NY State Senate Bill 2009-S8339

Senate Bill S8339

Signed By Governor

2009-2010 Legislative Session

Relates to the powers and duties of the dormitory authority and equipment loans for intellectual property

download bill text pdf

Archive: Last Bill Status Via A11546 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 30, 2010	signed chap.452
Aug 18, 2010	delivered to governor
Jun 30, 2010	returned to assembly passed senate 3rd reading cal.1414 substituted for s8339
Jun 30, 2010	substituted by a11546 ordered to third reading cal.1414
Jun 24, 2010	referred to rules

Votes

- Jun 30, 2010 - Floor Vote
  A11546
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 30, 2010
      
      aye (61)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (1)
      
      Morahan
  Jun 30, 2010 - Rules Committee Vote
  S8339
  
  21
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 30, 2010
      
      aye (21)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      nay (1)
      
      Volker
      
      aye wr (1)
      
      Johnson

2009-S8339 (ACTIVE) - Details

See Assembly Version of this Bill:: A11546
Law Section:: Public Authorities
Laws Affected:: Amd §§1676 & 1679-b, Pub Auth L; amd §§3 & 5-b, NYS Med Care Fac Fin Ag Act

2009-S8339 (ACTIVE) - Summary

Relates to the powers and duties of the dormitory authority and equipment loans for intellectual property.

2009-S8339 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8339

TITLE OF BILL:

An act to amend the public authorities law, in relation to the powers
and duties of the dormitory authority; and  to amend the New York state
medical care facilities finance agency act, in relation to equipment
loans for intellectual property

PURPOSE OF BILL:

To address a technical deficiency within the law that authorizes the
Dormitory Authority of the State of New York (DASNY) through its Tax
Exempt Leasing Program (TELP) to finance the lease acquisition of
certain equipment. The new provision would explicitly include health
information technology equipment, software, intellectual property, other
intangible property and ancillary costs associated with that equipment.

SUMMARY OF PROVISIONS:

§ 1. Amends Subdivision 2 of section 1676 of the public authorities law
by adding a new paragraph (h) to include equipment, intellectual proper-
ty or other intangible property, including information technology and
software, making those items eligible for tax-exempt financing under the
United States internal revenue code.

§2. Amends Subdivision 18 of section 7413 of the unconsolidated laws to
define "Equipment loan" s to be consistent with the provisions outlined
in section 1 of the bill.

§3. Amends Subdivision 1 of section 74l5-b of the unconsolidated laws to
be consistent with the changes made in sections 1 and 2 of the legis-
lation with respect to equipment loans.

§4. Amends Subdivision 1 of section l679-b of the public authorities law
to be consistent with the changes made in sections 1 and 2 of the legis-
lation.

§5. Sets forth an immediate effective date for the legislation.

EXISTING LAW:

The Dormitory Authority of the State of New York (DASNY) through its Tax
Exempt Leasing Program (TELP) currently is authorized to provide financ-
ing for equipment loans. However, the ability to finance ancillary
acquisitions and other intangible property is Not explicitly included in
that authorization.

PRIOR LEGISLATIVE HISTORY:

This is new legislation.

JUSTIFICATION:

The Dormitory Authority currently operates a significant Tax Exempt
Leasing Program (more than $250 million for fiscal year 2009/2010) that
finances the procurement of equipment for numerous institutions such as
not for profit hospitals, universities, colleges, and other DASNY not-
for-profit clients. As institutions in New York State, especially the
healthcare industry, move toward a more efficient record-keeping and
record-sharing, it is important that they be equipped with the tools
needed to achieve that goal. Under current law, the Dormitory Authority
of the State of New York ("DASNY"), through its Tax-Exempt Leasing
Program ("Program"), provides the industry with one such tool. The TELP
program converts commercial equipment leases to tax-exempt equipment
leases. It allows DASNY to confer tax-exempt status to the equipment
lease and thereby reduce the borrowing cost for such assets and equip-
ment on behalf of not- for-profit organizations. All funds are provided
by third party lenders, ie. private financial institutions.

This bill seeks to enhance Program services by specifying certain addi-
tional allowable activities including lease financing of electronic
medical records ("EMR") projects, and the associated activities neces-
sary for their implementation and development. These activities would
include but not be limited to stand-alone software and hardware,
consultant costs, licensure, implementation, training and other capital
costs that are necessary to make such projects and equipment/technology
functional, operable and serviceable.

This bill would assist DASNY's not-for-profit clients, primarily health-
care institutions, to invest in technology equipment and software there-
by preserving jobs, and maintaining current technology and related
proficiency state-wide. Further, EMR technology is often an extraor-
dinarily significant fiscal item, exceeding $50 or $60 million in many
instances.  Healthcare facilities are finding these projects difficult
to complete without funding assistance and have sought such assistance
from DASNY in the form of tax-exempt leasing under the TELP program.

This emerging need, to reduce the financing costs of these acquisitions,
can be addressed by clarifying the current TELP statute. This legis-
lation would allow health care institutions to access funding for the
procurement of health information technology equipment software and
associated ancillary implementation and licensure costs connected to the
equipment.

FISCAL IMPLICATIONS:

No cost to the State. Failure to adopt these provisions could result in
the loss of approximately $250 million in equipment projects over the
next few months.

EFFECTIVE DATE:

This act shall take effect immediately.

