S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7049
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 10, 2023
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Education
 
 AN ACT to amend the local finance law, in relation to the contracting of
   indebtedness by city school districts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraphs b, c and  d  of  section  104.00  of  the  local
 finance  law,  paragraphs b and c as added by chapter 831 of the laws of
 1951 and paragraph d as amended by chapter 424 of the laws of 2001,  are
 amended to read as follows:
   b.  No county, city, town[,] OR village [or school district in a city]
 shall contract indebtedness for any purpose  or  in  any  manner  which,
 including  existing  indebtedness,  shall  exceed an amount equal to the
 following percentages of the average  full  valuation  of  such  county,
 city, town[,] OR village [or school district]:
   1. The county of Nassau, for county purposes, ten per centum;
   2.  Any  county, other than the county of Nassau, for county purposes,
 seven per centum;
   3. The city of New York, for city purposes, ten per centum;
   4. Any city, other than the city of New York, having one hundred twen-
 ty-five thousand or more inhabitants according  to  the  latest  federal
 census, for city purposes[;], nine per centum;
   5. Any city having less than one hundred twenty-five thousand inhabit-
 ants according to the latest federal census, for city purposes, [exclud-
 ing education purposes,] seven per centum;
   6. Any town, for town purposes, seven per centum; AND
   7. Any village, for village purposes, seven per centum[; and
   8.  Any  school  district  in a city, for education purposes, five per
 centum].
   c. [Notwithstanding the provisions of paragraph b of this section  any
 school  district  in  a city may issue bonds, bond anticipation notes or

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10983-01-3
              

 A. 7049                             2

 capital notes for a specific object or purpose, and, where authorized by
 this chapter, for a class of objects or purposes, in  an  amount  which,
 including  existing  indebtedness,  shall exceed an amount equal to five
 per  centum  of  the  average  full  valuation  of such school district,
 provided:
   1. The tax voted to be collected in installments in relation  thereto,
 or the proposition for the approval of a bond resolution or capital note
 resolution  in  relation  thereto, shall have been voted or approved, as
 the case may be, by at least a sixty per centum vote  of  the  qualified
 voters  voting  thereon  in person at the meeting or election called for
 such purpose;
   2. The proposition to authorize the tax to be  collected  in  install-
 ments in relation thereto, or the proposition for the approval of a bond
 resolution  or  capital note resolution in relation thereto, contained a
 statement to the effect that the obligations to be issued may be  issued
 in  excess of the constitutional debt limitation of the school district;
 and
   3. The board of regents and  the  state  comptroller  severally  shall
 consent thereto.
   d.] A school district, [other than a school district in a city, having
 an  aggregate assessed valuation of taxable real property of one hundred
 thousand dollars or over,] except  for  the  payment  of  judgments,  or
 compromised  or settled claims against the school district, or awards or
 sums payable by the school district pursuant to  a  determination  by  a
 court,  or  an  officer,  body  or agency acting in an administrative or
 quasi-judicial capacity, shall not  issue  bonds  or  bond  anticipation
 notes, if the indebtedness of the school district determined pursuant to
 section  137.00  of this [chapter] ARTICLE will exceed ten per centum of
 the full valuation of the real  property  subject  to  taxation  by  the
 school district, unless:
   1.  The tax voted to be collected in installments in relation thereto,
 or the proposition for the approval of a  bond  resolution  in  relation
 thereto,  shall  have been voted or approved, as the case may be, before
 July first, nineteen hundred sixty-three, by at least a two thirds vote,
 or on and after July first, nineteen hundred sixty-three, by at least  a
 sixty  per centum vote, of the qualified voters voting thereon in person
 at the meeting or election called for such purpose;
   2. The board of regents shall consent thereto; and
   3. In a school district located wholly or  partly  in  the  Adirondack
 park  which  has  within its boundaries state lands subject to taxation,
 the full valuation of which is more than thirty per centum of  the  full
 valuation  of  the  real  property  subject  to  taxation  by the school
 district, the state comptroller, on behalf  of  the  state,  also  shall
 consent thereto.
   §  2.  This  act  shall  take  effect on the same date as a concurrent
 resolution of the senate and assembly proposing an amendment to  section
 4  of article 8 of the constitution, in relation to limitations on local
 indebtedness, as proposed in legislative bills numbers S.  5025  and  A.
 1771-A, takes effect.