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

    S. 2                                                        A. 2

                       Third Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            November 29, 2010
                               ___________

IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Finance

IN  ASSEMBLY  --  Introduced by COMMITTEE ON RULES -- (at request of the
  Governor) -- read once and referred to the Committee on Ways and Means

AN ACT to amend the education law, in relation to a contract for  excel-
  lence;  to amend the education law, in relation to education mandates;
  to  amend  the  education  law,  in  relation  to  identifying  school
  districts with high rates of identification of students with disabili-
  ties;  to  amend chapter 756 of the laws of 1992 relating to funding a
  program for work force education conducted by the consortium for work-
  er education in New  York  city,  in  relation  to  apportionment  and
  reimbursement and in relation to the effectiveness of such provisions;
  to  amend  chapter 425 of the laws of 2002, amending the education law
  relating  to  the  provision  of  supplemental  educational  services,
  attendance  at  a  safe public school and the suspension of pupils who
  bring a firearm to or possess a firearm at a school,  in  relation  to
  the effectiveness of such chapter; to amend chapter 101 of the laws of
  2003,  amending the education law relating to implementation of the No
  Child Left Behind Act of 2001, in relation to the effectiveness there-
  of; to amend chapter 147 of the laws of 2001, amending  the  education
  law  relating  to  conditional appointment of school district, charter
  school or BOCES employees, in relation to the  effectiveness  thereof;
  to  amend  chapter  57  of the laws of 2008 amending the education law
  relating to the universal pre-kindergarten  program,  in  relation  to
  extending  the provisions thereof; to amend chapter 386 of the laws of
  1996, amending the education law relating to providing  for  a  waiver
  allowing  state aid in certain circumstances, in relation to extending
  its effectiveness; to amend chapter 57 of the laws of  2004,  relating
  to support of education, in relation to extending the provisions ther-
  eof;  to  amend  chapter  169  of the laws of 1994 relating to certain
  provisions related to the 1994-95 state operations, aid to localities,
  capital projects and debt service budgets, in relation to  the  effec-

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

                                                           LBD12334-02-0

S. 2                                2                               A. 2

  tiveness  thereof; and to amend chapter 82 of the laws of 1995, amend-
  ing the education law and certain other laws relating to state aid  to
  school  districts  and  the  appropriation of funds for the support of
  government,  in  relation  to  the  effectiveness thereof (Part A); to
  amend the education law, in relation to restrictions on eligibility to
  receive awards and loans; and to repeal certain provisions of such law
  relating thereto (Part B); to amend the education law, in relation  to
  tuition  assistance  program  awards  (Part C); to amend the education
  law, in relation to the definition of income for purposes  of  tuition
  assistance program awards (Part D); to amend chapter 57 of the laws of
  2005 amending the education law relating to the New York state nursing
  faculty  loan  forgiveness  incentive  program  and the New York state
  nursing faculty scholarship program, in relation to the  effectiveness
  thereof  (Part  E);  to amend chapter 31 of the laws of 1985, amending
  the  education  law  relating  to  regents  scholarships  in   certain
  professions,  in  relation  to  extending the effectiveness of certain
  provisions thereof (Part F);  and  to  amend  the  education  law,  in
  relation  to  eligibility requirements for student financial aid (Part
  G)

