S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6150
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 3, 2023
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Education
 
 AN ACT to amend the state finance law and the public authorities law, in
   relation to establishing the New York state education equity fund  and
   authorizing the dormitory authority of the state of New York to invest
   to cover capital costs for the construction and improvements of public
   charter schools
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding section 99-qq to
 read as follows:
   § 99-QQ. NEW YORK STATE EDUCATION EQUITY  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "NEW YORK
 STATE EDUCATION EQUITY FUND". SUCH FUND MAY BE KNOWN AND  CITED  AS  THE
 "EDUCATION EQUITY FUND".
   2. AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE
 THE  FOLLOWING  MEANINGS, UNLESS A DIFFERENT MEANING IS PLAINLY REQUIRED
 BY THE CONTEXT:
   (A) "APPLICANT" SHALL MEAN  AN  EDUCATION  CORPORATION,  APPLYING  FOR
 FINANCING OF CAPITAL COSTS PURSUANT TO THIS SECTION.
   (B) "AUTHORITY" SHALL MEAN THE DORMITORY AUTHORITY OF THE STATE OF NEW
 YORK.
   (C)  "CAPITAL  COSTS" SHALL MEAN COSTS ASSOCIATED WITH ESTABLISHING OR
 OPERATING EDUCATION CORPORATION FACILITIES INCLUDING,  BUT  NOT  LIMITED
 TO, ALL COSTS, INCLUDING CLOSELY RELATED ANCILLARY COSTS, RELATED TO THE
 FINANCING,  REFINANCING, LEASING, PLANNING, DESIGN, CONSTRUCTION, RECON-
 STRUCTION, REHABILITATION, IMPROVEMENT, AND EQUIPPING OF  FACILITIES  TO
 BE LEASED OR OWNED BY EDUCATION CORPORATIONS.
   (D)  "EDUCATION  CORPORATION"  SHALL  MEAN  A CHARTER SCHOOL EDUCATION
 CORPORATION FORMED PURSUANT TO ARTICLE FIFTY-SIX OF THE  EDUCATION  LAW,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10309-01-3
              

 A. 6150                             2
 
 WHICH  IS  NOT IN PROBATIONARY STATUS, DOES NOT HAVE AN EXPIRED CHARTER,
 WHOSE CHARTER HAS NOT BEEN NON-RENEWED, OR WHOSE CHARTER  HAS  NOT  BEEN
 REVOKED.
   (E)  "EDUCATION  EQUITY  FUND" SHALL MEAN THE NEW YORK STATE EDUCATION
 EQUITY FUND AUTHORIZED TO BE ESTABLISHED PURSUANT TO THIS SECTION.
   (F) "LOW EDUCATIONAL OUTCOMES" SHALL MEAN RACIAL DISPARITIES IN EDUCA-
 TIONAL OUTCOMES, LOW KINDERGARTEN THROUGH GRADE TWELVE ACADEMIC ACHIEVE-
 MENT, LOW HIGH SCHOOL  GRADUATION  RATES,  OR  LOW  COLLEGE  ATTENDANCE,
 PERSISTENCE, AND GRADUATION RATES AS DEMONSTRATED BY DATA AVAILABLE FROM
 THE STATE EDUCATION DEPARTMENT OR UNITED STATES DEPARTMENT OF EDUCATION.
   (G)  "MINORITY-LED  EDUCATION  CORPORATION"  SHALL  MEAN  AN EDUCATION
 CORPORATION:
   (I) GOVERNED BY A BOARD  OF  TRUSTEES  OF  WHICH  AT  LEAST  FIFTY-ONE
 PERCENT OF THE TRUSTEES ARE MINORITY GROUP MEMBERS; AND
   (II)  THE  HIGHEST RANKING OFFICER OR EMPLOYEE OF THE EDUCATION CORPO-
 RATION IS A MINORITY GROUP MEMBER.
   (H) "MINORITY GROUP MEMBER" SHALL MEAN  A  UNITED  STATES  CITIZEN  OR
 PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
 THE FOLLOWING GROUPS:
   (I)  BLACK  PERSONS  HAVING ORIGINS IN ANY OF THE BLACK AFRICAN RACIAL
 GROUPS;
   (II) HISPANIC PERSONS OF MEXICAN, PUERTO RICAN, DOMINICAN,  CARIBBEAN,
 CUBAN,  CENTRAL  OR SOUTH AMERICAN OF EITHER NATIVE AMERICAN OR HISPANIC
 ORIGIN, REGARDLESS OF RACE;
   (III) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN  ANY
 OF THE ORIGINAL PEOPLES OF NORTH AMERICA; OR
   (IV)  ASIAN  AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
 FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
 PACIFIC ISLANDS.
   (I)  "PRIVATE DEBT OR EQUITY FUND" SHALL MEAN A PRIVATE DEBT OR EQUITY
 FUND FORMED PURSUANT  TO  SUBDIVISION  THIRTY-FIVE  OF  SECTION  SIXTEEN
 HUNDRED SEVENTY-EIGHT OF THE PUBLIC AUTHORITIES LAW.
   (J)  "NOT-FOR-PROFIT  LOAN  FUND"  SHALL  MEAN A NOT-FOR-PROFIT ENTITY
 EXEMPT FROM TAXATION PURSUANT TO SECTION 501(C)(3) OF THE UNITED  STATES
 INTERNAL  REVENUE  CODE OF 1986, AUTHORIZED TO DO BUSINESS IN THE STATE,
 AND WHICH CAN DEMONSTRATE THE ABILITY TO PROVIDE  PRIVATE  FUNDS  IN  AN
 AMOUNT EQUAL TO OR GREATER THAN THE AMOUNT OF ANY GRANT OR LOAN RECEIVED
 FROM  THE EDUCATION EQUITY FUND TO BE USED FOR THE SAME PURPOSES AS SUCH
 GRANT OR LOAN ESTABLISHED WITH A MISSION  TO  SUPPORT  EDUCATION  CORPO-
 RATIONS.
