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

                                  7459

                            I N  S E N A T E

                               May 3, 2016
                               ___________

Introduced  by  Sens. STEWART-COUSINS, LATIMER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Educa-
  tion

AN  ACT  establishing  the  Yonkers  city  school district joint schools
  construction and modernization act; and to amend the education law and
  the public authorities law, in relation  to  implementing  such  joint
  schools construction and modernization act

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

  Section 1. Short title. This act shall be known and may  be  cited  as
"the Yonkers city school district joint schools construction and modern-
ization act".
  S  2.  Legislative  findings  and declaration of need. The legislature
finds that Yonkers schools have a growing population yet the average age
of the school buildings in Yonkers is seventy-five years with the oldest
building at one hundred nineteen years old; nine are  over  ninety-seven
years  old  and most are past their useful life and in need of extensive
refurbishment.  The age of buildings in Yonkers  is  significantly  over
the  sixty-five  years average age of schools in New York State. Even by
maximizing the debt borrowing under existing constitutional and statuto-
ry limits Yonkers city is unable to finance modernization of its facili-
ties at a reasonable rate as needs are far greater than the availability
of capital. The city school  district's  facilities  are  landlocked  in
highly  dense  urban  neighborhoods  lacking  proper  school  bus loops,
athletic facilities and other essential school  amenities  required  for
the  safe  and  proper administration of an educational institution, and
while Yonkers city has invested significant  capital,  deterioration  of
building stock outpaces the district's ability to repair it.
  The  legislature  further finds that such deterioration of the schools
and inability to expand school  sites  to  provide  even  a  modicum  of
customary  facilities  and amenities to students is a serious impediment
to learning and teaching. If the quality of education in the city is  to
be  improved,  existing  schools must be rehabilitated and reconstructed
and new city schools must be built. This will include the retirement  of

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

                                                           LBD14978-03-6

S. 7459                             2

old  facilities  which  will  be  replaced by more efficiently operating
buildings with better use of space. Renovations shall result in  facili-
ties  more  conducive  to  current  education  requirements and shall be
equipped  to  operate  at  lower  maintenance costs with improved energy
efficiency.
  The city of Yonkers' student population has  been  rising,  especially
with  students  with special needs and students with English as a second
language. Yonkers' increased enrollment has required overuse  of  avail-
able  classroom space for regular instruction and resulted in a shortage
of libraries, art rooms, music rooms, computer rooms  and  other  common
school facility elements.  Construction of new facilities will allow for
reallocation  of  classroom space to essential specialized uses. However
the city's fiscal limitations magnify the inability to maintain existing
aging facilities or provide new facilities to accommodate the increasing
student populations.   Yonkers  is  unable  to  pursue  a  modernization
program  without  special  legislation  as  was provided to the Buffalo,
Rochester and Syracuse city school districts. As a result  the  city  of
Yonkers  has an immediate need for special legislation providing for new
school buildings and a  joint  schools  construction  and  modernization
program patterned after the mechanism for funding received by or related
to the Buffalo, Rochester and Syracuse school districts.
  The  legislature  further  finds  that  as  a result of the foregoing,
legislation granting certain new or additional authority to the city and
the city school district of the city of Yonkers as  set  forth  in  such
legislation  is necessary, which authority should enable both parties to
better, more economically and more innovatively manage the  acquisition,
design,  construction,  financing,  operation,  and  maintenance  of new
educational facilities.
  S 3. Definitions. As used or referred to in this act:
  (a) "Capital improvement plan" shall mean the city  school  district's
ongoing,  annually  updated  five-year  capital  financing  plan for the
construction and  reconstruction  of  facilities,  the  acquisition  and
replacement  of  equipment and the completion of other long-term capital
projects undertaken and financed by the issuance of  general  obligation
bonds  by  the  city  on  behalf of the city school district pursuant to
existing state law applicable to all school districts.
  (b) "City" shall mean the city of Yonkers.
  (c) "City school district" shall mean the city school district of  the
city of Yonkers acting by and through the board of education of the city
school district of the city of Yonkers.
  (d) "City council" shall mean the city council of the city of Yonkers.
  (e)  "Commissioner"  shall  mean  the commissioner of education of the
state of New York.
  (f) "Compliance officer" shall mean  an  independent  compliance  firm
with  an  in-depth  knowledge  base and breadth of experience conducting
minority and women-owned business enterprise  (MWBE)  and  disadvantaged
business  enterprise  (DBE) utilization compliance monitoring for public
contracts within New York state including school districts and  auditing
contractors   and  subcontractors  in  construction  and  reconstruction
projects like those to be undertaken and  contracted  for  by  the  YJSC
board  pursuant  to  this  act.   Such firm shall support the facilities
modernization program by developing and implementing an MWBE/DBE  Utili-
zation Master Plan for the governance of all project contracts to ensure
compliance  with  all  federal,  State, and local laws, rules, and regu-
lations as applicable.
  (g) "Comptroller" shall mean the comptroller of the state of New York.

S. 7459                             3

  (h) "Joint schools construction  and  modernization  plan"  or  "joint
schools  construction  and modernization program" shall mean the compre-
hensive, strategic  plan  developed  by  the  city  school  district  as
described in section five of this act.
  (i) "MWBE/DBE utilization master plan" shall be a plan prepared by the
compliance officer to the satisfaction of the YJSC board to meet dispar-
ity as established by existing state studies.
  (j)  "Person"  shall mean a municipality or other governmental body, a
public corporation or an authority, a  private  corporation,  a  limited
liability company or partnership, or an individual.
  (k)  "Program  manager"  shall  mean an independent program management
firm that has been selected by the city and  the  city  school  district
through  the  request for proposal process to oversee the implementation
of the joint schools construction and modernization plan  to  assist  it
in:  (1)  developing and implementing procedures for the projects under-
taken and contracted for by the city school district or the YJSC  board;
(2)  reviewing plans and specifications for projects; (3) developing and
implementing policies and procedures to utilize employment resources  to
provide sufficient skilled employees for such projects, including devel-
oping and implementing training programs, if required; (4) managing such
projects;  and (5) providing such planning, design, financing, and other
services as may be appropriate to implement one or more construction  or
reconstruction projects pursuant to this act.
  (l)  "Project" shall mean (1) work at an existing school building site
that involves the design, reconstruction, or rehabilitation of all or  a
portion of an existing school building for its continued use as a school
of  the  city school district, which may include an addition to existing
school buildings for such continued use and which also may  include  (i)
the  construction or reconstruction of athletic fields, playgrounds, and
other recreational facilities for such existing school buildings, and/or
(ii) the acquisition and installation of  all  equipment  necessary  and
attendant  to  and  for the use of such existing school buildings and/or
(2) the acquisition of  land  for  new  school  buildings  and  athletic
fields,   playgrounds  and  other  recreations  facilities;  and/or  (3)
construction of up to three new school buildings  and  land  acquisition
from  the  city  or  private  parties  which  also  may  include (i) the
construction or reconstruction  of  athletic  fields,  playgrounds,  and
other recreational facilities for such new school buildings and (ii) the
acquisition and installation of all equipment necessary and attendant to
and  for the use of such new school buildings; and/or (iii) the acquisi-
tion of additional real property by the city to facilitate the  project.
For purposes of this act, the term "construction" shall include all work
related  to  construction, demolition, reconstruction, excavation, reha-
bilitation, repairs, renovations, alterations, or improvements.
  (m)  "Project  labor  agreement"  shall  mean  a  pre-hire  collective
bargaining  agreement  between a contractor and a bona fide building and
construction trades labor organization establishing the signatory unions
as the collective bargaining representatives for all  persons  who  will
perform  work  on  the project, and which provides that only contractors
and subcontractors who sign a pre-negotiated agreement  with  the  labor
organization can perform project work.
  (n)  "YJSC  board"  or  "board"  shall  mean the Yonkers joint schools
construction board, a joint instrumentality of the  city  and  the  city
school  district,  acting  for  and  on  behalf of the city and the city
school district.
  (o) "SED" shall mean the state education department.

