S. 3075 2
S 67-A. DEFINITIONS. AS USED IN THIS ARTICLE AND ARTICLE FIVE-C OF
THIS CHAPTER THE FOLLOWING TERMS SHALL HAVE THE MEANINGS SET FORTH
BELOW:
1. "BOARD" SHALL MEAN THE NEW YORK STATE DEBT MANAGEMENT BOARD CREATED
BY SECTION SIXTY-SEVEN-C OF THIS ARTICLE.
2. "STATE DEBT" SHALL MEAN ALL BONDS AND BOND ANTICIPATION NOTES
ISSUED BY THE STATE COMPTROLLER PURSUANT TO ARTICLE FIVE OF THIS CHAP-
TER.
3. "STATE BACKED DEBT" SHALL MEAN ANY DEBT OR OBLIGATION, OTHER THAN
STATE DEBT, THAT IS SUPPORTED IN WHOLE OR IN PART BY ANY FINANCING
ARRANGEMENT WHEREBY THE STATE AGREES OR HAS IN THE PAST AGREED, WHETHER
BY LAW, CONTRACT, OR OTHERWISE, TO MAKE PAYMENTS WHICH WILL BE USED,
DIRECTLY OR INDIRECTLY, FOR THE PAYMENT OF PRINCIPAL, INTEREST, OR
RELATED PAYMENTS ON INDEBTEDNESS INCURRED OR CONTRACTED BY THE STATE
ITSELF FOR ANY PURPOSE, OR BY ANY STATE AGENCY, MUNICIPALITY, INDIVID-
UAL, PUBLIC AUTHORITY OR OTHER PUBLIC OR PRIVATE CORPORATION OR ANY
OTHER ENTITY FOR STATE CAPITAL OR OPERATING PURPOSES OR TO FINANCE
GRANTS, LOANS OR OTHER ASSISTANCE PAYMENTS MADE OR TO BE MADE BY OR ON
BEHALF OF THE STATE FOR ANY PURPOSE. IF THE STATE AGREES TO MAKE FUTURE
REVENUES FROM A SPECIFIC STATE SOURCE AVAILABLE FOR THE PURPOSE OF
SUPPORTING DEBT OF ANY MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR
OTHER PUBLIC OR PRIVATE CORPORATION OR ANY OTHER ENTITY, SUCH DEBT SHALL
BE CONSIDERED TO BE A DEBT FOR THE PURPOSE OF FINANCING A STATE GRANT,
LOAN OR OTHER ASSISTANCE PAYMENT AND SHALL BE A "STATE BACKED DEBT" FOR
THE PURPOSES OF THIS ARTICLE. THE TERM "STATE BACKED DEBT" APPLIES TO
ALL DEBT OR OBLIGATIONS DESCRIBED IN THIS SUBDIVISION FOR WHICH THE
STATE AGREES, OR HAS IN THE PAST AGREED, TO MAKE PAYMENTS (A) WHETHER OR
NOT THE OBLIGATION OF THE STATE TO MAKE PAYMENTS IS SUBJECT TO APPROPRI-
ATION OR IS OTHERWISE CONTINGENT, OR (B) WHETHER OR NOT DEBT SERVICE IS
TO BE PAID FROM A REVENUE STREAM TRANSFERRED BY THE STATE TO ANOTHER
PARTY THAT IS RESPONSIBLE FOR MAKING SUCH PAYMENTS.
4. "STATE FUNDED DEBT" SHALL MEAN THE COMBINED TOTAL OF ALL STATE
DEBT, AS DEFINED IN SUBDIVISION TWO OF THIS SECTION, AND ALL STATE
BACKED DEBT, AS DEFINED IN SUBDIVISION THREE OF THIS SECTION, EXCEPT
SHORT TERM DEBT INCURRED IN ACCORDANCE WITH SECTION NINE OF ARTICLE
SEVEN OF THE CONSTITUTION, EMERGENCY DEBT INCURRED IN ACCORDANCE WITH
SECTION TEN OF ARTICLE SEVEN OF THE CONSTITUTION, AND REFUNDING DEBT
INCURRED IN ACCORDANCE WITH SECTION THIRTEEN OF ARTICLE SEVEN OF THE
CONSTITUTION.
5. "TOTAL PERSONAL INCOME OF THE STATE" SHALL MEAN THE MOST RECENTLY
PUBLISHED ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF
THE STATE OF NEW YORK BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY
SUCCESSOR AGENCY FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS
FOR WHICH INFORMATION IS AVAILABLE PRIOR TO OCTOBER THIRTY-FIRST OF EACH
YEAR. SUBSEQUENT REVISIONS OF THE PUBLISHED ESTIMATED DOLLAR AMOUNT FOR
SUCH CALENDAR QUARTERS SHALL NOT AFFECT THE VALIDITY OF THE DETERMI-
NATION MADE BY THE BOARD FOR ANY FISCAL YEAR.
