§ 2975. Recovery of state governmental costs from public authorities
and public benefit corporations. 1. Notwithstanding any other provision
of law to the contrary, every public authority and every public benefit
corporation created by or pursuant to New York state law at least three
of whose members are appointed by the governor, whether such authority
or corporation is otherwise governed by this chapter (such entities, as
so constituted, to be hereafter in this title referred to as "public
benefit corporations"), shall reimburse to New York state an allocable
share of state governmental costs attributable to the provision of
services to public benefit corporations, as determined herein. The
payment of such costs by public benefit corporations is a valid and
proper purpose for which available authority funds may be applied.

2. (a) Annually the director of the division of the budget of the
state of New York (such person to be hereafter in this title referred to
as the "director of the budget"), in consultation with the state
comptroller, shall determine the total amount of expenses incurred or to
be incurred during the state's fiscal year in connection with the
provision of central governmental services to public benefit
corporations. Such expenses, in addition to the direct costs of personal
service, shall include indirect costs of employee benefits, maintenance
and operation, state equipment and facilities, rental for space occupied
in state leased facilities or the fair market rental value of space
occupied in state owned facilities, and contractual services, all as
attributable to the provision of otherwise unreimbursed services to
public benefit corporations by the New York state department of audit
and control, department of law, executive chamber, division of the
budget, the legislature, and such agencies, boards or commissions as the
director of the budget determines provide such services to public
benefit corporations.

(b) On or before November first, two thousand three and on or before
November first of each year thereafter, the director of the budget shall
determine the amount owed under this section by each public benefit
corporation. The director of the budget may reduce, in whole or part,
the amount of such assessment if the payment thereof would necessitate a
state appropriation for the purpose, or would otherwise impose an
extraordinary hardship upon the affected public benefit corporation. The
aggregate amount assessed under this section in any given state fiscal
year may not exceed sixty-five million dollars.

3. The state treasurer shall impose and collect such assessments,
which shall be paid no later than March thirty-first following the
imposition of the assessments, and pay the same into the state treasury
to the credit of the general fund.

3-a. A direct portion of these funds shall be allocated to fund the
authorities budget office established by section four of this chapter.

4. The provisions of subdivisions two and three of this section shall
not apply to any public benefit corporation which enters into a contract
or agreement with the director of the budget which otherwise provides
for cost recovery to the state and includes a provision that, in
accordance with this subdivision, subdivisions two and three of this
section shall not apply to such public benefit corporation. The
circumstances for the entry into such contract or agreement may include,
but shall not be limited to, the following:

(a) where such contract or agreement is for an amount which equals or
exceeds the amount of the assessment provided by subdivision two of this
section; or

(b) where the payment of all or a portion of the assessment provided
by subdivision two of this section would necessitate, in the judgment of
the director of the budget, an appropriation therefor by the state.

5. On or before June first, nineteen hundred ninety, and annually on
or before June first, the director of the budget shall report to the
respective chairpersons of the assembly ways and means committee and
senate finance committee the amount of cost recovery obtained pursuant
to this title and all contracts and agreements entered into pursuant to
subdivision four of this section for the state fiscal year ending on the
preceding March thirty-first.