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BILL NUMBER:S3861

TITLE OF BILL:  An act to amend the local finance law, in relation to contents of notice of meeting or election where special tax or tax to be collected in installments is to be voted on

PURPOSE:  To require that the estimated total interest costs associated with a bond resolution or capital note resolution be added to the contents of notice of meeting or election where special tax or tax to be collected in installments is to be voted on.

SUMMARY OF PROVISIONS:

Section 1 amends Section 41.10 of the local finance law by adding "where the estimated total cost of all of the items includes, and lists, the estimated total interest costs associated with the bond resolution or capital note resolution; provided, however, with regard to school districts, the cost of providing such total interest costs shall be minimized to the greatest extent possible."

Section 2 of this bill provides for an immediate effective date.

JUSTIFICATION:  Currently school districts are not required to disclose estimated interest costs during capital projects to voters. This legislation would require school districts to disclose this estimated interest cost, similar to the way a bank is required to disclose interest cost to homeowners applying for mortgages.

LEGISLATIVE HISTORY: S5204A of 2011/2012

FISCAL IMPLICATIONS: Minimal or None.

EFFECTIVE DATE:  This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

3861

2013-2014 Regular Sessions

IN SENATE

February 25, 2013
___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the local finance law, in relation to contents of notice
  of meeting or election where special tax or tax  to  be  collected  in
  installments is to be voted on

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

  Section 1. Section 41.10 of the local finance law, as added by chapter
582 of the laws of 1951, is amended to read as follows:
  S 41.10 Contents of notice of meeting or election where special tax or
tax to be collected in installments is to be voted.  Where the voting of
a special tax or a tax to be collected in installments  is  a  condition
precedent  to  the  adoption of a bond resolution or capital note resol-
ution and the bonds or capital notes are  to  be  issued  to  finance  a
specific object or purpose, the notice of the meeting or the election at
which  such  tax  is voted must state the estimated maximum cost of each
item of such specific object or purpose and the estimated total cost  of
all  of  the  items,  WHERE THE ESTIMATED TOTAL COST OF ALL OF THE ITEMS
INCLUDES, AND LISTS, THE ESTIMATED TOTAL INTEREST COSTS ASSOCIATED  WITH
THE  BOND RESOLUTION OR CAPITAL NOTE RESOLUTION; PROVIDED, HOWEVER, WITH
REGARD TO SCHOOL DISTRICTS, THE COST OF PROVIDING  SUCH  TOTAL  INTEREST
COSTS SHALL BE MINIMIZED TO THE GREATEST EXTENT PRACTICABLE.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01111-01-3