Bill Text: NY A09143 | 2021-2022 | General Assembly | Introduced

New York Assembly Bill 9143 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Creates the New York state private not-for-profit special education schools revolving loan fund to provide zero interest loans to private not-for-profit special education schools in NYC to cover a portion of tuition costs for up to two years; appropriates two hundred million dollars.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Introduced - Dead) 2022-03-04 - print number 9143b [A09143 Detail]

Download: New_York-2021-A09143-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                          9143

                   IN ASSEMBLY

                                    January 31, 2022
                                       ___________

        Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
          Committee on Education

        AN ACT to amend the education law, in relation to creating the New  York
          state  private not-for-profit special education schools revolving loan
          fund; and making an appropriation therefor

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The education law is amended by adding a new section 4409
     2  to read as follows:
     3    § 4409. Revolving loan fund for private not-for-profit special  educa-
     4  tion  schools  in  cities  with  a population of one million or more. 1.
     5  There is hereby established a fund to be known as  the  New  York  state
     6  private  not-for-profit  special  education schools revolving loan fund.
     7  Such fund shall consist of moneys made available pursuant  to  appropri-
     8  ation  and any other sources in order to provide support to private not-
     9  for-profit schools for special education students of school age approved
    10  pursuant to section forty-four hundred four of this  article.  The  fund
    11  shall  be  administered  by  the department; provided, however, that the
    12  commissioner may enter into an agreement with a bank or trust company to
    13  administer loans under this section.
    14    2. (a) Loans under this section shall  be  interest  free,  except  as
    15  otherwise  provided  in this subdivision.   A school shall be allowed to
    16  submit one loan request application every two years. The lending  period
    17  shall  be  a maximum of twenty-four months. A school shall submit to the
    18  department a loan repayment schedule detailing how the full amount  will
    19  be  repaid  within  the  final ninety days of the twenty-four month loan
    20  period and complete all payments as per that schedule. If a school fails
    21  to comply with such schedule it will not receive any new  funding  until
    22  the  loan  is  fully  repaid.  An interest rate of six percent per annum
    23  shall be charged for each month that a loan payment is in arrears.
    24    (b) All new loan request applications shall be submitted no later than
    25  the last day of the twenty-first month in  the  twenty-four  month  loan
    26  period.  The  comptroller shall determine if available funds can satisfy
    27  the loan requests of all such eligible  applications  by  the  first  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11685-08-1
        A. 9143                             2

     1  August  of  that  year.  If it is determined that available funds cannot
     2  satisfy all eligible loan request  applications,  each  eligible  school
     3  shall  be  assigned  an  amount reduced proportionally. Each school that
     4  applied  shall  be  notified  of their eligibility and the dollar amount
     5  available to them by August twentieth of that year.
     6    3. A private not-for-profit special education school  shall  meet  the
     7  following  requirements  to  be eligible to be approved for a loan under
     8  this section:
     9    (a) A school shall be incorporated in New York state.
    10    (b) A school must have  a  current  enrollment  with  at  least  fifty
    11  percent  of students having an individualized education program (IEP) as
    12  defined in 20 U.S.C. § 1414(d).
    13    4. The loan amount to a school shall be limited to a  maximum  of  one
    14  hundred  percent  of  the  total  amount  of  the school district agreed
    15  tuition settlement offers in the prior year.
    16    5. For a pending payment to qualify for inclusion in the  loan  amount
    17  calculation:
    18    (a)  the  private  not-for-profit  special  education school must have
    19  accepted the student without collecting any  tuition  from  the  parents
    20  with  the  intent  of  seeking  a tuition settlement pursuant to section
    21  forty-four hundred four of this article. A  refundable  deposit  is  not
    22  considered tuition; and
    23    (b)  the payment must be on behalf of a student with an IEP as defined
    24  in 20 U.S.C. § 1414(d).
    25    6. The school district settlement offer or hearing  decision  for  one
    26  year of tuition must be for a minimum of forty thousand dollars.
    27    § 2. The sum of two hundred million dollars ($200,000,000), or so much
    28  thereof  as  may  be  necessary,  is hereby appropriated to the New York
    29  state private not-for-profit special education  schools  revolving  loan
    30  fund and made immediately available, for the purpose of carrying out the
    31  provisions of this act.
    32    § 3. This act shall take effect immediately.