2006 New York Code - Authorization For Dormitory Authority Financing Of Capital Facilities For State-supported Schools For Blind And Deaf Students.

 
    § 407-b. Authorization  for  dormitory  authority financing of capital
  facilities for state-supported schools for blind and deaf  students.  1.
  The legislature declares that it is in the interest of the state and the
  children  of  the  state  to assure that state-supported schools for the
  instruction  of  blind  and  deaf  students  and  other  children   with
  handicapping  conditions pursuant to article eighty-five of this chapter
  and  chapter  one  thousand  sixty  of  the  laws  of  nineteen  hundred
  seventy-four have sufficient facilities related to the education of such
  children.  The  legislature finds that state-supported schools for blind
  and deaf students providing such education are in need of  improved  and
  additional facilities related to the education of such children, and the
  means  to  finance  the construction of such improvements and additional
  facilities. The legislature, therefore, enacts the following provisions.
    2. This  section  shall  apply  to  state-supported  schools  for  the
  instruction  of  the  blind  and  deaf  students and children with other
  handicapping conditions, subject to the appointment of the commissioner,
  pursuant to article eighty-five of this chapter and chapter one thousand
  sixty of the laws of nineteen hundred seventy-four.
    3. Such state-supported schools may enter into  leases,  subleases  or
  other  agreements with the dormitory authority pursuant to title four of
  article eight of the public authorities law for  the  financing  of  the
  design,   construction,   reconstruction,  rehabilitation,  improvement,
  renovation  or  otherwise  providing  for  furnishing  or  equipping  of
  educational  or residential facilities where the total estimated cost of
  such  facilities  exceeds  ten   thousand   dollars.   The   plans   and
  specifications  of  such capital facilities shall be subject to approval
  of the commissioner. Such educational or residential facilities  may  be
  constructed only on land owned by such state-supported school or, if the
  land  is  leased,  where the lease is for a period at least equal to the
  appropriate period of probable usefulness for such facilities as  listed
  in  section  11.00 of the local finance law, or the length of the lease,
  sublease or other agreement with the dormitory authority,  whichever  is
  longer.
    4.  Each  state-supported  school  shall,  notwithstanding  any  other
  provision of law, have the power to convey, lease, sublease or otherwise
  make available to the dormitory authority without  consideration,  title
  or  any  other  rights  in  real  property satisfactory to the dormitory
  authority.
    5. In addition to providing for all other matters deemed necessary and
  proper, such leases, subleases and other agreements  shall  (a)  require
  the  state-supported  school  to  pay  to the dormitory authority annual
  rentals which shall include the amount required to pay the principal  of
  and  interest  on  obligations  of  the  dormitory  authority  issued in
  relation to providing such facilities and all incidental expenses of the
  dormitory authority  incurred  in  relation  thereto,  (b)  require  the
  state-supported  school  to  include  an  amount  sufficient to meet its
  obligations under  the  lease,  sublease  or  other  agreement  in  each
  proposed  budget  submitted  during  the  term of the lease, sublease or
  other agreement, and (c) a provision that such agreement  shall  not  be
  effective  unless  and  until it is approved by the commissioner and the
  director of the budget.
    6. Title or other real property  rights,  to  the  capital  facilities
  financed  pursuant  to  this  section  shall  remain  with the dormitory
  authority until the dormitory authority certifies  to  the  commissioner
  and the comptroller the receipt by it of the amount necessary to pay the
  aggregate  amount  of annual rentals to the dormitory authority. At such
  time, title or other real property rights thereto shall  be  transferred
  by  the  dormitory  authority to the state-supported school. In order to
  avail itself of the provisions of  this  section,  each  state-supported
  school  must  also  agree  to  continue  to  operate  a  program for the
  education of children pursuant to article eighty-five  of  this  chapter
  and  chapter  one  thousand  sixty  of  the  laws  of  nineteen  hundred
  seventy-four, and any  lease,  sublease  or  other  agreement  with  the
  dormitory  authority  shall  provide that, if the state-supported school
  shall cease to operate at any time during the term of the agreement, the
  school shall have the obligation to pay the total  aggregate  amount  of
  annual rentals to the dormitory authority. Upon a determination that the
  state-supported  school is unable to satisfy such obligations, the state
  may take such title or other  real  property  rights  of  the  dormitory
  authority  in such land, buildings, equipment and other properties which
  the state-supported school uses for its program upon  payments,  subject
  to appropriations, by the state to the dormitory authority of the amount
  required  to  pay  the  total  aggregate amount of annual rentals to the
  dormitory authority.
    7. On or  before  November  fifteenth  of  each  year,  the  dormitory
  authority  shall submit, and thereafter may resubmit, to the director of
  the budget, the state comptroller, the chairman of  the  senate  finance
  committee  and  the  chairman of the assembly ways and means committee a
  report setting  forth  the  amounts,  if  any,  of  all  annual  rentals
  estimated  to  become  due  in  the  succeeding state fiscal year to the
  dormitory authority from the state-supported  schools  pursuant  to  any
  leases,  subleases  or  other agreements between the dormitory authority
  and state-supported  schools  to  provide  educational  and  residential
  facilities for such state-supported schools. The state comptroller shall
  pay  over to the dormitory authority pursuant to appropriations therefor
  solely from moneys available in the school capital facilities  financing
  reserve fund the amount set forth in such report at the times and in the
  amounts  set  forth in the certificate filed with the comptroller by the
  dormitory authority pursuant to subparagraph (iv) of  paragraph  (b)  of
  subdivision eight of this section.
