Section 66-B. Issuance of certificates of participation

1. The director of
  the  budget  shall  determine  whether  the  use  of   certificates   of
  participation  to  finance  and/or  to refinance installment purchase or
  lease purchase contracts entered into by state departments, agencies  or
  the city university of New York is financially desirable and in the best
  interest  of  the  state.  Upon notice of such a determination the state
  comptroller  is  authorized,  pursuant  to  a  request  for   proposals,
  competitive  bidding  or  negotiated  placement,  to  cause to be issued
  certificates of participation  or  similar  instruments  that  represent
  undivided  proportionate  interests  in  periodic  payments due from the
  state to fund installment purchase or lease purchase  contracts  entered
  into,  or  expected  to  be  entered  into,  by  the  state departments,
  agencies, the city university of New York, or any  combination  thereof,
  pursuant  to the provisions of this article. The state comptroller shall
  issue regulations to govern the procedure he shall follow  in  any  sale
  conducted   pursuant   to   this  section  of  such  certificates.  Such
  regulations shall, in the case of all  sales,  require  that  notice  be
  published  in  a  definitive  trade  publication  of  the municipal bond
  industry published on each business day in the state of New York,  which
  is  generally  available to participants in the municipal bond industry,
  which notice shall state the terms of the sale. The  proceeds  from  the
  issuance  of such certificates may also be used for the establishment of
  reserve funds to secure  such  certificates,  the  cost  or  premium  of
  letters  of  credit, insurance or other credit enhancements, the cost of
  bond counsel, financial advisor, trustees and  paying  agent,  and  such
  other  related  expenses  as  may  be necessary for the issuance of such
  certificates. The foregoing shall not be construed to authorize the  use
  of  such  proceeds for the payment of personal service expenses of state
  departments, agencies or the city university of  New  York,  other  than
  payments made to the department of law for legal services rendered.
    2. The maximum term of certificates of participation issued to finance
  personal  property  shall be ten years. The maximum term of certificates
  of participation to finance  the  acquisition  or  improvement  of  real
  property  shall  be  twenty-five years. In no event, however, shall such
  term exceed the expected useful life of  the  property  being  financed,
  with  such  term  calculated  from the date of delivery, with respect to
  personal property, and the date  of  occupancy,  with  respect  to  real
  property.
    3.  Ten  days  prior  to the issuance of certificates of participation
  pursuant to this section, the director of the budget shall  transmit  to
  the  chairs  of  the  senate finance committee and the assembly ways and
  means committee a copy of the director of the  budget's  notice  to  the
  state  comptroller  pursuant  to this section. Such notice shall provide
  the following information pertaining to  the  personal  property  to  be
  financed by the certificates:
    1. The agency and program procuring the equipment.
    2. A brief description of the equipment.
    3. The estimated cost of the equipment if purchased outright.
    4. The estimated terms of such financings.
    5.  The estimated total lease or installment purchase payments for the
  equipment.
    6. The estimated lease or installment purchase payments by fiscal year
  for the current fiscal year and the next five fiscal years.
    7. The anticipated source  of  funds  to  make  lease  or  installment
  purchase payments.
    8.  Those  items  of  equipment  not  anticipated  to be financed upon
  enactment of the budget for such fiscal year.

  Before the issuance of the certificates the director of the  budget  may
  amend such notice and shall transmit a copy of the amended notice to the
  chairs  of  the  senate  finance  committee  and assembly ways and means
  committee. After the issuance of the certificates, the director  of  the
  budget  shall transmit to the chairs of the senate finance committee and
  assembly ways and means committee and the state comptroller  a  copy  of
  the  final  official statement accompanying such issuance and thereafter
  shall transmit quarterly reports  which  update  such  notices  to  such
  individuals.
    4.  Subject to the provisions of chapter fifty-nine of the laws of two
  thousand, but  notwithstanding  any  other  provisions  of  law  to  the
  contrary, the maximum amount of certificates of participation or similar
  instruments  representing  periodic  payments  due from the state of New
  York, issued on behalf of  state  departments  and  agencies,  the  city
  university  of  New  York and any other state entity otherwise specified
  after March thirty-first, two  thousand  three  shall  be  five  hundred
  sixty-four   million   dollars.   Such  amount  shall  be  exclusive  of
  certificates of participation or similar instruments issued  to  fund  a
  reserve  fund  or  funds,  costs  of  issuance and to refund outstanding
  certificates of participation.