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.