S. 7459                             4

  (p) "Related party" means: (1) any member, officer or employee of  the
board, or any other person who exercises the powers of members, officers
or  employees  over  the  affairs  of the board; (2) any relative of any
individual described in paragraph one of this subdivision;  or  (3)  any
entity  in  which  any individual described in paragraphs one and two of
this subdivision has a thirty-five percent or greater ownership or bene-
ficial interest or, in the case of a partnership or professional  corpo-
ration,  a  direct  or  indirect  ownership  interest  in excess of five
percent.
  (q) "Related party transaction" means any  transaction,  agreement  or
any  other arrangement in which a related party has a financial interest
and in which the board is a participant.
  S 4. Yonkers joint schools construction board. (a) For the benefit  of
the  city of Yonkers and the inhabitants thereof, a board to be known as
the Yonkers joint schools construction board, and sometimes referred  to
as  the  YJSC board, is hereby established for the accomplishment of the
purposes specified in this act. The YJSC board shall conduct meetings as
often as deemed necessary to accomplish its purposes, but not less  than
quarterly.
  (b)  (1)  The  board  shall be composed of nine voting members: one of
whom, sitting ex officio, shall be the mayor of  Yonkers;  one  of  whom
shall  be  the  president of the Yonkers board of education; one of whom
shall be the superintendent of the Yonkers city school district; one  of
whom  shall be the designee of the Yonkers council of Parent Teach Asso-
ciations; two of whom shall be Yonkers city council  designees  of  whom
one  shall  be from the majority and one from the minority; and three of
whom shall be jointly designated by the mayor and the superintendent  of
the  city  school district, but shall be not employed by the city or the
school district. In selecting designees to serve on the  board,  prefer-
ence  shall  be  granted to those with expertise or experience in school
construction, school financing, and education policy.   The  members  of
the  board  shall  serve  without salary, but each member shall be reim-
bursed for actual and necessary expenses incurred in the performance  of
such member's official duties as a member of the board.  To ensure flex-
ibility  and  continuity,  the  mayor and/or the superintendent may from
time to time designate and authorize their chief of staff, chief  finan-
cial officer, or other designee to attend and vote in their stead.
  (2) Notwithstanding any inconsistent provision of any general, special
or  local  law,  ordinance,  resolution or charter, no officer, board of
trustees, member or employee of the state, any  city,  county,  town  or
village, any governmental entity operating any public school or college,
any  school district or any other public agency or instrumentality which
exercises governmental powers under the laws of the state, shall forfeit
his or her office or employment by reason of his or  her  acceptance  of
appointment  as  a  member,  officer  or employee of the YJSC board, nor
shall service as such member, officer or employee of the YJSC  board  be
deemed  incompatible  or  in  conflict  with  such office or employment,
except for the three board members who were  jointly  appointed  by  the
mayor and the superintendent of the city school district.
  (3)  Except  for  the  mayor  of Yonkers, the president of the Yonkers
board of education and the superintendent of the city  school  district,
the  remaining  members  of  the board shall be independent members. The
official or officials having the authority to  appoint  or  remove  such
remaining members shall take such actions as may be necessary to satisfy
this  requirement  and further, shall consider the prospective diversity
of the members of the board when making their determinations to  appoint

S. 7459                             5

any  member.  For purposes of this section, an independent member is one
who: (i) is not, and in the past two years has not been employed by  the
board, the city or the school district; (ii) is not, and in the past two
years  has  not  been,  employed by an entity that received remuneration
valued at more than fifteen thousand  dollars  for  goods  and  services
provided  to  the board, the city or the school district or received any
other form of financial assistance valued at more than fifteen  thousand
dollars  from the board, the city or the school district; (iii) is not a
relative of an executive officer or employee in  an  executive  position
with the city of Yonkers or the Yonkers city school district or a member
of  the Yonkers city council or the Yonkers board of education; and (iv)
is not, and in the past two years has not been,  a  lobbyist  registered
under a state or local law and paid by a client to influence the manage-
ment  decisions, contract awards, rate determinations or any other simi-
lar actions of the board, the city or the school district.
  (4) Notwithstanding any other provision of  any  general,  special  or
local  law,  municipal  charter  or  ordinance  to  the  contrary, board
members, officers and employees of the board shall file annual financial
disclosure statements with the county board of ethics for the county  in
which  the  board  has  it  primary office pursuant to article 18 of the
general municipal law.
  (c) A majority of the whole board shall constitute a  quorum  for  the
transaction  of  any business or the exercise of any power of the board.
No action shall be taken by the board except  pursuant  to  a  favorable
vote  of at least a majority of the whole board participating in a meet-
ing at which such action is taken.
  (d) The board shall be effective upon filing  with  the  secretary  of
state  a  certificate of organization indicating that its organizational
meeting has been held and its  conflict  of  interest  policy  has  been
adopted  and  shall  continue after the tenth anniversary of its date of
organizational meeting  during  any  period  when  bonds  or  notes  are
outstanding.
  (e) Except as otherwise limited by this act, the YJSC board shall have
the following powers and responsibilities in addition to those specially
conferred  elsewhere  in this act, subject only to agreements with bond-
holders:
  (1) to make plans and studies necessary, convenient or  desirable  for
the  effectuation of the purposes and powers of the board and to prepare
recommendations in regard thereto;
  (2) to make use of existing studies, surveys, plans,  data  and  other
material in the possession of the city, the city school district, or any
person in order to avoid duplication of effort;
  (3)  to  enter  into  cooperative agreements with the state, any state
agency, the city, or the city school district for  any  lawful  purposes
necessary  or  desirable  to  effect  the purposes of this act upon such
terms and conditions as shall be determined to be reasonable;
  (4) to develop and maintain the joint schools construction and modern-
ization plan for so long as the projects  authorized  pursuant  to  this
act, are yet to be undertaken; and
  (5)  to  do all things necessary, convenient or desirable to carry out
its purposes and for the exercise of the powers granted in this act.
  (f) (1) The board shall adopt a conflict of interest policy to  ensure
that  its  directors,  officers and employees act in the city's and city
school  district's  best  interest  and  comply  with  applicable  legal
requirements, including but not limited to the requirements set forth in
subdivision (g) of this section.

S. 7459                             6

  (2)  The  conflict of interest policy shall include, at a minimum, the
following provisions: (i) a definition of the circumstances that consti-
tute a conflict of interest; (ii) procedures for disclosing  a  conflict
of  interest  to the board; (iii) a requirement that the person with the
conflict  of interest not be present at or participate in board deliber-
ation or vote on the matter giving rise to such conflict, provided  that
nothing  in  this  subdivision  shall prohibit the board from requesting
that the person with the conflict of  interest  present  information  as
background or answer questions at a board meeting prior to the commence-
ment  of  deliberations  or  voting relating thereto; (iv) a prohibition
against any attempt by the person with the conflict to influence improp-
erly the deliberation or voting  on  the  matter  giving  rise  to  such
conflict;  (v)  a  requirement  that the existence and resolution of the
conflict be documented in the board's records, including in the  minutes
of  any  meeting  at which the conflict was discussed or voted upon; and
(vi) procedures for  disclosing,  addressing,  and  documenting  related
party transactions in accordance with subdivision (g) of this section.
  (3)  The  conflict  of interest policy shall require that prior to the
filing of the certificate of organization, and annually thereafter,  all
members of the board shall complete, sign and submit to the county board
of  ethics  for  the  county  in  which the board has its primary office
pursuant to article eighteen of the  general  municipal  law  a  written
statement identifying, to the best of the member's knowledge, any entity
of  which  such  member  is an officer, director, trustee, member, owner
(either as a sole proprietor or a partner), or employee and  with  which
the  board has a relationship, and any transaction in which the board is
a participant and in which the member might have a conflicting interest.
The policy shall require that each board member annually  resubmit  such
written  statement.  The  county board of ethics shall provide a copy of
all completed statements to each board member.
  (4) If the board has complied  substantially  with  section  2824  and
subdivision 3 of section 2825 of the public authorities law, it shall be
deemed in compliance with this subdivision.
  (5)  Nothing  in  this subdivision shall be interpreted to require the
board to adopt any specific conflict of interest  policy  not  otherwise
required  by  this subdivision or any other law or rule, or to supersede
or limit  any  requirement  or  duty  governing  conflicts  of  interest
required by any other law or rule.
  (g)  (1)  The board shall not enter into any related party transaction
unless the transaction is determined by the board to be fair, reasonable
and in the board's best interest at the time of such determination.  Any
member, officer or employee who has an interest in a related party tran-
saction  shall  disclose  in  good faith to the board the material facts
concerning such interest.
  (2) With respect to any related party transaction in which  a  related
party has an substantial financial interest, the board, shall: (i) prior
to  entering  into the transaction, consider alternative transactions to
the extent available; (ii) approve the transaction by not  less  than  a
majority  vote of the entire board; and (iii) contemporaneously document
in writing the basis for the board's approval, including  its  consider-
ation of any alternative transactions.
  (3)  SED  may  bring  an action to enjoin, void or rescind any related
party transaction or proposed related party  transaction  that  violates
any  provision of this section or was otherwise not reasonable or in the
best interests of the board at the time the transaction was approved, or
to seek restitution, and the removal of members or officers, or seek  to

