Senate Bill S3268

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3268
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN ACT to amend the state finance  law,  in  relation  to  comprehensive
   delivery;  to  amend  the  public  authorities law, in relation to any
   development entity for the purposes of development or operation of  an
   approved  project  for  the purposes of comprehensive delivery; and to
   amend the local finance law, in relation  to  a  municipality,  school
   district  or district corporation having the power to contract indebt-
   edness for the purposes of  implementing  the  provisions  of  article
   nine-A of the state finance law
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
 declares  that  there  is a public need to accelerate delivery of energy
 and infrastructure improvements to address critical needs of  the  state
 and  its political subdivisions, including: (i) achieving net zero emis-
 sions state-wide by 2050; (ii) rapid development  of  affordable  homes,
 educational  facilities  and  housing and access to high-speed broadband
 internet; (iii) replenishment and improvement  of  core  transportation,
 aviation,  transit  and  vertical  infrastructure;  (iv) clean water and
 efficient sewer systems and waste technologies; (v) climate change miti-
 gation and flood and grid  resiliency;  (vi)  generating  and  enhancing
 pro-labor  jobs  and attracting new talent to New York; (vii) bolstering
 global investment and development in New York; (viii) increasing  oppor-
 tunities  for  small,  minority-owned, women-owned and serviced disabled
 veteran owned businesses; (ix) fully unlocking and enabling  accelerated
 access  to  federal  funding for energy and infrastructure projects; and
 (x) addressing the deferred maintenance crisis across New York's infras-
 tructure. Authorizing a consolidated delivery approach that  allows  for
 one  or more of design, construction, finance, operations and/or mainte-
 nance under a single contract can, where appropriate, more  rapidly  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01970-01-5
              

 S. 3268                             2
 
 cost  effectively  result  in  the  achievement of each of the foregoing
 objectives and unlock access to federal capital requiring such statutory
 authorization.
   §  2.  The state finance law is amended by adding a new article 9-A to
 read as follows:
                                 ARTICLE 9-A
                          COMPREHENSIVE DELIVERY
 SECTION 149.   DEFINITIONS.
         149-A. ENABLING AUTHORITY.
         149-B. PROCUREMENT.
         149-C. PROJECT FUNDING.
         149-D. LABOR AND PUBLIC INTEREST PROTECTIONS.
         149-E. COMPREHENSIVE AGREEMENTS.
         149-F. CONSTRUCTION.
         149-G. SEVERABILITY.
   § 149. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "AUTHORIZED PROJECT" MEANS INFRASTRUCTURE DELIVERED UNDER AN INTER-
 IM AGREEMENT AND/OR COMPREHENSIVE AGREEMENT BETWEEN A PUBLIC ENTITY  AND
 A  DEVELOPMENT  ENTITY  CONSOLIDATING  AT  LEAST  TWO OR MORE OF DESIGN,
 CONSTRUCTION, FINANCE, OPERATIONS  AND/OR  MAINTENANCE  WORK,  INCLUDING
 CONSTRUCTION MANAGER OR CONSTRUCTION MANAGER AT RISK UNDER THIS ARTICLE;
   2.  "COMPREHENSIVE AGREEMENT" MEANS AN AGREEMENT BETWEEN A DEVELOPMENT
