Relates to the power of the New York State Thruway Authority to finance certain projects in connection with the canal system

BILL NUMBER:S5564

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

Purpose

This bill would increase the Thruway Authority's bond authorization for Canal System purposes from $60 million to $160 million and the Canal System emergency bond authorization from $10 million to $20 million.

Summary of provisions

Section 1 of this bill would amend Public Authorities Law (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 § 383(1)(c) to increase the Canal related emergency bond authorization from $10 million to $20 million.

Section 2 of the bill would provide for an immediate effective date.

Existing law

PAL § 383 currently authorizes the Thruway Authority to issue bonds, notes or obligations not exceeding $60 million for Canal System projects and not exceeding $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 Thruway Authority has already exhausted the $60 million in authorization (which was exhausted in 1996).

Legislative history

An identical bill (S.3621) was introduced in 2009/2010, but remained in the Transportation Committee.

Statement in support

Since the legislative transfer of the Canal System from the Department of Transportation to the Thruway Authority in 1992, the Thruway Authority has invested more than $923.6 million in Canal operations, maintenance, equipment and infrastructure, including nearly $70 million in bonds issued. As of 1996, the Thruway Authority exhausted its $60 million bond authorization to support investment in the Canal System and the $10 million emergency bond authorization is anticipated to be exhausted in 2011. Without the ability to bond for the Canal's capital needs, the Thruway Authority is limited to using

cash for infrastructure projects. 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

This bill would have no implications for the State Budget.

Effective date

This act shall take effect immediately; provided however, it 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 PAL Section 365 anytime after April 1, 2011.