S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2706
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced  by M. of A. RA -- read once and referred to the Committee on
   Ways and Means
 
 AN ACT to amend chapter 174 of the laws of 1968,  constituting  the  New
   York state urban development corporation act, in relation to providing
   legislative  oversight on the issuance of short-term liquidity financ-
   ing

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 54-b of section 1 of chapter 174
 of the laws of 1968, constituting the New York state  urban  development
 corporation act, as added by section 54 of part FFF of chapter 56 of the
 laws of 2022, paragraph (b) as amended by section 54 of part XX of chap-
 ter 56 of the laws of 2024, is amended to read as follows:
   1.  Findings and declaration of need.  (a) The state of New York finds
 and determines that shortfalls in the  state's  financial  plan  arising
 from  adverse  economic and fiscal events and risks, disasters and emer-
 gencies, including but not limited to, public  health  emergencies,  may
 occur  or  develop, and that the financial impact of such events, risks,
 disasters and emergencies could be prudently mitigated by certain fiscal
 management authorization measures  being  legislatively  authorized  and
 established.
   (b)  Notwithstanding  any  other  provision  of  law  to the contrary,
 including, specifically, the provisions of chapter 59  of  the  laws  of
 2000  and  section sixty-seven-b of the state finance law, the dormitory
 authority of the state of  New  York  and  the  corporation  are  hereby
 authorized  to issue personal income tax revenue anticipation notes with
 a maturity no later than March 31, 2025, in one or  more  series  in  an
 aggregate  principal  amount  for  each  fiscal year not to exceed three
 billion dollars, and to pay costs of issuance of  such  notes,  for  the
 purpose  of  temporarily  financing  budgetary  needs of the state. Such
 purpose shall constitute an authorized purpose under subdivision two  of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05913-01-5
              

 A. 2706                             2
 
 section sixty-eight-a of the state finance law for all purposes of arti-
 cle five-C of the state finance law with respect to the notes authorized
 by  this  paragraph.  Such  notes  shall  not  be  renewed,  extended or
 refunded. For so long as any notes authorized by this paragraph shall be
 outstanding, the restrictions, limitations and requirements contained in
 article five-B of the state finance law shall not apply.
   (C) SUCH NOTES AS DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION SHALL
 ONLY  BE  ISSUED  IF  AND ONLY IF THERE SHALL HAVE BEEN EXECUTED IN SUCH
 FISCAL YEAR A WRITTEN CERTIFICATE SIGNED BY THE GOVERNOR, THE  TEMPORARY
 PRESIDENT  OF  THE  SENATE,  THE  SPEAKER OF THE ASSEMBLY, AND THE COMP-
 TROLLER WHICH SHALL SET FORTH THE EMERGENCY OR EXTRAORDINARY  FACTOR  OR
 FACTORS  UNANTICIPATED, AND UPON THE PASSAGE OF A LEGISLATIVE RESOLUTION
 BY TWO-THIRDS VOTE IN BOTH THE ASSEMBLY AND SENATE.
   [(c)] (D) Such notes of the dormitory authority  and  the  corporation
 shall  not  be  a  debt  of the state, and the state shall not be liable
 thereon, nor shall they be payable out of any  funds  other  than  those
 appropriated by the state to the dormitory authority and the corporation
 for  debt  service and related expenses pursuant to any financing agree-
 ment described in paragraph [(d)] (E)  of  this  subdivision,  and  such
 notes shall contain on the face thereof a statement to such effect. Such
 notes  shall  be  issued  on a subordinate basis and shall be secured by
 subordinate payments from the revenue bond tax fund established pursuant
 to section ninety-two-z of the state finance law. Except for purposes of
 complying with the internal revenue code, any interest income earned  on
 note  proceeds shall only be used to pay debt service on such notes. All
 of the provisions of the state finance law, the dormitory authority  act
 and this act relating to notes and bonds which are not inconsistent with
 the  provisions of this section shall apply to notes authorized by para-
 graph (b) of this subdivision, including but not limited to the power to
 establish adequate reserves therefor,  subject  to  the  final  maturity
 limitation  for  such  notes set forth in paragraph (b) of this subdivi-
 sion. The issuance of any notes authorized  by  paragraph  (b)  of  this
 subdivision  shall further be subject to the approval of the director of
 the division of the budget AND THE PASSAGE OF A  LEGISLATIVE  RESOLUTION
 AS REFERENCED IN PARAGRAPH (C) OF THIS SUBDIVISION.
   [(d)]  (E)  Notwithstanding  any  other law, rule or regulation to the
 contrary but subject to the limitations contained in  paragraph  (b)  of
 this  subdivision,  in  order  to assist the dormitory authority and the
 corporation in undertaking the  administration  and  financing  of  such
 notes, the director of the budget is hereby authorized to supplement any
 existing  financing  agreement  with  the dormitory authority and/or the
 corporation, or to enter into a new financing agreement with the  dormi-
 tory authority and/or the corporation, upon such terms and conditions as
 the  director  of  the budget and the dormitory authority and the corpo-
 ration shall agree, so as to provide to the dormitory authority and  the
 corporation,  a  sum not to exceed the debt service payments and related
 expenses required for any notes issued pursuant to paragraph (b) of this
 subdivision. Any financing agreement supplemented or entered into pursu-
 ant to this section shall provide that the obligation of  the  state  to
 pay the amount therein provided shall not constitute a debt of the state
 within  the  meaning  of  any  constitutional or statutory provision and
 shall be deemed executory only to the extent  of  monies  available  and
 that  no  liability  shall  be  incurred  by the state beyond the monies
 available for such purposes, subject  to  annual  appropriation  by  the
 legislature.  Any such financing agreement or any payments made or to be
 made thereunder may be assigned or pledged by  the  dormitory  authority
 A. 2706                             3
 
 and  the  corporation  as security for the notes authorized by paragraph
 (b) of this subdivision.
   [(e)]  (F) Notwithstanding any other provision of law to the contrary,
 including specifically the provisions of subdivision 3 of  section  67-b
 of  the  state finance law, no capital work or purpose shall be required
 for any issuance of  personal  income  tax  revenue  anticipation  notes
 issued  by the dormitory authority and the corporation pursuant to para-
 graph (b) of this subdivision.
   [(f)] (G) Notwithstanding any other law, rule, or  regulation  to  the
 contrary,  the  comptroller is hereby authorized and directed to deposit
 to the credit of the general fund, all proceeds of personal  income  tax
 revenue anticipation notes issued by the dormitory authority and the New
 York  state  urban  development corporation pursuant to paragraph (b) of
 this subdivision.
   § 2. This act shall take effect immediately.