N.Y. Public Authorities Law § 1678: Powers of the authority

§ 1678. Powers of the authority. The authority shall have power

1. To sue and be sued;

2. To have a seal and alter the same at pleasure;

3. To acquire in the name of the state by purchase or condemnation,

gift or devise real property or rights of easement on terms necessary or

convenient for its corporate purposes; to acquire, hold and dispose of

personal property for its corporate purposes;

4. To make by-laws for the management and regulation of its affairs;

5. To appoint officers, agents and employees and fix their

compensation, provided, however, that the appointment of the executive

director shall be subject to confirmation by the senate in accordance

with section twenty-eight hundred fifty-two of this chapter;

6. To make contracts and to execute all instruments necessary or

convenient;

7. To prepare or cause to be prepared plans, specifications, designs

and estimates of costs for the construction and equipment of dormitories

and appurtenant facilities for the institutions specified in section

sixteen hundred seventy-six, and from time to time to modify such plans,

specifications, designs or estimates;

8. By contract or contracts or by its own employees to construct,

acquire, reconstruct, rehabilitate and improve, and furnish and equip,

dormitories and necessary and usual attendant facilities for

state-operated institutions and statutory and contract colleges under

the jurisdiction of the state university of New York pursuant to

agreement with the state university construction fund created by section

three hundred seventy-one of the education law;

9. To maintain, reconstruct and operate such dormitories until the

cost thereof and the outstanding bonds thereon have been liquidated;

10. To fix and collect rentals and other charges for the use of

dormitories and judicial facilities, court facilities or combined

occupancy structures or any parts thereof; to contract with holders of

its bonds to fix such rentals and charges at rates at least sufficient

to pay for all costs of operation, maintenance and repairs of the

dormitories and judicial facilities, court facilities or combined

occupancy structures, and the interest on and amortization of, or

payment of its bonds issued to finance dormitories, judicial facilities,

court facilities or combined occupancy structures; to provide by

contract for the promulgation, by the appropriate officer or body, in

relation to any institution described in subdivision two of section

sixteen hundred seventy-six of this title, of such reasonable and proper

rules and regulations as may be necessary to assure the maximum use of

the facilities of any dormitory at all times;

11. To borrow money and to issue negotiable bonds or notes and to

provide for the rights of the holders thereof;

12. To do all things necessary or convenient to carry out the purposes

of this authority.

13. In connection with court facilities or combined occupancy

structures:

(a) To acquire by purchase, condemnation, gift, devise, lease or other

agreement such real property or an interest therein as may be necessary

or convenient for the acquisition, construction, reconstruction,

rehabilitation, improvement or provision of court facilities or combined

occupancy structures;

(b) To prepare or cause to be prepared plans, specifications, designs

and estimates of costs for the design, construction, reconstruction,

rehabilitation or improvement of court facilities or combined occupancy

structures, and the equipping and furnishing thereof;

(c) To prepare or cause to be prepared a facility design and

performance plan with each participating municipality relating to court

facilities and combined occupancy structures in any case where the

authority and the participating municipality have agreed that the

authority will award contracts for the design and construction of the

project. Such plan shall set forth the terms and conditions associated

with the construction management process, including, but not limited to,

provisions relating to the selection of architects, construction

consultants, construction managers and contractors, the relative

responsibilities of the authority and the participating municipality

with respect to the initial project budget and the court facilities

program, the preparation of working drawings and budgets, the project

construction process, beneficial occupancy including formal

notifications, punch lists and acceptance by all parties, notification

of construction completion, project close-out, and the commencement of

responsibility for maintenance of the facility. Such plan shall also

include provisions relating to the responsibility of the authority to

require appropriate performance and surety bonds, the diligent pursuit

by the authority of remedies against architects, contractors and

sureties deemed to be in default in the performance of their

obligations, and, generally, the management of the construction process

in a professional manner in accordance with prevailing construction

industry standards. The authority shall submit the facility design and

performance plan to the chief administrator for submission to the court

facilities capital review board in accordance with section sixteen

hundred eighty-c of this chapter;

