NY State Assembly Bill 2025-A4004

Assembly Bill A4004

2025-2026 Legislative Session

Requires legislative oversight for debt issuances that reach maturity if such maturity exceeds thirty years

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Current Bill Status - In Assembly Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 30, 2025	referred to corporations, authorities and commissions

2025-A4004 (ACTIVE) - Details

Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §386-a, Pub Auth L; amd §67-b, St Fin L

2025-A4004 (ACTIVE) - Summary

Requires legislative oversight for debt issuances that reach maturity if such maturity exceeds thirty years; provides for the procedure for such debt issuance by the legislature.

2025-A4004 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4004
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section  1.  Section  386-a of the public authorities law, as added by
 section 46 of part U of chapter 59 of the laws of 2012 and subdivision 1
 as amended by section 55 of part XX of chapter 56 of the laws  of  2024,
 is amended to read as follows:
   §  386-a.  Financing  of  metropolitan  transportation authority (MTA)
 transportation facilities. 1. Notwithstanding any other provision of law
 to the contrary, the authority, the dormitory authority  and  the  urban
 development corporation are hereby authorized to issue bonds or notes in
 one  or more series for the purpose of assisting the metropolitan trans-
 portation authority in the financing  of  transportation  facilities  as
 defined  in subdivision seventeen of section twelve hundred sixty-one of
 this chapter or other capital projects. The aggregate  principal  amount
 of  bonds  authorized  to  be  issued pursuant to this section shall not
 exceed twelve billion five hundred fifteen million eight hundred  fifty-
 six thousand dollars $12,515,856,000, excluding bonds issued to fund one
 or  more  debt  service  reserve funds, to pay costs of issuance of such
 bonds, and to refund or otherwise repay such bonds or  notes  previously
 issued.  Such  bonds and notes of the authority, the dormitory authority
 and the urban development 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 authori-
 ty, the dormitory authority and the urban  development  corporation  for
 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
 
