S T A T E   O F   N E W   Y O R K
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                                  10459

                          I N  A S S E M B L Y

                              May 27, 2016
                               ___________

Introduced  by M. of A. WOZNIAK -- read once and referred to the Commit-
  tee on Tourism, Parks, Arts and Sports Development

AN ACT to amend the arts and cultural affairs law, in relation to estab-
  lishing a trust for cultural resources for the town of Cheektowaga and
  the city of Buffalo

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  arts and cultural affairs law is amended by adding a
new article 22-A to read as follows:
                              ARTICLE 22-A
         TRUST FOR CULTURAL RESOURCES OF THE TOWN OF CHEEKTOWAGA
SECTION 22.20. SPECIAL DEFINITIONS.
        22.21. LEGISLATIVE FINDINGS AND STATEMENT OF PURPOSES.
        22.22. CREATION AND ADMINISTRATION OF THE TRUST.
        22.23. SPECIAL POWERS OF THE TRUST RELATING TO ASSISTING PARTIC-
                 IPATING CULTURAL INSTITUTIONS.
        22.24. SPECIAL PROVISIONS RELATING TO THE FINANCING AND DEVELOP-
                 MENT OF FACILITIES IN THE TOWN OF CHEEKTOWAGA.
  S 22.20. SPECIAL DEFINITIONS. AS USED OR REFERRED TO IN THIS  ARTICLE,
ALL  TERMS  SHALL  HAVE  THE MEANINGS SET FORTH IN SECTION 20.03 OF THIS
CHAPTER, EXCEPT THAT THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING  MEAN-
INGS:
  1. "TOWN" SHALL MEAN THE TOWN OF CHEEKTOWAGA.
  2. "MAYOR" SHALL MEAN THE MAYOR OF THE TOWN.
  3.  "PARTICIPATING  CULTURAL INSTITUTION" SHALL MEAN ANY PERSON FORMED
OTHER THAN FOR PROFIT WHICH  OPERATES  OR  MAKES  AVAILABLE  A  CULTURAL
FACILITY  IN  THE CITY, INCLUDING BUT NOT LIMITED TO MUSEUMS, PERFORMING
ARTS CENTERS, PUBLIC TELEVISION AND RADIO STATIONS, THEATERS,  AUDITORI-
UMS,  LIBRARIES, EXHIBITION, PERFORMANCE AND REHEARSAL SPACE, GALLERIES,
ARTISTS' AND DANCERS'  STUDIOS,  RECORDING  STUDIOS,  AND  RECREATIONAL,
EDUCATIONAL,  OFFICE,  LIVING,  PARKING,  RESTAURANT,  RETAIL OR STORAGE
SPACE RELATED TO ANY OF THE FOREGOING. THE  DECISION  OF  THE  TRUST  IN
DETERMINING  THAT A PERSON IS A PARTICIPATING CULTURAL INSTITUTION SHALL
BE FINAL AND CONCLUSIVE. THE ANNUAL AVERAGE ADMISSIONS  OF  EACH  PERSON

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

                                                           LBD13382-02-6

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WHICH  WOULD  ITSELF QUALIFY AS A PARTICIPATING CULTURAL INSTITUTION AND
WHICH LEASES OR LICENSES SPACE IN A PERFORMING ARTS CENTER FROM  ANOTHER
PARTICIPATING CULTURAL INSTITUTION (THE "LESSOR") SHALL BE ATTRIBUTED TO
THE LESSOR FOR PURPOSES OF THIS ARTICLE AND ARTICLE TWENTY OF THIS CHAP-
TER.
  4.  "TRUST FOR CULTURAL RESOURCES" OR "TRUST" SHALL MEAN THE TRUST FOR
CULTURAL RESOURCES OF THE TOWN OF CHEEKTOWAGA CREATED BY THIS ARTICLE.
  5. "CULTURAL DISTRICT" SHALL MEAN A GEOGRAPHIC AREA OF A CITY, TOWN OR
VILLAGE  WITH  A  CONCENTRATION  OF  CULTURAL  INSTITUTIONS  WITHIN  ITS
BORDERS.
  S 22.21. LEGISLATIVE FINDINGS AND STATEMENT OF PURPOSES. 1. THE LEGIS-
LATURE HEREBY FINDS, DETERMINES AND DECLARES:
  (A)  THAT  CERTAIN MAJOR CULTURAL INSTITUTIONS LOCATED IN THE TOWN ARE
INVALUABLE CULTURAL, EDUCATIONAL AND RECREATIONAL RESOURCES OF THE STATE
AND THE CONTINUED OPERATION OF SUCH INSTITUTIONS IN THE TOWN IS FOR  THE
BENEFIT OF THE PEOPLE OF THE STATE AND THE TOWN;
  (B)  THAT  BY REASON OF THE SEVERE ECONOMIC AND FISCAL PROBLEMS FACING
BOTH THE STATE AND TOWN, NEITHER THE STATE  NOR  THE  TOWN  IS  ABLE  TO
ADEQUATELY  SUPPORT  THE  CULTURAL  INSTITUTIONS  OF  THE  TOWN IN THEIR
EFFORTS BOTH TO PROVIDE CULTURAL, RECREATIONAL AND EDUCATIONAL  OPPORTU-
NITIES  TO  THE  PEOPLE  OF  THE  STATE AND TO IMPROVE THE VIABILITY AND
GROWTH OF CULTURAL ORGANIZATIONS IN THE TOWN; AND
  (C) THAT IT IS IN THE INTEREST OF THE PEOPLE  OF  THE  STATE  AND  FOR
THEIR  BENEFIT  AND WELFARE TO ENCOURAGE THE CREATIVE AND INNOVATIVE USE
OF PUBLIC AND PRIVATE RESOURCES IN ORDER TO  PRESERVE  AND  PROTECT  THE
CULTURAL  RESOURCES OF THE TOWN AND OTHERWISE TO EFFECTUATE THE PURPOSES
OF THIS ARTICLE AND ARTICLE TWENTY OF THIS CHAPTER BY  THE  CREATION  OF
THE TRUST FOR CULTURAL RESOURCES OF THE TOWN OF CHEEKTOWAGA.
  2.  THE LEGISLATURE HEREBY FURTHER FINDS, DETERMINES AND DECLARES THAT
THE CREATION OF THE TRUST FOR CULTURAL RESOURCES OF THE TOWN OF CHEEKTO-
WAGA AND THE DELEGATION TO THE TRUST OF PART OF THE SOVEREIGN  POWER  OF
THE STATE ARE IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THE STATE
AND  CONSTITUTE A GOVERNMENTAL, STATE, MUNICIPAL AND PUBLIC PURPOSE; AND
THAT THE EXERCISE BY THE TRUST OF THE FUNCTIONS AND POWERS GRANTED TO IT
UNDER THIS ARTICLE CONSTITUTES THE PERFORMANCE OF  AN  ESSENTIAL  PUBLIC
AND GOVERNMENTAL FUNCTION.
  S  22.22. CREATION AND ADMINISTRATION OF THE TRUST. 1. THERE IS HEREBY
CREATED THE TRUST FOR CULTURAL RESOURCES  OF  THE  TOWN  OF  CHEEKTOWAGA
WHICH  SHALL HAVE ALL THE POWERS, RIGHTS, PRIVILEGES AND EXEMPTIONS OF A
TRUST FOR CULTURAL RESOURCES DESCRIBED IN ARTICLE TWENTY OF THIS CHAPTER
AND THIS ARTICLE.
  2. THE BOARD OF TRUSTEES OF THE TRUST SHALL CONSIST OF FIVE  TRUSTEES,
ALL  OF  WHOM  SHALL  BE APPOINTED BY THE MAYOR WITH THE APPROVAL OF THE
TOWN COUNCIL AFTER CONSULTATION WITH PERSONS DESIGNATED BY PARTICIPATING
CULTURAL INSTITUTIONS. THE MAYOR, AFTER CONSULTATION WITH SUCH  PERSONS,
SHALL  APPOINT  A  TRUSTEE  AS CHAIRPERSON OF THE BOARD OF TRUSTEES. THE
CHAIRPERSON SHALL PRESIDE OVER ALL MEETINGS OF THE  BOARD  OF  TRUSTEES,
AND  AFTER  CONSULTATION WITH THE MAYOR, THE CHAIRPERSON SHALL APPOINT A
TRUSTEE AS PRESIDENT AND CHIEF  EXECUTIVE  OFFICER  OF  THE  TRUST.  THE
CHAIRPERSON  AND  THE  PRESIDENT  AND CHIEF EXECUTIVE OFFICER SHALL HAVE
SUCH POWERS AND DUTIES AS ARE SET FORTH IN THE  BY-LAWS  OF  THE  TRUST.
TRUSTEES  SHALL  BE APPOINTED FOR A TERM OF SIX YEARS FROM THE EFFECTIVE
DATES OF THEIR APPOINTMENTS; PROVIDED, HOWEVER, THAT THE TERM OF  OFFICE
OF  TWO  TRUSTEES  FIRST  APPOINTED,  OTHER THAN THE CHAIRPERSON AND THE
PRESIDENT, SHALL BE FIVE YEARS , AND THE TERM OF OFFICE OF  ONE  TRUSTEE
FIRST  APPOINTED, OTHER THAN THE CHAIRPERSON AND THE PRESIDENT, SHALL BE

