§ 53 — No title

§ 53. 1. Notwithstanding the provisions of any other law to the\ncontrary, the dormitory authority and the urban development corporation\nare hereby authorized to issue bonds or notes in one or more series for\nthe purpose of funding project costs for the acquisition of equipment,\nincluding but not limited to the creation or modernization of\ninformation technology systems and related research and development\nequipment, health and safety equipment, heavy equipment and machinery,\nthe creation or improvement of security systems, and laboratory\nequipment and other state costs associated with such capital projects.\nThe aggregate principal amount of bonds authorized to be issued pursuant\nto this section shall not exceed six hundred ninety-three million\ndollars $693,000,000, excluding bonds issued to fund one or more debt\nservice reserve funds, to pay costs of issuance of such bonds, and bonds\nor notes issued to refund or otherwise repay such bonds or notes\npreviously issued. Such bonds and notes of the dormitory authority and\nthe urban development corporation shall not be a debt of the state, and\nthe state shall not be liable thereon, nor shall they be payable out of\nany funds other than those appropriated by the state to the dormitory\nauthority and the urban development corporation for principal, interest,\nand related expenses pursuant to a service contract and such bonds and\nnotes shall contain on the face thereof a statement to such effect.\nExcept for purposes of complying with the internal revenue code, any\ninterest income earned on bond proceeds shall only be used to pay debt\nservice on such bonds.\n 2. Notwithstanding any other provision of law to the contrary, in\norder to assist the dormitory authority and the urban development\ncorporation in undertaking the financing for project costs for the\nacquisition of equipment, including but not limited to the creation or\nmodernization of information technology systems and related research and\ndevelopment equipment, health and safety equipment, heavy equipment and\nmachinery, the creation or improvement of security systems, and\nlaboratory equipment and other state costs associated with such capital\nprojects, the director of the budget is hereby authorized to enter into\none or more service contracts with the dormitory authority and the urban\ndevelopment corporation, none of which shall exceed thirty years in\nduration, upon such terms and conditions as the director of the budget\nand the dormitory authority and the urban development corporation agree,\nso as to annually provide to the dormitory authority and the urban\ndevelopment corporation, in the aggregate, a sum not to exceed the\nprincipal, interest, and related expenses required for such bonds and\nnotes. Any service contract entered into pursuant to this section shall\nprovide that the obligation of the state to pay the amount therein\nprovided shall not constitute a debt of the state within the meaning of\nany constitutional or statutory provision and shall be deemed executory\nonly to the extent of monies available and that no liability shall be\nincurred by the state beyond the monies available for such purpose,\nsubject to annual appropriation by the legislature. Any such contract or\nany payments made or to be made thereunder may be assigned and pledged\nby the dormitory authority and the urban development corporation as\nsecurity for its bonds and notes, as authorized by this section.\n