6. "CAPITAL PURPOSE" SHALL MEAN ANY PROJECT INVOLVING:
(A) THE ACQUISITION, CONSTRUCTION, DEMOLITION, OR REPLACEMENT OF A
FIXED ASSET;
(B) THE MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, WHICH MATERIALLY
EXTENDS ITS USEFUL LIFE OR MATERIALLY IMPROVES OR INCREASES ITS CAPACI-
TY;
(C) THE PLANNING OR DESIGN OF THE ACQUISITION, CONSTRUCTION, DEMOLI-
TION, REPLACEMENT, MAJOR REPAIR OR RENOVATION OF A FIXED ASSET, INCLUD-
ING THE PREPARATION AND REVIEW OF PLANS AND SPECIFICATIONS INCLUDING
S. 3075 3
ENGINEERING AND OTHER SERVICES, FIELD SURVEYS AND SUB-SURFACE INVESTI-
GATIONS INCIDENTAL THERETO; OR
(D) THE COSTS OF ISSUING DEBT OBLIGATIONS TO FINANCE A CAPITAL
PURPOSE.
7. "CONDUIT DEBT OBLIGATIONS" SHALL MEAN A DEBT OBLIGATION ISSUED BY A
PUBLIC AUTHORITY (THE "CONDUIT ISSUER") ON BEHALF OF A THIRD PARTY (THE
"CONDUIT BORROWER") OTHER THAN THE STATE OR A POLITICAL SUBDIVISION OF
THE STATE, WHERE PAYMENT OF THE OBLIGATION IS TO BE MADE FROM FUNDS OF
THE CONDUIT BORROWER, THE SECURITY FOR THE OBLIGATION IS THE CREDIT OF
THE CONDUIT BORROWER AND NO FUNDS OF THE CONDUIT ISSUER, THE STATE OR A
POLITICAL SUBDIVISION OF THE STATE ARE PLEDGED TO SECURE THE OBLIGATION,
WHETHER OR NOT THE OBLIGATION OF THE CONDUIT ISSUER, THE STATE OR POLI-
TICAL SUBDIVISION OF THE STATE IS SUBJECT TO APPROPRIATION OR IS OTHER-
WISE CONTINGENT.
8. "CASH SURPLUS" SHALL MEAN THE AMOUNT BY WHICH GENERAL FUND RECEIPTS
IN A FISCAL YEAR EXCEED GENERAL FUND EXPENDITURES IN SUCH FISCAL YEAR.
S 67-B. USE OF SURPLUS MONEYS TO REDUCE OUTSTANDING STATE FUNDED DEBT.
AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS REMAIN-
ING IN THE GENERAL FUND AFTER THE TRANSFER PURSUANT TO SECTION
NINETY-TWO OF THIS CHAPTER SHALL BE TRANSFERRED TO THE DEBT REDUCTION
RESERVE FUND ESTABLISHED BY SECTION NINETY-SEVEN-RRR OF THIS CHAPTER.
THE PORTION TO BE TRANSFERRED SHALL BE EQUAL TO THE PROJECTED RATIO OF
TOTAL DEBT SERVICE DISBURSEMENTS FOR THE FISCAL YEAR TO TOTAL GOVERN-
MENTAL FUNDS DISBURSEMENTS FOR STATE AGENCY OPERATIONS FOR THE FISCAL
YEAR.
S 67-C. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE. 1.
THE NEW YORK STATE DEBT MANAGEMENT BOARD IS HEREBY CREATED TO HAVE AND
EXERCISE THE POWERS, DUTIES AND PREROGATIVES PROVIDED BY THE PROVISIONS
OF THIS ARTICLE AND ANY OTHER PROVISION OF LAW.
2. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF THREE PERSONS, INCLUD-
ING THE GOVERNOR, THE COMPTROLLER AND A THIRD PERSON WHO SHALL BE JOINT-
LY SELECTED BY THE GOVERNOR AND THE COMPTROLLER. THE TERM OF OFFICE FOR
THE MEMBERS OF THE BOARD SHALL BE THE SAME AS THE TERMS OF OFFICE OF THE
GOVERNOR AND THE COMPTROLLER. IF THE THIRD MEMBER OF THE BOARD RESIGNS,
BECOMES INCAPACITATED, IS JOINTLY REMOVED BY THE GOVERNOR AND THE COMP-
TROLLER, OR IS OTHERWISE UNABLE TO SERVE, THE GOVERNOR AND THE COMP-
TROLLER SHALL JOINTLY SELECT A SUCCESSOR TO SERVE THE REMAINDER OF THE
UNEXPIRED TERM. THE GOVERNOR SHALL BE THE CHAIRPERSON. THE BOARD SHALL
ACT BY MAJORITY OF ALL OF THE MEMBERS OF THE BOARD, EXCEPT THAT CHANGING
THE DEBT AFFORDABILITY LEVEL PREVIOUSLY ESTABLISHED BY THE BOARD SHALL
REQUIRE UNANIMOUS APPROVAL BY ALL THE MEMBERS OF THE BOARD. ANY ACTION
BY THE BOARD SHALL BE EVIDENCED BY A CERTIFICATION THEREOF SIGNED BY A
MAJORITY OF ALL THE MEMBERS, EXCEPT THAT ALL MEMBERS SHALL SIGN A
CERTIFICATION OF ANY ACTION REQUIRING UNANIMOUS APPROVAL. EACH MEMBER OF
THE BOARD SHALL BE ENTITLED TO DESIGNATE A REPRESENTATIVE TO ATTEND
MEETINGS OF THE BOARD IN HIS OR HER PLACE, AND TO VOTE OR OTHERWISE ACT
ON HIS OR HER BEHALF IN HIS OR HER ABSENCE. NOTICE OF SUCH DESIGNATION
SHALL BE FURNISHED IN WRITING TO THE BOARD BY THE DESIGNATING MEMBER. A
REPRESENTATIVE SHALL SERVE AT THE PLEASURE OF THE DESIGNATING MEMBER
DURING THE MEMBER'S TERM OF OFFICE. A REPRESENTATIVE SHALL NOT BE
AUTHORIZED TO DELEGATE ANY OF HIS OR HER DUTIES OR POWERS TO ANY OTHER
PERSON.
