N.Y. Public Authorities Law § 2975: Recovery of state governmental costs from public authorities and public benefit corporations

§ 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.