S T A T E   O F   N E W   Y O R K
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                                  1416

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced by M. of A. JAFFEE, CAHILL, SCHIMEL, GALEF -- Multi-Sponsored
  by  --  M. of A.  CROUCH -- read once and referred to the Committee on
  Education

AN ACT to amend the general municipal law, in  relation  to  the  repair
  reserve  funds  for municipal corporations, school districts, board of
  cooperative educational services, district corporations  and  improve-
  ment districts

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

  Section 1. Section 6-d of the general municipal law, as added by chap-
ter 383 of the laws of 1950, the section heading and subdivisions 5  and
6  as  amended  by  chapter  693  of  the laws of 1952, subdivision 1 as
amended by chapter 828 of the laws of 1961, subdivision 2 as amended  by
chapter  740  of  the  laws  of 1957, paragraph (b) of subdivision 3 and
subdivision 4 as amended by chapter 140 of the laws of 1996 and subdivi-
sion 7 as amended by chapter 424 of the laws of 2001, is amended to read
as follows:
  S  6-d.  Repair  reserve  funds  for  municipal  corporations,  school
districts,  BOARD  OF  COOPERATIVE EDUCATIONAL SERVICES, district corpo-
rations and improvement districts. 1. The governing board of any munici-
pal corporation,  school  district,  BOARD  OF  COOPERATIVE  EDUCATIONAL
SERVICES,  district corporation, or town or county improvement district,
may establish a special fund which shall be known as the repair  reserve
fund  of  such  municipal corporation, school district, BOARD OF COOPER-
ATIVE  EDUCATIONAL  SERVICES,  district   corporation   or   improvement
district.  There may be paid into such fund an amount as may be provided
therefor by budgetary appropriation or such revenues as are not required
by law to be paid into any other fund or account.
  2. In cases of emergency, moneys in such fund may be expended pursuant
to a resolution approved by not less than two-thirds of the  members  of
the governing body of such municipal corporation, school district, BOARD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06127-01-5
              

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OF COOPERATIVE EDUCATIONAL SERVICES, district corporation or improvement
district providing that not less than one-half of the moneys so expended
shall be repaid in the fiscal year immediately following the fiscal year
in  which such moneys were expended and the total amount shall be repaid
not later than the last day of the second  fiscal  year  succeeding  the
fiscal year in which the moneys were expended.
  Prior to the adoption of any other resolution, act, ordinance or local
law  by  the  governing  board  of  such  municipal  corporation, school
district, BOARD OF COOPERATIVE  EDUCATIONAL  SERVICES,  district  corpo-
ration  or improvement district, appropriating money from such fund, the
governing board shall cause to be published in the official newspaper or
newspapers, if any, or otherwise in a newspaper or newspapers designated
for such purpose, a notice stating in substance that it is  proposed  to
appropriate  a  specified  amount  from  the  repair  reserve fund for a
particular purpose, and that a public hearing on such proposed appropri-
ation will be held at a time and place stated  therein.  At  least  five
days  shall  elapse  between the publication of such notice and the date
specified for the hearing. The hearing shall be held  at  the  time  and
place so specified.
  3. Moneys in such fund may be appropriated only:
  a. For repairs of capital improvements or equipment, which repairs are
of a type not recurring annually or at shorter intervals.
  b.  In  the case of a municipal corporation, to a capital reserve fund
established pursuant to section six-c of this article or to a contingen-
cy and tax stabilization reserve fund established  pursuant  to  section
six-e of this article.
  c.  In  the  case of a fire district, to a capital reserve fund estab-
lished pursuant to section six-g OF THIS ARTICLE.
  d. In the case of a school district, OR BOARD  OF  COOPERATIVE  EDUCA-
TIONAL  SERVICES to a reserve fund established pursuant to section thir-
ty-six hundred fifty-one of the education law.
  4. The moneys in such fund shall  be  deposited  and  secured  in  the
manner  provided by section ten of this article. The moneys in such fund
so deposited shall be accounted for separate and apart  from  all  other
funds  of  the  municipal corporation, school district, BOARD OF COOPER-
ATIVE  EDUCATIONAL  SERVICES,  district   corporation   or   improvement
district,  in  the same manner as provided in subdivision ten of section
six-c of this article. The governing board or the chief  fiscal  officer
of  such  municipal  corporation,  school district, BOARD OF COOPERATIVE
EDUCATIONAL SERVICES, district corporation or improvement  district,  if
the  governing  board  shall  delegate  such duty to him, may invest the
moneys in such fund in the manner provided in  section  eleven  of  this
article.  Any interest earned or capital gains realized on the moneys so
deposited or invested shall accrue to and become part of such fund.
  5. The members of the governing board of such  municipal  corporation,
school  district,  BOARD  OF  COOPERATIVE EDUCATIONAL SERVICES, district
corporation or improvement district are hereby declared trustees of such
fund and shall be subject to all the duties and responsibilities imposed
by law on trustees, and such duties and responsibilities may be enforced
by such municipal corporation, school district, district corporation  or
improvement  district,  as the case may be, or by any board, commission,
agency, officer or taxpayer thereof.
  6. The members of the governing board of such  municipal  corporation,
school  district,  BOARD OF COOPERATIVE EDUCATIONAL SERVICES or district
corporation shall be guilty of a misdemeanor if they:

A. 1416                             3

  a. Authorize a withdrawal from a repair reserve  fund  for  any  other
purpose except as provided in this section.
  b. Expend any money withdrawn from a repair reserve fund for a purpose
other than that as provided in this section.
  7.  Notwithstanding  the  foregoing provisions of this section, in any
town which is located wholly or partly within the  Adirondack  park  and
has  within  its  boundaries state lands subject to taxation assessed at
more than thirty per centum of the total taxable assessed  valuation  of
town  as  determined  from the assessment rolls of the town as completed
from time to  time,  or  in  any  district  corporation  or  improvement
district situated in whole or in part in any such town, a repair reserve
fund shall not be established unless the state comptroller, on behalf of
the  state,  shall  consent  thereto,  and  in any such town or district
corporation or improvement district no appropriation shall be made  from
a  repair  reserve  fund  unless the state comptroller, on behalf of the
state, shall consent thereto.
  8. Moneys of a municipal corporation, school district, BOARD OF  COOP-
ERATIVE  EDUCATIONAL  SERVICES  or district corporation which, upon June
thirtieth, nineteen hundred fifty, constitute a repair reserve  fund  of
such municipal corporation, school district, BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES or district corporation, shall continue to so constitute
a special fund and be known as the repair reserve fund of such municipal
corporation,  school district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES
or district corporation. From and after  such  date,  payments  to,  and
appropriations  from,  such  fund  shall  be  subject  to  the foregoing
provisions of this section.
  S 2. This act shall take effect immediately.