S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10256
 
                           I N  A S S E M B L Y
 
                               May 15, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Kim) -- read
   once  and  referred  to the Committee on Corporations, Authorities and
   Commissions
 
 AN ACT to amend the public authorities law, in relation  to  authorizing
   the  Dormitory  Authority to provide public financing options to build
   new police facilities in certain areas

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  public  authorities  law  is amended by adding a new
 section 1680-s to read as follows:
   § 1680-S. AUTHORITY FINANCING OF ADDITIONAL POLICE PRECINCTS.  1.  THE
 DORMITORY  AUTHORITY  IS  HEREBY  AUTHORIZED  TO FINANCE ELIGIBLE POLICE
 PRECINCT FACILITIES AND BUILDINGS IN ANY AREA  IN  WHICH  THREE  HUNDRED
 THOUSAND PEOPLE OR MORE ARE SERVED BY ONE POLICE PRECINCT.
   2.  (A) SUBJECT TO THE PROVISIONS OF CHAPTER FIFTY-NINE OF THE LAWS OF
 TWO THOUSAND AND TO THE MAKING OF ANNUAL APPROPRIATIONS THEREFOR BY  THE
 LEGISLATURE, IN ORDER TO ASSIST THE DORMITORY AUTHORITY IN PROVIDING FOR
 THE FINANCING OF ADDITIONAL POLICE PRECINCTS, THE DIRECTOR OF THE BUDGET
 IS AUTHORIZED IN ANY STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOU-
 SAND  TWENTY-FIVE  OR ANY STATE FISCAL YEAR THEREAFTER TO ENTER INTO ONE
 OR MORE SERVICE CONTRACTS, NONE OF WHICH SHALL EXCEED  THIRTY  YEARS  IN
 DURATION,  WITH THE DORMITORY AUTHORITY, UPON SUCH TERMS AS THE DIRECTOR
 OF THE BUDGET AND THE DORMITORY AUTHORITY AGREE.
   (B) ANY SERVICE CONTRACT ENTERED INTO PURSUANT  TO  PARAGRAPH  (A)  OF
 THIS  SUBDIVISION  OR  ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE
 ASSIGNED AND PLEDGED BY THE DORMITORY  AUTHORITY  AS  SECURITY  FOR  ITS
 BONDS, NOTES, OR OTHER OBLIGATIONS.
   (C)  ANY  SUCH  SERVICE CONTRACTS SHALL PROVIDE THAT THE OBLIGATION OF
 THE DIRECTOR OF THE BUDGET OR OF THE STATE TO FUND OR TO PAY THE AMOUNTS
 THEREIN PROVIDED FOR SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE
 MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION IN  THE  EVENT  THE
 DORMITORY  AUTHORITY ASSIGNS OR PLEDGES THE SERVICE CONTRACT PAYMENTS AS
 SECURITY FOR ITS BONDS, NOTES, OR OTHER OBLIGATIONS AND SHALL BE  DEEMED
 EXECUTORY  ONLY TO THE EXTENT MONIES ARE AVAILABLE AND THAT NO LIABILITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15504-01-4
 A. 10256                            2

