§ 407-B — Authorization for dormitory authority financing of capital facilities for state-supported schools for blind and deaf students

New York § 407-B

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

Text

§ 407-b. Authorization for dormitory authority financing of capital\nfacilities for state-supported schools for blind and deaf students. 1.\nThe legislature declares that it is in the interest of the state and the\nchildren of the state to assure that state-supported schools for the\ninstruction of blind and deaf students and other children with\nhandicapping conditions pursuant to article eighty-five of this chapter\nand chapter one thousand sixty of the laws of nineteen hundred\nseventy-four have sufficient facilities related to the education of such\nchildren. The legislature finds that state-supported schools for blind\nand deaf students providing such education are in need of improved and\nadditional facilities related to the education of such children, and the\nmeans to finance the construction of such improvements and additional\nfacilities. The legislature, therefore, enacts the following provisions.\n 2. This section shall apply to state-supported schools for the\ninstruction of the blind and deaf students and children with other\nhandicapping conditions, subject to the appointment of the commissioner,\npursuant to article eighty-five of this chapter and chapter one thousand\nsixty of the laws of nineteen hundred seventy-four.\n 3. Such state-supported schools may enter into leases, subleases or\nother agreements with the dormitory authority pursuant to title four of\narticle 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\neducational or residential facilities where the total estimated cost of\nsuch facilities exceeds ten thousand dollars. The plans and\nspecifications of such capital facilities shall be subject to approval\nof the commissioner. Such educational or residential facilities may be\nconstructed only on land owned by such state-supported school or, if the\nland is leased, where the lease is for a period at least equal to the\nappropriate period of probable usefulness for such facilities as listed\nin section 11.00 of the local finance law, or the length of the lease,\nsublease or other agreement with the dormitory authority, whichever is\nlonger.\n 4. Each state-supported school shall, notwithstanding any other\nprovision of law, have the power to convey, lease, sublease or otherwise\nmake available to the dormitory authority without consideration, title\nor any other rights in real property satisfactory to the dormitory\nauthority.\n 5. In addition to providing for all other matters deemed necessary and\nproper, such leases, subleases and other agreements shall (a) require\nthe state-supported school to pay to the dormitory authority annual\nrentals which shall include the amount required to pay the principal of\nand interest on obligations of the dormitory authority issued in\nrelation to providing such facilities and all incidental expenses of the\ndormitory authority incurred in relation thereto, (b) require the\nstate-supported school to include an amount sufficient to meet its\nobligations under the lease, sublease or other agreement in each\nproposed budget submitted during the term of the lease, sublease or\nother agreement, and (c) a provision that such agreement shall not be\neffective unless and until it is approved by the commissioner and the\ndirector of the budget.\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\nand the comptroller the receipt by it of the amount necessary to pay the\naggregate amount of annual rentals to the dormitory authority. At such\ntime, title or other real property rights thereto shall be transferred\nby the dormitory authority to the state-supported school. In order to\navail itself of the provisions of this section, each state-supported\nschool must also agree to continue to operate a program for the\neducation of children pursuant to article eighty-five of this chapter\nand chapter one thousand sixty of the laws of nineteen hundred\nseventy-four, and any lease, sublease or other agreement with the\ndormitory authority shall provide that, if the state-supported school\nshall cease to operate at any time during the term of the agreement, the\nschool shall have the obligation to pay the total aggregate amount of\nannual rentals to the dormitory authority. Upon a determination that the\nstate-supported school is unable to satisfy such obligations, the state\nmay take such title or other real property rights of the dormitory\nauthority in such land, buildings, equipment and other properties which\nthe state-supported school uses for its program upon payments, subject\nto appropriations, by the state to the dormitory authority of the amount\nrequired to pay the total aggregate amount of annual rentals to the\ndormitory authority.\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 state-supported schools pursuant to any\nleases, subleases or other agreements between the dormitory authority\nand state-supported schools to provide educational and residential\nfacilities for such state-supported schools.\n The state comptroller shall pay over to the dormitory authority\npursuant to appropriations therefor solely from moneys available in the\nschool capital facilities financing reserve fund the amount set forth in\nsuch report at the times and in the amounts set forth in the certificate\nfiled with the comptroller by the dormitory authority pursuant to\nsubparagraph (iv) of paragraph (b) of subdivision eight of this section.