   3.  SUCH  FUND  SHALL CONSIST OF ALL MONEYS MADE AVAILABLE PURSUANT TO
 APPROPRIATION AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO  FROM
 ANY  OTHER  FUND  OR  SOURCE,  INCLUDING PAYMENTS ON LOANS MADE FROM THE
 FUND. NOTHING CONTAINED IN THIS SECTION SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
 LAW.
   4.  (A)  THE  MONEYS  IN SUCH FUND SHALL BE EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (I) ACTUAL AND NECESSARY COSTS INCURRED BY THE DORMITORY AUTHORITY  OF
 THE  STATE  OF  NEW  YORK  RELATED TO IMPLEMENTING AND ADMINISTERING THE
 FUND.
   (II) SUBJECT TO AVAILABLE APPROPRIATIONS AND PROVIDING  THAT  NO  MORE
 THAN  SEVENTY-FIVE  MILLION  DOLLARS IN FUNDING SHALL BE MADE AVAILABLE,
 WHETHER DIRECTLY OR INDIRECTLY, FOR INVESTMENT  IN  A  PRIVATE  DEBT  OR
 EQUITY  FUND  FORMED  PURSUANT  TO  SUBDIVISION  THIRTY-FIVE  OF SECTION
 A. 6150                             3
 
 SIXTEEN HUNDRED SEVENTY-EIGHT OF THE PUBLIC  AUTHORITIES  LAW  OR  IN  A
 NOT-FOR-PROFIT  LOAN  FUND TO COVER CAPITAL COSTS ASSOCIATED WITH ESTAB-
 LISHING OR OPERATING PUBLIC CHARTER SCHOOL FACILITIES PURSUANT  TO  THIS
 SECTION.  ADDITIONALLY,  NO  MORE  THAN  ONE HUNDRED TWENTY-FIVE MILLION
 DOLLARS SHALL BE MADE AVAILABLE FOR DIRECT GRANTS TO ELIGIBLE APPLICANTS
 TO COVER CAPITAL COSTS ASSOCIATED WITH ESTABLISHING OR OPERATING  PUBLIC
 CHARTER  SCHOOL  FACILITIES PURSUANT TO THIS SECTION. SUCH CAPITAL COSTS
 SHALL INCLUDE ALL COSTS,  INCLUDING  CLOSELY  RELATED  ANCILLARY  COSTS,
 RELATED  TO  THE  FINANCING,  REFINANCING,  LEASING,  PLANNING,  DESIGN,
 CONSTRUCTION, RECONSTRUCTION, REHABILITATION,  IMPROVEMENT,  FURNISHING,
 AND  EQUIPPING  OF  SUCH PUBLIC CHARTER SCHOOL FACILITIES, TO THE EXTENT
 SUCH WORK HAS BEEN UNDERTAKEN OR COSTS FOR SUCH WORK HAS BEEN OR WILL BE
 INCURRED BY:
   (A) ELIGIBLE CHARTER SCHOOLS OR EDUCATION CORPORATIONS;
   (B) THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR  ANY  SUBSID-
 IARY  THEREOF,  UNDER  AGREEMENT  WITH  THE  PRIVATE DEBT OR EQUITY FUND
 FORMED PURSUANT TO SUBDIVISION THIRTY-FIVE OF  SECTION  SIXTEEN  HUNDRED
 SEVENTY-EIGHT OF THE PUBLIC AUTHORITIES LAW OR NOT-FOR-PROFIT LOAN FUND;
 OR
   (C) THE PRIVATE DEBT OR EQUITY FUND OR NOT-FOR-PROFIT LOAN FUND FORMED
 PURSUANT  TO SUBDIVISION THIRTY-FIVE OF SECTION SIXTEEN HUNDRED SEVENTY-
 EIGHT OF THE PUBLIC AUTHORITIES LAW.
   (B) ANY REPAYMENT OF THE STATE'S INVESTMENT BY THE FUND, AS AUTHORIZED
 IN THIS SECTION SHALL BE DEPOSITED IN THE EDUCATION EQUITY FUND.
   5. THE ORGANIZATIONAL STRUCTURE AND INVESTMENT POLICY OF THE DORMITORY
 AUTHORITY OF THE STATE OF NEW YORK, OR ANY SUBSIDIARY THEREOF,  NOT-FOR-
 PROFIT  LOAN  FUND,  OR  PRIVATE  DEBT  OR  EQUITY FUND OF FUNDS AND THE
 PROVISIONS OF THE GRANT OR LOAN AGREEMENT OR AGREEMENTS  SHALL  SATISFY,
 BUT NOT BE LIMITED TO, THE FOLLOWING PARAMETERS AND REQUIREMENTS:
   (A)  THE  DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR ANY SUBSID-
 IARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR  EQUITY  FUND
 OR  FUNDS  SHALL  NOT CHARGE AN EDUCATION CORPORATION A FEE TO APPLY FOR
 CAPITAL COST FINANCING.
   (B) A DESCRIPTION OF HOW THE DORMITORY AUTHORITY OF THE STATE  OF  NEW
 YORK,  OR  ANY  SUBSIDIARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE
 DEBT OR EQUITY FUND OR  FUNDS  WILL  PREFERENCE  MINORITY-LED  EDUCATION
 CORPORATION  APPLICANTS  AND  HOW  SUCH APPLICANTS WILL BE ENCOURAGED TO
 APPLY FOR CAPITAL COST FINANCING.
   (C) A DESCRIPTION OF HOW THE DORMITORY AUTHORITY OF THE STATE  OF  NEW
 YORK,  OR  ANY  SUBSIDIARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE
 DEBT OR EQUITY FUND OR FUNDS WILL ACTIVELY PROMOTE:  (I) APPLICANTS FROM
 COMMUNITIES DISPROPORTIONATELY IMPACTED BY RACIAL DISPARITIES IN  EDUCA-
 TIONAL OUTCOMES, LOW EDUCATIONAL OUTCOMES, OR HIGH RATES OF ECONOMICALLY
 DISADVANTAGED  STUDENTS;  AND  (II)  RACIAL  AND ETHNIC DIVERSITY IN ITS
 FINANCING DECISIONS.