A. 10459                            3

FOUR YEARS. ALL TRUSTEES SHALL  CONTINUE  TO  HOLD  OFFICE  UNTIL  THEIR
SUCCESSORS HAVE BEEN APPOINTED. IF AT ANY TIME THERE IS A VACANCY IN THE
MEMBERSHIP  OF  THE  BOARD OF TRUSTEES, BY REASON OF DEATH, RESIGNATION,
DISQUALIFICATION  OR  OTHERWISE,  SUCH  VACANCY  SHALL BE FILLED FOR THE
UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT. THE MAYOR
MAY REMOVE ANY TRUSTEE FROM OFFICE FOR CAUSE.
  S 22.23. SPECIAL POWERS OF THE TRUST RELATING TO ASSISTING PARTICIPAT-
ING CULTURAL INSTITUTIONS. IN ADDITION TO SUCH POWERS AS  ARE  CONFERRED
ELSEWHERE  IN ARTICLE TWENTY OF THIS CHAPTER AND THIS ARTICLE, THE TRUST
SHALL  HAVE  THE  FOLLOWING  POWERS  WHICH  MAY  BE  EXERCISED,  AT  THE
DISCRETION  OF THE BOARD OF TRUSTEES, SOLELY AND EXCLUSIVELY IN FURTHER-
ANCE OF ITS  CORPORATE  PURPOSES  WITH  OR  WITHOUT  PUBLIC  AUCTION  OR
BIDDING:
  1.  TO  UNDERTAKE  SURVEYS  OF  THE  PRESENT  AND ANTICIPATED NEEDS OF
NOT-FOR-PROFIT CULTURAL ORGANIZATIONS IN  THE  TOWN,  INCLUDING  WITHOUT
LIMITATION  THE NEED FOR DEVELOPMENT OF THE FACILITIES OF SUCH ORGANIZA-
TIONS, IN ORDER TO DETERMINE WHETHER OR NOT THE  TRUST  MAY  EFFECTIVELY
EXERCISE  ITS  POWERS  AND  FULFILL ITS PURPOSES IN COOPERATION WITH ANY
SUCH ORGANIZATIONS;
  2. TO DEVELOP FACILITIES FOR NOT-FOR-PROFIT CULTURAL ORGANIZATIONS  OR
CAUSE  SUCH  FACILITIES TO BE DEVELOPED, IN ACCORDANCE WITH THIS ARTICLE
AND ARTICLE TWENTY OF THIS CHAPTER, TO ACQUIRE IN  CONNECTION  THEREWITH
REAL  PROPERTY OF A NOT-FOR-PROFIT CULTURAL ORGANIZATION, SUBJECT TO THE
RETENTION OR CREATION BY SUCH ORGANIZATION OF ANY  FUTURE  OR  REMAINDER
INTERESTS  IN SUCH PROPERTY, ALL OF WHICH SHALL BE VALID NOTWITHSTANDING
ANY RULE AGAINST PERPETUITIES, AND IN CONNECTION THEREWITH,  TO  INSTALL
OR  CAUSE TO BE INSTALLED WATER, FUEL, GAS, ELECTRICAL, TELEPHONE, HEAT-
ING, AIR-CONDITIONING AND OTHER UTILITY SERVICES, INCLUDING  APPROPRIATE
CONNECTIONS;
  3.  TO MAINTAIN, REPAIR, KEEP UP, MANAGE AND OPERATE ITS REAL PROPERTY
AND ANY FACILITY FOR A  NOT-FOR-PROFIT  CULTURAL  ORGANIZATION  OR  PART
THEREOF DEVELOPED BY OR PURSUANT TO AN AGREEMENT WITH IT, BY MEANS WHICH
MAY  INCLUDE  THE ENFORCEMENT OF ITS RULES AND REGULATIONS IN THE MANNER
DESCRIBED  IN  PARAGRAPH  (D)  OF  SECTION  TWO  HUNDRED  TWO   OF   THE
NOT-FOR-PROFIT CORPORATION LAW WITH THE SAME EFFECT AS THOUGH SUCH PARA-
GRAPH APPLIED TO THE TRUST AND TO SUCH PROPERTY AND FACILITY;
  4.  TO OFFER TO CONVEY AND TO CONVEY ALL OR ANY PART OF THE NON-INSTI-
TUTIONAL PORTION OF A FACILITY OR ANY INTEREST THEREIN, AND TO TAKE  ANY
AND  ALL  ACTIONS DEEMED NECESSARY OR APPROPRIATE BY THE TRUST TO ADVER-
TISE, PROMOTE, ENCOURAGE, AND EFFECT SUCH  CONVEYANCES,  ALL  FUTURE  OR
REMAINDER INTERESTS CREATED OR RETAINED BY THE TRUST IN CONNECTION THER-
EWITH  WHICH  SHALL  BE VALID NOTWITHSTANDING ANY RULE AGAINST PERPETUI-
TIES;
  5. TO CONVEY  WITH  OR  WITHOUT  CONSIDERATION,  TO  A  NOT-FOR-PROFIT
CULTURAL  ORGANIZATION THE INSTITUTIONAL PORTION OF A FACILITY DEVELOPED
IN COOPERATION WITH SUCH ORGANIZATION AND ANY REAL PROPERTY HELD BY  THE
TRUST IN CONNECTION WITH SUCH DEVELOPMENT;
  6.  TO  ENTER INTO A PARTNERSHIP, JOINT VENTURE OR OTHER ENTERPRISE IN
ANY CAPACITY DEEMED BY IT TO BE APPROPRIATE, FOR THE PURPOSE OF DEVELOP-
ING AND OPERATING A FACILITY FOR A NOT-FOR-PROFIT CULTURAL  ORGANIZATION
OR ANY PART THEREOF;
  7.  TO CONVEY, WITHOUT PUBLIC AUCTION OR BIDDING, ANY REAL PROPERTY TO
A DEVELOPER FOR THE PURPOSE OF DEVELOPING THEREIN OR THEREON A FACILITY,
OR A PART OR PORTION THEREOF, SUBJECT TO THE CREATION  OR  RETENTION  BY
THE  TRUST  OF SUCH FUTURE OR REMAINDER INTERESTS IN SUCH PROPERTY AS IT