(d) To design, construct, reconstruct, rehabilitate or improve court

facilities or combined occupancy structures and to enter into contracts

to cause court facilities or combined occupancy structures to be

designed, constructed, reconstructed, rehabilitated or improved;

(e) To enter into leases, subleases or other agreements with

participating municipalities in connection with court facilities and

jointly with participating municipalities and other persons, firms,

associations, corporations or agencies, including public bodies, in

accordance with section sixteen hundred eighty-b of this article;

(f) To sell, convey, lease, sublease or otherwise transfer any real

property or interest therein held by the authority to any person, firm,

association, corporation or agency, including a public body, for the

purpose of constructing or otherwise providing thereon a combined

occupancy structure, provided that, simultaneously therewith, the

authority enters into an agreement for the reconveyance, purchase,

lease, sublease or other acquisition of the court facilities to be

contained in such combined occupancy structures.

Any contract undertaken or financed by the dormitory authority for any

construction, reconstruction, rehabilitation or improvement of any court

facilities or combined occupancy structures shall comply with the

provisions of sections one hundred one and one hundred three of the

general municipal law.

14. To adopt resolutions providing for a program of self-insurance to

pay for uninsured losses incurred by the dormitory authority by reason

of a deductible feature in a policy or policies of insurance or to

prevent a default in the compliance with any provision of any agreement,

lease or resolution of the authority relating to or authorizing the

issuance of obligations of the authority. When such program is approved

by the superintendent of financial services of the state of New York,

such program shall for all purposes of compliance by the dormitory

authority with any provision of an agreement, lease or resolution of the

authority relating to or authorizing the issuance of obligations of the

authority be deemed to be an insurance policy issued by an insurance

company authorized to do business in the state of New York. The approval

of the superintendent shall be based upon such standards as he shall

from time to time determine to be appropriate in light of the said

program, including but not limited to reasonable requirements regarding

the amounts and kinds of coverage provided and the minimum financing

maintained, and provided that the superintendent shall determine that

such program will not be prejudicial to the best interests of the people

of this state.

15. The authority shall, notwithstanding any other law, have the power

to mortgage, pledge or assign any real or personal property of any

dormitory or board of cooperative educational services school facility

as and to the extent authorized by any agreement or lease between the

authority and any educational institution as defined in section sixteen

hundred eighty of this title or any board of cooperative educational

services to secure any and all liabilities of such educational

institution or board of cooperative educational services under such

agreement or lease in respect of such dormitory or board of cooperative

educational services facility not theretofore paid or discharged, or

other real or personal property of the authority. Any such mortgage,

pledge or assignment by the authority, unless otherwise provided

therein, shall be superior to any right an educational institution or a

board of cooperative educational services may have with respect to the

property subject to such mortgage, pledge or assignment, and upon

foreclosure of any such mortgage or enforcement of any such pledge or

assignment any such right shall be extinguished.

16. To acquire and to enter into commitments to acquire any federally

guaranteed security and to pledge or otherwise use any such federally

guaranteed security in such manner as the authority deems in its best

interest to secure or otherwise provide a source of repayment on any of

its bonds issued on behalf of any hospital designated as an educational

institution in section sixteen hundred eighty of this title or to enter

into any appropriate agreement with any hospital designated as an

educational institution in section sixteen hundred eighty of this title

whereby the authority may make a loan to any such hospital for the

purpose of acquiring and entering into commitments to acquire any

federally guaranteed security. Any agreement entered into pursuant to

this subdivision may contain such provisions which are deemed necessary

or desirable by the authority for the security or protection of the

authority or the holders of such bonds; provided, however, that the

authority, prior to making any such acquisition, commitment or loan,

shall first determine, and shall first enter into an agreement with any

such hospital or any other appropriate institution or corporation to

require, that the proceeds derived from the acquisition of any such

federally guaranteed security will be used for the purpose of providing

or refinancing any dormitory for any hospital designated as an

educational institution in section sixteen hundred eighty of this title,

including any facility, real property, equipment and appurtenant and

related facilities.