   (D) A FINANCING EQUITY PLAN TO PROMOTE DIVERSITY IN COMMERCE,  EMPLOY-
 MENT, AND OPPORTUNITIES FOR EDUCATION EQUITY IN THE COMMUNITIES IN WHICH
 EDUCATION CORPORATION FACILITIES ARE LOCATED, WHICH PLAN SHALL ESTABLISH
 A GOAL TO AWARD SIXTY PERCENT OF THE FUNDING AWARDED OR SIXTY PERCENT OF
 THE  AWARDEES SELECTED EACH FISCAL YEAR, WHICHEVER IS GREATER, TO APPLI-
 CATIONS THAT DEMONSTRATE THAT AN APPLICANT:
   (I) IS AN EDUCATION CORPORATION LOCATED IN, OR  SERVING  PREDOMINATELY
 STUDENTS  WHO ARE MEMBERS OF, A COMMUNITY DISPROPORTIONATELY IMPACTED BY
 RACIAL DISPARITIES IN EDUCATIONAL OUTCOMES, LOW EDUCATIONAL OUTCOMES, OR
 HIGH RATES OF ECONOMICALLY DISADVANTAGED STUDENTS; AND
 A. 6150                             4
 
   (II) IS A MINORITY-LED EDUCATION CORPORATION OR WILL DIRECTLY  BENEFIT
 A MINORITY-LED EDUCATION CORPORATION; AND
   (III) OPERATES OR MANAGES OR WILL OPERATE OR MANAGE TEN OR FEWER CHAR-
 TER SCHOOLS, PROVIDED HOWEVER, THAT APPLICANTS THAT OPERATE OR MANAGE OR
 WILL  OPERATE  OR  MANAGE  MORE  THAN THREE SCHOOLS ARE NOT ELIGIBLE FOR
 GRANT FUNDING.
   (E) THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR  ANY  SUBSID-
 IARY  THEREOF,  NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND
 OR FUNDS SHALL ACTIVELY ENCOURAGE  APPLICANTS  THAT  FOSTER  RACIAL  AND
 ETHNIC DIVERSITY IN THEIR WORKFORCE.
   (F) A GENERAL DESCRIPTION OF THE OTHER CRITERIA THE DORMITORY AUTHORI-
 TY  OF  THE STATE OF NEW YORK, OR ANY SUBSIDIARY THEREOF, NOT-FOR-PROFIT
 LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR FUNDS WILL  USE  IN  MAKING
 APPLICANT FINANCING DETERMINATIONS.
   (G)  THE  DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR ANY SUBSID-
 IARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR  EQUITY  FUND
 OR FUNDS' INVESTMENT POLICY STATEMENT.
   (H)  THE  DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR ANY SUBSID-
 IARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR  EQUITY  FUND
 OR  FUNDS  STRATEGIC  PLAN INCLUDING INVESTOR CLASSES AND THE ESTABLISH-
 MENT, MANAGEMENT, AND LIQUIDATION OF INVESTMENTS BY THE FUND.
   (I) A PLAN BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK TO:
   (I) MONITOR THE SUBSIDIARY OF THE DORMITORY AUTHORITY OF THE STATE  OF
 NEW  YORK,  NOT-FOR-PROFIT  LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR
 FUNDS' RISK PROFILE, INVESTMENT ACTIVITY,  AND  PERFORMANCE,  WHICH  THE
 SUBSIDIARY OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK, NOT-FOR-
 PROFIT  LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR FUNDS SHALL PROVIDE
 ON AN AGREED UPON SCHEDULE; AND
   (II) CONFIRM THAT ANY REAL PROPERTY LEASES, LOAN AGREEMENTS, AND OTHER
 FINANCING ARRANGEMENT USING EDUCATIONAL EQUITY FUND PROCEEDS  ARE  BEING
 PROVIDED  TO  QUALIFIED  EDUCATION  CORPORATIONS IN ACCORDANCE WITH THIS
 SUBDIVISION.
   (J) A DESCRIPTION OF THE MAXIMUM AMOUNT OF PROMISED RETURN ON  INVEST-
 MENT, FINANCING, OR MANAGEMENT FEES OR CHARGES OF THE DORMITORY AUTHORI-
 TY  OF  THE STATE OF NEW YORK, OR ANY SUBSIDIARY THEREOF, NOT-FOR-PROFIT
 LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR FUNDS TO BE PAID BY  EDUCA-
 TION  CORPORATIONS,  AND ANY OTHER COMPENSATION OF THE SUBSIDIARY OF THE
 DORMITORY AUTHORITY OF THE STATE OF NEW YORK, NOT-FOR-PROFIT LOAN  FUND,
 OR  PRIVATE  DEBT OR EQUITY FUND OR FUNDS, WHICH MUST BE REASONABLE WHEN
 COMPARED TO SIMILAR SCHOOL FINANCING FEES OR CHARGES.
   (K) AN ANNUAL ACCOUNTING OF THE PRIVATE FUNDS INVESTED OR EXPENDED  BY
 THE  DORMITORY  AUTHORITY  OF  THE  STATE OF NEW YORK, OR ANY SUBSIDIARY
 THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT  OR  EQUITY  FUND  OR
 FUNDS,  WHICH,  BY  THE  END  OF THE EDUCATION EQUITY FUND GRANT OR LOAN
 TERM, SHALL BE EQUAL TO OR GREATER THAN THE AMOUNT OF SAID GRANT OR LOAN
 RECEIVED.
   (L) THE SUBSIDIARY OF THE DORMITORY AUTHORITY  OF  THE  STATE  OF  NEW
 YORK,  NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR FUNDS
 SHALL REPORT TO THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK CHANGES
 TO THE USE AND DISTRIBUTION OF INVESTMENT FUNDS, AND ITS  ORGANIZATIONAL
 STRUCTURE OR MANAGEMENT ON A QUARTERLY BASIS.
