Bill Text: NY S02960 | 2017-2018 | General Assembly | Introduced
Bill Title: Creates the Albany county renewable energy authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S02960 Detail]
Download: New_York-2017-S02960-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2960 2017-2018 Regular Sessions IN SENATE January 18, 2017 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to creating the Albany county renewable energy authority The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 5 of the public authorities law is amended by 2 adding a new title 10-E to read as follows: 3 TITLE 10-E 4 ALBANY COUNTY RENEWABLE ENERGY AUTHORITY 5 Section 1233. Short title. 6 1234. Definitions. 7 1235. Albany county renewable energy district. 8 1236. Albany county renewable energy authority. 9 1237. Powers of the authority. 10 1238. Power to furnish service within district. 11 1239. Sale of surplus. 12 1240. Bonds and notes of the authority. 13 1241. Remedies of bondholders. 14 1242. State and county not liable on bonds and notes. 15 1243. Agreements of the state. 16 1244. Bonds legal investments for fiduciaries. 17 1245. Exemption from taxes. 18 1246. Tax contract by the state. 19 1247. Payments by municipalities. 20 1248. Duty of authority to maintain and operate. 21 1249. Transfer of officers and employees. 22 1250. Officers and employees not to be interested in trans- 23 actions. 24 1251. Contracts. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07537-01-7S. 2960 2 1 1252. Audit. 2 1253. Actions against authority. 3 1254. Separability clause. 4 1255. Inconsistent provisions in other acts superseded. 5 § 1233. Short title. This title may be cited as the "Albany County 6 Renewable Energy Authority Act". 7 § 1234. Definitions. As used or referred to in this title, unless a 8 different meaning clearly appears from the context: 9 1. The term "authority" shall mean the Albany county renewable energy 10 authority created by section twelve hundred thirty-six of this title. 11 2. The term "bonds" shall mean bonds, notes or other evidences of 12 indebtedness issued by the authority pursuant to this title. 13 3. The term "comptroller" shall mean the comptroller of the state. 14 4. The term "civil service commission" shall mean the civil service 15 commission of the county of Albany. 16 5. The term "county" shall mean the county of Albany. 17 6. The term "district" shall mean the Albany county renewable energy 18 district created by section twelve hundred thirty-five of this title. 19 7. The term "county legislature" shall mean the county legislature of 20 the county of Albany. 21 8. The term "county executive" shall mean the county executive of the 22 county of Albany. 23 9. The term "properties" shall mean the power distribution system or 24 systems of the authority, whether situated within or without the terri- 25 torial limits of the district, including the production facilities, 26 plants, works, structures, poles, lines, conduits, mains, systems, 27 instrumentalities or part thereof and appurtenances thereto, lands, 28 easements, rights in land and water rights, rights-of-way, contract 29 rights, franchises, transmission facilities and distribution facilities, 30 or any other property incidental to and included in such system or part 31 thereof, and any improvements, extensions or betterments. 32 10. The term "municipalities" shall mean any county, city, town, 33 village, school district, and any other political subdivision of the 34 state. 35 11. The term "renewable energy" shall mean energy generated by solar, 36 wind, hydro, geothermal or tidal. 37 12. The term "revenues" shall mean all rates, rents, fees, charges, 38 payments and other income and receipts derived from the operation of the 39 properties of the authority including, but not limited to, investment 40 proceeds and proceeds of insurance, condemnation, and sales or other 41 disposition of assets, together with all federal, state or municipal 42 aid. 43 13. The term "state" shall mean the state of New York. 44 § 1235. Albany county renewable energy district. There is hereby 45 defined and established an area to be known as the "Albany county renew- 46 able energy district," which shall embrace all the territory located 47 within the county. 48 § 1236. Albany county renewable energy authority. 1. There is hereby 49 created and established a public corporation, to be known as the "Albany 50 county renewable energy authority". The authority shall be a body 51 corporate and politic constituting a public benefit corporation, the 52 objects of which in the judgment of the legislature cannot be attained 53 under general laws. 54 2. The authority shall have the power to acquire such real estate and 55 other property as may be necessary for its corporate purposes, to sue 56 and be sued, to incur debts, liabilities and obligations, to issue bondsS. 2960 3 1 and other evidences of indebtedness, to have a seal, and to exercise all 2 powers authorized by this title and reasonably necessary for accomplish- 3 ing its purposes, or properly incidental thereto, subject to the 4 provisions herein contained and to the constitution and laws of the 5 United States and of the state. 6 3. The authority and its existence shall continue for a period of 7 twelve years and thereafter until all its liabilities have been met and 8 its bonds have been paid in full or such liabilities and bonds have 9 otherwise been discharged and thereupon all rights and properties of the 10 authority then remaining shall pass to and be vested in the county. 