 SHALL BE INCURRED BY THE STATE  BEYOND  THE  MONIES  AVAILABLE  FOR  THE
 PURPOSE, AND THAT SUCH OBLIGATION IS SUBJECT TO ANNUAL APPROPRIATIONS BY
 THE LEGISLATURE.
   (D)  ANY  SERVICE  CONTRACT OR CONTRACTS ENTERED INTO PURSUANT TO THIS
 SUBDIVISION SHALL PROVIDE FOR STATE COMMITMENTS TO PROVIDE  ANNUALLY  TO
 THE DORMITORY AUTHORITY A SUM OR SUMS, UPON SUCH TERMS AND CONDITIONS AS
 SHALL  BE  DEEMED APPROPRIATE BY THE DIRECTOR OF THE BUDGET, TO FUND THE
 PRINCIPAL, INTEREST, OR OTHER RELATED PAYMENTS REQUIRED FOR  ANY  BONDS,
 NOTES,  OR  OTHER OBLIGATIONS OF THE DORMITORY AUTHORITY ISSUED PURSUANT
 TO THIS SECTION.
   3. (A) TO OBTAIN FUNDS FOR THE PURPOSES OF THIS SECTION, THE AUTHORITY
 SHALL HAVE POWER FROM TIME TO TIME TO ISSUE NEGOTIABLE BONDS  OR  NOTES.
 UNLESS  THE CONTEXT SHALL CLEARLY INDICATE OTHERWISE, WHENEVER THE WORDS
 "BOND" OR "BONDS" ARE USED IN THIS SECTION, SUCH WORDS SHALL  INCLUDE  A
 NOTE OR NOTES OF THE AUTHORITY.
   (B)  THE  DORMITORY AUTHORITY SHALL NOT ISSUE ANY BONDS OR NOTES IN AN
 AMOUNT IN EXCESS OF FIFTY MILLION  DOLLARS  FOR  THE  PURPOSES  OF  THIS
 SECTION;  EXCLUDING  BONDS  OR  NOTES  ISSUED  TO  FUND ONE OR MORE DEBT
 SERVICE RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS
 OR NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES  PREVI-
 OUSLY ISSUED. EXCEPT FOR PURPOSES OF COMPLYING WITH THE INTERNAL REVENUE
 CODE,  ANY  INTEREST  ON  BOND  PROCEEDS  SHALL ONLY BE USED TO PAY DEBT
 SERVICE ON SUCH BONDS.
   (C) IN COMPUTING FOR THE PURPOSES OF PARAGRAPH (B)  OF  THIS  SUBDIVI-
 SION,  THE AGGREGATE AMOUNT OF INDEBTEDNESS EVIDENCED BY BONDS AND NOTES
 OF THE DORMITORY AUTHORITY ISSUED PURSUANT TO THIS TITLE, THERE SHALL BE
 EXCLUDED THE AMOUNT OF SUCH INDEBTEDNESS REPRESENTED BY  SUCH  BONDS  OR
 NOTES  ISSUED TO REFUND OR OTHERWISE REPAY BONDS OR NOTES; PROVIDED THAT
 THE AMOUNT SO EXCLUDED UNDER THIS PARAGRAPH  MAY  EXCEED  THE  PRINCIPAL
 AMOUNT  OF  SUCH  BONDS OR NOTES THAT WERE ISSUED TO REFUND OR OTHERWISE
 REPAY ONLY IF THE PRESENT VALUE OF THE AGGREGATE  DEBT  SERVICE  ON  THE
 REFUNDING  OR  REPAYMENT  BONDS  OR  NOTES SHALL NOT HAVE AT THE TIME OF
 THEIR ISSUANCE EXCEEDED THE PRESENT VALUE OF THE AGGREGATE DEBT  SERVICE
 OF  THE BONDS OR NOTES THEY WERE ISSUED TO REFUND OR REPAY, SUCH PRESENT
 VALUE IN EACH CASE BEING CALCULATED BY USING THE EFFECTIVE INTEREST RATE
 OF THE REFUNDING OR REPAYMENT BONDS OR NOTES, WHICH SHALL BE  THAT  RATE
 ARRIVED  AT  BY DOUBLING THE SEMI-ANNUAL INTEREST RATE (COMPOUNDED SEMI-
 ANNUALLY) NECESSARY TO DISCOUNT THE DEBT SERVICE PAYMENTS ON THE REFUND-
 ING OR REPAYMENT BONDS OR NOTES FROM THE PAYMENT  DATE  THEREOF  TO  THE
 DATE  OF  ISSUE  OF THE REFUNDING OR REPAYMENT BONDS OR NOTES AND TO THE
 PRICE BID THEREFOR, OR TO THE PROCEEDS RECEIVED BY THE DORMITORY AUTHOR-
 ITY FROM THE SALE THEREOF, IN  EACH  CASE  INCLUDING  ESTIMATED  ACCRUED
 INTEREST.
   (D)  THE STATE OF NEW YORK HEREBY COVENANTS WITH THE PURCHASERS, HOLD-
 ERS, AND OWNERS FROM TIME TO TIME OF THE BONDS OF THE  AUTHORITY  ISSUED
 PURSUANT  TO THIS SECTION THAT IT WILL NOT, SUBJECT TO THE PROVISIONS OF
 PARAGRAPH (C) OF  SUBDIVISION  TWO  OF  THIS  SECTION,  REPEAL,  REVOKE,
 RESCIND, MODIFY, OR AMEND THE PROVISIONS OF THIS SECTION WHICH RELATE TO
 THE  MAKING  OF  ANNUAL  SERVICE CONTRACT PAYMENTS TO THE AUTHORITY WITH
 RESPECT TO SUCH BONDS AS TO LIMIT, IMPAIR,  OR  IMPEDE  THE  RIGHTS  AND
 REMEDIES  GRANTED  TO BONDHOLDERS UNDER THIS TITLE OR OTHERWISE DIMINISH
 THE SECURITY PLEDGED TO SUCH PURCHASERS, HOLDERS, AND OWNERS OR  SIGNIF-
 ICANTLY IMPAIR THE PROSPECT OF PAYMENT OF ANY SUCH BOND.
   § 2. Section 1676 of the public authorities law is amended by adding a
 new subdivision 37 to read as follows:
 A. 10256                            3
 
   37. "ELIGIBLE POLICE PRECINCT FACILITIES" SHALL MEAN A PROJECT FOR THE
 DESIGN,  ACQUISITION,  CONSTRUCTION,  REHABILITATION  OR  IMPROVEMENT OF
 POLICE PRECINCT FACILITIES AS SET FORTH  IN  AN  AGREEMENT  BETWEEN  THE
 AUTHORITY  AND THE DIRECTOR OF THE BUDGET PROVIDING FOR THE FINANCING OF
 SUCH IMPROVEMENTS.
   § 3. This act shall take effect immediately.