 and  such  bonds and notes shall contain on the face thereof a statement
 to such effect. Except for  purposes  of  complying  with  the  internal
 revenue  code, any interest income earned on bond proceeds shall only be
 used  to  pay  debt  service  on  such  bonds. Notwithstanding any other
 provision of law to the contrary, including the limitations contained in
 subdivision four of section sixty-seven-b of the state finance law,  (A)
 any  bonds and notes issued [prior to] BETWEEN April first, two thousand
 [twenty-seven] TWENTY-FIVE AND MARCH THIRTY-FIRST, TWO THOUSAND  TWENTY-
 SIX  pursuant  to  this section may be issued with a maximum maturity of
 fifty years, and (B) any bonds issued to refund such bonds and notes may
 be issued with a maximum maturity of fifty  years  from  the  respective
 date of original issuance of such bonds and notes.
   2.  IF THE AUTHORITY, THE DORMITORY AUTHORITY OR THE URBAN DEVELOPMENT
 CORPORATION DETERMINES THAT ISSUING DEBT WITH A FINAL MATURITY EXCEEDING
 THIRTY YEARS IS NECESSARY, IT SHALL:
   (A) PREPARE A COMPREHENSIVE COST-BENEFIT  ANALYSIS  DEMONSTRATING  THE
 PUBLIC  BENEFIT OF SUCH EXTENDED MATURITY DEBT. SUCH COST-BENEFIT ANALY-
 SIS SHALL INCLUDE THE:
   (I) PROJECTED CASH FLOWS OVER THE LIFE OF THE DEBT;
   (II) COMPARISON OF TOTAL COSTS BETWEEN THE PROPOSED EXTENDED  MATURITY
 AND A THIRTY YEAR ALTERNATIVE;
   (III) POTENTIAL RISKS AND MITIGATION STRATEGIES; AND
   (IV)  IMPACT ON THE AUTHORITY'S OVERALL DEBT OUTSTANDING, DEBT SERVICE
 AND CREDIT RATING, AND IF APPLICABLE, THE IMPACT ON THE STATE'S  OVERALL
 DEBT OUTSTANDING, DEBT SERVICE AND CREDIT RATING.
   (B)  SUBMIT  SUCH ANALYSIS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
 SION, ALONG WITH A DETAILED JUSTIFICATION, TO:
   (I) THE CHAIR AND RANKING  MEMBER  OF  THE  ASSEMBLY  WAYS  AND  MEANS
 COMMITTEE;
   (II) THE CHAIR AND RANKING MEMBER OF THE SENATE FINANCE COMMITTEE;
   (III) THE DIRECTOR OF THE DIVISION OF THE BUDGET; AND
   (IV) THE STATE COMPTROLLER.
   (C)  OBTAIN  WRITTEN APPROVAL FROM THE DIRECTOR OF THE DIVISION OF THE
 BUDGET AND THE STATE COMPTROLLER.
   (D) AFTER OBTAINING APPROVAL FROM THE DIRECTOR OF THE DIVISION OF  THE
 BUDGET  AND  THE  STATE  COMPTROLLER  PURSUANT  TO PARAGRAPH (C) OF THIS
 SUBDIVISION, SUBMIT A REQUEST FOR LEGISLATIVE  APPROVAL  TO  ISSUE  SUCH
 DEBT  TO  BOTH  HOUSES  OF  THE  LEGISLATURE,  AND SHALL COMPLY WITH THE
 FOLLOWING:
   (I) SUCH REQUEST SHALL INCLUDE THE COMPREHENSIVE COST-BENEFIT ANALYSIS
 PREPARED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION,  ALL  SUPPORTING
 DOCUMENTATION,  AND  THE  APPROVALS FROM THE DIRECTOR OF THE DIVISION OF
 THE BUDGET AND THE STATE COMPTROLLER.
   (II) BOTH THE ASSEMBLY AND SENATE SHALL PASS  A  RESOLUTION  APPROVING
 THE  ISSUANCE  OF  SUCH  STATE-SUPPORTED  DEBT WITH A MATURITY EXCEEDING
 THIRTY YEARS BY A SIMPLE MAJORITY VOTE. IF EITHER HOUSE FAILS TO APPROVE
 SUCH RESOLUTION WITHIN THIRTY DAYS OF SUBMISSION, THE REQUEST  SHALL  BE
 DEEMED DENIED.
   (III)  THE AUTHORITY, THE DORMITORY AUTHORITY OR THE URBAN DEVELOPMENT
 CORPORATION SHALL NOT PROCEED WITH THE  ISSUANCE  OF  THE  DEBT  AT  THE
 EXTENDED  MATURITY  UNTIL  IT  RECEIVES APPROVAL FROM BOTH HOUSES OF THE
 LEGISLATURE.
   (E) NOTHING IN THIS SECTION  SHALL  SUPERSEDE  THE  AUTHORITY  OF  THE
 PUBLIC  AUTHORITIES  CONTROL  BOARD AS OUTLINED IN ARTICLE ONE-A OF THIS
 CHAPTER.
 A. 4004                             3
 
