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

                                  2956

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

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

AN ACT to amend the executive law, in relation to creating the New  York
  state  community service loan board and making an appropriation there-
  for

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

  Section  1.  The executive law is amended by adding a new article 26-C
to read as follows:
                               ARTICLE 26-C
               NEW YORK STATE COMMUNITY SERVICE LOAN BOARD
SECTION 751. DEFINITIONS.
        752. NEW YORK STATE COMMUNITY SERVICE LOAN BOARD.
        753. PURPOSES OF THE BOARD.
        754. GENERAL POWERS OF THE BOARD.
        755. SPECIAL POWERS OF THE BOARD.
        756. COOPERATION OF OTHER STATE AGENCIES.
        757. DETERMINATION OF ELIGIBILITY FOR  PAYMENT  OF  INTEREST  ON
               MONEY OWED TO ELIGIBLE ORGANIZATIONS.
  S  751. DEFINITIONS. AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "BOARD" MEANS THE NEW  YORK  STATE  COMMUNITY  SERVICE  LOAN  BOARD
CREATED BY THIS ARTICLE.
  2.  "ELIGIBLE  ORGANIZATION"  MEANS ANY NOT-FOR-PROFIT AGENCY OR LOCAL
GOVERNMENT ENTITY PREVIOUSLY UNDER CONTRACT AND IN THE PROCESS OF RENEW-
ING,  ESTABLISHING  OR  PERFORMING  A  SUBSEQUENT  CONTRACT  TO  PERFORM
SERVICES  FOR A STATE AGENCY. SAID AGENCY OR LOCAL GOVERNMENT AGENCY MAY
NOT HAVE AN ANNUAL OPERATING BUDGET WHICH IS IN EXCESS  OF  ONE  MILLION
FIVE HUNDRED THOUSAND DOLLARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06989-01-3