2009-S8339 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8339

                            I N  S E N A T E

                              June 24, 2010
                               ___________

Introduced  by  Sen. PERKINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the public authorities law, in relation  to  the  powers
  and  duties  of  the  dormitory authority; and   to amend the New York
  state medical care facilities  finance  agency  act,  in  relation  to
  equipment loans for intellectual property

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 1676 of the public authorities law
is amended by adding a new paragraph (h) to read as follows:
  (H) IT SHALL ALSO INCLUDE EQUIPMENT, INTELLECTUAL  PROPERTY  OR  OTHER
INTANGIBLE  PROPERTY,  INCLUDING  INFORMATION  TECHNOLOGY  AND SOFTWARE,
ELIGIBLE FOR TAX-EXEMPT  FINANCING  UNDER  THE  UNITED  STATES  INTERNAL
REVENUE CODE.
  S  2.  Subdivision  18 of section 3 of section 1 of chapter 392 of the
laws of 1973, constituting the New York state  medical  care  facilities
finance  agency  act, as amended by chapter 363 of the laws of 1998, and
the second undesignated paragraph as separately amended by section 11 of
part D of chapter 389 of the  laws  of  1997,  is  amended  to  read  as
follows:
  18.  "Equipment  loan"  shall mean a loan made by the agency to a non-
profit hospital corporation, a county hospital, a municipal hospital,  a
New  York state department of health facility, a state university of New
York health care facility or a non-profit corporation providing a  resi-
dential  health care facility, for the purpose of financing or refinanc-
ing the acquisition through purchase or lease  of  equipment,  including
construction  and  rehabilitation  related  to  the installation of such
equipment, AND SHALL ALSO INCLUDE INTELLECTUAL PROPERTY OR OTHER  INTAN-
GIBLE  PROPERTY,  INCLUDING INFORMATION TECHNOLOGY AND SOFTWARE, THAT IS
ELIGIBLE FOR TAX-EXEMPT  FINANCING  UNDER  THE  UNITED  STATES  INTERNAL
REVENUE CODE.
  The  term  "equipment loan" shall also mean the financing of equipment
acquisitions by the purchase, lease or  sublease  of  equipment  by  the
agency  and  the  lease  or  sublease  of such equipment to a non-profit

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD17864-01-0

S. 8339                             2

hospital corporation, a county hospital, a municipal hospital, a  hospi-
tal  under  the  jurisdiction  of the state university of New York, or a
non-profit corporation providing a residential health care facility  for
the  purpose  of providing for the acquisition of such equipment and for
the construction and rehabilitation related to the installation  thereof
AND SHALL ALSO INCLUDE INTELLECTUAL PROPERTY OR OTHER INTANGIBLE PROPER-
TY,  INCLUDING INFORMATION TECHNOLOGY AND SOFTWARE, THAT IS ELIGIBLE FOR
TAX-EXEMPT FINANCING UNDER THE UNITED STATES INTERNAL  REVENUE CODE.
  S 3. Subdivision 1 of section 5-b of section 1 of chapter 392  of  the
laws  of  1973,  constituting the New York state medical care facilities
finance agency act, as amended by chapter 363 of the laws  of  1998,  is
amended to read as follows:
  1.  The  agency  may  make  an equipment loan to a non-profit hospital
corporation, a county hospital, a municipal hospital, a New  York  state
department  of  health  facility,  a state university of New York health
care facility or a non-profit corporation providing a residential health
care facility, upon terms and conditions not inconsistent  with  article
twenty-eight of the public health law and this section.  The proceeds of
such  loan  are  to  be  used  substantially  to finance the acquisition
through purchase or lease of equipment including construction and  reha-
bilitation related to the installation of such equipment OR THE ACQUISI-
TION  OF  INTELLECTUAL  PROPERTY OR OTHER INTANGIBLE PROPERTY, INCLUDING
INFORMATION TECHNOLOGY AND SOFTWARE, THAT  IS  ELIGIBLE  FOR  TAX-EXEMPT
FINANCING UNDER THE UNITED STATES INTERNAL REVENUE CODE.
  S 4. Subdivision 1 of section 1679-b of the public authorities law, as
added by chapter 516 of the laws of 1997, is amended to read as follows:
  1.  The  dormitory authority may make an equipment loan to any private
entity for the benefit of which the dormitory authority is authorized to
issue bonds or other  obligations  of  the  dormitory  authority.    The
proceeds  of  such  a  loan  are to be used substantially to finance the
acquisition  through  purchase   or   lease   of   equipment   including
construction  and  rehabilitation  related  to  the installation of such
equipment OR THE ACQUISITION OF INTELLECTUAL PROPERTY OR OTHER  INTANGI-
BLE  PROPERTY,  INCLUDING  INFORMATION  TECHNOLOGY AND SOFTWARE, THAT IS
ELIGIBLE FOR TAX-EXEMPT  FINANCING  UNDER  THE  UNITED  STATES  INTERNAL
REVENUE CODE.  The dormitory authority may make an equipment loan by the
purchase,  lease or sublease of equipment by the dormitory authority and
the lease or sublease of such equipment to any such private  entity  for
the  purpose  of providing for the acquisition of such equipment and the
construction and rehabilitation related to the installation  thereof  OR
PURSUANT TO AN INSTALLMENT PURCHASE AGREEMENT.
  S 5. This act shall take effect immediately.

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