S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4541
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 3, 2015
                                      ___________
       Introduced  by  M. of A. CLARK -- Multi-Sponsored by -- M. of A. ABBATE,
         BRENNAN, CURRAN, GALEF, HOOPER  --  read  once  and  referred  to  the
         Committee on Corporations, Authorities and Commissions
       AN  ACT  to  amend  the  public  authorities  law,  in  relation  to the
         construction and financing of facilities by  the  dormitory  authority
         for day care providers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (b) of subdivision  2  of  section  1676  of  the
    2  public authorities law is amended by adding a new undesignated paragraph
    3  to read as follows:
    4    DAY CARE PROVIDERS.
    5    S  2.  Subdivision  1 of section 1680 of the public authorities law is
    6  amended by adding a new undesignated paragraph to read as follows:
    7    DAY CARE PROVIDERS.
    8    S 3. Section 1676 of the public authorities law is amended by adding a
    9  new subdivision 46 to read as follows:
   10    46. (A) THE TERM "DAY CARE PROVIDER" OR "PROVIDER" SHALL MEAN A CORPO-
   11  RATION LICENSED TO OPERATE A CHILD CARE CENTER  AS  DEFINED  IN  SECTION
   12  THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW PROVIDING CARE AND MAIN-
   13  TENANCE PURSUANT TO ARTICLE SIX OF THE SOCIAL SERVICES LAW.
   14    (B)  THE  TERM "FACILITY" SHALL MEAN A CHILD CARE CENTER AS DEFINED IN
   15  SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW.
   16    S 4. Section 1680 of the public authorities law is amended by adding a
   17  new subdivision 41 to read as follows:
   18    41. A. THE DORMITORY AUTHORITY MAY ENTER INTO  LEASES,  SUBLEASES,  OR
   19  OTHER  AGREEMENTS  WITH  DAY CARE PROVIDERS FOR THE FINANCING OF AND THE
   20  DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT, RENO-
   21  VATION, ACQUISITION OR OTHERWISE PROVIDING FOR, FURNISHING OR  EQUIPPING
   22  OF  FACILITIES WHERE THE TOTAL ESTIMATED COST OF SUCH FACILITIES EXCEEDS
   23  TEN THOUSAND DOLLARS. THE PLANS AND SPECIFICATIONS OF  SUCH  FACILITIES,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08680-01-5