S. 7459                             7

require  any  person or entity to: (i) account for any profits made from
such transaction, and pay them to the board;  (ii)  pay  the  board  the
value  of  the  use  of any of its property or other assets used in such
transaction;  (iii)  return or replace any property or other assets lost
to the board as a result of such transaction, together with  any  income
or  appreciation  lost  to  the  board by reason of such transaction, or
account for any proceeds of sale of such property, and pay the  proceeds
to  the board together with interest at the legal rate; and (iv) pay, in
the case of willful and intentional conduct, an amount up to double  the
amount of any benefit improperly obtained.
  (4) No related party may participate in deliberations or voting relat-
ing  to  a related party transaction in which he or she has an interest;
provided that nothing in this section  shall  prohibit  the  board  from
requesting  that  a  related  party present information as background or
answer questions concerning a related party transaction at a board meet-
ing prior to the commencement of deliberations or voting relating there-
to.
  (h) Notwithstanding any other provision of  any  general,  special  or
local  law,  municipal  charter  or  ordinance  to the contrary, for the
purposes of title 2 of article 1 of the public authorities law the board
shall be considered a local authority.
  S 5. Joint schools construction and modernization plan; project costs.
(a) The superintendent, in consultation with the Yonkers board of educa-
tion, shall submit to the YJSC board a comprehensive draft  plan  recom-
mending  and  outlining  the  projects  for  phase one it proposes to be
undertaken pursuant to this act. The YJSC board shall consider the  plan
in  developing a comprehensive joint schools construction and moderniza-
tion plan recommending and outlining the  projects  it  proposes  to  be
potentially  undertaken  pursuant  to  this act. The comprehensive joint
schools construction and modernization plan shall include:
  (1) an estimate of total costs to be  financed,  not  to  exceed  five
hundred  twenty-three  million  dollars  ($523,000,000), plus such addi-
tional amount of bonds, notes and other obligations necessary to provide
for a debt service reserve fund and to pay reasonable costs of issuance,
a proposed financing plan, a proposed method  of  financing,  terms  and
conditions  of  the financing, and estimated financing costs (calculated
on a net interest cost basis). The  plan  shall  address  what  specific
options would be used to ensure that sufficient resources exist to cover
the local share of any such project cost on an annual basis;
  (2)  information  concerning the number of buildings to be constructed
or reconstructed to the satisfaction of SED;
  (3) a district wide technology plan and a description of related inci-
dental expenses;
  (4) information concerning the potential persons to be involved in the
financing and such persons' roles and responsibilities;
  (5) estimates on the design, construction, reconstruction and rehabil-
itation  costs  by  project,  any  administrative  costs  for  potential
projects,  and  an  outline  of the timeframe expected for completion of
each potential project;
  (6) direction to the program manager  in  the  implementation  of  the
plan;
  (7)  any  proposed  amendments to the city school district's five year
capital facilities plan submitted in accordance with  subdivision  6  of
section  3602  of the education law, the regulations of the commissioner
and the provisions of this section; and

S. 7459                             8

  (8) a diversity plan, in compliance with section eleven of  this  act,
to  develop  diversity  goals, including appropriate community input and
public discussion, and develop strategies that would create and  coordi-
nate  any  efforts  to ensure a more diverse workforce for the projects.
The  MWBE/DBE  utilization master plan should address accountability for
attainment of the diversity goals, what forms  of  monitoring  would  be
used, and how such information would be publicly communicated.  Prior to
the  development  of  the  comprehensive  joint schools construction and
modernization plan, the YJSC board and district shall hold not less than
one public hearing per school site to ensure sufficient public input and
allow for significant public discussion on school building needs in such
city, with at least one such hearing to be  held  in  each  neighborhood
potentially impacted by a proposed project and in each neighborhood from
which  the  majority  of students impacted reside.   The hearing must be
widely publicized, including, but not limited to, social media  distrib-
ution  by  the board of education and the YJSC board.  The Yonkers joint
schools construction board shall submit  the  components  of  such  plan
described in paragraph one of this subdivision to the comptroller, along
with  any other information requested by the comptroller, for his or her
review and approval.
  (b) The aggregate amount of project costs  authorized  and  undertaken
pursuant  to this act as phase one shall not exceed five hundred twenty-
three million dollars ($523,000,000), plus  such  additional  amount  of
bonds,  notes  and  other  obligations  necessary  to provide for a debt
service reserve fund and to pay reasonable  costs  of  issuance,  unless
otherwise authorized by law. Due to the urgent need to address increased
enrollment,  phase  one shall consist of construction of up to three new
schools along with critical infrastructure system  replacements  at  the
existing  schools  to  maintain  safe  operation of the existing schools
until  future  renovations  are  made  as  part  of  the  joint  schools
construction and modernization plan. Such infrastructure system replace-
ment will be coordinated so that the work remains in place and is incor-
porated into the future renovation of the schools.
  (c)  Notwithstanding  the provisions of any other general, special, or
local law to the contrary, for purposes of undertaking projects  author-
ized  pursuant to this act, the YJSC board is hereby authorized to plan,
and for state building aid calculation purposes, SED is  hereby  author-
ized to permit the YJSC board to undertake projects that utilize a maxi-
mum  cost  allowance  approach determined on a city school district wide
basis at ninety-eight percent (98%) of approved costs rather than on  an
individual building basis.
  S 6. Project eligibility. To be eligible for selection as a project to
be  undertaken  pursuant to this section, such project shall be included
by the city school  district  in  its  joint  schools  construction  and
modernization  plan  as  a  special  section of the district's five-year
capital facilities plan that is required pursuant to  subdivision  6  of
section 3602 of the education law and the regulations of the commission-
er.  The  facilities  modernization  plan  and any portions of such plan
relating to such projects, including any amendments thereto, shall  have
the  contents  required in the regulations of the commissioner and shall
be submitted to the commissioner for approval. Notwithstanding  anything
to  the  contrary in this section, the city school district may elect to
finance a project under its ongoing capital improvement plan pursuant to
the powers and authority granted to all school districts in the state or
as part of the joint schools construction and modernization plans pursu-
ant to the special powers and  authority  granted  to  the  city  school

S. 7459                             9

district  and  the  YJSC board by this act.  Commencing on the effective
date of this section, the city school district shall create and maintain
a written schedule listing each project undertaken, certified to annual-
ly  by the city's commissioner of finance, which schedule shall identify
each project and its cost and formally designate such project  as  being
undertaken pursuant to either the joint schools construction and modern-
ization plan or the capital improvement plan.
  S  7. Determination of projects. (a) Upon approval by the commissioner
of the YJSC board's joint schools construction and  modernization  plan,
the  YJSC  board  may  select projects to be undertaken pursuant to this
section, as provided for in such approved joint schools construction and
modernization plan. After the board has selected a new project and plans
and specifications for such project have been prepared and  approved  by
the  board,  which  are consistent with the approved comprehensive plan,
the board shall deliver such plans and specifications to the commission-
er for his or her approval. After  approval  by  the  commissioner,  the
plans  and specifications shall be returned to the board. All such spec-
ifications shall detail the number of students the completed project  is
intended  to  serve,  the  site description, the types of subjects to be
taught, the types of activities for school, recreational, social,  safe-
ty, or other purposes intended to be incorporated in the school building
or  on  its site and such other information as the board and the commis-
sioner shall deem necessary or advisable.
  (b) The YJSC board, upon receipt of such approved plans and specifica-
tions for a project may  enter  into  contracts  for  such  project,  as
described in section eight of this act.
  S  8.  Contracts.  Notwithstanding  the  provisions  of  any  general,
special, or local law or judicial decision to the contrary:
  (a) (1) The YJSC board is hereby authorized  and  empowered  to  enter
into   contracts,   leases,   rental  agreements,  installment  purchase
contracts or other arrangements relating to the design (pursuant to  the
approved  plans and specifications), construction, reconstruction, reha-
bilitation, equipping, financing or managing of  one  or  more  projects
undertaken pursuant to this section with any person, upon such terms and
conditions  and  for such consideration and for such terms and duration,
not to exceed thirty years, as may be agreed upon by the board and  such
person  notwithstanding the provisions of any other general, special, or
local law to the contrary, relating to the length, duration,  and  terms
of  contracts  that the city or the city school district may enter into,
as set forth in subdivision (e) of this section.   The district  program
manager  shall  establish  reasonable guidelines or limits on incidental
costs to assure that to the greatest extent possible such costs for each
project do not exceed the state's maximum incidental cost allowance,  in
order to maximize efficient use of state building aid.
  (2)  Notwithstanding  any  other provision of law to the contrary, the
YJSC board shall submit estimated project costs for the projects author-
ized pursuant to paragraph five of subdivision (a) of  section  five  of
this  act after the completion of schematic plans and specifications for
review by the commissioner. If the total project costs  associated  with
such  projects  exceed the sum of the estimated individual approved cost
allowance of each building project by more than the lesser of  fifty-two
million  dollars ($52,000,000) or ten percent of the approved costs, and
the city school district has not otherwise demonstrated to the satisfac-
tion of the SED the availability of additional  local  shares  for  such
excess costs, then the YJSC board shall not proceed with the preparation
of  final  plans and specifications for such projects until the projects

