§ 407-A — Authorization for dormitory authority financing of capital facilities for special act school districts

New York § 407-A

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 9: School Buildings and Sites

Text

§ 407-a. Authorization for dormitory authority financing of capital\nfacilities for special act school districts. 1. The legislature\ndeclares that it is in the interest of the state, the school districts\nand the children of the state to assure that special act school\ndistricts educating children with handicapping conditions pursuant to\ncontracts with public school districts or social services districts have\nsufficient facilities related to the education of such children. The\nlegislature finds that special act school districts providing such\neducation are in need of improved and additional facilities related to\nthe education of such children, and the means to finance the\nconstruction of such improvements and additional facilities. The\nlegislature, therefore, enacts the following provisions.\n 2. This section shall apply to special act school districts listed in\nchapter five hundred sixty-six of the laws of nineteen hundred\nsixty-seven, as amended, which contract with public school districts or\nsocial services districts for the education of children with\nhandicapping conditions pursuant to article eighty-one or eighty-nine of\nthis chapter.\n 3. Such special act school districts may enter into leases, subleases\nor other agreements with the dormitory authority pursuant to title four\nof article eight of the public authorities law for the financing of the\ndesign, construction, reconstruction, rehabilitation, improvement,\nrenovation or otherwise providing for, furnishing or equipping of\ncapital facilities which are educational facilities where the total\nestimated cost of such facilities exceeds ten thousand dollars. The\nplans and specifications of such capital facilities shall be subject to\nthe approval of the commissioner with respect to educational facilities.\nSuch capital facilities may be constructed only on land owned by such\nspecial act school district or, if the land is leased, where the lease\nis for a period at least equal to the appropriate period of probable\nusefulness for such facilities as listed in section 11.00 of the local\nfinance law, or the length of the lease, sublease or other agreement\nwith the dormitory authority, whichever is longer.\n 4. Each such special act school district shall, notwithstanding any\nother provision of law, have the power to convey, lease, sublease or\notherwise make available to the dormitory authority without\nconsideration, title or any other rights in real property satisfactory\nto the dormitory authority.\n 5. In addition to providing for all other matters deemed necessary and\nproper, such leases, subleases and other agreements shall (a) require\nsuch special act school district to pay to the dormitory authority\nannual rentals which shall include the amount required to pay the\nprincipal of and interest on obligations of the dormitory authority\nissued in relation to providing such facilities and all incidental\nexpenses of the dormitory authority incurred in relation thereto, (b)\nrequire the special act school district to include an amount sufficient\nto meet its obligations under the lease, sublease or other agreement in\neach proposed budget submitted during the term of the lease, sublease or\nother agreement and (c) include a provision that such agreement shall\nnot be effective unless and until it is approved by the commissioner\nwith respect to educational facilities.\n 6. Title or other real property rights to the capital facilities\nfinanced pursuant to this section shall remain with the dormitory\nauthority until the dormitory authority certifies to the commissioner\nwith respect to educational facilities and the comptroller the receipt\nby it of the amount necessary to pay the total aggregate amount of\nannual rentals to the dormitory authority. At such time, title or other\nreal property rights thereto shall be transferred by the dormitory\nauthority to such special act school district for use for educational\npurposes. In order to avail itself of the provisions of this section,\neach such special act school district must also agree to continue to\noperate a program for the education of children pursuant to contract\nwith public school districts or social services districts, and such\nlease, sublease or other agreement with the dormitory authority shall\nprovide that, if the special act school district shall cease to operate\nsuch a program at any time during the term of the agreement, the state\nwill have the option to take title or other real property rights in\nland, buildings, equipment and other properties which the special act\nschool district uses for its program upon, subject to appropriations,\npayment by the state to the dormitory authority of the amount required\nto pay the total aggregate amount of annual rentals to the dormitory\nauthority.\n 7. On or before November fifteenth of each year, the dormitory\nauthority shall submit, and thereafter may resubmit, to the director of\nthe budget, the state comptroller, the chairman of the senate finance\ncommittee and the chairman of the assembly ways and means committee a\nreport setting forth the amounts, if any, of all annual rentals\nestimated to become due in the succeeding state fiscal year to the\ndormitory authority from the special act school districts pursuant to\nany leases, subleases or other agreements between the dormitory\nauthority and such special act school districts to provide educational\nfacilities for such special act school district. The state comptroller\nshall pay over to the dormitory authority pursuant to appropriations\ntherefor solely from moneys available in the school capital facilities\nfinancing reserve fund the amount set forth in such report at the times\nand in the amounts set forth in the certificate filed with the\ncomptroller by the dormitory authority pursuant to subparagraph (iv) of\nparagraph (b) of subdivision eight of this section.\n 8. Method of payment; reserve fund. (a) Each special act school\ndistrict which elects to avail itself of the provisions of this section\nshall have established with the state comptroller a school capital\nfacilities financing reserve account which shall be used to pay to the\ndormitory authority the annual rentals payable to the dormitory\nauthority by special act school districts which have entered into\nleases, subleases or other agreements with the dormitory authority to\nprovide educational facilities pursuant to the provisions of this\nsection. The dormitory authority shall identify to the state comptroller\nand to the commissioner with respect to educational facilities, the\nspecial act school districts with which it has leases, subleases or\nother agreements pursuant to this section and shall annually certify the\namount of annual rentals required to be paid pursuant to such leases,\nsubleases or other agreements.