N.Y. Public Authorities Law § 3406: Transfer of property; relationship with the county; certain gifts, loans and guarantees by the county

§ 3406. Transfer of property; relationship with the county; certain

gifts, loans and guarantees by the county. 1. (a) By county ordinance

only, the county may contract, sell, convey, loan, license the use of,

or lease to the corporation any property or assets (except monies

appropriated by the county and payable to the corporation pursuant to

subdivision three and paragraph (a) of subdivision four of this

section), including its interest in Healthfirst Inc., which are useful

in connection with the exercise by the corporation of any of its powers

under this title in order to transfer the facilities and operations in

whole or in part of any facility, operation or program of the county of

Nassau providing health care services, whether or not the provision of

such facility, operation or program by the county is specifically

mandated by state law, to the corporation by agreement between the

county and the corporation and any subsequent renewal or amendment

thereof. The powers conferred upon the county herein to sell, convey,

loan, license the use of or lease property or assets of the county to

the corporation are in addition to any other powers granted to the

county by law relating to the sale, conveyance, alienation, leasing,

licensing or loaning of real or personal property and are not subject to

any law to the extent inconsistent herewith.

(b) Any such contract, sale, conveyance, loan, license or lease shall

be upon such terms and conditions, for such consideration which may

include cash, services or any combination thereof which the county

determines to be in the best interests of the citizens and taxpayers of

the county and for such term or terms of years, subject to the rights of

the holders of any bonds, as the corporation and the county may agree.

No real property of the county consisting of any health facility

currently operated by Nassau county shall be transferred to the

corporation in fee, except under such restrictions regarding rights of

first refusal, or other rights, to repurchase the property as the Nassau

county legislature shall approve by act. Any such contract, sale,

conveyance, lease, loan or license shall not be subject to referendum,

permissive or mandatory. In the event that the county contracts, sells,

conveys, loans, licenses or leases any property or assets to the

corporation, the county may contract with the corporation to lease,

borrow, license, operate, maintain, manage and provide services for such

facilities upon such terms and conditions and for such term or terms of

years, subject to the rights of holders of bonds, as the corporation and

the county may agree. The corporation, in furtherance of any purchase,

conveyance or lease of any property or facility from the county, may

assume the primary responsibility for the payment of the principal and

interest on any bonds or notes issued by the county for such property or

facility.

(c) Upon the terms and conditions and on the effective date set forth

in the agreement between the county and the corporation entered into

pursuant to paragraph (a) of subdivision one of this section, such

departments, agencies, facilities, services and other rights and

interest of the county pertaining to health care services as the county

or corporation may agree shall be transferred to the corporation. Upon

any such transfer, the county is authorized to restructure or eliminate

all such departments, agencies or facilities.

2. The county may acquire by purchase, lease, or condemnation pursuant

to the eminent domain procedure law, real property in the name of the

county for any corporate purpose of the corporation.

3. In addition to any other powers granted to it by law and consistent

with the constitution and other provisions of law, the county may, from

time to time, appropriate sums of money to defray project costs or any

other costs or expenses of the corporation including operating expenses.

Subject to the rights of bondholders, the county may determine if the

monies so appropriated shall be subject to repayment by the corporation

to the county and, in such event, the manner and time or times for such

repayment.

4. In addition to the authority granted elsewhere in this title and by

other applicable laws, the corporation and the county may enter into a

contract or contracts from time to time providing for one or more of the

following:

(a) the payment of sums appropriated by the county pursuant to

subdivision three of this section;

(b) the payment of sums for health care services provided by the

corporation which could otherwise be provided directly by the county,

including services for uncompensated care;

(c) services to be provided by the county to or on behalf of the

corporation;

(d) the transfer of employees of the county to the corporation as

provided in section thirty-four hundred three of this title;

(e) indemnification by the corporation to the county for claims

associated with establishment of and operation of the corporation and

its health facilities;

(f) the sale, conveyance, loan, license or lease by the county to the

corporation of any property (except monies appropriated by the county

and payable to the corporation pursuant to subdivision three and

paragraph (a) of this subdivision) or facilities which are useful in

connection with the exercise by the corporation of any of its powers

under this title not transferred pursuant to the authority granted in

paragraph (a) of subdivision one of this section, which sale,

conveyance, loan, license or lease shall nevertheless be subject to

paragraph (b) of subdivision one of this section; and

(g) such other matters as may be appropriate to accomplish the

purposes hereof.