S. 2956                             2
              

  3.  "SHORT TERM LOAN" MEANS A NO-INTEREST LOAN MADE BY THE BOARD TO AN
ELIGIBLE ORGANIZATION PURSUANT TO ANY TERMS OR CONDITIONS WHICH  MAY  BE
IMPOSED BY THE BOARD.
  S  752.  NEW  YORK STATE COMMUNITY SERVICE LOAN BOARD. 1. THE NEW YORK
STATE COMMUNITY SERVICE LOAN BOARD IS HEREBY CREATED TO HAVE  AND  EXER-
CISE  THE  POWERS, DUTIES AND PREROGATIVES PROVIDED BY THE PROVISIONS OF
THIS ARTICLE. THE BOARD SHALL CONSIST OF SEVEN MEMBERS TO  BE  APPOINTED
AS FOLLOWS: ONE MEMBER SHALL BE APPOINTED BY THE GOVERNOR AND ONE MEMBER
SHALL  BE  APPOINTED  BY  THE  STATE  COMPTROLLER,  ONE  MEMBER SHALL BE
APPOINTED BY THE MAJORITY LEADER OF THE  SENATE,  ONE  MEMBER  SHALL  BE
APPOINTED  BY  THE  MINORITY  LEADER  OF THE SENATE, ONE MEMBER SHALL BE
APPOINTED BY THE SPEAKER  OF  THE  ASSEMBLY  AND  ONE  MEMBER  SHALL  BE
APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY. THE SECRETARY OF STATE
SHALL  SERVE  AS A MEMBER AND SHALL BE THE CHAIRPERSON OF THE BOARD. THE
SECRETARY OF STATE SHALL APPOINT A DESIGNEE TO ACT IN THE PLACE  OF  THE
SECRETARY IN HIS OR HER ABSENCE. SUCH DESIGNEE SHALL HAVE ALL THE POWERS
GIVEN  TO  THE  SECRETARY  PURSUANT  TO THIS ARTICLE. THE BOARD SHALL BE
CREATED AND ADMINISTERED WITHIN THE NEW YORK STATE DEPARTMENT OF STATE.
  2. THE MEMBERS OF THE BOARD SHALL POSSESS SUFFICIENT EXPERTISE IN  THE
AREAS  OF  HOUSING, SOCIAL SERVICES, MENTAL HEALTH AND FISCAL MANAGEMENT
OF NOT-FOR-PROFIT AGENCIES. THE MEMBERS OF THE BOARD SHALL SERVE WITHOUT
SALARY BUT SHALL BE ENTITLED  TO  REASONABLE  REIMBURSEMENT  FOR  ACTUAL
COSTS  INCURRED  IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES PURSUANT TO
THIS SECTION, PROVIDED HOWEVER THAT SUCH MEMBERS ARE NOT,  AT  THE  TIME
SUCH  EXPENSES  ARE INCURRED, PUBLIC EMPLOYEES OR PUBLIC OFFICERS OTHER-
WISE ENTITLED TO SUCH REIMBURSEMENT.
  3. MEMBERS WHO ARE NEITHER PUBLIC OFFICERS NOR  PUBLIC  EMPLOYEES  MAY
ENGAGE  IN  PRIVATE  EMPLOYMENT  SUBJECT TO THE LIMITATIONS CONTAINED IN
SECTIONS SEVENTY-THREE AND SEVENTY-FOUR OF THE PUBLIC OFFICERS LAW.
  4. THE SECRETARY OF STATE OR AUTHORIZED REPRESENTATIVE MUST BE PRESENT
AT ALL TIMES IN ORDER THAT THE BOARD MAY CONDUCT ITS BUSINESS. IN  ADDI-
TION  TO CASTING HIS OR HER VOTE, THE SECRETARY, OR AUTHORIZED REPRESEN-
TATIVE, SHALL CAST ONE PROXY  VOTE  FROM  EACH  MEMBER  ABSENT  FROM  AN
ANNOUNCED  MEETING  OF THE BOARD. THE SECRETARY SHALL EXERCISE THE POWER
TO CAST PROXY VOTES ON ANY AND ALL MATTERS THAT COME BEFORE THE BOARD.
  5. NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF THIS  OR  ANY  OTHER
LAW,  GENERAL, SPECIAL OR LOCAL, NO OFFICER OR EMPLOYEE OF THE STATE, OR
OF ANY CIVIL DIVISION THEREOF, SHALL BE  DEEMED  TO  HAVE  FORFEITED  OR
SHALL  FORFEIT  HIS OR HER OFFICE OR EMPLOYMENT OR ANY BENEFITS PROVIDED
UNDER THE RETIREMENT AND SOCIAL SECURITY LAW BY REASON  OF  HIS  OR  HER
ACCEPTANCE  OF  MEMBERSHIP ON THE BOARD; PROVIDED, HOWEVER, A MEMBER WHO
HOLDS SUCH OTHER PUBLIC OFFICE OR EMPLOYMENT SHALL RECEIVE NO ADDITIONAL
COMPENSATION FOR SERVICES RENDERED PURSUANT TO THIS ARTICLE,  BUT  SHALL
BE  ENTITLED  TO  REIMBURSEMENT  FOR  HIS  OR  HER  ACTUAL AND NECESSARY
EXPENSES INCURRED IN THE PERFORMANCE OF SUCH SERVICES UP TO A MAXIMUM OF
TWENTY-FIVE DOLLARS PER DIEM.
  6. BY MARCH FIFTEENTH OF EACH YEAR, THE CHAIRPERSON OF THE BOARD SHALL
SUBMIT TO THE GOVERNOR AND THE LEGISLATURE, A  REPORT  OF  THE  PREVIOUS
YEAR'S ACTIVITIES OF THE BOARD INCLUDING, BUT NOT LIMITED TO, THE NUMBER
OF  LOAN  APPLICATIONS,  NAMES OF ELIGIBLE ORGANIZATIONS RECEIVING LOANS
TOGETHER WITH THE AMOUNT AND PURPOSE OF THE LOAN, ASSETS AND LIABILITIES
OF THE BOARD AND FUND BALANCES.
  7. THE BOARD SHALL MAKE EVERY EFFORT  TO  EFFICIENTLY  CARRY  OUT  ITS
PURPOSES AND SHALL USE THE STAFF AND TECHNICAL SERVICES OF THE OFFICE OF
THE  SECRETARY  OF STATE, AND WHEN NECESSARY, SHALL USE THE STAFF OF THE