   (M)  THE  DORMITORY AUTHORITY OF THE STATE OF NEW YORK, OR ANY SUBSID-
 IARY THEREOF, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR  EQUITY  FUND
 OR  FUNDS  MUST  TAKE REASONABLE STEPS, TO PROVIDE GEOGRAPHIC EQUITY AND
 REPRESENTATION IN FINANCING CHARTER SCHOOL  FACILITIES,  TO  THE  EXTENT
 A. 6150                             5
 
 PRACTICABLE,  IN SUPPORT OF THE PUBLIC PURPOSE OF THE EDUCATIONAL EQUITY
 FUND.
   (N)  THE  SUBSIDIARY  OF  THE  DORMITORY AUTHORITY OF THE STATE OF NEW
 YORK, NOT-FOR-PROFIT LOAN FUND, OR PRIVATE DEBT OR EQUITY FUND OR FUNDS'
 CONFLICT OF INTEREST POLICY WITH RESPECT TO GRANTS, INVESTMENTS OR LOANS
 OF FUND MONEY.
   6. THE DORMITORY AUTHORITY OF THE STATE OF  NEW  YORK,  IN  ACCORDANCE
 WITH THE PROVISIONS OF THIS SECTION AND IN CONSULTATION WITH THE COMMIS-
 SIONER OF EDUCATION, CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, NEW
 YORK  CITY  CHANCELLOR OF EDUCATION, THE PRESIDENT OF THE URBAN DEVELOP-
 MENT CORPORATION, THE BUDGET DIRECTOR, AND THE STATE COMPTROLLER,  SHALL
 PROMULGATE RULES AND REGULATIONS FOR THE IMPLEMENTATION, ADMINISTRATION,
 AND  OPERATION  OF  THE EDUCATION EQUITY FUND, INCLUDING BUT NOT LIMITED
 TO:
   (A) THE ELIGIBILITY OF APPLICANTS FOR  FINANCING  FROM  THE  EDUCATION
 EQUITY  FUND,  INCLUDING EXCLUDING APPLICANTS WITH OUTSTANDING LOANS FOR
 WHICH PAYMENTS ARE  IN  ARREARS;  PROVIDED,  HOWEVER,  NOTHING  IN  THIS
 SECTION  SHALL BE CONSTRUED TO REQUIRE THE AUTHORITY TO ALLOW APPLICANTS
 WITH EXISTING LOANS TO APPLY FOR ADDITIONAL LOANS;
   (B) PROMOTING EQUITY AND RACIAL AND ETHNIC DIVERSITY BY, INCLUDING BUT
 NOT LIMITED TO ESTABLISHING A GOAL TO AWARD SIXTY PERCENT OF THE FUNDING
 AWARDED OR SIXTY PERCENT OF THE  AWARDEES  SELECTED  EACH  FISCAL  YEAR,
 WHICHEVER  IS  GREATER,  TO APPLICATIONS THAT DEMONSTRATE THAT AN APPLI-
 CANT:
   (I) IS AN EDUCATION CORPORATION LOCATED IN, OR  SERVING  PREDOMINATELY
 STUDENTS  WHO ARE MEMBERS OF, A COMMUNITY DISPROPORTIONATELY IMPACTED BY
 RACIAL DISPARITIES IN EDUCATIONAL OUTCOMES, LOW EDUCATIONAL OUTCOMES, OR
 HIGH RATES OF ECONOMICALLY DISADVANTAGED STUDENTS; AND
   (II) IS A MINORITY-LED EDUCATION CORPORATION OR WILL DIRECTLY  BENEFIT
 A MINORITY-LED EDUCATION CORPORATION; AND
   (III) OPERATES OR MANAGES OR WILL OPERATE OR MANAGE TEN OR FEWER CHAR-
 TER SCHOOLS AND ENCOURAGING SUCH APPLICANTS TO APPLY FOR FINANCING;
   (C) MINIMUM AND MAXIMUM FINANCING LIMITS; AND
   (D)  THE  PROCEDURE  AND INFORMATION NECESSARY FOR SUBMISSION, ACCEPT-
 ANCE, REVIEW, AND COMMUNICATION OF DETERMINATIONS OF APPLICATIONS.
   7. IN THE EVENT AN APPLICANT SEEKS TO TRANSFER OR SELL FACILITIES TO A
 PERSON OR ENTITY THAT DOES NOT QUALIFY AS  AN  APPLICANT,  THE  TRANSFER
 AGREEMENT  SHALL  REQUIRE  THE  NEW OWNER TO PAY TO THE EDUCATION EQUITY
 FUND ANY OUTSTANDING AMOUNT OWED BY THE TRANSFEROR TO THE EQUITY  EDUCA-
 TION  FUND,  PRIVATE DEBT OR EQUITY FUND, OR NOT-FOR-PROFIT LOAN FUND AS
 REPAYMENT OF ANY LOAN ISSUED BY THE FUND AS WELL AS  ANY  OTHER  FEE  OR
 ASSESSMENT  AS DETERMINED BY THE DORMITORY AUTHORITY OF THE STATE OF NEW
 YORK, OR ANY SUBSIDIARY THEREOF, PRIVATE DEBT OR EQUITY  FUND,  OR  NOT-
 FOR-PROFIT  LOAN  FUND.  SALES OR TRANSFERS ARE NOT PERMITTED WITHIN TEN
 YEARS OF THE AWARD UNLESS THE EDUCATION CORPORATION'S CHARTER  FOR  SUCH
 FACILITY IS SURRENDERED, REVOKED OR TERMINATED.
   8. ANY LAW, RULE, OR REGULATION CONFLICTING WITH ANY PROVISION OF THIS
 SECTION IS, TO THE EXTENT OF SAID CONFLICT ONLY, DEEMED TO BE SUPERSEDED
 BY THE PROVISIONS OF THIS SECTION.
