What's happening
This bill increases the cap on hospital and nursing home project bonds and notes from $16.6 billion to $17.4 billion.
Why it matters
Enables more borrowing for hospital and nursing home construction or improvement projects. , potentially allowing more facilities to upgrade, expand, or modernize in response to healthcare needs.
May encourage new investment in healthcare infrastructure. , as a higher bond cap can make it easier for the state to finance large-scale or multiple projects simultaneously.
Could impact state or agency financial risk and debt profile. , since authorizing a higher bond cap increases the possible overall indebtedness, with implications for future budgets and fiscal planning.
Signals legislative recognition of growing or unmet healthcare facility needs. , possibly in response to increased demand, aging infrastructure, or lessons learned from public health crises.
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Who cares
New York State Medical Care Facilities Finance Agency
The bill would raise its hospital and nursing home project bond and note issuance cap from $16.6 billion to $17.4 billion.
Hospitals
The higher cap would provide additional borrowing capacity for hospital project financing through the agency.
Nursing home operators
Nursing home projects would share in the expanded financing capacity, subject to the agency’s existing capital reserve requirements.
Headline styles
Increase Hospital Bond Limit
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 60–0
- Ordered to third reading cal.958
- Reported and committed to rules
- Committee discharged and committed to corporations, authorities and commissions
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8757
IN SENATE
July 14, 2020
Introduced by Sen. COMRIE -- (at request of the Dormitory Authority) -read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the New York state medical care facilities finance agency act, in relation to the ability to issue certain bonds and notes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of chapter 392 of the laws of 1973, constituting the New York state medical care facilities finance agency act, as amended by chapter 183 of the laws of 2018, is amended to read as follows:
(b) The agency shall not issue hospital and nursing home project bonds and hospital and nursing home project notes in an aggregate principal amount exceeding [sixteen] seventeen billion [six] four hundred million dollars, excluding hospital and nursing home project bonds and hospital and nursing home project notes issued to refund outstanding hospital and nursing home projects bonds and hospital and nursing home project notes; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds, notes or other obligations may be greater than [sixteen] seventeen billion [six] four hundred million dollars only if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid. For purposes hereof, the present values of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes or other obligations
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15276-01-0
S. 8757 2
and to the price bid including estimated accrued interest or proceeds received by the agency including estimated accrued interest from the sale thereof. The agency shall not issue hospital and nursing home project bonds at any time secured by the hospital and nursing home capital reserve fund if upon issuance, the amount in the hospital and nursing home capital reserve fund will be less than the hospital and nursing home capital reserve fund requirement, unless the agency, at the time of issuance of such bonds, shall deposit in such reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which together with the amount then in such reserve fund, will be not less than the hospital and nursing home capital reserve fund requirement.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the New York state medical care facilities finance agen- cy act, in relation to the ability to issue certain bonds and notes
Purpose of the bill
This bill would increase the authorization of the Dormitory Authority of the State of New York ("DASNY"), as successor to the New York State Medical Care Facilities Finance Agency ("MCFFA") pursuant to the Health Care Financing Consolidation Act of 1995, to issue hospital and nursing home project bonds and notes from $16.6 billion to $17.4 billion.
Summery of provisions
Section one of this bill would amend the MCFFA Act to increase DASNY's authorization to issue hospital and nursing home project bonds and notes from $16.6 billion to $17.4 billion.
Section two of the bill would make it effective immediately.
Justification
Under current law, DASNY is authorized to issue to issue hospital and nursing home project bonds and notes in the amount of $16.6 billion. DASNY issues bonds for purposes including funding mortgage liens or project loans to not-for-profit hospital and nursing home corporations. Some of the bonds issued for DASNY's hospital and nursing home clients are issued under the MCFFA Act. Bonds issued pursuant to the MCFFA Act arc subject to the current hospital and nursing home project bond authorization cap in the MCFFA Act of $16.6 billion. This authorization was most recently increased by $800,000,000 in 2018. It was also increased by $800,000,000 in 2009 and 2011.
As of January 30, 2020, DASNY has sold and closed bond transactions pursuant to this authorization in the amount of $15,874,787,602. Approximately $560 million of capacity under the existing statutory limitation is available for other transactions. Over the past few years DASNY has seen increased activity in the bond market, in terms of the number and size of the transactions. This 'bill is necessary to ensure that DASNY has sufficient capacity to support additional healthcare projects as they seek financing.
Although DASNY cannot predict the timing- of future financings, DASNY is seeking additional bond cap authorization now to ensure it may adequate- ly respond to any future needs of its private not-FOr-profit health-care clients on a timely basis.
Legislative history
This is a new bill. In 2009, the MCFFA bond cap was increased from $14.2 billion to $15 billion (Chapter 238 of the laws of 2009). The MCFFA bond cap was increased from $15 billion to $15.8 billion in 2011 (Chapter 516 of the laws of 2011). In 2018, the MCFFA bond cap was increased from $15.8 billion to $16.6 billion (Chapter 183 of the laws of 2018).
Budget implications
The bill has no implications for the state budget.
Effective date
This bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.