 ENTITY AND A PUBLIC ENTITY FOR THE DELIVERY OF  AN  AUTHORIZED  PROJECT,
 INCLUDING AT LEAST THOSE REQUIRED PROVISIONS UNDER THIS ARTICLE;
   3. "INFRASTRUCTURE" MEANS PHYSICAL STRUCTURES, IMPROVEMENTS, EQUIPMENT
 AND/OR FACILITIES, INCLUDING ANY DIGITAL INFRASTRUCTURE, WHICH SUPPORT A
 PUBLIC PURPOSE OR OBJECTIVE OF A PUBLIC ENTITY;
   4.  "INTERIM  AGREEMENT" MEANS THE INTERIM AGREEMENT, INCLUDING A PRE-
 DEVELOPMENT AGREEMENT OR MEMORANDUM OF UNDERSTANDING  OR  OTHER  BINDING
 PRELIMINARY  AGREEMENT, THAT MAY BE ENTERED INTO BETWEEN THE DEVELOPMENT
 ENTITY AND THE PUBLIC ENTITY PURSUANT TO THIS ARTICLE;
   5. "DEVELOPMENT ENTITY" MEANS ANY NATURAL PERSON,  CORPORATION,  PART-
 NERSHIP,  LIMITED LIABILITY COMPANY INCLUDING A SPECIAL PURPOSE VEHICLE,
 JOINT VENTURE, NOT-FOR-PROFIT CORPORATION OR OTHER BUSINESS ENTITY;
   6. "PUBLIC ENTITY" MEANS THE  STATE  AND  ANY  AGENCY,  DEPARTMENT  OR
 AUTHORITY  THEREOF,  ANY  COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT
 AND ANY OTHER POLITICAL SUBDIVISION, INSTITUTION  OF  HIGHER  EDUCATION,
 AGENCY, CORPORATION, INSTRUMENTALITY OR AUTHORITY OF, OR ESTABLISHED BY,
 ANY OF THE FOREGOING; AND
   7.  "REVENUES"  MEANS  ALL  REVENUES,  INCLUDING,  BUT NOT LIMITED TO,
 INCOME, EARNINGS, INTEREST PAYMENTS, USER FEES,  LEASE  PAYMENTS,  ALLO-
 CATIONS, FEDERAL, STATE, REGIONAL AND LOCAL APPROPRIATIONS OR THE APPRO-
 PRIATIONS  OR OTHER FUNDS AVAILABLE TO ANY PUBLIC ENTITY, BOND PROCEEDS,
 EQUITY  INVESTMENTS  AND/OR  SERVICE  PAYMENTS  ARISING  OUT  OF  OR  IN
 CONNECTION WITH SUPPORTING THE DEVELOPMENT AND/OR OPERATION OF A AUTHOR-
 IZED  PROJECT, INCLUDING WITHOUT LIMITATION, MONEY RECEIVED AS GRANTS OR
 OTHERWISE FROM THE UNITED STATES OF AMERICA, FROM ANY PUBLIC ENTITY,  OR
 FROM  ANY  AGENCY  OR  INSTRUMENTALITY  OF  THE FOREGOING IN AID OF SUCH
 FACILITY.
   § 149-A. ENABLING AUTHORITY.  SUBJECT  TO  SUBDIVISION  FOUR  OF  THIS
 SECTION,  WHERE  IT IS DETERMINED BY A PUBLIC ENTITY TO BE IN THE PUBLIC
 INTEREST TO PURSUE AN AUTHORIZED PROJECT, NOTWITHSTANDING ANY LAW, RULE,
 OR REGULATION TO THE CONTRARY AND IN LIEU OF ANY  OTHER  PROCUREMENT  OR
 ACQUISITION PROCESS THAT MAY APPLY TO AN AUTHORIZED PROJECT, SUCH PUBLIC
 ENTITY IS AUTHORIZED TO:
 S. 3268                             3
 
   1. ESTABLISH NECESSARY AND APPROPRIATE PROCUREMENT AND DELIVERY INTER-
 NAL  CONTROL  POLICIES, PROCEDURES, OR GUIDELINES TO EFFICIENTLY DELIVER
 AN AUTHORIZED PROJECT. SUCH POLICIES, PROCEDURES OR GUIDELINES MUST ALSO
 ENSURE OPEN, COMPETITIVE, TRANSPARENT AND ROBUST SELECTION BASIS OF  ANY
 DEVELOPMENT ENTITY FOR AN AUTHORIZED PROJECT;
   2.  ENTER  INTO  INTERIM  AGREEMENTS,  COMPREHENSIVE AGREEMENTS OR ANY
 OTHER DOCUMENT OR INSTRUMENT THAT MAY  BE  NECESSARY  OR  CONVENIENT  TO
 DELIVER AN AUTHORIZED PROJECT PURSUANT TO THIS ARTICLE;
   3.  DEDICATE,  MAKE AVAILABLE, OR CONVEY ANY REAL, PERSONAL, TANGIBLE,
 INTANGIBLE AND PROPERTY INTEREST THAT IT HAS TO A DEVELOPMENT ENTITY FOR
 AN AUTHORIZED PROJECT;
   4. EXERCISE GOVERNMENTAL AUTHORITIES OR POWERS TO SUPPORT THE DELIVERY
 OF AN AUTHORIZED PROJECT; AND
   5. ENABLE A DEVELOPMENT ENTITY TO PERFORM UNDER THE TERMS OF A COMPRE-
 HENSIVE AGREEMENT, AND SUBJECT TO THE LIMITATIONS  UNDER  THIS  ARTICLE,
 FUNCTIONS NORMALLY UNDERTAKEN BY THE GOVERNMENT.
