S07077 Summary:

BILL NOS07077
 
SAME ASNo Same As
 
SPONSORKAVANAGH
 
COSPNSR
 
MLTSPNSR
 
Add Art 17 9100 - 9109, Bank L
 
Establishes the New York state infrastructure development bank within the banking department; makes a $250,000,000 appropriation therefor.
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S07077 Actions:

BILL NOS07077
 
01/03/2018REFERRED TO FINANCE
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S07077 Committee Votes:

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S07077 Floor Votes:

There are no votes for this bill in this legislative session.
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S07077 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7077
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 3, 2018
                                       ___________
 
        Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Finance
 
        AN ACT to amend the banking law, in relation  to  establishing  the  New
          York  state  infrastructure  development bank; making an appropriation
          therefor; and providing for the repeal of such provisions upon expira-
          tion thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York state infrastructure development bank act".
     3    § 2. The banking law is amended by adding a new article 17 to read  as
     4  follows:
     5                                 ARTICLE 17
     6               NEW YORK STATE INFRASTRUCTURE DEVELOPMENT BANK
     7  Section 9100. Definitions.
     8          9101. Establishment.
     9          9102. Board of directors; powers and duties.
    10          9103. Executive committee.
    11          9104. Risk management committee.
    12          9105. Audit committee.
    13          9106. Eligibility criteria and assistance.
    14          9107. Exemption from local taxation.
    15          9108. Status  and  applicability  of  certain federal laws; full
    16                  faith and credit.
    17          9109. Audits and reports.
    18    § 9100. Definitions. For the purposes of this article:
    19    1. The term "bank" shall mean the New York state infrastructure devel-
    20  opment bank established pursuant to this article.
    21    2. The term "board" shall  mean  the  New  York  state  infrastructure
    22  development  bank board established under section ninety-one hundred two
    23  of this article.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00447-02-7

        S. 7077                             2
 
     1    3. The term "chief asset and liability management officer"  means  the
     2  chief  individual  responsible for coordinating the management of assets
     3  and liabilities of the bank.
     4    4.  The term "chief compliance officer" or "CCO" means the chief indi-
     5  vidual responsible for overseeing and managing the compliance and  regu-
     6  latory affairs issues of the bank.
     7    5.  The  term  "chief  financial  officer"  means the chief individual
     8  responsible for managing the financial risks, planning, and reporting of
     9  the bank.
    10    6. The term "chief loan origination officer" means the chief  individ-
    11  ual responsible for the processing of new loans provided by the bank.
    12    7.  The  term  "chief  operations  officer" means the chief individual
    13  responsible for information technology and the day to day operations  of
    14  the bank.
    15    8.  The  term "chief risk officer" or "CRO" means the chief individual
    16  responsible for managing operational and compliance-related risks of the
    17  bank.
    18    9. The term  "chief  treasury  officer"  means  the  chief  individual
    19  responsible for managing the bank's treasury operations.
    20    10.  The  terms  "development"  and "develop" mean, with respect to an
    21  infrastructure project, any:
    22    (a) preconstruction planning, feasibility review,  permitting,  design
    23  work, and other preconstruction activities; and
    24    (b)  construction,  reconstruction,  rehabilitation,  replacement,  or
    25  expansion.
    26    11. The term "disadvantaged community" means a community with a median
    27  household income of less than eighty percent  of  the  statewide  median
    28  household income for the state.
    29    12.  The  term  "energy  infrastructure project" means any project for
    30  energy transmission, energy efficiency enhancement for buildings, public
    31  housing, and schools, renewable energy, and energy storage.
    32    13. The term "entity" means an  individual,  corporation,  partnership
    33  (including  a  public-private  partnership),  joint  venture, trust, the
    34  state or other governmental entity, including a political subdivision or
    35  any other instrumentality of the state or a revolving fund.
    36    14. The term "environmental infrastructure project" means any  project
    37  for the establishment, maintenance, or enhancement of any drinking water
    38  and  wastewater  treatment facility, storm water management system, dam,
    39  levee, open space management  system,  solid  waste  disposal  facility,
    40  hazardous waste facility, or industrial site cleanup.
    41    15.  The term "executive director" means the individual serving as the
    42  chief executive officer of the bank.
    43    16. The term "general counsel" means the individual who serves as  the
    44  chief lawyer for the bank.
    45    17. The term "infrastructure project" means any energy, environmental,
    46  telecommunications, or transportation infrastructure project.
    47    18. The term "public benefit bond" means a bond issued with respect to
    48  an infrastructure project in accordance with this article:
    49    (a)  the net spendable proceeds from the sale of the issue may be used
    50  for expenditures incurred after the date of issuance with respect to the
    51  project, subject to the rules of the bank;
    52    (b) the bond issued by the bank is in registered form  and  meets  the
    53  requirements of this article and otherwise applicable law;
    54    (c)  the  term of each bond which is part of the issue is greater than
    55  thirty years; and