\n (b) (i) There is hereby established in the custody of the state\ncomptroller a special fund to be known as the school capital facilities\nfinancing reserve fund. Within such fund, there is hereby established a\nspecial account for each special act school district which enters into a\nlease, sublease or other agreement with the dormitory authority pursuant\nto this section.\n (ii) Notwithstanding the provisions of any other law, such fund shall\nconsist of part of the tuition payments from public school districts and\nsocial services districts as determined by the commissioner, and state\naid to special act school districts pursuant to subdivision six of\nsection thirty-six hundred two of this chapter as determined by the\ncommissioner. The comptroller shall maintain sufficient amounts in the\nfund in order to pay when due the annual rentals due to the dormitory\nauthority from each such special act school district pursuant to any\nlease, sublease or other agreement entered into pursuant to the\nprovisions of this section. The dormitory authority shall certify to\nthe state comptroller the dates and amount of such annual payments as\nscheduled in its leases, subleases or other agreements with such special\nact school districts. The commissioner with respect to educational\nfacilities shall certify the amount of payments due the fund from public\nschool districts and social services districts, respectively and such\npublic school districts and social services districts shall make such\npayments to the fund at such times as shall be prescribed by the\ncommissioner with respect to educational facilities, subject to the\napproval of the director of the budget, and after consultation with the\ndormitory authority.\n (iii) Revenues in any special account in the school capital facilities\nfinancing reserve fund may be commingled with any other moneys in such\nfund. All deposits of such revenues with banks and trust companies shall\nbe secured by obligations of the United States or of the state of New\nYork or its political subdivisions. Such obligations shall have a\nmarket value at least equal at all times to, but not less than, one\nhundred five percent of the amount of such deposits. All banks and trust\ncompanies are authorized to give security for such deposits. Any such\nrevenues in such fund may, in the discretion of the comptroller, be\ninvested in obligations of the United States or the state or obligations\nthe principal of and interest on which are guaranteed by the United\nStates or by the state. Any interest earned shall be credited to such\nfund.\n (iv) Upon receipt by the comptroller of a certificate or certificates\nfrom the dormitory authority that it requires a payment or payments from\nthe appropriate special account established for a special act school\ndistrict in order for such special act school district to comply with\nany lease, sublease or other agreement pursuant to this section, each of\nwhich certificates shall specify the required payment or payments and\nthe date when the payment or payments is required, the comptroller shall\npay from such special account on or before the specified date or within\nthirty days after receipt of such certificate or certificates, whichever\nis later, to the paying agent designated by the dormitory authority in\nany such certificate, the amount or amounts so certified.\n (v) All payments of money from the school capital facilities financing\nreserve fund shall be made on the audit and warrant of the state\ncomptroller.\n 9. Notwithstanding the provisions of any contract pursuant to article\neighty-one or eighty-nine of this chapter between a social services\ndistrict or a public school district and a special act school district,\nif the special act school district enters into a lease, sublease or\nother agreement with the dormitory authority pursuant to this section,\npayments due from the public school district or social services district\nshall be made in accordance with the provisions of this section.\n 10. All state and local officials are authorized and required to take\nwhatever actions are necessary to carry out the provisions of this\nsection and the provisions of any leases, subleases or other agreements\nentered into pursuant to this section, including making the required\npayments to the dormitory authority.\n 11. Any contract undertaken or financed by the dormitory authority for\nany construction, reconstruction, rehabilitation or improvement for any\nspecial act school district shall comply with the provisions of sections\none hundred one and one hundred three of the general municipal law.\n 12. Notwithstanding any other provision of law to the contrary, the\ndormitory authority may execute leases, subleases, or other agreements\nwith special act school districts for financing of the design,\nconstruction, rehabilitation, improvement, renovation, acquisition or\nprovision, furnishing or equipping of capital facilities; provided,\nhowever, that during the two year period commencing July first, nineteen\nhundred ninety-five, the amount of bonds inclusive of principal,\ninterest and issuance costs to be issued for each individual lease,\nsublease, or other agreement shall not exceed fifteen million dollars\nannually; and provided further that the total amount of such bonds for\nall such leases, subleases, or agreements with special act school\ndistricts during such period shall not exceed twenty million dollars.\nOn or before September first of each year, the commissioner shall submit\nto the chairs of the assembly ways and means committee, the senate\nfinance committee and the director of the budget, a capital plan for\nthose projects expected to be bonded for special act school districts\npursuant to this section, within such twenty million dollar allowance.\nAfter application of the principles of the capital assets preservation\nprogram, such plan shall accord priority to health and safety\nconsiderations and shall specify the name, location, estimated total\ncost of the project at the time the project is to be bid, the\nanticipated bid date and the anticipated completion date and may contain\nany further recommendations the commissioner may deem appropriate.\n