S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2458

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2009
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Libraries and Education Technology

AN ACT to amend the education law and the state finance law, in relation
  to establishing a public library revolving loan fund

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The education law is amended by adding a new section 273-b
to read as follows:
  S 273-B.  PUBLIC LIBRARY REVOLVING LOAN PROGRAM. 1.  THE  COMMISSIONER
SHALL  ESTABLISH AND MAINTAIN A PUBLIC LIBRARY REVOLVING LOAN PROGRAM TO
PROVIDE LOANS TO LIBRARIES AND LIBRARY SYSTEMS FOR THE  PURPOSES  DESIG-
NATED  IN  THIS  PART.  NOTWITHSTANDING THE PROVISIONS OF ANY LAW TO THE
CONTRARY, STATE FINANCIAL ASSISTANCE IN  THE  FORM  OF  A  LOAN  MAY  BE
PROVIDED FOR UP TO FIFTY PERCENT OF THE APPROVED COSTS (EXCLUDING FEASI-
BILITY  STUDIES,  PLANS  OR SIMILAR ACTIVITIES) OF ELIGIBLE PROJECTS FOR
CAPITAL CONSTRUCTION BY AN ELIGIBLE PUBLIC, FREE ASSOCIATION  OR  INDIAN
LIBRARY,  OR  BY  A  PUBLIC,  SCHOOL  OR  REFERENCE AND RESEARCH LIBRARY
RESOURCE SYSTEM, AS PROVIDED IN THIS SECTION. IN AREAS OF HIGH NEED,  AS
DEFINED  IN  REGULATIONS  PROMULGATED  BY  THE  COMMISSIONER PURSUANT TO
SUBDIVISION ELEVEN OF THIS SECTION, A LOAN OF UP TO SEVENTY-FIVE PERCENT
OF APPROVED COSTS  (EXCLUDING  FEASIBILITY  STUDIES,  PLANS  OR  SIMILAR
ACTIVITIES)  MAY  BE  APPROVED BY THE COMMISSIONER. A LIBRARY OR LIBRARY
SYSTEM MAY SUBMIT AN APPLICATION  FOR  STATE  FINANCIAL  ASSISTANCE  FOR
ELIGIBLE PROJECTS AS PROVIDED IN THIS SECTION.
  2. THE COMMISSIONER, AFTER REVIEW OF THE PROGRAMMATIC AND FISCAL NEEDS
AND  RESOURCES  OF  THE PROJECT AND THE LIBRARY OR LIBRARY SYSTEM, SHALL
MAKE A DETERMINATION, SUBJECT TO THE RESTRICTIONS, LIMITATIONS,  RESPON-
SIBILITIES  AND  REQUIREMENTS OF THIS SECTION, AS TO THE AMOUNT OF STATE
FINANCIAL ASSISTANCE THAT THE LIBRARY OR LIBRARY SYSTEM MAY RECEIVE  FOR
ANY  AMOUNT  UP  TO  AND  INCLUDING  THE AMOUNT OF FIVE HUNDRED THOUSAND
DOLLARS. ANY FINANCIAL  ASSISTANCE  MAY  BE  PROVIDED  FROM  THE  PUBLIC