   9.  UPON  THE  DORMITORY  AUTHORITY  OF  THE STATE OF NEW YORK, OR ANY
 SUBSIDIARY THEREOF, PROVIDING  ANY  GRANT  OR  LOAN  TO  ANY  APPLICANT,
 SUBSIDIARY OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK, NOT-FOR-
 LOAN  FUND,  OR  PRIVATE  DEBT  OR EQUITY FUND OR FUNDS PURSUANT TO THIS
 SECTION, THE AUTHORITY SHALL  PREPARE  AN  ANNUAL  REPORT  BEGINNING  ON
 DECEMBER THIRTIETH THE FIRST YEAR OF FUNDING AND ANNUALLY THEREAFTER, AS
 A. 6150                             6
 
 REQUIRED BY SECTION SIXTEEN HUNDRED SEVENTY-EIGHT OF THE PUBLIC AUTHORI-
 TIES LAW.
   10.  CONSISTENT WITH THE STATE CONSTITUTION, THE COMPTROLLER MAY AUDIT
 THE EXPENDITURE OF MONIES FROM THE FUND AND  ANY  ACCOUNT  HOLDING  SUCH
 MONIES.
   11.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO IMPOSE ANY LIABIL-
 ITIES, OBLIGATIONS, OR RESPONSIBILITIES OF SUCH PRIVATE DEBT  OR  EQUITY
 FUND  UPON  THE  DORMITORY  AUTHORITY  OF  THE STATE OF NEW YORK AND THE
 AUTHORITY SHALL HAVE NO LIABILITY OR RESPONSIBILITY THEREFOR UNLESS  THE
 AUTHORITY EXPRESSLY AGREES TO ASSUME THE SAME.
   §  2.  Section 1678 of the public authorities law is amended by adding
 four new subdivisions 33, 34, 35 and 36 to read as follows:
   33. TO ENTER INTO ONE OR MORE AGREEMENTS  WITH  THE  PRIVATE  DEBT  OR
 EQUITY  FUND  OR NOT-FOR-PROFIT LOAN FUND, SELECTED PURSUANT TO SUBDIVI-
 SION THIRTY-FIVE OF THIS SECTION, IN WHICH THE STATE OR ANY STATE  AGEN-
 CY,  PUBLIC  AUTHORITY,  PUBLIC BENEFIT CORPORATION, OR DIVISION THEREOF
 HAS INVESTED AND IS FORMED FOR THE LIMITED PURPOSE OF FUNDING THE  CAPI-
 TAL  COSTS  ASSOCIATED  WITH  ESTABLISHING  OR  OPERATING PUBLIC CHARTER
 SCHOOL FACILITIES  PURSUANT  TO  SECTION  NINETY-NINE-QQ  OF  THE  STATE
 FINANCE LAW, FOR THE FOLLOWING PURPOSES:
   (A)  (I)  TO  ACQUIRE  BY  LEASE OR SUBLEASE SUCH REAL PROPERTY OR ANY
 INTEREST THEREIN AS MAY BE NECESSARY OR CONVENIENT FOR THE CONSTRUCTION,
 RECONSTRUCTION, REHABILITATION, OR IMPROVEMENT OF PUBLIC CHARTER  SCHOOL
 FACILITIES, AND
   (II)  TO  ACQUIRE BY PURCHASE OR OTHER AGREEMENT, PERSONAL PROPERTY OR
 INTEREST THEREIN AS MAY BE NECESSARY FOR THE ACQUISITION,  CONSTRUCTION,
 RECONSTRUCTION, REHABILITATION, IMPROVEMENT OR PROVISION OF SUCH DISPEN-
 SARIES, WHETHER AS PRINCIPAL OR AGENT;
   (B) TO PREPARE OR CAUSE TO BE PREPARED, WHETHER AS PRINCIPAL OR AGENT,
 PLANS,  SPECIFICATIONS,  DESIGNS, AND ESTIMATES OF COSTS FOR THE DESIGN,
 CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT, FURNISHING OR
 EQUIPPING OF PUBLIC CHARTER SCHOOL FACILITIES;
   (C) TO DESIGN, CONSTRUCT, RECONSTRUCT, REHABILITATE, OR TO  CAUSE  THE
 DESIGN, CONSTRUCTION, REHABILITATION OR IMPROVEMENT OF, WHETHER AS PRIN-
 CIPAL  OR  AGENT,  PUBLIC  CHARTER  SCHOOL  FACILITIES AND TO ENTER INTO
 CONTRACTS TO CAUSE SUCH FACILITIES TO BE DESIGNED,  CONSTRUCTED,  RECON-
 STRUCTED, REHABILITATED, IMPROVED, FURNISHED, OR EQUIPPED;
   (D)  TO  ENTER,  AS  LESSOR  OR  AS AGENT FOR THE LESSOR, INTO LEASES,
 SUBLEASES, OR OTHER AGREEMENTS WITH THE PUBLIC CHARTER SCHOOLS; PROVIDED
 THAT THE AUTHORITY SHALL ONLY ENTER IN LEASE AGREEMENTS AS AGENT OF  THE
 PRIVATE DEBT OR EQUITY FUND OR NOT-FOR-PROFIT LOAN FUND, SELECTED PURSU-
 ANT TO SUBDIVISION THIRTY-FIVE OF THIS SECTION; AND
   (E) TO ENTER, AS LENDER OR AS AGENT TO THE LENDER, INTO A NON-RECOURSE
 LOAN  OR OTHER AGREEMENTS WITH PUBLIC CHARTER SCHOOLS, PROVIDED THAT THE
 TERMS OF THE NON-RECOURSE LOAN AGREEMENT DO NOT INCLUDE  A  PENALTY  FOR
 EARLY  TERMINATION  BUT  WILL  ALLOW  FOR  THE INCLUSION OF A MAKE-WHOLE
 PROVISION AND SHALL NOT, AT THE TIME THE LOAN IS ESTABLISHED, EXCEED THE
 PRIME LENDING RATE PLUS  ONE-HALF  THE  INTEREST  RATE  SPECIFIED  UNDER
 SUBDIVISION  ONE  OF  SECTION FOURTEEN-A OF THE BANKING LAW, NOR INCLUDE
 TERMS OR CONDITIONS THAT WOULD ENTITLE A SHARE  IN,  OR  CLAIM  TO,  ANY
 CHARTER  SCHOOL  TUITION PURSUANT TO SECTION TWENTY-EIGHT HUNDRED FIFTY-
 SIX OF THE EDUCATION LAW.