A. 10459                            4

DEEMS APPROPRIATE, ALL OF WHICH SHALL BE VALID NOTWITHSTANDING ANY  RULE
AGAINST PERPETUITIES;
  8.  TO  PURCHASE OR LEASE THE INSTITUTIONAL PORTION OF A FACILITY FROM
THE DEVELOPER THEREOF FOR USE AND OCCUPANCY BY A NOT-FOR-PROFIT CULTURAL
ORGANIZATION;
  9. TO FURNISH NOT-FOR-PROFIT CULTURAL ORGANIZATIONS  WITH  ADVICE  AND
WITH  TECHNICAL  AND  OTHER  ASSISTANCE; TO ACT AS LIAISON WITH FEDERAL,
STATE AND MUNICIPAL AND OTHER LOCAL AUTHORITIES AND WITH USERS AND OCCU-
PANTS OF FACILITIES WITH  RESPECT  TO  THE  CULTURAL,  RECREATIONAL  AND
EDUCATIONAL  ACTIVITIES  PROVIDED  BY  NOT-FOR-PROFIT CULTURAL ORGANIZA-
TIONS; AND OTHERWISE TO FOSTER AND ENCOURAGE  GREATER  PUBLIC  KNOWLEDGE
OF,  AND  PARTICIPATION  IN,  THE CULTURAL, RECREATIONAL AND EDUCATIONAL
ACTIVITIES OF SUCH ORGANIZATIONS;
  10. TO ORGANIZE ONE OR MORE WHOLLY-OWNED SUBSIDIARY CORPORATIONS UNDER
ANY APPLICABLE PROVISION OF LAW AND TO PERFORM THROUGH SUCH SUBSIDIARIES
OR CAUSE SUCH SUBSIDIARIES TO PERFORM ALL OR ANY PART OF ITS POWERS  AND
FUNCTIONS;
  11.  TO  ESTABLISH  AND  PROMULGATE  SUCH RULES AND REGULATIONS AS THE
TRUST MAY DEEM NECESSARY, CONVENIENT OR DESIRABLE FOR THE USE AND OPERA-
TION OF ANY FACILITY, OR PART THEREOF, AND FOR THE USE OF ANY REAL PROP-
ERTY DEVELOPED OR TO BE DEVELOPED BY OR PURSUANT TO  AN  AGREEMENT  WITH
IT,  INCLUDING  BUT  NOT  LIMITED TO RULES AND REGULATIONS GOVERNING THE
CONDUCT AND SAFETY OF THE PUBLIC ON SUCH PREMISES;
  12. TO MAKE AND EXECUTE SUCH AGREEMENTS, INCLUDING WITHOUT LIMITATION,
INSTRUMENTS OF CONVEYANCE AND AGREEMENTS  WITH  NOT-FOR-PROFIT  CULTURAL
ORGANIZATIONS  WITH  RESPECT  TO THE ARCHITECTURAL AND DESIGN CHARACTER-
ISTICS OF ANY FACILITY, AS ARE NECESSARY OR CONVENIENT FOR THE  EXERCISE
OF ITS CORPORATE POWERS AND FULFILLMENT OF ITS PURPOSES;
  13.  TO  MAKE LOANS IN ACCORDANCE WITH ARTICLE TWENTY OF THIS CHAPTER;
AND
  14. TO DESIGNATE, AS A CULTURAL DISTRICT, AS  DEFINED  IN  SUBDIVISION
FIVE  OF SECTION 22.20 OF THIS ARTICLE, ANY REAL PROPERTY IN THE TOWN OF
CHEEKTOWAGA BOUNDED AND DESCRIBED AS FOLLOWS:
  BEGINNING AT THE INTERSECTION OF WALDEN AVENUE AND  ST.  MARY'S  ROAD,
HEADING  NORTHERLY  ON  ST.  MARY'S  ROAD  UNTIL  INTERSECTING WITH DOAT
STREET, TURNING EASTERLY ONTO DOAT STREET UNTIL PERPENDICULAR  WITH  THE
SOUTHEAST  CORNER OF SCHILLER PARK, TURNING NORTHERLY AND RUNNING PARAL-
LEL TO SCHILLER PARK UNTIL INTERSECTING WITH PENNOCK  PLACE,  CONTINUING
EASTERLY ON PENNOCK PLACE UNTIL INTERSECTING WITH PINE RIDGE ROAD, TURN-
ING SOUTHERLY ON PINE RIDGE ROAD AND THEN TURNING EASTERLY AT THE INTER-
SECTION  OF  PINE RIDGE ROAD AND WILDY AVENUE, CONTINUING EASTERLY UNTIL
THE INTERSECTION OF WILDY AVENUE AND HOERNER AVENUE,  TURNING  SOUTHERLY
ONTO  HOERNER  AVENUE  AND CONTINUING SOUTHERLY UNTIL IT INTERSECTS WITH
DOAT STREET, TURNING EASTERLY AT THE INTERSECTION OF HOERNER AVENUE  AND
DOAT  STREET  AND  CONTINUING EASTERLY UNTIL INTERSECTING WITH ALEXANDER
AVENUE, TURNING SOUTHERLY ON ALEXANDER AVENUE AND  CONTINUING  SOUTHERLY
UNTIL  INTERSECTING  WITH WALDEN AVENUE, TURNING WESTERLY AND CONTINUING
WESTERLY ON WALDEN AVENUE TO THE POINT OR PLACE OF BEGINNING.
  S 22.24. SPECIAL PROVISIONS RELATING TO THE FINANCING AND  DEVELOPMENT
OF FACILITIES IN THE TOWN OF CHEEKTOWAGA. 1. NO INDIVIDUAL WHO SERVES ON
THE  BOARD OF TRUSTEES, OR EQUIVALENT BODY, OF A NOT-FOR-PROFIT CULTURAL
ORGANIZATION SHALL BE A DEVELOPER OF, OR SHARE IN  ANY  PROFITS  ARISING
FROM  THE  DEVELOPMENT  OF,  THE NON-INSTITUTIONAL PORTION OF A FACILITY
DEVELOPED OR DESIGNED TO BE DEVELOPED  FOR  USE  OR  OCCUPANCY  BY  SUCH
ORGANIZATION; PROVIDED THAT: (A) A PERSON IN WHICH SUCH INDIVIDUAL HAS A
FINANCIAL  INTEREST  NOT EXCEEDING FIVE PER CENTUM OF THE EQUITY OF SUCH

