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S T A T E O F N E W Y O R K
________________________________________________________________________
11559
I N A S S E M B L Y
June 1, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Pretlow) --
(at request of the Dormitory Authority) -- read once and referred to
the Committee on Ways and Means
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
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of
2 chapter 392 of the laws of 1973, constituting the New York state medical
3 care facilities agency act, as amended by chapter 101 of the laws of
4 2025, is amended to read as follows:
5 (b) The agency shall not issue hospital and nursing home project bonds
6 and hospital and nursing home project notes in an aggregate principal
7 amount exceeding [twenty billion] TWENTY-ONE BILLION EIGHT HUNDRED
8 MILLION dollars, excluding hospital and nursing home project bonds and
9 hospital and nursing home project notes issued to refund outstanding
10 hospital and nursing home projects bonds and hospital and nursing home
11 project notes; provided, however, that upon any such refunding or repay-
12 ment the total aggregate principal amount of outstanding bonds, notes or
13 other obligations may be greater than [twenty billion] TWENTY-ONE
14 BILLION EIGHT HUNDRED MILLION dollars only if the present value of the
15 aggregate debt service of the refunding or repayment bonds, notes or
16 other obligations to be issued shall not exceed the present value of the
17 aggregate debt service of the bonds, notes or other obligations so to be
18 refunded or repaid. For purposes hereof, the present values of the
19 aggregate debt service of the refunding or repayment bonds, notes or
20 other obligations and of the aggregate debt service of the bonds, notes
21 or other obligations so refunded or repaid, shall be calculated by
22 utilizing the effective interest rate of the refunding or repayment
23 bonds, notes or other obligations, which shall be that rate arrived at
24 by doubling the semi-annual interest rate (compounded semi-annually)
25 necessary to discount the debt service payments on the refunding or
26 repayment bonds, notes or other obligations from the payment dates ther-
27 eof to the date of issue of the refunding or repayment bonds, notes or
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16063-01-6
A. 11559 2
1 other obligations and to the price bid including estimated accrued
2 interest or proceeds received by the agency including estimated accrued
3 interest from the sale thereof. The agency shall not issue hospital and
4 nursing home project bonds at any time secured by the hospital and nurs-
5 ing home capital reserve fund if upon issuance, the amount in the hospi-
6 tal and nursing home capital reserve fund will be less than the hospital
7 and nursing home capital reserve fund requirement, unless the agency, at
8 the time of issuance of such bonds, shall deposit in such reserve fund
9 from the proceeds of the bonds so to be issued, or otherwise, an amount
10 which together with the amount then in such reserve fund, will be not
11 less than the hospital and nursing home capital reserve fund require-
12 ment.
13 § 2. This act shall take effect immediately.