S. 2956                             3

APPROPRIATE STATE AGENCY AS THE DESIGNATED CONTRACT AGENCY FOR  WHICH  A
LOAN IS BEING APPLIED.
  S 753. PURPOSES OF THE BOARD. THE BOARD SHALL PROVIDE SHORT TERM LOANS
TO ELIGIBLE NOT-FOR-PROFIT AGENCIES AND LOCAL GOVERNMENT ENTITIES OUT OF
MONIES  APPROPRIATED  IN  THE  GENERAL  FUND  TO THE CREDIT OF THE STATE
PURPOSES ACCOUNT.
  S 754. GENERAL POWERS OF THE BOARD. EXCEPT  AS  OTHERWISE  LIMITED  BY
THIS ARTICLE, THE BOARD SHALL HAVE THE POWER:
  1. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND INTERNAL MANAGE-
MENT, AND RULES AND REGULATIONS GOVERNING THE EXERCISE OF ITS POWERS AND
THE FULFILLMENT OF ITS PURPOSES UNDER THIS ARTICLE;
  2. TO MAKE LOANS TO ELIGIBLE ORGANIZATIONS;
  3. TO ENTER INTO CONTRACTS AND TO EXECUTE ALL INSTRUMENTS NECESSARY OR
CONVENIENT  OR  DESIRABLE  FOR THE PURPOSES OF THE BOARD OR TO CARRY OUT
ANY POWERS EXPRESSLY GIVEN IT IN THIS ARTICLE;
  4. TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY  REQUIRE  FOR  THE
PERFORMANCE  OF  ITS  DUTIES,  AND TO FIX AND DETERMINE THEIR QUALIFICA-
TIONS, DUTIES AND COMPENSATION;
  5. TO INVEST MONIES DEEMED BY THE BOARD AS REASONABLE, BUT IN NO EVENT
SHALL INVESTMENTS EVER EXCEED TEN PERCENT OF THE  TOTAL  AMOUNT  OF  THE
FUND;
  6.  TO MAINTAIN SUCH ACCOUNTS AS ARE NECESSARY FOR THE PURPOSES OF THE
BOARD AND AS THE BOARD MAY AUTHORIZE, PERMIT MONIES IN SUCH ACCOUNTS  TO
BE PAID OUT ON CHECKS ISSUED BY A DESIGNATED OFFICER OR EMPLOYEE SUBJECT
TO  THE  PERIODIC  AUDIT OF THE STATE COMPTROLLER AND HIS OR HER LEGALLY
AUTHORIZED REPRESENTATIVES;
  7. TO ACCEPT ANY GIFTS OR GRANTS OR LOANS OF FUNDS OR PROPERTY AND  TO
COMPLY,  SUBJECT  TO  THE PROVISIONS OF THIS ARTICLE, WITH THE TERMS AND
CONDITIONS THEREOF; AND
  8. TO DO ALL THINGS NECESSARY, CONVENIENT OR DESIRABLE  TO  CARRY  OUT
ITS PURPOSES AND FOR THE EXERCISE OF THE POWERS GRANTED IN THIS ARTICLE.
  S 755. SPECIAL POWERS OF THE BOARD. 1. THE BOARD IS HEREBY AUTHORIZED,
UPON  THE  FILING  OF AN APPLICATION WHICH SHALL NOT EXCEED TWO PAGES IN
LENGTH BY ANY ELIGIBLE ORGANIZATION, TO MAKE SHORT TERM  LOANS  TO  SAID
ORGANIZATIONS FOR THE FOLLOWING PURPOSES:
  (A)  TO  ENABLE  THE  ELIGIBLE ORGANIZATION TO CONTINUE ITS DAY-TO-DAY
OPERATIONS;
  (B) TO PAY EMPLOYEE SALARIES; AND
  (C) TO ALLOW IT TO MEET ANY AND ALL FINANCIAL OBLIGATIONS  NOT  OTHER-
WISE PROHIBITED BY STATUTE OR THE ORIGINAL GRANT SPECIFICATIONS.
  2.  IN  NO  EVENT  SHALL ANY SHORT TERM LOAN EXCEED TEN PERCENT OF THE
ANTICIPATED YEARLY GRANT NOR SHALL IT EXCEED THE SUM OF  SIXTY  THOUSAND
DOLLARS.
  3.  AN  APPLICATION  FOR  A  SHORT  TERM  LOAN SHALL BE ACCOMPANIED BY
DOCUMENTATION FROM THE APPROPRIATE STATE AGENCY EVIDENCING AN OBLIGATION
ON THE PART OF THE STATE AGENCY TO PAY MONIES TO AN  ELIGIBLE  ORGANIZA-
TION.
  4.  PRIOR TO ENTERING INTO A LOAN AGREEMENT WITH AN ELIGIBLE BORROWER,
THE CORPORATION SHALL REQUIRE PROOF OF THE ELIGIBLE BORROWER'S RELATION-
SHIP WITH THE STATE OF NEW YORK, THE STATE'S INDEBTEDNESS TO THE  ELIGI-
BLE BORROWER AND THAT THE ELIGIBLE BORROWER REQUIRES THE SHORT TERM LOAN
IN  ORDER  TO CARRY OUT ITS OPERATIONS DUE TO THE LACK OF FUNDS FROM ANY
OTHER SOURCE.
  5. IN THE EVENT AN ELIGIBLE BORROWER HAS AGREED UPON  REPAYMENT  TERMS
AND  NOT  ENTERED INTO AN AGREEMENT WITH THE BOARD WHEREBY THE AMOUNT OF
ITS SHORT TERM LOAN WOULD REDUCE ITS TOTAL GRANT  AMOUNT  BY  THAT  SAME