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through G. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes reference to  a  section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section 1.   Paragraph e of subdivision 1  of  section  211-d  of  the
education  law,  as  added by section 2-a of part A of chapter 57 of the
laws of 2009, is amended to read as follows:
  e. Notwithstanding paragraphs a and b of this  subdivision,  a  school
district  that  submitted a contract for excellence for the two thousand
eight--two thousand nine school year shall submit a contract for  excel-
lence  for  the  two  thousand  nine--two  thousand  ten  school year in
conformity with the requirements of subparagraph (vi) of paragraph a  of
subdivision  two  of this section unless all schools in the district are
identified as in good standing  AND  PROVIDED  FURTHER  THAT,  A  SCHOOL
DISTRICT  THAT  SUBMITTED A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND
NINE--TWO THOUSAND TEN SCHOOL YEAR, UNLESS ALL SCHOOLS IN  THE  DISTRICT
ARE  IDENTIFIED  AS IN GOOD STANDING, SHALL SUBMIT A CONTRACT FOR EXCEL-
LENCE FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN  SCHOOL  YEAR  WHICH
SHALL,  NOTWITHSTANDING  THE  REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARA-
GRAPH A OF SUBDIVISION TWO OF THIS SECTION, PROVIDE FOR THE  EXPENDITURE
OF  AN  AMOUNT  WHICH  SHALL  BE NOT LESS THAN THE PRODUCT OF THE AMOUNT
APPROVED BY THE COMMISSIONER IN THE CONTRACT FOR EXCELLENCE FOR THE BASE

S. 2                                3                               A. 2

YEAR, MULTIPLIED BY THE DISTRICT'S GAP ELIMINATION  ADJUSTMENT  PERCENT-
AGE.  FOR  PURPOSES  OF  THIS PARAGRAPH, THE "GAP ELIMINATION ADJUSTMENT
PERCENTAGE" SHALL BE CALCULATED AS THE SUM OF ONE MINUS THE QUOTIENT  OF
THE  SCHOOL DISTRICT'S NET GAP ELIMINATION ADJUSTMENT AS COMPUTED PURSU-
ANT TO PARAGRAPH E OF SUBDIVISION  ONE  OF  SECTION  THIRTY-SIX  HUNDRED
NINE-A  OF THIS CHAPTER DIVIDED BY THE TOTAL AID FOR ADJUSTMENT COMPUTED
PURSUANT TO CHAPTER  FIFTY-THREE  OF  THE  LAWS  OF  TWO  THOUSAND  TEN.
PROVIDED,  FURTHER,  THAT  SUCH  AMOUNT SHALL BE EXPENDED TO SUPPORT AND
MAINTAIN ALLOWABLE PROGRAMS AND ACTIVITIES APPROVED IN THE BASE YEAR  OR
TO  SUPPORT  NEW  OR  EXPANDED  ALLOWABLE PROGRAMS AND ACTIVITIES IN THE
CURRENT YEAR.
  S 2. Subdivision 12 of section 273 of the education law, as amended by
section 4-a of part A of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  12.  The  commissioner  is hereby authorized to expend in state fiscal
year two thousand six--two thousand seven three million dollars  and  in
state  fiscal  year two thousand seven--two thousand eight eight million
dollars and in state fiscal year two thousand eight--two  thousand  nine
seven  million  nine  hundred forty thousand dollars and in state fiscal
year two thousand nine--two thousand ten eight million  dollars  AND  IN
STATE  FISCAL  YEAR  TWO THOUSAND TEN--TWO THOUSAND ELEVEN EIGHT MILLION
DOLLARS subject to an appropriation for formula grants to public library
systems, reference and research library resources  systems,  and  school
library systems operating under an approved plan of service. Such formu-
la  grants  shall  be  provided for the period commencing July first and
ending on June thirtieth next following. Such  formula  grants  will  be
distributed in the following manner:
  a.  Each  public  library  system established pursuant to sections two
hundred fifty-five and two hundred seventy-two of this part and  operat-
ing  under  a  plan  approved by the commissioner is entitled to receive
thirty-nine thousand dollars and an amount equal to ten and  ninety-four
hundredths  percent  of the amount of state aid received for the current
year by such system under paragraphs a, c, d, e and n of subdivision one
of this section for the two  thousand  [nine]  TEN--two  thousand  [ten]
ELEVEN state fiscal year;
  b.  Each  reference  and research library resources system established
pursuant to section two hundred seventy-two of this part  and  operating
under  a  plan approved by the commissioner is entitled to receive thir-
ty-nine thousand dollars and an amount  equal  to  ten  and  ninety-four
hundredths  percent  of the amount of state aid received for the current
year under paragraph a of subdivision four of this section for  the  two
thousand [nine] TEN--two thousand [ten] ELEVEN state fiscal year; and
  c.  Each  school  library  system  established pursuant to section two
hundred eighty-two of this part and operating under a plan  approved  by
the commissioner is entitled to receive thirty-nine thousand dollars and
an  amount equal to ten and ninety-four hundredths percent of the amount
of state aid received for the current year by such  system  under  para-
graphs  a,  b,  c,  d, e and f of subdivision one of section two hundred
eighty-four of this part for the two thousand [nine]  TEN--two  thousand
[ten] ELEVEN state fiscal year.
  S 3. Subdivision 1 of section 1104 of the education law, as amended by
chapter 53 of the laws of 1990, is amended to read as follows:
  1.  The  commissioner  [of  education]  in the annual apportionment of
public moneys shall  apportion  therefrom  to  each  county  maintaining
approved  vocational  education and extension work, a quota amounting to
one-half   of the salary paid each  teacher,  director,  assistant,  and

