30 DEBT AFFORDABILITY LEVEL OF THE STATE SHALL BE BASED UPON THE BOARD'S 31 EVALUATION OF THE TOTAL AMOUNT OF ADDITIONAL DEBT THAT MAY BE INCURRED 32 AND THE TOTAL DEBT SERVICE OBLIGATIONS AND RELATED PAYMENTS THAT MAY BE 33 UNDERTAKEN BY THE STATE WITHOUT OVERBURDENING PRESENT OR FUTURE GENER- 34 ATIONS, TAKING INTO ACCOUNT THE CURRENT AND EXPECTED REVENUES AND 35 EXPENSES OF THE STATE, THE CURRENT AND EXPECTED TRENDS AFFECTING THE 36 ECONOMY OF THE STATE, AND SUCH OTHER FACTORS AS THE BOARD DEEMS RELE- 37 VANT. IN ADDITION TO THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE 38 NEXT FISCAL YEAR, THE BOARD'S REPORT TO THE LEGISLATURE AND ANNOUNCEMENT 39 TO THE PUBLIC SHALL INCLUDE THE BOARD'S FORECAST OF THE DEBT AFFORDABIL- 40 ITY LEVELS EXPECTED FOR THE TWO SUCCEEDING FISCAL YEARS. FOLLOWING THE 41 BOARD'S ESTABLISHMENT OF A DEBT AFFORDABILITY LEVEL OF THE STATE FOR A 42 FISCAL YEAR, THERE SHALL BE NO CHANGE IN SUCH LEVEL (OTHER THAN A DEBT 43 AFFORDABILITY LEVEL FORECAST FOR A FISCAL YEAR AFTER THE NEXT FISCAL 44 YEAR) EXCEPT WITH THE UNANIMOUS APPROVAL OF THE MEMBERS OF THE BOARD. 45 4. THE BOARD SHALL HAVE THE POWER AND IT SHALL BE ITS DUTY TO MAKE 46 RECOMMENDATIONS TO THE GOVERNOR AND THE LEGISLATURE OF POLICIES TO 47 GOVERN THE ISSUANCE OF ALL STATE FUNDED DEBT AND OTHER CAPITAL FINANCING 48 MATTERS. 49 5. THE BOARD SHALL ADOPT POLICY STANDARDS RELATING TO THE ISSUANCE OF 50 ALL STATE FUNDED DEBT AND FOR CAPITAL FINANCING. SUCH STANDARDS SHALL 51 REQUIRE THE UNANIMOUS APPROVAL OF ALL THREE MEMBERS OF THE BOARD, AND 52 SHALL COVER, AMONG OTHER ITEMS, THE FOLLOWING: 53 (A) STRUCTURES FOR STATE FUNDED DEBT, SUCH AS RATE OF AMORTIZATION OF 54 PRINCIPAL, THE USE OF PREMIUMS AND CAPITALIZATION OF INTEREST ON STATE 55 FUNDED DEBT; S. 2392 5 1 (B) CRITERIA FOR REFUNDING OUTSTANDING STATE FUNDED DEBT INCLUDING, 2 BUT NOT LIMITED TO, SUCH MATTERS AS EXTENSION OF THE TERM OF OUTSTANDING 3 DEBT, PRESENT VALUE SAVINGS AND DISTRIBUTION OF ACTUAL SAVINGS; 4 (C) THE USE OF CREDIT ENHANCEMENTS, DERIVATIVE INSTRUMENTS AND VARI- 5 ABLE OR FIXED RATE DEBT OBLIGATIONS WITH RESPECT TO STATE FUNDED DEBT; 6 (D) GOALS FOR THE PROPORTION OF STATE CAPITAL SPENDING TO BE FINANCED 7 WITH DEBT AND THE PROPORTION TO BE FINANCED WITH CURRENT APPROPRIATIONS; 8 (E) THE METHOD OF SALE, SUCH AS COMPETITIVE OR NEGOTIATED, OF STATE 9 FUNDED DEBT OBLIGATIONS; 10 (F) CRITERIA TO BE USED IN SELECTING STATE FUNDED DEBT OBLIGATIONS TO 11 BE RETIRED OR DEFEASED BY THE USE OF THE PORTION OF ANY CASH SURPLUS, 12 DETERMINED PURSUANT TO SECTION SIXTY-SEVEN-B OF THIS ARTICLE, THAT SHALL 13 BE DEDICATED TO THE EXCLUSIVE PURPOSE OF REDUCING THE AGGREGATE AMOUNT 14 OF OUTSTANDING STATE FUNDED DEBT OBLIGATIONS; 15 (G) THE DEFINITION OF NON-RECURRING REVENUES WHICH SHALL BE USED FOR 16 THE FUNDING OF CAPITAL PROJECTS WHICH HAVE BEEN AUTHORIZED BY LAW TO BE 17 FINANCED THROUGH THE ISSUANCE OF STATE FUNDED DEBT OR FOR THE PURPOSE OF 18 RETIRING OR DEFEASING BONDS OR NOTES PREVIOUSLY ISSUED; 19 (H) SUCH OTHER POLICY MATTERS RELATING TO THE ISSUANCE OF STATE FUNDED 20 DEBT AS THE BOARD MAY DETERMINE TO BE APPROPRIATE; AND 21 (I) POLICY STANDARDS TO BE