        S. 7077                             3

     1    (d) the payment of principal with respect to the  bond  is  the  obli-
     2  gation of the bank.
     3    19. The term "public-private partnership" means any entity:
     4    (a)  (i)  which  is  undertaking  the development of all or part of an
     5  infrastructure project, which will have a public  benefit,  pursuant  to
     6  requirements established in one or more contracts between the entity and
     7  the state or an instrumentality of the state; or
     8    (ii)  the  activities of which, with respect to such an infrastructure
     9  project, are subject to regulation by the state or  any  instrumentality
    10  of the state; and
    11    (b)  which  owns, leases, or operates, or will own, lease, or operate,
    12  the project in whole or in part, and at least one of the participants in
    13  the entity is a nongovernmental entity.
    14    20. The term "revolving fund" means a fund or program  established  by
    15  the  state  or  a  political subdivision or other instrumentality of the
    16  state, the principal activity of which is to make loans, commitments, or
    17  other financial accommodation available for the development  of  one  or
    18  more categories of infrastructure projects.
    19    21. The term "smart grid" means an electricity delivery system using a
    20  two-way digital communications system and associated equipment and soft-
    21  ware, installed on the electrical delivery system and on the premises of
    22  retail  end-use customers, which provides real-time monitoring, diagnos-
    23  tic, and control information and services that  improve  the  efficiency
    24  and reliability of the distribution and use of electricity.
    25    22. The term "smart growth" means an urban planning and transportation
    26  theory  that  concentrates growth in the center of a city to avoid urban
    27  sprawl.
    28    23. The term "state" means the state of New York.
    29    24. The term "telecommunications  infrastructure  project"  means  any
    30  project  involving  infrastructure required to provide communications by
    31  wire or radio.
    32    25. The term "transportation infrastructure project" means any project
    33  for the construction, maintenance, or enhancement  of  highways,  roads,
    34  bridges,  transit  and  intermodal systems, inland waterways, commercial
    35  ports, airports, high speed rail and freight rail systems.
    36    § 9101. Establishment. There is hereby established within the  depart-
    37  ment the New York state infrastructure development bank.
    38    §  9102.  Board of directors; powers and duties. 1. (a) The bank shall
    39  have a board  of  directors  consisting  of  five  members  representing
    40  different  regions  of  the  state  to  be  appointed by the governor as
    41  follows:
    42    (i) Two members shall have public sector experience; and
    43    (ii) Three members shall have private sector experience.
    44    (b) As designated at the time of appointment, one of the directors  of
    45  the  board  shall be designated chairperson of the board by the governor
    46  and one shall be designated as vice chairperson  of  the  board  by  the
    47  governor.
    48    (c)  (i)  Except  as  provided in subparagraph (ii) of this paragraph,
    49  each director shall be appointed for a term of six years.
    50    (ii) Of the initial members of the board:
    51    (A) the chairperson and the vice chairperson shall  be  appointed  for
    52  terms of six years;
    53    (B) one member shall be appointed for a term of five years;
    54    (C) one member shall be appointed for a term of four years;
    55    (D) one member shall be appointed for a term of three years.

