NY State Assembly Bill 2009-A8743

Assembly Bill A8743

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

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 15, 2010	held for consideration in corporations, authorities and commissions
Jan 06, 2010	referred to corporations, authorities and commissions
Jun 05, 2009	referred to corporations, authorities and commissions

2009-A8743 (ACTIVE) - Details

See Senate Version of this Bill:: S3693
Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§1676 & 1680, Pub Auth L

2009-A8743 (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-A8743 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8743

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  entities affiliated with the
state university of New York

Purpose of the bill:   To authorize the  Dormitory  Authority  of  the
State  of  New  York  ("DASNY")  to provide financing and construction
services  to  any  not-for-profit  entity   organized   by   officers,
employees,  alumni  or  students  of  the State University of New York
("SUNY"), other than any entity  which  is  organized  exclusively  by
students  of the State University, for the purpose of providing one or
more facilities for the State University  at  Buffalo  ("UB")  on  its
campuses in the Town of Amherst and City of Buffalo, respectively, and
student housing facilities in the City of Syracuse for use by students
attending the SUNY College of Environmental Science and Forestry.

Summary  of Provisions:   Sections one and two of the bill would amend
the  definition  of   "dormitory"   and   "educational   institution",
respectively,  to  include  any  not-for-profit  entity  organized  by
officers, employees, alumni or students of SUNY, other than any entity
which is organized exclusively by students of  the  State  University,
and  qualified  as  tax-exempt under the Internal Revenue Code for the
purpose of providing housing  and  other  facilities  that  have  been
specifically  authorized  by  statutory  enactment  as a "project." In

addition, the consent of SUNY would also be required for  any  project
permitted to be undertaken pursuant to this legislation. The bill also
specifically  provides  that no agreement providing for the financing,
refinancing,  acquisition,   design,   construction,   reconstruction,
rehabilitation,  improvement,  furnishing and equipping of any project
pursuant to this authorization shall provide  for  the  operation  and
maintenance  of  such project after its completion, by an entity other
than the State University of New York.

The types of projects generally  contemplated  by  this  bill  include
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.  However,  the  only  projects  currently
authorized  under  this  bill  are:  (1)  one or more facilities to be
located on or adjacent to one or more campuses of the State University
of Buffalo in the Town of Amherst and the City of Buffalo for  any  of
the  foregoing  purposes,  including,  but  not  limited  to, a hotel,
conference center, retail facilities and certain other facilities  to.
provide  educational, training and economic opportunities to residents
of Town of Amherst and the City of Buffalo; and  (2)  student  housing
facilities  in  the City of Syracuse for use by students attending the
SUNY College  of  Environmental  Science  and  Forestry.  The  housing
facilities for the College of Environmental Science and Forestry would
not be located on the College's campus but rather, would be located on
land adjacent to the campus.

In  connection  with  authorized  projects, this bill further provides
that  the  not-for-profit  entity,  SUNY  and  the  State   University
Construction  Fund  may 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 entity, including, 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 corporation 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 the  dormitory
authority,  to  any  trustee  of  any dormitory authority bond or note
issue.

Existing Law:  DASNY is currently able  to  provide  construction  and
financing  services  to  SUNY  but  not to not-for-profit corporations
organized for the benefit of SUNY.

Prior Legislative History:  None

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  separate  not-for-profit entities
established for  these  purposes.  Among  the  benefits  of  financing
through  these  separate  entities  would  be  the  ability to utilize
revenues and assets of the not-for-profit entity to  secure  any  debt
issued  to  finance  the  cost of the project. This bill would provide
DASNY with the  flexibility  to  meet  these  needs  for  any  project
specifically authorized by statutory enactment.

The  New  York  State  Commission  on  Higher Education's Final Report
recognized 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 (2000-01 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   initiatives   (e.g.,   public-private
partnerships)."

Budget  Implications:     This  bill  would   have   positive   budget
implications for the State, in so far as it would reduce the amount of
State  supported  debt  that  would  otherwise  be required to finance
capital improvements for SUNY.

Effective Date:  This act shall take effect immediately.

2009-A8743 (ACTIVE) - Bill Text download pdf

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

                                  8743

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2009
                               ___________

Introduced  by  M.  of A. PEOPLES -- (at request of the Governor) -- (at
  request of the Dormitory Authority of the State of New York)  --  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 entities 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:
  FOR  THE PURPOSES OF ANY PROJECT SPECIFICALLY ENUMERATED IN THIS PARA-
GRAPH, ANY ENTITY WHICH IS ORGANIZED BY OFFICERS, EMPLOYEES,  ALUMNI  OR
STUDENTS  OF  THE  STATE  UNIVERSITY  OF  NEW  YORK TO SUPPORT THE STATE
UNIVERSITY AND WHICH IS QUALIFIED AS AN ORGANIZATION  UNDER  THE  UNITED
STATES  INTERNAL  REVENUE CODE AS EXEMPT FROM INCOME TAX, OTHER THAN ANY
ENTITY WHICH IS ORGANIZED EXCLUSIVELY BY STUDENTS OF THE STATE UNIVERSI-
TY, 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 FAMI-
LIES OR ANY ACADEMIC BUILDING, ADMINISTRATION BUILDING, LIBRARY, LABORA-
TORY,  CLASSROOM,  HEALTH FACILITY OR OTHER FACILITY, BUILDING OR STRUC-
TURE  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 ATTENDANT AND RELATED FACILITIES
AND EQUIPMENT.  FOR PURPOSES OF THIS  PARAGRAPH,  "PROJECT"  SHALL  MEAN
ONLY THE FOLLOWING:  ONE OR MORE FACILITIES TO BE LOCATED ON OR ADJACENT
TO  ONE  OR MORE CAMPUSES OF THE STATE UNIVERSITY OF BUFFALO IN THE TOWN
OF AMHERST AND THE CITY OF BUFFALO FOR ANY OF  THE  FOREGOING  PURPOSES,
INCLUDING, BUT NOT LIMITED TO, A HOTEL, CONFERENCE CENTER, RETAIL FACIL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09048-04-9