11 4. The authority shall consist of five members, to be residents of the 12 county and be appointed by the county executive with the advice and 13 consent of the county legislature. The term of office of a member shall 14 be five years, but in the first instance such members shall be appointed 15 to hold office, one for one year, one for two years, one for three 16 years, one for four years and one for five years, the term of each to be 17 fixed by the resolution making the appointment. Upon resignation of a 18 member, or a vacancy occurring in any other manner, it shall be filled 19 by appointment for the unexpired term. In other respects, all vacancies 20 shall be filled in the manner corresponding to the original appointment. 21 5. The members of the authority may appoint an executive committee of 22 not less than three members and may delegate full powers to such commit- 23 tee. They may appoint such other committees of not less than three 24 members each with such powers as they may provide. They may elect one of 25 the members as a chairperson and may elect or appoint other officers and 26 determine their powers. They may by a vote of a majority of members 27 adopt by-laws and provide for their annual and regular meetings and for 28 the calling of special meetings. The treasurer of the county shall be 29 ex-officio treasurer of the authority. Each member before entering upon 30 the duties of his or her office shall take the constitutional oath of 31 office, which shall be filed in the office of the secretary of state. 32 Three members shall constitute a quorum for the transaction of business 33 and the concurrence of three members at a meeting shall be necessary to 34 the validity of any resolution, order or determination. Any member may 35 be removed by the county executive for inefficiency, neglect of duty or 36 misconduct in office, after a hearing upon charges and an opportunity to 37 be heard in person or by counsel upon not less than ten days' notice. 38 The members shall serve without compensation. 39 6. No public officer or employee shall be ineligible for appointment 40 as a member or officer of the authority and any public officer or 41 employee may accept such appointment and serve as a member or officer 42 without forfeiture of any other public office or position of public 43 employment by reason thereof. Any one or more members or officers of the 44 authority may be an officer or employee of the county. In the event that 45 an officer or employee of the county shall be appointed as a member or 46 officer of the authority, acceptance or retention of such appointment 47 shall not be deemed a forfeiture of his or her county office or employ- 48 ment, or incompatible therewith or affect his or her tenure or compen- 49 sation in any way. 50 7. It is hereby determined and declared that the authority and the 51 carrying out of its powers, purposes and duties are in all respects for 52 the benefit of the people of the county and the state of New York, and 53 that said purposes are public purposes and that the authority is and 54 will be performing an essential governmental function in the exercise of 55 the powers conferred upon it by this title.S. 2960 4 1 8. Neither the public service commission nor any other board or 2 commission of like character, shall have jurisdiction over the authority 3 in the management and control of its properties or operations or any 4 power over the regulation of rates fixed or charges collected by the 5 authority except as otherwise provided in this subdivision. 6 (a) The authority's rates, services and practices with respect to 7 power and energy purchased from the power authority of the state of New 8 York shall be subject to regulation by such power authority pursuant to 9 the provisions of the power authority act and any contract between the 10 two authorities. 11 (b) The authority's rates, services and practices with respect to 12 power and energy that is either (i) generated or produced by a facility 13 owned, operated or managed by the authority, or (ii) purchased by the 14 authority from sources other than the power authority of the state of 15 New York shall be subject to regulations of the public service commis- 16 sion under the provisions of the public service law. 17 § 1237. Powers of the authority. The power conferred by this title 18 shall be exercised by the members of the authority, subject to the terms 19 of this title. In the exercise of those powers, either directly or 20 through its officers and employees, the members may do the following 21 things, among others, and the following list of powers shall not be 22 deemed complete or exclusive, or to deny the existence of other powers, 23 whether similar or different, so long as they are reasonably necessary 24 for accomplishing the purposes declared and indicated in this title: 25 1. To determine the location, type, size, construction, lease, 26 purchase, ownership, acquisition, use and operation of any generation, 27 transmission or distribution facilities or other structures or proper- 28 ties, within or without the territorial limits of the district; 29 2. To acquire on behalf and in the name of the authority, whether by 30 agreement with and purchase from the owner or owners, or within the 31 district by eminent domain, or by lease, the whole or any part of any 32 existing facilities or of any other