Makes provisions for the construction and financing of facilities to be located on the campus of the United States Merchant Marine Academy

BILL NUMBER:A1544B

Title of bill

An act to amend the public authorities law, in relation to providing for the financing of certain facilities located on the campus of the United States Merchant Marine Academy

Purpose or general idea of bill

To authorize the Dormitory Authority to provide financing for the United States Maritime Resource Center to build lodging facilities.

Summary of specific provisions

Section one amends the Public Authori- ties Law by adding a new undesignated paragraph to paragraph b, subdivi- sion two of §1676 of the Public Health Law by including the United States Maritime Resource Center in the definition of "dormitory."

Section two amends the Public Authorities Law by adding a new undesig- nated paragraph to subdivision one of §1680 of the Public Health Law by including the United States Maritime Resource Center in the term "educa- tional institution."

Section three states that all contracts entered into by the dormitory authority with the United States Maritime Resource Center pursuant to this legislation will be considered state contracts for the purposes of Article 15-A of the Executive Law.

Justification

The USMMA is a federal service academy operated by the Maritime Administration in the United States Department of Transporta- tion (USDOT) that trains approximately 900 students to receive a United States Coast Guard license as a merchant marine officer and accept a commission as either a reserve or active duty officer of the armed forc- es, while at the same time providing them with an undergraduate degree. The GMATS is a world leader in providing professional education in mari- time activities, intermodal transportation, and logistics. The GMATS offers over 140 cutting edge education and training programs that are designed to benefit private-sector, military, and government profes- sionals in the maritime and transportation industries. The GMATS is a "non-appropriated fund instrumentality" (NAFI) of the USDOT. As such, the GMATS does not receive any federally appropriated funds, and its operating revenue is generated through tuition as well as room and board fees. As a NAFI, the GMATS is authorized to contract with private sector organizations in exchange for its consulting, education, and training services, and has developed partnership arrangements with over twenty prominent transportation associations and organizations including the American Bureau of Shipping, the Intermodal Association of North Ameri- ca, and the National Cargo Security Council.

Currently, the lodging facilities for the USMMA and the GMATS are not considered dormitories in the Public Authorities Law and as a result the Dormitory Authority of the State of New York (DASNY) is not authorized to grant them any bonds to assist in the construction of necessary dormitory facilities. As a NAFI, this is a particular hardship for GMATS in particular. Often, the GMATS has to put trainees up in hotels at some

distance from the campus in order to house them. Since GMATS does not receive any federal appropriations, the construction of new lodging facilities is a considerable financial burden on the institution. This legislation will allow for DASNY to issue tax-exempt bonds to the United States Maritime Resource Center, a non-profit created to assist the USMMA and GMATS, for the construction of an educational and lodging facility.

Prior legislative history

2008: A. 11437A

Fiscal implications

None

Effective date

This act shall take affect immediately.