S. 7459                            10

have been redesigned or value-engineered  to  reduce  estimated  project
costs so as not to exceed the above cost limits.
  (3)  Notwithstanding  any  other provision of law to the contrary, the
YJSC board shall submit estimated project costs for the projects author-
ized pursuant to paragraph five of subdivision (a) of  section  five  of
this  act  after  the completion of fifty percent of the final plans and
specifications for review by the  commissioner.  If  the  total  project
costs  associated  with  such  projects  exceed the sum of the estimated
individual approved cost allowance of each building project by more than
the lesser of fifty-two million dollars ($52,000,000) or ten percent  of
the  approved  costs,  and  the  city  school district has not otherwise
demonstrated to the satisfaction of the SED the  availability  of  addi-
tional  local share for such excess costs, then the YJSC board shall not
proceed with the completion of the remaining fifty percent of the  plans
and  specifications for such projects until the projects have been rede-
signed or value-engineered to reduce estimated project costs so  as  not
to exceed the above cost limits.
  (b) A contract entered into between the board, or other entity author-
ized by this act, and any person pursuant to this section may be awarded
either  pursuant to public bidding in compliance with section 103 of the
general municipal law or, in order to foster major investment in  exist-
ing  school  buildings  or  new  school buildings and to deliver quality
products and services that are beneficial to the  city  school  district
and the public it serves, on the basis of factors other than cost alone,
including, but not limited to, adherence to facility design, quality and
durability  or  materials,  energy efficiency, incorporating systems and
approaches which provide maximum facility value using the  best  current
development,  construction, leasing, and financing techniques available,
and maximization of state building aid,  and  such  a  contract  may  be
entered  into  pursuant  to the following provisions of this section for
the award of a contract based on evaluation of  proposals  submitted  in
response  to  a  request  for  proposals  prepared  by or for the board;
provided, however, that contracts or agreements  involving  construction
which  are  not  awarded  in  compliance with section 103 of the general
municipal law must include a project labor agreement in accordance  with
paragraph  (f)  of this subdivision. If a project labor agreement is not
performed on the project, all construction  contracts  must  be  awarded
pursuant to sections 101 and 103 of the general municipal law.
  (c)  Notwithstanding any provision of this act which allows for alter-
native methods of financing or contract delivery or  alternative  owner-
ship  arrangements,  including  projects owned, leased or financed by an
industrial development authority, all  work  performed  on  any  project
authorized  by  this  act  where  all  or any portion thereof involves a
lease, grant, bond, covenant, debt agreement, permit, contract or agree-
ment  entered  into  by  the  YJSC  board  or  any  other   entity   for
construction,  demolition,  reconstruction,  excavation, rehabilitation,
repair, renovation, alteration, or improvement shall  be  deemed  public
work  and  shall  be  subject  to  and  performed in accordance with the
provisions of article 8 of the labor law to the same extent and  in  the
same  manner  as  a  contract  of the state, and compliance with all the
provisions of article 8 of the  labor  law  shall  be  required  of  any
lessee,  sublessee, contractor or subcontractor on the project including
the enforcement of prevailing wage requirements by the fiscal officer as
defined in paragraph e of subdivision 5 of section 220 of the labor  law
to the same extent as a contract of the state.

S. 7459                            11

  (d)  Every contract entered into by the YJSC board or other authorized
entity for a project shall contain a provision that the design  of  such
project shall be subject to the review and approval of the Yonkers board
of  education  and  that  the  design and construction standards of such
project shall be subject to the review and approval of the commissioner.
In  addition,  every  such  contract  shall contain a provision that the
contractor shall furnish a labor and material bond  guaranteeing  prompt
payment of moneys that are due to all persons furnishing labor and mate-
rials pursuant to the requirements of any contracts for a project under-
taken  pursuant  to this section and a performance bond for the faithful
performance of the project, which shall conform  to  the  provisions  of
section  103-f  of  the  general  municipal law, and that a copy of such
performance and payment bonds shall be kept by the YJSC board and  shall
be open to public inspection.
  (e)  (1)  The  YJSC  board  or  other  authorized entity may require a
contractor awarded a contract, subcontract, lease, grant, bond, covenant
or other agreement for a project to enter into a project labor agreement
during and for the work involved with such project when such requirement
is part of the request for proposals for the project  and  when  it  has
been  determined  that  the record supporting the decision to enter into
such an agreement establishes that it  is  justified  by  the  interests
underlying  the  competitive bidding laws, and (2) any contract, subcon-
tract, lease, grant, bond, covenant  or  other  agreement  for  projects
undertaken  pursuant to this act shall not be subject to sections 101 or
103 of the general municipal law when the YJSC board or other authorized
entity has chosen to require a project labor agreement.  This  exemption
shall  only  apply  to  the projects undertaken pursuant to this act and
shall not apply to projects undertaken by any other school  district  or
municipality unless otherwise specifically authorized.
  (f)  All  contracts entered into by the YJSC board or other authorized
entity in excess of three million dollars ($3,000,000) with  respect  to
any  contract  for construction, reconstruction, demolition, excavation,
rehabilitation, repair, renovation,  alteration,  or  improvement  shall
require  that  each  contractor  and  subcontractor shall participate in
apprentice training programs registered  by  the  department  of  labor.
Participation  in such an apprenticeship program means the contractor or
subcontractor: (1) is signatory to  a  collective  bargaining  agreement
with  a  labor  organization  which  sponsors  an apprenticeship program
registered with the department of labor; (2)  individually  sponsors  an
apprenticeship  program registered by the department of labor; or (3) is
signatory to or otherwise bound by a project  labor  agreement  covering
the  project  which  provides  for  the  referral of apprentices. In all
cases, such apprenticeship program must be  specific  to  the  type  and
scope of work which is being performed.
  (g)  For the purposes of article 15-A of the executive law, YJSC board
shall be deemed a state agency as that term is defined in  such  article
and such contracts shall be deemed state contracts within the meaning of
that term as set forth in such article.
  (h)  In  the  event the YJSC board shall cease to exist for any reason
whatsoever during the life of such contracts  as  it  has  entered  into
pursuant  to this section, such contracts shall remain in full force and
effect and the city and city school district shall stand  in  the  place
and  stead of the board with respect to all rights and obligations under
such contracts and with respect to all powers granted to  the  board  by
this  section;  provided, however, that such powers are exercised by the