property which it is authorized to 33 acquire under this title; provided, however, that the authority may not 34 acquire real property of a municipality or a political subdivision of 35 the state unless such municipality or political subdivision shall 36 consent thereto; and in connection with the purchase of such properties 37 the authority may assume any obligations of the owner of such properties 38 and, to the extent required by the terms of any indentures or other 39 instruments under which such obligations were issued, the authority may 40 assume and agree to perform covenants and observe restrictions contained 41 in such instruments; and furthermore the owner of any properties, which 42 the authority is authorized to acquire, is hereby authorized to sell or 43 otherwise transfer the same to the authority. In the exercise of the 44 power of eminent domain, as herein provided, the property being acquired 45 shall be deemed, when so determined by the authority, to be for a public 46 use; 47 3. To develop, acquire, construct, reconstruct, rehabilitate and 48 improve facilities for the production, transmission or distribution of 49 light, heat, power or any connected service; 50 4. To maintain, operate and manage, and contract for the maintenance, 51 operation and management of properties of the authority; 52 5. To apply to the appropriate agencies and officials of the federal, 53 state and local governments for such licenses, permits or approvals for 54 its plans and projects as it may deem necessary or advisable, and upon 55 such terms and conditions as it may deem appropriate to accept, in itsS. 2960 5 1 discretion, such licenses, permits or approvals as may be tendered to it 2 by such agencies and officials; 3 6. To enter upon such lands, waters or premises as in the judgment of 4 the authority shall be necessary for the purpose of making surveys, 5 soundings, borings and examinations to accomplish any purpose authorized 6 by this title, the authority being liable only for actual damages done; 7 7. Subject to its agreement with the county, to generate, supply and 8 sell light, heat and power and any connected services within the 9 district, to fix rates and charges for the furnishing or rendition of 10 light, heat or power or of any connected service, and to collect through 11 bills therefor the revenues derived therefrom, so as to provide revenues 12 to the authority sufficient at all times to pay, as the same shall 13 become due, the principal of and interest on the bonds of the authority 14 together with the maintenance of proper reserves therefor, in addition 15 to paying as the same shall become due the expense of operating and 16 maintaining the properties of the authority together with proper 17 reserves for maintenance, contingencies and all other obligations and 18 indebtedness of the authority; 19 8. To adopt, revise and amend bylaws for the management of its affairs 20 and, subject to agreements with bondholders, rules for the sale of 21 light, heat or power or of any connected service, and the collection of 22 rates and charges therefor. A copy of such rules and bylaws, and all 23 amendments thereto, duly certified by the secretary of the authority, 24 shall be filed in the office of the county clerk; 25 9. To enter into cooperative agreements with other authorities, muni- 26 cipalities, utility companies, individuals, firms, cooperatives or 27 corporations for the interconnection of facilities and the exchange or 28 interchange of services and commodities, upon such terms and conditions 29 as shall be determined to be reasonable; 30 10. To execute contracts, borrow money, issue bonds and sell or 31 dispose of the same in such amounts and at such rates of interest as may 32 be advisable; 33 11. To appoint and remove a secretary and such clerical, engineering, 34 legal and other professional assistants as it may deem necessary for the 35 purposes of this title and to fix their compensation, subject to the 36 provisions of the civil service law; 37 12. To appoint and remove all employees, to transfer employees from 38 their positions to other positions and to consolidate or abolish such 39 positions, subject to the provisions of the civil service law; 40 13. To make any plans, studies or investigation which it may deem 41 necessary, convenient or desirable to enable it effectually to carry out 42 the provisions of this title; 43 14. Within ninety days of the first sale of light, heat or power or 44 any connected service, to promulgate regulations granting to residential 45 customers, the protections afforded by article two of the public service 46 law and section one hundred thirty-one-s of the social services law; and 47 15. To do whatever may be necessary to give effect to the purposes of 48 this title, and in general to have and exercise all other powers neces- 49 sary or incidental to the purposes of this title. 50 § 1238. Power to furnish service within district. The authority shall 51 have power to construct or acquire, and to equip, own and operate, with- 52 in or without the territorial limits of the district, any properties and 53 any and all other real and personal property, used, connected with or 54 appertaining to the generation, furnishing and transmission of electric 55 current for light, heat and power, for the purpose of furnishing such 56 service to the district and to any corporate or natural persons in suchS. 