3. THE THIRD PERSON JOINTLY SELECTED BY THE GOVERNOR AND THE COMP-
TROLLER TO BE A MEMBER OF THE DEBT MANAGEMENT BOARD SHALL BE A FINANCIAL
EXPERT WITH EXPERIENCE IN PUBLIC FINANCE, ECONOMICS, ACADEMICS, OR
GOVERNMENT.
S. 3075 4
4. ALL THE MEMBERS OF THE BOARD AND THEIR REPRESENTATIVES SHALL BE
ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN
THE PERFORMANCE OF OFFICIAL DUTIES PURSUANT TO THIS SECTION OR OTHER
PROVISION OF LAW.
5. THE BOARD SHALL MEET SEMI-ANNUALLY OR MORE FREQUENTLY AT THE CALL
OF THE CHAIRPERSON. MEETINGS OF THE BOARD SHALL BE SUBJECT TO THE OPEN
MEETINGS LAW ESTABLISHED BY ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
S 67-D. POWERS AND DUTIES OF THE NEW YORK STATE DEBT MANAGEMENT BOARD.
1. THE BOARD SHALL HAVE THE POWER AND THE DUTY TO (A) ANNUALLY DETERMINE
THE TOTAL DEBT LIMIT OF THE STATE BY CALCULATING THE DOLLAR AMOUNT
EQUIVALENT TO FIVE PERCENT OF THE TOTAL PERSONAL INCOME OF THE STATE, AS
DEFINED IN SECTION SIXTY-SEVEN-A OF THIS ARTICLE, AND (B) ANNUALLY
PRESCRIBE A DEBT AFFORDABILITY LEVEL, WHICH ON OR AFTER APRIL FIRST, TWO
THOUSAND SEVENTEEN SHALL BE NO HIGHER THAN THE TOTAL DEBT LIMIT OF THE
STATE.
2. ON OR BEFORE OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL
DETERMINE THE TOTAL DEBT LIMIT OF THE STATE FOR THE NEXT FISCAL YEAR,
AND REPORT THE LIMIT TO THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER OF
THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON AND RANKING MINORITY
MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE THE SAME
DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LIMIT.
3. ON OR BEFORE OCTOBER THIRTY-FIRST OF EACH YEAR, THE BOARD SHALL
PRESCRIBE THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE NEXT FISCAL
YEAR, AND REPORT THE LEVEL TO THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, THE CHAIRPERSON AND RANKING MINORITY MEMBER OF
THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON AND RANKING MINORITY
MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. ON OR BEFORE THE SAME
DATE, THE BOARD SHALL ISSUE A PUBLIC ANNOUNCEMENT OF SUCH LEVEL. WITHIN
THE LIMITATION ESTABLISHED BY THE TOTAL DEBT LIMIT OF THE STATE, THE
DEBT AFFORDABILITY LEVEL OF THE STATE SHALL BE BASED UPON THE BOARD'S
EVALUATION OF THE TOTAL AMOUNT OF ADDITIONAL DEBT THAT MAY BE INCURRED
AND THE TOTAL DEBT SERVICE OBLIGATIONS AND RELATED PAYMENTS THAT MAY BE
UNDERTAKEN BY THE STATE WITHOUT OVERBURDENING PRESENT OR FUTURE GENER-
ATIONS, TAKING INTO ACCOUNT THE CURRENT AND EXPECTED REVENUES AND
EXPENSES OF THE STATE, THE CURRENT AND EXPECTED TRENDS AFFECTING THE
ECONOMY OF THE STATE, AND SUCH OTHER FACTORS AS THE BOARD DEEMS RELE-
VANT. IN ADDITION TO THE DEBT AFFORDABILITY LEVEL OF THE STATE FOR THE
NEXT FISCAL YEAR, THE BOARD'S REPORT TO THE LEGISLATURE AND ANNOUNCEMENT
TO THE PUBLIC SHALL INCLUDE THE BOARD'S FORECAST OF THE DEBT AFFORDABIL-
ITY LEVELS EXPECTED FOR THE TWO SUCCEEDING FISCAL YEARS. FOLLOWING THE
BOARD'S ESTABLISHMENT OF A DEBT AFFORDABILITY LEVEL OF THE STATE FOR A
FISCAL YEAR, THERE SHALL BE NO CHANGE IN SUCH LEVEL (OTHER THAN A DEBT
AFFORDABILITY LEVEL FORECAST FOR A FISCAL YEAR AFTER THE NEXT FISCAL
YEAR) EXCEPT WITH THE UNANIMOUS APPROVAL OF THE MEMBERS OF THE BOARD.
