Authorizes the NYS thruway authority to finance certain projects in connection with the canal system

Title of bill

An act to amend the public authorities law, in relation to the powers of the New York state thruway authority to finance certain projects in connection with the canal system including emergency projects

Purpose of bill

This bill would amend the Public Authorities Law ("PAL") to increase the Thruway Authority's bond authorization for Canal System purposes from $60 million to $160 million; and would increase the Canal System emergency bond authorization from $10 million to $20 million.

Summary of provisions

This bill would amend PAL § 383(1)(b) to increase the Thruway Authority's bond authorization for Canal System purposes from $60 million to $160 million and would amend PAL Section 383(1)(c) to increase the Canal related emergency bond authorization from $10 million to $20 million.

Existing law

PAL § 383 currently authorizes the Thruway Authority to issue bonds, notes or obligations not exceeding: (i) $60 million for Canal System projects; (ii) $10 million for Canal System projects deemed by the Thruway Authority as necessary due to the existence of an emergency involving danger to life, safety or property which requires immediate action. No such emergency bonds, notes or other obligations are authorized to be issued unless the Authority has already exhausted the $60 million in authorization.

Prior legislative history

This is a new bill.

Statement in support

Since the creation of the Canal Corporation as a subsidiary of the Thruway Authority and the transfer of the Canal System in 1992, the Authority has invested more than $785 million in Canal operations, maintenance, equipment and infrastructure, including nearly $70 million in bonds issued. As of J 996, the Thruway Authority exhausted its $60 million bond authorization to support investment in the Canal System and estimates the $10 million emergency bond authorization will be exhausted in 2009. Additional bonding authorization is required to finance Canal System infrastructure needs.

Due to the age of the Canal System, critical capital infrastructure repairs are required to ensure viability of its waterways and continued economic support to the Upstate local communities it serves. The Thruway Authority anticipates utilizing this increased bonding authority over the next 10 years to fund capital projects currently anticipated in its Multi-Year Capital Program as well as provide funding for future, additional capital projects. Additional capital investments could include embankment repairs, lock rehabilitations, new and improved waterway access and docking facilities as well as the repair of aging Canal maintenance facilities.

Budget implications

None to the State. The Thruway Authority will incur debt service payments until the maturity of any bonds or notes issued. EFFECTIVE DATE : This act shall take effect immediately, but shall be deemed effective as a cap on the use of proceeds for canal purposes with respect to any bonds, notes or other obligations issued pursuant to section 365 of the public authorities law any time after April 1, 2009.