A. 10459                            5

PERSON MAY BE A DEVELOPER OF, AND MAY SHARE IN ANY PROFITS ARISING  FROM
THE  DEVELOPMENT  OF, SUCH NON-INSTITUTIONAL PORTION, IF SUCH INDIVIDUAL
REFRAINS FROM VOTING AT ANY MEETING OF THE BOARD O TRUSTEES,  OR  EQUIV-
ALENT  BODY,  OF SUCH INSTITUTION ON ANY MATTER RELATING TO THE APPROVAL
BY THE TRUST OF SUCH PERSON AS A DEVELOPER OF SUCH PORTION AND THE TERMS
AND CONDITIONS OF ANY AGREEMENT RELATING THERETO; (B) A PERSON IN  WHICH
SUCH  INDIVIDUAL  HAS A FINANCIAL INTEREST MAY MAKE A LOAN TO THE TRUST,
TO A DEVELOPER OR TO ANY OTHER PERSON IN THE ORDINARY COURSE OF BUSINESS
IN CONNECTION WITH SUCH DEVELOPMENT; AND (C)  ANY  SUCH  INDIVIDUAL  MAY
PURCHASE OR RENT AN APARTMENT, OR ANY INTEREST THEREIN, IN SUCH PORTION,
FOR FAIR MARKET VALUE.
  2.  NO  TRUSTEE OF THE TRUST AND NO PERSON IN WHICH SUCH TRUSTEE HAS A
FINANCIAL INTEREST SHALL BE A DEVELOPER OF THE NON-INSTITUTIONAL PORTION
OF ANY FACILITY.
  3. IN ANY CASE IN WHICH REAL PROPERTY, CONSISTING OF ALL OR  ANY  PART
OF  THE NON-INSTITUTIONAL PORTION OF A COMBINED-USE FACILITY OR IN OR ON
WHICH ALL OR ANY PART OF SUCH PORTION PRIOR TO COMPLETION IS DESIGNED TO
BE AND UPON COMPLETION IS DEVELOPED, IS EXEMPT FROM REAL PROPERTY  TAXA-
TION  PURSUANT TO SECTION 20.33 OF THIS TITLE, AND SUBJECT TO ANY AGREE-
MENTS WITH THE HOLDERS OF ITS BONDS OR NOTES, THE  TRUST  SHALL  PAY  OR
CAUSE  TO BE PAID BY MEANS WHICH MAY INCLUDE AN AGREEMENT WITH A PARTIC-
IPATING NOT-FOR-PROFIT CULTURAL ORGANIZATION, A DEVELOPER OR  AN  OWNER,
ANNUAL  SUMS  IN LIEU OF TAXES TO ANY MUNICIPALITY OR POLITICAL SUBDIVI-
SION OF THE STATE TO WHICH SUCH TAXES WOULD OTHERWISE BE OWED,  PROVIDED
THAT  SUCH PAYMENTS IN LIEU OF TAXES SHALL BE FOR THE FULL AMOUNT OF ANY
SUCH TAX PAYMENTS DUE AND OWING, UNLESS SUCH MUNICIPALITY OR OTHER POLI-
TICAL SUBDIVISION SHALL AGREE TO A LESSER PAYMENT FOR A LENGTH  OF  TIME
TO  BE SPECIFIED IN AN AGREEMENT BETWEEN THE TRUST AND SUCH MUNICIPALITY
OR POLITICAL SUBDIVISION; AND PROVIDED FURTHER THAT THE TRUST SHALL  NOT
BE  EMPOWERED TO RECEIVE TAX EQUIVALENCY PAYMENTS; AND FURTHER PROVIDED,
THAT THE NON-INSTITUTIONAL PORTION SHALL NOT BE EXEMPT FROM REAL PROPER-
TY TAXATION FROM AND AFTER THE DATE A TRUST  CONVEYS  SUCH  NON-INSTITU-
TIONAL PORTION TO ANY NON-EXEMPT THIRD PARTY.
  S  2.  The  arts  and  cultural affairs law is amended by adding a new
article 22-B to read as follows:
                              ARTICLE 22-B
           TRUST FOR CULTURAL RESOURCES OF THE CITY OF BUFFALO
SECTION 22.50. SPECIAL DEFINITIONS.
        22.51. LEGISLATIVE FINDINGS AND STATEMENT OF PURPOSES.
        22.52. CREATION AND ADMINISTRATION OF THE TRUST.
        22.53. SPECIAL POWERS OF THE TRUST RELATING TO ASSISTING PARTIC-
                 IPATING CULTURAL INSTITUTIONS.
        22.54. SPECIAL PROVISIONS RELATING TO THE FINANCING AND DEVELOP-
                 MENT OF FACILITIES IN THE CITY OF BUFFALO.
  S 22.50. SPECIAL DEFINITIONS. AS USED OR REFERRED TO IN THIS  ARTICLE,
ALL  TERMS  SHALL  HAVE  THE MEANINGS SET FORTH IN SECTION 20.03 OF THIS
CHAPTER, EXCEPT THAT THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING  MEAN-
INGS:
  1. "CITY" SHALL MEAN THE CITY OF BUFFALO.
  2. "MAYOR" SHALL MEAN THE MAYOR OF THE CITY.
  3.  "PARTICIPATING  CULTURAL INSTITUTION" SHALL MEAN ANY PERSON FORMED
OTHER THAN FOR PROFIT WHICH  OPERATES  OR  MAKES  AVAILABLE  A  CULTURAL
FACILITY  IN  THE CITY, INCLUDING BUT NOT LIMITED TO MUSEUMS, PERFORMING
ARTS CENTERS, PUBLIC TELEVISION AND RADIO STATIONS, THEATERS,  AUDITORI-
UMS,  LIBRARIES, EXHIBITION, PERFORMANCE AND REHEARSAL SPACE, GALLERIES,
ARTISTS' AND DANCERS'  STUDIOS,  RECORDING  STUDIOS,  AND  RECREATIONAL,