S. 2                                4                               A. 2

supervisor,  but  not  to exceed THE AMOUNT COMPUTED BY THE COMMISSIONER
BASED UPON AN ASSUMED ANNUALIZED  SALARY  EQUAL  TO  ten  thousand  five
hundred  dollars  PER  SCHOOL  YEAR on account of the employment of such
teacher, director,  assistant or supervisor.
  S  4.  Section  1104  of  the education law is amended by adding a new
subdivision 3 to read as follows:
  3. FOR THE APPORTIONMENT PAYABLE PURSUANT TO THIS SECTION  FOR  SCHOOL
YEARS COMMENCING PRIOR TO JULY FIRST, TWO THOUSAND NINE, THE COMMISSION-
ER  SHALL  CERTIFY  NO  PAYMENT  TO A VOCATIONAL EDUCATION AND EXTENSION
BOARD BASED ON A CLAIM SUBMITTED LATER THAN THREE YEARS AFTER THE  CLOSE
OF  THE  SCHOOL  YEAR  IN  WHICH  SUCH PAYMENT WAS FIRST TO BE MADE. FOR
CLAIMS FOR WHICH PAYMENT IS  FIRST  TO  BE  MADE  IN  THE  TWO  THOUSAND
NINE-TWO THOUSAND TEN SCHOOL YEAR AND THEREAFTER, THE COMMISSIONER SHALL
CERTIFY  NO  PAYMENT TO A VOCATIONAL EDUCATION AND EXTENSION BOARD BASED
ON A CLAIM SUBMITTED LATER THAN ONE YEAR AFTER THE CLOSE OF SUCH  SCHOOL
YEAR.  PROVIDED,  HOWEVER,  NO PAYMENTS SHALL BE BARRED OR REDUCED WHERE
SUCH PAYMENT IS REQUIRED AS A RESULT OF A FINAL AUDIT OF THE STATE.
  S 5. Subdivision 1 of section 2856 of the education law, as amended by
chapter 378 of the laws of 2007, paragraph (a) as amended by section  12
of  part  A  of  chapter  57  of the laws of 2009, is amended to read as
follows:
  1. (a) The enrollment of students attending charter schools  shall  be
included  in  the enrollment, attendance, membership and, if applicable,
count of students with disabilities of the school district in which  the
pupil  resides.  The  charter  school  shall report all such data to the
school districts of residence in a timely manner. Each  school  district
shall  report  such  enrollment,  attendance  and count of students with
disabilities to the department. The school district of  residence  shall
pay  directly  to  the  charter  school for each student enrolled in the
charter school who resides in the school  district  the  charter  school
basic  tuition, which shall be an amount equal to one hundred percent of
the amount calculated pursuant to paragraph  f  of  subdivision  one  of
section  thirty-six  hundred two of this chapter for the school district
for the year prior to the base year increased by the  percentage  change
in  the  state  total  approved operating expense calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter from two years  prior  to  the  base  year  to  the  base  year;
provided,  however, that for the two thousand nine--two thousand ten AND
THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN school [year] YEARS, the char-
ter school basic tuition shall be the amount payable by such district as
charter school basic tuition for the two  thousand  eight--two  thousand
nine school year.
  (b)  The school district shall also pay directly to the charter school
any federal or state aid attributable to a  student  with  a  disability
attending charter school in proportion to the level of services for such
student  with  a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section  to  the  contrary,
amounts  payable  pursuant to this subdivision from state or local funds
may be reduced pursuant to an agreement between the school and the char-
ter entity set forth in the charter.  Payments  made  pursuant  to  this
subdivision  shall  be  made by the school district in six substantially
equal installments each year beginning on the first business day of July
and every two months thereafter. Amounts payable under this  subdivision
shall  be  determined  by the commissioner. Amounts payable to a charter
school in its first year of operation shall be based on the  projections
of initial-year enrollment set forth in the charter until actual enroll-

