Create State Infrastructure Bank

Section 1. Short title. This act shall be known and may be cited as the "New York state infrastructure development bank act".

§ 2. The banking law is amended by adding a new article 17 to read as follows:

ARTICLE 17

NEW YORK STATE INFRASTRUCTURE DEVELOPMENT BANK Section 9100. Definitions.

9101. Establishment.

9102. Board of directors; powers and duties.

9103. Executive committee.

9104. Risk management committee.

9105. Audit committee.

9106. Eligibility criteria and assistance.

9107. Exemption from local taxation.

9108. Status and applicability of certain federal laws; full

faith and credit.

9109. Audits and reports.

§ 9100. Definitions. For the purposes of this article:

1. The term "bank" shall mean the New York state infrastructure development bank established pursuant to this article.

2. The term "board" shall mean the New York state infrastructure development bank board established under section ninety-one hundred two of this article.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01318-01-9

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3. The term "chief asset and liability management officer" means the chief individual responsible for coordinating the management of assets and liabilities of the bank.

4. The term "chief compliance officer" or "CCO" means the chief individual responsible for overseeing and managing the compliance and regulatory affairs issues of the bank.

5. The term "chief financial officer" means the chief individual responsible for managing the financial risks, planning, and reporting of the bank.

6. The term "chief loan origination officer" means the chief individual responsible for the processing of new loans provided by the bank.

7. The term "chief operations officer" means the chief individual responsible for information technology and the day to day operations of the bank.

8. The term "chief risk officer" or "CRO" means the chief individual responsible for managing operational and compliance-related risks of the bank.

9. The term "chief treasury officer" means the chief individual responsible for managing the bank's treasury operations.

10. The terms "development" and "develop" mean, with respect to an infrastructure project, any:

(a) preconstruction planning, feasibility review, permitting, design work, and other preconstruction activities; and

(b) construction, reconstruction, rehabilitation, replacement, or expansion.

11. The term "disadvantaged community" means a community with a median household income of less than eighty percent of the statewide median household income for the state.

12. The term "energy infrastructure project" means any project for energy transmission, energy efficiency enhancement for buildings, public housing, and schools, renewable energy, and energy storage.

13. The term "entity" means an individual, corporation, partnership (including a public-private partnership), joint venture, trust, the state or other governmental entity, including a political subdivision or any other instrumentality of the state or a revolving fund.

14. The term "environmental infrastructure project" means any project for the establishment, maintenance, or enhancement of any drinking water and wastewater treatment facility, storm water management system, dam, levee, open space management system, solid waste disposal facility, hazardous waste facility, or industrial site cleanup.

15. The term "executive director" means the individual serving as the chief executive officer of the bank.

16. The term "general counsel" means the individual who serves as the chief lawyer for the bank.

17. The term "infrastructure project" means any energy, environmental, telecommunications, or transportation infrastructure project.

18. The term "public benefit bond" means a bond issued with respect to an infrastructure project in accordance with this article:

(a) the net spendable proceeds from the sale of the issue may be used for expenditures incurred after the date of issuance with respect to the project, subject to the rules of the bank;

(b) the bond issued by the bank is in registered form and meets the requirements of this article and otherwise applicable law;

(c) the term of each bond which is part of the issue is greater than thirty years; and

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(d) the payment of principal with respect to the bond is the obligation of the bank.

19. The term "public-private partnership" means any entity:

(a) (i) which is undertaking the development of all or part of an infrastructure project, which will have a public benefit, pursuant to requirements established in one or more contracts between the entity and the state or an instrumentality of the state; or

(ii) the activities of which, with respect to such an infrastructure project, are subject to regulation by the state or any instrumentality of the state; and

(b) which owns, leases, or operates, or will own, lease, or operate, the project in whole or in part, and at least one of the participants in the entity is a nongovernmental entity.

20. The term "revolving fund" means a fund or program established by the state or a political subdivision or other instrumentality of the state, the principal activity of which is to make loans, commitments, or other financial accommodation available for the development of one or more categories of infrastructure projects.

21. The term "smart grid" means an electricity delivery system using a two-way digital communications system and associated equipment and software, installed on the electrical delivery system and on the premises of retail end-use customers, which provides real-time monitoring, diagnostic, and control information and services that improve the efficiency and reliability of the distribution and use of electricity.

22. The term "smart growth" means an urban planning and transportation theory that concentrates growth in the center of a city to avoid urban sprawl.

23. The term "state" means the state of New York.

24. The term "telecommunications infrastructure project" means any project involving infrastructure required to provide communications by wire or radio.

25. The term "transportation infrastructure project" means any project for the construction, maintenance, or enhancement of highways, roads, bridges, transit and intermodal systems, inland waterways, commercial ports, airports, high speed rail and freight rail systems.