\n 8. Method of payment; reserve fund. (a) Each state-supported school\nwhich elects to avail itself of the provisions of this section shall\nhave established with the state comptroller a school capital facilities\nfinancing reserve account which shall be used to pay to the dormitory\nauthority the annual rentals payable to the dormitory authority by\nstate-supported schools which have entered into leases, subleases or\nother agreements with the dormitory authority to provide educational or\nresidential facilities pursuant to this section or to reimburse the\nstate for expenditures from appropriations made pursuant to subdivision\nseven of this section. The dormitory authority shall identify to the\nstate comptroller and to the commissioner the state-supported schools\nwith which it has leases, subleases or other agreements pursuant to this\nsection and shall annually certify the amount of annual rentals required\nto be paid pursuant to such leases, subleases 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 state-supported school 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 payments as made and determined by the commissioner. The\ncomptroller shall maintain sufficient amounts in the fund in order to\npay when due the annual rentals due to the dormitory authority from each\nsuch state-supported school pursuant to any lease, sublease or other\nagreement entered into pursuant to the provisions of this section. The\ndormitory authority shall certify to the state comptroller the dates and\namounts of such payments as scheduled in its lease, subleases or other\nagreements with such state-supported school. The commissioner shall\ncertify the amount of payments due the fund from state-supported\nschools, and shall make such payments to the fund at such times as\nappropriate, subject to the approval of the director of the budget, and\nafter consultation with the dormitory 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 shall be secured by obligations of\nthe United States or of the state of New York or its political\nsubdivisions. Such obligations shall have a market value not less than\none hundred five percent of the amount of such deposits. All the banks\nand trust companies are authorized to give security for such deposits.\nAny such revenues in such fund may, in the discretion of the\ncomptroller, be invested in obligations of the United States or the\nstate or obligations the principal of and interest on which are\nguaranteed by the United States or by the state. Any interest earned\nshall be credited to such fund.\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 state-supported school\nto comply with any lease, sublease or other agreement pursuant to this\nsection, each of which certificate shall specify the required payment or\npayments and the date when the payment or payments is required, the\ncomptroller shall pay from such special account on or before the\nspecified date or within thirty days after receipt of such certificate\nor certificates, whichever is later, to the paying agent designated by\nthe dormitory authority in any such certificate, the amount or amounts\nso certified.\n (v) Notwithstanding any other provisions of this subdivision to the\nextent that the state makes appropriations for the payment of annual\nrentals to the dormitory authority required to be paid pursuant to the\nterms of any lease, sublease or other agreement between the dormitory\nauthority and any state-supported schools and makes such payments,\nmoneys in the school capital facilities financing reserve fund shall be\nused to reimburse the state for moneys so expended from such\nappropriation.\n (vi) All payments of money from the school capital facilities\nfinancing reserve fund shall be made on the audit and warrant of the\nstate comptroller.\n 9. All state officials are authorized and required to take whatever\nactions are necessary to carry out the provisions of this section and\nany leases, subleases or other agreements entered into pursuant to this\nsection, including making the required payments to the dormitory\nauthority.\n 10. Notwithstanding any other provision of law to the contrary, the\ndormitory authority may execute leases, subleases, or other agreements\nwith state supported schools for financing of the design, construction,\nrehabilitation, improvement, renovation, acquisition or provision,\nfurnishing or equipping of capital facilities; provided, however, that\nduring the two year period commencing July first, nineteen hundred\nninety-five, the amount of bonds inclusive of principal, interest and\nissuance costs to be issued for each individual lease, sublease, or\nother agreement shall not exceed fifteen million dollars annually;\nprovided further that the interest on such bonds may not be deferred\nthrough additional borrowing; and provided finally that the total amount\nof such bonds for all such leases, subleases, or agreements with state\nsupported schools during such period shall not exceed sixty-five million\ndollars.\n On or before September first of each year, the commissioner shall\nsubmit to the chairs of the assembly ways and means committee, the\nsenate finance committee and the director of the budget, a capital plan\nfor those projects expected to be bonded for state supported schools\npursuant to this section, within such sixty-five million dollar\nallowance. After application of the principles of the capital assets\npreservation program, such plan shall accord priority to health and\nsafety considerations and shall specify the name, location, estimated\ntotal cost 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