2960 6 1 district and also, for such purpose, to purchase electrical energy from 2 the power authority of the state of New York, or from any state agency, 3 or from any municipality or cooperative, or from any private or public 4 corporation. 5 § 1239. Sale of surplus. Whenever any electrical energy which the 6 authority may generate or acquire creates a surplus over the amount of 7 light, heat and power, in any of such services, required by the resi- 8 dents of the district to which such service is contracted, the authority 9 may sell such surplus in territory outside the district to persons or 10 public or private corporations. In acquiring any facility or property 11 which also serves any municipality or territory outside the district, 12 the authority, if it deems it advantageous and economical so to do, may, 13 with the consent of the members of the authority, serve any such munici- 14 pality or territory or sell heat, power or electrical energy to persons, 15 public or private corporations in such territory or to such munici- 16 pality. 17 § 1240. Bonds and notes of the authority. 1. The authority shall have 18 the power and is hereby authorized from time to time to issue bonds in 19 conformity with applicable provisions of the uniform commercial code for 20 any of its corporate purposes, including incidental expenses in 21 connection therewith, and to secure the payment of the same by the 22 pledge of the revenues of the authority or by lien on the property of 23 the authority. The authority shall have power from time to time whenever 24 it deems refunding expedient, to refund any bonds by the issuance of new 25 bonds, whether the bonds to be refunded have or have not matured, and 26 may issue bonds partly to refund bonds then outstanding and partly for 27 any of its corporate purposes. Bonds issued by the authority may be 28 general obligations secured by the faith and credit of the authority or 29 may be special obligations payable out of particular revenues or other 30 moneys of the authority as may be designated in the proceedings of the 31 authority under which the bonds shall be authorized to be issued, 32 subject only to any agreements with the holders of outstanding bonds 33 pledging any particular moneys, earnings or revenues. 34 2. The authority is authorized to obtain from any department or agency 35 of the United States of America or the state or any nongovernmental 36 insurer or financial institution any insurance, guaranty or other credit 37 support device, to the extent now or hereafter available, as to, or for 38 the payment or repayment of interest or principal, or both, or any part 39 thereof, on any bonds issued by the authority and to enter into any 40 agreement or contract with respect to any such insurance or guaranty, 41 except to the extent that the same would in any way impair or interfere 42 with the ability of the authority to perform and fulfill the terms of 43 any agreement made with the holders of outstanding bonds of the authori- 44 ty. 45 3. The bonds shall be authorized by resolution of the authority and 46 shall bear such date or dates, mature at such time or times, except that 47 bonds and any renewal thereof shall mature within forty years of the 48 date of their original issuance and notes and any renewal thereof shall 49 mature within five years of the date of their original issuance, bear 50 interest at such rate or rates per annum payable at such times, be in 51 such denominations, be in such form, carry such registration privileges, 52 be executed in such manner, be payable in such medium of payment at such 53 place or places and be subject to such terms and conditions, as such 54 resolution or resolutions may provide. Such bonds of the authority may 55 be sold at public or private sale for such price or prices as the 56 authority shall determine, provided that no issue of bonds may be soldS. 2960 7 1 at private sale unless the terms of such sale shall have been approved 2 in writing by (a) the comptroller, where such sale is not to such comp- 3 troller, or (b) the director of the budget, where such sale is to such 4 comptroller. The foregoing provisions shall be applicable to bonds 5 issued by the authority notwithstanding the provisions of any other 6 general, special or local law to the contrary. 7 4. Any resolution or resolutions of the authority authorizing any 8 bonds or any issue of bonds may contain provisions, which may be a part 9 of the contract with the holders of the bonds thereby authorized, as to: 10 (a) pledging all or any part of the revenues of the authority, togeth- 11 er with any other moneys, securities, contracts or property of the 12 authority to secure the payment of the bonds or of any issue of the 13 bonds, subject to such agreements with bondholders as may then exist; 14 (b) the rates, rentals, fees and other charges to be fixed and 15 collected and the amounts to be raised in each year thereby, and the use 16 and disposition of the earnings and other revenues; 17 (c) the setting aside of reserves and the creation of sinking funds 18 and the regulation and disposition thereof; 19 (d) limitations on the right of the authority to restrict and regulate 20 the use of the properties in connection with which such bonds are 21 issued; 22 (e) limitations in the purposes to which the proceeds of sale of any 23 issue of bonds may be applied and pledging such proceeds to secure the 24 payment of the bonds or any issue of the bonds; 25 (f) limitations on the issuance of additional bonds, the