S T A T E O F N E W Y O R K
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4174
2019-2020 Regular Sessions
I N A S S E M B L Y
February 1, 2019
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Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Libraries and Education Technology
AN ACT to amend the education law and the state finance law, in relation
to establishing a public library revolving loan fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The education law is amended by adding a new section 273-b
to read as follows:
§ 273-B. PUBLIC LIBRARY REVOLVING LOAN PROGRAM. 1. THE COMMISSIONER
SHALL ESTABLISH AND MAINTAIN A PUBLIC LIBRARY REVOLVING LOAN PROGRAM TO
PROVIDE LOANS TO LIBRARIES AND LIBRARY SYSTEMS FOR THE PURPOSES DESIG-
NATED IN THIS PART. NOTWITHSTANDING THE PROVISIONS OF ANY LAW TO THE
CONTRARY, STATE FINANCIAL ASSISTANCE IN THE FORM OF A LOAN MAY BE
PROVIDED FOR UP TO FIFTY PERCENT OF THE APPROVED COSTS (EXCLUDING FEASI-
BILITY STUDIES, PLANS OR SIMILAR ACTIVITIES) OF ELIGIBLE PROJECTS FOR
CAPITAL CONSTRUCTION BY AN ELIGIBLE PUBLIC, FREE ASSOCIATION OR INDIAN
LIBRARY, OR BY A PUBLIC, SCHOOL OR REFERENCE AND RESEARCH LIBRARY
RESOURCE SYSTEM, AS PROVIDED IN THIS SECTION. IN AREAS OF HIGH NEED, AS
DEFINED IN REGULATIONS PROMULGATED BY THE COMMISSIONER PURSUANT TO
SUBDIVISION ELEVEN OF THIS SECTION, A LOAN OF UP TO SEVENTY-FIVE PERCENT
OF APPROVED COSTS (EXCLUDING FEASIBILITY STUDIES, PLANS OR SIMILAR
ACTIVITIES) MAY BE APPROVED BY THE COMMISSIONER. A LIBRARY OR LIBRARY
SYSTEM MAY SUBMIT AN APPLICATION FOR STATE FINANCIAL ASSISTANCE FOR
ELIGIBLE PROJECTS AS PROVIDED IN THIS SECTION.
2. THE COMMISSIONER, AFTER REVIEW OF THE PROGRAMMATIC AND FISCAL NEEDS
AND RESOURCES OF THE PROJECT AND THE LIBRARY OR LIBRARY SYSTEM, SHALL
MAKE A DETERMINATION, SUBJECT TO THE RESTRICTIONS, LIMITATIONS, RESPON-
SIBILITIES AND REQUIREMENTS OF THIS SECTION, AS TO THE AMOUNT OF STATE
FINANCIAL ASSISTANCE THAT THE LIBRARY OR LIBRARY SYSTEM MAY RECEIVE FOR
ANY AMOUNT UP TO AND INCLUDING THE AMOUNT OF FIVE HUNDRED THOUSAND
DOLLARS. ANY FINANCIAL ASSISTANCE MAY BE PROVIDED FROM THE PUBLIC
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04856-01-9
A. 4174 2
LIBRARY REVOLVING LOAN FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-E
OF THE STATE FINANCE LAW. INTEREST IN ANY SUCH LOAN SHALL BE SET AT TWO
POINTS BELOW THE PRIME RATE. ELIGIBLE PROJECTS SHALL INCLUDE:
A. CONSTRUCTION OF A NEW FACILITY FOR LIBRARY PURPOSES;
B. IMPROVEMENT, EXPANSION OR REHABILITATION OF A BUILDING FOR LIBRARY
PURPOSES;
C. IMPROVEMENT, EXPANSION OR REHABILITATION OF EXISTING BUILDING OR
BUILDINGS TO PROVIDE FOR HANDICAPPED ACCESSIBILITY;
D. SUCH OTHER PROJECTS OF SUBSTANTIVE CHARACTER AS ARE IN KEEPING WITH
THE SPIRIT AND INTENT OF THIS SECTION.
NO PROJECT SHALL BE CONSIDERED ELIGIBLE IF IT IS APPROVED FOR FINANC-
ING FROM ANY OTHER STATE ASSISTANCE PROGRAM, EXCEPTING AID FOR LIBRARY
CONSTRUCTION AWARDED PURSUANT TO SECTION TWO HUNDRED SEVENTY-THREE-A OF
THIS ARTICLE.
3. EACH APPLICATION FOR FINANCIAL ASSISTANCE SHALL BE SUBMITTED TO THE
COMMISSIONER BY THE BOARD OF TRUSTEES OF THE LIBRARY OR LIBRARY SYSTEM.
