S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7636
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              August 18, 2023
                                ___________
 
 Introduced  by Sen. MARTINEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the local finance law, in relation to authorizing school
   districts to borrow against certain reserve funds
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  local finance law is amended by adding a new section
 25.11 to read as follows:
   § 25.11 BORROWING FROM RESERVE FUNDS. A. 1. PURSUANT TO  A  RESOLUTION
 ADOPTED  BY  THE  BOARD OF EDUCATION OF ANY SCHOOL DISTRICT, SUCH SCHOOL
 DISTRICT MAY BORROW FROM CERTAIN RESERVE FUNDS TO REDUCE RELIANCE ON TAX
 ANTICIPATION NOTES AND REVENUE ANTICIPATION NOTES.
   2. SUCH RESOLUTION SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A) THE AMOUNT TO BE BORROWED;
   (B) THE RESERVE FROM WHICH THE SCHOOL DISTRICT INTENDS TO BORROW;
   (C) THE AMOUNT AND SOURCE OF TAXES OR OTHER REVENUE ANTICIPATED TO  BE
 RECEIVED; AND
   (D)  THE TIMEFRAME IN WHICH SUCH TAXES OR OTHER REVENUE IS ANTICIPATED
 TO BE RECEIVED AND THE SCHEDULE UPON  WHICH  REPAYMENT  SHALL  BE  MADE,
 INCLUDING  A  SPECIFIC DATE FOR FINAL REPAYMENT; PROVIDED, HOWEVER, THAT
 NOTHING SHALL PROHIBIT A SCHOOL DISTRICT FROM PAYING AHEAD OF SUCH SCHE-
 DULE.
   3. SCHOOL DISTRICTS SHALL NOT BORROW IN EXCESS OF SEVENTY-FIVE PERCENT
 OF THE TOTAL OF EACH RESERVE FUND.
   B. 1. BORROWING FROM RESERVE FUNDS  SHALL  BE  LIMITED  TO  TAXES  AND
 REVENUE ANTICIPATED TO BE RECEIVED IN THE SAME FISCAL YEAR IN WHICH SUCH
 BORROWING  TAKES  PLACE;  PROVIDED,  HOWEVER,  THAT DURING THE FINAL TWO
 WEEKS OF A GIVEN FISCAL YEAR, SUCH  BORROWING  MAY  BE  INITIATED  BY  A
 SCHOOL  DISTRICT IN ANTICIPATION OF MONEYS TO BE RECEIVED IN THE FOLLOW-
 ING FISCAL YEAR.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11981-01-3
 S. 7636                             2
              

 
   2. FINAL REPAYMENT SHALL BE SCHEDULED WITHIN THE SAME FISCAL  YEAR  IN
 WHICH THE BORROWING TAKES PLACE; PROVIDED, HOWEVER, THAT IF SUCH BORROW-
 ING  WAS  INITIATED  IN  THE FINAL TWO WEEKS OF THE PRIOR FISCAL YEAR IN
 ANTICIPATION OF MONEYS TO BE RECEIVED IN THE CURRENT FISCAL YEAR  PURSU-
 ANT  TO  SUBDIVISION  ONE OF THIS PARAGRAPH, SUCH FINAL REPAYMENT MAY BE
 SCHEDULED WITHIN THE FISCAL YEAR DURING WHICH  SUCH  ANTICIPATED  MONEYS
 ARE RECEIVED.
   C.  THE FOLLOWING RESERVE FUNDS MAY BE BORROWED FROM PURSUANT TO PARA-
 GRAPH A OF THIS SECTION:
   1. WORKMEN'S COMPENSATION RESERVE FUND, AS AUTHORIZED BY SECTION SIX-J
 OF THE GENERAL MUNICIPAL LAW;
   2. UNEMPLOYMENT INSURANCE  PAYMENT  RESERVE  FUND,  AS  AUTHORIZED  BY
 SECTION SIX-M OF THE GENERAL MUNICIPAL LAW;
   3.  REPAIR RESERVE FUND, AS AUTHORIZED BY SECTION SIX-D OF THE GENERAL
 MUNICIPAL LAW;
   4. INSURANCE RESERVE FUND, AS  AUTHORIZED  BY  SECTION  SIX-N  OF  THE
 GENERAL MUNICIPAL LAW;
   5.  PROPERTY  LOSS  RESERVE  FUND,  AS AUTHORIZED BY SECTION SEVENTEEN
 HUNDRED NINE OF THE EDUCATION LAW;
   6. EMPLOYEE BENEFIT ACCRUED LIABILITY RESERVE FUND, AS  AUTHORIZED  BY
 SECTION SIX-P OF THE GENERAL MUNICIPAL LAW; AND
   7.  TAX  REDUCTION  RESERVE  FUND,  AS  AUTHORIZED BY SECTIONS SIXTEEN
 HUNDRED FOUR AND SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW.
   § 2. This act shall take effect July 1, 2024.