terms upon 26 which additional bonds may be issued and secured and the refunding of 27 outstanding or other bonds; 28 (g) the procedure, if any, by which the terms of any contract with 29 bondholders may be amended or abrogated, including the proportion of 30 bondholders which must consent thereto and the manner in which such 31 consent may be given; 32 (h) the creation of special funds into which any revenues or other 33 moneys of the authority may be deposited; 34 (i) the terms and provisions of any mortgage or trust deed or inden- 35 ture securing the bonds or under which bonds may be issued; 36 (j) vesting in a trustee or trustees such properties, rights, powers 37 and duties in trust as the authority may determine, which may include 38 any or all of the rights, powers and duties of the trustee appointed by 39 the bondholders pursuant to section twelve hundred forty-one of this 40 title, and limiting or abrogating the right of the bondholders to 41 appoint a trustee under such section or limiting the rights, duties and 42 powers of such trustee; 43 (k) defining the acts or omissions to act which may constitute a 44 default in the obligations and duties of the authority to the bondhold- 45 ers and providing for the rights and remedies of the bondholders in the 46 event of such default, including as a matter of right the appointment of 47 a receiver, provided, however, that such rights and remedies shall not 48 be inconsistent with the general laws of the state and other provisions 49 of this title; 50 (l) limitations on the power of the authority to sell or otherwise 51 dispose of its properties or any part thereof; 52 (m) limitations on the amount of moneys or revenues to be expended for 53 operating, administrative or other expenses of the authority; 54 (n) the payment of the proceeds of bonds, revenues and other moneys to 55 a trustee or other depositary, and for the method of disbursement there-S. 2960 8 1 of with such safeguards and restrictions as the authority may determine; 2 and 3 (o) any other matters, of like or different character, which may in 4 any way affect the security or protection of the bonds or the rights and 5 remedies of bondholders. 6 5. In addition to the powers herein conferred upon the authority to 7 secure its bonds, the authority shall have power in connection with the 8 issuance of bonds to enter into such agreements as the authority may 9 deem necessary, convenient or desirable concerning the use or disposi- 10 tion of its revenues or other moneys or property, including the mortgag- 11 ing of any of its properties and the entrusting, pledging or creation of 12 any other security interest in any such revenues, moneys or properties 13 and the doing of any act, including refraining from doing any act, which 14 the authority would have the right to do in the absence of such agree- 15 ments. The authority shall have power to enter into amendments of any 16 such agreements within the powers granted to the authority by this title 17 and to perform such agreements. The provisions of any such agreements 18 may be made a part of the contract with the holders of bonds of the 19 authority. 20 6. Any provision of the uniform commercial code to the contrary 21 notwithstanding, any pledge of or other security interest in revenues, 22 moneys, accounts, contract rights, general intangibles or other personal 23 property made or created by the authority shall be valid, binding and 24 perfected from the time when such pledge is made or other security 25 interest attaches without any physical delivery of the collateral or 26 further act, and the lien of any such pledge or other security interest 27 shall be valid, binding and perfected against all parties having claims 28 of any kind in tort, contract or otherwise against the authority irre- 29 spective of whether or not such parties have notice thereof. Neither the 30 resolution nor any other instrument by which such pledge or security 31 interest is created nor any financing statement relating thereto need be 32 recorded or filed. 33 7. Whether or not the bonds of the authority are of such form and 34 character as to be negotiable instruments under the terms of the uniform 35 commercial code, the bonds are hereby made negotiable instruments within 36 the meaning of and for all purposes of the uniform commercial code, 37 subject only to the provisions of the bonds for registration. 38 8. Neither the members nor officers of the authority, nor any person 39 executing the bonds shall be liable personally on the bonds or be 40 subject to any personal liability or accountability by reason of the 41 issuance thereof. 42 9. The authority, subject to such agreements with bondholders as then 43 may exist, shall have power out of any funds available therefor to 44 purchase bonds of the authority, which shall thereupon be cancelled. 