S. 2                                5                               A. 2

ment data is reported to the school district by the charter school. Such
projections  shall  be  reconciled  with the actual enrollment as actual
enrollment data is so reported and at the end of the school's first year
of  operation and each subsequent year based on a final report of actual
enrollment by the charter school, and any necessary adjustments  result-
ing from such final report shall be made to payments during the school's
following year of operation.
  (c)  Notwithstanding  any  other  provision of this subdivision to the
contrary, payment of the federal aid attributable to a  student  with  a
disability  attending  a charter school shall be made in accordance with
the requirements of section 8065-a of title twenty of the United  States
code  and sections 76.785-76.799 and 300.209 of title thirty-four of the
code of federal regulations.
  S 6. Subdivision 1 of section 2856 of the education law, as separately
amended by chapter 4 of the laws of 1998 and section 12  of  part  A  of
chapter 57 of the laws of 2009, is amended to read as follows:
  1.  The  enrollment  of  students  attending  charter schools shall be
included in the enrollment, attendance  and,  if  applicable,  count  of
students  with  disabilities  of  the school district in which the pupil
resides. The charter school shall report all such  data  to  the  school
districts  of  residence  in a timely manner. Each school district shall
report such enrollment, attendance and count of students with  disabili-
ties  to  the  department.  The  school  district of residence shall pay
directly to the charter school for each student enrolled in the  charter
school who resides in the school district an amount equal to one hundred
percent  of the amount calculated pursuant to paragraph f of subdivision
one of section [thirty six] THIRTY-SIX hundred two of this  chapter  for
the school district for the year prior to the base year increased by the
percentage  change  in the state total approved operating expense calcu-
lated pursuant to [subdivision eleven] PARAGRAPH T OF SUBDIVISION ONE of
section [thirty six] THIRTY-SIX hundred two of  this  chapter  from  two
years  prior  to the base year to the base year; provided, however, that
for the two  thousand  nine--two  thousand  ten  AND  THE  TWO  THOUSAND
TEN--TWO  THOUSAND  ELEVEN school [year] YEARS, the charter school basic
tuition shall be the amount payable by such district as  charter  school
basic tuition for the two thousand eight--two thousand nine school year.
The  school  district  shall also pay directly to the charter school any
federal or state aid attributable to a student with a disability attend-
ing charter school in proportion to  the  level  of  services  for  such
student  with  a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section  to  the  contrary,
amounts  payable pursuant to this subdivision may be reduced pursuant to
an agreement between the school and the charter entity set forth in  the
charter. Payments made pursuant to this subdivision shall be made by the
school district in six substantially equal installments each year begin-
ning  on the first business day of July and every two months thereafter.
Amounts payable under  this  subdivision  shall  be  determined  by  the
commissioner.  Amounts  payable to a charter school in its first year of
operation shall be based on the projections of  initial-year  enrollment
set  forth in the charter. Such projections shall be reconciled with the
actual enrollment at the end of the school's first  year  of  operation,
and  any  necessary  adjustments  shall  be  made to payments during the
school's second year of operation.
  S 7. Subdivision 4 of section 3602 of the education law, as amended by
section 14 of part B of chapter 57 of the  laws  of  2008,  the  opening
paragraph,  subparagraph 1 of paragraph a, paragraph b and paragraph b-1