17. To make and undertake commitments to make education loans to any

independent institution for higher education located in this state,

recognized and approved by the regents of the university of the state of

New York, which provides a course of study leading to the granting of a

post-secondary degree, for the purpose of enabling any such institution

for higher education to make student loans to any student attending such

independent institution for higher education, the parents of any such

student or both for the purpose of financing the cost of attendance by

such student at such independent institution for higher education, to

make and to commit to make direct loans to a student or the parents of a

student or both for the purpose of financing the cost of attendance by

such student at a public institution for higher education, and to

purchase, acquire or take by assignment or otherwise student loans from

such an independent institution for higher education. Each loan and

purchase of a student loan by the authority authorized by this

subdivision shall be premised upon an agreement, agreements, or

supplements thereto, between the authority and such institution for

higher education, such student or the parents of the student or both,

which agreement, agreements, or supplements thereto, may make provisions

as to payment, security, payment of any expenses or costs of the

authority and any other matters deemed appropriate by the authority.

All provisions of this title not inconsistent with the provisions of

this subdivision shall be applicable with respect to any bonds of the

authority issued to obtain funds for any purpose authorized under this

subdivision, and with respect to the powers of the authority and any

such institution for higher education provided, however, that the use of

any such powers in order to effectuate the purpose of section sixteen

hundred seventy-nine of this chapter be expressed by guidelines subject

to the review of the advisory committee pursuant to paragraph ten of

section sixteen hundred seventy-nine of this chapter. Bonds of the

authority issued for the purposes of this subdivision shall be deemed to

be issued for the financing and construction of a project within the

meaning of section fifty-one of this chapter.

18. To make and undertake commitments to make HEAL education loans to

any independent institution for higher education located in this state,

which is an eligible institution pursuant to title IV, part C, of the

"Health Professions Educational Assistance Act of 1976", as now or

hereafter amended, for the purpose of enabling any such institution to

make HEAL student loans, to make and to commit to make HEAL direct loans

to an eligible student attending a public or independent institution for

higher education, and to purchase, acquire or take by assignment or

otherwise HEAL student loans, and to sell and commit to sell HEAL direct

loans, HEAL education loans and HEAL student loans purchased, acquired

or taken by assignment or otherwise by the authority to the extent

necessary to assure the marketability of and the adequacy of the

security for the bonds of the authority. Each loan and purchase of a

HEAL student loan by the authority authorized by this subdivision shall

be premised upon an agreement, agreements, or supplements thereto,

between the authority and such institution for higher education or such

student, which agreement, agreements, or supplements thereto, may, to

the extent permitted by federal law and regulations, make provisions as

to payment, security, payment of any expenses or costs of the authority

and any other matters deemed appropriate by the authority. The authority

shall be deemed to be and is authorized to act as an eligible lender as

defined in title IV, part C, of the "Health Professions Educational

Assistance Act of 1976", as now or hereafter amended, for purposes of

the health education assistance loan program authorized thereunder.

All provisions of this title not inconsistent with the provisions of

this subdivision shall be applicable with respect to any bonds of the

authority issued to obtain funds for any purpose authorized under this

subdivision, and with respect to the powers of the authority and any

such institution for higher education, provided, however, that the use

of any such powers in order to effectuate the purpose of sections

sixteen hundred seventy-nine and sixteen hundred seventy-nine-a of this

chapter be expressed by guidelines subject to the review of the advisory

committee pursuant to subdivision ten of section sixteen hundred

seventy-nine of this chapter. Bonds of the authority issued for the

purposes of this subdivision shall be deemed to be issued for the

financing and construction of a project within the meaning of section

fifty-one of this chapter.

19. By contract or contracts or by its own employees to design,

contruct, acquire, reconstruct, rehabilitate and improve, and furnish

and equip, or otherwise provide judicial facilities.

All provisions of this title not inconsistent with the provisions of

this subdivision shall be applicable with respect to any bonds of the

authority issued to obtain funds for any purpose authorized under this

subdivision, and with respect to the powers of the authority; provided,

however, that the authority shall not undertake the provision of

judicial facilities authorized by this subdivision unless the governing

body of any county, within the tenth judicial district, that does not

contain a city for whose use judicial facilities are to be provided

consents thereto.