§ 9101. Establishment. There is hereby established within the department the New York state infrastructure development bank.

§ 9102. Board of directors; powers and duties. 1. (a) The bank shall have a board of directors consisting of five members representing different regions of the state to be appointed by the governor as follows:

(i) Two members shall have public sector experience; and

(ii) Three members shall have private sector experience.

(b) As designated at the time of appointment, one of the directors of the board shall be designated chairperson of the board by the governor and one shall be designated as vice chairperson of the board by the governor.

(c) (i) Except as provided in subparagraph (ii) of this paragraph, each director shall be appointed for a term of six years.

(ii) Of the initial members of the board:

(A) the chairperson and the vice chairperson shall be appointed for terms of six years;

(B) one member shall be appointed for a term of five years;

(C) one member shall be appointed for a term of four years;

(D) one member shall be appointed for a term of three years.

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(d) The initial appointments by the governor shall be made not later than sixty days after the effective date of this article.

(e) A vacancy on the board shall be filled in the manner in which the original appointment was made. Any director appointed to fill a vacancy occurring before the expiration of the term for which the director's predecessor was appointed shall be appointed only for the remainder of such term.

(f) A director may serve after the expiration of that director's term until a successor has taken office.

(g) Any director of the board may be reappointed once by the governor in accordance with this subdivision.

2. Three directors shall constitute a quorum.

3. Directors of the board shall serve on a part-time basis and shall receive a per diem when engaged in the actual performance of bank business, plus reasonable reimbursement for travel, subsistence and other necessary expenses incurred in the performance of their duties.

4. No director of the board may participate in any review or decision affecting a project under consideration for assistance under this article if the director has or is affiliated with any person who has an interest in such project.

5. (a) In order to carry out the purposes of the bank, the board shall be responsible for monitoring and overseeing infrastructure projects, shall establish criteria for determining project eligibility for financial assistance under this article and shall have the following powers:

(i) to issue public benefit bonds and provide direct subsidies to infrastructure projects;

(ii) to borrow on the global capital market and lend to entities and commercial banks for funding infrastructure projects; and

(iii) to purchase, pool and sell infrastructure-related loans and securities on such market.

(b) The board shall conduct its business in a manner consistent with the requirements of this section.

(c) The provision of financial assistance by the board pursuant to this article shall not be construed as:

(i) limiting the right of the state or any political subdivision or other instrumentality of the state to approve or regulate the rates of return on private equity invested in a project; or

(ii) otherwise superseding any law, rule or regulation of the state applicable to a project.

(d) The board shall have the power to request the assistance, on a reimbursable basis, of personnel from any state agencies with specific expertise not available from within the bank or elsewhere. The head of any state agency may assign, on a reimbursable basis, any personnel of such agency requested by the board and shall not unreasonably refuse the assistance of any personnel requested by the board.

6. (a) All meetings of the board held to conduct the business of the bank shall be open to the public and shall be preceded by reasonable notice.

(b) The board shall meet not later than ninety days after the date on which all of the directors of the board are first appointed and otherwise at the call of the chairperson.

(c) Pursuant to such rules as the board may establish through their bylaws, the directors may close a meeting of the board if, at the meeting, there is likely to be disclosed information which could adversely affect or lead to speculation relating to an infrastructure project under consideration for assistance under this article or in financial or

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securities or commodities markets or institutions, utilities, or real estate. The determination to close any meeting of the board shall be made in a meeting of the board, open to the the public, and preceded by reasonable notice. The board shall prepare minutes of any meeting which is closed to the public and make such minutes available as soon as the considerations necessitating closing such meeting no longer apply.

7. The chairperson of the board, executive director, CRO and CCO shall appoint, remove, fix the compensation of and define the duties of such qualified personnel to serve under the board, executive committee, risk management committee or audit committee, as the case may be, as necessary and prescribed by this article, the bylaws of the bank and the board.

§ 9103. Executive committee. 1. The board shall have an executive committee consisting of nine members, headed by the executive director of the bank.

2. A majority of the board shall have the authority to appoint and reappoint the executive director.

3. The executive director shall be the chief executive officer of the bank, with such executive functions, powers and duties as may be prescribed by this article, the bylaws of the bank or the board.

4. The board shall appoint, remove, fix the compensation and define the duties of eight other executive officers to serve on the executive committee as the:

(a) chief compliance officer;

(b) chief financial officer;

(c) chief asset and liability management officer;

(d) chief loan origination officer;

(e) chief operations officer;

(f) chief risk officer;

(g) chief treasury officer; and

(h) general counsel.

5. The executive director and other executive officers shall have demonstrated experience and expertise in one or more of the following:

(a) transportation infrastructure.

(b) environmental infrastructure.

(c) energy infrastructure.