§ 407-b. Authorization for dormitory authority financing of capital
facilities for state-supported schools for blind and deaf students. 1.
The legislature declares that it is in the interest of the state and the
children of the state to assure that state-supported schools for the
instruction of blind and deaf students and other children with
handicapping conditions pursuant to article eighty-five of this chapter
and chapter one thousand sixty of the laws of nineteen hundred
seventy-four have sufficient facilities related to the education of such
children. The legislature finds that state-supported schools for blind
and deaf students providing such education are in need of improved and
additional facilities related to the education of such children, and the
means to finance the construction of such improvements and additional
facilities. The legislature, therefore, enacts the following provisions.

2. This section shall apply to state-supported schools for the
instruction of the blind and deaf students and children with other
handicapping conditions, subject to the appointment of the commissioner,
pursuant to article eighty-five of this chapter and chapter one thousand
sixty of the laws of nineteen hundred seventy-four.

3. Such state-supported schools may enter into leases, subleases or
other agreements with the dormitory authority pursuant to title four of
article eight of the public authorities law for the financing of the
design, construction, reconstruction, rehabilitation, improvement,
renovation or otherwise providing for furnishing or equipping of
educational or residential facilities where the total estimated cost of
such facilities exceeds ten thousand dollars. The plans and
specifications of such capital facilities shall be subject to approval
of the commissioner. Such educational or residential facilities may be
constructed only on land owned by such state-supported school or, if the
land is leased, where the lease is for a period at least equal to the
appropriate period of probable usefulness for such facilities as listed
in section 11.00 of the local finance law, or the length of the lease,
sublease or other agreement with the dormitory authority, whichever is
longer.

4. Each state-supported school shall, notwithstanding any other
provision of law, have the power to convey, lease, sublease or otherwise
make available to the dormitory authority without consideration, title
or any other rights in real property satisfactory to the dormitory
authority.

5. In addition to providing for all other matters deemed necessary and
proper, such leases, subleases and other agreements shall (a) require
the state-supported school to pay to the dormitory authority annual
rentals which shall include the amount required to pay the principal of
and interest on obligations of the dormitory authority issued in
relation to providing such facilities and all incidental expenses of the
dormitory authority incurred in relation thereto, (b) require the
state-supported school to include an amount sufficient to meet its
obligations under the lease, sublease or other agreement in each
proposed budget submitted during the term of the lease, sublease or
other agreement, and (c) a provision that such agreement shall not be
effective unless and until it is approved by the commissioner and the
director of the budget.

6. Title or other real property rights, to the capital facilities
financed pursuant to this section shall remain with the dormitory
authority until the dormitory authority certifies to the commissioner
and the comptroller the receipt by it of the amount necessary to pay the
aggregate amount of annual rentals to the dormitory authority. At such
time, title or other real property rights thereto shall be transferred
by the dormitory authority to the state-supported school. In order to
avail itself of the provisions of this section, each state-supported
school must also agree to continue to operate a program for the
education of children pursuant to article eighty-five of this chapter
and chapter one thousand sixty of the laws of nineteen hundred
seventy-four, and any lease, sublease or other agreement with the
dormitory authority shall provide that, if the state-supported school
shall cease to operate at any time during the term of the agreement, the
school shall have the obligation to pay the total aggregate amount of
annual rentals to the dormitory authority. Upon a determination that the
state-supported school is unable to satisfy such obligations, the state
may take such title or other real property rights of the dormitory
authority in such land, buildings, equipment and other properties which
the state-supported school uses for its program upon payments, subject
to appropriations, by the state to the dormitory authority of the amount
required to pay the total aggregate amount of annual rentals to the
dormitory authority.

7. On or before November fifteenth of each year, the dormitory
authority shall submit, and thereafter may resubmit, to the director of
the budget, the state comptroller, the chairman of the senate finance
committee and the chairman of the assembly ways and means committee a
report setting forth the amounts, if any, of all annual rentals
estimated to become due in the succeeding state fiscal year to the
dormitory authority from the state-supported schools pursuant to any
leases, subleases or other agreements between the dormitory authority
and state-supported schools to provide educational and residential
facilities for such state-supported schools.

The state comptroller shall pay over to the dormitory authority
pursuant to appropriations therefor solely from moneys available in the
school capital facilities financing reserve fund the amount set forth in
such report at the times and in the amounts set forth in the certificate
filed with the comptroller by the dormitory authority pursuant to
subparagraph (iv) of paragraph (b) of subdivision eight of this section.