FOLLOWED BY STATE AUTHORITIES, AS DEFINED 22 IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, IN RELATION TO THE ISSU- 23 ANCE BY SUCH PUBLIC AUTHORITIES OF DEBT OBLIGATIONS OTHER THAN CONDUIT 24 DEBT OBLIGATIONS. IN THE DISCRETION OF THE COMPTROLLER, SUCH POLICY 25 STANDARDS MAY BE APPLIED BY THE COMPTROLLER IN THE EXERCISE OF HIS OR 26 HER CONSTITUTIONAL AUTHORITY TO SUPERVISE THE ACCOUNTS OF PUBLIC AUTHOR- 27 ITIES, AS DEFINED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, AND 28 POLITICAL SUBDIVISIONS. 29 THE BOARD SHALL ANNUALLY REVIEW THE POLICY STANDARDS AND ADOPT SUCH 30 CHANGES OR ADDITIONS AS IT DEEMS ADVISABLE ON OR BEFORE THE ANNIVERSARY 31 DATE OF ITS ORIGINAL STANDARDS. 32 S 67-E. COMPTROLLER'S DUTIES WITH RESPECT TO BOARD. THE COMPTROLLER 33 SHALL COLLECT AND ANALYZE DATA WITH RESPECT TO OUTSTANDING STATE FUNDED 34 DEBT AND, AT LEAST ANNUALLY, ON OR BEFORE THE ONE HUNDRED FIFTIETH DAY 35 FOLLOWING THE END OF THE STATE FISCAL YEAR, REPORT TO THE BOARD, THE 36 GOVERNOR, THE TEMPORARY PRESIDENT AND THE MINORITY LEADER OF THE SENATE, 37 AND THE SPEAKER AND MINORITY LEADER OF THE ASSEMBLY ON THE CONDITION OF 38 STATE FUNDED DEBT. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, 39 THE AMOUNT OF STATE FUNDED DEBT OUTSTANDING, THE DIFFERENT ISSUERS AND 40 CATEGORIES OF SUCH DEBT, AND ANY DIFFERENCES IN CREDIT RATINGS AMONG 41 CATEGORIES AND ISSUES. 42 S 67-F. LIMITATIONS ON STATE FUNDED DEBT AND STATE DEBT SERVICE 43 PAYMENTS. 1. NO ADDITIONAL STATE FUNDED DEBT SHALL BE INCURRED AFTER 44 APRIL FIRST, TWO THOUSAND NINETEEN IF THE TOTAL PRINCIPAL AMOUNT OF SUCH 45 ADDITIONAL DEBT, TOGETHER WITH THE TOTAL PRINCIPAL AMOUNT OF STATE FUND- 46 ED DEBT ALREADY OUTSTANDING AND THE TOTAL PRINCIPAL AMOUNT OF STATE 47 FUNDED DEBT ALREADY AUTHORIZED BUT NOT YET INCURRED, IS EQUAL TO OR 48 GREATER THAN THE TOTAL DEBT LIMIT OF THE STATE AS DETERMINED BY THE 49 BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE. 50 2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN ACCORDANCE WITH 51 SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT 52 INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI- 53 TUTION, AND REFUNDING DEBT, NO STATE FUNDED DEBT SHALL BE INCURRED 54 EXCEPT TO FINANCE A CAPITAL PURPOSE. 55 3.(A) ALL DEBT SUBJECT TO THE PROVISIONS OF THIS SECTION (I) SHALL, 56 EXCEPT FOR REFUNDING DEBT, BE INCURRED ONLY FOR A CAPITAL PURPOSE S. 2392 6 1 AUTHORIZED BY LAW, AND (II) SHALL, IF INCURRED ON OR AFTER THE FIRST DAY 2 OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE EFFECTIVE 3 DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITU- 4 TION, BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER. 5 (B) ON AND AFTER APRIL FIRST, TWO THOUSAND FOURTEEN, NO DEBT OBLI- 6 GATION SUBJECT TO THE PROVISIONS OF THIS SECTION SHALL BE ISSUED UNLESS 7 THE COMPTROLLER DETERMINES THAT SUCH ISSUANCE IS WITHIN THE DEBT AFFORD- 8 ABILITY LEVEL FOR THAT FISCAL YEAR ESTABLISHED BY THE DEBT MANAGEMENT 9 BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE. ON OR AFTER 10 APRIL FIRST, TWO THOUSAND NINETEEN, NO SUCH DEBT OBLIGATION SHALL BE 11 ISSUED UNLESS THE COMPTROLLER DETERMINES THAT SUCH ISSUANCE IS WITHIN 12 (I) THE LIMIT ON STATE DEBT AND (II) THE DEBT AFFORDABILITY LEVEL ESTAB- 13 LISHED BY THE BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE. 14 4. NO STATE FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION 15 WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT 16 FINANCED BY SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF THIS CHAP- 17 TER. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO 18 STATE FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH A 19 FINAL MATURITY OF MORE THAN THIRTY YEARS. 20 5. DURING EACH FISCAL YEAR BEGINNING ON OR AFTER THE EFFECTIVE DATE OF 21 THIS SECTION, UP TO AND INCLUDING ANY FISCAL YEAR ENDING IN TWO THOUSAND 22 EIGHTEEN NO NEW STATE FUNDED DEBT SHALL BE INCURRED IN AN AGGREGATE 23 PRINCIPAL AMOUNT EXCEEDING NINETY-FIVE PERCENT OF THE AGGREGATE PRINCI- 24 PAL AMOUNT OF NEW STATE FUNDED DEBT INCURRED IN THE PRECEDING FISCAL 25 YEAR. 26 6. NO STATE FUNDED DEBT OUTSTANDING ON THE EFFECTIVE DATE OF THIS 27 SUBDIVISION SHALL BE REFUNDED UNLESS (A) SUCH REFUNDING IS CONDUCTED IN 28 ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION 29 APPLIED, AND (B) ANY SUCH REFUNDING OBLIGATIONS ISSUED ON OR AFTER THE 30 FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE 31 EFFECTIVE DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE 32 CONSTITUTION IMPOSING A LIMIT ON THE TOTAL AMOUNT OF STATE DEBT, ARE 33 ISSUED BY THE COMPTROLLER. SUCH OUTSTANDING DEBT OBLIGATIONS AND THE 34 DEBT SERVICE EXPENSES, DIRECT OR INDIRECT, REQUIRED FOR SUCH OBLIGATIONS 35 SHALL BE INCLUDED IN THE DETERMINATION OF THE DEBT LIMIT AND THE DEBT 36 AFFORDABILITY LEVEL PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE. 37 7. DEBT OBLIGATIONS ISSUED TO REFUND OUTSTANDING STATE FUNDED DEBT, 38 REGARDLESS OF WHETHER SUCH OUTSTANDING DEBT WAS INCURRED PRIOR TO THE 39 EFFECTIVE DATE OF THIS SUBDIVISION, SHALL NOT BE COUNTED FOR THE 40 PURPOSES OF THE DEBT LIMIT AND THE DEBT AFFORDABILITY LEVEL DETERMINED 41 PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE IF SUCH REFUNDING IS 42 CONDUCTED IN ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE 43 CONSTITUTION APPLIED. DEBT SERVICE EXPENSES ON DEBT THAT HAS BEEN 44 REFUNDED IN ACCORDANCE WITH SECTION THIRTEEN OF ARTICLE SEVEN OF THE 45 CONSTITUTION SHALL BE EXCLUDED FOR THE DEBT AFFORDABILITY LEVEL TO THE 46 EXTENT THAT SUCH DEBT SERVICE EXPENSES ARE TO BE PAID FROM AN ESCROW 47 FUND ESTABLISHED WITH PROCEEDS OF THE REFUNDING DEBT, BUT DEBT SERVICE 48 EXPENSES ON THE REFUNDING DEBT SHALL BE INCLUDED EXCEPT TO THE EXTENT 49 THAT SUCH DEBT SERVICE EXPENSES ARE TO BE PAID FROM SUCH AN ESCROW FUND. 50 FOR THE PURPOSES OF THIS SUBDIVISION AND SUBDIVISIONS SIX AND EIGHT OF 51 THIS SECTION, ANY REFUNDING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL 52 MATURITY OF THE DEBT BEING REFUNDED SHALL BE DEEMED TO BE IN COMPLIANCE 53 WITH THE PROVISIONS OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE 54 SEVEN OF THE CONSTITUTION MADE APPLICABLE BY THIS SUBDIVISION IF THERE 55 IS AN ACTUAL DEBT SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT 56 OF THE ISSUANCE OF THE REFUNDING DEBT. S. 