4. THE BOARD SHALL HAVE THE POWER AND IT SHALL BE ITS DUTY TO MAKE
RECOMMENDATIONS TO THE GOVERNOR AND THE LEGISLATURE OF POLICIES TO
GOVERN THE ISSUANCE OF ALL STATE FUNDED DEBT AND OTHER CAPITAL FINANCING
MATTERS.
5. THE BOARD SHALL ADOPT POLICY STANDARDS RELATING TO THE ISSUANCE OF
ALL STATE FUNDED DEBT AND FOR CAPITAL FINANCING. SUCH STANDARDS SHALL
REQUIRE THE UNANIMOUS APPROVAL OF ALL THREE MEMBERS OF THE BOARD, AND
SHALL COVER, AMONG OTHER ITEMS, THE FOLLOWING:
(A) STRUCTURES FOR STATE FUNDED DEBT, SUCH AS RATE OF AMORTIZATION OF
PRINCIPAL, THE USE OF PREMIUMS, AND CAPITALIZATION OF INTEREST ON STATE
FUNDED DEBT;
S. 3075 5
(B) CRITERIA FOR REFUNDING OUTSTANDING STATE FUNDED DEBT, INCLUDING,
BUT NOT LIMITED TO, SUCH MATTERS AS EXTENSION OF THE TERM OF OUTSTANDING
DEBT, PRESENT VALUE SAVINGS AND DISTRIBUTION OF ACTUAL SAVINGS;
(C) THE USE OF CREDIT ENHANCEMENTS, DERIVATIVE INSTRUMENTS AND VARI-
ABLE OR FIXED RATE DEBT OBLIGATIONS WITH RESPECT TO STATE FUNDED DEBT;
(D) GOALS FOR THE PROPORTION OF STATE CAPITAL SPENDING TO BE FINANCED
WITH DEBT AND THE PROPORTION TO BE FINANCED WITH CURRENT APPROPRIATIONS;
(E) THE METHOD OF SALE, SUCH AS COMPETITIVE OR NEGOTIATED, OF STATE
FUNDED DEBT OBLIGATIONS;
(F) CRITERIA TO BE USED IN SELECTING STATE FUNDED DEBT OBLIGATIONS TO
BE RETIRED OR DEFEASED BY THE USE OF THE PORTION OF ANY CASH SURPLUS,
DETERMINED PURSUANT TO SECTION SIXTY-SEVEN-B OF THIS ARTICLE, THAT SHALL
BE DEDICATED TO THE EXCLUSIVE PURPOSE OF REDUCING THE AGGREGATE AMOUNT
OF OUTSTANDING STATE FUNDED DEBT OBLIGATIONS;
(G) THE DEFINITION OF NON-RECURRING REVENUES WHICH SHALL BE USED FOR
THE FUNDING OF CAPITAL PROJECTS WHICH HAVE BEEN AUTHORIZED BY LAW TO BE
FINANCED THROUGH THE ISSUANCE OF STATE FUNDED DEBT OR FOR THE PURPOSE OF
RETIRING OR DEFEASING BONDS OR NOTES PREVIOUSLY ISSUED;
(H) SUCH OTHER POLICY MATTERS RELATING TO THE ISSUANCE OF STATE FUNDED
DEBT AS THE BOARD MAY DETERMINE TO BE APPROPRIATE; AND
(I) POLICY STANDARDS TO BE FOLLOWED BY STATE AUTHORITIES, AS DEFINED
IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, IN RELATION TO THE ISSU-
ANCE BY SUCH PUBLIC AUTHORITIES OF DEBT OBLIGATIONS OTHER THAN CONDUIT
DEBT OBLIGATIONS. IN THE DISCRETION OF THE COMPTROLLER, SUCH POLICY
STANDARDS MAY BE APPLIED BY THE COMPTROLLER IN THE EXERCISE OF HIS OR
HER CONSTITUTIONAL AUTHORITY TO SUPERVISE THE ACCOUNTS OF AUTHORITIES,
AS DEFINED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW, AND POLITICAL
SUBDIVISIONS.
THE BOARD SHALL ANNUALLY REVIEW THE POLICY STANDARDS AND ADOPT SUCH
CHANGES OR ADDITIONS AS IT DEEMS ADVISABLE ON OR BEFORE THE ANNIVERSARY
DATE OF ITS ORIGINAL STANDARDS.