45 10. The authority shall have power and is hereby authorized to issue 46 negotiable bond anticipation notes in conformity with applicable 47 provisions of the uniform commercial code and may renew the same from 48 time to time but the maximum maturity of any such note, including 49 renewals thereof, shall not exceed five years from the date of issue of 50 such original note. Such notes shall be paid from any moneys of the 51 authority available therefor and not otherwise pledged or from the 52 proceeds of sale of the bonds of the authority in anticipation of which 53 they were issued. The notes shall be issued in the same manner as the 54 bonds and such notes and the resolution or resolutions authorizing the 55 same may contain any provisions, conditions or limitations which the 56 bonds or a bond resolution of the authority may contain. Such notes mayS. 2960 9 1 be sold at public or private sale for such price or prices as the 2 authority shall determine, provided that no issue of notes may be sold 3 at private sale unless the terms of such sale shall have been approved 4 in writing by (a) the comptroller, where such sale is not to such comp- 5 troller, or (b) the director of the budget, where such sale is to such 6 comptroller. 7 § 1241. Remedies of bondholders. 1. In the event that the authority 8 shall default in the payment of principal of or interest on any issue of 9 the bonds after the same shall become due, whether at maturity or upon 10 call for redemption, and such default shall continue for a period of 11 thirty days, or in the event that the authority shall fail or refuse to 12 comply with the provisions of this title, or shall default in any agree- 13 ment made with the holders of any issue of the bonds, the holders of 14 twenty-five per centum in aggregate principal amount of the bonds of 15 such issue then outstanding, by instrument or instruments filed in the 16 office of the clerk of the county of Albany and proved or acknowledged 17 in the same manner as a deed to be recorded, may appoint a trustee to 18 represent the holders of such bonds for the purposes herein provided. 19 2. Such trustee may, and upon written request of the holders of twen- 20 ty-five per centum in principal amount of such bonds then outstanding 21 shall, in his, her or its own name: 22 (a) by action or proceeding in accordance with the civil practice law 23 and rules, enforce all rights of the bondholders and require the author- 24 ity to carry out any agreements with the holders of such bonds and to 25 perform its duties under this title; 26 (b) bring an action or proceeding upon such bonds; 27 (c) by action or proceeding, require the authority to account as if it 28 were the trustee of an express trust for the holders of such bonds; 29 (d) by action or proceeding in equity, enjoin any acts or things which 30 may be unlawful or in violation of the rights of the holders of such 31 bonds; 32 (e) declare all such bonds due and payable, and if all defaults shall 33 be made good then with the consent of the holders of twenty-five per 34 centum of the principal amount of such bonds then outstanding, annul 35 such declaration and its consequences. 36 3. The supreme court shall have jurisdiction of any action or proceed- 37 ing by the trustee on behalf of bondholders. The venue of any such 38 action or proceeding shall be laid in the county. 39 4. Before declaring the principal of bonds due and payable, the trus- 40 tee shall first give thirty days' notice in writing to the authority. 41 5. Any such trustee whether or not the issue of bonds represented by 42 such trustee has been declared due and payable, shall be entitled as of 43 right to the appointment of a receiver of any part or parts of the prop- 44 erties the revenues of which are pledged for the security of the bonds 45 of such issue and such receiver may enter and take possession of such 46 part or parts of the properties and subject to any pledge or agreement 47 with bondholders shall take possession of such part or parts of such 48 properties and proceed with any construction thereon or the acquisition 49 of any property, real or personal in connection therewith which the 50 authority is under obligation to do, and to operate, maintain and recon- 51 struct such part or parts of the properties and collect and receive all 52 revenues thereafter arising therefrom subject to any pledge thereof or 53 agreement with bondholders relating thereto and perform the public 54 duties and carry out the agreements and obligations of the authority 55 under the direction of the court. In any suit, action or proceeding by 56 the trustee the fees, counsel fees and expenses of the trustee and ofS. 2960 10 1 the receiver, if any, shall constitute taxable disbursements and all 2 costs and disbursements allowed by the court shall be a first charge on 3 any revenues derived from the properties. 4 6. Such trustees shall in addition to the foregoing have and possess 5 all of the powers necessary or appropriate for the exercise of any func- 6 tions specifically set forth herein or incident to the general represen- 7 tation of bondholders in the enforcement and protection of their rights. 8 § 1242. State and county not liable on bonds and notes. The bonds and 9 other obligations of the authority shall not be a debt of the state or 10 of the county and, subject to section twelve hundred forty-seven of this 11 title, the county legislature shall have no power to make them payable 12 out of any funds except those of the authority. 13 § 1243. Agreements of the state. The state does pledge to and agree 14 with the holders of any bonds issued by the authority pursuant to this 15 title that the state will not limit or alter the rights hereby vested in 16 the authority to establish and collect the revenues and other charges 17 referred to in this title and to fulfill the terms of any agreements 18 made with or for the benefit of the holders of the bonds, or in any way 19 impair the rights and remedies of the bondholders, until the bonds, 20 together with interest thereon, with interest on any unpaid installments 21 of interest, and all costs and expenses in connection with any action or 22 proceeding by or on behalf of the bondholders, are fully met and 23 discharged. 