   §  149-B. PROCUREMENT. 1. THE PUBLIC ENTITY MAY HOLD ONE-ON-ONE COLLA-
 BORATIVE DIALOGUE MEETINGS WITH DEVELOPMENT ENTITIES DURING  A  PROCURE-
 MENT  FOR  AN  AUTHORIZED  PROJECT  TO  NEGOTIATE INDIVIDUALLY WITH EACH
 DEVELOPMENT ENTITY THE TERMS OF AN INTERIM AND COMPREHENSIVE AGREEMENT.
   2. ANY MATERIALS OR DATA SUBMITTED TO, MADE AVAILABLE TO, OR  RECEIVED
 BY  THE  PUBLIC  ENTITY,  MAY BE HELD CONFIDENTIAL AND NOT PUBLIC RECORD
 UNTIL SUCH TIME AS A PREFERRED PROPOSER IS AWARDED OR THE PROCUREMENT IS
 TERMINATED.
   3. THE PUBLIC ENTITY MAY RECEIVE, CONSIDER,  EVALUATE  AND  ACCEPT  AN
 UNSOLICITED PROPOSAL FOR AN AUTHORIZED PROJECT IF THE PROPOSAL ADDRESSES
 THE  NEEDS  OF  A  PUBLIC  ENTITY AND SUCH PUBLIC ENTITY HAS PUBLISHED A
 POLICY OR PROCUREMENT REGULATION FOR UNSOLICITED PROPOSALS.
   4. THE PUBLIC ENTITY IS AUTHORIZED TO PAY, IN EXCHANGE FOR RECEIPT  OF
 INTELLECTUAL  PROPERTY  FROM  A  PROPOSER,  A STIPEND TO AN UNSUCCESSFUL
 PROPOSER OR A PROPOSER IN A  CANCELLED  PROCUREMENT  FOR  AN  AUTHORIZED
 PROJECT, IN AN AMOUNT AND THE TERMS DETERMINED APPROPRIATE BY THE PUBLIC
 ENTITY.
   5.  THE  PUBLIC ENTITY MAY RETAIN, BY MEANS OF COMPETITIVE NEGOTIATION
 CONSULTANTS AND EXPERTS INSIDE AND OUTSIDE THE PUBLIC SECTOR  TO  ASSIST
 IN THE PROCUREMENT, EVALUATION, CONTRACTING, MANAGING AND NEGOTIATION OF
 AUTHORIZED PROJECTS UNDER THIS ARTICLE.
   6.  THE  PUBLIC ENTITY MAY SELECT A PREFERRED PROPOSER TO SERVE AS THE
 DEVELOPMENT ENTITY FOR AN APPROVED PROJECT THROUGH A  SINGLE  OR  MULTI-
 STEP PROCUREMENT PROCESS ON A BEST VALUE BASIS.
   7.  FOR  ALL  INFRASTRUCTURE PROJECTS IN EXCESS OF TWO HUNDRED MILLION
 DOLLARS (AS ADJUSTED BY THE CONSUMER PRICE INDEX ANNUALLY),  ALL  PUBLIC
 ENTITIES  MUST  CONDUCT  AN  ASSESSMENT,  WHICH MAY BE A VALUE FOR MONEY
 ASSESSMENT OR EQUIVALENT, THAT QUANTITATIVELY AND QUALITATIVELY ASSESSES
 THE MOST APPROPRIATE DELIVERY  MODEL  FOR  SUCH  INFRASTRUCTURE  PROJECT
 COMPARING  THE  COST, PRICE, SCHEDULE, QUALITY, LONG-TERM OPERATIONS AND
 MAINTENANCE COSTS, FUTURE REVENUE STREAMS TO FUND  SUCH  INFRASTRUCTURE,
 AND  RELATIVE  BENEFITS  AND  CHALLENGES OF DESIGN-BID-BUILD PROCUREMENT
 METHODS TO THOSE AUTHORIZED BY THIS SECTION.