       A. 4541                             2
    1  AND  THE TOTAL PROJECT COST THEREOF, SHALL BE SUBJECT TO THE APPROVAL OF
    2  THE COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY  SERVICES.    SUCH
    3  FACILITIES  MAY  BE  CONSTRUCTED ONLY ON PROPERTY OWNED BY SUCH DAY CARE
    4  PROVIDER  OR, IF THE PROPERTY IS LEASED, WHERE THE LEASE IS FOR A PERIOD
    5  AT LEAST EQUAL TO THE APPROPRIATE PERIOD OF PROBABLE USEFULNESS FOR SUCH
    6  FACILITIES AS LISTED IN SECTION 11.00 OF THE LOCAL FINANCE LAW,  OR  TWO
    7  TIMES  THE  LENGTH  OF  THE  LEASE, SUBLEASE OR OTHER AGREEMENT WITH THE
    8  DORMITORY AUTHORITY, WHICHEVER IS LONGER.
    9    B. EACH SUCH PROVIDER SHALL, NOTWITHSTANDING ANY  OTHER  PROVISION  OF
   10  LAW,  HAVE THE POWER TO CONVEY, LEASE, SUBLEASE OR OTHERWISE MAKE AVAIL-
   11  ABLE TO THE DORMITORY AUTHORITY  WITHOUT  CONSIDERATION,  TITLE  OR  ANY
   12  OTHER RIGHTS IN REAL PROPERTY SATISFACTORY TO THE DORMITORY AUTHORITY.
   13    C. IN ADDITION TO PROVIDING FOR ALL OTHER MATTERS DEEMED NECESSARY AND
   14  PROPER,  SUCH  LEASES,  SUBLEASES AND OTHER AGREEMENTS SHALL (1) REQUIRE
   15  SUCH  PROVIDER TO PAY TO THE DORMITORY AUTHORITY  ANNUAL  RENTALS  WHICH
   16  SHALL  INCLUDE  THE AMOUNT REQUIRED TO PAY THE PRINCIPAL OF AND INTEREST
   17  ON OBLIGATIONS OF THE DORMITORY AUTHORITY ISSUED IN RELATION TO  PROVID-
   18  ING SUCH FACILITIES AND ALL INCIDENTAL EXPENSES OF THE DORMITORY AUTHOR-
   19  ITY INCURRED IN RELATION THERETO, (2) REQUIRE THE PROVIDER TO INCLUDE AN
   20  AMOUNT  SUFFICIENT  TO MEET ITS OBLIGATIONS UNDER THE LEASE, SUBLEASE OR
   21  OTHER AGREEMENT IN EACH PROPOSED BUDGET SUBMITTED DURING THE TERM OF THE
   22  LEASE, SUBLEASE OR OTHER AGREEMENT, AND (3) NOT BE EXECUTED  UNTIL  SUCH
   23  FACILITIES  ARE  APPROVED  BY THE COMMISSIONER OF THE OFFICE OF CHILDREN
   24  AND FAMILY SERVICES.
   25    D. TITLE OR OTHER REAL PROPERTY  RIGHTS  TO  THE  FACILITIES  FINANCED
   26  PURSUANT  TO  THIS SUBDIVISION SHALL REMAIN WITH THE DORMITORY AUTHORITY
   27  UNTIL THE DORMITORY AUTHORITY  CERTIFIES  TO  THE  COMMISSIONER  OF  THE
   28  OFFICE  OF  CHILDREN AND FAMILY SERVICES AND THE COMPTROLLER THE RECEIPT
   29  BY IT OF THE AMOUNT NECESSARY TO PAY THE TOTAL AGGREGATE AMOUNT OF ANNU-
   30  AL RENTALS TO THE DORMITORY AUTHORITY. AT SUCH TIME, TITLE OR OTHER REAL
   31  PROPERTY RIGHTS THERETO SHALL BE TRANSFERRED BY THE DORMITORY  AUTHORITY
   32  TO  SUCH  PROVIDER.  IN  ORDER TO AVAIL ITSELF OF THE PROVISIONS OF THIS
   33  SUBDIVISION, EACH SUCH  PROVIDER MUST ALSO AGREE TO CONTINUE TO  OPERATE
   34  A FACILITY AND SHALL BE REQUIRED TO ALLOCATE TWENTY-FIVE PERCENT OR MORE
   35  OF  ITS  CAPACITY  PURSUANT TO CONTRACTS WITH SOCIAL SERVICES DISTRICTS.
   36  SUCH LEASE, SUBLEASE OR OTHER AGREEMENT  WITH  THE  DORMITORY  AUTHORITY
   37  SHALL  PROVIDE  THAT,  IF  THE  PROVIDER  SHALL  CEASE TO OPERATE SUCH A
   38  PROGRAM AT ANY TIME DURING THE TERM OF THE AGREEMENT:    (I)  THE  STATE