   34. (A) TO FORM ONE OR MORE SUBSIDIARIES FOR THE PURPOSE  OF  LIMITING
 THE  POTENTIAL LIABILITY OF THE AUTHORITY WHEN EXERCISING THE POWERS AND
 DUTIES CONFERRED UPON THE AUTHORITY BY SUBDIVISION THIRTY-THREE OF  THIS
 SECTION  IN  CONNECTION  WITH  CERTAIN  WORK  PERFORMED ON BEHALF OF THE
 A. 6150                             7
 
 PRIVATE DEBT OR EQUITY FUND OR NOT-FOR-PROFIT LOAN FUND  AS  DEFINED  IN
 SECTION  NINETY-NINE-QQ  OF THE STATE FINANCE LAW, IN WHICH THE STATE OR
 ANY STATE AGENCY, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR DIVI-
 SION  THEREOF HAS INVESTED AND HAS BEEN SELECTED PURSUANT TO SUBDIVISION
 THIRTY-FIVE OF THIS SECTION. SUCH SUBSIDIARY CREATED  PURSUANT  TO  THIS
 SUBDIVISION  MAY  EXERCISE  AND  PERFORM  ONE  OR  MORE OF THE PURPOSES,
 POWERS, DUTIES, FUNCTIONS, RIGHTS AND RESPONSIBILITIES OF THE  AUTHORITY
 OTHER  THAN  THE  ISSUANCE  OF INDEBTEDNESS, IN CONNECTION WITH REAL AND
 PERSONAL PROPERTY WITH RESPECT TO WHICH THE AUTHORITY HOLDS TITLE  OR  A
 LEASEHOLD  INTEREST,  IN ITS OWN NAME OR AS AGENT FOR THE TITLEHOLDER OR
 LEASEHOLDER INCLUDING, BUT NOT LIMITED TO:
   (I) ENTERING INTO LEASES, SUBLEASES, OR OTHER ARRANGEMENTS WITH REGARD
 TO SUCH PROPERTY AND ACTING IN A  MANNER  CONSISTENT  WITH  THE  RIGHTS,
 OBLIGATIONS OR RESPONSIBILITIES OF THE OWNER, LANDLORD OR TENANT OF SUCH
 PROPERTY PURSUANT TO SUCH LEASE OR SUBLEASE AGREEMENTS;
   (II) SERVICING NON-RECOURSE LOAN PAYMENTS;
   (III) FURNISHING PROPERTY MANAGEMENT SERVICES; AND
   (IV)   PROVIDING   GENERAL   OPERATIONAL  AND  ADMINISTRATIVE  SUPPORT
 SERVICES.
   (B) SUCH SUBSIDIARY AUTHORIZED BY PARAGRAPH (A)  OF  THIS  SUBDIVISION
 SHALL  BE  ESTABLISHED  IN  THE  FORM OF A PUBLIC BENEFIT CORPORATION BY
 EXECUTING AND FILING WITH THE SECRETARY OF STATE A CERTIFICATE OF INCOR-
 PORATION WHICH SHALL IDENTIFY THE AUTHORITY  AS  THE  ENTITY  ORGANIZING
 SUCH SUBSIDIARY AND SET FORTH THE NAME OF SUCH SUBSIDIARY PUBLIC BENEFIT
 CORPORATION,  ITS DURATION, THE LOCATION OF ITS PRINCIPAL OFFICE AND ITS
 CORPORATE PURPOSES AS PROVIDED IN THIS SUBDIVISION AND WHICH CERTIFICATE
 MAY BE AMENDED FROM TIME TO TIME BY THE  FILING  OF  AMENDMENTS  THERETO
 WITH  THE  SECRETARY  OF  STATE. SUCH SUBSIDIARY SHALL BE ORGANIZED AS A
 PUBLIC BENEFIT CORPORATION, SHALL BE A BODY POLITIC AND  CORPORATE,  AND
 SHALL  HAVE  ALL  THE  PRIVILEGES,  IMMUNITIES, TAX EXEMPTIONS AND OTHER
 EXEMPTIONS OF THE AUTHORITY. THE MEMBERS OF SUCH SUBSIDIARY SHALL BE THE
 SAME AS THE MEMBERS OF THE AUTHORITY AND THE PROVISIONS  OF  SUBDIVISION
 TWO  OF  SECTION  SIXTEEN  HUNDRED NINETY-ONE OF THIS TITLE SHALL IN ALL
 RESPECTS APPLY TO SUCH MEMBERS WHEN ACTING IN SUCH CAPACITY.
   (C) NOTHING IN THIS SUBDIVISION  SHALL  BE  CONSTRUED  TO  IMPOSE  ANY
 LIABILITIES,  OBLIGATIONS,  OR  RESPONSIBILITIES OF SUCH SUBSIDIARY UPON
 THE AUTHORITY AND THE AUTHORITY SHALL HAVE NO LIABILITY OR  RESPONSIBIL-
 ITY THEREFOR UNLESS THE AUTHORITY EXPRESSLY AGREES TO ASSUME THE SAME.
   (D)  SUCH  SUBSIDIARY  CREATED  PURSUANT  TO THIS SUBDIVISION SHALL BE
 SUBJECT TO ANY OTHER PROVISION OF THIS  CHAPTER  PERTAINING  TO  SUBSID-
 IARIES OF PUBLIC AUTHORITIES.