S. 2                                6                               A. 2

as amended by section 13 of part A of chapter 57 of the laws of 2009, is
amended to read as follows:
  4.  Total  foundation  aid.    In  addition to any other apportionment
pursuant to this chapter, a school district, other than  a  special  act
school district as defined in subdivision eight of section four thousand
one of this chapter, shall be eligible for total foundation aid equal to
the  product  of  total aidable foundation pupil units multiplied by the
district's selected foundation aid, which shall be the greater  of  five
hundred dollars ($500) or foundation formula aid, provided, however that
for  the  two  thousand  seven--two  thousand eight through two thousand
eight--two thousand nine and [two thousand eleven--two  thousand  twelve
through] two thousand twelve--two thousand thirteen THROUGH TWO THOUSAND
THIRTEEN--TWO  THOUSAND  FOURTEEN school years, no school district shall
receive total foundation aid in excess of the sum of the  total  founda-
tion  aid  base  for aid payable in the two thousand seven--two thousand
eight school year computed pursuant to subparagraph (i) of  paragraph  j
of  subdivision  one  of  this  section,  plus  the  phase-in foundation
increase computed pursuant to  paragraph  b  of  this  subdivision,  and
provided  further  that  total foundation aid shall not be less than the
product of the total foundation aid base computed pursuant to  paragraph
j  of subdivision one of this section and one hundred three percent, nor
more than the product of such total foundation aid base and one  hundred
fifteen  percent,  and provided further that for the two thousand nine--
two thousand ten [and two thousand ten--two thousand eleven] THROUGH TWO
THOUSAND ELEVEN--TWO THOUSAND TWELVE school years, each school  district
shall  receive  total  foundation  aid  in an amount equal to the amount
apportioned to such school district  for  the  two  thousand  eight--two
thousand  nine  school  year pursuant to this subdivision. Total aidable
foundation pupil units shall be calculated pursuant to  paragraph  g  of
subdivision  two  of this section.   For the purposes of calculating aid
pursuant to this subdivision, aid for the city school  district  of  the
city of New York shall be calculated on a citywide basis.
  a.  Foundation  formula  aid.  Foundation  formula aid shall equal the
remainder when the expected minimum  local  contribution  is  subtracted
from  the product of the foundation amount, the regional cost index, and
the pupil need index, or: (foundation amount x  regional  cost  index  x
pupil need index)- expected minimum local contribution.
  (1)  The foundation amount shall reflect the average per pupil cost of
general education instruction in successful school districts, as  deter-
mined  by  a  statistical analysis of the costs of special education and
general education in successful  school  districts,  provided  that  the
foundation  amount  shall be adjusted annually to reflect the percentage
increase in the consumer price index as computed pursuant to section two
thousand twenty-two of this chapter, provided that for the two  thousand
eight--two  thousand  nine  school year, for the purpose of such adjust-
ment, the percentage increase in  the  consumer  price  index  shall  be
deemed  to  be two and nine-tenths percent (0.029), and provided further
that the foundation amount for  the  two  thousand  seven--two  thousand
eight  school  year  shall  be  five  thousand  two  hundred fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand eight through two thousand  twelve--two  thousand  thirteen  school
years,  such foundation amount shall be further adjusted by the phase-in
foundation percent established pursuant to paragraph b of this  subdivi-
sion.
  (2)  The regional cost index shall reflect an analysis of labor market
costs based on median salaries in professional occupations that  require