   39  WILL HAVE THE OPTION TO TAKE SUCH TITLE OR OTHER REAL PROPERTY RIGHTS OF
   40  THE  DORMITORY AUTHORITY IN LAND, BUILDINGS, EQUIPMENT AND OTHER PROPER-
   41  TIES WHICH THE PROVIDER USES FOR ITS PROGRAM UPON, SUBJECT TO  APPROPRI-
   42  ATIONS,  PAYMENT  BY  THE STATE TO THE DORMITORY AUTHORITY OF THE AMOUNT
   43  REQUIRED TO PAY THE TOTAL AGGREGATE AMOUNT  OF  ANNUAL  RENTALS  TO  THE
   44  DORMITORY  AUTHORITY;  OR  (II)  THE PROVIDER SHALL PAY TO THE DORMITORY
   45  AUTHORITY ONE HUNDRED PERCENT OF THE OUTSTANDING PRINCIPAL AND  INTEREST
   46  AND  IN  ADDITION TO SUCH BALANCE SHALL ALSO PAY THE AMOUNT EQUAL TO THE
   47  DIFFERENCE BETWEEN THE INTEREST DUE AND THE  INTEREST  THAT  WOULD  HAVE
   48  BEEN DUE HAD THE RATE OF INTEREST CHARGED BEEN AT THE COMMERCIAL LENDING
   49  RATE OVER THE SAME PERIOD.
   50    E.  METHOD  OF  PAYMENT; RESERVE FUND. (1) ANY DAY CARE PROVIDER WHICH
   51  ELECTS TO AVAIL ITSELF OF  THE  PROVISIONS  OF  THIS  SUBDIVISION  SHALL
   52  ESTABLISH  WITH  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES A DAY CARE
   53  CENTER  FACILITIES DEBT SERVICE RESERVE FUND WHICH SHALL BE USED TO  PAY
   54  TO  THE  DORMITORY AUTHORITY THE ANNUAL RENTALS PAYABLE TO THE DORMITORY
   55  AUTHORITY BY SUCH PROVIDER WHICH HAVE ENTERED INTO A LEASE, SUBLEASE  OR
   56  OTHER  AGREEMENT  WITH  THE  DORMITORY  AUTHORITY TO PROVIDE RESIDENTIAL
       A. 4541                             3
    1  FACILITIES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION.  THE DORMITO-
    2  RY AUTHORITY  SHALL IDENTIFY TO THE COMMISSIONER OF THE OFFICE OF  CHIL-
    3  DREN  AND FAMILY SERVICES WITH RESPECT TO FACILITIES, THE PROVIDERS WITH
    4  WHICH  IT  HAS  LEASES,  SUBLEASES  OR OTHER AGREEMENTS PURSUANT TO THIS
    5  SUBDIVISION AND SHALL ANNUALLY CERTIFY  THE  AMOUNT  OF  ANNUAL  RENTALS
    6  REQUIRED  TO  BE PAID PURSUANT TO SUCH LEASES, SUBLEASES OR OTHER AGREE-
    7  MENTS.
    8    (2) (I) DAY CARE CENTER FACILITIES RESERVE  ACCOUNT.  THERE  SHALL  BE
    9  CREATED  AN ACCOUNT IN THE CUSTODY OF THE COMPTROLLER TO BE KNOWN AS THE
   10  DAY CARE CENTER FACILITIES RESERVE ACCOUNT INTO WHICH SHALL BE DEPOSITED
   11  ANY MONEYS HELD IN RESERVE BY THE OFFICE OF CHILDREN AND FAMILY SERVICES
   12  ON BEHALF OF PARTICIPATING PROVIDERS WHICH SHALL BE USED IN  PAYMENT  OF
   13  OBLIGATIONS  PURSUANT  TO  AGREEMENTS  MADE WITH THE DORMITORY AUTHORITY
   14  PURSUANT TO THIS SUBDIVISION.  UPON  CERTIFICATION  FROM  THE  DORMITORY
   15  AUTHORITY  THAT  IT  REQUIRES  A  PAYMENT OR PAYMENTS TO COMPLY WITH ANY
   16  LEASE, SUBLEASE OR OTHER AGREEMENT PURSUANT  TO  THIS  SUBDIVISION,  THE
   17  COMPTROLLER  SHALL PAY FROM SUCH ACCOUNT ON OR BEFORE THE SPECIFIED DATE
   18  TO THE DORMITORY AUTHORITY OR TO THE  PAYING  AGENT  DESIGNATED  BY  THE
   19  DORMITORY  AUTHORITY THE AMOUNT OR AMOUNTS SO CERTIFIED. ANY PAYMENTS OF
   20  MONEY FROM SUCH ACCOUNT SHALL BE MADE ON THE AUDIT AND  WARRANT  OF  THE