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EDUCATIONAL,  OFFICE,  LIVING,  PARKING,  RESTAURANT,  RETAIL OR STORAGE
SPACE RELATED TO ANY OF THE FOREGOING. THE  DECISION  OF  THE  TRUST  IN
DETERMINING  THAT A PERSON IS A PARTICIPATING CULTURAL INSTITUTION SHALL
BE  FINAL  AND  CONCLUSIVE. THE ANNUAL AVERAGE ADMISSIONS OF EACH PERSON
WHICH WOULD ITSELF QUALIFY AS A PARTICIPATING CULTURAL  INSTITUTION  AND
WHICH  LEASES OR LICENSES SPACE IN A PERFORMING ARTS CENTER FROM ANOTHER
PARTICIPATING CULTURAL INSTITUTION (THE "LESSOR") SHALL BE ATTRIBUTED TO
THE LESSOR FOR PURPOSES OF THIS ARTICLE AND ARTICLE TWENTY OF THIS CHAP-
TER.
  4. "TRUST FOR CULTURAL RESOURCES" OR "TRUST" SHALL MEAN THE TRUST  FOR
CULTURAL RESOURCES OF THE CITY OF BUFFALO CREATED BY THIS ARTICLE.
  5.  "CULTURAL  DISTRICT"  SHALL  HAVE  THE  SAME MEANING AS DEFINED IN
SUBDIVISION FIVE OF SECTION 22.20 OF THIS ACT.
  S 22.51. LEGISLATIVE FINDINGS AND STATEMENT OF PURPOSES. 1. THE LEGIS-
LATURE HEREBY FINDS, DETERMINES AND DECLARES:
  (A) THAT CERTAIN MAJOR CULTURAL INSTITUTIONS LOCATED IN THE  CITY  ARE
INVALUABLE CULTURAL, EDUCATIONAL AND RECREATIONAL RESOURCES OF THE STATE
AND  THE CONTINUED OPERATION OF SUCH INSTITUTIONS IN THE CITY IS FOR THE
BENEFIT OF THE PEOPLE OF THE STATE AND THE CITY;
  (B) THAT BY REASON OF THE SEVERE ECONOMIC AND FISCAL  PROBLEMS  FACING
BOTH  THE  STATE  AND  CITY,  NEITHER  THE STATE NOR THE CITY IS ABLE TO
ADEQUATELY SUPPORT THE  CULTURAL  INSTITUTIONS  OF  THE  CITY  IN  THEIR
EFFORTS  BOTH TO PROVIDE CULTURAL, RECREATIONAL AND EDUCATIONAL OPPORTU-
NITIES TO THE PEOPLE OF THE STATE  AND  TO  IMPROVE  THE  VIABILITY  AND
GROWTH OF CULTURAL ORGANIZATIONS IN THE CITY; AND
  (C)  THAT  IT  IS  IN  THE INTEREST OF THE PEOPLE OF THE STATE AND FOR
THEIR BENEFIT AND WELFARE TO ENCOURAGE THE CREATIVE AND  INNOVATIVE  USE
OF  PUBLIC  AND  PRIVATE  RESOURCES IN ORDER TO PRESERVE AND PROTECT THE
CULTURAL RESOURCES OF THE CITY AND OTHERWISE TO EFFECTUATE THE  PURPOSES
OF  THIS  ARTICLE  AND ARTICLE TWENTY OF THIS CHAPTER BY THE CREATION OF
THE TRUST FOR CULTURAL RESOURCES OF THE CITY OF BUFFALO.
  2. THE LEGISLATURE HEREBY FURTHER FINDS, DETERMINES AND DECLARES  THAT
THE  CREATION OF THE TRUST FOR CULTURAL RESOURCES OF THE CITY OF BUFFALO
AND THE DELEGATION TO THE TRUST OF PART OF THE SOVEREIGN  POWER  OF  THE
STATE ARE IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THE STATE AND
CONSTITUTE A GOVERNMENTAL, STATE, MUNICIPAL AND PUBLIC PURPOSE; AND THAT
THE  EXERCISE  BY  THE  TRUST  OF THE FUNCTIONS AND POWERS GRANTED TO IT
UNDER THIS ARTICLE CONSTITUTES THE PERFORMANCE OF  AN  ESSENTIAL  PUBLIC
AND GOVERNMENTAL FUNCTION.
  S  22.52. CREATION AND ADMINISTRATION OF THE TRUST. 1. THERE IS HEREBY
CREATED THE TRUST FOR CULTURAL RESOURCES OF THE CITY  OF  BUFFALO  WHICH
SHALL  HAVE ALL THE POWERS, RIGHTS, PRIVILEGES AND EXEMPTIONS OF A TRUST
FOR CULTURAL RESOURCES DESCRIBED IN ARTICLE TWENTY OF THIS  CHAPTER  AND
THIS ARTICLE.
  2.  THE BOARD OF TRUSTEES OF THE TRUST SHALL CONSIST OF FIVE TRUSTEES,
ALL OF WHOM SHALL BE APPOINTED BY THE MAYOR WITH  THE  APPROVAL  OF  THE
CITY COUNCIL AFTER CONSULTATION WITH PERSONS DESIGNATED BY PARTICIPATING
CULTURAL  INSTITUTIONS. THE MAYOR, AFTER CONSULTATION WITH SUCH PERSONS,
SHALL APPOINT A TRUSTEE AS CHAIRPERSON OF THE  BOARD  OF  TRUSTEES.  THE
CHAIRPERSON  SHALL  PRESIDE  OVER ALL MEETINGS OF THE BOARD OF TRUSTEES,
AND AFTER CONSULTATION WITH THE MAYOR, THE CHAIRPERSON SHALL  APPOINT  A
TRUSTEE  AS  PRESIDENT  AND  CHIEF  EXECUTIVE  OFFICER OF THE TRUST. THE
CHAIRPERSON AND THE PRESIDENT AND CHIEF  EXECUTIVE  OFFICER  SHALL  HAVE
SUCH  POWERS  AND  DUTIES  AS ARE SET FORTH IN THE BY-LAWS OF THE TRUST.
TRUSTEES SHALL BE APPOINTED FOR A TERM OF SIX YEARS FROM  THE  EFFECTIVE
DATES  OF THEIR APPOINTMENTS; PROVIDED, HOWEVER, THAT THE TERM OF OFFICE

