NY State Assembly Bill 2009-A8574

Assembly Bill A8574

2009-2010 Legislative Session

Provides for the financing and construction of capital facilities for certain not-for-profit corporations affiliated with the state university of New York

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to corporations, authorities and commissions
May 28, 2009	referred to corporations, authorities and commissions

2009-A8574 (ACTIVE) - Details

Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§1676 & 1680, Pub Auth L

2009-A8574 (ACTIVE) - Summary

Provides for the financing and construction of capital facilities for certain not-for-profit corporations affiliated with the state university of New York.

2009-A8574 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8574

TITLE OF BILL:  An act to amend the public authorities law, in relation
to providing for the financing and construction of capital facilities
for certain not-for-profit corporations affiliated with the state
university of New York

PURPOSE OF BILL:

This bill would authorize the Dormitory Authority of the State of New
York ("DASNY") to provide financing and construction services to any
not-for-profit corporation organized by officers, employees, alumni or
students of the State University of New York ("SUNY") for the purpose of
providing housing facilities, academic and administration buildings,
libraries, laboratories, classrooms or any other facility, building or
structure essential, necessary or useful in furthering the academic,
cultural, health or research programs of SUNY.

SUMMARY OF PROVISIONS:

Sections 1 and 2 of the bill would amend the definition of "dormitory"
and "educational institution", respectively, to include any not-for-pro-
fit corporation organized by officers, employees, alumni or students of
SUNY qualified as tax-exempt under the Internal Revenue Code for the
purpose of providing housing or other facilities, including academic and
administration buildings, libraries, laboratories, classrooms or any

other facility, building or structure essential, necessary or useful in
furthering the academic, cultural, health or research programs of SUNY.
DASNY, however, would not be permitted to undertake any project pursuant
to this authorization unless SUNY consents to the project. The bill also
would provide that any work undertaken by DASNY pursuant to this author-
ization would be public work under the Labor Law and subject to Minority
and Women-owned business provisions under Article 15-A of the Executive
Law.

These sections further authorize the not-for-profit corporation, SUNY
and the State University Construction Fund to enter into agreements with
DASNY and take such actions as are necessary to: (a) undertake the
financing of any facility for such not-for-profit corporation, includ-
ing, but not limited to, providing for the sale, lease, transfer or
conveyance of state-owned property under the jurisdiction of the State
University to the not-for-profit entity; and (b) grant DASNY a lien on
any revenues, property or moneys pledged by the not-for-profit corpo-
ration to DASNY to secure the payment of all amounts owed to DASNY.  It
further authorizes and requires state officers to pay any funds that are
so assigned and pledged to DASNY or, upon the direction of DASNY, to any
trustee of any dormitory authority bond or note issue.

Section 3 of the bill provides for an immediate effective date.

EXISTING LAW:

DASNY is currently able to provide construction and financing services
to SUNY but not to not - for-profit corporations organized for the bene-
fit of SUNY.

PRIOR LEGISLATIVE HISTORY:

A similar bill (S.5188) was introduced at the request of SUNY during the
2005-2006 Session.

STATEMENT IN SUPPORT:

Although DASNY is currently able to provide construction and financing
services directly to SUNY through DASNY's existing programs, some SUNY
colleges and universities have identified situations when it would be in
their best interests to undertake certain projects through legally sepa-
rate not-for-profit entities established for these purposes. Among the
benefits of financing through these separate entities would be the abil-
ity to utilize revenues and assets of the not-for-profit corporation to
secure any debt issued to finance the cost of the project. This bill
would provide DASNY with the flexibility to meet these needs.

The New York State Commission on Higher Education's Final Report recog-
nized the need to upgrade and enhance SUNY facilities. As stated in the
Report: "For New York State's public universities to remain competitive
with those in other key states, additional capital investment is
required. Compared to public systems in peer states, New York ranks
fifth in overall capital investment for the most recent five-year period
available (2001-01 through 2005-06), and sixth on a per FTE basis...It
is important to identify innovative financing structures...or otherwise
provide financial support for investment in priority needs and initi-
atives (e.g., public-private partnerships)."

BUDGET IMPLICATIONS:

No adverse impact.

EFFECTIVE DATE:

This act shall take effect immediately.

2009-A8574 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8574

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 28, 2009
                               ___________

Introduced  by M. of A. PEOPLES -- (at request of the Dormitory Authori-
  ty) -- read once  and  referred  to  the  Committee  on  Corporations,
  Authorities and Commissions

AN ACT to amend the public authorities law, in relation to providing for
  the  financing and construction of capital facilities for certain not-
  for-profit corporations affiliated with the state  university  of  New
  York