24 § 1244. Bonds legal investments for fiduciaries. The bonds are hereby 25 made securities in which all public officers and bodies of this state 26 and all municipalities and municipal subdivisions, all insurance compa- 27 nies and associations and other persons carrying on an insurance busi- 28 ness, all banks, bankers, trust companies, savings banks and savings 29 associations, including savings and loan associations, building and loan 30 associations, investment companies and other persons carrying on a bank- 31 ing business, and administrators, guardians, executors, trustees and 32 other fiduciaries and all other persons whatsoever, who are now or may 33 hereafter be authorized to invest in bonds or other obligations of the 34 state, may properly and legally invest funds including capital in their 35 control or belonging to them. The bonds are also hereby made securities 36 which may be deposited with and may be received by all public officers 37 and bodies of this state and all municipalities and municipal subdivi- 38 sions for any purpose for which the deposit of bonds or other obli- 39 gations of this state is now or may hereafter be authorized. 40 § 1245. Exemption from taxes. 1. It is hereby determined that the 41 creation of the authority and the carrying out of its corporate purposes 42 is in all respects for the benefit of the people of the county and its 43 environs, and is a public purpose, and the authority shall be regarded 44 as performing a governmental function in the exercise of the powers 45 conferred upon it by this title and shall not be required to pay any 46 taxes, special ad valorem levies or special assessments upon any of the 47 properties acquired by it or under its jurisdiction or control or super- 48 vision or upon its activities or any filing, recording or transfer fees 49 or taxes in relation to instruments filed, recorded or transferred by it 50 or on its behalf. 51 2. Any bonds issued pursuant to this title, together with the income 52 therefrom, shall be exempt from taxation except for estate and transfer 53 taxes. The revenues, moneys and all other properties of the authority 54 shall be exempt from all taxes and governmental fees or charges, whether 55 imposed by the state or any municipality, including without limitation 56 real estate taxes, franchise taxes, sales taxes or other excise taxes.S. 2960 11 1 § 1246. Tax contract by the state. The state covenants with the 2 purchasers and with all subsequent holders and transferees of bonds or 3 notes issued by the authority pursuant to this title, in consideration 4 of the acceptance of and payment for the bonds that the bonds of the 5 authority issued pursuant to this title and the income therefrom shall 6 be exempt from such taxation, pursuant to subdivision two of section 7 twelve hundred forty-five of this title, and that all moneys, funds and 8 revenues pledged to pay or secure the payment of such bonds shall at all 9 times be free from such taxation pursuant to such subdivision. 10 § 1247. Payments by municipalities. The county legislature and the 11 governing body of any municipality in which surplus of the authority is 12 sold pursuant to section twelve hundred thirty-nine of this title are 13 authorized to make payments to the authority for its support. It is 14 hereby determined that such payments are for a public purpose for the 15 benefit of the people of such county and such municipalities. 16 § 1248. Duty of authority to maintain and operate. It shall be the 17 duty of the authority, subject to any limitation on the amount of reven- 18 ues to be expended for such purpose, to maintain and operate and where 19 necessary to reconstruct its properties. 20 § 1249. Transfer of officers and employees. Any public officer or 21 employee under civil service, selected by the authority may, with the 22 consent of the commission, board or department by which he or she has 23 been employed, be transferred to the authority and shall be eligible for 24 such transfer and appointment without examination to comparable offices, 25 positions and employment under the authority. The salary or compensation 26 of any such officer or employee shall after such transfer be paid by the 27 authority. But notwithstanding the provisions of this title, any such 28 officers or employees so transferred to the authority, pursuant to the 29 provisions of this section, who are members of or beneficiaries under 30 any existing pension or retirement system, shall continue to have all 31 rights, privileges, obligations and status with respect to such fund, 32 system or systems as are now prescribed by law, but during the period of 33 their employment by the authority, all contributions to any pension or 34 retirement fund or system to be paid by the employer on account of such 35 officers or employees, shall be paid by the authority; and all such 36 officers and employees who have been appointed to positions under the 37 rules and classifications of the civil service commission shall have the 38 same status with respect thereto after transfer to the authority as they 39 had under their original appointments. It is hereby declared that in the 40 interest of efficiency and insofar as may be practicable, all employees 41 engaged in the operation of any property or properties, except in an 42 executive capacity, at the time such property or properties shall have 43 been acquired by the authority, pursuant to the provisions of this 44 title, shall become the employees of the authority. The appointment and 45 promotion of all employees of the authority shall be made in accordance 46 with the provisions of the civil service law and such rules as the civil 47 service commission may adopt and make applicable to such authority. 