A. 10459                            7

OF TWO TRUSTEES FIRST APPOINTED, OTHER  THAN  THE  CHAIRPERSON  AND  THE
PRESIDENT,  SHALL  BE  FIVE YEARS, AND THE TERM OF OFFICE OF ONE TRUSTEE
FIRST APPOINTED, OTHER THAN THE CHAIRPERSON AND THE PRESIDENT, SHALL  BE
FOUR  YEARS.  ALL  TRUSTEES  SHALL  CONTINUE  TO HOLD OFFICE UNTIL THEIR
SUCCESSORS HAVE BEEN APPOINTED. IF AT ANY TIME THERE IS A VACANCY IN THE
MEMBERSHIP OF THE BOARD OF TRUSTEES, BY REASON  OF  DEATH,  RESIGNATION,
DISQUALIFICATION  OR  OTHERWISE,  SUCH  VACANCY  SHALL BE FILLED FOR THE
UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT. THE MAYOR
MAY REMOVE ANY TRUSTEE FROM OFFICE FOR CAUSE.
  S 22.53. SPECIAL POWERS OF THE TRUST RELATING TO ASSISTING PARTICIPAT-
ING CULTURAL INSTITUTIONS. IN ADDITION TO SUCH POWERS AS  ARE  CONFERRED
ELSEWHERE  IN ARTICLE TWENTY OF THIS CHAPTER AND THIS ARTICLE, THE TRUST
SHALL  HAVE  THE  FOLLOWING  POWERS  WHICH  MAY  BE  EXERCISED,  AT  THE
DISCRETION  OF THE BOARD OF TRUSTEES, SOLELY AND EXCLUSIVELY IN FURTHER-
ANCE OF ITS  CORPORATE  PURPOSES  WITH  OR  WITHOUT  PUBLIC  AUCTION  OR
BIDDING:
  1.  TO  UNDERTAKE  SURVEYS  OF  THE  PRESENT  AND ANTICIPATED NEEDS OF
NOT-FOR-PROFIT CULTURAL ORGANIZATIONS IN  THE  CITY,  INCLUDING  WITHOUT
LIMITATION  THE NEED FOR DEVELOPMENT OF THE FACILITIES OF SUCH ORGANIZA-
TION, IN ORDER TO DETERMINE WHETHER OR NOT  THE  TRUST  MAY  EFFECTIVELY
EXERCISE  ITS  POWERS  AND  FULFILL ITS PURPOSES IN COOPERATION WITH ANY
SUCH ORGANIZATIONS;
  2. TO DEVELOP FACILITIES FOR NOT-FOR-PROFIT CULTURAL ORGANIZATIONS  OR
CAUSE  SUCH  FACILITIES TO BE DEVELOPED, IN ACCORDANCE WITH THIS ARTICLE
AND ARTICLE TWENTY OF THIS CHAPTER, TO ACQUIRE IN  CONNECTION  THEREWITH
REAL  PROPERTY OF A NOT-FOR-PROFIT CULTURAL ORGANIZATION, SUBJECT TO THE
RETENTION OR CREATION BY SUCH ORGANIZATION OF ANY  FUTURE  OR  REMAINDER
INTERESTS  IN SUCH PROPERTY, ALL OF WHICH SHALL BE VALID NOTWITHSTANDING
ANY RULE AGAINST PERPETUITIES, AND IN CONNECTION THEREWITH,  TO  INSTALL
OR  CAUSE TO BE INSTALLED WATER, FUEL, GAS, ELECTRICAL, TELEPHONE, HEAT-
ING, AIR-CONDITION AND OTHER  UTILITY  SERVICES,  INCLUDING  APPROPRIATE
CONNECTIONS;
  3.  TO MAINTAIN, REPAIR, KEEP UP, MANAGE AND OPERATE ITS REAL PROPERTY
AND ANY FACILITY FOR A  NOT-FOR-PROFIT  CULTURAL  ORGANIZATION  OR  PART
THEREOF DEVELOPED BY OR PURSUANT TO AN AGREEMENT WITH IT, BY MEANS WHICH
MAY  INCLUDE  THE ENFORCEMENT OF ITS RULES AND REGULATIONS IN THE MANNER
DESCRIBED  IN  PARAGRAPH  (D)  OF  SECTION  TWO  HUNDRED  TWO   OF   THE
NOT-FOR-PROFIT CORPORATION LAW WITH THE SAME EFFECT AS THOUGH SUCH PARA-
GRAPH APPLIED TO THE TRUST AND TO SUCH PROPERTY AND FACILITY;
  4.  TO OFFER TO CONVEY AND TO CONVEY ALL OR ANY PART OF THE NON-INSTI-
TUTIONAL PORTION OF A FACILITY OR ANY INTEREST THEREIN, AND TO TAKE  ANY
AND  ALL  ACTIONS DEEMED NECESSARY OR APPROPRIATE BY THE TRUST TO ADVER-
TISE, PROMOTE, ENCOURAGE, AND EFFECT SUCH  CONVEYANCES,  ALL  FUTURE  OR
REMAINDER INTERESTS CREATED OR RETAINED BY THE TRUST IN CONNECTION THER-
EWITH  WHICH  SHALL  BE VALID NOTWITHSTANDING ANY RULE AGAINST PERPETUI-
TIES;
  5. TO CONVEY  WITH  OR  WITHOUT  CONSIDERATION,  TO  A  NOT-FOR-PROFIT
CULTURAL  ORGANIZATION THE INSTITUTIONAL PORTION OF A FACILITY DEVELOPED
IN COOPERATION WITH SUCH ORGANIZATION AND ANY REAL PROPERTY HELD BY  THE
TRUST IN CONNECTION WITH SUCH DEVELOPMENT;
  6.  TO  ENTER INTO A PARTNERSHIP, JOINT VENTURE OR OTHER ENTERPRISE IN
ANY CAPACITY DEEMED BY IT TO BE APPROPRIATE, FOR THE PURPOSE OF DEVELOP-
ING AND OPERATING A FACILITY FOR A NOT-FOR-PROFIT CULTURAL  ORGANIZATION
OR ANY PART THEREOF;
  7.  TO CONVEY, WITHOUT PUBLIC AUCTION OR BIDDING, ANY REAL PROPERTY TO
A DEVELOPER FOR THE PURPOSE OF DEVELOPING THEREIN OR THEREON A FACILITY,

