S T A T E   O F   N E W   Y O R K
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                                  6435

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2013
                               ___________

Introduced by M. of A. JAFFEE -- read once and referred to the Committee
  on Local Governments

AN  ACT  to  amend  the general municipal law, in relation to the repair
  reserve funds for municipal corporations, school districts,  board  of
  cooperative  educational  services, district corporations and improve-
  ment districts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 6-d of the general municipal law, as added by chap-
ter  383 of the laws of 1950, the section heading and subdivisions 5 and
6 as amended by chapter 693 of  the  laws  of  1952,  subdivision  1  as
amended  by chapter 828 of the laws of 1961, subdivision 2 as amended by
chapter 740 of the laws of 1957, paragraph  (b)  of  subdivision  3  and
subdivision 4 as amended by chapter 140 of the laws of 1996 and subdivi-
sion 7 as amended by chapter 424 of the laws of 2001, is amended to read
as follows:
  S  6-d.  Repair  reserve  funds  for  municipal  corporations,  school
districts, BOARD OF COOPERATIVE EDUCATIONAL  SERVICES,  district  corpo-
rations and improvement districts. 1. The governing board of any munici-
pal  corporation,  school  district,  BOARD  OF  COOPERATIVE EDUCATIONAL
SERVICES, district corporation, or town or county improvement  district,
may  establish a special fund which shall be known as the repair reserve
fund of such municipal corporation, school district,  BOARD  OF  COOPER-
ATIVE   EDUCATIONAL   SERVICES,   district  corporation  or  improvement
district. There may be paid into such fund an amount as may be  provided
therefor by budgetary appropriation or such revenues as are not required
by law to be paid into any other fund or account.
  2. In cases of emergency, moneys in such fund may be expended pursuant
to  a  resolution approved by not less than two-thirds of the members of
the governing body of such municipal corporation, school district, BOARD
OF COOPERATIVE EDUCATIONAL SERVICES, district corporation or improvement

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09637-01-3
              

A. 6435                             2

district providing that not less than one-half of the moneys so expended
shall be repaid in the fiscal year immediately following the fiscal year
in which such moneys were expended and the total amount shall be  repaid
not  later  than  the  last day of the second fiscal year succeeding the
fiscal year in which the moneys were expended.
  Prior to the adoption of any other resolution, act, ordinance or local
law by  the  governing  board  of  such  municipal  corporation,  school
district,  BOARD  OF  COOPERATIVE  EDUCATIONAL SERVICES, district corpo-
ration or improvement district, appropriating money from such fund,  the
governing board shall cause to be published in the official newspaper or
newspapers, if any, or otherwise in a newspaper or newspapers designated
for  such  purpose, a notice stating in substance that it is proposed to
appropriate a specified amount  from  the  repair  reserve  fund  for  a
particular purpose, and that a public hearing on such proposed appropri-
ation  will  be  held  at a time and place stated therein. At least five
days shall elapse between the publication of such notice  and  the  date
specified  for  the  hearing.  The hearing shall be held at the time and
place so specified.
  3. Moneys in such fund may be appropriated only:
  a. For repairs of capital improvements or equipment, which repairs are
of a type not recurring annually or at shorter intervals.
  b. In the case of a municipal corporation, to a capital  reserve  fund
established pursuant to section six-c of this article or to a contingen-
cy  and  tax  stabilization reserve fund established pursuant to section
six-e of this article.
  c. In the case of a fire district, to a capital  reserve  fund  estab-
lished pursuant to section six-g OF THIS ARTICLE.
  d.  In  the  case of a school district, OR BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES to a reserve fund established pursuant to section  thir-
ty-six hundred fifty-one of the education law.
  4.  The  moneys  in  such  fund  shall be deposited and secured in the
manner provided by section ten of this article. The moneys in such  fund
so  deposited  shall  be accounted for separate and apart from all other
funds of the municipal corporation, school district,  BOARD  OF  COOPER-
ATIVE   EDUCATIONAL   SERVICES,   district  corporation  or  improvement
district, in the same manner as provided in subdivision ten  of  section
six-c  of  this article. The governing board or the chief fiscal officer
of such municipal corporation, school  district,  BOARD  OF  COOPERATIVE
EDUCATIONAL  SERVICES,  district corporation or improvement district, if
the governing board shall delegate such duty  to  him,  may  invest  the
moneys  in  such  fund  in the manner provided in section eleven of this
article. Any interest earned or capital gains realized on the moneys  so
deposited or invested shall accrue to and become part of such fund.
  5.  The  members of the governing board of such municipal corporation,
school district, BOARD OF  COOPERATIVE  EDUCATIONAL  SERVICES,  district
corporation or improvement district are hereby declared trustees of such
fund and shall be subject to all the duties and responsibilities imposed
by law on trustees, and such duties and responsibilities may be enforced
by  such municipal corporation, school district, district corporation or
improvement district, as the case may be, or by any  board,  commission,
agency, officer or taxpayer thereof.
  6.  The  members of the governing board of such municipal corporation,
school district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES  or  district
corporation shall be guilty of a misdemeanor if they:
  a.  Authorize  a  withdrawal  from a repair reserve fund for any other
purpose except as provided in this section.

A. 6435                             3

  b. Expend any money withdrawn from a repair reserve fund for a purpose
other than that as provided in this section.
  7.  Notwithstanding  the  foregoing provisions of this section, in any
town which is located wholly or partly within the  Adirondack  park  and
has  within  its  boundaries state lands subject to taxation assessed at
more than thirty per centum of the total taxable assessed  valuation  of
town  as  determined  from the assessment rolls of the town as completed
from time to  time,  or  in  any  district  corporation  or  improvement
district situated in whole or in part in any such town, a repair reserve
fund shall not be established unless the state comptroller, on behalf of
the  state,  shall  consent  thereto,  and  in any such town or district
corporation or improvement district no appropriation shall be made  from
a  repair  reserve  fund  unless the state comptroller, on behalf of the
state, shall consent thereto.
  8. Moneys of a municipal corporation, school district, BOARD OF  COOP-
ERATIVE  EDUCATIONAL  SERVICES  or district corporation which, upon June
thirtieth, nineteen hundred fifty, constitute a repair reserve  fund  of
such municipal corporation, school district, BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES or district corporation, shall continue to so constitute
a special fund and be known as the repair reserve fund of such municipal
corporation,  school district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES
or district corporation. From and after  such  date,  payments  to,  and
appropriations  from,  such  fund  shall  be  subject  to  the foregoing
provisions of this section.
  S 2. This act shall take effect immediately.