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History
- Substituted by A11546
- Ordered to third reading cal.1414
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the powers and duties of the dormitory authority and equipment loans for intellectual property
Signed by Governor · Sponsor David Gantt
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S8339
Title of bill
An act to amend the public authorities law, in relation to the powers and duties of the dormitory authority; and to amend the New York state medical care facilities finance agency act, in relation to equipment loans for intellectual property
Purpose of bill
To address a technical deficiency within the law that authorizes the Dormitory Authority of the State of New York (DASNY) through its Tax Exempt Leasing Program (TELP) to finance the lease acquisition of certain equipment. The new provision would explicitly include health information technology equipment, software, intellectual property, other intangible property and ancillary costs associated with that equipment.
Read the full memo (699 words)
Summary of provisions
§ 1. Amends Subdivision 2 of section 1676 of the public authorities law by adding a new paragraph (h) to include equipment, intellectual proper- ty or other intangible property, including information technology and software, making those items eligible for tax-exempt financing under the United States internal revenue code.
§2. Amends Subdivision 18 of section 7413 of the unconsolidated laws to define "Equipment loan" s to be consistent with the provisions outlined in section 1 of the bill.
§3. Amends Subdivision 1 of section 74l5-b of the unconsolidated laws to be consistent with the changes made in sections 1 and 2 of the legis- lation with respect to equipment loans.
§4. Amends Subdivision 1 of section l679-b of the public authorities law to be consistent with the changes made in sections 1 and 2 of the legis- lation.
§5. Sets forth an immediate effective date for the legislation.
Existing law
The Dormitory Authority of the State of New York (DASNY) through its Tax Exempt Leasing Program (TELP) currently is authorized to provide financ- ing for equipment loans. However, the ability to finance ancillary acquisitions and other intangible property is Not explicitly included in that authorization.
Prior legislative history
This is new legislation.
Justification
The Dormitory Authority currently operates a significant Tax Exempt Leasing Program (more than $250 million for fiscal year 2009/2010) that finances the procurement of equipment for numerous institutions such as not for profit hospitals, universities, colleges, and other DASNY not- for-profit clients. As institutions in New York State, especially the healthcare industry, move toward a more efficient record-keeping and record-sharing, it is important that they be equipped with the tools needed to achieve that goal. Under current law, the Dormitory Authority of the State of New York ("DASNY"), through its Tax-Exempt Leasing Program ("Program"), provides the industry with one such tool. The TELP program converts commercial equipment leases to tax-exempt equipment leases. It allows DASNY to confer tax-exempt status to the equipment lease and thereby reduce the borrowing cost for such assets and equip- ment on behalf of not- for-profit organizations. All funds are provided by third party lenders, ie. private financial institutions.
This bill seeks to enhance Program services by specifying certain addi- tional allowable activities including lease financing of electronic medical records ("EMR") projects, and the associated activities neces- sary for their implementation and development. These activities would include but not be limited to stand-alone software and hardware, consultant costs, licensure, implementation, training and other capital costs that are necessary to make such projects and equipment/technology functional, operable and serviceable.
This bill would assist DASNY's not-for-profit clients, primarily health- care institutions, to invest in technology equipment and software there- by preserving jobs, and maintaining current technology and related proficiency state-wide. Further, EMR technology is often an extraor- dinarily significant fiscal item, exceeding $50 or $60 million in many instances. Healthcare facilities are finding these projects difficult to complete without funding assistance and have sought such assistance from DASNY in the form of tax-exempt leasing under the TELP program.
This emerging need, to reduce the financing costs of these acquisitions, can be addressed by clarifying the current TELP statute. This legis- lation would allow health care institutions to access funding for the procurement of health information technology equipment software and associated ancillary implementation and licensure costs connected to the equipment.
Fiscal implications
No cost to the State. Failure to adopt these provisions could result in the loss of approximately $250 million in equipment projects over the next few months.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.