A. 10459                            8

OR A PART OR PORTION THEREOF, SUBJECT TO THE CREATION  OR  RETENTION  BY
THE  TRUST  OF SUCH FUTURE OR REMAINDER INTERESTS IN SUCH PROPERTY AS IT
DEEMS APPROPRIATE, ALL OF WHICH SHALL BE VALID NOTWITHSTANDING ANY  RULE
AGAINST PERPETUITIES;
  8.  TO  PURCHASE OR LEASE THE INSTITUTIONAL PORTION OF A FACILITY FROM
THE DEVELOPER THEREOF FOR USE AND OCCUPANCY BY A NOT-FOR-PROFIT CULTURAL
ORGANIZATION;
  9. TO FURNISH NOT-FOR-PROFIT CULTURAL ORGANIZATIONS  WITH  ADVICE  AND
WITH  TECHNICAL  AND  OTHER  ASSISTANCE; TO ACT AS LIAISON WITH FEDERAL,
STATE AND MUNICIPAL AND OTHER LOCAL AUTHORITIES AND WITH USERS AND OCCU-
PANTS OF FACILITIES WITH  RESPECT  TO  THE  CULTURAL,  RECREATIONAL  AND
EDUCATIONAL  ACTIVITIES  PROVIDED  BY  NOT-FOR-PROFIT CULTURAL ORGANIZA-
TIONS; AND OTHERWISE TO FOSTER AND ENCOURAGE  GREATER  PUBLIC  KNOWLEDGE
OF,  AND  PARTICIPATION  IN,  THE CULTURAL, RECREATIONAL AND EDUCATIONAL
ACTIVITIES OF SUCH ORGANIZATIONS;
  10. TO ORGANIZE ONE OR MORE WHOLLY-OWNED SUBSIDIARY CORPORATIONS UNDER
ANY APPLICABLE PROVISION OF LAW AND TO PERFORM THROUGH SUCH SUBSIDIARIES
OR CAUSE SUCH SUBSIDIARIES TO PERFORM ALL OR ANY PART OF ITS POWERS  AND
FUNCTIONS;
  11.  TO  ESTABLISH  AND  PROMULGATE  SUCH RULES AND REGULATIONS AS THE
TRUST MAY DEEM NECESSARY, CONVENIENT OR DESIRABLE FOR THE USE AND OPERA-
TION OF ANY FACILITY, OR PART THEREOF, AND FOR THE USE OF ANY REAL PROP-
ERTY DEVELOPED OR TO BE DEVELOPED BY OR PURSUANT TO  AN  AGREEMENT  WITH
IT,  INCLUDING  BUT  NOT  LIMITED TO RULES AND REGULATIONS GOVERNING THE
CONDUCT AND SAFETY OF THE PUBLIC ON SUCH PREMISES;
  12. TO MAKE AND EXECUTE SUCH AGREEMENTS, INCLUDING WITHOUT LIMITATION,
INSTRUMENTS OF CONVEYANCE AND AGREEMENTS  WITH  NOT-FOR-PROFIT  CULTURAL
ORGANIZATIONS  WITH  RESPECT  TO THE ARCHITECTURAL AND DESIGN CHARACTER-
ISTICS OF ANY FACILITY, AS ARE NECESSARY OR CONVENIENT FOR THE  EXERCISE
OF ITS CORPORATE POWERS AND THE FULFILLMENT OF ITS PURPOSES;
  13.  TO  MAKE LOANS IN ACCORDANCE WITH ARTICLE TWENTY OF THIS CHAPTER;
AND
  14. TO DESIGNATE, AS A CULTURAL DISTRICT, AS  DEFINED  IN  SUBDIVISION
FIVE  OF SECTION 22.20 OF THIS ARTICLE, ANY REAL PROPERTY IN THE CITY OF
BUFFALO BOUNDED AND DESCRIBED AS FOLLOWS:
  BEGINNING AT THE INTERSECTION OF WALDEN AVENUE AND  ST.  MARY'S  ROAD,
HEADING  NORTHERLY  ON  ST.  MARY'S  ROAD  UNTIL  INTERSECTING WITH DOAT
STREET, TURNING EASTERLY ONTO DOAT STREET UNTIL PERPENDICULAR  WITH  THE
SOUTHEAST  CORNER OF SCHILLER PARK, TURNING NORTHERLY AND RUNNING PARAL-
LEL TO SCHILLER PARK UNTIL INTERSECTING WITH PENNOCK  PLACE,  CONTINUING
EASTERLY ON PENNOCK PLACE UNTIL INTERSECTING WITH PINE RIDGE ROAD, TURN-
ING SOUTHERLY ON PINE RIDGE ROAD AND THEN TURNING EASTERLY AT THE INTER-
SECTION  OF  PINE RIDGE ROAD AND WILDY AVENUE, CONTINUING EASTERLY UNTIL
THE INTERSECTION OF WILDY AVENUE AND HOERNER AVENUE,  TURNING  SOUTHERLY
ONTO  HOERNER  AVENUE  AND CONTINUING SOUTHERLY UNTIL IT INTERSECTS WITH
DOAT STREET, TURNING EASTERLY AT THE INTERSECTION OF HOERNER AVENUE  AND
DOAT  STREET  AND  CONTINUING EASTERLY UNTIL INTERSECTING WITH ALEXANDER
AVENUE, TURNING SOUTHERLY ON ALEXANDER AVENUE AND  CONTINUING  SOUTHERLY
UNTIL  INTERSECTING  WITH WALDEN AVENUE, TURNING WESTERLY AND CONTINUING
WESTERLY ON WALDEN AVENUE TO THE POINT OR PLACE OF BEGINNING.
  S 22.54. SPECIAL PROVISIONS RELATING TO THE FINANCING AND  DEVELOPMENT
OF FACILITIES IN THE CITY OF BUFFALO. 1. NO INDIVIDUAL WHO SERVES ON THE
BOARD  OF  TRUSTEES,  OR  EQUIVALENT  BODY, OF A NOT-FOR-PROFIT CULTURAL
ORGANIZATION SHALL BE A DEVELOPER OF, OR SHARE IN  ANY  PROFITS  ARISING
FROM  THE  DEVELOPMENT  OF,  THE NON-INSTITUTIONAL PORTION OF A FACILITY
DEVELOPED OR DESIGNED TO BE DEVELOPED  FOR  USE  OR  OCCUPANCY  BY  SUCH

