Establishes the New York state infrastructure bank to monitor and oversee infrastructure projects in the state, and to award financial assistance for such projects in the form of bonds.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5842
SPONSOR: Tapia TITLE OF BILL:
An act to amend the state finance law, in relation to establishing the
New York state infrastructure bank
PURPOSE:
This bill establishes the New York State Infrastructure Bank (NYSIB) to
provide financial assistance for infrastructure projects across the
state. The bank will serve as a funding mechanism for critical infras-
tructure investments, including transportation, water systems, energy
efficiency, broadband expansion, and public facilities.
SUMMARY OF PROVISIONS:
*Short Title: This act shall be known as the "New York State Infrastruc-
ture Bank Act."
*Establishment of the Infrastructure Bank:
*Creates the NYSIB as a public benefit corporation and an instrumentali-
ty of the state.
*The bank will be governed by a Board of Directors consisting of five
members appointed by the Governor with Senate and Assembly approval.
*The board will include two members with public sector experience and
three members with private sector experience.
*Powers and Duties of the Infrastructure Bank:
*The bank will be responsible for financing infrastructure projects that
promote economic growth, sustainability, and job creation.
*It will have the authority to:
-Issue public bonds and provide direct subsidies.
-Borrow on global capital markets and lend to entities for infrastruc-
ture funding.
-Purchase, pool, and sell infrastructure-related loans and securities.
-Conduct economic, environmental, and social impact analyses for project
funding.
*Eligible Infrastructure Projects:
*Transportation (roads, bridges, transit systems).
*Water and wastewater treatment.
*Energy efficiency and renewable energy projects.
*Broadband and telecommunications infrastructure.
*Public safety and social service facilities.
*Affordable housing and school modernization.
*Project Eligibility & Oversight:
*Projects will be prioritized based on economic impact, job creation,
environmental sustainability, and regional significance.
*The bank will conduct annual reports and audits to ensure compliance
with financial and ethical standards.
*Financial assistance will only be available to applicants that meet
specific eligibility criteria and contribute to the state's economic
development goals.
*Exemption from Taxation:
*Bonds, loans, and other financial instruments issued by the bank will
be exempt from state and local taxation.
*Severability Clause:
*If any part of the bill is deemed invalid, the remainder shall remain
in effect.
JUSTIFICATION:
New York's infrastructure is in critical need of modernization, and
existing funding mechanisms are often insufficient to meet long-term
needs. The creation of a state infrastructure bank will provide a dedi-
cated financial resource to support essential projects, reduce reliance
on federal funding, and attract private investment. By leveraging inno-
vative financing tools such as bonds, loans, and public-private partner-
ships, the NYSIB will promote long-term, sustainable infrastructure
development while creating jobs and improving public services.
LEGISLATIVE HISTORY:
This is a new proposal.
FISCAL IMPLICATIONS:
While the bank will require an initial capital investment, it is
designed to be self-sustaining through loan repayments, bond issuances,
and investment returns. The long-term economic benefits, including job
creation and improved infrastructure efficiency, are expected to
outweigh initial costs.
EFFECTIVE DATE:
This act shall take effect one year after becoming law. Regulatory
provisions may be enacted immediately to facilitate implementation.
