Bill Text: NY S06795 | 2021-2022 | General Assembly | Introduced

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Bill Title: Authorizes industrial development agencies to finance certain facilities for the small city school districts; permits the financing, re-financing or reimbursement of the costs of the acquisition, design, construction, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise providing for such facilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO EDUCATION [S06795 Detail]

Download: New_York-2021-S06795-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6795

                               2021-2022 Regular Sessions

                    IN SENATE

                                      May 17, 2021
                                       ___________

        Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Education

        AN ACT to amend the education law and  the  general  municipal  law,  in
          relation  to  authorizing  industrial  development agencies to finance
          certain facilities for the small city school districts

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

     1    Section  1.  Section  2503 of the education law is amended by adding a
     2  new subdivision 22 to read as follows:
     3    22. Shall authorize small city school districts to enter into  leases,
     4  subleases  or  any other agreements with industrial development agencies
     5  for the financing, re-financing or reimbursement of  the  costs  of  the
     6  acquisition,   design,   construction,  reconstruction,  rehabilitation,
     7  improvement, furnishing and equipping of, or  otherwise  providing  for,
     8  school  district capital facilities in accordance with the provisions of
     9  article eighteen-A of the general municipal law.
    10    § 2. Section 858 of the general municipal law is amended by  adding  a
    11  new subdivision 20 to read as follows:
    12    (20)  (a)  To  enter  into agreements with small city school districts
    13  including but not limited to, leases and subleases  for  the  financing,
    14  re-financing  or  reimbursement of the costs of the acquisition, design,
    15  construction, reconstruction,  rehabilitation,  improvement,  furnishing
    16  and  equipping  of,  or otherwise providing for, school district capital
    17  facilities. For purposes of this subdivision, agency shall have the same
    18  meaning as subdivision one of section eight hundred fifty-four  of  this
    19  title  and shall include the industrial development agencies established
    20  pursuant to titles eleven and fifteen of article  eight  of  the  public
    21  authorities law.
    22    (b) All contracts entered into by an agency pursuant to the provisions
    23  of  this  subdivision  shall  be deemed to be state contracts within the
    24  meaning of that term as set forth in article fifteen-A of the  executive

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11488-02-1
        S. 6795                             2

     1  law,  and  the agency shall be deemed, for the purposes of this subdivi-
     2  sion, a contracting agency as the term is used in such article.
     3    (c)  No  lease,  sublease or other agreement by and between the school
     4  district of any small city and an agency for the purpose of financing or
     5  re-financing school district capital facilities or school district capi-
     6  tal equipment pursuant to  the  provisions  of  this  subdivision  shall
     7  constitute  indebtedness for the purposes of section 104.00 of the local
     8  finance law.
     9    (d) Any such lease, sublease, or other agreement shall not  constitute
    10  or  create  indebtedness  of  the  state  or a political subdivision for
    11  purposes of article seven or eight of the state constitution or  section
    12  20.00  of  the  local finance law, shall be deemed executory only to the
    13  extent of money appropriated annually therefor by the state or political
    14  subdivision and shall not constitute a contractual obligation in  excess
    15  of the amounts so appropriated; provided, however, that the total amount
    16  of  unpaid  payments  due under any such lease, sublease or agreement on
    17  account of principal due on bonds issued by an agency shall be deemed to
    18  be indebtedness within the meaning of subdivision three of  paragraph  a
    19  of section 135.00 of the local finance law except to the extent that any
    20  portion  of the indebtedness, if issued by the school district, would be
    21  excluded pursuant to section 136.00 of the local finance law.
    22    (e) A small city school district shall have the full power and author-
    23  ity to enter into such leases, subleases, or any other agreements  under
    24  this  subdivision with other small city school districts for the purpose
    25  of jointly contracting for such indebtedness.
    26    § 3. This act shall take effect immediately.