S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7841
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 27, 2021
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Local Governments
 
 AN  ACT  to  amend  the  education law and the general municipal law, in
   relation to authorizing industrial  development  agencies  to  finance
   certain facilities for the small city school districts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2503 of the education law is amended  by  adding  a
 new subdivision 22 to read as follows:
   22.  SHALL AUTHORIZE SMALL CITY SCHOOL DISTRICTS TO ENTER INTO LEASES,
 SUBLEASES OR ANY OTHER AGREEMENTS WITH INDUSTRIAL  DEVELOPMENT  AGENCIES
 FOR  THE  FINANCING,  RE-FINANCING  OR REIMBURSEMENT OF THE COSTS OF THE
 ACQUISITION,  DESIGN,  CONSTRUCTION,   RECONSTRUCTION,   REHABILITATION,
 IMPROVEMENT,  FURNISHING  AND  EQUIPPING OF, OR OTHERWISE PROVIDING FOR,
 SCHOOL DISTRICT CAPITAL FACILITIES IN ACCORDANCE WITH THE PROVISIONS  OF
 ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW.
   §  2.  Section 858 of the general municipal law is amended by adding a
 new subdivision 20 to read as follows:
   (20) (A) TO ENTER INTO AGREEMENTS WITH  SMALL  CITY  SCHOOL  DISTRICTS
 INCLUDING  BUT  NOT  LIMITED TO, LEASES AND SUBLEASES FOR THE FINANCING,
 RE-FINANCING OR REIMBURSEMENT OF THE COSTS OF THE  ACQUISITION,  DESIGN,
 CONSTRUCTION,  RECONSTRUCTION,  REHABILITATION,  IMPROVEMENT, FURNISHING
 AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR,  SCHOOL  DISTRICT  CAPITAL
 FACILITIES. FOR PURPOSES OF THIS SUBDIVISION, AGENCY SHALL HAVE THE SAME
 MEANING  AS  SUBDIVISION ONE OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS
 TITLE AND SHALL INCLUDE THE INDUSTRIAL DEVELOPMENT AGENCIES  ESTABLISHED
 PURSUANT  TO  TITLES  ELEVEN  AND FIFTEEN OF ARTICLE EIGHT OF THE PUBLIC
 AUTHORITIES LAW.
   (B) ALL CONTRACTS ENTERED INTO BY AN AGENCY PURSUANT TO THE PROVISIONS
 OF THIS SUBDIVISION SHALL BE DEEMED TO BE  STATE  CONTRACTS  WITHIN  THE
 MEANING  OF THAT TERM AS SET FORTH IN ARTICLE FIFTEEN-A OF THE EXECUTIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11488-02-1

 A. 7841                             2
 
 LAW, AND THE AGENCY SHALL BE DEEMED, FOR THE PURPOSES OF  THIS  SUBDIVI-
 SION, A CONTRACTING AGENCY AS THE TERM IS USED IN SUCH ARTICLE.
   (C)  NO  LEASE,  SUBLEASE OR OTHER AGREEMENT BY AND BETWEEN THE SCHOOL
 DISTRICT OF ANY SMALL CITY AND AN AGENCY FOR THE PURPOSE OF FINANCING OR
 RE-FINANCING SCHOOL DISTRICT CAPITAL FACILITIES OR SCHOOL DISTRICT CAPI-
 TAL EQUIPMENT PURSUANT TO  THE  PROVISIONS  OF  THIS  SUBDIVISION  SHALL
 CONSTITUTE  INDEBTEDNESS FOR THE PURPOSES OF SECTION 104.00 OF THE LOCAL
 FINANCE LAW.
   (D) ANY SUCH LEASE, SUBLEASE, OR OTHER AGREEMENT SHALL NOT  CONSTITUTE
 OR  CREATE  INDEBTEDNESS  OF  THE  STATE  OR A POLITICAL SUBDIVISION FOR
 PURPOSES OF ARTICLE SEVEN OR EIGHT OF THE STATE CONSTITUTION OR  SECTION
 20.00  OF  THE  LOCAL FINANCE LAW, SHALL BE DEEMED EXECUTORY ONLY TO THE
 EXTENT OF MONEY APPROPRIATED ANNUALLY THEREFOR BY THE STATE OR POLITICAL
 SUBDIVISION AND SHALL NOT CONSTITUTE A CONTRACTUAL OBLIGATION IN  EXCESS
 OF THE AMOUNTS SO APPROPRIATED; PROVIDED, HOWEVER, THAT THE TOTAL AMOUNT
 OF  UNPAID  PAYMENTS  DUE UNDER ANY SUCH LEASE, SUBLEASE OR AGREEMENT ON
 ACCOUNT OF PRINCIPAL DUE ON BONDS ISSUED BY AN AGENCY SHALL BE DEEMED TO
 BE INDEBTEDNESS WITHIN THE MEANING OF SUBDIVISION THREE OF  PARAGRAPH  A
 OF SECTION 135.00 OF THE LOCAL FINANCE LAW EXCEPT TO THE EXTENT THAT ANY
 PORTION  OF THE INDEBTEDNESS, IF ISSUED BY THE SCHOOL DISTRICT, WOULD BE
 EXCLUDED PURSUANT TO SECTION 136.00 OF THE LOCAL FINANCE LAW.
   (E) A SMALL CITY SCHOOL DISTRICT SHALL HAVE THE FULL POWER AND AUTHOR-
 ITY TO ENTER INTO SUCH LEASES, SUBLEASES, OR ANY OTHER AGREEMENTS  UNDER
 THIS  SUBDIVISION WITH OTHER SMALL CITY SCHOOL DISTRICTS FOR THE PURPOSE
 OF JOINTLY CONTRACTING FOR SUCH INDEBTEDNESS.
   § 3. This act shall take effect immediately.