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision  2  of  section  1676  of  the
public authorities law is amended by adding a new undesignated paragraph
to read as follows:
  ANY ENTITY ORGANIZED BY OFFICERS, EMPLOYEES, ALUMNI OR STUDENTS OF THE
STATE  UNIVERSITY OF NEW YORK TO SUPPORT THE STATE UNIVERSITY AND QUALI-
FIED AS AN ORGANIZATION UNDER THE UNITED STATES INTERNAL REVENUE CODE AS
AS EXEMPT FROM INCOME TAX FOR THE FINANCING,  REFINANCING,  ACQUISITION,
DESIGN,   CONSTRUCTION,   RECONSTRUCTION,  REHABILITATION,  IMPROVEMENT,
FURNISHING AND EQUIPPING OF ANY HOUSING UNIT FOR THE  USE  OF  STUDENTS,
FACULTY,  STAFF  AND  THEIR  FAMILIES OR ANY ACADEMIC BUILDING, ADMINIS-
TRATION BUILDING, LIBRARY, LABORATORY,  CLASSROOM,  HEALTH  FACILITY  OR
OTHER  FACILITY, BUILDING OR STRUCTURE ESSENTIAL, NECESSARY OR USEFUL IN
FURTHERING THE ACADEMIC, CULTURAL, HEALTH OR RESEARCH  PROGRAMS  OF  THE
STATE  UNIVERSITY OF NEW YORK, INCLUDING ALL NECESSARY AND USUAL ATTEND-
ANT AND RELATED FACILITIES AND EQUIPMENT.
  S 2. Subdivision 1 of section 1680 of the public  authorities  law  is
amended by adding a new undesignated paragraph to read as follows:
  ANY ENTITY ORGANIZED BY OFFICERS, EMPLOYEES, ALUMNI OR STUDENTS OF THE
STATE  UNIVERSITY OF NEW YORK TO SUPPORT THE STATE UNIVERSITY AND QUALI-
FIED AS AN ORGANIZATION UNDER THE UNITED STATES INTERNAL REVENUE CODE AS
EXEMPT FROM INCOME TAX  FOR  THE  FINANCING,  REFINANCING,  ACQUISITION,
DESIGN,   CONSTRUCTION,   RECONSTRUCTION,  REHABILITATION,  IMPROVEMENT,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09048-02-9

A. 8574                             2

FURNISHING AND EQUIPPING OF ANY HOUSING UNIT FOR THE  USE  OF  STUDENTS,
FACULTY,  STAFF  AND  THEIR  FAMILIES OR ANY ACADEMIC BUILDING, ADMINIS-
TRATION BUILDING, LIBRARY, LABORATORY, CLASSROOM, HEALTH FACILITY OR ANY
OTHER  BUILDING, FACILITY OR STRUCTURE ESSENTIAL, NECESSARY OR USEFUL IN
FURTHERING THE ACADEMIC, CULTURAL, HEALTH OR RESEARCH PROGRAMS  FOR  THE
STATE  UNIVERSITY OF NEW YORK, INCLUDING ALL NECESSARY AND USUAL ATTEND-
ANT AND RELATED FACILITIES AND EQUIPMENT; PROVIDED,  HOWEVER,  THAT  ANY
PROJECT PROPOSED TO BE UNDERTAKEN PURSUANT TO THIS PARAGRAPH SHALL FIRST
BE  APPROVED  BY THE STATE UNIVERSITY OF THE STATE OF NEW YORK; PROVIDED
FURTHER AND NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  THAT
ANY SUCH NOT-FOR-PROFIT ENTITY, THE STATE UNIVERSITY OF THE STATE OF NEW
YORK AND THE STATE UNIVERSITY CONSTRUCTION FUND ARE HEREBY AUTHORIZED TO
TAKE  SUCH  ACTIONS AND TO ENTER INTO SUCH AGREEMENTS WITH THE DORMITORY
AUTHORITY AS ARE NECESSARY TO: (I) UNDERTAKE THE FINANCING, REFINANCING,
ACQUISITION,  DESIGN,  CONSTRUCTION,   RECONSTRUCTION,   REHABILITATION,
IMPROVEMENT,  FURNISHING  AND  EQUIPPING  OF ANY FACILITY AS PROVIDED IN
THIS PARAGRAPH, INCLUDING, BUT NOT LIMITED TO, PROVIDING FOR  THE  SALE,
LEASE,  TRANSFER  OR CONVEYANCE OF STATE-OWNED PROPERTY UNDER THE JURIS-
DICTION OF THE STATE UNIVERSITY TO THE  NOT-FOR-PROFIT  ENTITY  OR  (II)
GRANT  THE AUTHORITY A LIEN ON ANY REVENUES OR PROPERTY OR ANY MONEYS TO
BE RECEIVED BY THE NOT-FOR-PROFIT ENTITY TO THE EXTENT THAT SUCH  REVEN-
UES,  PROPERTY  OR  MONEYS  ARE  PLEDGED  BY THE ENTITY TO THE DORMITORY
AUTHORITY TO SECURE THE PAYMENT OF ALL AMOUNTS OWED TO THE AUTHORITY  ON
ACCOUNT  OF  ANY PROJECT UNDERTAKEN PURSUANT TO THIS PARAGRAPH, PROVIDED
FURTHER, THAT ANY PROJECT UNDERTAKEN BY THE DORMITORY AUTHORITY PURSUANT
TO THIS PARAGRAPH SHALL CONSTITUTE A PUBLIC WORK  FOR  PURPOSES  OF  THE
LABOR  LAW AND SHALL BE SUBJECT TO THE REQUIREMENTS OF ARTICLE FIFTEEN-A
OF THE EXECUTIVE LAW.   ALL STATE OFFICERS  ARE  HEREBY  AUTHORIZED  AND
REQUIRED  TO PAY ALL SUCH FUNDS SO ASSIGNED AND PLEDGED TO THE DORMITORY
AUTHORITY OR, UPON THE DIRECTION OF  THE  DORMITORY  AUTHORITY,  TO  ANY
TRUSTEE OF ANY DORMITORY AUTHORITY BOND OR NOTE ISSUE. NEITHER THE STATE
OF  NEW  YORK, THE STATE UNIVERSITY OF NEW YORK NOR THE STATE UNIVERSITY
CONSTRUCTION FUND SHALL TAKE ANY ACTION IN SUCH MANNER AS TO  IMPAIR  OR
DIMINISH  THE  RIGHTS AND REMEDIES OF THE AUTHORITY PURSUANT TO ANY SUCH
PLEDGE AND ASSIGNMENT AND ANY LIEN OR OTHER  SECURITY  INTEREST  CREATED
PURSUANT TO THIS PARAGRAPH.
  S 3. This act shall take effect immediately.

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