A. 8743                             2

ITIES  AND CERTAIN OTHER FACILITIES TO PROVIDE EDUCATIONAL, TRAINING AND
ECONOMIC OPPORTUNITIES TO RESIDENTS OF THE TOWN OF AMHERST AND THE  CITY
OF  BUFFALO; AND, STUDENT HOUSING FACILITIES IN THE CITY OF SYRACUSE FOR
USE  BY  STUDENTS  ATTENDING  THE  COLLEGE  OF ENVIRONMENTAL SCIENCE AND
FORESTRY.
  S 2. Subdivision 1 of section 1680 of the public  authorities  law  is
amended by adding a new undesignated paragraph to read as follows:
  FOR  THE PURPOSES OF ANY PROJECT SPECIFICALLY ENUMERATED IN THIS PARA-
GRAPH, ANY ENTITY WHICH IS ORGANIZED BY OFFICERS, EMPLOYEES,  ALUMNI  OR
STUDENTS  OF  THE  STATE  UNIVERSITY  OF  NEW  YORK TO SUPPORT THE STATE
UNIVERSITY AND WHICH IS QUALIFIED AS AN ORGANIZATION  UNDER  THE  UNITED
STATES  INTERNAL  REVENUE CODE AS EXEMPT FROM INCOME TAX, OTHER THAN ANY
ENTITY WHICH IS ORGANIZED EXCLUSIVELY BY STUDENTS OF THE STATE UNIVERSI-
TY, 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 FAMI-
LIES OR ANY ACADEMIC BUILDING, ADMINISTRATION BUILDING, LIBRARY, LABORA-
TORY,  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 ATTENDANT AND RELATED FACILITIES
AND EQUIPMENT. FOR PURPOSES OF THIS PARAGRAPH, "PROJECT" SHALL MEAN ONLY
THE FOLLOWING: ONE OR MORE FACILITIES TO BE LOCATED ON  OR  ADJACENT  TO
ONE  OR  MORE CAMPUSES OF THE STATE UNIVERSITY OF BUFFALO IN THE TOWN OF
AMHERST AND THE CITY OF BUFFALO  FOR  ANY  OF  THE  FOREGOING  PURPOSES,
INCLUDING, BUT NOT LIMITED TO, A HOTEL, CONFERENCE CENTER, RETAIL FACIL-
ITIES  AND CERTAIN OTHER FACILITIES TO PROVIDE EDUCATIONAL, TRAINING AND
ECONOMIC OPPORTUNITIES TO RESIDENTS OF THE TOWN OF AMHERST AND THE  CITY
OF  BUFFALO; AND, STUDENT HOUSING FACILITIES IN THE CITY OF SYRACUSE FOR
USE BY STUDENTS ATTENDING  THE  COLLEGE  OF  ENVIRONMENTAL  SCIENCE  AND
FORESTRY;  PROVIDED, HOWEVER, THAT ANY PROJECT PROPOSED TO BE UNDERTAKEN
PURSUANT TO THIS PARAGRAPH SHALL FIRST BE APPROVED BY THE STATE  UNIVER-
SITY  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 PROJECT AS PROVIDED IN THIS PARAGRAPH, INCLUDING,
BUT NOT LIMITED TO, PROVIDING FOR THE SALE, LEASE, TRANSFER  OR  CONVEY-
ANCE OF STATE-OWNED PROPERTY UNDER THE JURISDICTION OF THE STATE UNIVER-
SITY  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 REVENUES, 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 PARA-
GRAPH  SHALL  CONSTITUTE A PUBLIC WORK FOR PURPOSES OF THE LABOR LAW AND
SHALL BE SUBJECT TO THE REQUIREMENTS OF ARTICLE FIFTEEN-A OF THE  EXECU-
TIVE  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

A. 8743                             3

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.  NO AGREEMENT PROVIDING FOR THE FINANCING, REFINANCING,
ACQUISITION,  DESIGN,  CONSTRUCTION,   RECONSTRUCTION,   REHABILITATION,
IMPROVEMENT,  FURNISHING  AND  EQUIPPING OF ANY PROJECT PURSUANT TO THIS
PARAGRAPH SHALL PROVIDE  FOR  THE  OPERATION  AND  MAINTENANCE  OF  SUCH
PROJECT AFTER ITS COMPLETION BY AN ENTITY OTHER THAN THE STATE UNIVERSI-
TY OF NEW YORK.
  S 3. This act shall take effect immediately.

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