§ 1689-F — Public school districts; dormitory authority financing of payments made or to be made by the state on account of certain approved expendi...

§ 1689-f. Public school districts; dormitory authority financing of\npayments made or to be made by the state on account of certain approved\nexpenditures for capital outlays.\n 1. (a) "Eligible school district projects" shall mean capital projects\neligible for a capital outlay transition grant aid apportionment\npursuant to subdivision twelve of section thirty-six hundred forty-one\nof the education law for which payments are made, as reimbursement of\napproved expenditures, from a school district's general fund, capital\nfund, or reserved funds for capital outlays as defined in subdivision\nsix of section thirty-six hundred two of the education law, that are\nincurred by the school district on or after July first, two thousand one\nand on or before June thirtieth, two thousand two, and are not otherwise\nreimbursable in the two thousand two--two thousand three school year\npursuant to subdivision six of section thirty-six hundred two of the\neducation law.\n (b) Notwithstanding the provisions of any general or special law to\nthe contrary, for purposes of this section, the term "school district"\nshall mean a common school district, a consolidated school district, a\nunion free school district, a central school district, a central high\nschool district, or a city school district.\n 2. (a) Subject to chapter fifty-nine of the laws of two thousand, but\nnotwithstanding any other provisions of any general or special law to\nthe contrary, and subject to the making of annual appropriations\ntherefor by the legislature, the dormitory authority is authorized to\nenter into one or more service contracts, none of which shall exceed ten\nyears in duration, with the director of the budget, upon such terms as\nthe director of the budget and the dormitory authority agree, for the\npurpose of financing eligible school district projects.\n (b) Any service contract entered into pursuant to paragraph (a) of\nthis subdivision or any payments made or to be made thereunder may be\nassigned and pledged by the dormitory authority as security for its\nbonds, notes, or other obligations; and may contain such other items and\nconditions as may be agreed upon by the parties thereto, including, but\nnot limited to, the establishment of reserve funds and indemnities.\n (c) Any such service contract shall provide that the obligation of the\ndirector of the budget or of the state to fund or to pay the amounts\ntherein provided for shall not constitute a debt of the state within the\nmeaning of any constitutional or statutory provision and shall be deemed\nexecutory only to the extent moneys are available and that no liability\nshall be incurred by the state beyond the moneys available for the\npurpose, and that such obligation is subject to annual appropriation by\nthe legislature;\n (d) Any service contract or contracts entered into pursuant to this\nsubdivision shall provide for state commitments to provide annually to\nthe dormitory authority a sum or sums, upon such terms and conditions as\nshall be deemed appropriate by the director of the budget, to fund the\nprincipal, interest, or related expenses required for any bonds, notes,\nor other obligations, including bonds issued to fund any required debt\nservice reserve fund for bonds, of the dormitory authority issued\npursuant to paragraph (b) of subdivision four of this section.\n 3. (a) The commissioner of education shall certify, by September\nthirtieth, two thousand two, to the dormitory authority, and the\ndirector of the budget, each school district for which he has approved a\ncapital outlay transition grant pursuant to subdivision twelve of\nsection thirty-six hundred forty-one of the education law for an\neligible school district project as reimbursement of approved\nexpenditures for capital outlays in lieu of aid previously payable\npursuant to subdivision six of section thirty-six hundred two of the\neducation law, (1) a description of the eligible school district\nprojects for which such aid is granted for each school district,\nincluding the cost of each project, and such other information regarding\nthe expenditures for capital outlays requested by the dormitory\nauthority as is necessary for the issuance of bonds, notes, or other\nobligations, pursuant to this section and (2) the amount of that grant.\n (b) On or before October first of each year, the dormitory authority\nshall submit, and thereafter may resubmit, to the director of the budget\na report setting forth the amounts, if any, of all annual payments\nrequired in the next state fiscal year and for the four state fiscal\nyears following such fiscal year estimated to be appropriated to the\ndormitory authority pursuant to such service contract agreements between\nthe dormitory authority and the director of the budget pursuant to this\nsection. Such report may be incorporated into other reports required to\nbe given by the dormitory authority to the director of the budget on or\nbefore those dates.\n 4. (a) To obtain funds for the purposes of this section, the authority\nshall have power from time to time to issue negotiable bonds or notes of\nthe authority. Unless the context shall clearly indicate otherwise,\nwhenever the words "bond" or "bonds" are used in this section, such\nwords shall include a note or notes of the authority. All the provisions\nof this title not inconsistent with the provisions of this section shall\nbe applicable with respect to any bonds of the authority issued to\nobtain funds for the purposes authorized under this section.\n (b) The dormitory authority shall not issue any bonds or notes in an\namount in excess of one hundred forty million dollars for the purposes\nof this section, plus a principal amount of bonds or notes:\n (1) to fund any debt service reserve fund, and\n (2) to provide for the payment of fees and other charges and expenses,\nincluding underwriters' discount, related to the issuance of such bonds\nor notes, or related to the provision of any applicable bond or note\nfacilities.\n In computing for the purposes of this paragraph, the aggregate amount\nof indebtedness evidenced by bonds and notes of the dormitory authority\nissued pursuant to this title, there shall be excluded the amount of\nsuch indebtedness represented by such bonds or notes issued to refund or\notherwise repay bonds or notes, provided that the amount so excluded\nunder the clause may exceed the principal amount of such bonds or notes\nthat were issued to refund or otherwise repay only if the present value\nof the aggregate debt service on the refunding or repayment bonds or\nnotes shall not have at the time of their issuance exceeded the present\nvalue of the aggregate debt service of the bonds or notes they were\nissued to refund or repay, such present value in each case being\ncalculated by using the effective interest rate of the refunding or\nrepayment bonds or notes, which shall be that rate arrived at by\ndoubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment bonds or notes from the payment date thereof to the date of\nissue of the refunding or repayment bonds or notes from the payment date\nthereof to the date of issue of the refunding or repayment bonds or\nnotes and to the price bid therefor, or to the proceeds received by the\ndormitory authority from the sale thereof, in each case including\nestimated accrued interest.\n 5. The state hereby covenants with the purchasers, holders and owners\nfrom time to time of the bonds of the authority issued pursuant to this\nsection that it will not repeal, revoke, rescind, modify or amend the\nprovisions of this section which relate to the making of annual service\ncontract payments to the authority with respect to such bonds as to\nlimit, impair or impede the rights and remedies granted to bondholders\nunder this title or otherwise diminish the security pledged to such\npurchasers, holders and owners or significantly impair the prospect of\npayment of any such bond.\n