NY State Senate Bill 2021-S6795

Senate Bill S6795

2021-2022 Legislative Session

Authorizes industrial development agencies to finance certain facilities for the small city school districts

download bill text pdf

Archive: Last Bill Status - In Senate Committee Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to education
Jun 10, 2021	recommitted to rules
Jun 02, 2021	ordered to third reading cal.1466 committee discharged and committed to rules
May 17, 2021	referred to education

Votes

- Jun 2, 2021 - Rules Committee Vote
  S6795
  
  16
  
  Aye
  
  0
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 2, 2021
      
      aye (16)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      aye wr (5)
      
      Boyle
      
      Griffo
      
      O'Mara
      
      Ortt
      
      Ritchie

2021-S6795 (ACTIVE) - Details

See Assembly Version of this Bill:: A7841
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §2503, Ed L; amd §858, Gen Muni L

2021-S6795 (ACTIVE) - Summary

Authorizes industrial development agencies to finance certain facilities for the small city school districts; permits 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 such facilities.

2021-S6795 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6795

SPONSOR: MAYER
 
TITLE OF BILL:

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

 
PURPOSE:

To permit small city school districts to finance capital projects
through industrial development agencies and authorities.

 
SUMMARY OF PROVISIONS:

Sections one and two amend the education law and the general municipal
law to include small city school districts for purposes of financing
capital projects through industrial development agencies.

Section two further states such financings shall be deemed state

contracts under the executive law and allows for lease, sublease or
other agreements between the entities and the small city school
districts.

Section 3 establishes the effective date.

 
JUSTIFICATION:

Non-city, fiscally independent school districts in New York State are
subject to a 10 percent debt limit pursuant to the provisions of the
Local Finance Law and may deduct Building Aid from the debt ceiling
computation. Small city school districts, however, are limited to a five
percent debt limit and are unable to apply Building Aid to offset this
cap. The restriction on debt capacity for small city school districts
has limited construction, reconstruction, rehabilitation and moderniza-
tion of their school buildings and is ultimately contributing to more
costly projects over longer periods of time. Additionally, efforts to
improve learning environments and maintain appropriate classroom
settings are impacted by borrowing limitations. This bill would align
with measures already adopted for large city school district to enable
small city school districts to advance necessary school construction,
reconstruction and renovation projects by permitting an alternate
financing mechanism. Voter approval for such projects would continue to
be required.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None in 2021-22. Building Aid reimbursement is lagged and paid on a debt
service schedule payable over multiple years.

 
EFFECTIVE DATE:
Immediately.

2021-S6795 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6795
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 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

 S. 6795                             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.

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