2392 7 1 8. AFTER THE EFFECTIVE DATE OF THIS SECTION THE STATE SHALL NOT, 2 EXCEPT AS SPECIFICALLY AUTHORIZED BY A PROVISION OF THE CONSTITUTION 3 OTHER THAN SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION, AGREE TO 4 MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETHER OR NOT SUBJECT TO APPRO- 5 PRIATION, THAT ARE TO BE AVAILABLE TO PAY DEBT SERVICE ON ANY DEBT 6 INCURRED BY A MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR OTHER PUBLIC 7 OR PRIVATE CORPORATION OR ANY OTHER ENTITY, FOR ANY PURPOSE, IF SUCH 8 PAYMENTS ARE EXPECTED TO BE USED TO PAY DEBT SERVICE ONLY IF OTHER 9 SOURCES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE ARE INADEQUATE. 10 OUTSTANDING DEBT THAT WOULD BE PROHIBITED BY THIS SUBDIVISION IF SUCH 11 DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION MAY 12 BE REFUNDED BY THE ENTITY THAT INCURRED THE OUTSTANDING DEBT PROVIDED 13 THAT ALL PROVISIONS OF SUBDIVISIONS SIX AND SEVEN OF THIS SECTION ARE 14 COMPLIED WITH EXCEPT THE REQUIREMENT THAT SUCH REFUNDING DEBT OBLI- 15 GATIONS BE ISSUED BY THE COMPTROLLER, AND REFUNDING DEBT SERVICE 16 EXPENSES SHALL ONLY BE INCLUDED IN DEBT AFFORDABILITY DETERMINATIONS IF 17 DEBT SERVICE EXPENSES ON THE DEBT BEING REFUNDED WOULD HAVE BEEN 18 INCLUDED. 19 S 2. Subdivision 2 of section 68-a of the state finance law, as 20 amended by chapter 79 of the laws of 2010, is amended to read as 21 follows: 22 2. "Authorized purpose" for purposes of this article and section nine- 23 ty-two-z of this chapter shall mean any [purposes] PURPOSE for which 24 [state-supported] STATE FUNDED debt, as defined by section sixty-seven-a 25 of this chapter, may BE or has been issued except debt for which the 26 state is constitutionally obligated thereunder to pay debt service and 27 related expenses, and except (a) as authorized in paragraph (b) of 28 subdivision one of section three hundred eighty-five of the public 29 authorities law, (b) as authorized for the department of health of the 30 state of New York facilities as specified in paragraph a of subdivision 31 two of section sixteen hundred eighty of the public authorities law, (c) 32 state university of New York dormitory facilities as specified in subdi- 33 vision eight of section sixteen hundred seventy-eight of the public 34 authorities law, and (d) as authorized for mental health services facil- 35 ities by section nine-a of section one of chapter three hundred ninety- 36 two of the laws of nineteen hundred seventy-three constituting the New 37 York state medical care facilities [financing] FINANCE AGENCY act. 38 Notwithstanding the provisions of clause (d) of this subdivision, for 39 the period April first, two thousand nine through March thirty-first, 40 two thousand eleven, mental health services facilities, as authorized by 41 section nine-a of section one of chapter three hundred ninety-two of the 42 laws of nineteen hundred seventy-three constituting the New York state 43 medical care facilities [financing] FINANCE AGENCY act, shall constitute 44 an authorized purpose. 