   35.  (A) (I) TO SELECT A PRIVATE DEBT OR EQUITY FUND OR A NOT-FOR-PRO-
 FIT LOAN FUND, FORMED FOR THE SOLE PURPOSE OF FUNDING THE CAPITAL COSTS,
 INCLUDING CLOSELY RELATED ANCILLARY AND ADMINISTRATIVE COSTS, ASSOCIATED
 WITH ESTABLISHING OR OPERATING PUBLIC CHARTER SCHOOL FACILITIES PURSUANT
 TO SECTION NINETY-NINE-QQ OF THE STATE FINANCE LAW DEEMED TO BE ELIGIBLE
 BY THE FUND AND THE AUTHORITY FOR FINANCING THROUGH SUCH FUND OR RELATED
 COSTS, PROVIDED THAT ANY PARTNERSHIP AGREEMENT BETWEEN THE FUND AND  THE
 AUTHORITY, SHALL BE SUBJECT TO THE WRITTEN APPROVAL OR RESOLUTION OF THE
 BOARD  OF  THE  DORMITORY AUTHORITY, AND THE DIRECTOR OF THE DIVISION OF
 THE BUDGET;
   (II)  THE  ORGANIZATIONAL  STRUCTURE  AND  INVESTMENT  POLICY  OF  THE
 SELECTED  FUND  AND  THE  PROVISIONS  OF THE PARTNERSHIP AGREEMENT SHALL
 SATISFY THE FOLLOWING PARAMETERS AND REQUIREMENTS:
   (A) THE GENERAL PARTNER AND THE FUND SHALL TO THE EXTENT ALLOWABLE  BY
 SECTION  ONE  OF  ARTICLE  FIVE OF THE STATE CONSTITUTION, AUTHORIZE THE
 A. 6150                             8
 
 COMPTROLLER OF THE STATE, OR THE COMPTROLLER'S LEGALLY AUTHORIZED REPRE-
 SENTATIVES, TO ACCESS, EXAMINE, OR AUDIT THE ACCOUNTS AND BOOKS  OF  THE
 FUND  INCLUDING ITS RECEIPTS, DISBURSEMENTS, CONTRACTS, INVESTMENTS, AND
 ANY  OTHER ITEMS DIRECTLY RELATING TO ITS FINANCIAL STANDING AND COOPER-
 ATE WITH ANY SUCH FINANCIAL EXAMINATION OR FINANCIAL AUDIT ON AN  ANNUAL
 BASIS.  THE  GENERAL PARTNER SHALL AGREE TO CAUSE THE KEY OFFICERS TO BE
 AVAILABLE TO DISCUSS THE FUND AND THE PARTNERSHIP AND ITS ACTIVITIES  AT
 THE TIME OF THE AUDIT;
   (B)  THE  GENERAL  PARTNER SHALL AGREE TO CAUSE THE KEY OFFICERS TO BE
 AVAILABLE TO DISCUSS THE FUND AND THE PARTNERSHIP AND ITS ACTIVITIES  AT
 THE  REQUEST  OF THE BOARD OF THE DORMITORY AUTHORITY OR THE DIRECTOR OF
 THE BUDGET;
   (C) ANY REAL PROPERTY SUBLEASED OUT BY THE FUND TO  A  PUBLIC  CHARTER
 SCHOOL SHALL BE AT THE SAME RATE ON WHICH THE FUND HAS LEASED SUCH PROP-
 ERTY;
   (D)  THE  FUND  SHALL  NOT BE VOLUNTARILY TERMINATED EARLY WITHOUT THE
 PRIOR CONSENT OF THE BOARD OF THE DORMITORY AUTHORITY;
   (E) THE FUND SHALL HAVE A CONFLICT-OF-INTEREST POLICY APPROVED BY  THE
 BOARD OF THE DORMITORY AUTHORITY;
   (F)  ANY  LOAN  AGREEMENT  THE  FUND  ENTERS  INTO WITH PUBLIC CHARTER
 SCHOOLS SHALL BE A NON-RECOURSE LOAN AND SHALL ALLOW PREPAYMENT  OF  THE
 DEBT  WITHOUT  ANY  PENALTY  IMPOSED  BY THE FUND BUT WILL ALLOW FOR THE
 INCLUSION OF A MAKE-WHOLE PROVISION AND SHALL NOT, AT THE TIME THAT  THE
 NON-RECOURSE  LOAN  IS  ESTABLISHED,  EXCEED THE PRIME LENDING RATE PLUS
 ONE-HALF THE MAXIMUM INTEREST RATE SPECIFIED UNDER  SUBDIVISION  ONE  OF
 SECTION FOURTEEN-A OF THE BANKING LAW;
   (G) THE STATE'S CONTRIBUTION TO THE FUND SHALL NOT EXCEED SEVENTY-FIVE
 MILLION DOLLARS;
   (H)  THE  FUND  SHALL  NOT  TAKE ANY EQUITY POSITIONS IN, ISSUE EQUITY
 LOANS TO, OR ENTER INTO REVENUE OR PROFIT SHARING  AGREEMENTS  WITH  ANY
 PUBLIC  CHARTER SCHOOL OR CHARTER MANAGEMENT ORGANIZATION OR INCLUDE ANY
 TERMS AND CONDITIONS IN AN AGREEMENT WITH SUCH ENTITIES TO THAT  EFFECT;
 THE  FUND SHALL ALSO NOT INCLUDE ANY EXCESSIVE PENALTIES WITHIN THE LOAN
 AGREEMENTS; AND
   (I) ANY OTHER REQUIREMENT AS THE AUTHORITY MAY  DEEM  APPROPRIATE,  IN
 CONSULTATION WITH THE COMMISSIONER OF EDUCATION, CHANCELLOR OF THE STATE
 UNIVERSITY OF NEW YORK, NEW YORK CITY CHANCELLOR OF EDUCATION, THE PRES-
 IDENT  OF  THE URBAN DEVELOPMENT CORPORATION, THE DIRECTOR OF THE BUDGET
 AND THE STATE COMPTROLLER.