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01581-01-9
              

A. 2458                             2

LIBRARY REVOLVING LOAN FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-H
OF  THE STATE FINANCE LAW. INTEREST IN ANY SUCH LOAN SHALL BE SET AT TWO
POINTS BELOW THE PRIME RATE.  ELIGIBLE PROJECTS SHALL INCLUDE:
  A. CONSTRUCTION OF A NEW FACILITY FOR LIBRARY PURPOSES;
  B.  IMPROVEMENT, EXPANSION OR REHABILITATION OF A BUILDING FOR LIBRARY
PURPOSES;
  C. IMPROVEMENT, EXPANSION OR REHABILITATION OF  EXISTING  BUILDING  OR
BUILDINGS TO PROVIDE FOR HANDICAPPED ACCESSIBILITY;
  D. SUCH OTHER PROJECTS OF SUBSTANTIVE CHARACTER AS ARE IN KEEPING WITH
THE SPIRIT AND INTENT OF THIS SECTION.
  NO  PROJECT SHALL BE CONSIDERED ELIGIBLE IF IT IS APPROVED FOR FINANC-
ING FROM ANY OTHER STATE ASSISTANCE PROGRAM, EXCEPTING AID  FOR  LIBRARY
CONSTRUCTION  AWARDED PURSUANT TO SECTION TWO HUNDRED SEVENTY-THREE-A OF
THIS ARTICLE.
  3. EACH APPLICATION FOR FINANCIAL ASSISTANCE SHALL BE SUBMITTED TO THE
COMMISSIONER BY THE BOARD OF TRUSTEES OF THE LIBRARY OR LIBRARY  SYSTEM.
EACH APPLICATION SHALL:
  A.  DEMONSTRATE  THAT ADEQUATE OPERATING SUPPORT AND RESOURCES WILL BE
AVAILABLE AT THE COMPLETION OF THE PROJECT TO  PROVIDE  AN  IMPROVED  OR
INCREASED LEVEL OF SERVICE;
  B.  CONTAIN  VERIFICATION  IN  SUCH  FORM  AS MAY BE ACCEPTABLE TO THE
COMMISSIONER THAT THE REMAINING COST OF THE PROJECT, EXCLUSIVE OF  STATE
FINANCIAL ASSISTANCE, HAS BEEN OR WILL BE OBTAINED;
  C.  DEMONSTRATE  THAT  THE  PROJECT  WILL BE COMPLETED PROMPTLY AND IN
ACCORDANCE WITH THE APPLICATION;
  D. EITHER DEMONSTRATE THAT THE OPERATION OF THE ORGANIZATION  WILL  BE
MADE MORE ECONOMICAL OR EFFICIENT AS A CONSEQUENCE OF APPROVAL OR DEMON-
STRATE  THAT  HEALTH  AND  SAFETY CONCERNS WILL BE REPAIRED OR ACCESS TO
HANDICAPPED PROVIDED;
  E. DEMONSTRATE THAT THE PROJECT WILL BE CONDUCTED IN  ACCORDANCE  WITH
APPLICABLE FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS;
  F. DEMONSTRATE THAT, WHERE APPROPRIATE, COMPETITIVE BIDDING PROCEDURES
WILL  BE  FOLLOWED AS REQUIRED BY LAW, OR PROVIDE SUCH OTHER EVIDENCE OF
COMPETITION AS SHALL BE SATISFACTORY TO THE COMMISSIONER;
  G. PROVIDE AN ASSESSMENT OF THE USEFUL LIFE OF THE PROJECT,  AND  SUCH
RECOMMENDATION,  ANALYSIS  OF  NEEDS  OR  FEASIBILITY  STUDIES AS MAY BE
REQUIRED BY THE COMMISSIONER PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF
THIS SECTION THE TERM "USEFUL LIFE" SHALL MEAN SUCH METHOD OF  CALCULAT-
ING  THE WORTH OF A PROJECT AND THE AMOUNT OF ANNUAL DEPRECIATION NECES-
SARY FOR EFFECTING CONTRACTS UNDER  THIS  SECTION  AS  THE  COMMISSIONER
SHALL  REQUIRE  AFTER  CONSULTATION  WITH THE STATE COMPTROLLER AND UPON
APPROVAL BY THE STATE DIVISION OF THE BUDGET;
  H. DEMONSTRATE THAT THE PROJECT WILL COMPLY WITH  THE  REQUIREMENT  OF
ARTICLE  FIFTEEN-A OF THE EXECUTIVE LAW RELATING TO THE PARTICIPATION BY
MINORITY GROUP MEMBERS AND WOMEN;
  I. PROVIDE SUCH OTHER INFORMATION AS MAY BE REQUIRED  BY  THE  COMMIS-
SIONER.
  4. EACH LIBRARY OR LIBRARY SYSTEM MAY SUBMIT NO MORE THAN ONE APPLICA-
TION  ANNUALLY.  ANY  OTHER  PROVISION  OF  THIS SECTION TO THE CONTRARY
NOTWITHSTANDING, NO LIBRARY OUTLET SHALL RECEIVE STATE FINANCIAL ASSIST-
ANCE UNDER THIS SECTION FOR  MORE  THAN  ONE  YEAR  IN  ANY  CONSECUTIVE
THREE-YEAR PERIOD.
  5.  ANY  OTHER  PROVISION  OF  LAW  OR OF THIS SECTION TO THE CONTRARY
NOTWITHSTANDING, STATE FINANCIAL ASSISTANCE SHALL NOT BE PROVIDED PURSU-
ANT TO THIS SECTION UNTIL THE COMMISSIONER HAS:

A. 2458                             3

  A. CONSIDERED THE USEFUL LIFE OF THE ELIGIBLE PROJECT AS SUCH TERM  IS
DEFINED IN PARAGRAPH G OF SUBDIVISION THREE OF THIS SECTION;
  B. DETERMINED THE AMOUNT OF STATE FINANCIAL ASSISTANCE TO BE PROVIDED;
AND
  C.  EXECUTED  AN  AGREEMENT TO PROVIDE SUCH ASSISTANCE. SUCH AGREEMENT
SHALL BE EXECUTED BY THE COMMISSIONER AND THE LIBRARY OR LIBRARY SYSTEM.
ANY SUCH AGREEMENT SHALL PROVIDE FOR THE CREATION OF  A  LIEN  OR  OTHER
SECURITY  INTEREST  OR  SUCH OTHER GUARANTEE AS SHALL BE SATISFACTORY TO
THE COMMISSIONER TO ASSURE REPAYMENT OF  FINANCIAL  ASSISTANCE  PROVIDED
UNDER  THIS  SECTION.  SUCH  AGREEMENT SHALL ASSURE THAT THE LENGTH OF A
LOAN SHALL NOT EXCEED THE USEFUL LIFE OF THE PROJECT AND SHALL  INCLUDE,
IN  ADDITION  TO  SUCH  OTHER PROVISIONS AS THE COUNCIL MAY REQUIRE, THE
FOLLOWING:
  (I) THE AMOUNT OF FINANCIAL ASSISTANCE, THE TERMS AND CONDITIONS  UPON
WHICH  IT  IS  PROVIDED, THE USEFUL LIFE OF THE ELIGIBLE PROJECT AND THE
METHOD OF DEPRECIATING THE ELIGIBLE PROJECT FOR PURPOSES OF  THE  REPAY-
MENT PROVISIONS OF THE AGREEMENT;
  (II)  A  REQUIREMENT  THAT,  UPON A FINDING BY THE COMMISSIONER THAT A
PROJECT HAS NOT BEEN COMPLETED, OR HAS NOT BEEN COMPLETED IN  ACCORDANCE
WITH  THE  TERMS  OF THE AGREEMENT, THE OUTSTANDING BALANCE OF FINANCIAL
ASSISTANCE PROVIDED IN THE FORM OF A LOAN SHALL BE REPAID TO THE COMMIS-
SIONER BY THE GUARANTOR, PROVIDED THAT UPON A SHOWING OF GOOD  CAUSE  BY
THE  ORGANIZATION  THE  COMMISSIONER  SHALL  GRANT AN EXTENSION OF UP TO
NINETY DAYS FROM THE DATE OF  SUCH  FINDING  TO  ALLOW  THE  LIBRARY  OR
LIBRARY  SYSTEM  TO COMPLETE THE PROJECT IN ACCORDANCE WITH THE TERMS OF
THE AGREEMENT, AND FURTHER PROVIDED THAT THE COMMISSIONER SHALL  PROVIDE
NO  MORE THAN TWO SUCH EXTENSIONS FROM THE DATE OF SUCH FINDING TO ALLOW
THE LIBRARY OR LIBRARY SYSTEM TO COMPLETE THE PROJECT IN ACCORDANCE WITH