20. To enter into a contract or contracts with the commissioner of

health for the purpose of implementing the health facility restructuring

pool pursuant to section twenty-eight hundred fifteen of the public

health law, and to receive, hold, invest and pay out moneys deposited in

the restructuring pool. In connection therewith, the authority shall

exercise all of its powers under article eight of this chapter.

21. (a) To enter into one or more agreements with the state university

of New York to provide financial assistance on behalf of the state, as

provided in subdivision eight of section six thousand three hundred four

of the education law, to the local sponsors of community colleges for

the design, acquisition, construction, reconstruction, rehabilitation or

improvement of one or more facilities for locally sponsored community

colleges and the furnishing or equipping of such facilities. Each such

agreement shall provide for annual payments to the dormitory authority

from the state aid or other financial assistance provided to the local

sponsor of such community college and paid into the community college

tuition and instructional fund pursuant to paragraph (iii) of

subdivision two of section ninety-seven-p of the state finance law, and

contain such other terms and conditions as may be agreed upon by the

parties thereto, including, but not limited to, provisions relating to

the establishment of reserve funds and indemnities. Each such agreement

shall be subject to the approval of the director of the budget.

(b) Any such agreement entered into pursuant to this subdivision may

provide that the provisions thereof shall remain in force and effect

until the issue of bonds of the dormitory authority to which it relates,

together with interest thereon, interest on any unpaid installments of

interest and the fees and expenses of the dormitory authority, are fully

met and discharged, and any payments to be made by the state may be

pledged by the dormitory authority to secure such bonds.

(c) No agreement entered into pursuant to this section shall be

construed to limit or diminish the power of the dormitory authority with

respect to a locally sponsored community college with respect to

providing construction related services in connection with the

construction, reconstruction, improvement, renovation, development or

expansion of locally sponsored community college facilities.

23. To make equipment loans pursuant to section sixteen hundred

seventy-nine-b of this article and, in connection with such equipment

loans, to enter into all necessary or useful agreements with respect to

such loans.

24. To acquire bonds, notes or other obligations of any school

district or city of the state issued to finance or refinance school

district capital facilities and school district capital equipment and to

make loan commitments and loans to school districts and to cities for

such purposes, and to enter into arrangements with school districts and

cities for the purchase of such bonds, notes or other obligations.

* 25. (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 this article in connection with

the exercise of remedies by the authority against any borrower regulated

under article twenty-eight of the public health law that has defaulted

in its obligations under its loan agreement or mortgage with the

authority and for which an event of default has been declared by the

authority. Each 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 or held a mortgage, security

interest or other collateral interest including: (i) bidding for,

taking, holding, selling, conveying, assigning or transferring title to

such property; (ii) entering into leases, subleases, operating

agreements, security agreements, loan agreements or other encumbrances

or arrangements with regard to such property and acting in a manner

consistent with the rights, obligations or responsibilities of the owner

of such property pursuant to such agreements or encumbrances; (iii)

assuming any indebtedness or other liabilities secured by such property.

Notwithstanding any other provision of law to the contrary, but in all

instances subject to the provisions of any contract with bondholders,

the transfer of title to any such subsidiary or any other actions taken

by the authority or such subsidiary to enforce the authority's rights

under the mortgage, security interest or other collateral interest or to

protect, acquire, manage or dispose of the property shall be deemed to

be a corporate purpose of the authority and shall not impair the

validity of any bonds, notes or other obligations of the authority to

which the mortgage, security interest or other collateral interest

relates.

(b) Each 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 incorporation 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. Each 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 each 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 any such subsidiary upon

the authority and the authority shall have no liability or

responsibility therefor unless the authority expressly agrees to assume

the same.

(d) Each such subsidiary created pursuant to this subdivision shall be

subject to any other provision of this chapter pertaining to

subsidiaries of public authorities.