   § 149-C. PROJECT FUNDING. 1. ANY LAWFUL SOURCE OF FUNDING, REVENUE AND
 FINANCING MAY BE UTILIZED BY A PUBLIC ENTITY AND DEVELOPMENT ENTITY  FOR
 THE DEVELOPMENT, MAINTENANCE AND OPERATIONS OF AN AUTHORIZED PROJECT AND
 A  PUBLIC ENTITY IS AUTHORIZED TO PAY A DEVELOPMENT ENTITY A PAYMENT FOR
 THE AVAILABILITY OF  AN  AUTHORIZED  PROJECT,  WHERE  SUCH  AVAILABILITY
 PAYMENT  IS  PERFORMANCE  BASED AND DECREASES WHERE A DEVELOPMENT ENTITY
 FAILS TO PERFORM IN  ACCORDANCE  WITH  A  COMPREHENSIVE  AGREEMENT.  ANY
 S. 3268                             4
 
 PUBLIC  ENTITY  MAY AUTHORIZE A DEVELOPMENT ENTITY TO PERFORM ANY ONE OR
 MORE OF THE FOLLOWING: SETTING  RATES,  COLLECTING  REVENUES,  ENFORCING
 COLLECTION,  OR  RETAINING  REVENUES  FROM THIRD PARTIES AND THE GENERAL
 PUBLIC  FOR  THE  USE  OF  AN  AUTHORIZED  PROJECT, ALL OF WHICH WILL BE
 SUBJECT TO LIMITATIONS, CONSTRAINTS AND PARAMETERS  ESTABLISHED  BY  THE
 PUBLIC  ENTITY IN A COMPREHENSIVE AGREEMENT. THE COMPREHENSIVE AGREEMENT
 WILL PRESCRIBE THE EXTENT TO WHICH ANY SUCH RATES  ARE  SUBJECT  TO  THE
 PUBLIC ENTITY'S OVERSIGHT AND APPROVAL. A PUBLIC ENTITY MAY COMPENSATE A
 DEVELOPMENT  ENTITY  UNDER  AN  INTERIM AGREEMENT FOR WORK PERFORMED AND
 WORK PRODUCT PRODUCED.
   2. THE PUBLIC ENTITY MAY ACCEPT FROM ANY SOURCE ANY  GRANT,  DONATION,
 GIFT, OR OTHER FORM OF CONVEYANCE OF LAND, MONEY, OTHER REAL OR PERSONAL
 PROPERTY  OR OTHER VALUABLE THING MADE TO THE PUBLIC ENTITY FOR CARRYING
 OUT THE PURPOSES OF THIS ARTICLE AND MAY TRANSFER  SUCH  PROPERTY  TO  A
 DEVELOPMENT ENTITY UNDER A COMPREHENSIVE AGREEMENT.
   3.  ANY  COMPREHENSIVE  AGREEMENT  MAY BE FOR A TERM DEEMED REASONABLY
 APPROPRIATE BY A PUBLIC ENTITY TO ACHIEVE THE PURPOSE OF THIS ARTICLE.
   § 149-D. LABOR AND PUBLIC INTEREST PROTECTIONS.  THE  INTENT  OF  THIS
 ARTICLE IS TO ENHANCE OPPORTUNITIES AND IMPROVE WAGES FOR NEW YORK STATE
 PUBLIC AND PRIVATE SECTOR LABOR PARTICIPANTS.