        S. 7077                             4
 
     1    (d)  The  initial appointments by the governor shall be made not later
     2  than sixty days after the effective date of this article.
     3    (e)  A vacancy on the board shall be filled in the manner in which the
     4  original appointment was made. Any director appointed to fill a  vacancy
     5  occurring  before  the  expiration  of the term for which the director's
     6  predecessor was appointed shall be appointed only for the  remainder  of
     7  such term.
     8    (f)  A director may serve after the expiration of that director's term
     9  until a successor has taken office.
    10    (g) Any director of the board may be reappointed once by the  governor
    11  in accordance with this subdivision.
    12    2. Three directors shall constitute a quorum.
    13    3.  Directors  of the board shall serve on a part-time basis and shall
    14  receive a per diem when engaged in the actual performance of bank  busi-
    15  ness,  plus  reasonable  reimbursement for travel, subsistence and other
    16  necessary expenses incurred in the performance of their duties.
    17    4. No director of the board may participate in any review or  decision
    18  affecting  a project under consideration for assistance under this arti-
    19  cle if the director has or is affiliated with  any  person  who  has  an
    20  interest in such project.
    21    5. (a) In order to carry out the purposes of the bank, the board shall
    22  be  responsible  for  monitoring and overseeing infrastructure projects,
    23  shall establish criteria for determining project eligibility for  finan-
    24  cial assistance under this article and shall have the following powers:
    25    (i)  to  issue  public  benefit  bonds and provide direct subsidies to
    26  infrastructure projects;
    27    (ii) to borrow on the global capital market and lend to  entities  and
    28  commercial banks for funding infrastructure projects; and
    29    (iii)  to  purchase,  pool  and  sell infrastructure-related loans and
    30  securities on such market.
    31    (b) The board shall conduct its business in a manner  consistent  with
    32  the requirements of this section.
    33    (c)  The  provision  of  financial assistance by the board pursuant to
    34  this article shall not be construed as:
    35    (i) limiting the right of the state or any  political  subdivision  or
    36  other  instrumentality  of the state to approve or regulate the rates of
    37  return on private equity invested in a project; or
    38    (ii) otherwise superseding any law, rule or regulation  of  the  state
    39  applicable to a project.
    40    (d)  The  board  shall  have the power to request the assistance, on a
    41  reimbursable basis, of personnel from any state agencies  with  specific
    42  expertise  not  available from within the bank or elsewhere. The head of
    43  any state agency may assign, on a reimbursable basis, any  personnel  of
    44  such agency requested by the board and shall not unreasonably refuse the
    45  assistance of any personnel requested by the board.
    46    6.  (a)  All meetings of the board held to conduct the business of the
    47  bank shall be open to the public and shall  be  preceded  by  reasonable
    48  notice.
    49    (b)  The board shall meet not later than ninety days after the date on
    50  which all of the directors of the board are first appointed  and  other-
    51  wise at the call of the chairperson.
    52    (c)  Pursuant  to  such rules as the board may establish through their
    53  bylaws, the directors may close a meeting of the board if, at the  meet-
    54  ing,  there  is likely to be disclosed information which could adversely
    55  affect or lead to speculation  relating  to  an  infrastructure  project
    56  under consideration for assistance under this article or in financial or

