§ 1680-R — Authorization for the issuance of bonds for the capital restructuring financing program, the health care facility transformation programs...

§ 1680-r. Authorization for the issuance of bonds for the capital\nrestructuring financing program, the health care facility transformation\nprograms, and the essential health care provider program. 1.\nNotwithstanding the provisions of any other law to the contrary, the\ndormitory authority and the urban development corporation are hereby\nauthorized to issue bonds or notes in one or more series for the purpose\nof funding project costs for the capital restructuring financing program\nfor health care and related facilities licensed pursuant to the public\nhealth law or the mental hygiene law and other state costs associated\nwith such capital projects, the health care facility transformation\nprograms, the essential health care provider program, and other health\ncare capital project costs. The aggregate principal amount of bonds\nauthorized to be issued pursuant to this section shall not exceed six\nbillion one hundred sixty-eight million dollars $6,168,000,000,\nexcluding bonds issued to fund one or more debt service reserve funds,\nto pay costs of issuance of such bonds, and bonds or notes issued to\nrefund or otherwise repay such bonds or notes previously issued. Such\nbonds and notes of the dormitory authority and the urban development\ncorporation shall not be a debt of the state, and the state shall not be\nliable thereon, nor shall they be payable out of any funds other than\nthose appropriated by the state to the dormitory authority and the urban\ndevelopment corporation for principal, interest, and related expenses\npursuant to a service contract and such bonds and notes shall contain on\nthe face thereof a statement to such effect. Except for purposes of\ncomplying with the internal revenue code, any interest income earned on\nbond proceeds shall only be used to pay debt service on such bonds.\n 2. Notwithstanding any other provision of law to the contrary, in\norder to assist the dormitory authority and the urban development\ncorporation in undertaking the financing for project costs for the\ncapital restructuring financing program for health care and related\nfacilities licensed pursuant to the public health law or the mental\nhygiene law and other state costs associated with such capital projects,\nthe health care facility transformation programs, and the essential\nhealth care provider program, the director of the budget is hereby\nauthorized to enter into one or more service contracts with the\ndormitory authority and the urban development corporation, none of which\nshall exceed thirty years in duration, upon such terms and conditions as\nthe director of the budget and the dormitory authority and the urban\ndevelopment corporation agree, so as to annually provide to the\ndormitory authority and the urban development corporation, in the\naggregate, a sum not to exceed the principal, interest, and related\nexpenses required for such bonds and notes. Any service contract entered\ninto pursuant to this section shall provide that the obligation of the\nstate to pay the amount therein provided shall not constitute a debt of\nthe state within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent of monies\navailable and that no liability shall be incurred by the state beyond\nthe monies available for such purpose, subject to annual appropriation\nby the legislature. Any such contract or any payments made or to be made\nthereunder may be assigned and pledged by the dormitory authority and\nthe urban development corporation as security for its bonds and notes,\nas authorized by this section.\n