S T A T E O F N E W Y O R K
________________________________________________________________________
5701
2011-2012 Regular Sessions
I N A S S E M B L Y
February 25, 2011
___________
Introduced by M. of A. BRENNAN -- read once and referred to the Commit-
tee 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
entities; and providing for the repeal of such provisions upon expira-
tion thereof
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 THAT IS: (I) AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3)
OF THE UNITED STATES INTERNAL REVENUE CODE AND EXEMPT FROM FEDERAL
INCOME TAX UNDER SECTION 501(A) OF THE UNITED STATES INTERNAL REVENUE
CODE; 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, THAT ANY DORMITORY FINANCED, REFINANCED OR OTHERWISE PROVIDED
BY THE AUTHORITY PURSUANT TO THIS PARAGRAPH: (A) SHALL BE LOCATED IN
THE STATE OF NEW YORK; AND, (B) IF THE PROJECT IS IN FURTHERANCE OF THE
PUBLIC PURPOSES OF A PUBLIC CORPORATION (AS DEFINED IN SECTION SIXTY-SIX
OF THE GENERAL CONSTRUCTION LAW) OR OF ANY AGENCY, DEPARTMENT, BOARD,
OFFICER, COMMISSION OR INSTITUTION OF THE STATE OF NEW YORK, THE PROJECT
SHALL CONSTITUTE A PUBLIC WORK FOR PURPOSES OF THE LABOR LAW AND BE
SUBJECT TO THE REQUIREMENTS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW;
PROVIDED FURTHER, THAT ANY BONDS OR OTHER OBLIGATIONS ISSUED FOR THE
BENEFIT OF SUCH ENTITY SHALL CONSTITUTE QUALIFIED TAX EXEMPT OBLI-
GATIONS, A PORTION OF THE INTEREST ON WHICH MAY BE DEDUCTED BY A FINAN-
CIAL INSTITUTION FOR FEDERAL INCOME TAX PURPOSES, AS DESCRIBED IN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09598-01-1
A. 5701 2
SECTION TWO HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE AS MODIFIED
BY SECTION 1502 OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009.
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 THAT IS: (I) AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3)
OF THE UNITED STATES INTERNAL REVENUE CODE AND EXEMPT FROM FEDERAL
INCOME TAX UNDER SECTION 501(A) OF THE UNITED STATES INTERNAL REVENUE
CODE; 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, THAT ANY DORMITORY FINANCED, REFINANCED OR OTHERWISE PROVIDED
BY THE AUTHORITY PURSUANT TO THIS PARAGRAPH: (A) SHALL BE LOCATED IN THE
STATE OF NEW YORK; AND (B) IF THE PROJECT IS IN FURTHERANCE OF THE
PUBLIC PURPOSES OF A PUBLIC CORPORATION (AS DEFINED IN SECTION SIXTY-SIX
OF THE GENERAL CONSTRUCTION LAW) OR OF ANY AGENCY, DEPARTMENT, BOARD,
OFFICER, COMMISSION OR INSTITUTION OF THE STATE OF NEW YORK, THE PROJECT
SHALL CONSTITUTE A PUBLIC WORK FOR PURPOSES OF THE LABOR LAW AND BE
SUBJECT TO THE REQUIREMENTS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW;
AND PROVIDED FURTHER, THAT ANY BONDS OR OTHER OBLIGATIONS ISSUED FOR THE
BENEFIT OF SUCH ENTITY SHALL CONSTITUTE QUALIFIED TAX EXEMPT OBLI-
GATIONS, A PORTION OF THE INTEREST ON WHICH MAY BE DEDUCTED BY A FINAN-
CIAL INSTITUTION FOR FEDERAL INCOME TAX PURPOSES, AS DESCRIBED IN
SECTION TWO HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE AS MODIFIED
BY SECTION 1502 OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY CORPORATION OR OTHER
ENTITY DEFINED AS AN "EDUCATIONAL INSTITUTION" PURSUANT TO THIS PARA-
GRAPH SHALL HAVE FULL POWER AND AUTHORITY TO ASSIGN AND PLEDGE TO THE
DORMITORY AUTHORITY ANY AND ALL PUBLIC FUNDS TO BE APPORTIONED OR OTHER-
WISE 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 EDUCATIONAL 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 DIREC-
TION OF THE DORMITORY AUTHORITY, TO ANY TRUSTEE OF ANY DORMITORY AUTHOR-
ITY 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 3. This act shall take effect immediately and shall expire and be
deemed repealed January 1, 2013.