§ 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 seven hundred eighty-four million two hundred eighty-five thousand 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.