Section 54 - [Authorization of personal income tax revenue or bond anticipation notes]1. Findings and declaration of need. (a) The state of New York finds and determines that the global spread of the COVID-19 coronavirus disease is having and is expected to continue to have a significant impact on the health and welfare of individuals in the state as well as a significant financial impact on the state. The serious threat posed by the COVID-19 coronavirus disease has caused governments, including the state, to adopt policies, regulations and procedures to suspend various legal requirements in order to (i) respond to and mitigate the impact of the outbreak, and (ii) provide temporary relief to individuals, includ- ing the deferral of the federal income tax payment deadline from April 15, 2020 to a later date in the calendar year. The state of New York further finds and determines that certain fiscal management authorization measures should be authorized and established. (b) Notwithstanding any other provision of law to the contrary, including, specifically, the provisions of chapter 59 of the laws of 2000 and section sixty-seven-b of the state finance law, the dormitory authority of the state of New York and the corporation are hereby authorized to issue until December 31, 2020, notes with a maturity no later than March 31, 2021, to be designated as personal income tax revenue or bond anticipation notes, in one or more series in an aggregate principal amount not to exceed eight billion dollars, excluding notes issued to finance one or more debt service reserve funds, to pay costs of issuance of such notes, and notes issued to renew, refund or otherwise repay such notes previously issued, for the purpose of temporarily financing budgetary needs of the state following the federal government deferral of the federal income tax payment deadline from April 15, 2020 to a later date in the calendar year. Such purpose shall constitute an authorized purpose under subdivision two of section sixty-eight-a of the state finance law for all purposes of article five-C of the state finance law with respect to the notes, renewal notes, refunding notes and any state personal income tax revenue bonds issued to refinance any notes, renewal notes, refunding notes authorized by this paragraph. On or before their maturity, such notes may be renewed or refunded once with renewal or refunding notes for an additional period not to exceed one year from the date of renewal or refunding. If on or before the maturity date of such notes or such renewal or refunding notes, the director of the division of the budget shall deter- mine that all or a portion of such notes or such renewal or refunding notes shall be refinanced on a long term basis, such notes or such renewal or refunding notes may be refinanced with state personal income tax revenue bonds in one or more series in an aggregate principal amount not to exceed the then outstanding principal amount of such notes or such renewal or refunding notes plus an amount necessary to finance one or more debt service reserve funds and to pay costs of issuance of such refunding bonds, notwithstanding any other provision of law to the contrary, including, specifically, the provisions of chapter fifty-nine of the laws of two thousand and section sixty-seven-b of the state finance law. For so long as any notes, renewal or refunding notes or such refunding bonds authorized by this paragraph shall remain outstanding, including any state-supported debt issued to refinance the refunding bonds authorized by this paragraph, the restrictions, limitations and requirements contained in article five-B of the state finance law shall not apply. (c) Such notes, renewal or refunding notes and refunding bonds of the dormitory authority and the corporation 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 dormitory authority and the corporation for debt service and related expenses pursuant to any financing agreement described in paragraph (d) of this subdivision, and such notes, renewal or refunding notes and refunding bonds shall contain on the face thereof a statement to such effect. Such notes, renewal or refunding notes and any refunding bonds issued to refinance such notes and/or any renewal or refunding notes on a subordinate basis shall be secured by subordinate payments from the revenue bond tax fund established pursuant to section ninety-two-z of the state finance law. Refunding bonds issued to refinance any such notes and/or renewal or refunding notes on a parity basis with outstanding state personal income tax revenue bonds shall be issued only in accordance with the provisions of the applicable resolution of the dormitory authority or the corporation authorizing the issuance of state personal income tax revenue bonds and shall be secured by payments from the revenue bond tax fund on a parity with such outstanding state personal income tax revenue bonds. Except for purposes of complying with the internal revenue code, any interest income earned on note proceeds shall only be used to pay debt service on such notes. All of the provisions of the dormitory authority act and the New York state urban development corporation act relating to notes and bonds which are not inconsistent with the provisions of this section shall apply to notes and bonds authorized by paragraph (b) of this subdivision, including but not limited to the power to establish adequate reserves therefor and to issue renewal notes, refunding notes and refunding bonds, in any case subject to the final maturity limitation for such notes set forth in paragraph (b) of this subdivision. The issuance of any notes, renewal or refunding notes and refunding bonds authorized by paragraph (b) of this subdivision shall further be subject to the approval of the director of the division of the budget. (d) Notwithstanding any other law, rule or regulation to the contrary but subject to the limitations contained in paragraph (b) of this subdivision, in order to assist the dormitory authority and the corporation in undertaking the administration and financing of such notes, renewal or refunding notes and refunding bonds, the director of the budget is hereby authorized to supplement any existing financing agreement with the dormitory authority and the corporation, or to enter into a new financing agreement with the dormitory authority and the corporation, upon such terms and conditions as the director of the budget and the dormitory authority and the corporation shall agree, so as to annually provide to the dormitory authority and the corporation, in the aggregate, a sum not to exceed the annual debt service payments and related expenses required for any notes, renewal or refunding notes and refunding bonds issued pursuant to this section. Any financing agreement supplemented or entered into pursuant to this section 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 financing agreement or any payments made or to be made thereunder may be assigned or pledged by the dormitory authority and the corporation as security for the notes, renewal and refunding notes and refunding bonds authorized by paragraph (b) of this subdivision. (e) Notwithstanding any other provision of law to the contrary, including specifically the provisions of subdivision 3 of section 67-b of the state finance law, no capital work or purpose shall be required for any issuance of personal income tax revenue or bond anticipation notes, renewal or refunding notes or refunding bonds issued by the dormitory authority and the corporation pursuant to this section. (f) Notwithstanding any other law, rule, or regulation to the contrary, the comptroller is hereby authorized and directed to deposit to the credit of the general fund, all proceeds of personal income tax revenue or bond anticipation notes issued by the dormitory authority and the New York state urban development corporation pursuant to this section. 2. Effect of inconsistent provisions. Insofar as the provisions of this section are inconsistent with the provisions of any other law, general, special, or local, the provisions of this section shall be controlling. 3. Severability; construction. The provisions of this section shall be severable, and if the application of any clause, sentence, paragraph, subdivision, section or part of this section to any person or circumstance shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not necessarily affect, impair or invalidate the application of any such clause, sentence, paragraph, subdivision, section, part of this section or remainder thereof, as the case may be, to any other person or circumstance, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered.N.Y. Urban Development Corporation Act Law § 54
Added by New York Laws 2020, ch. 56,Sec. JJ-49-a, eff. 4/3/2020, op. 4/1/2020.