§ 48 — Authorization for transportation infrastructure finance and innovation act loans

§ 48. Authorization for transportation infrastructure finance and\ninnovation act loans. 1. (a) Notwithstanding the provisions of any other\nlaw to the contrary, each of the authorized issuers, as such term is\ndefined in paragraphs (a) and (b) of subdivision 1 of section 68-a of\nthe state finance law, are hereby authorized to accept transportation\ninfrastructure finance and innovation act (TIFIA) loans from the United\nStates of America, subject to any applicable agreement with bondholders\nor noteholders, to enter into contracts, secured loan agreements,\nservice agreements or repayment agreements and to execute all\ninstruments necessary, convenient or desirable in connection therewith,\nincluding, its bonds, notes or other obligations evidencing any such\nloan from the United States of America, and to pledge and assign as\nsecurity for any such grants or loans, bonds or notes issued by such\nauthorized issuer or payments due to such authorized issuer in\nconnection therewith or revenues of such authorized issuer, as\napplicable. The aggregate principal amount of bonds authorized to be\nissued by the authorized issuers pursuant to this section shall not\nexceed seven hundred fifty million dollars, excluding bonds issued to\nfund one or more debt service reserve funds, to pay costs of issuance of\nsuch bonds, and bonds, notes, or other obligations issued to refund or\notherwise repay such bonds, notes, or other obligations previously\nissued. If such bonds, notes, or other obligations are secured by a\nservice contract with the state of New York, such bonds, notes, or other\nobligations of the authorized issuers shall not be a debt of the state,\nand the state shall not be liable thereon, nor shall they be payable out\nof any funds other than those appropriated by the state to the\nauthorized issuers for principal, interest, and related expenses\npursuant to a service contract and such bonds, notes, and other\nobligations shall contain on the face thereof a statement to such\neffect. Except for purposes of complying with the internal revenue code,\nany interest income earned on bond proceeds shall only be used to pay\ndebt service on such bonds.\n (b) Any bonds, notes, or other obligations issued pursuant to this\nsection shall (i) be in furtherance of capital projects and public\npurposes consistent with the objectives of the TIFIA loans from the\nUnited States of America, and (ii) any such financings shall provide a\ndemonstrable benefit to the state of New York and the authorized issuers\nthrough a lower cost of financing than could otherwise be achieved, as\nevidenced by a report from an independent financial advisor.\n 2. Notwithstanding the provisions of any other law to the contrary, in\norder to assist the authorized issuers in undertaking the TIFIA loans\nfrom the United States of America, the state of New York, acting through\nthe director of the budget, is hereby authorized to enter into one or\nmore service contracts with the authorized issuers upon such terms and\nconditions as the director of the budget and the authorized issuers\nagree, so as to annually provide to the authorized issuers, in the\naggregate, a sum not to exceed the principal, interest, and related\nexpenses required for such bonds, notes, and other obligations. Any\nservice contract entered into pursuant to this section shall provide\nthat the obligation of the state to pay the amount therein provided\nshall not constitute a debt of the state within the meaning of any\nconstitutional or statutory provision and shall be deemed executory only\nto the extent of monies available and that no liability shall be\nincurred by the state beyond the monies available for such purpose,\nsubject to annual appropriation by the legislature. Any such contract or\nany payments made or to be made thereunder may be assigned and pledged\nby the authorized issuers as security for their bonds, notes, and other\nobligations as authorized by this section.\n 3. The state comptroller is hereby authorized to receive from the\nauthorized issuers TIFIA loan proceeds from the United States of\nAmerica, to reimburse the state for costs associated with capital\nprojects related thereto and to credit such amounts to the capital\nprojects fund or any other appropriate fund.\n 4. Prior to submitting a letter of interest to the United States\ndepartment of transportation for a TIFIA loan, the director of the\nbudget shall submit a report from an independent financial advisor to\nthe speaker of the assembly, the temporary president of the senate, the\nchair of the senate finance committee and the chair of the assembly ways\nand means committee evidencing a demonstrable benefit to the state of\nNew York through a lower cost of financing than could otherwise be\nachieved.\n