S T A T E O F N E W Y O R K
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3665
2011-2012 Regular Sessions
I N A S S E M B L Y
January 26, 2011
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Introduced by M. of A. CLARK, V. LOPEZ -- Multi-Sponsored by -- M. of A.
ABBATE, BRENNAN, GALEF, HOOPER, JACOBS, TOWNS -- read once and
referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the
construction and financing of facilities by the dormitory authority
for day care providers
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:
DAY CARE PROVIDERS.
S 2. Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
DAY CARE PROVIDERS.
S 3. Section 1676 of the public authorities law is amended by adding a
new subdivision 46 to read as follows:
46. (A) THE TERM "DAY CARE PROVIDER" OR "PROVIDER" SHALL MEAN A CORPO-
RATION LICENSED TO OPERATE A CHILD CARE CENTER AS DEFINED IN SECTION
THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW PROVIDING CARE AND MAIN-
TENANCE PURSUANT TO ARTICLE SIX OF THE SOCIAL SERVICES LAW.
(B) THE TERM "FACILITY" SHALL MEAN A CHILD CARE CENTER AS DEFINED IN
SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW.
S 4. Section 1680 of the public authorities law is amended by adding a
new subdivision 41 to read as follows:
41. A. THE DORMITORY AUTHORITY MAY ENTER INTO LEASES, SUBLEASES, OR
OTHER AGREEMENTS WITH DAY CARE PROVIDERS FOR THE FINANCING OF AND THE
DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT, RENO-
VATION, ACQUISITION OR OTHERWISE PROVIDING FOR, FURNISHING OR EQUIPPING
OF FACILITIES WHERE THE TOTAL ESTIMATED COST OF SUCH FACILITIES EXCEEDS
TEN THOUSAND DOLLARS. THE PLANS AND SPECIFICATIONS OF SUCH FACILITIES,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06541-01-1
A. 3665 2
AND THE TOTAL PROJECT COST THEREOF, SHALL BE SUBJECT TO THE APPROVAL OF
THE COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. SUCH
FACILITIES MAY BE CONSTRUCTED ONLY ON PROPERTY OWNED BY SUCH DAY CARE
PROVIDER OR, IF THE PROPERTY IS LEASED, WHERE THE LEASE IS FOR A PERIOD
AT LEAST EQUAL TO THE APPROPRIATE PERIOD OF PROBABLE USEFULNESS FOR SUCH
FACILITIES AS LISTED IN SECTION 11.00 OF THE LOCAL FINANCE LAW, OR TWO
TIMES THE LENGTH OF THE LEASE, SUBLEASE OR OTHER AGREEMENT WITH THE
DORMITORY AUTHORITY, WHICHEVER IS LONGER.
B. EACH SUCH PROVIDER SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, HAVE THE POWER TO CONVEY, LEASE, SUBLEASE OR OTHERWISE MAKE AVAIL-
ABLE TO THE DORMITORY AUTHORITY WITHOUT CONSIDERATION, TITLE OR ANY
OTHER RIGHTS IN REAL PROPERTY SATISFACTORY TO THE DORMITORY AUTHORITY.
C. IN ADDITION TO PROVIDING FOR ALL OTHER MATTERS DEEMED NECESSARY AND
PROPER, SUCH LEASES, SUBLEASES AND OTHER AGREEMENTS SHALL (1) REQUIRE
SUCH PROVIDER TO PAY TO THE DORMITORY AUTHORITY ANNUAL RENTALS WHICH
SHALL INCLUDE THE AMOUNT REQUIRED TO PAY THE PRINCIPAL OF AND INTEREST
ON OBLIGATIONS OF THE DORMITORY AUTHORITY ISSUED IN RELATION TO PROVID-
ING SUCH FACILITIES AND ALL INCIDENTAL EXPENSES OF THE DORMITORY AUTHOR-
ITY INCURRED IN RELATION THERETO, (2) REQUIRE THE PROVIDER TO INCLUDE AN
AMOUNT SUFFICIENT TO MEET ITS OBLIGATIONS UNDER THE LEASE, SUBLEASE OR
OTHER AGREEMENT IN EACH PROPOSED BUDGET SUBMITTED DURING THE TERM OF THE
LEASE, SUBLEASE OR OTHER AGREEMENT, AND (3) NOT BE EXECUTED UNTIL SUCH
FACILITIES ARE APPROVED BY THE COMMISSIONER OF THE OFFICE OF CHILDREN
AND FAMILY SERVICES.