EACH APPLICATION SHALL:
A. DEMONSTRATE THAT ADEQUATE OPERATING SUPPORT AND RESOURCES WILL BE
AVAILABLE AT THE COMPLETION OF THE PROJECT TO PROVIDE AN IMPROVED OR
INCREASED LEVEL OF SERVICE;
B. CONTAIN VERIFICATION IN SUCH FORM AS MAY BE ACCEPTABLE TO THE
COMMISSIONER THAT THE REMAINING COST OF THE PROJECT, EXCLUSIVE OF STATE
FINANCIAL ASSISTANCE, HAS BEEN OR WILL BE OBTAINED;
C. DEMONSTRATE THAT THE PROJECT WILL BE COMPLETED PROMPTLY AND IN
ACCORDANCE WITH THE APPLICATION;
D. EITHER DEMONSTRATE THAT THE OPERATION OF THE ORGANIZATION WILL BE
MADE MORE ECONOMICAL OR EFFICIENT AS A CONSEQUENCE OF APPROVAL OR DEMON-
STRATE THAT HEALTH AND SAFETY CONCERNS WILL BE REPAIRED OR ACCESS TO
HANDICAPPED PROVIDED;
E. DEMONSTRATE THAT THE PROJECT WILL BE CONDUCTED IN ACCORDANCE WITH
APPLICABLE FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS;
F. DEMONSTRATE THAT, WHERE APPROPRIATE, COMPETITIVE BIDDING PROCEDURES
WILL BE FOLLOWED AS REQUIRED BY LAW, OR PROVIDE SUCH OTHER EVIDENCE OF
COMPETITION AS SHALL BE SATISFACTORY TO THE COMMISSIONER;
G. PROVIDE AN ASSESSMENT OF THE USEFUL LIFE OF THE PROJECT, AND SUCH
RECOMMENDATION, ANALYSIS OF NEEDS OR FEASIBILITY STUDIES AS MAY BE
REQUIRED BY THE COMMISSIONER PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF
THIS SECTION THE TERM "USEFUL LIFE" SHALL MEAN SUCH METHOD OF CALCULAT-
ING THE WORTH OF A PROJECT AND THE AMOUNT OF ANNUAL DEPRECIATION NECES-
SARY FOR EFFECTING CONTRACTS UNDER THIS SECTION AS THE COMMISSIONER
SHALL REQUIRE AFTER CONSULTATION WITH THE STATE COMPTROLLER AND UPON
APPROVAL BY THE STATE DIVISION OF THE BUDGET;
H. DEMONSTRATE THAT THE PROJECT WILL COMPLY WITH THE REQUIREMENT OF
ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW RELATING TO THE PARTICIPATION BY
MINORITY GROUP MEMBERS AND WOMEN;
I. PROVIDE SUCH OTHER INFORMATION AS MAY BE REQUIRED BY THE COMMIS-
SIONER.
4. EACH LIBRARY OR LIBRARY SYSTEM MAY SUBMIT NO MORE THAN ONE APPLICA-
TION ANNUALLY. ANY OTHER PROVISION OF THIS SECTION TO THE CONTRARY
NOTWITHSTANDING, NO LIBRARY OUTLET SHALL RECEIVE STATE FINANCIAL ASSIST-
ANCE UNDER THIS SECTION FOR MORE THAN ONE YEAR IN ANY CONSECUTIVE THREE-
YEAR PERIOD.
5. ANY OTHER PROVISION OF LAW OR OF THIS SECTION TO THE CONTRARY
NOTWITHSTANDING, STATE FINANCIAL ASSISTANCE SHALL NOT BE PROVIDED PURSU-
ANT TO THIS SECTION UNTIL THE COMMISSIONER HAS:
A. 4174 3
A. CONSIDERED THE USEFUL LIFE OF THE ELIGIBLE PROJECT AS SUCH TERM IS
DEFINED IN PARAGRAPH G OF SUBDIVISION THREE OF THIS SECTION;
B. DETERMINED THE AMOUNT OF STATE FINANCIAL ASSISTANCE TO BE PROVIDED;
AND
C. EXECUTED AN AGREEMENT TO PROVIDE SUCH ASSISTANCE. SUCH AGREEMENT
SHALL BE EXECUTED BY THE COMMISSIONER AND THE LIBRARY OR LIBRARY SYSTEM.