(e) Notwithstanding any other provision of law to the contrary,

including but not limited to title five-A of article nine of this

chapter, the Atlantic Avenue Healthcare Property Holding Corporation is

hereby authorized and empowered to sell, exchange, lease, transfer and

convey certain real property located at 483-503 Herkimer Street,

1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,

all in Brooklyn, New York as directed by the commissioner of New York

state division of homes and community renewal, upon such terms and

conditions as such commissioner may fix and determine.

Such sale, exchange, lease, transfer and conveyance shall be

consistent with and made pursuant to a plan to increase access and

quality of health care services and preventative care and create

affordable housing approved by the commissioner of New York state

division of homes and community renewal, the commissioner of health and

the director of the division of the budget to transform the Central

Brooklyn region. Such plan shall include any combination of initiatives

intended to: increase access to open spaces, transform health care by

increasing access and quality of health care services and preventative

care, create affordable housing, improve youth development, prevent

community violence, address social determinants of health, and provide

any ancillary services thereto.

Notwithstanding the foregoing, no such sale, exchange, transfer, lease

or conveyance shall be permitted pursuant to this section, unless in the

opinion of bond counsel to the authority, such sale, exchange, transfer,

lease or conveyance does not impair the tax-exempt status of any

outstanding bonds or other obligations, if any, issued by the authority

to finance or refinance the subject property. For the purposes of such

opinion, the valuation of such property being sold, exchanged,

transferred, leased or conveyed may reflect the terms and conditions set

forth in the plan.

(f) The description in paragraph (e) of this subdivision of the lands

to be transferred and conveyed is not intended to be a legal

description, but is intended only to identify the premises to be

conveyed. As a condition of transfer and conveyance, the Atlantic Avenue

Healthcare Property Holding Corporation shall receive an accurate survey

and description of the lands generally described in paragraph (e) of

this subdivision, which may be used in the conveyance thereof.

* NB Effective until July 1, 2028

* 25. (a) To form a subsidiary for the purpose of limiting the

potential liability of the authority when exercising the powers and

duties conferred upon the authority by article eight of this chapter in

connection with the exercise of remedies by the authority against North

General Hospital, an eligible secured borrower (as defined in chapter

five hundred ninety of the laws of two thousand two) located in the

borough of Manhattan, New York that has defaulted in its obligations

under its loan agreement or mortgage with the authority and for which an

event of default has been declared by the authority. 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 or held a mortgage, security interest or

other collateral interest including: (i) bidding for, taking, holding,

selling, conveying, assigning or transferring title to such property;

(ii) entering into leases, subleases, operating agreements, security

agreements, loan agreements or other encumbrances or arrangements with

regard to such property and acting in a manner consistent with the

rights, obligations or responsibilities of the owner of such property

pursuant to such agreements or encumbrances; (iii) assuming any

indebtedness or other liabilities secured by such property.

Notwithstanding any other provision of law to the contrary, but in all

instances subject to the provisions of any contract with bondholders,

the transfer of title to such subsidiary or any other actions taken by

the authority or the subsidiary to enforce the authority's rights under

the mortgage, security interest or other collateral interest or to

protect, acquire, manage or dispose of the property shall be deemed to

be a corporate purpose of the authority and shall not impair the

validity of any bonds, notes or other obligations of the authority to

which the mortgage, security interest or other collateral interest

relates.

(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

incorporation 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 responsibility

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

subsidiaries of public authorities.

(e) Notwithstanding any other provision of law to the contrary,

including but not limited to title five-A of article nine of this

chapter, the Atlantic Avenue Healthcare Property Holding Corporation is

hereby authorized and empowered to sell, exchange, lease, transfer and

convey certain real property located at 483-503 Herkimer Street,

1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,

all in Brooklyn, New York as directed by the commissioner of New York

state division of homes and community renewal, upon such terms and

conditions as such commissioner may fix and determine.

Such sale, exchange, lease, transfer and conveyance shall be

consistent with and made pursuant to a plan to increase access and

quality of health care services and preventative care and create

affordable housing approved by the commissioner of New York state

division of homes and community renewal, the commissioner of health and

the director of the division of the budget to transform the Central

Brooklyn region. Such plan shall include any combination of initiatives

intended to: increase access to open spaces, transform health care by

increasing access and quality of health care services and preventative

care, create affordable housing, improve youth development, prevent

community violence, address social determinants of health, and provide

any ancillary services thereto.