   1. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL RIGHTS OR
 BENEFITS,  INCLUDING  TERMS AND CONDITIONS OF EMPLOYMENT, AND PROTECTION
 OF CIVIL SERVICE AND COLLECTIVE BARGAINING STATUS OF  ALL  EMPLOYEES  OF
 EXISTING   STATE   AGENCIES  AND  PUBLIC  AUTHORITIES  AFFECTED  BY  THE
 PROVISIONS OF THIS ARTICLE, SHALL BE PRESERVED AND PROTECTED. NOTHING IN
 THIS ARTICLE SHALL RESULT IN: THE DISPLACEMENT OF ANY CURRENTLY EMPLOYED
 PUBLIC EMPLOYEE OR LOSS OF POSITION, INCLUDING PARTIAL DISPLACEMENT SUCH
 AS A REDUCTION IN THE HOURS OF NON-OVERTIME WORK,  WAGES  OR  EMPLOYMENT
 BENEFITS,  ON  AN EXISTING ASSET OR RESULT IN THE IMPAIRMENT OF EXISTING
 COLLECTIVE BARGAINING AGREEMENTS WITH RESPECT TO EXISTING ASSETS; OR THE
 TRANSFER OF EXISTING DUTIES AND FUNCTIONS CURRENTLY PERFORMED BY EMPLOY-
 EES OF EXISTING STATE AGENCIES OR PUBLIC AUTHORITIES, IN EACH  CASE,  ON
 EXISTING  ASSETS, AFFECTED BY THE PROVISIONS OF THIS ARTICLE TO A DEVEL-
 OPMENT ENTITY. EMPLOYEES SERVING IN POSITIONS IN  NEWLY  CREATED  TITLES
 SHALL  BE  ASSIGNED  TO THE APPROPRIATE BARGAINING UNIT. NOTHING IN THIS
 ARTICLE SHALL BE CONSTRUED TO AFFECT:
   (A) THE EXISTING RIGHTS OF EMPLOYEES PURSUANT TO AN  EXISTING  COLLEC-
 TIVE BARGAINING AGREEMENT; OR
   (B)  THE EXISTING REPRESENTATIONAL RELATIONSHIPS AMONG EMPLOYEE ORGAN-
 IZATIONS OR THE BARGAINING RELATIONSHIPS BETWEEN  THE  EMPLOYER  AND  AN
 EMPLOYEE ORGANIZATION.
   2.  EVERY DEVELOPMENT ENTITY WHICH ENTERS INTO AN INTERIM AGREEMENT OR
 COMPREHENSIVE AGREEMENT PURSUANT TO THIS ARTICLE SHALL BE SUBJECT TO THE
 LABOR LAW REQUIREMENTS AND MINORITY AND WOMEN OWNED BUSINESS  ENTERPRISE
 REQUIREMENTS  FOR  DESIGN  AND  CONSTRUCTION PROVIDED UNDER THE NEW YORK
 STATE INFRASTRUCTURE INVESTMENT ACT, AS AMENDED, FOR AUTHORIZED PROJECTS
 OUTSIDE OF NEW YORK CITY AND THE NEW YORK CITY PUBLIC  WORKS  INVESTMENT
 ACT,  AS  AMENDED,  FOR  AUTHORIZED PROJECTS PROCURED BY THE CITY OF NEW
 YORK AS WELL AS THE FOLLOWING:
   (A) THE PROVISIONS OF ARTICLE EIGHT OF THE ENVIRONMENTAL  CONSERVATION
 LAW;
   (B) THE PROVISIONS OF ALL STATE AND FEDERAL LAWS PROHIBITING DISCRIMI-
 NATION AND REQUIRING THE PROVISION OF EQUAL EMPLOYMENT OPPORTUNITY;
   (C)  THE  PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW POST-A-
 WARD OF AN AUTHORIZED PROJECT; AND
 S. 3268                             5
 
   (D) ANY OTHER CONSISTENT LOCAL AND STATE LAW AND ANY APPLICABLE FEDER-
 AL LAW, RULES AND REGULATIONS WHICH ARE OTHERWISE  REQUIRED  BY  LAW  IN
 CONNECTION WITH THE PERFORMANCE OF PUBLIC WORK AND THE WORK TO WHICH THE
 AUTHORIZED PROJECT RELATES.
