Establishes the New York state infrastructure development bank; appropriation

Summary of specific provisions

Section 1 would name the act the "New York state infrastructure development bank act". Section 2 would amend the banking law by establishing a new article 17 which creates the New York State Infrastructure Development Bank. Section 9100 defines the terms "bank", "board", "chief asset and liability management officer", "chief compliance officer", "chief financial officer", "chief loan origination officer", "chief operations officer", "chief risk officer", "chief treasury officer", "development", "disadvantaged community", "energy infrastructure project", "entity", "environmental infrastructure project", "executive director", "general counsel", "infrastructure project", "public benefit bond", "public private partnership", "revolving fund", "smart grid", "smart growth", "state", "telecommunications infrastructure project", and "transportation infrastructure project".

Section 9101 establishes within the department the New York state infrastructure development bank.

Section 9102 outlines the powers and duties of the board of directors of the bank.

Section 9103 outlines the powers and duties of the executive committee of the bank.

Section 9104 outlines the powers and duties of the Risk management committee of the bank.

Section 9105 outlines the powers and duties of the audit committee of the bank.

Section 9106 establishes the eligibility criteria and assistance, stating that no financial assistance shall be available under the article unless the applicant for assistance has demonstrated to the satisfaction of the board that the project for which assistance is being sought meets (a) the requirements of the article, and (b) any criteria established by the board.

The board shall establish criteria for determining eligibility for financial assistance under this article.

Section 9107 exempts any notes, debentures, bonds, or other such obligations issued by the bank from taxation by any state, county, municipal entity, or local taxing authority.

Section 9108 establishes that the bank shall comply with all federal laws regulating budgetary and auditing practices of a government corporation, except as otherwise provided for in this article.

Section 9109 establishes that the books of account of the bank shall be maintained in accordance with generally accepted accounting principals and shall be subject to annual audit by independent public accountants appointed by the board and of nationally recognized standing.

Section 3 appropriates the sum of two hundred fifty million dollars to the banking department out of any moneys in the state treasury in the general fund to the credit of the state purposes account, not otherwise appropriated, and made immediately available, for the purposes of carrying out the provisions of this act.

Section 4 establishes that this act shall become effective on the sixtieth day after it shall have become law and shall expire and deemed repealed December 31, 2025.

Justification

According to the American Society of Civil Engineers, an estimated $2.2 trillion investment is needed over the next 5 years to meet adequate conditions. Every $1 billion in federal funds invested in infrastructure creates or sustains approximately 47,500 jobs and $6.2 billion in economic activity. Investing in our nation's infrastructure is therefore critical to the U.S. economic recovery and to long-term economic growth. The New York State Infrastructure Development Bank Act represents a bold, forward looking way to invest in our state's infrastructure and rebuild New York State. The legislation would create a State Infrastructure Development Bank, with an independent and objective Board of Directors to, among other things, make final infrastructure financing determinations; an Executive Committee to handle the day-to-day operations of the Bank; and Risk Management and Audit Committees to carefully manage risk and monitor the bank's activities.

It would also attract private investment toward critical infrastructure projects; the capital markets, including central banks, pension funds and sovereign wealth funds, have a growing interest in infrastructure investment. The Bank Board would have the authority to, among other things, make loans and offer loan guarantees; and purchase and sell infrastructure-related loans and securities leveraging these private dollars to invest in a New York State infrastructure market.

The Bank would consider infrastructure projects in the realm of transportation (i.e. highways, transit, rail and air travel), the environment (i.e. drinking and wastewater facilities); energy (i.e. renewable energy transmission and building efficiency); and

telecommunications (i.e. broadband development). The Bank would objectively consider the economic, environmental, social benefits and costs of infrastructure projects, as well as other specific criteria, and fund projects of significance.

Prior legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the sixtieth day after it shall have become law and shall expire and be deemed repealed on December 30, 2025.