STATE OF NEW YORK ________________________________________________________________________ 4004 2025-2026 Regular Sessions IN ASSEMBLY January 30, 2025 ___________ Introduced by M. of A. RA -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law and the state finance law, in relation to requiring legislative oversight of debt issuances with a maturity of more than thirty years; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 386-a of the public authorities law, as added by 2 section 46 of part U of chapter 59 of the laws of 2012 and subdivision 1 3 as amended by section 55 of part XX of chapter 56 of the laws of 2024, 4 is amended to read as follows: 5 § 386-a. Financing of metropolitan transportation authority (MTA) 6 transportation facilities. 1. Notwithstanding any other provision of law 7 to the contrary, the authority, the dormitory authority and the urban 8 development corporation are hereby authorized to issue bonds or notes in 9 one or more series for the purpose of assisting the metropolitan trans- 10 portation authority in the financing of transportation facilities as 11 defined in subdivision seventeen of section twelve hundred sixty-one of 12 this chapter or other capital projects. The aggregate principal amount 13 of bonds authorized to be issued pursuant to this section shall not 14 exceed twelve billion five hundred fifteen million eight hundred fifty- 15 six thousand dollars $12,515,856,000, excluding bonds issued to fund one 16 or more debt service reserve funds, to pay costs of issuance of such 17 bonds, and to refund or otherwise repay such bonds or notes previously 18 issued. Such bonds and notes of the authority, the dormitory authority 19 and the urban development corporation shall not be a debt of the state, 20 and the state shall not be liable thereon, nor shall they be payable out 21 of any funds other than those appropriated by the state to the authori- 22 ty, the dormitory authority and the urban development corporation for 23 principal, interest, and related expenses pursuant to a service contract EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05922-01-5
A. 4004 2 1 and such bonds and notes shall contain on the face thereof a statement 2 to such effect. Except for purposes of complying with the internal 3 revenue code, any interest income earned on bond proceeds shall only be 4 used to pay debt service on such bonds. Notwithstanding any other 5 provision of law to the contrary, including the limitations contained in 6 subdivision four of section sixty-seven-b of the state finance law, (A) 7 any bonds and notes issued [prior to] between April first, two thousand 8 [twenty-seven] twenty-five and March thirty-first, two thousand twenty- 9 six pursuant to this section may be issued with a maximum maturity of 10 fifty years, and (B) any bonds issued to refund such bonds and notes may 11 be issued with a maximum maturity of fifty years from the respective 12 date of original issuance of such bonds and notes. 13 2. If the authority, the dormitory authority or the urban development 14 corporation determines that issuing debt with a final maturity exceeding 15 thirty years is necessary, it shall: 16 (A) Prepare a comprehensive cost-benefit analysis demonstrating the 17 public benefit of such extended maturity debt. Such cost-benefit analy- 18 sis shall include the: 19 (i) projected cash flows over the life of the debt; 20 (ii) comparison of total costs between the proposed extended maturity 21 and a thirty year alternative; 22 (iii) potential risks and mitigation strategies; and 23 (iv) impact on the authority's overall debt outstanding, debt service 24 and credit rating, and if applicable, the impact on the state's overall 25 debt outstanding, debt service and credit rating. 26 (B) Submit such analysis described in paragraph (A) of this subdivi- 27 sion, along with a detailed justification, to: 28 (i) the chair and ranking member of the assembly ways and means 29 committee; 30 (ii) the chair and ranking member of the senate finance committee; 31 (iii) the director of the division of the budget; and 32 (iv) the state comptroller. 33 (C) Obtain written approval from the director of the division of the 34 budget and the state comptroller. 35 (D) After obtaining approval from the director of the division of the 36 budget and the state comptroller pursuant to paragraph (C) of this 37 subdivision, submit a request for legislative approval to issue such 38 debt to both houses of the legislature, and shall comply with the 39 following: 40 (i) such request shall include the comprehensive cost-benefit analysis 41 prepared pursuant to paragraph (A) of this subdivision, all supporting 42 documentation, and the approvals from the director of the division of 43 the budget and the state comptroller. 44 (ii) both the assembly and senate shall pass a resolution approving 45 the issuance of such state-supported debt with a maturity exceeding 46 thirty years by a simple majority vote. If either house fails to approve 47 such resolution within thirty days of submission, the request shall be 48 deemed denied. 49 (iii) the authority, the dormitory authority or the urban development 50 corporation shall not proceed with the issuance of the debt at the 51 extended maturity until it receives approval from both houses of the 52 legislature. 53 (E) Nothing in this section shall supersede the authority of the 54 public authorities control board as outlined in article one-A of this 55 chapter.