S. 7459                            12

city school district pursuant to its jurisdiction and the  general  laws
applicable thereto, except as modified by this section.
  S 9. Program manager. (a) The YJSC board shall utilize the services of
a  program  manager  selected  by  the city and the city school district
through the request for proposal process to oversee  the  implementation
of  the  joint  schools  construction  and  modernization plan. Prior to
selection, the program manager must demonstrate satisfactory  experience
in  planning,  designing,  and  constructing  new  and/or reconstructing
existing school buildings,  public  facilities,  commercial  facilities,
and/or  infrastructure facilities, and in the negotiation and management
of  labor  contracts  and  agreements,  training  programs,  educational
programs,   and  physical  technological  requirements  for  educational
programs.
  (b) All contracts entered into by the YJSC board or  other  authorized
entity for projects undertaken pursuant to this section shall be managed
by  such  program manager. The program manager shall also review project
schedules, review payment schedules, prepare cost estimates  and  review
for  coordination  purposes  the  safety programs of contractors and all
training programs, if required.  The  program  manager  shall  implement
procedures  for  verification  by it that all work for which payment has
been requested has been satisfactorily completed.
  (c) The program manager, and its affiliates or subsidiaries,  if  any,
shall  be  prohibited from awarding contracts or being awarded contracts
for or performing any work  other  than  contemplated  for  the  program
manager.
  S  10.  Requests for proposals for the award of projects. (a) The YJSC
board shall consult with the commissioner in creating guidelines  to  be
used  in  the  preparation  of  individual  requests  for  proposals  in
connection with projects prior to the development of  any  requests  for
proposals  by  the program manager. Prior to the issuance by the program
manager of a request for proposals, the YJSC board  shall  cause  to  be
published  a  notice  of  such issuance in the official newspaper of the
city school district, if any, and in at least one newspaper  of  general
circulation in the city. Concurrent with the publication of such notice,
a draft request for proposals shall be filed with the YJSC board.
  (b)  Each proposal shall require the inclusion of the following infor-
mation relating to each project:
  (1) the background and experience of the person including any  history
of labor violations, and when applicable, the identity and experience of
the  person's general contractor, heating and plumbing contractor, elec-
trical contractor, and design firm;
  (2) the ability of the person to secure adequate financing, if  appli-
cable,  including  the  identification of the firm, if any, that will be
used for financing the project; and
  (3) identification and specification of all direct and indirect  costs
which  would become a charge to the YJSC board, in whatever form, relat-
ing to the project and such other information as may  be  determined  to
have a material bearing on the ability to evaluate any proposal.
  (c) Proposals received in response to a request for proposals shall be
evaluated  taking  into consideration (1) maximization of state building
aid, (2) net cost, (3) the  financial  and  organizational  capacity  of
contractors and subcontractors in relation to the magnitude of work they
may perform, the record of performance of contractors and subcontractors
on  previous  work,  the  record  of  contractors  and subcontractors in
complying with existing labor laws, rules, or regulations and  maintain-
ing  harmonious  labor  relations,  and the commitment of contractors to

S. 7459                            13

work with minority and women  owned  business  enterprises  pursuant  to
article 15-A of the executive law and disadvantaged business enterprises
through subcontractor relationships, and (4) such additional factors set
forth in the request for proposals, including, but not limited to, qual-
ity  and  durability  of  materials,  energy efficiency, facility design
incorporating systems and  approaches  which  provide  maximum  facility
value at the lowest possible cost for the reconstruction, rehabilitation
and equipping, or new construction and equipping, of such projects.
  (d)(1) A contract award may be made to any responsible person selected
taking into consideration:
  (i) maximization of state building aid;
  (ii) net cost;
  (iii)  the  financial  and  organizational capacity of contractors and
subcontractors in relation to the magnitude of work  they  may  perform,
the  record of performance of contractors and subcontractors on previous
work, the record of contractors and  subcontractors  in  complying  with
existing labor standards and maintaining harmonious labor relations, and
the  commitment  of  contractors  to  work with minority and women owned
business enterprises pursuant to article 15-A of the executive  law  and
disadvantaged  business enterprises through subcontractor relationships;
and
  (iv) such additional factors set forth in the request  for  proposals,
including,  but  not  limited  to,  quality and durability of materials,
energy efficiency, facility design incorporating systems and  approaches
which provide maximum facility value at the lowest possible cost for the
reconstruction,  rehabilitation  and  equipping, or new construction and
equipping, of such projects.
  (2) Notwithstanding the provisions of this subdivision, if an award is
made to any person whose total proposal does not provide the lowest  net
cost,  the  city  school district or the YJSC board shall adopt a resol-
ution after a public  hearing  which  includes  particularized  findings
relevant  to  factors  evaluated indicating that the requirements of the
city school district or the YJSC board, as applicable, are met  by  such
award and that such action is in the public interest.  Any such contract
may  be  a  single  guaranteed maximum price general contract, utilize a
full construction management contract approach,  or  utilize  a  turnkey
contract approach or any other method deemed advisable in the reasonable
judgment of the YJSC board.
  S 11. Compliance officer. All contracts entered into by the YJSC board
for  projects undertaken by this section shall be monitored by a compli-
ance officer. The compliance officer shall have the authority to:
  (a) develop, implement, advertise, promote and  monitor  policies  and
procedures  to  utilize  and  provide  sufficient  MWBE, DBE and skilled
minority employment resources participation opportunities to be followed
by prime contractors and subcontractors  for  such  projects;  and  have
access to all proposed bid specifications documentations, records, draw-
ings,  blueprints  and  any other documentation associated with such bid
specifications;
  (b) support the joint schools construction and modernization  plan  by
developing  and implementing an MWBE/DBE Utilization Master Plan for the
governance of all project contracts;
  (c) provide technical assistance to potential MWBE and DBE contractors
and subcontractors interested in bidding on any such project;
  (d) obtain and maintain records and documentation as are necessary  to
confirm  compliance  with  any established MWBE, DBE or skilled minority
employment resources utilization goals for any such project;

S. 7459                            14

  (e) identify contractors in non-compliance with the established  MWBE,
DBE  or  skilled  minority  employment resources utilization goals or in
willful violation of any federal, state and local laws rules  and  regu-
lations;
  (f)  monitor  and  report  the  upward/downward  price  adjustment and
payment amounts to MWBE's and DBE's listed  on  contractors  utilization
plan for any such project; and
  (g)  develop  and  work with YJSC board to enforce agreed financial or
monetary sanctions for  any  contractors  non-compliance  with  MWBE/DBE
Utilization Master Plan.
  (h) the compliance officer shall report to the YJSC board on a monthly
basis.
  S  12.  Building aid.  (a) Notwithstanding any other general, special,
or local law or provision or  regulation,  all  costs  under  the  joint
schools  construction  and  modernization  plan  approved  by  SED shall
receive building aid from the state at a rate  of  ninety-eight  percent
(98%)  of  approved costs. Projects exceeding the Maximum Cost Allowance
("MCA") as identified by SED shall receive the calculated MCA  equal  to
the  policy  of  2  five-year  cycles. When the YJSC board exercises the
option of combining 2 five-year cycles for a project, the facility shall
not be eligible for aid for 10 years after project initiation.
  (b) Notwithstanding any other provision  of  law,  building  aid  that
would  otherwise  be payable for the school district portion of expendi-
tures for capital outlays and debt service for each  project  undertaken
pursuant  to the provisions of this act in accordance with subdivision 6
of section 3602 of the education law, shall be paid to the city.
  S 13. Operation and maintenance. (a) Notwithstanding any other  gener-
al,  special, or local law or provision of this section to the contrary,
any project undertaken pursuant to this section shall  be  operated  and
maintained  by the board of education of the city school district in the
same manner as existing school buildings owned by the city are  operated
and maintained by such board.
  (b)  Notwithstanding  any  other provision of any general, special, or
local law to the  contrary,  any  project  undertaken  pursuant  to  the
provisions  of  this act shall be exempt from all taxes (including sales
and use taxes), special assessments, and special ad valorem  levies  and
from  the  payment  of  any and all charges and rents for sewer systems,
both while such project is being constructed and during its use  by  the
city school district for school purposes.
  S  14.  Maintenance  of  effort  exclusion. Payment of debt service on
bonds, notes  or  other  obligations  issued  to  secure  financing  for
projects  undertaken  pursuant  to this act shall not be considered when
determining the "city amount" required pursuant to subparagraph (ii)  of
paragraph  a  of  subdivision  5-b of section 2576 of the education law;
provided, however, that this provision shall not  otherwise  affect  the
determination of said "city amount" with respect to funding unrelated to
projects undertaken pursuant to this act.
  S  15.  SED  oversight  of  projects.  Nothing  in  this  act shall be
construed to exempt a project undertaken pursuant to this  section  from
the  review and approval procedures applied to such projects by SED when
undertaken by the city school district pursuant to the education law.
  S 16. Financing of projects. (a) To finance project  costs  authorized
and  undertaken pursuant to this act, bonds, notes and other obligations
in an aggregate principal amount not to exceed five hundred twenty-three
million dollars ($523,000,000), plus such additional  amount  of  bonds,
notes  and  other  obligations  necessary  to provide for a debt service

