Senate Bill S3695

2009-2010 Legislative Session

Relates to the powers and duties of the dormitory authority for the financing and construction of certain not-for-profit corporations and entities

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to corporations, authorities and commissions
Mar 27, 2009	referred to corporations, authorities and commissions

co-Sponsors

2009-S3695 (ACTIVE) - Details

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

2009-S3695 (ACTIVE) - Summary

Relates to the powers and duties of the dormitory authority for the financing and construction of certain not-for-profit corporations and entities.

2009-S3695 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3695

 TITLE OF BILL :

An act to amend the public authorities law, in relation to the powers
and duties of the dormitory authority of the state of New York
relative to the financing and construction for certain not-for-profit
corporations and other not-for-profit entities


 PURPOSE OF BILL :

This bill would enhance the ability of the Dormitory Authority of the
State of New York ("DASNY") to meet the tax-exempt financing and
construction needs of not-for-profit entities that conduct activities
in the State of New York and that are exempt from federal income tax
under United States Internal Revenue Code ("IRC") § 501-(c)(3).

 SUMMARY OF PROVISIONS :

Sections 1 and 3 of the bill would amend Public Authorities Law
("PAL") §1676 to define "dormitory" and "educational institution",
respectively, to include several new categories of not-for-profit and
public corporations for which the Dormitory Authority would be
authorized to provide its financing and construction services.
Specifically, the types of not-for-profit corporations that would be

added areas follows:

1. Any entity that is: (i) qualified as an organization described in
IRC § 501-(c)(3) as exempt from income tax; and (ii) authorized to
conduct activities in this State for any of the purposes for which a
not-for-profit corporation is authorized to be established pursuant to
the not-for-profit corporation law. Any project undertaken by DASNY
for an eligible entity pursuant to this paragraph is required to be
located in the State of New York.

2. Any not-for-profit corporation, public corporation or education
corporation having a charter from the board of regents of the
University of the State of New York as a library, museum or other
non-instructional entity.

3. Any corporation or other entity created under the laws of this
State eligible for tax exempt financing under the United States
internal revenue code and organized for the primary purpose of
providing facilities, equipment, or other support to a not-for-profit
corporation subject to the jurisdiction of, regulated by, or having an
agreement with, an office of the department of mental hygiene relating
to such facilities.

The proposed changes in these sections to PAL § 1680 also require that
the consent of certain State agencies be obtained before DASNY may
participate in a project. Such consents would be required for any
project proposed to be undertaken for certain entities that would be
required to obtain the approval of a State agency as a condition to
their incorporation under Not-For-Profit Corporation Law § 404.

Section 2 of the bill amends PAL § 1676(2) to add a new paragraph (h)
to expand the definition of "dormitory" to include intellectual or
other intangible property, all or substantially all of which is
eligible for tax-exempt financing under the IRC. This new provision
will enable DASNY to issue bonds to assist its clients in financing
the cost of acquiring intangible assets, such as copyrights.

Section 4 of the bill provides that it will take effect on the
ninetieth day after it becomes law.

 EXISTING LAW :

DASNY is currently able to provide construction and financing services
to the following:  (1) any institution of higher education located in
this state and authorized by law or the board of regents to confer
degrees; (2) certain public libraries; (3) hospitals and nursing
homes; (4) facilities for the aged; and (5) various other corporations
specifically defined in the DASNY Act as an "educational institution."

 PRIOR LEGISLATIVE HISTORY :

None.

 STATEMENT IN SUPPORT :

This bill would enable DASNY to improve the services it provides to
eligible not-for-profit entities by eliminating the requirement that
certain categories of not-for-profit and public corporations obtain
the enactment of special legislation before being able to utilize
DASNY's construction and financing services. Enactment of this bill
would enhance the ability of DASNY to perform its mission as the
state's primary health and education finance agency and would assist
eligible not-for-profit entities in performing their very important
functions.

 BUDGET IMPLICATIONS :

None to the State. This bill would result in increased revenues for
the State through the collection of the Bond Issuance Charges.

 EFFECTIVE DATE :
This bill would take effect on the ninetieth day after it becomes law.