    8.  Method  of  payment; reserve fund. (a) Each state-supported school
  which elects to avail itself of the provisions  of  this  section  shall
  have  established with the state comptroller a school capital facilities
  financing reserve account which shall be used to pay  to  the  dormitory
  authority  the  annual  rentals  payable  to  the dormitory authority by
  state-supported schools which have entered  into  leases,  subleases  or
  other  agreements with the dormitory authority to provide educational or
  residential facilities pursuant to this  section  or  to  reimburse  the
  state  for expenditures from appropriations made pursuant to subdivision
  seven of this section. The dormitory authority  shall  identify  to  the
  state  comptroller  and  to the commissioner the state-supported schools
  with which it has leases, subleases or other agreements pursuant to this
  section and shall annually certify the amount of annual rentals required
  to be paid pursuant to such leases, subleases or other agreements.
    (b) (i) There is hereby  established  in  the  custody  of  the  state
  comptroller  a special fund to be known as the school capital facilities
  financing reserve fund. Within such fund, there is hereby established  a
  special  account  for  each  state-supported  school which enters into a
  lease, sublease or other agreement with the dormitory authority pursuant
  to this section.
    (ii) Notwithstanding the provisions of any other law, such fund  shall
  consist  of  payments  as  made  and determined by the commissioner. The
  comptroller shall maintain sufficient amounts in the fund  in  order  to
  pay when due the annual rentals due to the dormitory authority from each
  such  state-supported  school  pursuant  to any lease, sublease or other
  agreement entered into pursuant to the provisions of this  section.  The
  dormitory authority shall certify to the state comptroller the dates and
  amounts  of  such payments as scheduled in its lease, subleases or other
  agreements with such  state-supported  school.  The  commissioner  shall
  certify  the  amount  of  payments  due  the  fund  from state-supported
  schools, and shall make such payments to  the  fund  at  such  times  as
  appropriate,  subject to the approval of the director of the budget, and
  after consultation with the dormitory authority.
    (iii) Revenues in any special account in the school capital facilities
  financing reserve fund may be commingled with any other moneys  in  such
  fund.  All  deposits of such revenues shall be secured by obligations of
  the United States  or  of  the  state  of  New  York  or  its  political
  subdivisions.  Such  obligations shall have a market value not less than
  one hundred five percent of the amount of such deposits. All  the  banks
  and  trust  companies are authorized to give security for such deposits.
  Any  such  revenues  in  such  fund  may,  in  the  discretion  of   the
  comptroller,  be  invested  in  obligations  of the United States or the
  state or  obligations  the  principal  of  and  interest  on  which  are
  guaranteed  by  the  United  States or by the state. Any interest earned
  shall be credited to such fund.
    (iv) Upon receipt by the comptroller of a certificate or  certificates
  from the dormitory authority that it requires a payment or payments from
  the appropriate special account established for a state-supported school
  to  comply  with any lease, sublease or other agreement pursuant to this
  section, each of which certificate shall specify the required payment or
  payments and the date when the payment  or  payments  is  required,  the
  comptroller  shall  pay  from  such  special  account  on  or before the
  specified date or within thirty days after receipt of  such  certificate
  or  certificates,  whichever is later, to the paying agent designated by
  the dormitory authority in any such certificate, the amount  or  amounts
  so certified.
    (v)  Notwithstanding  any  other provisions of this subdivision to the
  extent that the state makes appropriations for  the  payment  of  annual
  rentals  to  the dormitory authority required to be paid pursuant to the
  terms of any lease, sublease or other agreement  between  the  dormitory
  authority  and  any  state-supported  schools  and  makes such payments,
  moneys in the school capital facilities financing reserve fund shall  be
  used   to   reimburse  the  state  for  moneys  so  expended  from  such
  appropriation.
    (vi)  All  payments  of  money  from  the  school  capital  facilities
  financing  reserve  fund  shall  be made on the audit and warrant of the
  state comptroller.
    9. All state officials are authorized and required  to  take  whatever
  actions  are  necessary  to carry out the provisions of this section and
  any leases, subleases or other agreements entered into pursuant to  this
  section,  including  making  the  required  payments  to  the  dormitory
  authority.
    10. Notwithstanding any other provision of law to  the  contrary,  the
  dormitory  authority  may execute leases, subleases, or other agreements
  with state supported schools for financing of the design,  construction,
  rehabilitation,   improvement,  renovation,  acquisition  or  provision,
  furnishing or equipping of capital facilities; provided,  however,  that
  during  the  two  year  period  commencing  July first, nineteen hundred
  ninety-five, the amount of bonds inclusive of  principal,  interest  and
  issuance  costs  to  be  issued  for each individual lease, sublease, or
  other agreement shall  not  exceed  fifteen  million  dollars  annually;
  provided  further  that  the  interest on such bonds may not be deferred
  through additional borrowing; and provided finally that the total amount
  of such bonds for all such leases, subleases, or agreements  with  state
  supported schools during such period shall not exceed sixty-five million
  dollars.
    On  or  before  September  first  of each year, the commissioner shall
  submit to the chairs of the  assembly  ways  and  means  committee,  the
  senate  finance committee and the director of the budget, a capital plan
  for those projects expected to be bonded  for  state  supported  schools
  pursuant   to  this  section,  within  such  sixty-five  million  dollar
  allowance. After application of the principles  of  the  capital  assets
  preservation  program,  such  plan  shall  accord priority to health and
  safety considerations and shall specify the  name,  location,  estimated
  total  cost  of  the  project  at the time the project is to be bid, the
  anticipated bid date and the anticipated completion date and may contain
  any further recommendations the commissioner may deem appropriate.