        S. 7077                             5
 
     1  securities  or  commodities  markets or institutions, utilities, or real
     2  estate. The determination to close any meeting of  the  board  shall  be
     3  made  in a meeting of the board, open to the the public, and preceded by
     4  reasonable  notice. The board shall prepare minutes of any meeting which
     5  is closed to the public and make such minutes available as soon  as  the
     6  considerations necessitating closing such meeting no longer apply.
     7    7. The chairperson of the board, executive director, CRO and CCO shall
     8  appoint,  remove,  fix the compensation of and define the duties of such
     9  qualified personnel to serve under the board, executive committee,  risk
    10  management  committee  or audit committee, as the case may be, as neces-
    11  sary and prescribed by this article, the bylaws  of  the  bank  and  the
    12  board.
    13    §  9103.  Executive  committee.  1.  The board shall have an executive
    14  committee consisting of nine members, headed by the  executive  director
    15  of the bank.
    16    2.  A  majority  of  the board shall have the authority to appoint and
    17  reappoint the executive director.
    18    3. The executive director shall be the chief executive officer of  the
    19  bank,  with  such  executive  functions,  powers  and  duties  as may be
    20  prescribed by this article, the bylaws of the bank or the board.
    21    4. The board shall appoint, remove, fix the  compensation  and  define
    22  the  duties  of eight other executive officers to serve on the executive
    23  committee as the:
    24    (a) chief compliance officer;
    25    (b) chief financial officer;
    26    (c) chief asset and liability management officer;
    27    (d) chief loan origination officer;
    28    (e) chief operations officer;
    29    (f) chief risk officer;
    30    (g) chief treasury officer; and
    31    (h) general counsel.
    32    5. The executive director and  other  executive  officers  shall  have
    33  demonstrated experience and expertise in one or more of the following:
    34    (a) transportation infrastructure.
    35    (b) environmental infrastructure.
    36    (c) energy infrastructure.
    37    (d) telecommunications infrastructure.
    38    (e) economic development.
    39    (f) workforce  development.
    40    (g) public health.
    41    (h) private or public finance.
    42    6.  In  order  to  carry  out  the purposes of the bank, the executive
    43  committee shall:
    44    (a) establish disclosure and application procedures for entities nomi-
    45  nating projects for assistance under this article;
    46    (b) accept, for  consideration,  project  proposals  relating  to  the
    47  development  of  infrastructure  projects, which meet the basic criteria
    48  established by the board, and which are submitted by an entity;
    49    (c) provide recommendations to the board and place  project  proposals
    50  accepted  by  the  executive committee on the list for consideration for
    51  financial assistance from the board;
    52    (d) provide technical assistance to entities receiving financing  from
    53  the bank and otherwise implement decisions of the board.
    54    7.  A vacancy in the position of executive director shall be filled in
    55  the manner in which the original appointment was made.

        S. 7077                             6
 
     1    8. The compensation of the executive committee shall be determined  by
     2  the board.
     3    9. The executive officers may be removed at the discretion of a major-
     4  ity of the board.
     5    10. The executive officers shall serve for a term of six years and may
     6  be reappointed once in accordance with this section.
     7    11. The executive officers shall not:
     8    (a) hold any other public office;
     9    (b)  have  any interest in an infrastructure project considered by the
    10  board;
    11    (c) have any interest in an investment institution, commercial bank or
    12  other entity seeking financial assistance for any infrastructure project
    13  from the bank; and
    14    (d) have any such interest during the two year period beginning on the
    15  date such officer ceases to serve in such capacity.
    16    § 9104. Risk management committee. 1. The bank shall establish a  risk
    17  management  committee  consisting  of  five members, headed by the chief
    18  risk officer.
    19    2. A majority of the board shall have the  authority  to  appoint  and
    20  reappoint the CRO of the bank.
    21    3.  (a) The CRO shall have such functions, powers and duties as may be
    22  prescribed by this article, the bylaws of the bank and  the  board.  The
    23  CRO shall report directly to the board.
    24    (b)  In  order  to  carry  out  the purposes of this article, the risk
    25  management committee shall:
    26    (i) create financial, credit and operational  risk  management  guide-
    27  lines for the bank;
    28    (ii)  set standards to ensure diversification of lending activities by
    29  both region and infrastructure project type; and
    30    (iii) create conforming standards for infrastructure  finance  securi-
    31  ties.
    32    4.  (a)  The  board  shall  appoint,  remove, fix the compensation and
    33  define the duties of four other risk management  officers  to  serve  on
    34  such committee.
    35    (b) The CRO and other risk management officers shall have demonstrated
    36  experience and expertise in one or more of the following:
    37    (i) treasury and asset and liability management.
    38    (ii) investment regulations.
    39    (iii) credit risk management and credit evaluations.
    40    (iv) related disciplines.
    41    5.  A  vacancy in the position of any risk management officer shall be
    42  filled in the manner in which the original appointment was made.
    43    6. The compensation of the risk management officers  shall  be  deter-
    44  mined by the board.
    45    7.  The  risk  management officers may be removed at the discretion of
    46  the majority of the board.
    47    8. The risk management officers shall serve a six year term and may be
    48  reappointed once in accordance with this section.
    49    9. The risk management officers shall not:
    50    (a) hold any other public office;
    51    (b) have any interest in an infrastructure project considered  by  the
    52  board;
    53    (c) have any interest in an investment institution, commercial bank or
    54  other entity seeking financial assistance for any infrastructure project
    55  from the bank; and