S 67-E. COMPTROLLER'S DUTIES WITH RESPECT TO BOARD. THE COMPTROLLER
SHALL COLLECT AND ANALYZE DATA WITH RESPECT TO OUTSTANDING STATE FUNDED
DEBT, AND, AT LEAST ANNUALLY, ON OR BEFORE THE ONE HUNDRED FIFTIETH DAY
FOLLOWING THE END OF THE STATE FISCAL YEAR, REPORT TO THE BOARD, THE
GOVERNOR, THE TEMPORARY PRESIDENT AND THE MINORITY LEADER OF THE SENATE,
AND THE SPEAKER AND MINORITY LEADER OF THE ASSEMBLY ON THE CONDITION OF
STATE FUNDED DEBT. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO,
THE AMOUNT OF STATE FUNDED DEBT OUTSTANDING, THE DIFFERENT ISSUERS AND
CATEGORIES OF SUCH DEBT, AND ANY DIFFERENCES IN CREDIT RATINGS AMONG
CATEGORIES AND ISSUES.
S 67-F. LIMITATIONS ON STATE FUNDED DEBT AND STATE DEBT SERVICE
PAYMENTS. 1. NO ADDITIONAL STATE FUNDED DEBT SHALL BE INCURRED AFTER
APRIL FIRST, TWO THOUSAND SEVENTEEN IF THE TOTAL PRINCIPAL AMOUNT OF
SUCH ADDITIONAL DEBT, TOGETHER WITH THE TOTAL PRINCIPAL AMOUNT OF STATE
FUNDED DEBT ALREADY OUTSTANDING AND THE TOTAL PRINCIPAL AMOUNT OF STATE
FUNDED DEBT ALREADY AUTHORIZED BUT NOT YET INCURRED, IS EQUAL TO OR
GREATER THAN THE TOTAL DEBT LIMIT OF THE STATE AS DETERMINED BY THE
BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE.
2. WITH THE EXCEPTION OF SHORT TERM DEBT INCURRED IN ACCORDANCE WITH
SECTION NINE OF ARTICLE SEVEN OF THE CONSTITUTION, EMERGENCY DEBT
INCURRED IN ACCORDANCE WITH SECTION TEN OF ARTICLE SEVEN OF THE CONSTI-
TUTION, AND REFUNDING DEBT, NO STATE FUNDED DEBT SHALL BE INCURRED
EXCEPT TO FINANCE A CAPITAL PURPOSE.
3.(A) ALL DEBT SUBJECT TO THE PROVISIONS OF THIS SECTION (I) SHALL,
EXCEPT FOR REFUNDING DEBT, BE INCURRED ONLY FOR A CAPITAL PURPOSE
S. 3075 6
AUTHORIZED BY LAW, AND (II) SHALL, IF INCURRED ON OR AFTER THE FIRST DAY
OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE EFFECTIVE
DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITU-
TION, BE IN THE FORM OF OBLIGATIONS ISSUED BY THE COMPTROLLER.
(B) ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, NO DEBT OBLIGATION
SUBJECT TO THE PROVISIONS OF THIS SECTION SHALL BE ISSUED UNLESS THE
COMPTROLLER DETERMINES THAT SUCH ISSUANCE IS WITHIN THE DEBT AFFORDABIL-
ITY LEVEL FOR THAT FISCAL YEAR ESTABLISHED BY THE DEBT MANAGEMENT BOARD
PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE. ON OR AFTER APRIL
FIRST, TWO THOUSAND SEVENTEEN, NO SUCH DEBT OBLIGATION SHALL BE ISSUED
UNLESS THE COMPTROLLER DETERMINES THAT SUCH ISSUANCE IS WITHIN (I) THE
LIMIT ON STATE DEBT AND (II) THE DEBT AFFORDABILITY LEVEL ESTABLISHED BY
THE DEBT MANAGEMENT BOARD PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS
ARTICLE.
4. NO STATE FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION
WITH A FINAL MATURITY EXCEEDING THE PROBABLE LIFE OF THE CAPITAL PROJECT
FINANCED BY SUCH DEBT, AS SPECIFIED IN SECTION SIXTY-ONE OF THIS CHAP-
TER. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO
STATE FUNDED DEBT SHALL BE INCURRED IN THE FORM OF AN OBLIGATION WITH A
FINAL MATURITY OF MORE THAN THIRTY YEARS.
5. DURING EACH FISCAL YEAR BEGINNING ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION, UP TO AND INCLUDING ANY FISCAL YEAR ENDING IN TWO THOUSAND
EIGHTEEN NO NEW STATE FUNDED DEBT SHALL BE INCURRED IN AN AGGREGATE
PRINCIPAL AMOUNT EXCEEDING NINETY-FIVE PERCENT OF THE AGGREGATE PRINCI-
PAL AMOUNT OF NEW STATE FUNDED DEBT INCURRED IN THE PRECEDING FISCAL
YEAR.