   21  STATE COMPTROLLER.
   22    (II)  DAY  CARE  CENTER  FACILITIES  DEBT  SERVICE  RESERVE FUNDS. THE
   23  COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL  CREATE
   24  AND  ESTABLISH  ONE OR MORE SPECIAL FUNDS TO BE KNOWN AS DAY CARE CENTER
   25  FACILITIES DEBT  SERVICE  RESERVE  FUNDS,  AND  PURSUANT  TO  AGREEMENTS
   26  BETWEEN  THE  PROVIDER  AND THE DORMITORY AUTHORITY, SHALL PAY INTO SUCH
   27  RESERVE FUNDS:
   28    (A) ANY MONEYS APPROPRIATED AND MADE AVAILABLE BY  THE  STATE  TO  DAY
   29  CARE PROVIDERS AND PLEDGED PURSUANT TO AGREEMENTS BETWEEN SUCH PROVIDERS
   30  AND THE DORMITORY AUTHORITY; AND
   31    (B) ANY OTHER MONEYS WHICH MAY BE MADE AVAILABLE TO THE AGENCY FOR THE
   32  PURPOSE  OF  PAYMENT  OF OBLIGATIONS MADE PURSUANT TO AGREEMENTS BETWEEN
   33  SUCH PROVIDERS AND THE  DORMITORY  AUTHORITY,  INCLUDING  PAYMENTS  FROM
   34  SOCIAL  SERVICES  DISTRICTS PURSUANT TO AGREEMENTS AND CONTRACTS BETWEEN
   35  SUCH DISTRICTS AND PARTICIPATING PROVIDERS.  THE  DEPARTMENT  OF  FAMILY
   36  ASSISTANCE  SHALL  TRANSFER MONEYS HELD IN THE FUND ON BEHALF OF PARTIC-
   37  IPATING PROVIDERS TO THE COMPTROLLER.
   38    (III) REVENUES IN ANY SPECIAL ACCOUNT IN THE DAY CARE  CENTER  FACILI-
   39  TIES  RESERVE  ACCOUNT  MAY  BE COMMINGLED WITH ANY OTHER MONEYS IN SUCH
   40  ACCOUNT. ALL DEPOSITS OF SUCH REVENUES WITH BANKS  AND  TRUST  COMPANIES
   41  SHALL  BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OF
   42  NEW YORK OR ITS POLITICAL SUBDIVISIONS. SUCH OBLIGATIONS  SHALL  HAVE  A
   43  MARKET  VALUE  AT  LEAST  EQUAL  AT ALL TIMES TO, BUT NOT LESS THAN, ONE
   44  HUNDRED FIVE PERCENT OF THE AMOUNT OF SUCH DEPOSITS. ALL BANKS AND TRUST
   45  COMPANIES ARE AUTHORIZED TO GIVE SECURITY FOR SUCH  DEPOSITS.  ANY  SUCH
   46  REVENUES  IN  SUCH ACCOUNT MAY, IN THE DISCRETION OF THE COMPTROLLER, BE
   47  INVESTED IN OBLIGATIONS OF THE UNITED STATES OR THE STATE OR OBLIGATIONS
   48  THE PRINCIPAL OF AND INTEREST ON WHICH  ARE  GUARANTEED  BY  THE  UNITED
   49  STATES  OR  BY  THE STATE. ANY INTEREST EARNED SHALL BE CREDITED TO SUCH
   50  ACCOUNT.
   51    (3) MEMORANDUM OF UNDERSTANDING. THE COMMISSIONER  OF  THE  OFFICE  OF
   52  CHILDREN  AND  FAMILY  SERVICES  SHALL ENTER INTO A MEMORANDUM OF UNDER-
   53  STANDING WITH THE COMPTROLLER AND THE DORMITORY AUTHORITY FOR  IMPLEMEN-
   54  TATION  OF  THIS  SUBDIVISION.  THE  FORM AND CONTENT OF SUCH MEMORANDUM
   55  SHALL BE APPROVED BY THE DIVISION OF BUDGET.
       A. 4541                             4
    1    F. ALL STATE AND LOCAL OFFICIALS ARE AUTHORIZED AND REQUIRED  TO  TAKE
    2  WHATEVER  ACTIONS  ARE  NECESSARY  TO  CARRY  OUT THE PROVISIONS OF THIS
    3  SUBDIVISION AND THE PROVISIONS OF ANY LEASES, SUBLEASES OR OTHER  AGREE-
    4  MENTS  ENTERED  INTO  PURSUANT TO THIS SUBDIVISION, INCLUDING MAKING THE
    5  REQUIRED PAYMENTS TO THE DORMITORY AUTHORITY.
    6    S 5. This act shall take effect immediately.