2009-S3695 (ACTIVE) - Bill Text download pdf

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

                                  3695

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 27, 2009
                               ___________

Introduced  by Sen. PERKINS -- (at request of the Dormitory Authority of
  the State of New York) -- read twice and  ordered  printed,  and  when
  printed  to be committed to the Committee on Corporations, Authorities
  and Commissions

AN ACT to amend the public authorities law, in relation  to  the  powers
  and  duties  of the dormitory authority of the state of New York rela-
  tive to the financing  and  construction  for  certain  not-for-profit
  corporations and other not-for-profit entities

  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 three new undesignated para-
graphs to read as follows:
  ANY  ENTITY  THAT  IS:  (I)  QUALIFIED AS AN ORGANIZATION DESCRIBED IN
SECTION 501 (C)(3) OF THE UNITED STATES INTERNAL REVENUE CODE AS  EXEMPT
FROM INCOME TAX; AND (II) AUTHORIZED TO CONDUCT ACTIVITIES IN THIS STATE
FOR  ANY  OF  THE  PURPOSES  FOR  WHICH  A NOT-FOR-PROFIT CORPORATION IS
AUTHORIZED TO BE ESTABLISHED PURSUANT TO THE NOT-FOR-PROFIT  CORPORATION
LAW;  PROVIDED  HOWEVER, ANY DORMITORY FINANCED OR OTHERWISE PROVIDED BY
THE AUTHORITY PURSUANT TO THIS PARAGRAPH SHALL BE LOCATED IN  THE  STATE
OF NEW YORK.
  ANY NOT-FOR-PROFIT CORPORATION, PUBLIC CORPORATION OR EDUCATION CORPO-
RATION  HAVING  A CHARTER FROM THE BOARD OF REGENTS OF THE UNIVERSITY OF
THE STATE OF NEW YORK AS A LIBRARY OR MUSEUM OR OTHER  NON-INSTRUCTIONAL
ENTITY.
  ANY  CORPORATION  OR OTHER ENTITY CREATED UNDER THE LAWS OF THIS STATE
ELIGIBLE FOR TAX-EXEMPT  FINANCING  UNDER  THE  UNITED  STATES  INTERNAL
REVENUE  CODE AND ORGANIZED FOR THE PRIMARY PURPOSE OF PROVIDING FACILI-
TIES, EQUIPMENT,  OR  OTHER  SUPPORT  TO  A  NOT-FOR-PROFIT  CORPORATION
SUBJECT  TO  THE  JURISDICTION  OF, REGULATED BY, OR HAVING AN AGREEMENT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09045-02-9