   §  149-E. COMPREHENSIVE AGREEMENTS. 1. A COMPREHENSIVE AGREEMENT UNDER
 THIS SECTION MAY PROVIDE, INCLUDING BUT NOT LIMITED TO:
   (A)   PLANNING,   ACQUISITION,   FINANCING,    DEVELOPMENT,    DESIGN,
 CONSTRUCTION, RECONSTRUCTION, REPLACEMENT, FINANCING, IMPROVEMENT, MAIN-
 TENANCE,  LIFE-CYCLE  WORK, MANAGEMENT, REPAIR, LEASING AND/OR OPERATION
 OF QUALIFYING PUBLIC INFRASTRUCTURE;
   (B)   PAYMENT   OF   LONG-TERM   PERFORMANCE-BASED   PAYMENTS   AND/OR
 CONSTRUCTION MILESTONE PAYMENTS;
   (C) REQUIREMENTS REGARDING SETTING, COLLECTING, RETAINING, SHARING AND
 ENFORCING USER FEES OR RENTS;
   (D)  TERMS AND CONDITIONS OF INDEMNIFICATION OF THE DEVELOPMENT ENTITY
 BY THE PUBLIC ENTITY;
   (E) A LEASE, LICENSE, OR CONVEYANCE OF A REAL, PERSONAL OR  INTANGIBLE
 PROPERTY INTERESTS;
   (F) APPROPRIATELY SIZING ANY PERFORMANCE AND PAYMENT BONDS RELATIVE TO
 THE OVERALL SECURITY PACKAGE FOR THE APPROVED PROJECT;
   (G) THE PROVISION OF INSURANCE POLICIES EITHER THROUGH THE DEVELOPMENT
 ENTITY AND/OR THE PUBLIC ENTITY;
   (H)  A SECURITY INTEREST BY THE LENDERS IN THE COMPREHENSIVE AGREEMENT
 AND THE RIGHT OF THE DEVELOPMENT ENTITY  TO  PLEDGE  ITS  INTERESTS  AND
 REVENUES  UNDER THE COMPREHENSIVE AGREEMENT FOR THE BENEFIT OF ITS LEND-
 ERS;
   (I) STEP-IN RIGHTS FOR THE PUBLIC ENTITY UPON A DEFAULT OF THE  DEVEL-
 OPMENT ENTITY;
   (J) ENFORCEMENT AND OTHER POLICING ISSUES, INCLUDING ANY REIMBURSEMENT
 BY THE DEVELOPMENT ENTITY FOR SUCH SERVICES;
   (K) PROVISIONS ALLOWING THE DEVELOPMENT ENTITY OR THE PUBLIC ENTITY TO
 ACT  ON  EACH  OTHER'S  BEHALF  IN  ACQUIRING PARCELS, INCLUDING THROUGH
 CONDEMNATION, REQUIRED FOR THE APPROVED PROJECT; AND
   (L) ANY OTHER PROVISION  DEEMED  REASONABLY  NECESSARY  TO  SERVE  THE
 PUBLIC PURPOSE UNDER THIS ARTICLE.
   2. A COMPREHENSIVE AGREEMENT UNDER THIS SECTION SHALL PROVIDE FOR:
   (A)  APPROPRIATE  AND  BALANCED RISK ALLOCATION TO MAXIMIZE BEST VALUE
 FOR THE APPROVED PROJECT;
   (B) A SPECIFIC PLAN, WHERE APPLICABLE, TO ENSURE PROPER MAINTENANCE OF
 THE QUALIFYING PUBLIC INFRASTRUCTURE THROUGHOUT THE TERM OF THE  COMPRE-
 HENSIVE  AGREEMENT AND A RETURN OF THE INFRASTRUCTURE TO THE RESPONSIBLE
 PUBLIC ENTITY, IF APPLICABLE, IN A SPECIFIED CONDITION IN THE COMPREHEN-
 SIVE AGREEMENT;
   (C) COMPLIANCE WITH APPLICABLE LAW AND THIS ARTICLE;
   (D) GROUNDS FOR DEFAULT AND TERMINATION AND AUTHORIZATION  OF  PAYMENT
 OF TERMINATION COMPENSATION;
   (E)  A  DATE FOR COMPLETION OF THE APPLICABLE WORK REQUIRED TO DELIVER
 THE AUTHORIZED PROJECT; AND
   (F) REVIEW AND APPROVAL BY THE PUBLIC ENTITY OF THE DEVELOPMENT  ENTI-
 TY'S  PLANS  AND  PERFORMANCE  OF THE DEVELOPMENT AND MAINTENANCE OF THE
 AUTHORIZED PROJECT.
   3. THE COMPREHENSIVE AGREEMENT MAY PROVIDE FOR THE DEVELOPMENT  AND/OR
 OPERATION  OF  PHASES  OR  SEGMENTS OR MULTIPLE BUNDLED PROJECTS UNDER A
 SINGLE COMPREHENSIVE AGREEMENT.
   4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE RESPONSIBLE  PUBLIC
 ENTITY  MAY  AGREE TO OR REQUIRE USE OF ARBITRATION OR OTHER ALTERNATIVE
 S. 3268                             6
 
 DISPUTE RESOLUTION PROCEDURES TO RESOLVE DISPUTES WITH  THE  DEVELOPMENT
 ENTITY.