S. 7459                            15

reserve fund and to pay reasonable costs of issuance, are authorized  to
be  issued  on  behalf of the YJSC board pursuant to subdivisions (d) or
(e) of this section; provided, however,  that  bonds,  notes  and  other
obligations  issued to refund or advance refund previously issued bonds,
notes and other obligations under this act  may  exceed  such  aggregate
principal  limitation;  provided, further however, that any accretion of
principal of bonds, notes and other obligations issue  pursuant  to  the
authority contained in this act that would constitute interest under the
Internal  Revenue  Code of 1986, as amended shall not count against such
aggregate principal limitation.  Any bonds, notes or  other  obligations
issued  by  or on behalf of the YJSC board pursuant to this act, and the
income therefrom shall, to the maximum  extent  practicable,  be  exempt
from taxation.
  (b)  Notwithstanding  the provisions of any other general, special, or
local law to the contrary, any bonds, notes or other obligations  issued
to  finance  any project authorized and undertaken pursuant to this act,
including ancillary financing costs described in subdivision (a) of this
section, may be issued without regard to any debt limitation  applicable
to the city or the city school district or any instrumentality thereof.
  (c) Notwithstanding any general, special, or local law or ordinance to
the  contrary,  contracts  entered  into  by the YJSC board for projects
undertaken pursuant to this act may be initially funded by the city from
any available monies or from the proceeds of city obligations issued  in
anticipation  of  permanent financing from any source provided under the
act and the reimbursement  to  the  city  of  any  available  monies  so
advanced  or  the  payment  of  obligations of the city issued in antic-
ipation of permanent financing  (including  permanent  financing  issued
through  the  city  of  Yonkers  industrial  development agency for such
purpose) is hereby specifically authorized.
  (d) Notwithstanding any limitations contained in article 18-A  of  the
general  municipal  law,  including subdivisions (4) and (12) of section
854 of the general municipal law, a project undertaken pursuant to  this
section  shall be a "project" within the definition and for the purposes
of subdivision (4) of section 854 of the general  municipal  law,  which
may  be  financed,  owned,  or  leased by the city of Yonkers industrial
development agency or any successor agency thereto and the city of Yonk-
ers industrial development agency is expressly authorized  to  refinance
obligations  issued  by the city in anticipation of financing authorized
by this act and/or reimburse the city for monies advanced  by  the  city
for  projects  undertaken  pursuant  to this act. In connection with the
city of Yonkers industrial development agency financing of the costs  of
any  project  undertaken  pursuant  to  this  act, the city and the city
school district may grant a leasehold or license interest  in  the  land
and  or building constituting such project to the city of Yonkers indus-
trial  development  agency  and  may  enter  into  installment  purchase
contracts to facilitate such financing.
  (e) Projects undertaken pursuant to this act may be financed through a
special program agreement with the state of New York municipal bond bank
agency  pursuant  to  the  provisions  of  section  2435-a of the public
authorities law. It shall be the duty of the YJSC board to  compare  the
financing available for such projects through the city of Yonkers indus-
trial  development  agency with financing available through the state of
New York municipal bond bank agency, and to employ the  financing  mech-
anism  that  will result in the lowest cost to the taxpayers of the city
and the state calculated on a net interest cost basis. It shall  be  the
duty  of  the  YJSC board and the city of Yonkers industrial development

S. 7459                            16

agency to share with the state of New York municipal  bond  bank  agency
any information in their possession that is required by the state of New
York  municipal bond bank agency to determine the cost of financing such
projects  and to compute the interest rate that would have been applica-
ble to a bond issuance by the state of  New  York  municipal  bond  bank
agency in the event that financing is obtained through the city of Yonk-
ers  industrial  development  agency or any alternative funding conduit.
Any failure to provide such information within thirty days of receipt of
a request from the state of New York municipal bond bank agency shall be
deemed to be a failure of the board to submit the data needed to compute
the apportionment of state building  aid,  and  the  commissioner  shall
withhold  such  apportionment until such information is fully submitted.
Upon request of the YJSC board, the director of the state  of  New  York
municipal bond bank agency shall submit such reports as the commissioner
may  require  on the financing of such projects and/or the interest rate
that would have been applicable  to  such  projects  if  they  had  been
financed through such agency.
  (f)  Notwithstanding  any  other provision of any general, special, or
local law or provision of this act to the contrary, any  project  under-
taken pursuant to this act shall be operated and maintained by the board
of  education of the city school district in the same manner as existing
school buildings owned by the city are operated and maintained  by  such
board.
  S  17. Exemption from bond issuance charge. Any notes, bonds, or other
obligations issued to finance projects authorized pursuant to  this  act
shall  be  exempt  from the collection of any bond issuance charge under
subdivision 2 of section 2976 of the public authorities law.
  S 18. Security for bonds, notes and other obligations; remedies.    In
the  event  that  the  city or city school district shall fail to make a
payment in such amount and by such date as is provided  to  be  made  by
such city or city school district under agreements entered into with the
city  of  Yonkers  industrial development agency or any successor agency
thereto, such entity shall so certify to  the  state  comptroller.  Such
certificate shall be in such form as the state comptroller deems desira-
ble,  but shall specify the amount by which such payment shall have been
deficient.  The state comptroller, upon receipt of such certificate from
such entity, shall withhold such amount of state and/or school aid paya-
ble to such city or city school district to the extent of the amount  so
stated in such certificate as not having been made, and shall immediate-
ly pay over to each financial institution acting as trustee on behalf of
bondholders  of the Yonkers industrial development agency or any succes-
sor agency thereto, the amount so withheld by the state comptroller. Any
amount so paid to bondholders from such state and/or  school  aid  shall
not  obligate the state to make, nor entitle the city or the city school
district to receive, any additional amounts of state and/or school  aid.
Nothing  contained  in this section shall be deemed to prevent the state
from modifying, reducing or eliminating any program or programs of state
and/or school aid; nor shall the state be obligated by the terms  hereof
to maintain state and/or school aid at any particular level or amount.
  S  19.  Actions  against  the  YJSC board. (a) Except in an action for
wrongful death, no action or proceeding shall  be  prosecuted  or  main-
tained  against  the YJSC board for personal injury or damage to real or
personal property alleged to have been sustained by reason of the negli-
gence or wrongful act of the YJSC board or  of  any  director,  officer,
agent or employee thereof, unless:

S. 7459                            17

  (1) it shall appear by and as an allegation in the complaint or moving
papers  that  a notice of claim shall have been made and served upon the
YJSC board, the city and the city school district, within the time limit
prescribed by and in compliance with section 50-e of the general munici-
pal law;
  (2) it shall appear by and as an allegation in the complaint or moving
papers  that at least thirty days have elapsed since the service of such
notice and that adjustment or payment  thereof  has  been  neglected  or
refused; and
  (3)  the action or proceeding shall be commenced within one year after
the happening of the event upon which the claim is based.
  (b) An action against the YJSC  board  for  wrongful  death  shall  be
commenced  in  accordance  with  the notice of claim and time limitation
provisions of section 217-a of the civil practice law and rules.
  (c) The venue of every action,  suit  or  special  proceeding  brought
against the YJSC board shall be the supreme court in the county of West-
chester.
  (d)  Neither any director of the YJSC board nor any officer, employee,
or agent of the YJSC board, while acting within the scope of his or  her
authority,  shall  be subject to any liability resulting from exercising
or carrying out any of the powers given in this act.
  S 20. Progress reports. On June  30,  2017  and  annually  thereafter,
until  completion of the projects in a total aggregate maximum amount of
$523,000,000, plus such additional amount  of  bonds,  notes  and  other
obligations  necessary to provide for a debt service reserve fund and to
pay reasonable costs of issuance, authorized pursuant to this  act,  the
YJSC  board  shall  issue a report to the governor, the comptroller, the
commissioner, the temporary president of the senate, the speaker of  the
assembly,  the city mayor, the city council and the city school district
on the progress and status of the projects undertaken by the YJSC board.
Provided further, that if any such entities request information  on  the
progress  and  status  of the projects prior to such report, it shall be
provided to such entities by the YJSC board. In addition, on  or  before
June  30,  2019,  the YJSC board shall issue a report to the city mayor,
the city school district, the  governor,  the  commissioner,  the  comp-
troller,  the  temporary president of the senate, the minority leader of
the senate, the speaker of the assembly,  the  minority  leader  of  the
assembly, the state board of regents, and the chairs and ranking minori-
ty  members  of  the  New  York  state senate and assembly committees on
education, the finance committee of the New York state senate, the  ways
and  means  committee of the New York state assembly and the division of
the budget. Such  report  shall  identify  the  fiscal  and  pedagogical
results  of  the  projects  undertaken  pursuant to this act, along with
recommendations for its continuance  to  a  phase  two,  amendments,  or
discontinuance.
  S  21. Clause (a) of subparagraph 5 of paragraph e of subdivision 6 of
section 3602 of the education law is amended by adding a new item (v) to
read as follows:
  (V) NOTWITHSTANDING THE PROVISIONS OF ITEM (I) OF THIS  CLAUSE,  WHERE
SUCH CITY OR CITY SCHOOL DISTRICT HAS ENTERED INTO AN AGREEMENT WITH THE
STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY PURSUANT TO SUBDIVISION ONE
OF  SECTION  TWENTY FOUR HUNDRED THIRTY-FIVE-A OF THE PUBLIC AUTHORITIES
LAW AND SECTION SIXTEEN  OF  THE  YONKERS  CITY  SCHOOL  DISTRICT  JOINT
SCHOOLS  CONSTRUCTION  AND  MODERNIZATION  ACT, OR AN AGREEMENT WITH THE
CITY OF YONKERS INDUSTRIAL DEVELOPMENT AGENCY OR AN ALTERNATIVE  FUNDING
CONDUIT  ENTITY  FOR  PROJECTS  AUTHORIZED  PURSUANT TO THE YONKERS CITY