THE TERMS OF THE AGREEMENT.
  6. IN ANY CASE IN WHICH STATE FINANCIAL  ASSISTANCE  IS  PROVIDED  THE
FOLLOWING  SHALL  BE  INCLUDED  IN THE AGREEMENT: A REQUIREMENT THAT THE
LIBRARY OR LIBRARY SYSTEM SHALL OBTAIN, IN ADDITION TO SUCH OTHER  SECU-
RITY  AS  MAY  BE REQUIRED BY THE COMMISSIONER OR BY OTHER PROVISIONS OF
LAW, AN UNDERTAKING OR SURETY BOND FROM ANY PERSON OR ENTITY  WHICH  HAS
CONTRACTED TO PERFORM WORK ON AN APPROVED PROJECT TO ASSURE THE FAITHFUL
PERFORMANCE  OF  SUCH PROJECT AND/OR A LABOR AND/OR MATERIAL BOND AS MAY
BE APPROPRIATE.
  7. ANY LIEN, SECURITY INTEREST OR GUARANTEE ESTABLISHED CREATED  UNDER
THE  PROVISIONS  OF  SUBDIVISION FIVE OR SIX OF THIS SECTION SHALL BE IN
ADDITION TO ANY OTHER RIGHTS OR OBLIGATIONS OF  THE  COMMISSIONER  UNDER
THE PROVISIONS OF THE LIEN LAW OR ANY OTHER LAW.
  8.  THE COMMISSIONER SHALL CAUSE TO BE FILED AND TO BE RECORDED IN THE
OFFICE OF THE COUNTY CLERK IN THE COUNTY WHERE THE SUBJECT  PROPERTY  IS
SITUATED  ANY  LIEN  OR  OTHER  SECURITY  INTEREST AS MAY BE REQUIRED TO
ASSURE  REPAYMENT  OF  FINANCIAL  ASSISTANCE  IN  ACCORDANCE  WITH   THE
PROVISIONS  OF  THIS  SECTION.  THE DEPARTMENT OF LAW SHALL PROVIDE SUCH
ASSISTANCE AS THE COMMISSIONER MAY REQUIRE TO  CREATE  AND  PERFECT  ANY
SUCH LIENS OR OTHER SECURITY INTERESTS.
  9. IN APPROVING APPLICATIONS PURSUANT TO THIS SECTION, THE COMMISSION-
ER  SHALL  SEEK  TO  INSURE THAT SIXTY PERCENT OF THE FUNDS APPROPRIATED
PURSUANT TO THIS SECTION SHALL BE MADE AVAILABLE IN SUCH A MANNER AS  TO
INSURE  THAT THE RATIO OF THE AMOUNT RECEIVED WITHIN EACH PUBLIC LIBRARY
SYSTEM TO THE WHOLE OF THE FINANCIAL ASSISTANCE MADE AVAILABLE  PURSUANT
TO  THIS  SUBDIVISION  IS NO GREATER THAN THE RATIO OF THE POPULATION OF
SUCH PUBLIC LIBRARY SYSTEM TO THE POPULATION OF  THE  STATE.  ANY  FUNDS
MADE  AVAILABLE PURSUANT TO THIS SECTION WHICH, BY DECEMBER THIRTY-FIRST

