2023 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.