S T A T E   O F   N E W   Y O R K
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                                  1046

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 22, 2009
                               ___________

Introduced  by  Sens. LAVALLE, ONORATO, PARKER, VOLKER -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Higher Education

AN  ACT to amend the education law, in relation to administrative flexi-
  bility of the state university construction fund and  the  development
  of university-related economic development facilities

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

  Section 1. The opening paragraph of subdivision 1 and subdivision 2 of
section 372-a of the education law, as added by chapter 624 of the  laws
of  1999  and  paragraph a of subdivision 2 as amended by chapter 609 of
the laws of 2003, are amended to read as follows:
  Notwithstanding subdivisions one through six and eight through ten  of
section  three  hundred  seventy-six  of this article, the provisions of
this section shall apply to the  fund  when  it  acts  pursuant  to  the
authorization  under this section. Pursuant to the authorization in this
section and approval by the trustees of the  university,  the  fund  may
acquire,  design,  construct, reconstruct, rehabilitate, improve, lease,
manage and/or operate university-related  economic  development  facili-
ties.  University-related  economic  development  facilities, as used in
this chapter, shall mean FACILITIES AUTHORIZED  BY  SUBDIVISION  TWO  OF
THIS  SECTION  WHICH  ARE  INTENDED TO SERVE THE UNIVERSITY COMMUNITY OR
facilities for research, development and commercial enterprises  dealing
in  products and/or services related to the mission or academic special-
ties of the campus  associated  with  such  facilities,  or  dealing  in
support  products  or  services  for  such enterprises which will have a
significant economic benefit. Consistent with  such  authorization,  the
state  university  trustees  are  authorized  to enter into contracts or
leases for lands and facilities authorized in subdivision  two  of  this
section.  Such  leases  or  contracts  shall  be  for  the  development,
construction,  and  operation  of   such   facilities   by   the   fund.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05388-01-9
              

S. 1046                             2

Construction, acquisition, rehabilitation, improvement, facilities oper-
ation  management,  mortgaging  with any private lender (including other
security or financing arrangements  incidental  or  related  thereto  or
customary in connection therewith, leasehold mortgaging or assignment of
rents)  leasing,  subleasing  of,  providing  services  for or otherwise
assisting or granting of easements, licenses or  other  arrangements  in
regard  to such facilities and underlying land may be provided from time
to time without public bidding or sale by such contracts or leases  (and
replacements,  modifications,  substitutions  and  renewals thereof) and
upon such terms as the trustees may approve provided, however, that:
  2. Subsequent to the approval of the trustees of the state university,
the following facilities are specifically and  expressly  authorized  by
law  [and]  SUBJECT  to  the  terms  and  conditions  set  forth herein;
PROVIDED, HOWEVER, THAT THE APPROVAL OF THE  TRUSTEES  SHALL  INCLUDE  A
DETERMINATION BASED UPON THE RECORD BEFORE THEM THAT SUCH AUTHORIZATION,
AND  THE  PARTICIPATION  OF THE FUND, WILL ENHANCE ECONOMIC DEVELOPMENT,
AND WILL NOT DISPLACE DEVELOPMENT BY THE PRIVATE SECTOR:
  a. FACILITIES TO BE CONSTRUCTED ON REAL PROPERTY WHICH IS:
  I. NOT PROPERTY OF THE STATE UNIVERSITY OF NEW YORK, OR
  II. LEASED OR ASSIGNED UNDER AUTHORITY OF ANOTHER STATUTE OF THE STATE
OF NEW YORK.
  B. Pharmaceutical technology/manufacturing building and an  affiliated
academic  incubator  at state university of New York college at Farming-
dale. The state university of New York is  authorized  to  establish  an
account   to   receive   payments  from  leases  of  the  pharmaceutical
technology/manufacturing building.  Any  payments  deposited  into  this
account  may  be transferred to the fund for payments related to design,
construction,  reconstruction,  rehabilitation  or  improvement  of  the
affiliated academic incubator authorized in this paragraph.
  S  2. Subdivision 6 of section 376 of the education law, as amended by
chapter 624 of the laws of 1999, is amended to read as follows:
  6. Each contract for the  construction,  acquisition,  reconstruction,
rehabilitation  or  improvement  of  academic buildings, dormitories and
other facilities shall  include  a  provision  that  the  architect  who
designed  the  facility,  or an architect or engineer, [or, for projects
authorized by section three hundred seventy-two-a  of  this  article]  a
construction  manager or other consultant, retained specifically for the
purpose of supervision, shall supervise the work to be performed through
to completion and shall see to it that the materials furnished  and  the
work  performed  are  in accordance with the drawings, plans, specifica-
tions and contract therefor.
  S 3. Section 376 of the education law  is  amended  by  adding  a  new
subdivision 11 to read as follows:
  11.  NOTWITHSTANDING  ANY  OTHER  LAW,  RULE  OR  REGULATION, UPON THE
APPROVAL OF THE TRUSTEES, THE  FUND  MAY  SOLICIT  PROPOSALS  AND  AWARD
CONTRACTS FOR DESIGN/BUILD PROJECTS TO AN ENTITY OR COMBINATION OF ENTI-
TIES ON A PROJECT SPECIFIC BASIS. SUCH ENTITY OR COMBINATION OF ENTITIES
SHALL BE SELECTED BY A COMPETITIVE PROCESS WHICH GIVES DUE CONSIDERATION
TO COST.  SUCH APPROVAL SHALL INCLUDE A JUSTIFICATION STATING THE FINAN-
CIAL  SCHEDULE  AND/OR  OTHER  BENEFITS  TO THE STATE UNIVERSITY AND THE
PUBLIC OVER TRADITIONAL COMPETITIVE BIDDING PROCEDURES. THE  FUND  SHALL
AWARD  SUCH  DESIGN/BUILD CONTRACTS IN ACCORDANCE WITH THE FUND'S GUIDE-
LINES FOR THE AWARD OF  PROCUREMENT  CONTRACTS  BASED  ON  A  CLEAR  AND
DETAILED  SCOPE  OF WORK. SUCH GUIDELINES SHALL BE SUBJECT TO REVIEW AND
APPROVAL BY THE STATE COMPTROLLER AND  SHALL  ESTABLISH  PROCEDURES  AND
CRITERIA  FOR PUBLIC ADVERTISEMENT, QUALIFICATION OF PROPOSERS AND AWARD

S. 1046                             3

FOR DESIGN/BUILD CONTRACTS. NO MORE THAN SEVEN PERCENT OF THE  VALUE  OF
THE  UNIVERSITY'S  CAPITAL  PROGRAM  SHALL BE SO EXPENDED UTILIZING THIS
METHOD; THE COST OF ANY PROJECT WITH RESPECT TO  WHICH  THE  LEGISLATURE
EXPRESSLY AUTHORIZES OR DIRECTS THIS METHOD SHALL NOT BE COUNTED AGAINST
THIS MAXIMUM. THE FUND SHALL ISSUE A REPORT ON OR BEFORE JUNE FIRST, TWO
THOUSAND  ELEVEN TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE,
THE SPEAKER OF THE ASSEMBLY, THE DIRECTOR OF THE BUDGET AND  THE  CHAIRS
OF  THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMIT-
TEE. THIS SUBDIVISION SHALL EXPIRE AND BE DEEMED REPEALED JUNE ONE,  TWO
THOUSAND THIRTEEN.
  S 4. This act shall take effect immediately.