A. 4004 3 1 3. Notwithstanding any other provision of law to the contrary, in 2 order to assist the authority, the dormitory authority and the urban 3 development corporation in undertaking the financing of such transporta- 4 tion facilities projects, the director of the budget is hereby author- 5 ized to enter into one or more service contracts with the authority, the 6 dormitory authority and the urban development corporation, none of which 7 shall exceed thirty years in duration, upon such terms and conditions as 8 the director of the budget and the authority, the dormitory authority 9 and the urban development corporation agree, so as to annually provide 10 to the authority, the dormitory authority and the urban development 11 corporation, in the aggregate, a sum not to exceed the principal, inter- 12 est, and related expenses required for such bonds and notes. Any service 13 contract entered into pursuant to this section shall provide that the 14 obligation of the state to pay the amount therein provided shall not 15 constitute a debt of the state within the meaning of any constitutional 16 or statutory provision and shall be deemed executory only to the extent 17 of monies available and that no liability shall be incurred by the state 18 beyond the monies available for such purpose, subject to annual appro- 19 priation by the legislature. Any such service contract or any payments 20 made or to be made thereunder may be assigned and pledged by the author- 21 ity, the dormitory authority and the urban development corporation as 22 security for such bonds and notes, as authorized by this section. 23 § 2. Subdivision 4 of section 67-b of the state finance law, as added 24 by chapter 59 of the laws of 2000, is amended to read as follows: 25 4. Notwithstanding any other provision of law to the contrary, no 26 state-supported debt shall be issued with a final maturity of more than 27 thirty years. If a public authority determines that issuing debt with a 28 final maturity exceeding thirty years is necessary, it shall: 29 (a) Prepare a comprehensive cost-benefit analysis demonstrating the 30 public benefit of such extended maturity debt. Such cost-benefit analy- 31 sis shall include the: 32 (i) projected cash flows over the life of the debt; 33 (ii) comparison of total costs between the proposed extended maturity 34 and a thirty year alternative; 35 (iii) potential risks and mitigation strategies; and 36 (iv) impact on the authority's overall debt outstanding, debt service 37 and credit rating, and if applicable, the impact on the state's overall 38 debt outstanding, debt service and credit rating. 39 (b) Submit such analysis described in paragraph (a) of this subdivi- 40 sion, along with a detailed justification, to: 41 (i) the chair and ranking member of the assembly ways and means 42 committee; 43 (ii) the chair and ranking member of the senate finance committee; 44 (iii) the director of the division of the budget; and 45 (iv) the state comptroller. 46 (c) Obtain written approval from the director of the division of the 47 budget and the state comptroller. 48 (d) After obtaining approval from the director of the division of the 49 budget and the state comptroller pursuant to paragraph (c) of this 50 subdivision, submit a request for legislative approval to issue such 51 debt to both houses of the legislature, and shall comply with the 52 following: 53 (i) such request shall include the comprehensive cost-benefit analysis 54 prepared pursuant to paragraph (a) of this subdivision, all supporting 55 documentation, and the approvals from the director of the division of 56 the budget and the state comptroller.
A. 4004 4 1 (ii) both the assembly and senate shall pass a resolution approving 2 the issuance of such state-supported debt with a maturity exceeding 3 thirty years by a simple majority vote. If either house fails to approve 4 such resolution within thirty days of submission, the request shall be 5 deemed denied. 6 (iii) a public authority shall not proceed with the issuance of the 7 debt at the extended maturity until it receives approval from both hous- 8 es of the legislature. 9 (e) Nothing in this section shall supersede the authority of the 10 public authorities control board as outlined in article one-A of the 11 public authorities law. 12 § 3. This act shall take effect on April 1, 2025 and shall expire and 13 be deemed repealed March 31, 2026.