§ 48. Authorization for transportation infrastructure finance and
innovation act loans. 1. (a) Notwithstanding the provisions of any other
law to the contrary, each of the authorized issuers, as such term is
defined in paragraphs (a) and (b) of subdivision 1 of section 68-a of
the state finance law, are hereby authorized to accept transportation
infrastructure finance and innovation act (TIFIA) loans from the United
States of America, subject to any applicable agreement with bondholders
or noteholders, to enter into contracts, secured loan agreements,
service agreements or repayment agreements and to execute all
instruments necessary, convenient or desirable in connection therewith,
including, its bonds, notes or other obligations evidencing any such
loan from the United States of America, and to pledge and assign as
security for any such grants or loans, bonds or notes issued by such
authorized issuer or payments due to such authorized issuer in
connection therewith or revenues of such authorized issuer, as
applicable. The aggregate principal amount of bonds authorized to be
issued by the authorized issuers pursuant to this section shall not
exceed seven hundred fifty million dollars, excluding bonds issued to
fund one or more debt service reserve funds, to pay costs of issuance of
such bonds, and bonds, notes, or other obligations issued to refund or
otherwise repay such bonds, notes, or other obligations previously
issued. If such bonds, notes, or other obligations are secured by a
service contract with the state of New York, such bonds, notes, or other
obligations of the authorized issuers 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
authorized issuers for principal, interest, and related expenses
pursuant to a service contract and such bonds, notes, and other
obligations 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.

(b) Any bonds, notes, or other obligations issued pursuant to this
section shall (i) be in furtherance of capital projects and public
purposes consistent with the objectives of the TIFIA loans from the
United States of America, and (ii) any such financings shall provide a
demonstrable benefit to the state of New York and the authorized issuers
through a lower cost of financing than could otherwise be achieved, as
evidenced by a report from an independent financial advisor.

2. Notwithstanding the provisions of any other law to the contrary, in
order to assist the authorized issuers in undertaking the TIFIA loans
from the United States of America, the state of New York, acting through
the director of the budget, is hereby authorized to enter into one or
more service contracts with the authorized issuers upon such terms and
conditions as the director of the budget and the authorized issuers
agree, so as to annually provide to the authorized issuers, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds, notes, and other obligations. 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 appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
by the authorized issuers as security for their bonds, notes, and other
obligations as authorized by this section.

3. The state comptroller is hereby authorized to receive from the
authorized issuers TIFIA loan proceeds from the United States of
America, to reimburse the state for costs associated with capital
projects related thereto and to credit such amounts to the capital
projects fund or any other appropriate fund.

4. Prior to submitting a letter of interest to the United States
department of transportation for a TIFIA loan, the director of the
budget shall submit a report from an independent financial advisor to
the speaker of the assembly, the temporary president of the senate, the
chair of the senate finance committee and the chair of the assembly ways
and means committee evidencing a demonstrable benefit to the state of
New York through a lower cost of financing than could otherwise be
achieved.