ANY SUCH AGREEMENT SHALL PROVIDE FOR THE CREATION OF A LIEN OR OTHER
SECURITY INTEREST OR SUCH OTHER GUARANTEE AS SHALL BE SATISFACTORY TO
THE COMMISSIONER TO ASSURE REPAYMENT OF FINANCIAL ASSISTANCE PROVIDED
UNDER THIS SECTION. SUCH AGREEMENT SHALL ASSURE THAT THE LENGTH OF A
LOAN SHALL NOT EXCEED THE USEFUL LIFE OF THE PROJECT AND SHALL INCLUDE,
IN ADDITION TO SUCH OTHER PROVISIONS AS THE COUNCIL MAY REQUIRE, THE
FOLLOWING:
(I) THE AMOUNT OF FINANCIAL ASSISTANCE, THE TERMS AND CONDITIONS UPON
WHICH IT IS PROVIDED, THE USEFUL LIFE OF THE ELIGIBLE PROJECT AND THE
METHOD OF DEPRECIATING THE ELIGIBLE PROJECT FOR PURPOSES OF THE REPAY-
MENT PROVISIONS OF THE AGREEMENT;
(II) A REQUIREMENT THAT, UPON A FINDING BY THE COMMISSIONER THAT A
PROJECT HAS NOT BEEN COMPLETED, OR HAS NOT BEEN COMPLETED IN ACCORDANCE
WITH THE TERMS OF THE AGREEMENT, THE OUTSTANDING BALANCE OF FINANCIAL
ASSISTANCE PROVIDED IN THE FORM OF A LOAN SHALL BE REPAID TO THE COMMIS-
SIONER BY THE GUARANTOR, PROVIDED THAT UPON A SHOWING OF GOOD CAUSE BY
THE ORGANIZATION THE COMMISSIONER SHALL GRANT AN EXTENSION OF UP TO
NINETY DAYS FROM THE DATE OF SUCH FINDING TO ALLOW THE LIBRARY OR
LIBRARY SYSTEM TO COMPLETE THE PROJECT IN ACCORDANCE WITH THE TERMS OF
THE AGREEMENT, AND FURTHER PROVIDED THAT THE COMMISSIONER SHALL PROVIDE
NO MORE THAN TWO SUCH EXTENSIONS FROM THE DATE OF SUCH FINDING TO ALLOW
THE LIBRARY OR LIBRARY SYSTEM TO COMPLETE THE PROJECT IN ACCORDANCE WITH
THE TERMS OF THE AGREEMENT.
6. IN ANY CASE IN WHICH STATE FINANCIAL ASSISTANCE IS PROVIDED THE
FOLLOWING SHALL BE INCLUDED IN THE AGREEMENT: A REQUIREMENT THAT THE
LIBRARY OR LIBRARY SYSTEM SHALL OBTAIN, IN ADDITION TO SUCH OTHER SECU-
RITY AS MAY BE REQUIRED BY THE COMMISSIONER OR BY OTHER PROVISIONS OF
LAW, AN UNDERTAKING OR SURETY BOND FROM ANY PERSON OR ENTITY WHICH HAS
CONTRACTED TO PERFORM WORK ON AN APPROVED PROJECT TO ASSURE THE FAITHFUL
PERFORMANCE OF SUCH PROJECT AND/OR A LABOR AND/OR MATERIAL BOND AS MAY
BE APPROPRIATE.
7. ANY LIEN, SECURITY INTEREST OR GUARANTEE ESTABLISHED CREATED UNDER
THE PROVISIONS OF SUBDIVISION FIVE OR SIX OF THIS SECTION SHALL BE IN
ADDITION TO ANY OTHER RIGHTS OR OBLIGATIONS OF THE COMMISSIONER UNDER
THE PROVISIONS OF THE LIEN LAW OR ANY OTHER LAW.
8. THE COMMISSIONER SHALL CAUSE TO BE FILED AND TO BE RECORDED IN THE
OFFICE OF THE COUNTY CLERK IN THE COUNTY WHERE THE SUBJECT PROPERTY IS
SITUATED ANY LIEN OR OTHER SECURITY INTEREST AS MAY BE REQUIRED TO
ASSURE REPAYMENT OF FINANCIAL ASSISTANCE IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION. THE DEPARTMENT OF LAW SHALL PROVIDE SUCH
ASSISTANCE AS THE COMMISSIONER MAY REQUIRE TO CREATE AND PERFECT ANY
SUCH LIENS OR OTHER SECURITY INTERESTS.
9. IN APPROVING APPLICATIONS PURSUANT TO THIS SECTION, THE COMMISSION-
ER SHALL SEEK TO INSURE THAT SIXTY PERCENT OF THE FUNDS APPROPRIATED
PURSUANT TO THIS SECTION SHALL BE MADE AVAILABLE IN SUCH A MANNER AS TO
INSURE THAT THE RATIO OF THE AMOUNT RECEIVED WITHIN EACH PUBLIC LIBRARY
SYSTEM TO THE WHOLE OF THE FINANCIAL ASSISTANCE MADE AVAILABLE PURSUANT
TO THIS SUBDIVISION IS NO GREATER THAN THE RATIO OF THE POPULATION OF
SUCH PUBLIC LIBRARY SYSTEM TO THE POPULATION OF THE STATE. ANY FUNDS
MADE AVAILABLE PURSUANT TO THIS SECTION WHICH, BY DECEMBER THIRTY-FIRST
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OF THE YEAR IN WHICH THIS SECTION SHALL HAVE BECOME A LAW, AND OCTOBER
THIRTY-FIRST OF EACH YEAR THEREAFTER, ARE DECLINED BY OR WHICH CANNOT BE
USED BY SUCH LIBRARIES OR LIBRARY SYSTEMS, AS DETERMINED BY THE COMMIS-
SIONER, SHALL BE MADE AVAILABLE TO OTHER ELIGIBLE LIBRARIES OR LIBRARY
SYSTEMS FOR ELIGIBLE PROJECTS.