Notwithstanding the foregoing, no such sale, exchange, transfer, lease

or conveyance shall be permitted pursuant to this section, unless in the

opinion of bond counsel to the authority, such sale, exchange, transfer,

lease or conveyance does not impair the tax-exempt status of any

outstanding bonds or other obligations, if any, issued by the authority

to finance or refinance the subject property. For the purposes of such

opinion, the valuation of such property being sold, exchanged,

transferred, leased or conveyed may reflect the terms and conditions set

forth in the plan.

(f) The description in paragraph (e) of this subdivision of the lands

to be transferred and conveyed is not intended to be a legal

description, but is intended only to identify the premises to be

conveyed. As a condition of transfer and conveyance, the Atlantic Avenue

Healthcare Property Holding Corporation shall receive an accurate survey

and description of the lands generally described in paragraph (e) of

this subdivision, which may be used in the conveyance thereof.

* NB Effective July 1, 2028

* 26. To enter into a design and construction management agreement

with the department of environmental conservation, pursuant to which one

or more facilities are to be designed, constructed, reconstructed,

rehabilitated, improved, furnished or equipped for such department. Any

such design and construction management agreement entered into pursuant

to this subdivision shall provide for the following: the scope of design

and construction management services to be provided by the authority,

the manner in which those services will be provided, the fees to be

charged by the authority and the sources of funds for the projects. No

design-build contract as defined in chapter fifty-six of the laws of two

thousand eleven shall be awarded pursuant to this subdivision.

* NB Repealed April 1, 2027

* 27. To enter into a design and construction management agreement

with the office of parks, recreation and historic preservation, pursuant

to which one or more facilities are to be designed, constructed,

reconstructed, rehabilitated, improved, furnished or equipped for such

office. Any such design and construction management agreement entered

into pursuant to this subdivision shall provide for the following: the

scope of design and construction management services to be provided by

the authority, the manner in which those services will be provided, the

fees to be charged by the authority and the sources of funds for the

projects. No design-build contract as defined in chapter fifty-six of

the laws of two thousand eleven shall be awarded pursuant to this

subdivision.

* NB Repealed April 1, 2027

28. To enter into a construction management agreement with the New

York city housing authority, pursuant to which one or more facilities

owned or operated by the New York city housing authority located in the

city of New York are to be constructed, reconstructed, demolished,

improved, modernized, renovated or expanded for such authority.

* 29. Notwithstanding any law to the contrary, to establish a pilot

program for the award of contracts up the maximum dollar amount

specified in paragraph (e) of this subdivision, for the procurement of

goods or services from, or for the construction, reconstruction,

rehabilitation or improvement of facilities by, small businesses as

defined in section one hundred thirty-one of the economic development

law and minority-owned and women-owned business enterprises as defined

in section three hundred ten of the executive law, notwithstanding the

expiration of such section pursuant to subdivision (h) of section one

hundred twenty-one of chapter two hundred sixty-one of the laws of

nineteen hundred eight-eight, as amended, in accordance with the

following provisions:

(a) Procurements made pursuant to this subdivision shall be governed

by the authority's procurement policy and guidelines adopted pursuant to

section twenty-eight hundred seventy-nine of this chapter, with

participation in the pilot program confined to small businesses, as

defined in section one hundred thirty-one of the economic development

law, and minority-owned and women-owned business enterprises, as defined

in section three hundred ten of the executive law.

(b) Procurements made pursuant to this subdivision shall be designated

as such by the authority, in its sole discretion, pursuant to

pre-established criteria contained in the authority's procurement and

policy guidelines described in paragraph (a) of this subdivision. Such

designation shall be made prior to the advertisement and request for

bids or proposals, and any such advertisement or request shall indicate

this designation clearly.

(c) If the total number of parties responding and considered capable

of meeting the specifications and terms of the advertisement and request

for bids or proposals is less than three, or if the authority determines

that acceptance of any bid or proposal will result in the payment of an

unreasonable price, the authority shall reject all responses and

withdraw the designation made pursuant to paragraph (b) of this

subdivision.

