Bill S5821-2011

Relates to assumed amortization for certain school district projects approved by the commissioner

Relates to assumed amortization for certain school district projects approved by the commissioner.

Details

Actions

  • Jan 4, 2012: REFERRED TO EDUCATION
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Jun 21, 2011: referred to education
  • Jun 21, 2011: DELIVERED TO ASSEMBLY
  • Jun 21, 2011: PASSED SENATE
  • Jun 21, 2011: ORDERED TO THIRD READING CAL.1447
  • Jun 17, 2011: REFERRED TO RULES

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 21, 2011
Ayes (21): Skelos, Alesi, Farley, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Saland, Seward, Sampson, Breslin, Dilan, Duane, Hassell-Thompson, Perkins, Smith, Stewart-Cousins
Ayes W/R (1): Montgomery
Nays (2): Krueger, Parker

Memo

BILL NUMBER:S5821

TITLE OF BILL: An act to amend the education law, in relation to assumed amortization for certain school district projects approved by the commissioner

PURPOSE OR GENERAL IDEA OF BILL: This bill changes the current penalty for the failure of school district to file final cost reports. Under current law when a district fails to file a final cost report the entire amount of aid on the project is recovered. This bill would change that practice so when a district fails to file the report aid will not be allocated to the district until such report is filed. Districts may obtain a waiver from the State education department for larger projects that take multiple years.

SUMMARY OF PROVISIONS: Section 1. Alters the statutory penalty for when a district fails to file a final cost report.

JUSTIFICATION: Current law reduces aid to districts for failure to file a final cost report which can have a significant negative impact on school district budgets. This bill withholds aid but does not reduce it until a district files its final cost report.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5821 2011-2012 Regular Sessions IN SENATE June 17, 2011 ___________
Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the education law, in relation to assumed amortization for certain school district projects approved by the commissioner THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Clause (b) of subparagraph 3 of paragraph e of subdivision 6 of section 3602 of the education law, as amended by section 1 of part F of chapter 383 of the laws of 2001, is amended to read as follows: (b) Such assumed amortization for a project approved by the commis- sioner on or after the later of the first day of December, two thousand one or thirty days after the date upon which this subdivision shall have become a law AND PRIOR TO THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN or for any debt service related to projects approved by the commissioner prior to such date where a bond, capital note or bond anticipation note is first issued [on or after such date] THE FIRST DAY OF DECEMBER, TWO THOUSAND ONE to fund such projects, shall commence: (i) eighteen months after such approval or (ii) on the date of receipt by the commissioner of a certification by the district that a general construction contract has been awarded for such project by the district, whichever is later, and SUCH ASSUMED AMORTIZATION FOR A PROJECT APPROVED BY THE COMMISSIONER ON OR AFTER THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN SHALL COMMENCE: (III) EIGHTEEN MONTHS AFTER SUCH APPROVAL OR (IV) ON THE DATE OF RECEIPT BY THE COMMISSIONER OF BOTH THE FINAL CERTIFICATE OF SUBSTANTIAL COMPLETION OF THE PROJECT ISSUED BY THE ARCHITECT OR ENGINEER AND THE FINAL COST REPORT FOR SUCH PROJECT, WHICHEVER IS LATER OR (V) UPON THE DATE OF A FINDING BY THE COMMISSIONER THAT THE CERTIFICATE OF SUBSTAN- TIAL COMPLETION OF THE PROJECT HAS BEEN ISSUED BY THE ARCHITECT OR ENGI- NEER, BUT THE DISTRICT IS UNABLE TO COMPLETE THE FINAL COST REPORT BECAUSE OF CIRCUMSTANCES BEYOND THE CONTROL OF THE DISTRICT. SUCH ASSUMED AMORTIZATION shall provide for equal semiannual payments of
principal and interest based on an interest rate established pursuant to subparagraph five of this paragraph for such purpose for the school year during which such certification is received. The first installment of obligations issued by the school district in support of such projects may mature not later than the dates established pursuant to sections 21.00 and 22.10 of the local finance law. S 2. This act shall take effect immediately.

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