45 S 3. Subdivision 6 of section 68-c of the state finance law, as added 46 by section 2 of part I of chapter 383 of the laws of 2001, is amended 47 and a new subdivision 7 is added to read as follows: 48 6. Any resolution or other agreement authorizing revenue bonds under 49 this article shall reserve the right of the state, upon amendment OF 50 SECTION ELEVEN OF ARTICLE SEVEN of the New York state constitution 51 allowing the issuance or assumption of bonds, notes or other obligations 52 secured by revenues, which may include the revenues securing revenue 53 bonds of authorized issuers (a) to assume, in whole or in part, revenue 54 bonds of the authorized issuers, (b) to extinguish the existing lien of 55 such resolution, or other agreement and (c) to substitute security for 56 the revenue bonds of the authorized issuers, in each case only so long S. 2392 8 1 as such assumption, extinguishment or substitution is done in accordance 2 with such resolution or other agreement AND SUCH CONSTITUTIONAL AMEND- 3 MENT. 4 7. ON AND AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT 5 LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT OF SECTION ELEV- 6 EN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT ON THE TOTAL 7 AMOUNT OF STATE DEBT, NO REVENUE BONDS SHALL BE ISSUED. 8 S 4. Section 97-rrr of the state finance law, as amended by section 45 9 of part H of chapter 56 of the laws of 2000, is amended to read as 10 follows: 11 S 97-rrr. Debt reduction reserve fund. 1. There is hereby established 12 in the joint custody of the comptroller and the commissioner of taxation 13 and finance a fund to be known as the debt reduction reserve fund. [Such 14 fund shall be established as a capital projects fund.] 15 2. Such fund shall consist of all monies credited or transferred ther- 16 eto from the general fund or from any other fund or sources pursuant to 17 law. 18 3. The monies in such fund, following appropriation by the legislature 19 and allocation by the director of the budget, shall be available [for 20 the following purposes: 21 (a) for the payment of principal, interest, and related expenses on 22 general obligation bonds, lease purchase payments, or special contractu- 23 al obligation payments, or] ONLY for the [purposes] PURPOSE of retiring 24 or defeasing bonds OR NOTES previously issued, including any accrued 25 interest thereon, for any [state-supported bonding program or programs, 26 and; 27 (b) for the funding of capital projects, equipment acquisitions, or 28 similar expenses which have been authorized by law to be financed 29 through the issuance of bonds, notes, or other obligations] STATE FUNDED 30 DEBT. 31 S 5. Section 24 of the state finance law is amended by adding a new 32 subdivision 6 to read as follows: 33 6. THE BUDGET BILLS SHALL INCLUDE AN APPROPRIATION OF THE AVAILABLE 34 BALANCE FROM THE DEBT REDUCTION RESERVE FUND CREATED BY SECTION NINETY- 35 SEVEN-RRR OF THIS CHAPTER, AS ADDED BY SECTION THIRTY-SIX OF PART B OF 36 CHAPTER FIFTY-SEVEN OF THE LAWS OF NINETEEN HUNDRED NINETY-EIGHT, TO BE 37 USED EXCLUSIVELY FOR THE PURPOSE OF RETIRING OR DEFEASING STATE FUNDED 38 DEBT OBLIGATIONS IN ACCORDANCE WITH THE CRITERIA ESTABLISHED BY THE NEW 39 YORK STATE DEBT MANAGEMENT BOARD. 