This bill has been amended

Bill S6395A-2011

Relates to assumed amortization for school projects

Relates to assumed amortization for school projects.

Details

Actions

  • Mar 6, 2012: PRINT NUMBER 6395A
  • Mar 6, 2012: AMEND AND RECOMMIT TO FINANCE
  • Mar 6, 2012: REPORTED AND COMMITTED TO FINANCE
  • Feb 3, 2012: REFERRED TO EDUCATION

Memo

BILL NUMBER:S6395A

TITLE OF BILL: An act to amend the education law, in relation to assumed amortization for school projects

PURPOSE: To ensure that school districts will receive the reimbursement for capital projects to which they are entitled under law.

SUMMARY OF PROVISIONS: Section 1. Amends clause (b) of subparagraph 3 of paragraph e of subdivision 6 of section 3602 of the education law, as amended by section 4 subpart F of part C of Chapter 97 of the laws of 2011 to allow for assumed amortization of a project by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants.

Section 2. Establishes the effective date.

JUSTIFICATION: Chapter 97 of 2011 was enacted to provide a mechanism in which to ensure districts would receive reimbursement for capital projects by filing a waiver when those documents were not filed before the date required by SED. This Chapter created an issue for a small number of school districts whose project and financing timelines had commenced and/or previously been approved prior to the adoption of Chapter 97. This created an uncertainty as to the reimbursement for these capital projects for school districts and, therefore, they seek action ensuring that they will receive the reimbursement to which they would have otherwise been entitled. This bill provides that assurance by using the voter approval date rather than the Commissioner's approval date for the new building aid methodology while preserving the intent of Chapter 97 of 2011.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6395--A IN SENATE February 3, 2012 ___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Education -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the education law, in relation to assumed amortization for school projects 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 4 of subpart F of part C of chapter 97 of the laws of 2011, 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 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 certif- ication 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] VOTERS OF THE SCHOOL DISTRICT OR BY THE BOARD OF EDUCATION OF A CITY SCHOOL DISTRICT IN A CITY WITH MORE THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, 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 engi- neer 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 substantial completion of the project has been issued by the archi-
tect or engineer, 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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