10. IN THE EVENT AN ELIGIBLE LIBRARY OR LIBRARY SYSTEM FAILS TO MAKE A
PAYMENT ON A LOAN OR FAILS TO MAKE ANY OTHER PAYMENT REQUIRED UNDER THE
PROVISIONS OF THIS SECTION, THE COMMISSIONER SHALL INFORM THE COMP-
TROLLER OF SUCH FAILURE AND OF THE AMOUNT OVERDUE, WHICH AMOUNT THE
COMPTROLLER MAY RECOVER FROM ANY PAYMENTS DUE FROM THE STATE TO THE
ELIGIBLE ORGANIZATION, INCLUDING LOCAL ASSISTANCE PAYMENTS.
11. THE COMMISSIONER SHALL ADOPT GUIDELINES WITHIN ONE HUNDRED EIGHTY
DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND SHALL PROMULGATE RULES
AND REGULATIONS NOT LATER THAN SEPTEMBER FIRST, TWO THOUSAND NINETEEN AS
ARE NECESSARY TO CARRY OUT THE PURPOSES AND PROVISIONS OF THIS SECTION.
IN ADDITION TO ANY OTHER REQUIREMENTS SET FORTH BY THIS SECTION, THE
COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE RECOUPMENT OF FINANCIAL
ASSISTANCE PROVIDED IN THE EVENT THAT A PROJECT IS NOT COMPLETED OR NOT
COMPLETED AS PROPOSED BY THE APPLICANT LIBRARY OR LIBRARY SYSTEM. COPIES
OF SUCH RULES AND REGULATIONS SHALL BE PROVIDED AT LEAST SIXTY DAYS
PRIOR TO THE TIME THEY SHALL BE EFFECTIVE TO THE SENATE FINANCE COMMIT-
TEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE.
12. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR, THE TEMPORARY PRES-
IDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRS OF THE
SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS AND MEANS COMMITTEE NOT LATER
THAN JANUARY FIFTEENTH OF EACH YEAR CONCERNING THE AMOUNTS APPROPRIATED
AND EXPENDED PURSUANT TO THIS SECTION, THE NUMBER OF APPLICATIONS
RECEIVED, THE TOTAL AMOUNT OF FINANCIAL ASSISTANCE REQUESTED, THE TOTAL
NUMBER OF APPLICATIONS FUNDED, THE AMOUNT OF FUNDING PROVIDED, AND SUCH
OTHER INFORMATION AS THE CHAIR SHALL DEEM APPROPRIATE, INCLUDING ANY
RECOMMENDATIONS FOR PROGRAM IMPROVEMENT, RECOMMENDATIONS FOR INCREASING
THE TOTAL AMOUNT OF FUNDING FROM STATE AND NON-STATE SOURCES AVAILABLE
TO INCREASE TOTAL FUNDS FOR PROJECTS AVAILABLE TO THE LIBRARIES AND
LIBRARY SYSTEMS OF THIS STATE, IN PARTICULAR FOR RURAL AND MINORITY
COMMUNITIES, AND IDENTIFICATION OF AND PROPOSALS FOR REMOVING BARRIERS
OR LIMITS FACED BY COMMUNITIES IN ACCESSING THE PROGRAM OR IN MAXIMIZING
USE OF FUNDS PROVIDED HEREUNDER.
§ 2. The state finance law is amended by adding a new section 91-e to
read as follows:
§ 91-E. PUBLIC LIBRARY REVOLVING LOAN FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "PUBLIC
LIBRARY REVOLVING LOAN FUND".
2. THE PUBLIC LIBRARY REVOLVING LOAN FUND SHALL CONSIST OF ALL MONIES
APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM THE GENERAL FUND OR
ANY OTHER SOURCE PURSUANT TO LAW, INCLUDING THE REPAYMENT OF LOANS
PROVIDED TO MUNICIPALITIES PURSUANT TO SECTION TWO HUNDRED SEVENTY-
THREE-B OF THE EDUCATION LAW.
§ 3. This act shall take effect July 1, 2019.