Section 1680-K. Financing of department of agriculture and markets facilities

In order to effectuate the  purpose  of  this  title,  the  dormitory authority shall have the following additional powers:
    1.  Subject to the provisions of chapter fifty-nine of the laws of two
  thousand, but notwithstanding any provisions of law to the contrary, the
  dormitory authority is hereby authorized to issue bonds or notes in  one
  or  more  series  in  an  aggregate principal amount not to exceed forty
  million dollars excluding bonds issued  to  finance  one  or  more  debt
  service reserve funds, to pay costs of issuance of such bonds, and bonds
  or  notes  issued  to  refund  or  otherwise  repay  such bonds or notes
  previously issued, for the purpose of financing the construction of  the
  New York state agriculture and markets food laboratory. Eligible project
  costs  may include, but not be limited to the cost of design, financing,
  site  investigations,  site  acquisition  and  preparation,  demolition,
  construction,  rehabilitation,  acquisition  of machinery and equipment,
  and infrastructure improvements. Such bonds and notes of such authorized
  issuers shall not be a debt of the state, and the  state  shall  not  be
  liable  thereon,  nor  shall they be payable out of any funds other than
  those appropriated by the state to  such  authorized  issuers  for  debt
  service  and  related expenses pursuant to any service contract executed
  pursuant to subdivision two of this section and  such  bonds  and  notes
  shall contain on the face thereof a statement to such effect. Except for
  purposes  of  complying  with  the  internal  revenue code, any interest
  income earned on bond proceeds shall only be used to pay debt service on
  such bonds.
    2. Notwithstanding any provisions of law to the contrary, in order  to
  assist  such  authorized  issuers  in undertaking the administration and
  financing of the projects authorized pursuant to subdivision one of this
  section, the director of the budget is hereby authorized to  enter  into
  one  or  more  service  contracts  with such authorized issuers, none of
  which shall exceed more than twenty years in duration, upon  such  terms
  and conditions as the director of the budget and such authorized issuers
  shall  agree,  so  as to annually provide to such authorized issuers, in
  the aggregate, a sum not to exceed the annual debt service payments  and
  related  expenses  required  for  the bonds and notes issued pursuant to
  this section.  Any  service  contract  entered  into  pursuant  to  this
  subdivision  shall  provide  that the obligation of the state to pay the
  amount therein provided shall not constitute a debt of the state  within
  the  meaning  of  any constitutional or statutory provision and shall be
  deemed executor only to the extent  of  monies  available  and  that  no
  liability shall be incurred by the state beyond the monies available for
  such  purposes,  subject to annual appropriation by the legislature. Any
  such contract or any payments made or  to  be  made  thereunder  may  be
  assigned or pledged by such authorized issuers as security for its bonds
  and notes, as authorized by this section.