NY State Senate Bill 2025-S1235

Senate Bill S1235

2025-2026 Legislative Session

Relates to the ability of the New York state medical care facilities finance agency to issue certain bonds and notes

download bill text pdf

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to corporations, authorities and commissions

2025-S1235 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Medical Care Facilities Finance Agency Act
Laws Affected:: Amd §7, NYS Med Care Fac Fin Ag Act

2025-S1235 (ACTIVE) - Summary

Increases the authorization of the Dormitory Authority of the State of New York ("DASNY"), as successor to the New York State Medical Care Facilities Finance Agency ("MCFFA") pursuant to the Health Care Financing Consolidation Act of 1995, to issue hospital and nursing home project bonds and notes from $18.2 billion to $20 billion.

2025-S1235 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1235

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the New York state medical care facilities finance agen-
cy act, in relation to the ability to issue certain bonds and notes

 
PURPOSE:

To increase the bond ceiling for the Dormitory Authority of the State of
New York by $1.8 billion

 
SUMMARY OF PROVISIONS:

Section 1: increases statutory bond ceiling in the medical care facili-
ties finance agency act (MCFFA) from $18.2 billion to $20 billion.

Section 2: Effective date.

 
JUSTIFICATION:

This bill is necessary to ensure that upgrades to medical facilities can
remain funded through 2025.

Under current law, DASNY is authorized to issue hospital and nursing
home project bonds and notes under the MCFFA Act in the aggregate amount
of up to $18.2 billion. DASNY issues such bonds and notes to fund loans
to not-for-profit hospital and nursing home corporations.

This authorization was most recently increased by $800 million (from
$17.4 billion to $18.2 billion) in 2023. Previously the existing bond
cap was increased by $800 million in 2021; 2018; 2011; 2009; 2008.

In recent years, DASNY has seen increased activity in the bond market in
both the number and dollar amount of healthcare financings. In July of
2024, DASNY had available approximately $1.367 billion of bond cap for
healthcare transactions. Subsequently, several hospitals contacted DASNY
regarding their financing needs.

As of mid-September 2024, the DASNY Board has authorized three new MCFFA
financings which will utilize cap in the amount of $1.222 billion -
leaving DASNY with MCFFA bond capacity of approximately $145 million.
Unfortunately, that is not enough for new MCFFA projects across New York
in the near term.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
BUDGET IMPLICATIONS:

None noted.

 
EFFECTIVE DATE:
Immediately.

2025-S1235 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1235
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN ACT to amend the New York state medical care facilities finance agen-
   cy act, in relation to the ability to issue certain bonds and notes

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of
 chapter 392 of the laws of 1973, constituting the New York state medical
 care facilities agency act, as amended by chapter 469  of  the  laws  of
 2023, is amended to read as follows:
   (b) The agency shall not issue hospital and nursing home project bonds
 and  hospital  and  nursing home project notes in an aggregate principal
 amount  exceeding  [eighteen]  TWENTY  billion  [two  hundred   million]
 dollars,  excluding hospital and nursing home project bonds and hospital
 and nursing home project notes issued to refund outstanding hospital and
 nursing home projects bonds and hospital and nursing home project notes;
 provided, however, that upon any such refunding or repayment  the  total
 aggregate  principal  amount  of outstanding bonds, notes or other obli-
 gations may be greater  than  [eighteen]  TWENTY  billion  [two  hundred
 million] dollars only if the present value of the aggregate debt service
 of  the  refunding  or repayment bonds, notes or other obligations to be
 issued shall not exceed the present value of the aggregate debt  service
 of  the  bonds,  notes or other obligations so to be refunded or repaid.
 For purposes hereof, the present values of the aggregate debt service of
 the refunding or repayment bonds, notes or other obligations and of  the
 aggregate  debt  service  of  the  bonds,  notes or other obligations so
 refunded or repaid, shall  be  calculated  by  utilizing  the  effective
 interest  rate of the refunding or repayment bonds, notes or other obli-
 gations, which shall be that rate arrived at by doubling the semi-annual
 interest rate (compounded semi-annually) necessary to discount the  debt
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01483-01-5

 S. 1235                             2
 
 service  payments  on  the  refunding or repayment bonds, notes or other
 obligations from the payment dates thereof to the date of issue  of  the
 refunding  or  repayment  bonds,  notes  or other obligations and to the
 price  bid  including estimated accrued interest or proceeds received by
 the agency including estimated accrued interest from the  sale  thereof.
 The  agency  shall  not issue hospital and nursing home project bonds at
 any time secured by the hospital and nursing home capital  reserve  fund
 if  upon  issuance,  the amount in the hospital and nursing home capital
 reserve fund will be less than the hospital  and  nursing  home  capital
 reserve  fund requirement, unless the agency, at the time of issuance of
 such bonds, shall deposit in such reserve fund from the proceeds of  the
 bonds  so  to be issued, or otherwise, an amount which together with the
 amount then in such reserve fund, will be not less than the hospital and
 nursing home capital reserve fund requirement.
   § 2. This act shall take effect immediately.

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