48 § 1250. Officers and employees not to be interested in transactions. 49 It shall be a misdemeanor for any of the members of the authority, or 50 any officer, agent, servant or employee thereof, employed or appointed 51 by them to be in any way or manner interested directly or indirectly in 52 the furnishing of work, materials, supplies or labor, or in any contract 53 therefor which the authority is empowered by this title to make. 54 § 1251. Contracts. All contracts, or orders, for work, material or 55 supplies performed or furnished in connection with construction or any 56 procurement shall be awarded by the authority pursuant to resolution.S. 2960 12 1 Such contracts, or orders, for work, material or supplies needed for any 2 particular purpose involving an expenditure for more than fifty thousand 3 dollars shall be awarded only after inviting sealed bids or proposals 4 therefor. The notice inviting sealed proposals shall be published at 5 least once in a newspaper or trade paper selected by the authority for 6 such purpose, such publication to be at least ten days before the date 7 for the receipt of bids. If the authority shall not deem it for the 8 interest of the authority to reject all bids, it shall award the 9 contract to the lowest responsible bidder. The bidder whose bid is 10 accepted shall give security for the faithful performance of the 11 contract, and such other security as the authority may require, and may 12 be required to maintain for such period as shall be stipulated any 13 construction done under the contract, all in the manner prescribed and 14 required by the authority; and the sufficiency of such security shall, 15 in addition to the justification and acknowledgment, be approved by the 16 authority. All bids or proposals shall be publicly opened by the author- 17 ity or its duly authorized agent. If the bidder whose bid has been 18 accepted after advertising shall neglect or refuse to accept the 19 contract within five days after written notice that the same has been 20 awarded to him or her on his or her bid or proposal, or, if he or she 21 accepts but does not execute the contract and give proper security the 22 authority shall have the right to declare his or her deposit forfeited, 23 and thereupon it shall be readvertised and relet as above provided. In 24 case any work shall be abandoned by any contractor, the authority may, 25 if the best interests of the authority be thereby served, adopt on 26 behalf of the authority any or all sub-contracts made by such contractor 27 for such work and all such sub-contractors shall be bound by such 28 adoption if made; and the authority shall in the manner provided herein 29 readvertise and relet the work specified in the original contract exclu- 30 sive of so much thereof as shall be provided for in the sub-contract or 31 sub-contracts so adopted. No bid shall be accepted from or any 32 contracts awarded to, any person or corporation who is in arrears to the 33 authority, or the county upon any debt or contract, or is a defaulter as 34 surety or otherwise upon any obligation of the authority, or the county. 35 Every contract involving an expenditure of more than five thousand 36 dollars when made and entered into as herein provided for shall be 37 executed in duplicate, one copy of which shall be held by the authority 38 and one copy of which shall be delivered to the contractor. 39 § 1252. Audit. The accounts of the authority shall be subject to the 40 supervision of the comptroller. 41 § 1253. Actions against authority. 1. In any action founded upon tort 42 a notice of claim shall be required as a condition precedent to the 43 commencement of an action or special proceeding against the authority or 44 any officer, appointee, agent or employee thereof, and the provisions of 45 section fifty-e of the general municipal law shall govern the giving of 46 such notice. 47 2. Except in an action for wrongful death, an action against the 48 authority founded on tort shall not be commenced more than one year and 49 ninety days after the cause of action therefor shall have accrued. An 50 action against the authority for wrongful death shall be commenced in 51 accordance with the notice of claim and time limitation provisions of 52 title eleven of article nine of this chapter. 53 § 1254. Separability clause. If any section, clause or provision of 54 this title shall be held by a competent court to be unconstitutional or 55 ineffective in whole or in part, in its terms or in its operation, to 56 the extent that it is not unconstitutional or ineffective it shall beS. 2960 13 1 valid and effective and no other section, clause or provision shall on 2 account thereof be deemed invalid or ineffective. 3 § 1255. Inconsistent provisions in other acts superseded. Insofar as 4 the provisions of this title are inconsistent with the provisions of any 5 other act, general or special, the provisions of this title shall be 6 controlling. 7 § 2. This act shall take effect immediately.