S. 2956                             4

VALUE, AND FAILS TO MEET ITS REPAYMENT OBLIGATION PURSUANT TO THIS ARTI-
CLE,  THE BOARD IS EMPOWERED TO COLLECT THE OUTSTANDING BALANCE DIRECTLY
FROM THE STATE AGENCY AND THE AMOUNT OF THE OUTSTANDING BALANCE SHALL BE
DEDUCTED FROM THE AMOUNT OF THE GRANT.
  6.  ELIGIBLE  BORROWERS WHICH FAIL TO REPAY ANY LOAN OBLIGATIONS SHALL
BE INELIGIBLE FOR ANY GRANT FROM ANY STATE AGENCY FOR A  PERIOD  OF  TWO
YEARS.
  S  756. COOPERATION OF OTHER STATE AGENCIES. THE GOVERNOR SHALL DESIG-
NATE AGENCIES, STATE DEPARTMENTS, DIVISIONS, BOARDS, BUREAUS AND COMMIS-
SIONS FROM WHICH, TO THE MAXIMUM EXTENT FEASIBLE,  THE  BOARD  SHALL  BE
ENTITLED  TO  REQUEST AND RECEIVE AND SHALL UTILIZE AND BE PROVIDED WITH
SUCH FACILITIES, RESOURCES AND DATA AS  IT  MAY  REASONABLY  REQUEST  TO
PROPERLY CARRY OUT ITS POWERS AND DUTIES HEREUNDER.
  S  757.  DETERMINATION OF ELIGIBILITY FOR PAYMENT OF INTEREST ON MONEY
OWED TO ELIGIBLE ORGANIZATIONS. EACH STATE AGENCY WHICH IS  REQUIRED  TO
FULFILL  A  GRANT OBLIGATION TO AN ELIGIBLE ORGANIZATION AND WHICH FAILS
TO MAKE SUCH PAYMENT SHALL MAKE AN INTEREST  PAYMENT  TO  THE  VOLUNTARY
AGENCY  REVOLVING  LOAN  FUND  ON  THE  TOTAL  AMOUNT OF THE GRANT TO BE
AWARDED.  INTEREST SHALL BE COMPUTED AT THE RATE EQUAL TO THE  RATE  SET
BY THE COMMISSIONER OF TAXATION AND FINANCE FOR CORPORATE TAXES PURSUANT
TO PARAGRAPH ONE OF SUBSECTION (E) OF SECTION ONE THOUSAND NINETY-SIX OF
THE  TAX  LAW AND SHALL ACCRUE FROM THE DATE WHICH THE AGENCY REASONABLY
COULD HAVE PAID THE GRANT, AS SHALL BE DETERMINED BY THE BOARD.   INTER-
EST PAYMENTS SHALL BE PAID INTO THE FUND.
  S  2.  The  sum of one hundred thousand dollars ($100,000), or so much
thereof as may be necessary, is hereby appropriated to the department of
state out of any moneys in the state treasury in the general fund to the
credit of the state purposes account, not  otherwise  appropriated,  and
made  immediately  available,  for  the  purpose  of  carrying  out  the
provisions of this act. Such moneys shall be payable on  the  audit  and
warrant  of  the  comptroller  on  vouchers certified or approved by the
secretary of state  in the manner prescribed by law.
  S 3. This act shall take effect on the first of October next  succeed-
ing the date on which it shall have become a law.