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

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11559
 
                           I N  A S S E M B L Y
 
                               June 1, 2026
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Pretlow) --
   (at request of the Dormitory Authority) -- read once and  referred  to
   the Committee on Ways and Means
 
 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 101  of  the  laws  of
 2025, 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  [twenty  billion]  TWENTY-ONE  BILLION  EIGHT  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 repay-
 ment the total aggregate principal amount of outstanding bonds, notes or
 other obligations  may  be  greater  than  [twenty  billion]  TWENTY-ONE
 BILLION  EIGHT  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 obligations, 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  refunding  or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof  to  the date of issue of the refunding or repayment bonds, notes or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16063-01-6
 A. 11559                            2
 
 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 nurs-
 ing home capital reserve fund if upon issuance, the amount in the hospi-
 tal 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  require-
 ment.
   § 2. This act shall take effect immediately.