40 S 6. Subdivision 1 of section 51 of the public authorities law, as 41 added by chapter 838 of the laws of 1983, paragraph k as added by chap- 42 ter 506 of the laws of 1995, paragraph l as added by chapter 468 of the 43 laws of 2004, paragraph m as added by section 10 of part E of chapter 44 494 of the laws of 2009 and paragraph n as added by chapter 533 of the 45 laws of 2010, is amended to read as follows: 46 1. [The] SUBJECT TO (A) THE COMPTROLLERS' CONSTITUTIONAL AUTHORITY TO 47 SUPERVISE THE ACCOUNTS OF PUBLIC AUTHORITIES, (B) THE COMPTROLLER'S 48 STATUTORY AUTHORITY TO APPROVE THE TERMS AND CONDITIONS OF DEBT OBLI- 49 GATIONS ISSUED BY PUBLIC AUTHORITIES, AND (C) THE POLICY STANDARDS 50 ESTABLISHED BY THE NEW YORK STATE DEBT MANAGEMENT BOARD PURSUANT TO 51 SECTION SIXTY-SEVEN-D OF THE STATE FINANCE LAW IN RELATION TO PUBLIC 52 AUTHORITY DEBT, THE New York state public authorities control board 53 shall have the power and it shall be its duty to receive applications 54 for approval of the financing and construction of any project proposed 55 by any [of the following state public benefit corporations: 56 a. New York state environmental facilities corporation S. 2392 9 1 b. New York state housing finance agency 2 c. New York state medical care facilities finance agency 3 d. Dormitory authority 4 e. New York state urban development corporation 5 f. Job development authority 6 g. Battery park city authority 7 h. New York state project finance agency 8 i. State of New York mortgage agency 9 j. New York state energy research and development authority 10 k. Long Island Power Authority 11 l. Albany Convention Center Authority 12 m. State of New York Municipal Bond Bank Agency for bonds issued 13 pursuant to section two thousand four hundred thirty-six-b of this chap- 14 ter 15 n. North Country Power Authority] CLASS A OR CLASS B PUBLIC AUTHORITY, 16 AS DEFINED IN SECTION TWO OF THIS CHAPTER. 17 Any application made concerning a project shall include the terms, 18 conditions and dates of the repayment of state appropriations authorized 19 by law pursuant to a repayment agreement, AND A CURRENT LISTING OF ALL 20 OUTSTANDING DEBT AND DEBT SERVICE OBLIGATIONS OF THE APPLICANT. Any 21 subsidiary of, or corporation with the same members or directors as, a 22 public benefit corporation subject to the provisions of this section 23 shall also be subject to the provisions of this section. All applica- 24 tions and submissions to the board required to be made by a subsidiary 25 shall be made on behalf of such subsidiary by the public benefit corpo- 26 ration which created the subsidiary. No public benefit corporation 27 subject to the provisions of this section shall make any commitment, 28 enter into any agreement or incur any indebtedness for the purpose of 29 acquiring, constructing, or financing any project unless prior approval 30 has been received from the board by such public benefit corporation as 31 provided herein. 