S. 3695                             2

WITH, AN OFFICE OF THE DEPARTMENT OF MENTAL  HYGIENE  RELATING  TO  SUCH
FACILITIES.
  S  2.  Subdivision  2 of section 1676 of the public authorities law is
amended by adding a new paragraph (h) to read as follows:
  (H) IT SHALL ALSO INCLUDE EQUIPMENT OR INTELLECTUAL PROPERTY OR  OTHER
INTANGIBLE  PROPERTY,  ALL OR SUBSTANTIALLY ALL OF WHICH IS ELIGIBLE FOR
TAX-EXEMPT FINANCING UNDER THE UNITED STATES INTERNAL REVENUE CODE.
  S 3. Subdivision 1 of section 1680 of the public  authorities  law  is
amended by adding four new undesignated paragraphs to read as follows:
  ANY  ENTITY  THAT  IS:  (1)  QUALIFIED AS AN ORGANIZATION DESCRIBED IN
SECTION 501 (C)(3) OF THE UNITED STATES INTERNAL REVENUE CODE AS  EXEMPT
FROM  INCOME TAX; AND (2) AUTHORIZED TO CONDUCT ACTIVITIES IN THIS STATE
FOR ANY OF THE  PURPOSES  FOR  WHICH  A  NOT-FOR-PROFIT  CORPORATION  IS
AUTHORIZED  TO BE ESTABLISHED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION
LAW; PROVIDED HOWEVER, ANY DORMITORY FINANCED OR OTHERWISE  PROVIDED  BY
THE  AUTHORITY  PURSUANT TO THIS PARAGRAPH SHALL BE LOCATED IN THE STATE
OF NEW YORK; PROVIDED FURTHER, THAT IF THE PROCEEDS OF ANY LOAN SHALL BE
USED FOR THE BENEFIT OF AN INSTITUTION ESTABLISHED UNDER  ARTICLE  TWEN-
TY-EIGHT  OF  THE  PUBLIC  HEALTH  LAW,  NO  LOAN  SHALL BE MADE TO SUCH
NOT-FOR-PROFIT CORPORATION UNTIL THE  INSTITUTION  SHALL  HAVE  COMPLIED
WITH SUCH LAW AND REGULATIONS AS IF THE LOAN WERE BEING MADE DIRECTLY TO
SUCH INSTITUTION; PROVIDED FURTHER, THAT:
  (I)  WITH  RESPECT TO ANY FACILITY OR FACILITIES TO BE FINANCED, REFI-
NANCED, ACQUIRED, DESIGNED, CONSTRUCTED,  RECONSTRUCTED,  REHABILITATED,
IMPROVED,  FURNISHED,  OR EQUIPPED FOR ANY ENTITY REFERENCED IN SUBDIVI-
SION (D) OF SECTION FOUR HUNDRED FOUR OF THE NOT-FOR-PROFIT  CORPORATION
LAW,  THE  FACILITY  OR FACILITIES SHALL HAVE BEEN FIRST APPROVED BY THE
COMMISSIONER OF EDUCATION;
  (II) WITH RESPECT TO ANY FACILITY OR FACILITIES TO BE FINANCED,  REFI-
NANCED,  ACQUIRED,  DESIGNED, CONSTRUCTED, RECONSTRUCTED, REHABILITATED,
IMPROVED, FURNISHED, OR EQUIPPED FOR ANY ENTITY REFERENCED  IN  SUBDIVI-
SIONS  (O)  AND  (P)  OF SECTION FOUR HUNDRED FOUR OF THE NOT-FOR-PROFIT
CORPORATION LAW, FACILITY OR FACILITIES SHALL HAVE BEEN  FIRST  APPROVED
BY THE COMMISSIONER OF HEALTH;
  (III) WITH RESPECT TO ANY FACILITY OR FACILITIES TO BE FINANCED, REFI-
NANCED,  ACQUIRED,  DESIGNED, CONSTRUCTED, RECONSTRUCTED, REHABILITATED,
IMPROVED, FURNISHED, OR EQUIPPED FOR ANY ENTITY REFERENCED  IN  SUBDIVI-
SIONS  (Q)  AND  (U)  OF SECTION FOUR HUNDRED FOUR OF THE NOT-FOR-PROFIT
CORPORATION LAW, THE  FACILITY  OR  FACILITIES  SHALL  HAVE  BEEN  FIRST
APPROVED  BY  THE  DEPARTMENT  OF  MENTAL  HYGIENE  THAT WAS REQUIRED TO
APPROVE THE ESTABLISHMENT OF SUCH CORPORATION;
  (IV) WITH RESPECT TO ANY FACILITY OR FACILITIES TO BE FINANCED,  REFI-
NANCED,  ACQUIRED,  DESIGNED, CONSTRUCTED, RECONSTRUCTED, REHABILITATED,
IMPROVED, FURNISHED, OR EQUIPPED FOR ANY ENTITY REFERENCED  IN  SUBDIVI-
SION  (B) OF SECTION FOUR HUNDRED FOUR OF THE NOT-FOR-PROFIT CORPORATION
LAW, THE FACILITY OR FACILITIES SHALL HAVE BEEN FIRST  APPROVED  BY  THE
COMMISSIONER OF THE STATE AGENCY OR OFFICE THAT ASSUMED THE RESPONSIBIL-
ITIES  OF  THE COMMISSIONER OF SOCIAL SERVICES UNDER SECTION ONE HUNDRED
TWENTY-TWO OF PART B OF CHAPTER FOUR HUNDRED THIRTY-SIX OF THE  LAWS  OF
NINETEEN  HUNDRED  NINETY-SEVEN, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, WITH RESPECT TO SUCH NOT-FOR-PROFIT CORPORATION.
  ANY NOT-FOR-PROFIT CORPORATION, PUBLIC CORPORATION OR EDUCATION CORPO-
RATION HAVING A CHARTER FROM THE BOARD OF REGENTS OF THE  UNIVERSITY  OF
THE  STATE OF NEW YORK AS A LIBRARY OR MUSEUM OR OTHER NON-INSTRUCTIONAL
ENTITY. ANY FACILITY OR FACILITIES TO BE FINANCED, REFINANCED, ACQUIRED,
DESIGNED, CONSTRUCTED, RECONSTRUCTED, REHABILITATED, IMPROVED, FURNISHED