   5.  DEVELOPMENT  ENTITIES  SHALL NOT BE SUBJECT TO ARTICLE ONE HUNDRED
 FORTY-FIVE OF THE EDUCATION  LAW,  PROVIDED,  HOWEVER  ALL  PROFESSIONAL
 SERVICES  RENDERED BY A DEVELOPMENT ENTITY MUST BE PERFORMED BY LICENSED
 PERSONS AS REQUIRED UNDER ARTICLE ONE HUNDRED FORTY-FIVE OF  THE  EDUCA-
 TION LAW.
   6.  WHILE  PUBLIC  FUNDING  CAN  BE  USED  TO SUPPORT PAYMENTS UNDER A
 COMPREHENSIVE AGREEMENT, THE FULL FAITH AND CREDIT OF THE PUBLIC  ENTITY
 SHALL  NOT  BE PLEDGED TO SECURE ANY FINANCING OF THE DEVELOPMENT ENTITY
 BY THE ELECTION TO TAKE OVER THE QUALIFYING  PUBLIC  INFRASTRUCTURE  AND
 SUCH  AVAILABILITY  OR  SERVICE PAYMENTS SHALL NOT BE TREATED AS DEBT OF
 ANY PUBLIC ENTITY AND NO FINANCING  OF  A  DEVELOPMENT  ENTITY  WILL  BE
 CONSIDERED  DEBT  OF  ANY  PUBLIC  ENTITY  AND MUST BE NON-RECOURSE TO A
 PUBLIC ENTITY.
   7. IN THE EVENT OF TERMINATION OF A COMPREHENSIVE  OR  INTERIM  AGREE-
 MENT,  THE  AUTHORITY  AND DUTIES OF THE DEVELOPMENT ENTITY SHALL CEASE,
 EXCEPT FOR ANY DUTIES AND OBLIGATIONS THAT EXTEND BEYOND THE TERMINATION
 AS PROVIDED IN THE COMPREHENSIVE OR INTERIM AGREEMENT, AND THE  QUALIFY-
 ING  PUBLIC  INFRASTRUCTURE  REVERTS  TO  THE PUBLIC ENTITY AND SHALL BE
 DEDICATED TO THE PUBLIC ENTITY FOR PUBLIC USE.
   § 149-F. CONSTRUCTION. THE PROVISIONS OF THIS ARTICLE WHICH ARE INCON-
 SISTENT WITH ANY OTHER PROVISION OF STATE LAW SHALL BE DEEMED TO  SUPER-
 SEDE  SUCH PROVISION OF LAW, AND THE PROVISIONS OF THIS ARTICLE SHALL BE
 CONTROLLING.
   § 149-G. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID AND  AFTER  EXHAUSTION  OF  ALL  FURTHER  JUDICIAL
 REVIEW,  THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAIN-
 DER THEREOF, BUT SHALL BE CONFINED  IN  ITS  OPERATION  TO  THE  CLAUSE,
 SENTENCE,  PARAGRAPH,  SECTION OR PART OF THIS ARTICLE DIRECTLY INVOLVED
 IN THE CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN RENDERED.
   § 3. 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 DEVELOPMENT ENTITY FOR THE PURPOSES OF DEVELOPMENT OR OPERATION OF
 AN APPROVED PROJECT PURSUANT TO ARTICLE NINE-A OF THE STATE FINANCE LAW.
   § 4. Subdivision 1 of section 1680 of the public  authorities  law  is
 amended by adding a new undesignated paragraph to read as follows:
   ANY DEVELOPMENT ENTITY FOR THE PURPOSES OF DEVELOPMENT OR OPERATION OF
 AN APPROVED PROJECT PURSUANT TO ARTICLE NINE-A OF THE STATE FINANCE LAW.
   §  5.  The opening paragraph of section 10.00 of the local finance law
 is designated paragraph a and a new paragraph b  is  added  to  read  as
 follows:
   B.  A MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION SHALL HAVE
 THE POWER TO CONTRACT INDEBTEDNESS FOR THE PURPOSES OF IMPLEMENTING  THE
 PROVISIONS OF ARTICLE NINE-A OF THE STATE FINANCE LAW.
   § 6. This act shall take effect immediately.