        S. 7077                             7
 
     1    (d) have any such interest during the two year period beginning on the
     2  date such officer ceases to serve in such capacity.
     3    §  9105. Audit committee. 1. The bank shall establish an audit commit-
     4  tee consisting of five members, headed by the chief compliance officer.
     5    2. A majority of the board shall have the  authority  to  appoint  and
     6  reappoint the CCO of the bank.
     7    3.  (a) The CCO shall have such functions, powers and duties as may be
     8  prescribed by this article, the bylaws of the bank and  the  board.  The
     9  CCO shall report directly to the board.
    10    (b)  In  order  to  carry  out the purposes of this article, the audit
    11  committee shall:
    12    (i) provide internal controls and internal auditing activities for the
    13  bank;
    14    (ii) maintain responsibility for  the  accounting  activities  of  the
    15  bank;
    16    (iii) issue financial reports of the bank; and
    17    (iv)  complete  reports  with  outside auditors and public accountants
    18  appointed by the board.
    19    4. (a) The board shall  appoint,  remove,  fix  the  compensation  and
    20  define  the duties of four other audit officers to serve on such commit-
    21  tee.
    22    (b) The CCO and other audit officers shall have  demonstrated  experi-
    23  ence and expertise in one or more of the following:
    24    (i) Internal auditing.
    25    (ii) Internal investigations.
    26    (iii) Accounting practices.
    27    (iv) Financing practices.
    28    5.  A  vacancy in the position of any audit officer shall be filled in
    29  the manner in which the original appointment was made.
    30    6. The compensation of the audit officers shall be determined  by  the
    31  board.
    32    7. The audit officers may be removed at the discretion of the majority
    33  of the board.
    34    8.  The  audit  officers  shall serve a six year term and may be reap-
    35  pointed once in accordance with this section.
    36    9. The audit officers shall not:
    37    (a) hold any other public office;
    38    (b) have any interest in an infrastructure project considered  by  the
    39  board;
    40    (c) have any interest in an investment institution, commercial bank or
    41  other entity seeking financial assistance for any infrastructure project
    42  from the bank; and
    43    (d) have any such interest during the two year period beginning on the
    44  date such officer ceases to serve in such capacity.
    45    §  9106.  Eligibility criteria and assistance. 1. No financial assist-
    46  ance shall be available under this article  from  the  bank  unless  the
    47  applicant  for  such  assistance has demonstrated to the satisfaction of
    48  the board that the project for which such  assistance  is  being  sought
    49  meets:
    50    (a) the requirements of this article; and
    51    (b)  any  criteria  established in accordance with this article by the
    52  board.
    53    2. (a) Consistent with the requirements of subdivisions three and four
    54  of this section, the board shall establish:
    55    (i) criteria for  determining  eligibility  for  financial  assistance
    56  under this article;