6. NO STATE FUNDED DEBT OUTSTANDING ON THE EFFECTIVE DATE OF THIS
SUBDIVISION SHALL BE REFUNDED UNLESS (A) SUCH REFUNDING IS CONDUCTED IN
ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE CONSTITUTION
APPLIED, AND (B) ANY SUCH REFUNDING OBLIGATIONS ISSUED ON OR AFTER THE
FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT LEAST ONE YEAR AFTER THE
EFFECTIVE DATE OF AN AMENDMENT TO SECTION ELEVEN OF ARTICLE SEVEN OF THE
CONSTITUTION IMPOSING A LIMIT ON THE TOTAL AMOUNT OF STATE DEBT, ARE
ISSUED BY THE COMPTROLLER. SUCH OUTSTANDING DEBT OBLIGATIONS AND THE
DEBT SERVICE EXPENSES, DIRECT OR INDIRECT, REQUIRED FOR SUCH OBLIGATIONS
SHALL BE INCLUDED IN THE DETERMINATION OF THE DEBT LIMIT AND THE DEBT
AFFORDABILITY LEVEL PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE.
7. DEBT OBLIGATIONS ISSUED TO REFUND OUTSTANDING STATE FUNDED DEBT,
REGARDLESS OF WHETHER SUCH OUTSTANDING DEBT WAS INCURRED PRIOR TO THE
EFFECTIVE DATE OF THIS SUBDIVISION, SHALL NOT BE COUNTED FOR THE
PURPOSES OF THE DEBT LIMIT AND THE DEBT AFFORDABILITY LEVEL DETERMINED
PURSUANT TO SECTION SIXTY-SEVEN-D OF THIS ARTICLE IF SUCH REFUNDING IS
CONDUCTED IN ALL RESPECTS AS IF SECTION THIRTEEN OF ARTICLE SEVEN OF THE
CONSTITUTION APPLIED. DEBT SERVICE EXPENSES ON DEBT THAT HAS BEEN
REFUNDED IN ACCORDANCE WITH SECTION THIRTEEN OF ARTICLE SEVEN OF THE
CONSTITUTION SHALL BE EXCLUDED FOR THE DEBT AFFORDABILITY LEVEL TO THE
EXTENT THAT SUCH DEBT SERVICE EXPENSES ARE TO BE PAID FROM AN ESCROW
FUND ESTABLISHED WITH PROCEEDS OF THE REFUNDING DEBT, BUT DEBT SERVICE
EXPENSES ON THE REFUNDING DEBT SHALL BE INCLUDED EXCEPT TO THE EXTENT
THAT SUCH DEBT SERVICE EXPENSES ARE TO BE PAID FROM SUCH AN ESCROW FUND.
FOR THE PURPOSES OF THIS SUBDIVISION AND SUBDIVISIONS SIX AND EIGHT OF
THIS SECTION, ANY REFUNDING DEBT THAT DOES NOT EXTEND BEYOND THE FINAL
MATURITY OF THE DEBT BEING REFUNDED SHALL BE DEEMED TO BE IN COMPLIANCE
WITH THE PROVISIONS OF SUBDIVISION SIX OF SECTION THIRTEEN OF ARTICLE
SEVEN OF THE CONSTITUTION MADE APPLICABLE BY THIS SUBDIVISION IF THERE
S. 3075 7
IS AN ACTUAL DEBT SERVICE SAVINGS IN EVERY YEAR TO MATURITY AS A RESULT
OF THE ISSUANCE OF THE REFUNDING DEBT.
8. AFTER THE EFFECTIVE DATE OF THIS SECTION THE STATE SHALL NOT,
EXCEPT AS SPECIFICALLY AUTHORIZED BY A PROVISION OF THE CONSTITUTION
OTHER THAN SECTION ELEVEN OF ARTICLE SEVEN OF THE CONSTITUTION, AGREE TO
MAKE PAYMENTS, DIRECTLY OR INDIRECTLY, WHETHER OR NOT SUBJECT TO APPRO-
PRIATION, THAT ARE TO BE AVAILABLE TO PAY DEBT SERVICE ON ANY DEBT
INCURRED BY A MUNICIPALITY, INDIVIDUAL, PUBLIC AUTHORITY OR OTHER PUBLIC
OR PRIVATE CORPORATION OR ANY OTHER ENTITY, FOR ANY PURPOSE, IF SUCH
PAYMENTS ARE EXPECTED TO BE USED TO PAY DEBT SERVICE ONLY IF OTHER
SOURCES AVAILABLE FOR THE PAYMENT OF DEBT SERVICE ARE INADEQUATE.
OUTSTANDING DEBT THAT WOULD BE PROHIBITED BY THIS SUBDIVISION IF SUCH
DEBT HAD BEEN INCURRED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION MAY
BE REFUNDED BY THE ENTITY THAT INCURRED THE OUTSTANDING DEBT PROVIDED
THAT ALL PROVISIONS OF SUBDIVISIONS SIX AND SEVEN OF THIS SECTION ARE
COMPLIED WITH EXCEPT THE REQUIREMENT THAT SUCH REFUNDING DEBT OBLI-
GATIONS BE ISSUED BY THE COMPTROLLER, AND REFUNDING DEBT SERVICE
EXPENSES SHALL ONLY BE INCLUDED IN DEBT AFFORDABILITY DETERMINATIONS IF
DEBT SERVICE EXPENSES ON THE DEBT BEING REFUNDED WOULD HAVE BEEN
INCLUDED.
