Bill Text: NY S09743 | 2023-2024 | General Assembly | Introduced

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Bill Title: Renames the New York state musical instrument revolving fund to the New York state music grant fund; directs that monies of the fund shall be used to provide assistance for grants to not-for-profit symphony orchestras and/or other not-for-profit musical entities incorporated in the state and organized for the purpose of the presentation of performing arts for the benefit of the public; removes certain guidelines.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-04 - referred to tourism, parks, arts and sports development [S09743 Detail]

Download: New_York-2023-S09743-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9743

                    IN SENATE

                                      May 28, 2024
                                       ___________

        Introduced  by  Sen.  SERRANO  --  (at request of the NYS Council on The
          Arts) -- read twice and  ordered  printed,  and  when  printed  to  be
          committed to the Committee on Finance

        AN ACT to amend the state finance law, in relation to the New York state
          music grant fund

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

     1    Section 1. Section 97-v of the state finance law, as added by  chapter
     2  851  of  the laws of 1983, subdivision 3 as amended by chapter 83 of the
     3  laws of 1995, is amended to read as follows:
     4    § 97-v. New York state  [musical  instrument  revolving]  music  grant
     5  fund.  1.  There is hereby established in the custody of the state comp-
     6  troller, a special fund to be known as  the  "New  York  state  [musical
     7  instrument revolving] music grant fund".
     8    2.  The fund shall consist of all monies appropriated for its purpose,
     9  all monies transferred to such fund  pursuant  to  law  and  all  monies
    10  required  by  the provisions of this section or any other law to be paid
    11  into or credited to this fund, including all monies received by the fund
    12  or donated to it. The total of monies deposited as a result of appropri-
    13  ations from state funds into this fund shall not exceed the sum of  five
    14  hundred  thousand dollars. Monies in the fund shall be kept separate and
    15  shall not be commingled with any other monies otherwise appropriated  or
    16  received except as hereby provided.
    17    3.  Monies  of the fund, when allocated, shall be available to the New
    18  York state council on the arts for the purpose of providing  assistance,
    19  excluding  administrative  costs,  for  [the loan, lease and purchase of
    20  musical instruments and other related property and equipment, as  herein
    21  provided,  by] grants to not-for-profit symphony orchestras and/or other
    22  not-for-profit musical entities incorporated in the state and  organized
    23  for  the  purpose of the presentation of performing arts for the benefit
    24  of the public and which have been approved pursuant to guidelines estab-
    25  lished by the council. Such monies shall also be available for  adminis-
    26  trative costs of the council pursuant to approval by the director of the
    27  budget. [Notwithstanding any other inconsistent provisions of this chap-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14277-01-4
        S. 9743                             2

     1  ter,  should  the  council determine that there is a compelling need for
     2  the loan, lease or purchase of property or equipment other than  musical
     3  instruments  by not-for-profit symphony orchestras and/or other not-for-
     4  profit  musical entities incorporated in the state and organized for the
     5  purpose of the presentation of performing arts for the  benefit  of  the
     6  public, and upon approval of the director of the budget, the council may
     7  assist  such organization in acquiring such equipment in accordance with
     8  guidelines established by the council. The council shall  contract  with
     9  one  or more not-for-profit entities which shall distribute such monies,
    10  however, in no case shall monies of the fund be distributed nor shall  a
    11  contract  to  distribute  such  monies be approved unless the fund shall
    12  have sufficient monies to effectuate all such approved distributions and
    13  contracts.
    14    Purchases, leases and loans of musical instruments and other equipment
    15  shall not be approved or effected if such purchases, leases or loans are
    16  eligible for financing from any other state assistance program.]
    17    4. [The state council on the arts shall establish guidelines necessary
    18  to administer the fund. Guidelines shall include, but not be limited to:
    19  qualifications and conditions for assistance, which may  require  public
    20  service  performances,  terms  of lease or installment sale payments and
    21  finance charges  on  installment  sales  at  rates  of  interest  which,
    22  notwithstanding any other provision of law, shall not be less than three
    23  per  cent per annum nor more than ten per cent per annum, provisions for
    24  insurance of the instrument or other equipment, provisions for necessary
    25  security agreement arrangements, and any other terms and conditions  the
    26  council  may  require as necessary to properly effectuate the provisions
    27  of this section.
    28    5. The not-for-profit entity of entities with whom the  state  council
    29  on the arts has contracted pursuant to subdivision three of this section
    30  shall  enter  into  contractual arrangements with applicants approved by
    31  the council. All contracts must be approved by the state council on  the
    32  arts  and the comptroller prior to the distribution of any monies there-
    33  under. Such contracts shall assure that  the  not-for-profit  entity  or
    34  entities   retain  title  to  the  instrument  or  equipment  until  the
    35  provisions and intent of this section are satisfied.
    36    6. Notwithstanding any other provisions of law, should  a  default  in
    37  payment  of  monies  for the purchase or lease of an instrument or other
    38  equipment occur, the council shall so notify  the  comptroller  and  the
    39  attorney  general  who  shall  take  such steps as may be necessary. The
    40  not-for-profit entity or entities,  after  such  notification  is  made,
    41  shall  take steps to effect repossession regardless of whether any note,
    42  memorandum, instrument or other writing has been recorded or  regardless
    43  of  whether any other person has notice of such possessory rights to the
    44  instrument or equipment. Any contract between the not-for-profit  agency
    45  or  agencies  and  a  not-for-profit symphony orchestra or other musical
    46  entity authorized by this article, shall assure the  right  and  provide
    47  guarantees for such repossession. Subsequent to the taking of possession
    48  of the instrument or equipment, the comptroller or not-for-profit agency
    49  or agencies may offer the same for sale at public auction to the highest
    50  bidder pursuant to guidelines established by the comptroller.
    51    7.  The comptroller is authorized to deduct the difference between the
    52  purchaser's or lessee's  outstanding  obligation  at  the  time  of  the
    53  auction provided for in subdivision five of this section, and the amount
    54  realized from that auction, after deductions for all necessary and prop-
    55  er  costs of the auction are made, from any other grant or other assist-
    56  ance approved by the council on the arts for that purchaser. The differ-
        S. 9743                             3

     1  ence deducted by the comptroller and the net amount  realized  from  the
     2  auction  shall  be  deposited  in  the New York state musical instrument
     3  revolving fund.
     4    8.]  Nothing contained herein shall prevent the council from receiving
     5  grants, gifts or bequests for the purposes of the  fund  as  defined  in
     6  this section and depositing them into the fund according to law.
     7    [9.  The state council on the arts shall provide by September first of
     8  each year, to the governor, the temporary president of the  senate,  the
     9  speaker  of  the  assembly, the chairman of the senate finance committee
    10  and the chairman of the assembly ways  and  means  committee,  a  report
    11  containing guidelines and amendments established by the state council on
    12  the  arts  and a complete financial statement including, but not limited
    13  to, monies allocated, collected, transferred or otherwise paid or  cred-
    14  ited  to  the  fund. A projected schedule of disbursements, receipts and
    15  needs of the fund for the next fiscal year shall  be  included  in  each
    16  report.  In addition, any amendments to the guidelines shall be provided
    17  to the above listed individuals within thirty days of  their  establish-
    18  ment by the state council on the arts.
    19    10.] 5. No monies shall be payable from this fund, except on the audit
    20  and  warrant  of  the comptroller on vouchers certified and submitted by
    21  the [chairman of the] state council on the arts.
    22    § 2. This act shall take effect immediately.