        S. 7077                             8
 
     1    (ii)  disclosure and application procedures to be followed by entities
     2  to nominate projects for assistance under this article; and
     3    (iii)  such other criteria as the board may consider to be appropriate
     4  for purposes of carrying out this article.
     5    (b) (i) The bank shall conduct an analysis that takes into account the
     6  economic, environmental, social benefits and costs of each project under
     7  consideration for financial assistance under this article,  prioritizing
     8  projects  that  contribute  to economic growth, lead to job creation and
     9  are of regional or local significance.
    10    (ii) The criteria established pursuant to subparagraph  (i)  of  para-
    11  graph (a) of this subdivision shall provide for the consideration of the
    12  following  factors  in  considering eligibility for financial assistance
    13  under this article:
    14    (A) the means by which development of the infrastructure project under
    15  consideration is being financed, including:
    16    (1) the terms and conditions and financial structure of  the  proposed
    17  financing; and
    18    (2)  the financial assumptions and projections on which the project is
    19  based.
    20    (B) the likelihood that the provision of assistance by the  bank  will
    21  cause such development to proceed more promptly and with lower costs for
    22  financing than would be the case without such assistance.
    23    (C)  the extent to which the provision of assistance by the bank maxi-
    24  mizes the level of private  investment  in  the  infrastructure  project
    25  while providing a public benefit.
    26    3.  (a) For any transportation infrastructure project, the board shall
    27  consider the following:
    28    (i) job creation, including workforce development for women and minor-
    29  ities, responsible employment practices, and quality job training oppor-
    30  tunities.
    31    (ii) reduction in carbon emissions.
    32    (iii) reduction in surface and air traffic congestion.
    33    (iv) smart growth in urban areas.
    34    (v) poverty and inequality reduction  through  targeted  training  and
    35  employment opportunities for low income workers.
    36    (vi)  use  of  smart  tolling,  such  as  vehicle  miles  traveled and
    37  congestion pricing, for highway, road, and bridge projects.
    38    (vii) public health benefits.
    39    (b) For any environmental  infrastructure  project,  the  board  shall
    40  consider the following:
    41    (i) public health benefits.
    42    (ii) pollution reductions.
    43    (iii)  job  creation,  including  workforce  development for women and
    44  minorities, responsible employment practices and  quality  job  training
    45  opportunities.
    46    (iv)  poverty  and  inequality reduction through targeted training and
    47  employment opportunities for low income workers.
    48    (v) environmental justice.
    49    (c) For any energy infrastructure project, the  board  shall  consider
    50  the following:
    51    (i) job creation, including workforce development for women and minor-
    52  ities,  responsible employment practices and quality job training oppor-
    53  tunities.
    54    (ii) poverty and inequality reduction through  targeted  training  and
    55  employment opportunities for low income workers.
    56    (iii) reduction in carbon emissions.

        S. 7077                             9
 
     1    (iv) environmental justice.
     2    (v) smart growth in urban areas.
     3    (vi)  expanded  use of renewable energy, including, but not limited to
     4  hydroelectric, solar, wind and waste-to-energy.
     5    (vii) development of a smart grid.
     6    (viii) energy efficient building, housing,  school  modernization  and
     7  weatherization.
     8    (ix)  in  any  case  in  which  the  project  is also a public housing
     9  project:
    10    (A) improvement of the physical shape and layout;
    11    (B) environmental improvement; and
    12    (C) mobility improvements for residents.
    13    (x) public health benefits.
    14    (d) For any telecommunications project, the board shall  consider  the
    15  following:
    16    (i)  the  extent to which assistance expands or improves broadband and
    17  wireless services in rural and disadvantaged communities.
    18    (ii) job creation,  including  workforce  development  for  women  and
    19  minorities,  responsible  employment  practices and quality job training
    20  opportunities.
    21    (iii) poverty and inequality reduction through targeted  training  and
    22  employment opportunities for low income workers.
    23    4.  (a) Consideration of projects by the executive committee and board
    24  shall be conducted with personnel assisting the bank from relevant state
    25  and local agencies from among individuals  who  are  familiar  with  and
    26  experienced in the selection criteria for competitive projects.
    27    (b)  A  fee  may  be charged for the review of any project proposal in
    28  such amount as may be considered appropriate by the executive  committee
    29  to cover the cost of such review.
    30    5. Consistent with other provisions of this article, any determination
    31  of  the  board  to  provide assistance to any project, and the manner in
    32  which such assistance is provided, including the terms, conditions, fees
    33  and charges shall be at the sole discretion of the board.
    34    6. The provision of assistance by the board in  accordance  with  this
    35  article  shall  not  be deemed to relieve any recipient of assistance or
    36  the related project of any obligation to obtain required,  state,  local
    37  and federal permit and approvals.
    38    7.  An  entity  receiving  assistance from the board shall make annual
    39  reports to the board on the use of any  such  assistance,  criteria  set
    40  forth  in  this section and a disclosure of all entities with a develop-
    41  ment, ownership  or  operational  interest  in  a  project  assisted  or
    42  proposed to be assisted under this article.
    43    § 9107. Exemption from local taxation. All notes, debentures, bonds or
    44  other  such obligations issued by the bank, and the interest on or cred-
    45  its with respect to such  bonds  or  other  obligations,  shall  not  be
    46  subject  to  taxation by any state, county, municipality or local taxing
    47  authority.
    48    § 9108. Status and applicability of certain federal laws;  full  faith
    49  and  credit.  1.  The bank shall comply with all federal laws regulating
    50  budgetary and auditing practices of a government corporation, except  as
    51  otherwise provided for in this article.
    52    2.  Any bond or other obligation issued by the bank under this article
    53  shall be an obligation supported by the full faith  and  credit  of  the
    54  United States.
    55    3. All debt securities and other obligations issued by the bank pursu-
    56  ant  to  this article shall be deemed to be exempt securities within the