   (B) (I) AFTER THE FUNDING OF THE PRIVATE DEBT OR EQUITY FUND  OR  NOT-
 FOR-PROFIT LOAN, AS PROVIDED PURSUANT TO THIS SUBDIVISION, THE AUTHORITY
 SHALL  PREPARE  AN  ANNUAL  REPORT  BEGINNING ON DECEMBER THIRTIETH, TWO
 THOUSAND  TWENTY-THREE  AND  ANNUALLY  THEREAFTER,  WHICH  REPORT  SHALL
 INCLUDE, BUT NOT BE LIMITED TO:
   (A)  THE  NUMBER  OF  APPLICATIONS  RECEIVED  AND THE FINANCING AMOUNT
 REQUESTED BY THE APPLICANT;
   (B) THE NUMBER OF APPLICATIONS APPROVED, DENIED, OR WITHDRAWN;
   (C) THE AMOUNT AND TYPE OF  FINANCING  AWARDED  TO  EACH  AWARDEE  AND
 WHETHER THE AWARDEE:
   (1)  IS  AN EDUCATION CORPORATION LOCATED IN, OR SERVING PREDOMINATELY
 STUDENTS WHO ARE MEMBERS OF, A COMMUNITY DISPROPORTIONATELY IMPACTED  BY
 RACIAL DISPARITIES IN EDUCATIONAL OUTCOMES, LOW EDUCATIONAL OUTCOMES, OR
 HIGH RATES OF ECONOMICALLY DISADVANTAGED STUDENTS; AND
   (2) IS A MINORITY-LED EDUCATION CORPORATION OR WILL DIRECTLY BENEFIT A
 MINORITY-LED EDUCATION CORPORATION; AND
 A. 6150                             9

   (3)  THE  NUMBER OF CHARTER SCHOOLS THE AWARDEE OPERATES OR MANAGES OR
 WILL OPERATE OR MANAGE;
   (D)  WHETHER THE GOAL OF AWARDING SIXTY PERCENT OF THE FUNDING AWARDED
 OR SIXTY PERCENT OF THE AWARDEES SELECTED EACH FISCAL YEAR, WHICHEVER IS
 GREATER, WAS MET AND IF SUCH GOAL WAS NOT MET, A  DETAILED  ANALYSIS  OF
 THE REASONS THE GOAL WAS NOT MET AND PLANS TO MEET THE GOAL FOR THE NEXT
 FISCAL YEAR;
   (E)  THE  GEOGRAPHIC  DISTRIBUTION  OF CHARTER SCHOOL FACILITIES SITES
 ESTABLISHED OR OPERATED BY EDUCATION CORPORATIONS ASSISTED BY THE FUND;
   (F) ANY OTHER SUCH DATA AND INFORMATION AS DETERMINED BY THE DORMITORY
 AUTHORITY OF THE STATE OF NEW YORK; AND
   (G) FOR THE FIRST REPORT, THE AUTHORITY SHALL REPORT ON  THE  PROCURE-
 MENT AND SELECTION OF THE GENERAL PARTNER.
   (II)  SUCH  REPORT  SHALL  BE PUBLISHED ON THE AUTHORITY'S WEBSITE AND
 PRESENTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE
 SPEAKER OF THE ASSEMBLY, NO LATER THAN DECEMBER THIRTIETH, TWO  THOUSAND
 TWENTY-THREE AND ANNUALLY THEREAFTER; AND
   (III)  THE  AUTHORITY  SHALL  FURTHER SUBMIT A COPY OF THE PARTNERSHIP
 AGREEMENT BETWEEN THE FUND AND  THE  AUTHORITY,  TO  THE  GOVERNOR,  THE
 TEMPORARY  PRESIDENT  OF  THE SENATE, AND THE SPEAKER OF THE ASSEMBLY NO
 LATER THAN FIFTEEN DAYS AFTER SUCH AGREEMENT HAS BEEN FULLY EXECUTED.
   36. TO MAKE GRANTS PURSUANT TO SECTION  NINETY-NINE-QQ  OF  THE  STATE
 FINANCE LAW.
   §  3.  Paragraph  (b)  of  subdivision 2 of section 1676 of the public
 authorities law is amended by adding two new undesignated paragraphs  to
 read as follows:
   PUBLIC CHARTER SCHOOLS PURSUANT TO SECTION NINETY-NINE-QQ OF THE STATE
 FINANCE LAW.
   THE  PRIVATE DEBT OR EQUITY FUND OR NOT-FOR-PROFIT LOAN FUND, IN WHICH
 THE STATE OR ANY STATE AGENCY, PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPO-
 RATION, OR DIVISION THEREOF, HAS INVESTED AND IS  SELECTED  PURSUANT  TO
 SUBDIVISION THIRTY-FIVE OF SECTION SIXTEEN HUNDRED SEVENTY-EIGHT OF THIS
 TITLE  TO  THE  EXTENT  AUTHORIZED  IN  SUBDIVISION THIRTY-THREE OF SUCH
 SECTION.
   § 4. Subdivision 1 of section 1680 of the public  authorities  law  is
 amended by adding two new undesignated paragraphs to read as follows:
   PUBLIC CHARTER SCHOOLS PURSUANT TO SECTION NINETY-NINE-QQ OF THE STATE
 FINANCE LAW.
   THE  PRIVATE  DEBT OR EQUITY FUND OR NOT-FOR-PROFIT LOAN, IN WHICH THE
 STATE OR ANY AGENCY, AUTHORITY OR DIVISION THEREOF HAS INVESTED  AND  IS
 SELECTED  PURSUANT TO SUBDIVISION THIRTY-FIVE OF SECTION SIXTEEN HUNDRED
 SEVENTY-EIGHT OF THIS TITLE TO  THE  EXTENT  AUTHORIZED  IN  SUBDIVISION
 THIRTY-THREE OF SUCH SECTION.
   § 5. Severability. If any provision of this act, or any application of
 any  provision of this act, is held to be invalid, that shall not affect
 the validity or effectiveness of any other provision of this act, or  of
 any  other  application of any provision of this act, which can be given
 effect without that provision or  application;  and  to  that  end,  the
 provisions and applications of this act are severable.
   § 6. This act shall take effect immediately.