§ 66-b. Issuance of certificates of participation. 1. The director of
the budget shall determine whether the use of certificates of
participation to finance and/or to refinance installment purchase or
lease purchase contracts entered into by state departments, agencies or
the city university of New York is financially desirable and in the best
interest of the state. Upon notice of such a determination the state
comptroller is authorized, pursuant to a request for proposals,
competitive bidding or negotiated placement, to cause to be issued
certificates of participation or similar instruments that represent
undivided proportionate interests in periodic payments due from the
state to fund installment purchase or lease purchase contracts entered
into, or expected to be entered into, by the state departments,
agencies, the city university of New York, or any combination thereof,
pursuant to the provisions of this article. The state comptroller shall
issue regulations to govern the procedure he shall follow in any sale
conducted pursuant to this section of such certificates. Such
regulations shall, in the case of all sales, require that notice be
published in a definitive trade publication of the municipal bond
industry published on each business day in the state of New York, which
is generally available to participants in the municipal bond industry,
which notice shall state the terms of the sale. The proceeds from the
issuance of such certificates may also be used for the establishment of
reserve funds to secure such certificates, the cost or premium of
letters of credit, insurance or other credit enhancements, the cost of
bond counsel, financial advisor, trustees and paying agent, and such
other related expenses as may be necessary for the issuance of such
certificates. The foregoing shall not be construed to authorize the use
of such proceeds for the payment of personal service expenses of state
departments, agencies or the city university of New York, other than
payments made to the department of law for legal services rendered.

2. The maximum term of certificates of participation issued to finance
personal property shall be ten years. The maximum term of certificates
of participation to finance the acquisition or improvement of real
property shall be twenty-five years. In no event, however, shall such
term exceed the expected useful life of the property being financed,
with such term calculated from the date of delivery, with respect to
personal property, and the date of occupancy, with respect to real
property.

3. Ten days prior to the issuance of certificates of participation
pursuant to this section, the director of the budget shall transmit to
the chairs of the senate finance committee and the assembly ways and
means committee a copy of the director of the budget's notice to the
state comptroller pursuant to this section. Such notice shall provide
the following information pertaining to the personal property to be
financed by the certificates:

1. The agency and program procuring the equipment.

2. A brief description of the equipment.

3. The estimated cost of the equipment if purchased outright.

4. The estimated terms of such financings.

5. The estimated total lease or installment purchase payments for the
equipment.

6. The estimated lease or installment purchase payments by fiscal year
for the current fiscal year and the next five fiscal years.

7. The anticipated source of funds to make lease or installment
purchase payments.

8. Those items of equipment not anticipated to be financed upon
enactment of the budget for such fiscal year.
Before the issuance of the certificates the director of the budget may
amend such notice and shall transmit a copy of the amended notice to the
chairs of the senate finance committee and assembly ways and means
committee. After the issuance of the certificates, the director of the
budget shall transmit to the chairs of the senate finance committee and
assembly ways and means committee and the state comptroller a copy of
the final official statement accompanying such issuance and thereafter
shall transmit quarterly reports which update such notices to such
individuals.

4. Subject to the provisions of chapter fifty-nine of the laws of two
thousand, but notwithstanding any other provisions of law to the
contrary, the maximum amount of certificates of participation or similar
instruments representing periodic payments due from the state of New
York, issued on behalf of state departments and agencies, the city
university of New York and any other state entity otherwise specified
after March thirty-first, two thousand three shall be seven hundred
eighty-four million two hundred eighty-five thousand dollars. Such
amount shall be exclusive of certificates of participation or similar
instruments issued to fund a reserve fund or funds, costs of issuance
and to refund outstanding certificates of participation.