S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5781
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 19, 2019
                                ___________
 
 Introduced by M. of A. MOSLEY -- read once and referred to the Committee
   on Governmental Operations
 
 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.
   § 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.
                                                            LBD09916-01-9

              

 A. 5781                             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.
   §  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

 A. 5781                             3
 
 APPROPRIATE STATE AGENCY AS THE DESIGNATED CONTRACT AGENCY FOR  WHICH  A
 LOAN IS BEING APPLIED.
   § 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.
   § 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.
   § 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

 A. 5781                             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.
   §  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.
   §  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.
   §  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.
   § 3. This act shall take effect on the first of October next  succeed-
 ing the date on which it shall have become a law.