Any such contract or contracts shall be authorized by the county by

resolution or ordinance adopted by the county legislature or in such

other manner as permitted by the county government law of the county of

Nassau. Such contract or contracts shall include such terms and

conditions and have such term or terms of years, as the corporation and

the county may agree.

5. (a) The county of Nassau shall have the power and is hereby

authorized, pursuant to section seven of article seventeen of the state

constitution, to lend its money or credit to or in aid of the

corporation or any subsidiary thereof for the purpose of providing

health related facilities or hospital facilities for the prevention,

diagnosis or treatment of human disease, pain, injury, disability,

deformity or physical condition, and for facilities incidental or

appurtenant thereto as may be prescribed by law. The county is hereby

authorized to prescribe such facilities by local law of the county. The

corporation or any such subsidiary thereof, as a condition to any such

loan of money or credit, shall enter into a regulatory agreement with

the county as to its charges, profits, dividends and disposition or its

property of franchises, which agreement shall be binding and enforceable

by the county. The county may elect in such regulatory agreement to

refrain from exercising all or any portion of its authority to so

regulate such charges, profits, dividends and disposition of property or

franchise to the extent such charges, profits, dividends and disposition

of property or franchise are regulated by the state or any agency

thereof. The county shall authorize such regulatory agreement by local

law.

(b) In pursuance of the authority granted herein, the county shall

have the power and is hereby authorized from time to time to issue its

bonds, notes or other obligations in such principal amounts as it shall

deem necessary, after taking into account other monies which may be

available for the purposes set forth herein. Such bonds, notes or

obligations shall be issued for the purpose of making loans to the

corporation or any subsidiary thereof, paying interest on such bonds,

notes or other obligations, and paying all other obligations and

expenditures incidental to and necessary or convenient for the making of

such loans. Such bonds, notes or obligations shall be issued in

accordance with the applicable provisions of this chapter and the local

finance law and applicable local laws.

(c) Any guarantee by the county made pursuant to the authority granted

in this section shall be authorized by ordinance or ordinances of the

county in the same manner as such ordinance or ordinances authorizing

the issuance of bonds of the county for the purposes for which such

guarantee is undertaken.

(d) The county shall also be authorized to enact laws governing the

conditions under which such loans, commitments and guarantees shall be

made.

6. For purposes of subdivision four of paragraph a of section 25.00 of

the local finance law, amounts to be derived by the county of Nassau

from the corporation, or any subsidiary thereof, shall be included in

the term "other income".

7. (a) Notwithstanding the provisions of any other state or local law

to the contrary, including, but not limited to, sections six-n and six-j

of the general municipal law, with the approval of the county

legislature, amounts deposited for or on behalf of the health care and

medical facilities or operations of the county which have been

transferred to the corporation pursuant to this section in the liability

and casualty and workers' compensation reserve funds established by the

county pursuant to said sections of the general municipal law, and

investment earnings thereon, may be withdrawn by the county from such

funds and transferred to the corporation and shall be used by the

corporation for the purposes for which such funds were established.

(b) No amounts shall be withdrawn and transferred to the corporation

pursuant to this subdivision unless prior thereto the corporation has

agreed in writing to indemnify and hold harmless the county, and provide

defense, for all claims, cases, proceedings, actions or other matters

against the county arising out of the properties, facilities, operations

or employees of the corporation of the Nassau Health Care Corporation,

whether commenced before or after the date of transfer of said amounts,

and to provide such other security for this obligation as the county may

reasonably require.

8. Notwithstanding the provisions of any state or local law to the

contrary, including but not limited to section six-l of the general

municipal law, any monies derived by the county in consideration of the

sale of its facilities or property to the corporation pursuant to this

section may be used for any lawful purpose of the county.