N.Y. Public Authorities Law § 1680-j*2: Authorization for the issuance of bonds for the health care efficiency and affordability law for New Yorkers (HEAL NY) capital grant program

* § 1680-j. Authorization for the issuance of bonds for the health

care efficiency and affordability law for New Yorkers (HEAL NY) capital

grant program. Notwithstanding any other provision of law to the

contrary, the dormitory authority of the state of New York is hereby

authorized to issue bonds or notes in one or more series in an aggregate

principal amount not to exceed seven hundred fifty million dollars

excluding bonds issued to fund one or more debt service reserve funds,

to pay costs of issuance of such bonds, and bonds or notes issued to

refund or otherwise repay such bonds or notes previously issued, for the

purposes of financing project costs authorized under section

twenty-eight hundred eighteen of the public health law. Of such seven

hundred fifty million dollars, ten million dollars shall be made

available to the community health centers capital program established

pursuant to section twenty-eight hundred seventeen of the public health

law.

1. Such bonds and notes of the dormitory authority shall not be a debt

of the state and the state shall not be liable thereon, nor shall they

be payable out of any funds other than those appropriated by the state

to the authority for debt service and related expenses pursuant to any

service contract executed pursuant to subdivision two of this section,

and such bonds and notes shall contain on the face thereof a statement

to such effect. Except for purposes of complying with the internal

revenue code, any interest income earned on bond proceeds shall only be

used to pay debt service on such bonds. All of the provisions of the

dormitory authority act relating to bonds and notes which are not

inconsistent with the provisions of this section shall apply to

obligations authorized by this section, including but not limited to the

power to establish adequate reserves therefore and to issue renewal

notes or refunding bonds thereof. The issuance of any bonds or notes

hereunder shall further be subject to the approval of the director of

the division of the budget, and any projects funded through the issuance

of bonds or notes hereunder shall be approved by the New York state

public authorities control board, as required under section fifty-one of

this chapter.

2. Notwithstanding any other law, rule or regulation to the contrary,

in order to assist the dormitory authority in undertaking the

administration and financing of projects authorized under this section,

the director of the budget is hereby authorized to enter into one or

more service contracts with the dormitory authority, none of which shall

exceed more than thirty years in duration, upon such terms and

conditions as the director of the budget and the dormitory authority

agree, so as to annually provide to the dormitory authority, in the

aggregate, a sum not to exceed the annual debt service payments and

related expenses required for the bonds and notes issued pursuant to

this section. Any service contract entered into pursuant to this

subdivision shall provide that the obligation of the state to pay the

amount therein provided shall not constitute a debt of the state within

the meaning of any constitutional or statutory provision and shall be

deemed executory only to the extent of monies available and that no

liability shall be incurred by the state beyond the monies available for

such purposes, subject to annual appropriation by the legislature. Any

such contract or any payments made or to be made thereunder may be

assigned or pledged by the dormitory authority as security for its bonds

and notes, as authorized by this section.

3. Notwithstanding any law to the contrary, and in accordance with

section four of the state finance law, the comptroller is hereby

authorized and directed to transfer from the health care reform act

(HCRA) resources fund (061) to the general fund, upon the request of the

director of the budget, up to $6,500,000 on or before March 31, 2006,

and the comptroller is further hereby authorized and directed to

transfer from the healthcare reform act (HCRA); Resources fund (061) to

the Capital Projects Fund, upon the request of the director of budget,

up to $139,000,000 for the period April 1, 2006 through March 31, 2007,

up to $171,100,000 for the period April 1, 2007 through March 31, 2008,

up to $208,100,000 for the period April 1, 2008 through March 31, 2009,

up to $151,600,000 for the period April 1, 2009 through March 31, 2010,

up to $215,743,000 for the period April 1, 2010 through March 31, 2011,

up to $433,366,000 for the period April 1, 2011 through March 31, 2012,

up to $150,806,000 for the period April 1, 2012 through March 31, 2013,

up to $78,071,000 for the period April 1, 2013 through March 31, 2014,

and up to $86,005,000 for the period April 1, 2014 through March 31,

2015, and up to $86,005,000 for the period April 1, 2015 through

December 31, 2017.

* NB There are 2 § 1680-j's