S. 2                                7                               A. 2

similar  credentials  to  those of positions in the education field, but
not including those occupations in the education  field,  provided  that
the regional cost indices for the two thousand seven--two thousand eight
school year and thereafter shall be as follows:
          Labor Force Region  Index
          Capital District    1.124
          Southern Tier       1.045
          Western New York    1.091
          Hudson Valley       1.314
          Long Island/NYC     1.425
          Finger Lakes        1.141
          Central New York    1.103
          Mohawk Valley       1.000
          North Country       1.000
  (3)  The pupil need index shall equal the sum of one plus the extraor-
dinary needs percent, provided, however, that the pupil need index shall
not be less than one nor more than two. The extraordinary needs  percent
shall  be  calculated pursuant to paragraph w of subdivision one of this
section.
  (4) The expected minimum local contribution shall equal the lesser  of
(i)  the product of (A) the quotient arrived at when the selected actual
valuation is divided by total wealth foundation pupil units,  multiplied
by  (B)  the  product  of the local tax factor, multiplied by the income
wealth index, or (ii) the product of (A) the product of  the  foundation
amount, the regional cost index, and the pupil need index, multiplied by
(B)  the  positive  difference,  if  any, of one minus the state sharing
ratio for total foundation aid. The local tax  factor  shall  be  estab-
lished by May first of each year by determining the product, computed to
four  decimal  places  without rounding, of ninety percent multiplied by
the quotient of the sum of the statewide average tax rate as computed by
the commissioner for the current year in accordance with the  provisions
of  paragraph  e of subdivision one of section thirty-six hundred nine-e
of this part plus the statewide average tax rate computed by the commis-
sioner for the base year in accordance with  such  provisions  plus  the
statewide  average  tax  rate  computed by the commissioner for the year
prior to the base year in accordance with such  provisions,  divided  by
three,  provided  however  that for the two thousand seven--two thousand
eight school year, such local tax factor shall  be  sixteen  thousandths
(0.016), and provided further that for the two thousand eight--two thou-
sand  nine  school  year,  such  local  tax  factor shall be one hundred
fifty-four ten thousandths (0.0154). The income wealth  index  shall  be
calculated pursuant to paragraph d of subdivision three of this section,
provided, however, that for the purposes of computing the expected mini-
mum  local  contribution  the income wealth index shall not be less than
sixty-five percent (0.65) and shall not be more than two hundred percent
(2.0) and provided however that such income wealth index  shall  not  be
more  than  ninety-five  percent  (0.95) for the two thousand eight--two
thousand nine school year. The selected actual valuation shall be calcu-
lated pursuant to paragraph c of subdivision one of this section.  Total
wealth  foundation pupil units shall be calculated pursuant to paragraph
h of subdivision two of this section.
  b. Phase-in foundation increase. (1) The phase-in foundation  increase
shall  equal  the  product  of  the  phase-in foundation increase factor
multiplied by the greater of (i) the positive difference, if any, of (A)
the product of the total aidable foundation pupil  units  multiplied  by
the district's selected foundation aid less (B) the total foundation aid