D. TITLE OR OTHER REAL PROPERTY RIGHTS TO THE FACILITIES FINANCED
PURSUANT TO THIS SUBDIVISION SHALL REMAIN WITH THE DORMITORY AUTHORITY
UNTIL THE DORMITORY AUTHORITY CERTIFIES TO THE COMMISSIONER OF THE
OFFICE OF CHILDREN AND FAMILY SERVICES AND THE COMPTROLLER THE RECEIPT
BY IT OF THE AMOUNT NECESSARY TO PAY THE TOTAL AGGREGATE AMOUNT OF ANNU-
AL RENTALS TO THE DORMITORY AUTHORITY. AT SUCH TIME, TITLE OR OTHER REAL
PROPERTY RIGHTS THERETO SHALL BE TRANSFERRED BY THE DORMITORY AUTHORITY
TO SUCH PROVIDER. IN ORDER TO AVAIL ITSELF OF THE PROVISIONS OF THIS
SUBDIVISION, EACH SUCH PROVIDER MUST ALSO AGREE TO CONTINUE TO OPERATE
A FACILITY AND SHALL BE REQUIRED TO ALLOCATE TWENTY-FIVE PERCENT OR MORE
OF ITS CAPACITY PURSUANT TO CONTRACTS WITH SOCIAL SERVICES DISTRICTS.
SUCH LEASE, SUBLEASE OR OTHER AGREEMENT WITH THE DORMITORY AUTHORITY
SHALL PROVIDE THAT, IF THE PROVIDER SHALL CEASE TO OPERATE SUCH A
PROGRAM AT ANY TIME DURING THE TERM OF THE AGREEMENT: (I) THE STATE
WILL HAVE THE OPTION TO TAKE SUCH TITLE OR OTHER REAL PROPERTY RIGHTS OF
THE DORMITORY AUTHORITY IN LAND, BUILDINGS, EQUIPMENT AND OTHER PROPER-
TIES WHICH THE PROVIDER USES FOR ITS PROGRAM UPON, SUBJECT TO APPROPRI-
ATIONS, PAYMENT BY THE STATE TO THE DORMITORY AUTHORITY OF THE AMOUNT
REQUIRED TO PAY THE TOTAL AGGREGATE AMOUNT OF ANNUAL RENTALS TO THE
DORMITORY AUTHORITY; OR (II) THE PROVIDER SHALL PAY TO THE DORMITORY
AUTHORITY ONE HUNDRED PERCENT OF THE OUTSTANDING PRINCIPAL AND INTEREST
AND IN ADDITION TO SUCH BALANCE SHALL ALSO PAY THE AMOUNT EQUAL TO THE
DIFFERENCE BETWEEN THE INTEREST DUE AND THE INTEREST THAT WOULD HAVE
BEEN DUE HAD THE RATE OF INTEREST CHARGED BEEN AT THE COMMERCIAL LENDING
RATE OVER THE SAME PERIOD.
E. METHOD OF PAYMENT; RESERVE FUND. (1) ANY DAY CARE PROVIDER WHICH
ELECTS TO AVAIL ITSELF OF THE PROVISIONS OF THIS SUBDIVISION SHALL
ESTABLISH WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES A DAY CARE
CENTER FACILITIES DEBT SERVICE RESERVE FUND WHICH SHALL BE USED TO PAY
TO THE DORMITORY AUTHORITY THE ANNUAL RENTALS PAYABLE TO THE DORMITORY
AUTHORITY BY SUCH PROVIDER WHICH HAVE ENTERED INTO A LEASE, SUBLEASE OR
OTHER AGREEMENT WITH THE DORMITORY AUTHORITY TO PROVIDE RESIDENTIAL
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FACILITIES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. THE DORMITO-
RY AUTHORITY SHALL IDENTIFY TO THE COMMISSIONER OF THE OFFICE OF CHIL-
DREN AND FAMILY SERVICES WITH RESPECT TO FACILITIES, THE PROVIDERS WITH
WHICH IT HAS LEASES, SUBLEASES OR OTHER AGREEMENTS PURSUANT TO THIS
SUBDIVISION AND SHALL ANNUALLY CERTIFY THE AMOUNT OF ANNUAL RENTALS
REQUIRED TO BE PAID PURSUANT TO SUCH LEASES, SUBLEASES OR OTHER AGREE-
MENTS.