S 2. Subdivision 2 of section 68-a of the state finance law, as added
by section 2 of part I of chapter 383 of the laws of 2001, is amended to
read as follows:
2. "Authorized purpose" for purposes of this article and section nine-
ty-two-z of this chapter shall mean any [purposes] PURPOSE for which
[state-supported] STATE FUNDED debt, as defined by section sixty-seven-a
of this chapter, may BE or has been issued except debt for which the
state is constitutionally obligated thereunder to pay debt service and
related expenses, and except (a) as authorized in paragraph (b) of
subdivision one of section three hundred eighty-five of the public
authorities law, (b) as authorized for the department of health of the
state of New York facilities as specified in paragraph a of subdivision
two of section sixteen hundred eighty of the public authorities law, (c)
state university of New York dormitory facilities as specified in subdi-
vision eight of section sixteen hundred seventy-eight of the public
authorities law, and (d) as authorized for mental health services facil-
ities by section nine-a of section one of chapter three hundred ninety-
two of the laws of nineteen hundred seventy-three constituting the New
York state medical care facilities [financing] FINANCE AGENCY act.
S 3. Subdivision 6 of section 68-c of the state finance law, as added
by section 2 of part I of chapter 383 of the laws of 2001, is amended
and a new subdivision 7 is added to read as follows:
6. Any resolution or other agreement authorizing revenue bonds under
this article shall reserve the right of the state, upon amendment OF
SECTION ELEVEN OF ARTICLE SEVEN of the New York state constitution
allowing the issuance or assumption of bonds, notes or other obligations
secured by revenues, which may include the revenues securing revenue
bonds of authorized issuers (a) to assume, in whole or in part, revenue
bonds of the authorized issuers, (b) to extinguish the existing lien of
such resolution, or other agreement and (c) to substitute security for
the revenue bonds of the authorized issuers, in each case only so long
as such assumption, extinguishment or substitution is done in accordance
with such resolution or other agreement AND SUCH CONSTITUTIONAL AMEND-
MENT.
7. ON AND AFTER THE FIRST DAY OF THE FIRST FISCAL YEAR BEGINNING AT
LEAST ONE YEAR AFTER THE EFFECTIVE DATE OF AN AMENDMENT OF SECTION ELEV-
S. 3075 8
EN OF ARTICLE SEVEN OF THE CONSTITUTION IMPOSING A LIMIT ON THE TOTAL
AMOUNT OF STATE DEBT, NO REVENUE BONDS SHALL BE ISSUED.
S 4. Section 97-rrr of the state finance law, as amended by section 45
of part H of chapter 56 of the laws of 2000, is amended to read as
follows:
S 97-rrr. Debt reduction reserve fund. 1. There is hereby established
in the joint custody of the comptroller and the commissioner of taxation
and finance a fund to be known as the debt reduction reserve fund. [Such
fund shall be established as a capital projects fund.]
2. Such fund shall consist of all monies credited or transferred ther-
eto from the general fund or from any other fund or sources pursuant to
law.
3. The monies in such fund, following appropriation by the legislature
and allocation by the director of the budget, shall be available [for
the following purposes:
(a) for the payment of principal, interest, and related expenses on
general obligation bonds, lease purchase payments, or special contractu-
al obligation payments, or] ONLY for the [purposes] PURPOSE of retiring
or defeasing bonds OR NOTES previously issued, including any accrued
interest thereon, for any [state-supported bonding program or programs,
and;
(b) for the funding of capital projects, equipment acquisitions, or
similar expenses which have been authorized by law to be financed
through the issuance of bonds, notes, or other obligations] STATE FUNDED
DEBT.
S 5. Section 24 of the state finance law is amended by adding a new
subdivision 6 to read as follows:
6. THE BUDGET BILLS SHALL INCLUDE AN APPROPRIATION OF THE AVAILABLE
BALANCE FROM THE DEBT REDUCTION RESERVE FUND CREATED BY SECTION NINETY-
SEVEN-RRR OF THIS CHAPTER TO BE USED EXCLUSIVELY FOR THE PURPOSE OF
RETIRING OR DEFEASING STATE FUNDED DEBT OBLIGATIONS IN ACCORDANCE WITH
THE CRITERIA ESTABLISHED BY THE DEBT MANAGEMENT BOARD.
S 6. Subdivision 1 of section 51 of the public authorities law, as
added by chapter 838 of the laws of 1983, paragraph k as added by chap-
ter 506 of the laws of 1995 and paragraph l as added by chapter 468 of
the laws of 2004, is amended to read as follows:
1. [The] SUBJECT TO (A) THE COMPTROLLER'S CONSTITUTIONAL AUTHORITY TO
SUPERVISE THE ACCOUNTS OF PUBLIC AUTHORITIES, (B) THE COMPTROLLER'S
STATUTORY AUTHORITY TO APPROVE THE TERMS AND CONDITIONS OF DEBT OBLI-
GATIONS ISSUED BY PUBLIC AUTHORITIES, AND (C) THE POLICY STANDARDS
ESTABLISHED BY THE DEBT MANAGEMENT BOARD PURSUANT TO SECTION SIXTY-SEV-
EN-D OF THE STATE FINANCE LAW IN RELATION TO PUBLIC AUTHORITY DEBT, THE
New York state public authorities control board shall have the power and
it shall be its duty to receive applications for approval of the financ-
ing and construction of any project proposed by any [of the following
state public benefit corporations:
a. New York state environmental facilities corporation
b. New York state housing finance agency
c. New York state medical care facilities finance agency
d. Dormitory authority
e. New York state urban development corporation
f. Job development authority
g. Battery park city authority
h. New York state project finance agency
i. State of New York mortgage agency
j. New York state energy research and development authority
S. 3075 9
k. Long Island Power Authority
l. Albany Convention Center Authority] CLASS A OR CLASS B PUBLIC
AUTHORITY, AS DEFINED IN SECTION TWO OF THIS CHAPTER.