(d) Procurements made pursuant to this subdivision may be undertaken

in conjunction with section one hundred forty-seven of the state finance

law authorizing a mentor-protege program to foster long-term

relationships between approved mentor firms and small business concerns

and minority and women-owned businesses certified pursuant to article

fifteen-A of the executive law.

(e) The total value of contracts awarded pursuant to this subdivision

shall not exceed the greater of twenty million dollars or five percent

of the value of all contracts awarded by the authority in a given fiscal

year.

The authority shall submit a report, no later than September

thirtieth, two thousand twenty-four, and annually thereafter, to the

governor, the temporary president of the senate and the speaker of the

assembly regarding procurements made pursuant to this subdivision. Such

report shall include a description of each procurement made pursuant to

this subdivision, information regarding the procurement process for each

such procurement contract, including the list of responding entities

that demonstrated the capability to meet the specifications and terms of

the procurement made pursuant to this subdivision if such procurement

did not use lowest responsible bidding, the project identification

number and a description for each such project, the completion date or

projected completion date as applicable for each such project, the

status of each such project, the total cost or projected cost and cost

modifications of each such project procured pursuant to this

subdivision, indication of whether the party awarded a contract pursuant

to this subdivision served as a general contractor or subcontractor in

fulfilling the contract, and the total dollar value of monies paid to

minority-owned and women-owned business enterprises pursuant to this

subdivision itemized by year and including the total dollar values for

the five years preceding the respective annual report's release date.

For annual reports any new procurements and changes during the period

covered by the report shall be identified separately.

* NB Repealed July 1, 2027

30. To enter into one or more agreements with the office of cannabis

management, the cannabis control board, or the private debt or equity

fund, selected pursuant to subdivision thirty-two of this section, in

which the state or any state agency, public authority, public benefit

corporation, or division thereof has invested and is formed for the

limited purpose of funding the capital costs associated with

establishing conditional adult-use cannabis retail dispensaries for

operation by social equity licensees duly licensed pursuant to article

two of the cannabis 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, improvement, or provision of conditional

adult-use cannabis retail dispensaries for operation by social equity

licensees, as agent, 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 dispensaries, 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 conditional adult-use cannabis retail dispensaries for

operation by social equity licensees;

(c) To design, construct, reconstruct, rehabilitate, or to cause the

design, construction, rehabilitation or improvement of, whether as

principal or agent, conditional adult-use cannabis retail dispensaries

for operation by social equity licensees and to enter into contracts to

cause such facilities to be designed, constructed, reconstructed,

rehabilitated, improved, furnished, or equipped;

(d) To enter, as lessor or as agent for the lessor, into leases,

subleases, or other agreements with the social equity licensees

operating for the conditional adult-use cannabis retail dispensaries;

provided that (i) the authority shall only enter in lease agreements as

agent of the private debt or equity fund selected pursuant to

subdivision thirty-two of this section, (ii) any general terms of such

lease agreement, and any material deviations or changes therefrom, are

approved by the office of cannabis management; and

(e) To enter, as lender or as agent to the lender, into a non-recourse

loan or other agreements with the social equity licensees operating the

conditional adult-use cannabis retail dispensaries, provided that any

general terms of such non-recourse loan agreements, and any material

deviations or changes therefrom, are approved by the office of cannabis

management and 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 allow for an

equity position in the social equity licensee's conditional adult-use

cannabis retail dispensary business or that would entitle a share in, or

claim to, any revenue or profit generated by such business.

31. (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 of this

section in connection with certain work performed on behalf of the

office of cannabis management, the cannabis control board, or the

private debt or equity fund in which the state or any state agency,

public authority, public benefit corporation, or division thereof has

invested and has been selected pursuant to subdivision thirty-two 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

incorporation 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

responsibility 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

subsidiaries of public authorities.