   3. Notwithstanding any other provision of  law  to  the  contrary,  in
 order  to  assist  the  authority, the dormitory authority and the urban
 development corporation in undertaking the financing of such transporta-
 tion facilities projects, the director of the budget is  hereby  author-
 ized to enter into one or more service contracts with the authority, the
 dormitory authority and the urban development corporation, none of which
 shall exceed thirty years in duration, upon such terms and conditions as
 the  director  of  the budget and the authority, the dormitory authority
 and the urban development corporation agree, so as to  annually  provide
 to  the  authority,  the  dormitory  authority and the urban development
 corporation, in the aggregate, a sum not to exceed the principal, inter-
 est, and related expenses required for such bonds and notes. Any service
 contract entered into pursuant 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 purpose, subject to  annual  appro-
 priation  by  the legislature. Any such service contract or any payments
 made or to be made thereunder may be assigned and pledged by the author-
 ity, the dormitory authority and the urban  development  corporation  as
 security for such bonds and notes, as authorized by this section.
   §  2. Subdivision 4 of section 67-b of the state finance law, as added
 by chapter 59 of the laws of 2000, is amended to read as follows:
   4. Notwithstanding any other provision of  law  to  the  contrary,  no
 state-supported  debt shall be issued with a final maturity of more than
 thirty years. IF A PUBLIC AUTHORITY DETERMINES THAT ISSUING DEBT WITH  A
 FINAL MATURITY EXCEEDING THIRTY YEARS IS NECESSARY, IT SHALL:
   (A)  PREPARE  A  COMPREHENSIVE COST-BENEFIT ANALYSIS DEMONSTRATING THE
 PUBLIC BENEFIT OF SUCH EXTENDED MATURITY DEBT. SUCH COST-BENEFIT  ANALY-
 SIS SHALL INCLUDE THE:
   (I) PROJECTED CASH FLOWS OVER THE LIFE OF THE DEBT;
   (II)  COMPARISON OF TOTAL COSTS BETWEEN THE PROPOSED EXTENDED MATURITY
 AND A THIRTY YEAR ALTERNATIVE;
   (III) POTENTIAL RISKS AND MITIGATION STRATEGIES; AND
   (IV) IMPACT ON THE AUTHORITY'S OVERALL DEBT OUTSTANDING, DEBT  SERVICE
 AND  CREDIT RATING, AND IF APPLICABLE, THE IMPACT ON THE STATE'S OVERALL
 DEBT OUTSTANDING, DEBT SERVICE AND CREDIT RATING.
   (B) SUBMIT SUCH ANALYSIS DESCRIBED IN PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION, ALONG WITH A DETAILED JUSTIFICATION, TO:
   (I)  THE  CHAIR  AND  RANKING  MEMBER  OF  THE ASSEMBLY WAYS AND MEANS
 COMMITTEE;
   (II) THE CHAIR AND RANKING MEMBER OF THE SENATE FINANCE COMMITTEE;
   (III) THE DIRECTOR OF THE DIVISION OF THE BUDGET; AND
   (IV) THE STATE COMPTROLLER.
   (C) OBTAIN WRITTEN APPROVAL FROM THE DIRECTOR OF THE DIVISION  OF  THE
 BUDGET AND THE STATE COMPTROLLER.
   (D)  AFTER OBTAINING APPROVAL FROM THE DIRECTOR OF THE DIVISION OF THE
 BUDGET AND THE STATE COMPTROLLER  PURSUANT  TO  PARAGRAPH  (C)  OF  THIS
 SUBDIVISION,  SUBMIT  A  REQUEST  FOR LEGISLATIVE APPROVAL TO ISSUE SUCH
 DEBT TO BOTH HOUSES OF  THE  LEGISLATURE,  AND  SHALL  COMPLY  WITH  THE
 FOLLOWING:
   (I) SUCH REQUEST SHALL INCLUDE THE COMPREHENSIVE COST-BENEFIT ANALYSIS
 PREPARED  PURSUANT  TO PARAGRAPH (A) OF THIS SUBDIVISION, ALL SUPPORTING
 DOCUMENTATION, AND THE APPROVALS FROM THE DIRECTOR OF  THE  DIVISION  OF
 THE BUDGET AND THE STATE COMPTROLLER.
 A. 4004                             4
 
   (II)  BOTH  THE  ASSEMBLY AND SENATE SHALL PASS A RESOLUTION APPROVING
 THE ISSUANCE OF SUCH STATE-SUPPORTED  DEBT  WITH  A  MATURITY  EXCEEDING
 THIRTY YEARS BY A SIMPLE MAJORITY VOTE. IF EITHER HOUSE FAILS TO APPROVE
 SUCH  RESOLUTION  WITHIN THIRTY DAYS OF SUBMISSION, THE REQUEST SHALL BE
 DEEMED DENIED.
   (III)  A  PUBLIC  AUTHORITY SHALL NOT PROCEED WITH THE ISSUANCE OF THE
 DEBT AT THE EXTENDED MATURITY UNTIL IT RECEIVES APPROVAL FROM BOTH HOUS-
 ES OF THE LEGISLATURE.
   (E) NOTHING IN THIS SECTION  SHALL  SUPERSEDE  THE  AUTHORITY  OF  THE
 PUBLIC  AUTHORITIES  CONTROL  BOARD  AS OUTLINED IN ARTICLE ONE-A OF THE
 PUBLIC AUTHORITIES LAW.
   § 3. This act shall take effect on April 1, 2025 and shall expire  and
 be deemed repealed March 31, 2026.

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