S. 7459                            18

SCHOOL DISTRICT JOINT SCHOOLS CONSTRUCTION  AND  MODERNIZATION  ACT,  TO
FINANCE  DEBT  RELATED  TO  SCHOOL  REHABILITATION  OR RECONSTRUCTION OF
SCHOOL BUILDINGS OR CONSTRUCTION OF NEW SCHOOL BUILDINGS THAT IS SUBJECT
TO  SUBPARAGRAPH  THREE  OF  THIS  PARAGRAPH, THE LESSER OF: (A) THE NET
INTEREST COST, AS DEFINED BY THE COMMISSIONER, APPLICABLE TO  THE  OBLI-
GATIONS  ISSUED  BY  THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY OR
THE CITY OF YONKERS INDUSTRIAL DEVELOPMENT AGENCY FOR SUCH  PURPOSE;  OR
(B)  SUCH  NET INTEREST COST, AS DEFINED BY THE COMMISSIONER, THAT WOULD
HAVE BEEN APPLICABLE TO BONDS ISSUED BY THE STATE OF NEW YORK  MUNICIPAL
BOND  BANK  AGENCY IF THE PROJECT HAD BEEN AUTHORIZED TO BE FINANCED AND
HAD BEEN FINANCED THROUGH SUCH ENTITY, AS CERTIFIED TO THE  COMMISSIONER
BY  THE  EXECUTIVE DIRECTOR OF THE STATE OF NEW YORK MUNICIPAL BOND BANK
AGENCY, SHALL BE THE INTEREST RATE ESTABLISHED FOR SUCH CITY  APPLICABLE
TO SUCH DEBT.
  S  22.  The  opening paragraph of subdivision 6 of section 3602 of the
education law, as amended by chapter 416 of the laws of 2007, is amended
to read as follows:
  Apportionment for capital outlays and debt service for school building
purposes. Any apportionment to a school district pursuant to this subdi-
vision shall be based upon base year approved expenditures  for  capital
outlays  incurred prior to July first, two thousand one from its general
fund, capital fund or reserved funds and current year approved  expendi-
tures for debt service, including debt service for refunding bond issues
eligible  for  an apportionment pursuant to paragraph g of this subdivi-
sion and lease or other annual payments to the New York city educational
construction fund created by article ten of this chapter or the city  of
Yonkers  educational  construction fund created by article ten-B of this
chapter which have been pledged to secure the payment of bonds, notes or
other obligations issued by the fund to finance the construction, acqui-
sition, reconstruction, rehabilitation  or  improvement  of  the  school
portion  of  combined occupancy structures, or for lease or other annual
payments to the New York state urban development corporation created  by
chapter  one hundred seventy-four of the laws of nineteen hundred sixty-
eight, pursuant to agreement  between  such  school  district  and  such
corporation  relating  to the construction, acquisition, reconstruction,
rehabilitation or improvement of any  school  building,  or  for  annual
payments  to  the dormitory authority pursuant to any lease, sublease or
other agreement relating to  the  financing,  refinancing,  acquisition,
design,   construction,   reconstruction,  rehabilitation,  improvement,
furnishing and equipping of, or otherwise provide  for  school  district
capital  facilities  or school district capital equipment made under the
provisions of section sixteen hundred eighty of the  public  authorities
law,  or  for  annual  payments pursuant to any lease, sublease or other
agreement relating to the financing, refinancing,  acquisition,  design,
construction,  reconstruction,  rehabilitation,  improvement, furnishing
and equipping of, or otherwise providing for educational facilities of a
city school district under the provisions of section sixteen of  chapter
six  hundred five of the laws of two thousand, or for payments, pursuant
to any assignment authorized by  section  twenty-seven  hundred  ninety-
nine-tt of the public authorities law, of debt service in furtherance of
funding the five-year educational facilities capital plan of the city of
New  York  school district or related debt service costs and expenses as
set forth in such section, for annual payments pursuant  to  any  lease,
sublease  or  other  agreement  relating  to the financing, refinancing,
design,  reconstruction,  rehabilitation,  improvement,  furnishing  and
equipping of, or otherwise providing for projects authorized pursuant to

S. 7459                            19

the  city  of  Syracuse  and  the  board of education of the city school
district of the city of Syracuse cooperative school reconstruction  act,
for  annual  payments pursuant to any lease, sublease or other agreement
relating to the financing, refinancing, design, reconstruction, rehabil-
itation,  improvement, furnishing and equipping of, or otherwise provid-
ing for projects authorized pursuant to the city of  Rochester  and  the
board  of education of the city school district of the city of Rochester
school facilities modernization program act, FOR ANNUAL PAYMENTS  PURSU-
ANT TO ANY LEASE, SUBLEASE OR OTHER AGREEMENT RELATING TO THE FINANCING,
REFINANCING,   DESIGN,   CONSTRUCTION,  RECONSTRUCTION,  REHABILITATION,
IMPROVEMENT, FURNISHING AND EQUIPPING OF,  OR  OTHERWISE  PROVIDING  FOR
PROJECTS AUTHORIZED PURSUANT TO THE YONKERS CITY SCHOOL DISTRICT FACILI-
TIES  MODERNIZATION  PROGRAM  ACT, or for lease, lease-purchase or other
annual payments to another school district  or  person,  partnership  or
corporation  pursuant  to  an  agreement  made  under  the provisions of
section four hundred three-b, subdivision eight of  section  twenty-five
hundred  three, or subdivision six of section twenty-five hundred fifty-
four of this chapter, provided that the apportionment for such lease  or
other  annual  payments  under  the  provisions  of section four hundred
three-b, subdivision eight of  section  twenty-five  hundred  three,  or
subdivision  six of section twenty-five hundred fifty-four of this chap-
ter, other than payments under a lease-purchase agreement or  an  equiv-
alent  agreement,  shall  be  based  upon  approved  expenditures in the
current year. Approved expenditures for capital outlays  from  a  school
district's  general  fund,  capital  fund  or  reserved  funds  that are
incurred on or after July first, two thousand two, and are  not  aidable
pursuant  to subdivision six-f of this section, shall be aidable as debt
service under an assumed amortization established pursuant to paragraphs
e and j of this subdivision. In  any  such  case  approved  expenditures
shall be only for new construction, reconstruction, purchase of existing
structures,  for  site  purchase  and  improvement, for new garages, for
original  equipment,  furnishings,  machinery,  or  apparatus,  and  for
professional  fees  and  other  costs incidental to such construction or
reconstruction, or purchase of existing structures. In  the  case  of  a
lease  or  lease-purchase  agreement  entered  pursuant  to section four
hundred three-b, subdivision eight of section twenty-five hundred  three
or  subdivision  six  of  section twenty-five hundred fifty-four of this
chapter, approved expenditures for the lease or  other  annual  payments
shall  not include the costs of heat, electricity, water or other utili-
ties or the costs of operation or maintenance of the leased facility. An
apportionment shall  be  available  pursuant  to  this  subdivision  for
construction,  reconstruction, rehabilitation or improvement in a build-
ing, or portion thereof, being leased by a school district only  if  the
lease  is for a term of at least ten years subsequent to the date of the
general construction contract  for  such  construction,  reconstruction,
rehabilitation or improvement. Each school district shall prepare a five
year  capital  facilities plan, pursuant to regulations developed by the
commissioner for such purpose, provided that  in  the  case  of  a  city
school district in a city having a population of one million inhabitants
or  more,  such  facilities  plan  shall  comply  with the provisions of
section twenty-five hundred ninety-p of this chapter and  this  subdivi-
sion.  Such plan shall include, but not be limited to, a building inven-
tory, and estimated expense of facility  needs,  for  new  construction,
additions,  alterations,  reconstruction, major repairs, energy consump-
tion and maintenance by school building, as appropriate. Such five  year
plan  shall  include a priority ranking of projects and shall be amended