32. (a) (i) To select a private debt or equity fund formed for the

sole purpose of funding the capital costs, including closely related

ancillary and administrative costs, associated with establishing

conditional adult-use cannabis retail dispensaries for operation by

social equity licensees deemed to be eligible by the office of cannabis

management 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 cannabis control

board, the board of the dormitory authority, and the director of the

division of the budget, and the selection of such general partner shall

be made in consultation with the office of cannabis management.

(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:

(1) The fund shall have a public policy committee composed of the

chair of the cannabis control board, executive director of the office of

cannabis management, and the president of the authority, or their

representatives, who shall guide the decisions of the selected fund to

achieve the public policy goals of the state, which includes providing

advice and direction to the fund where matters implicate public policy

and confirming the fund's adherence to its public purpose, which

includes compliance with stated objectives or mission of the cannabis

law and the marihuana regulation and taxation act, generally and more

specifically, to provide social equity conditional adult-use cannabis

retail dispensary licensees with the opportunity of acquiring

commercially viable retail operations;

(2) Such committee shall:

(A) review and approve of the fund's investment policy statement and

any changes thereto;

(B) review and approve any changes to the use and distribution of

investment funds;

(C) review and approve the fund's strategic plan, particularly those

pertaining to the investor class, the establishment, management, and

liquidation of investments by the fund;

(D) monitor the fund's risk profile, investment activity, and

performance;

(E) approve the maximum amount of promised return on investment,

management fees, and compensation of the general partner;

(F) review and approve any changes or amendments to the fund's

organizational structure, partnership agreements, and the fund manager

or servicer's agreement to ensure that they are consistent with the

fund's public purpose;

(G) take reasonable steps, at the direction of the office of cannabis

management, to provide geographic equity and representation in

establishing such conditional adult-use cannabis retail dispensaries for

operation by social equity licensees, to the extent practicable, in

support of the public purpose of the fund and further, at the direction

of the office of cannabis management that the site selection for such

dispensaries comports with the requirements of the cannabis law and the

marihuana regulation and taxation act, and its rules and regulations

governing the location of conditional adult-use cannabis dispensaries;

and

(H) confirm that any real property leases and loan agreements issued

by or on behalf of the fund shall be provided to social equity

licensees, duly licensed pursuant to article two of the cannabis law;

(3) The general partner and the fund shall to the extent allowable by

section one of article five of the state constitution, authorize the

comptroller of the state, or the comptroller's legally authorized

representatives, 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

cooperate 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;

(4) 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 public policy committee;

(5) Any real property subleased out by the fund to a social equity

licensee shall be at the same rate on which the fund has leased such

property;

(6) The fund shall not be authorized to borrow any money or to incur

any indebtedness, including guarantees, except when approved by the

public policy committee;

(7) The fund shall not be voluntarily terminated early without the

prior consent of the public policy committee;

(8) The fund shall have a conflict-of-interest policy approved by the

public policy committee;

(9) Any loan agreement the fund enters into with social equity

licensees 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;

(10) The fund shall not accept more than two hundred million dollars

in total investment over the course of its life and the state's

contribution to the fund shall not exceed fifty million dollars; and

(11) The fund shall not take any equity positions in, issue equity

loans to, or enter into revenue or profit sharing agreements with any

social equity adult-use cannabis retail dispensary business or include

any terms and conditions in an agreement with such business to that

effect; the fund shall also not include any excessive penalties within

the loan agreements; and

(12) Any other requirement as the dormitory authority may deem

appropriate, in consultation with the office of cannabis management, or

the cannabis control board.

(b) (i) After the funding of the private debt or equity fund as

provided pursuant to this subdivision, the authority shall prepare an

annual report beginning on December thirtieth, two thousand twenty-two

and annually thereafter, which report shall include, but not be limited

to:

(1) the number of conditional adult-use cannabis retail dispensaries

assisted by the authority pursuant to this subdivision;

(2) the geographic distribution of sites designated by the office of

cannabis management and prepared by the authority for conditional

adult-use cannabis retail dispensaries for operation by licensed social

equity businesses; and

(3) any other such data and information, including information about

subsidiary or subsidiaries created pursuant to subdivision thirty-one of

this section.

(4) Additionally, for the first report, the authority shall report on

the procurement 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-two 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.