NY Educ L § 407-B (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 9 - School Buildings and Sites 407-B - 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.