S. 3695                             3

OR EQUIPPED PURSUANT TO THIS PARAGRAPH SHALL HAVE BEEN FIRST APPROVED BY
THE COMMISSIONER OF EDUCATION.
  ANY  CORPORATION  OR OTHER ENTITY CREATED UNDER THE LAWS OF THIS STATE
ELIGIBLE FOR TAX-EXEMPT  FINANCING  UNDER  THE  UNITED  STATES  INTERNAL
REVENUE  CODE AND ORGANIZED FOR THE PRIMARY PURPOSE OF PROVIDING FACILI-
TIES, EQUIPMENT,  OR  OTHER  SUPPORT  TO  A  NOT-FOR-PROFIT  CORPORATION
SUBJECT  TO  THE  JURISDICTION  OF, REGULATED BY, OR HAVING AN AGREEMENT
WITH, AN OFFICE OF THE DEPARTMENT OF MENTAL  HYGIENE  RELATING  TO  SUCH
FACILITIES.  ANY  FACILITY  OR  FACILITIES  TO  BE FINANCED, REFINANCED,
ACQUIRED, DESIGNED, CONSTRUCTED, RECONSTRUCTED, REHABILITATED, IMPROVED,
FURNISHED, OR EQUIPPED PURSUANT TO THIS PARAGRAPH SHALL HAVE BEEN  FIRST
APPROVED  BY THE DEPARTMENT OF MENTAL HYGIENE WHICH HAS JURISDICTION OF,
REGULATES, OR HAS AN AGREEMENT WITH THE NOT-FOR-PROFIT  CORPORATION  FOR
WHICH THE FACILITIES, EQUIPMENT OR OTHER SUPPORT IS BEING PROVIDED.
  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, ANY CORPORATION OR OTHER
ENTITY DEFINED AS AN "EDUCATIONAL INSTITUTION" PURSUANT TO  ANY  OF  THE
THREE  PARAGRAPHS  IMMEDIATELY  PRECEDING THIS PARAGRAPH SHALL HAVE FULL
POWER AND AUTHORITY TO ASSIGN AND PLEDGE TO THE DORMITORY AUTHORITY  ANY
AND  ALL PUBLIC FUNDS TO BE APPORTIONED OR OTHERWISE MADE PAYABLE BY THE
UNITED STATES, ANY AGENCY THEREOF, THE  STATE,  ANY  AGENCY  THEREOF,  A
POLITICAL  SUBDIVISION, AS DEFINED IN SECTION ONE HUNDRED OF THE GENERAL
MUNICIPAL LAW, ANY SOCIAL SERVICES DISTRICT IN THE STATE, OR  ANY  OTHER
GOVERNMENTAL  ENTITY  IN  AN  AMOUNT  SUFFICIENT  TO  MAKE  ALL PAYMENTS
REQUIRED TO BE MADE BY SUCH  EDUCATIONAL  INSTITUTION  PURSUANT  TO  ANY
LEASE,  SUBLEASE,  OR  OTHER  AGREEMENT ENTERED INTO BETWEEN SUCH EDUCA-
TIONAL INSTITUTION AND THE DORMITORY  AUTHORITY.  ALL  STATE  AND  LOCAL
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 ISSUED, PURSUANT TO A CERTIFICATE FILED WITH ANY SUCH STATE
OR LOCAL OFFICER BY THE DORMITORY AUTHORITY PURSUANT TO  THE  PROVISIONS
OF THIS PARAGRAPH.
  S  4.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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Senate Bill S3695

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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co-Sponsors

2009-S3695 (ACTIVE) - Details

2009-S3695 (ACTIVE) - Summary

2009-S3695 (ACTIVE) - Sponsor Memo

2009-S3695 (ACTIVE) - Bill Text download pdf

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Sponsored By

Bill Perkins

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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co-Sponsors

Antoine M. Thompson

2009-S3695 (ACTIVE) - Details

2009-S3695 (ACTIVE) - Summary

2009-S3695 (ACTIVE) - Sponsor Memo

2009-S3695 (ACTIVE) - Bill Text download pdf

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