S. 2                                8                               A. 2

base  for  aid  payable  in  the  two thousand seven--two thousand eight
school year computed pursuant to subparagraph  (i)  of  paragraph  j  of
subdivision  one  of  this  section  or (ii) the product of the phase-in
due-minimum  percent multiplied by the total foundation aid base for aid
payable in the  two  thousand  seven--two  thousand  eight  school  year
computed  pursuant to subparagraph (i) of paragraph j of subdivision one
of this section.
  (2) For the two thousand seven--two thousand eight  school  year,  the
phase-in  foundation  percent  shall  equal one hundred seven and sixty-
eight hundredths percent  (1.0768),  the  phase-in  foundation  increase
factor  shall  equal twenty percent (0.20), and the phase-in due-minimum
percent shall equal twelve and fifty-five hundredths percent (0.1255);
  for the two thousand eight--two thousand nine school year, the  phase-
in  foundation  percent  shall  equal  one  hundred  five and twenty-six
hundredths percent (1.0526), the  phase-in  foundation  increase  factor
shall  equal thirty-seven and one-half percent (0.375), and the phase-in
due-minimum percent shall equal twelve and fifty-five hundredths percent
(0.1255);
  for the two thousand nine--two thousand ten school year, the  phase-in
foundation  percent  shall equal one hundred two and five tenths percent
(1.025), the phase-in foundation increase factor shall equal thirty-sev-
en and one-half percent (0.375), and the  phase-in  due-minimum  percent
shall equal twelve and fifty-five hundredths percent (0.1255);
  for  the two thousand ten--two thousand eleven school year, the phase-
in foundation percent shall equal [one  hundred  seven  and  sixty-eight
hundredths percent (1.0768)] ONE HUNDRED TEN AND THIRTY-EIGHT HUNDREDTHS
PERCENT  (1.1038),  the  phase-in foundation increase factor shall equal
thirty-seven and one-half percent (0.375), and the phase-in  due-minimum
percent shall equal twelve and fifty-five hundredths percent (0.1255);
  for  the  two  thousand  eleven--two  thousand twelve school year, the
phase-in foundation percent  shall  equal  [one  hundred  five  and  six
hundredths   percent   (1.0506)]   ONE  HUNDRED  SEVEN  AND  SIXTY-EIGHT
HUNDREDTHS PERCENT (1.0768), the  phase-in  foundation  increase  factor
shall equal [fifty-three and one-tenth percent (0.531)] THIRTY-SEVEN AND
ONE-HALF  PERCENT  (0.375),  and  the phase-in due-minimum percent shall
equal twelve and fifty-five hundredths percent (0.1255); [and]
  for the two thousand twelve--two thousand thirteen  school  year,  the
phase-in  foundation  percent  shall  equal  [one  hundred  two and five
hundredths percent (1.0250)] ONE HUNDRED FIVE AND SIX HUNDREDTHS PERCENT
(1.0506), the phase-in foundation increase factor shall equal  [seventy-
five  percent (0.75)] FIFTY-THREE AND ONE-TENTH PERCENT (0.531), and the
phase-in  due-minimum  percent  shall  equal   twelve   and   fifty-five
hundredths percent (0.1255); AND
  FOR  THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR, THE
PHASE-IN FOUNDATION  PERCENT  SHALL  EQUAL  ONE  HUNDRED  TWO  AND  FIVE
HUNDREDTHS  PERCENT  (1.0250),  THE  PHASE-IN FOUNDATION INCREASE FACTOR
SHALL EQUAL SEVENTY-FIVE PERCENT (0.75), AND  THE  PHASE-IN  DUE-MINIMUM
PERCENT SHALL EQUAL TWELVE AND FIFTY-FIVE HUNDREDTHS PERCENT (0.1255).
  b-1.  Notwithstanding  any other provision of law to the contrary, for
the two thousand seven--two thousand eight through [two  thousand  thir-
teen--two thousand fourteen] TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
school  years,  the  additional  amount  payable to each school district
pursuant to this subdivision in the current  year  as  total  foundation
aid,  after  deducting  the total foundation aid base, shall be deemed a
state grant in aid identified by the commissioner for  general  use  for