(2) (I) DAY CARE CENTER FACILITIES RESERVE ACCOUNT. THERE SHALL BE
CREATED AN ACCOUNT IN THE CUSTODY OF THE COMPTROLLER TO BE KNOWN AS THE
DAY CARE CENTER FACILITIES RESERVE ACCOUNT INTO WHICH SHALL BE DEPOSITED
ANY MONEYS HELD IN RESERVE BY THE OFFICE OF CHILDREN AND FAMILY SERVICES
ON BEHALF OF PARTICIPATING PROVIDERS WHICH SHALL BE USED IN PAYMENT OF
OBLIGATIONS PURSUANT TO AGREEMENTS MADE WITH THE DORMITORY AUTHORITY
PURSUANT TO THIS SUBDIVISION. UPON CERTIFICATION FROM THE DORMITORY
AUTHORITY THAT IT REQUIRES A PAYMENT OR PAYMENTS TO COMPLY WITH ANY
LEASE, SUBLEASE OR OTHER AGREEMENT PURSUANT TO THIS SUBDIVISION, THE
COMPTROLLER SHALL PAY FROM SUCH ACCOUNT ON OR BEFORE THE SPECIFIED DATE
TO THE DORMITORY AUTHORITY OR TO THE PAYING AGENT DESIGNATED BY THE
DORMITORY AUTHORITY THE AMOUNT OR AMOUNTS SO CERTIFIED. ANY PAYMENTS OF
MONEY FROM SUCH ACCOUNT SHALL BE MADE ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER.
(II) DAY CARE CENTER FACILITIES DEBT SERVICE RESERVE FUNDS. THE
COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL CREATE
AND ESTABLISH ONE OR MORE SPECIAL FUNDS TO BE KNOWN AS DAY CARE CENTER
FACILITIES DEBT SERVICE RESERVE FUNDS, AND PURSUANT TO AGREEMENTS
BETWEEN THE PROVIDER AND THE DORMITORY AUTHORITY, SHALL PAY INTO SUCH
RESERVE FUNDS:
(A) ANY MONEYS APPROPRIATED AND MADE AVAILABLE BY THE STATE TO DAY
CARE PROVIDERS AND PLEDGED PURSUANT TO AGREEMENTS BETWEEN SUCH PROVIDERS
AND THE DORMITORY AUTHORITY; AND
(B) ANY OTHER MONEYS WHICH MAY BE MADE AVAILABLE TO THE AGENCY FOR THE
PURPOSE OF PAYMENT OF OBLIGATIONS MADE PURSUANT TO AGREEMENTS BETWEEN
SUCH PROVIDERS AND THE DORMITORY AUTHORITY, INCLUDING PAYMENTS FROM
SOCIAL SERVICES DISTRICTS PURSUANT TO AGREEMENTS AND CONTRACTS BETWEEN
SUCH DISTRICTS AND PARTICIPATING PROVIDERS. THE DEPARTMENT OF FAMILY
ASSISTANCE SHALL TRANSFER MONEYS HELD IN THE FUND ON BEHALF OF PARTIC-
IPATING PROVIDERS TO THE COMPTROLLER.
(III) REVENUES IN ANY SPECIAL ACCOUNT IN THE DAY CARE CENTER FACILI-
TIES RESERVE ACCOUNT MAY BE COMMINGLED WITH ANY OTHER MONEYS IN SUCH
ACCOUNT. ALL DEPOSITS OF SUCH REVENUES WITH BANKS AND TRUST COMPANIES
SHALL BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OF
NEW YORK OR ITS POLITICAL SUBDIVISIONS. SUCH OBLIGATIONS SHALL HAVE A
MARKET VALUE AT LEAST EQUAL AT ALL TIMES TO, BUT NOT LESS THAN, ONE
HUNDRED FIVE PERCENT OF THE AMOUNT OF SUCH DEPOSITS. ALL BANKS AND TRUST
COMPANIES ARE AUTHORIZED TO GIVE SECURITY FOR SUCH DEPOSITS. ANY SUCH
REVENUES IN SUCH ACCOUNT MAY, IN THE DISCRETION OF THE COMPTROLLER, BE
INVESTED IN OBLIGATIONS OF THE UNITED STATES OR THE STATE OR OBLIGATIONS
THE PRINCIPAL OF AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED
STATES OR BY THE STATE. ANY INTEREST EARNED SHALL BE CREDITED TO SUCH
ACCOUNT.
(3) MEMORANDUM OF UNDERSTANDING. THE COMMISSIONER OF THE OFFICE OF
CHILDREN AND FAMILY SERVICES SHALL ENTER INTO A MEMORANDUM OF UNDER-
STANDING WITH THE COMPTROLLER AND THE DORMITORY AUTHORITY FOR IMPLEMEN-
TATION OF THIS SUBDIVISION. THE FORM AND CONTENT OF SUCH MEMORANDUM
SHALL BE APPROVED BY THE DIVISION OF BUDGET.
A. 3665 4
F. ALL STATE AND LOCAL OFFICIALS ARE AUTHORIZED AND REQUIRED TO TAKE
WHATEVER ACTIONS ARE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS
SUBDIVISION AND THE PROVISIONS OF ANY LEASES, SUBLEASES OR OTHER AGREE-
MENTS ENTERED INTO PURSUANT TO THIS SUBDIVISION, INCLUDING MAKING THE
REQUIRED PAYMENTS TO THE DORMITORY AUTHORITY.
S 5. This act shall take effect immediately.