32 S 7. Section 51 of the public authorities law is amended by adding a 33 new subdivision 6 to read as follows: 34 6. NOT LATER THAN NINETY DAYS AFTER THE END OF EACH FISCAL YEAR, THE 35 BOARD SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER, THE TEMPORARY PRES- 36 IDENT AND THE MINORITY LEADER OF THE SENATE, AND THE SPEAKER AND THE 37 MINORITY LEADER OF THE ASSEMBLY AN ANNUAL REPORT DETAILING: (A) THE 38 AGGREGATE AMOUNT OF DEBT APPROVED BY THE BOARD DURING SUCH FISCAL YEAR; 39 (B) A LIST OF THE INDIVIDUAL PROJECTS APPROVED BY THE BOARD FOR EACH 40 PUBLIC AUTHORITY DURING SUCH FISCAL YEAR; AND 41 (C) THE TOTAL AMOUNT OF NEW DEBT OBLIGATIONS THE BOARD HAS APPROVED 42 DURING SUCH FISCAL YEAR FOR ISSUANCE BY EACH PUBLIC AUTHORITY. 43 THE BOARD SHALL PUBLISH SUCH REPORT BY POSTING SUCH REPORT ON THE 44 BOARD'S INTERNET WEBSITE. EACH SUCH REPORT POSTED ON THE BOARD'S INTER- 45 NET WEBSITE SHALL BE MAINTAINED ON SUCH WEBSITE FOR AT LEAST TWELVE 46 MONTHS OR UNTIL THE NEXT SUCH REPORT IS POSTED ON SUCH WEBSITE, WHICHEV- 47 ER IS LATER. THE BOARD SHALL ISSUE A NEWS RELEASE ANNOUNCING SUCH REPORT 48 TO NEWSPAPERS OF GENERAL CIRCULATION AND RADIO AND TELEVISION NEWS 49 BUREAUS WITHIN THE STATE. 50 S 8. Subdivision 2 of section 365 of the public authorities law, as 51 separately amended by sections 349 and 381 of chapter 190 of the laws of 52 1990, is amended to read as follows: 53 2. The notes and bonds shall be authorized by resolution of the board, 54 shall bear such date or dates and mature at such time or times, in the 55 case of notes and any renewals thereof within five years after their 56 respective dates and in the case of bonds not exceeding forty years from S. 2392 10 1 their respective dates, as such resolution or resolutions may provide. 2 The notes and bonds shall bear interest at such rate or rates, be in 3 such denominations, be in such form, either coupon or registered, carry 4 such registration privileges, be executed in such manner, be payable in 5 such medium of payment, at such place or places, and be subject to such 6 terms of redemption as such resolution or resolutions may provide. Bonds 7 and notes shall be sold by the authority, at public or private sale, at 8 such price or prices as the authority may determine. Bonds and notes of 9 the authority shall not be sold by the authority at private sale unless 10 such sale and the terms thereof have been approved in writing by the 11 comptroller, where such sale is not to the comptroller, or by the direc- 12 tor of the budget, where such sale is to the comptroller. [Bonds and 13 notes sold at public sale shall be sold by the comptroller, as agent of 14 the authority, in such manner as the authority, with the approval of the 15 comptroller, shall determine.] 16 S 9. This act shall take effect immediately; provided, however, that 17 paragraph a of subdivision 3 and subdivision 6 of section 67-f of the 18 state finance law, as added by section one of this act, and section 19 three of this act, shall take effect on the same date as a concurrent 20 resolution of the Senate and Assembly entitled "proposing amendments to 21 article 7 of the constitution, in relation to the authorization of debt 22 in times of public emergency, a limit on the total amount of state debt, 23 the establishment of a debt management board and refunding of state 24 debts", takes effect.