A. 2458                             4

OF THE YEAR IN WHICH THIS SECTION SHALL HAVE BECOME A LAW,  AND  OCTOBER
THIRTY-FIRST OF EACH YEAR THEREAFTER, ARE DECLINED BY OR WHICH CANNOT BE
USED  BY SUCH LIBRARIES OR LIBRARY SYSTEMS, AS DETERMINED BY THE COMMIS-
SIONER,  SHALL  BE MADE AVAILABLE TO OTHER ELIGIBLE LIBRARIES OR LIBRARY
SYSTEMS FOR ELIGIBLE PROJECTS.
  10. IN THE EVENT AN ELIGIBLE LIBRARY OR LIBRARY SYSTEM FAILS TO MAKE A
PAYMENT ON A LOAN OR FAILS TO MAKE ANY OTHER PAYMENT REQUIRED UNDER  THE
PROVISIONS  OF  THIS  SECTION,  THE  COMMISSIONER SHALL INFORM THE COMP-
TROLLER OF SUCH FAILURE AND OF THE  AMOUNT  OVERDUE,  WHICH  AMOUNT  THE
COMPTROLLER  MAY  RECOVER  FROM  ANY  PAYMENTS DUE FROM THE STATE TO THE
ELIGIBLE ORGANIZATION, INCLUDING LOCAL ASSISTANCE PAYMENTS.
  11. THE COMMISSIONER SHALL ADOPT GUIDELINES WITHIN ONE HUNDRED  EIGHTY
DAYS  OF  THE EFFECTIVE DATE OF THIS SECTION, AND SHALL PROMULGATE RULES
AND REGULATIONS NOT LATER THAN SEPTEMBER FIRST, TWO THOUSAND NINE AS ARE
NECESSARY TO CARRY OUT THE PURPOSES AND PROVISIONS OF THIS SECTION.   IN
ADDITION  TO  ANY  OTHER  REQUIREMENTS  SET  FORTH  BY THIS SECTION, THE
COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE RECOUPMENT OF  FINANCIAL
ASSISTANCE  PROVIDED IN THE EVENT THAT A PROJECT IS NOT COMPLETED OR NOT
COMPLETED AS PROPOSED BY THE APPLICANT LIBRARY OR LIBRARY SYSTEM. COPIES
OF SUCH RULES AND REGULATIONS SHALL BE  PROVIDED  AT  LEAST  SIXTY  DAYS
PRIOR  TO THE TIME THEY SHALL BE EFFECTIVE TO THE SENATE FINANCE COMMIT-
TEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  12. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR, THE TEMPORARY PRES-
IDENT OF THE SENATE, THE SPEAKER OF THE  ASSEMBLY,  THE  CHAIRS  OF  THE
SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS AND MEANS COMMITTEE NOT LATER
THAN  JANUARY FIFTEENTH OF EACH YEAR CONCERNING THE AMOUNTS APPROPRIATED
AND EXPENDED PURSUANT  TO  THIS  SECTION,  THE  NUMBER  OF  APPLICATIONS
RECEIVED,  THE TOTAL AMOUNT OF FINANCIAL ASSISTANCE REQUESTED, THE TOTAL
NUMBER OF APPLICATIONS FUNDED, THE AMOUNT OF FUNDING PROVIDED, AND  SUCH
OTHER  INFORMATION  AS  THE  CHAIR SHALL DEEM APPROPRIATE, INCLUDING ANY
RECOMMENDATIONS FOR PROGRAM IMPROVEMENT, RECOMMENDATIONS FOR  INCREASING
THE  TOTAL  AMOUNT OF FUNDING FROM STATE AND NON-STATE SOURCES AVAILABLE
TO INCREASE TOTAL FUNDS FOR PROJECTS  AVAILABLE  TO  THE  LIBRARIES  AND
LIBRARY  SYSTEMS  OF  THIS  STATE,  IN PARTICULAR FOR RURAL AND MINORITY
COMMUNITIES, AND IDENTIFICATION OF AND PROPOSALS FOR  REMOVING  BARRIERS
OR LIMITS FACED BY COMMUNITIES IN ACCESSING THE PROGRAM OR IN MAXIMIZING
USE OF FUNDS PROVIDED HEREUNDER.
  S  2. The state finance law is amended by adding a new section 91-h to
read as follows:
   S 91-H. PUBLIC LIBRARY REVOLVING LOAN FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS  THE  "PUBLIC
LIBRARY REVOLVING LOAN FUND".
  2.  THE PUBLIC LIBRARY REVOLVING LOAN FUND SHALL CONSIST OF ALL MONIES
APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM THE GENERAL FUND  OR
ANY  OTHER  SOURCE  PURSUANT  TO  LAW,  INCLUDING THE REPAYMENT OF LOANS
PROVIDED   TO   MUNICIPALITIES   PURSUANT   TO   SECTION   TWO   HUNDRED
SEVENTY-THREE-B OF THE EDUCATION LAW.
  S 3. This act shall take effect July 1, 2009.