A. 10459                            9

ORGANIZATION; PROVIDED THAT: (A) A PERSON IN WHICH SUCH INDIVIDUAL HAS A
FINANCIAL  INTEREST  NOT EXCEEDING FIVE PER CENTUM OF THE EQUITY OF SUCH
PERSON MAY BE A DEVELOPER OF, AND MAY SHARE IN ANY PROFITS ARISING  FROM
THE  DEVELOPMENT  OF, SUCH NON-INSTITUTIONAL PORTION, IF SUCH INDIVIDUAL
REFRAINS FROM VOTING AT ANY MEETING OF THE BOARD OF TRUSTEES, OR  EQUIV-
ALENT  BODY,  OF SUCH INSTITUTION ON ANY MATTER RELATING TO THE APPROVAL
BY THE TRUST OF SUCH PERSON AS A DEVELOPER OF SUCH PORTION AND THE TERMS
AND CONDITIONS OF ANY AGREEMENT RELATING THERETO; (B) A PERSON IN  WHICH
SUCH  INDIVIDUAL  HAS A FINANCIAL INTEREST MAY MAKE A LOAN TO THE TRUST,
TO A DEVELOPER OR TO ANY OTHER PERSON IN THE ORDINARY COURSE OF BUSINESS
IN CONNECTION WITH SUCH DEVELOPMENT; AND (C)  ANY  SUCH  INDIVIDUAL  MAY
PURCHASE OR RENT AN APARTMENT, OR ANY INTEREST THEREIN, IN SUCH PORTION,
FOR FAIR MARKET VALUE.
  2.  NO  TRUSTEE OF THE TRUST AND NO PERSON IN WHICH SUCH TRUSTEE HAS A
FINANCIAL INTEREST SHALL BE A DEVELOPER OF THE NON-INSTITUTIONAL PORTION
OF ANY FACILITY.
  3. IN ANY CASE IN WHICH REAL PROPERTY, CONSISTING OF ALL OR  ANY  PART
OF  THE NON-INSTITUTIONAL PORTION OF A COMBINED-USE FACILITY OR IN OR ON
WHICH ALL OR ANY PART OF SUCH PORTION PRIOR TO COMPLETION IS DESIGNED TO
BE AND UPON COMPLETION IS DEVELOPED, IS EXEMPT FROM REAL PROPERTY  TAXA-
TION  PURSUANT TO SECTION 20.33 OF THIS TITLE, AND SUBJECT TO ANY AGREE-
MENTS WITH THE HOLDERS OF ITS BONDS OR NOTES, THE  TRUST  SHALL  PAY  OR
CAUSE  TO BE PAID BY MEANS WHICH MAY INCLUDE AN AGREEMENT WITH A PARTIC-
IPATING NOT-FOR-PROFIT CULTURAL ORGANIZATION, A DEVELOPER OR  AN  OWNER,
ANNUAL  SUMS  IN LIEU OF TAXES TO ANY MUNICIPALITY OR POLITICAL SUBDIVI-
SION OF THE STATE TO WHICH SUCH TAXES WOULD OTHERWISE BE OWED,  PROVIDED
THAT  SUCH PAYMENTS IN LIEU OF TAXES SHALL BE FOR THE FULL AMOUNT OF ANY
SUCH TAX PAYMENTS DUE AND OWING, UNLESS SUCH MUNICIPALITY OR OTHER POLI-
TICAL SUBDIVISION SHALL AGREE TO A LESSER PAYMENT FOR A LENGTH  OF  TIME
TO  BE SPECIFIED IN AN AGREEMENT BETWEEN THE TRUST AND SUCH MUNICIPALITY
OR POLITICAL SUBDIVISION; AND PROVIDED FURTHER THAT THE TRUST SHALL  NOT
BE  EMPOWERED TO RECEIVE TAX EQUIVALENCY PAYMENTS; AND FURTHER PROVIDED,
THAT THE NON-INSTITUTIONAL PORTION SHALL NOT BE EXEMPT FROM REAL PROPER-
TY TAXATION FROM AND AFTER THE DATE A TRUST  CONVEYS  SUCH  NON-INSTITU-
TIONAL PORTION TO ANY NON-EXEMPT THIRD PARTY.
  S 3. This act shall take effect immediately.