8. Method of payment; reserve fund. (a) Each state-supported school
which elects to avail itself of the provisions of this section shall
have established with the state comptroller a school capital facilities
financing reserve account which shall be used to pay to the dormitory
authority the annual rentals payable to the dormitory authority by
state-supported schools which have entered into leases, subleases or
other agreements with the dormitory authority to provide educational or
residential facilities pursuant to this section or to reimburse the
state for expenditures from appropriations made pursuant to subdivision
seven of this section. The dormitory authority shall identify to the
state comptroller and to the commissioner the state-supported schools
with which it has leases, subleases or other agreements pursuant to this
section and shall annually certify the amount of annual rentals required
to be paid pursuant to such leases, subleases or other agreements.

(b) (i) There is hereby established in the custody of the state
comptroller a special fund to be known as the school capital facilities
financing reserve fund. Within such fund, there is hereby established a
special account for each state-supported school which enters into a
lease, sublease or other agreement with the dormitory authority pursuant
to this section.

(ii) Notwithstanding the provisions of any other law, such fund shall
consist of payments as made and determined by the commissioner. The
comptroller shall maintain sufficient amounts in the fund in order to
pay when due the annual rentals due to the dormitory authority from each
such state-supported school pursuant to any lease, sublease or other
agreement entered into pursuant to the provisions of this section. The
dormitory authority shall certify to the state comptroller the dates and
amounts of such payments as scheduled in its lease, subleases or other
agreements with such state-supported school. The commissioner shall
certify the amount of payments due the fund from state-supported
schools, and shall make such payments to the fund at such times as
appropriate, subject to the approval of the director of the budget, and
after consultation with the dormitory authority.

(iii) Revenues in any special account in the school capital facilities
financing reserve fund may be commingled with any other moneys in such
fund. All deposits of such revenues shall be secured by obligations of
the United States or of the state of New York or its political
subdivisions. Such obligations shall have a market value not less than
one hundred five percent of the amount of such deposits. All the banks
and trust companies are authorized to give security for such deposits.
Any such revenues in such fund may, in the discretion of the
comptroller, be invested in obligations of the United States or the
state or obligations the principal of and interest on which are
guaranteed by the United States or by the state. Any interest earned
shall be credited to such fund.

(iv) Upon receipt by the comptroller of a certificate or certificates
from the dormitory authority that it requires a payment or payments from
the appropriate special account established for a state-supported school
to comply with any lease, sublease or other agreement pursuant to this
section, each of which certificate shall specify the required payment or
payments and the date when the payment or payments is required, the
comptroller shall pay from such special account on or before the
specified date or within thirty days after receipt of such certificate
or certificates, whichever is later, to the paying agent designated by
the dormitory authority in any such certificate, the amount or amounts
so certified.

(v) Notwithstanding any other provisions of this subdivision to the
extent that the state makes appropriations for the payment of annual
rentals to the dormitory authority required to be paid pursuant to the
terms of any lease, sublease or other agreement between the dormitory
authority and any state-supported schools and makes such payments,
moneys in the school capital facilities financing reserve fund shall be
used to reimburse the state for moneys so expended from such
appropriation.

(vi) All payments of money from the school capital facilities
financing reserve fund shall be made on the audit and warrant of the
state comptroller.

9. All state officials are authorized and required to take whatever
actions are necessary to carry out the provisions of this section and
any leases, subleases or other agreements entered into pursuant to this
section, including making the required payments to the dormitory
authority.

10. Notwithstanding any other provision of law to the contrary, the
dormitory authority may execute leases, subleases, or other agreements
with state supported schools for financing of the design, construction,
rehabilitation, improvement, renovation, acquisition or provision,
furnishing or equipping of capital facilities; provided, however, that
during the two year period commencing July first, nineteen hundred
ninety-five, the amount of bonds inclusive of principal, interest and
issuance costs to be issued for each individual lease, sublease, or
other agreement shall not exceed fifteen million dollars annually;
provided further that the interest on such bonds may not be deferred
through additional borrowing; and provided finally that the total amount
of such bonds for all such leases, subleases, or agreements with state
supported schools during such period shall not exceed sixty-five million
dollars.

On or before September first of each year, the commissioner shall
submit to the chairs of the assembly ways and means committee, the
senate finance committee and the director of the budget, a capital plan
for those projects expected to be bonded for state supported schools
pursuant to this section, within such sixty-five million dollar
allowance. After application of the principles of the capital assets
preservation program, such plan shall accord priority to health and
safety considerations and shall specify the name, location, estimated
total cost of the project at the time the project is to be bid, the
anticipated bid date and the anticipated completion date and may contain
any further recommendations the commissioner may deem appropriate.