Any application made concerning a project shall include the terms,
conditions and dates of the repayment of state appropriations authorized
by law pursuant to a repayment agreement, AND A CURRENT LISTING OF ALL
OUTSTANDING DEBT AND DEBT SERVICE OBLIGATIONS OF THE APPLICANT. Any
subsidiary of, or corporation with the same members or directors as, a
public benefit corporation subject to the provisions of this section
shall also be subject to the provisions of this section. All applica-
tions and submissions to the board required to be made by a subsidiary
shall be made on behalf of such subsidiary by the public benefit corpo-
ration which created the subsidiary. No public benefit corporation
subject to the provisions of this section shall make any commitment,
enter into any agreement or incur any indebtedness for the purpose of
acquiring, constructing, or financing any project unless prior approval
has been received from the board by such public benefit corporation as
provided herein.
S 7. Section 51 of the public authorities law is amended by adding a
new subdivision 6 to read as follows:
6. NOT LATER THAN NINETY DAYS AFTER THE END OF EACH FISCAL YEAR, THE
BOARD SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER, THE TEMPORARY PRES-
IDENT AND THE MINORITY LEADER OF THE SENATE, AND THE SPEAKER AND THE
MINORITY LEADER OF THE ASSEMBLY, AN ANNUAL REPORT DETAILING: (A) THE
AGGREGATE AMOUNT OF DEBT APPROVED BY THE BOARD DURING SUCH FISCAL YEAR;
(B) A LIST OF THE INDIVIDUAL PROJECTS APPROVED BY THE BOARD FOR EACH
PUBLIC AUTHORITY DURING SUCH FISCAL YEAR; AND
(C) THE TOTAL AMOUNT OF NEW DEBT OBLIGATIONS THE BOARD HAS APPROVED
DURING SUCH FISCAL YEAR FOR ISSUANCE BY EACH PUBLIC AUTHORITY.
THE BOARD SHALL PUBLISH SUCH REPORT BY POSTING SUCH REPORT ON THE
BOARD'S INTERNET WEBSITE. EACH SUCH REPORT POSTED ON THE BOARD'S INTER-
NET WEBSITE SHALL BE MAINTAINED ON SUCH WEBSITE FOR AT LEAST TWELVE
MONTHS OR UNTIL THE NEXT SUCH REPORT IS POSTED ON SUCH WEBSITE, WHICHEV-
ER IS LATER. THE BOARD SHALL ISSUE A NEWS RELEASE ANNOUNCING SUCH REPORT
TO NEWSPAPERS OF GENERAL CIRCULATION AND RADIO AND TELEVISION NEWS
BUREAUS WITHIN THE STATE.
S 8. Subdivision 2 of section 365 of the public authorities law, as
separately amended by sections 349 and 381 of chapter 190 of the laws of
1990, is amended to read as follows:
2. The notes and bonds shall be authorized by resolution of the board,
shall bear such date or dates and mature at such time or times, in the
case of notes and any renewals thereof within five years after their
respective dates and in the case of bonds not exceeding forty years from
their respective dates, as such resolution or resolutions may provide.
The notes and bonds shall bear interest at such rate or rates, be in
such denominations, be in such form, either coupon or registered, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment, at such place or places, and be subject to such
terms of redemption as such resolution or resolutions may provide. Bonds
and notes shall be sold by the authority, at public or private sale, at
such price or prices as the authority may determine. Bonds and notes of
the authority shall not be sold by the authority at private sale unless
such sale and the terms thereof have been approved in writing by the
comptroller, where such sale is not to the comptroller, or by the direc-
tor of the budget, where such sale is to the comptroller. [Bonds and
notes sold at public sale shall be sold by the comptroller, as agent of
S. 3075 10
the authority, in such manner as the authority, with the approval of the
comptroller, shall determine.]
S 9. This act shall take effect immediately, provided, however, that
paragraph a of subdivision 3 and subdivision 6 of section 67-f of the
state finance law, as added by section one of this act, and section
three of this act, shall take effect on the same date as a concurrent
resolution of the Senate and Assembly entitled "proposing amendments to
article 7 of the state constitution, in relation to the authorization of
debt in times of public emergency, a limit on the total amount of state
debt, the establishment of a debt management board, and refunding of
state debts", takes effect.