S. 7459                            20

if necessary to reflect subsequent  on-site  evaluations  of  facilities
conducted by state supported contractors.
  S 23. Subdivision 12 of section 2432 of the public authorities law, as
amended  by  section 21 of part A4 of chapter 58 of the laws of 2006, is
amended to read as follows:
  (12) "Special Program Municipality". Any city having a  population  of
less  than  one  million but more than three hundred fifty thousand; and
any city having a population of less than two hundred fifty thousand but
more than two hundred thousand,  determined  according  to  the  federal
decennial  census  of  nineteen  hundred  eighty.  Such  term shall also
include the city of Syracuse solely for the purpose of the city of Syra-
cuse and the board of education of the city school district of the  city
of  Syracuse cooperative school reconstruction act AND THE CITY OF YONK-
ERS SOLELY FOR THE PURPOSE OF THE YONKERS  CITY  SCHOOL  DISTRICT  JOINT
SCHOOLS CONSTRUCTION AND MODERNIZATION ACT.
  S  24.  Subdivision 1 of section 2435-a of the public authorities law,
as amended by section 22 of part A4 of chapter 58 of the laws  of  2006,
is amended to read as follows:
  (1)  In  order  to fulfill the purposes of this title and to provide a
means by which the special program municipalities may (a) receive moneys
to refund certain property taxes determined to be  in  excess  of  state
constitutional  tax  limits  or to reimburse the special program munici-
palities for the prior refunding of such taxes or (b) receive moneys  to
be  applied to the cost of settling litigation involving the city school
districts of special program municipalities and the teachers' unions  in
such  special  program  municipalities,  or  (c)  receive moneys for the
financing of public improvements to be applied to the cost of the recon-
struction, rehabilitation  or  renovation  of  an  educational  facility
pursuant  to  the  provisions  of  subdivision (b) of section sixteen of
chapter six hundred five of the laws of two  thousand,  or  (d)  receive
moneys  for  the  financing  of public improvements to be applied to the
cost of a project for design,  reconstruction  or  rehabilitation  of  a
school  building  pursuant  to the provisions of section fourteen of the
city of Syracuse and the board of education of the city school  district
of  the  city  of Syracuse cooperative school reconstruction act, OR (E)
RECEIVE MONEYS FOR THE FINANCING OF PUBLIC IMPROVEMENTS TO BE APPLIED TO
THE COST OF A PROJECT FOR DESIGN, RECONSTRUCTION OR REHABILITATION OF  A
SCHOOL  BUILDING, OR THE CONSTRUCTION OF A NEW SCHOOL BUILDING, PURSUANT
TO THE PROVISIONS OF SECTION TWELVE OF THE YONKERS CITY SCHOOL  DISTRICT
JOINT  SCHOOLS  CONSTRUCTION  AND MODERNIZATION ACT, and notwithstanding
any general or special law to the contrary, the agency and each  special
program  municipality  are  hereby  authorized to enter into one or more
special program agreements,  which  special  program  agreements  shall,
consistent  with  the  provisions  of  this  title,  contain such terms,
provisions and conditions as, in the judgment of the  agency,  shall  be
necessary or desirable. Each special program agreement shall specify the
amount  to  be  made available to the respective special program munici-
pality from the proceeds of an issue of special program bonds and  shall
require  such  special program municipality, subject to appropriation by
the appropriate legislative body of such special  program  municipality,
to  make  payments  to the agency in the amounts and at the times deter-
mined by the agency to be necessary to provide for payment of such issue
of special program bonds and such other fees, charges, costs  and  other
amounts as the agency shall in its judgment determine to be necessary or
desirable.

S. 7459                            21

  S  25. Subdivision 4 of section 2436 of the public authorities law, as
amended by section 23 of part A4 of chapter 58 of the laws of  2006,  is
amended to read as follows:
  4. In the event that a special program municipality shall fail to make
a  payment  in such amount (as calculated in accordance with the special
program agreement to which such municipality shall be a  party)  and  by
such  date as is provided to be made by such municipality in its special
program agreement, the chairman of the agency shall so  certify  to  the
comptroller.  Such certificate shall be in such form as the agency deems
desirable, but shall specify the amount by which such payment shall have
been deficient. The comptroller, upon receipt of such  certificate  from
the  agency,  shall  withhold from such special program municipality any
state aid payable to such municipality to the extent of  the  amount  so
stated in such certificate as not having been made, and shall immediate-
ly  pay  over  to  the agency the amount so withheld; provided, however,
that in the case of a special program agreement  entered  into  for  the
purpose  described  in paragraph (b) or (c) or (d) OR (E) of subdivision
one of section twenty-four hundred  thirty-five-a  of  this  title,  the
comptroller  shall  be  authorized  to withhold from the special program
municipality such school aid as is payable to the city  school  district
of  the  special  program  municipality,  to the extent of the amount so
stated in such certificate as not having been made, and shall immediate-
ly pay over to the agency the amount so withheld. Any amount so paid  to
the  agency  from  such  state  and/or school aid shall not obligate the
state to make, nor entitle the special program municipality to  receive,
any  additional  amounts  of  state and/or school aid. Nothing contained
therein shall be deemed to prevent the state from modifying, reducing or
eliminating any program or programs of  state  and/or  school  aid;  nor
shall  the  state  be  obligated  by  the terms hereof to maintain state
and/or school aid at any particular level or amount.
  S 26. Subdivision 1 of section 2438 of the public authorities law,  as
amended  by  section  7  of part N of chapter 56 of the laws of 2010, is
amended to read as follows:
  (1) The agency shall not issue bonds and notes in an aggregate princi-
pal amount at any one time outstanding exceeding  one  billion  dollars,
excluding  tax  lien  collateralized  securities, special school purpose
bonds, special school  deficit  program  bonds,  special  program  bonds
issued to finance the reconstruction, rehabilitation or renovation of an
educational  facility  pursuant  to the provisions of subdivision (b) of
section sixteen of chapter six hundred five of the laws of two thousand,
special program bonds issued to  finance  the  cost  of  a  project  for
design,  reconstruction  or rehabilitation of a school building pursuant
to the provisions of section fourteen of the city of  Syracuse  and  the
board  of  education of the city school district of the city of Syracuse
cooperative school reconstruction act, SPECIAL PROGRAM BONDS  ISSUED  TO
FINANCE  THE  COST OF A PROJECT FOR DESIGN, CONSTRUCTION, RECONSTRUCTION
OR REHABILITATION OF A SCHOOL BUILDING PURSUANT  TO  THE  PROVISIONS  OF
SECTION  THIRTEEN  OF  THE  YONKERS  CITY  SCHOOL DISTRICT JOINT SCHOOLS
CONSTRUCTION AND MODERNIZATION ACT, recovery act  bonds,  public  safety
communications  bonds  and  bonds and notes issued to refund outstanding
bonds and notes.
  S 27. Effect of inconsistent provisions. Insofar as the provisions  of
this act are inconsistent with the provisions of any other law, general,
special,  or local, or of the city charter or an ordinance or resolution
of the city council or  the  board  of  education  of  the  city  school
district, or any rule or regulation, the provisions of this act shall be

S. 7459                            22

controlling,  provided  that nothing contained in this act shall be held
to supplement or otherwise expand the powers or duties of  the  city  or
the city school district except as specified in this act.
  S  28. Severability; construction. The provisions of this act shall be
severable, and if the application of any  clause,  sentence,  paragraph,
subdivision,  section  or part of this act to any person or circumstance
shall be adjudged by any court of competent jurisdiction to be  invalid,
such  judgment  shall  not  necessarily affect, impair or invalidate the
application  of  any  such  clause,  sentence,  paragraph,  subdivision,
section,  part  of this act or remainder thereof, as the case may be, to
any other person or circumstance, but shall be confined in its operation
to the clause, sentence, paragraph, subdivision, section or part thereof
directly involved in the controversy in which such judgment  shall  have
been rendered.
  S 29. This act shall take effect immediately.