S T A T E O F N E W Y O R K
________________________________________________________________________
7134
I N S E N A T E
March 15, 2010
___________
Introduced by Sen. OPPENHEIMER -- 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 establishing the
special education short-term revolving loan fund, and in relation to
authorizing the state comptroller to provide special education short-
term revolving loans to certain special act school districts or
approved special education providers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
99-t to read as follows:
S 99-T. SPECIAL EDUCATION SHORT-TERM REVOLVING LOAN FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE SPECIAL
EDUCATION SHORT-TERM REVOLVING LOAN FUND. SUCH FUND SHALL CONSIST OF
MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES IN
ORDER TO PROVIDE SUPPORT FOR PROMPT CONTRACTING WITH AND PAYMENT OF
NOT-FOR-PROFIT ORGANIZATIONS.
2. MONEYS OF THE FUND MAY BE EXPENDED PURSUANT TO SECTION ONE HUNDRED
SEVENTY-NINE-FF OF THIS CHAPTER. MONEYS SHALL BE PAID OUT OF THE FUND ON
THE AUDIT AND WARRANT OF THE STATE COMPTROLLER PURSUANT TO SUCH SECTION.
S 2. The state finance law is amended by adding a new section 179-ff
to read as follows:
S 179-FF. SPECIAL EDUCATION SHORT-TERM REVOLVING LOANS. 1. THE COMP-
TROLLER IS AUTHORIZED TO PROVIDE LOANS FROM THE SPECIAL EDUCATION
SHORT-TERM REVOLVING LOAN FUND ESTABLISHED BY SECTION NINETY-NINE-T OF
THIS CHAPTER TO ANY SPECIAL ACT SCHOOL DISTRICT OR APPROVED SPECIAL
EDUCATION PROVIDER SEEKING SHORT-TERM FINANCING FOR OPERATIONS, PENDING
TUITION PAYMENTS AS AUTHORIZED UNDER SECTION FORTY-FOUR HUNDRED FIVE OF
THE EDUCATION LAW. THE COMPTROLLER MAY PROVIDE SUCH A LOAN TO A SPECIAL
ACT SCHOOL DISTRICT OR APPROVED SPECIAL EDUCATION PROVIDER UPON RECEIPT
OF A WRITTEN AGREEMENT BETWEEN THE SCHOOL DISTRICT OR PROVIDER AND THE
STATE EDUCATION DEPARTMENT OUTLINING THE NEED FOR SUCH LOAN AND THE
ANTICIPATED TUITION PAYMENT OR TUITION RECONCILIATION THAT WILL PROVIDE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16395-01-0
S. 7134 2
REASONABLE ASSURANCES OF REPAYMENT THAT IS SATISFACTORY TO THE COMP-
TROLLER. SUCH LOAN SHALL NOT BEAR INTEREST AND REPAYMENT OF SUCH LOAN
MAY BE MADE UPON RECEIPT OF TUITION PAYMENTS AND RECONCILIATIONS, PURSU-
ANT TO THE WRITTEN AGREEMENT.
2. THE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN NINE-
TY DAYS OF THE EFFECTIVE DATE OF THIS SECTION FOR THE OPERATION OF THE
SPECIAL EDUCATION SHORT-TERM REVOLVING LOAN FUND WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO, THE CRITERIA TO BE USED IN DETERMINING SCHOOLS
AND SCHOOL DISTRICTS ELIGIBLE FOR ASSISTANCE; A PROCEDURE AND ANY NECES-
SARY INFORMATION THAT SCHOOLS AND SCHOOL DISTRICTS NEED TO SUBMIT APPLI-
CATIONS FOR A LOAN FROM THIS FUND; A SCHEDULE FOR REVIEWING SUCH APPLI-
CATIONS, NOT TO EXCEED THIRTY DAYS, AND NOTIFICATION TO AN APPLICANT OF
APPROVAL OR DISAPPROVAL OF SUCH APPLICATION FOR INTERIM FUNDING; AND ANY
OTHER REQUIREMENTS DEEMED NECESSARY BY THE COMPTROLLER.
S 3. This act shall take effect immediately.