        S. 7077                            10

     1  meaning of laws administered by the securities and  exchange  commission
     2  to  the  same  extent  as securities which are direct obligations of, or
     3  obligations fully guaranteed as to principal or interest by, the  United
     4  States.
     5    4.  The  obligations of the bank issued pursuant to this article shall
     6  be deemed to be obligations of the state.
     7    § 9109. Audits and reports. 1. The books of account of the bank  shall
     8  be  maintained  in accordance with generally accepted accounting princi-
     9  ples and shall be subject to  an  annual  audit  by  independent  public
    10  accountants  appointed  by the board and of nationally recognized stand-
    11  ing.
    12    2. (a) The board shall submit to the governor and legislature,  within
    13  ninety  days  after  the  last  day  of each fiscal year, a complete and
    14  detailed report with respect  to  the  preceding  fiscal  year,  setting
    15  forth:
    16    (i) a summary of the bank's operations for such preceding fiscal year;
    17    (ii)  a  schedule  of  the  bank's  obligations and capital securities
    18  outstanding at the end of such preceding fiscal year, with  a  statement
    19  of  the amounts issued and redeemed or paid during such preceding fiscal
    20  year; and
    21    (iii) the status of projects receiving  funding  or  other  assistance
    22  pursuant  to  this  article, including, but not limited to disclosure of
    23  all entities with a development, ownership or  operational  interest  in
    24  such projects.
    25    (b)  Not  later than five years after the effective date of this arti-
    26  cle, the New York state comptroller shall submit  to  the  governor  and
    27  legislature  a  report  evaluating activities of the bank for the fiscal
    28  years covered by the report that includes an assessment  of  the  impact
    29  and  benefits  of  each funded project, including a review of how effec-
    30  tively each project accomplished the goals  prioritized  by  the  bank's
    31  project criteria.
    32    3.  (a)  The bank shall maintain adequate books and records to support
    33  the financial transactions of the bank with a description  of  financial
    34  transactions  and  infrastructure  projects  receiving  funding, and the
    35  amount of funding for each project maintained on a  publicly  accessible
    36  database.
    37    (b)  The  books and records of the bank shall be maintained in accord-
    38  ance  with  recommended  accounting  practices  and  shall  be  open  to
    39  inspection by the superintendent and the New York state comptroller.
    40    §  3.  The  sum of two hundred fifty million dollars ($250,000,000) is
    41  hereby appropriated to the banking department out of any moneys  in  the
    42  state  treasury  in the general fund to the credit of the state purposes
    43  account, not otherwise appropriated, and made immediately available, for
    44  the purpose of carrying out the provisions  of  this  act.  Such  moneys
    45  shall be payable on the audit and warrant of the comptroller on vouchers
    46  certified or approved by the superintendent of banking department in the
    47  manner prescribed by law.
    48    §  4.  This  act  shall take effect on the sixtieth day after it shall
    49  have become a law and shall expire and be deemed repealed  December  31,
    50  2032.
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