S. 2                                9                               A. 2

purposes  of  sections seventeen hundred eighteen and two thousand twen-
ty-three of this chapter.
  c.  Public  excess  cost  aid setaside. Each school district shall set
aside from its total foundation aid computed for the current year pursu-
ant to this subdivision an amount equal  to  the  product  of:  (i)  the
difference  between  the  amount  the  school  district  was eligible to
receive in the two thousand six--two thousand seven school year pursuant
to or in lieu of paragraph six of subdivision nineteen of  this  section
as  such  paragraph existed on June thirtieth, two thousand seven, minus
the amount such district was eligible to receive pursuant to or in  lieu
of  paragraph five of subdivision nineteen of this section as such para-
graph existed on June thirtieth, two  thousand  seven,  in  such  school
year, and (ii) the sum of one and the percentage increase in the consum-
er  price  index for the current year over such consumer price index for
the two thousand six--two thousand seven school year, as computed pursu-
ant to section two thousand twenty-two of this chapter.  Notwithstanding
any  other  provision of law to the contrary, the public excess cost aid
setaside shall be paid pursuant to section thirty-six hundred nine-b  of
this part.
  S  8.  Clause (c) of subparagraph 1 of paragraph e of subdivision 6 of
section 3602 of the education law, as amended by section 3 of  part  A-3
of chapter 58 of the laws of 2006, is amended to read as follows:
  (c)  By the first day of September of the current year the comptroller
of the city of New York shall provide to the commissioner  an  analysis,
as  prescribed  by the commissioner, of the actual average interest rate
applied to all capital debt incurred by the city of New York AND THE NEW
YORK CITY TRANSITIONAL FINANCE AUTHORITY for school purposes [(or by the
New York city transitional finance authority for school purposes, if  no
such  capital debt is incurred by the city of New York)] during the base
year and of the estimated average interest rate applied to  all  capital
debt  to be incurred by the city of New York AND THE NEW YORK CITY TRAN-
SITIONAL FINANCE AUTHORITY for school purposes [(or by the New York city
transitional finance authority for school purposes, if no  such  capital
debt is incurred by the city of New York)] during the current year. Upon
approval  by the commissioner such actual average interest rate shall be
established as the interest rate applicable to the  base  year  for  the
purposes  of  this  subparagraph and subparagraph two of this paragraph,
and such estimated average interest rate  shall  be  tentatively  estab-
lished  as the interest rate applicable to the current year, except that
all apportionments of aid payable during the current year based on  such
estimated  average  interest rate shall be recalculated in the following
year and adjusted as appropriate based on the appropriate actual average
interest rate then established by the commissioner.
  S 9. Clause (d) of subparagraph 5 of paragraph e of subdivision  6  of
section 3602 of the education law, as added by section 55-a of part A of
chapter 57 of the laws of 2009, is amended to read as follows:
  (d) Notwithstanding any other law, rule or regulation to the contrary,
any  interest  rate  calculated  under  this subdivision shall take into
account any federal subsidy payments made or to be made to the  applica-
ble  [issuer]  SCHOOL  DISTRICT  OR  AN  ISSUER  ON BEHALF OF THE SCHOOL
DISTRICT under the terms of a federally authorized debt instrument which
have the effect of reducing the actual interest costs incurred by  [such
issuer]  THE  SCHOOL  DISTRICT  OR  AN  ISSUER  ON  BEHALF OF THE SCHOOL
DISTRICT over the life of such capital debt, irrespective of any federal
government right of set-off.

S. 2                               10                               A. 2

  S 10. Paragraphs d and d-1 of subdivision 14 of section  3602  of  the
education  law,  as added by section 17-a of part B of chapter 57 of the
laws of 2007, is amended to read as follows:
  d.  Incentive operating aid for reorganized districts. Notwithstanding
the provisions of paragraphs a through c of this  subdivision,  whenever
two  or  more school districts are scheduled for reorganization pursuant
to section three hundred fourteen of this chapter,  and  whenever  after
July  first,  two thousand seven, all such school districts so scheduled
do reorganize in accordance with the provisions of  such  section  three
hundred fourteen[, as amended by chapter seven hundred forty-five of the
laws of nineteen hundred sixty-five], and
  (1) whenever such proposed reorganization includes at least two school
districts, each of which maintains its own high school, or
  (2)  where  such  proposed  reorganization  includes  only  one school
district maintaining its own high school, whenever  in  such  case  such
proposed reorganization, in addition to such school district maintaining
its own high school, includes at least nine other school districts, or
  (3)  whenever  such  proposed  reorganization  includes  at  least two
central school districts, or
  (4) where such proposed reorganization includes at  least  one  school
district  maintaining  its  own  high  school  and, in addition thereto,
includes at least one school district employing eight or more  teachers,
or
  (5)   where  such  proposed  reorganization  includes  a  city  school
district, and in addition thereto, includes at least seven other  school
districts, or
  (6)  where  such reorganization includes at least two school districts
employing eight or more teachers forming a central high school  district
pursuant  to  section  nineteen  hundred  thirteen of this chapter, such
reorganized district shall be entitled to an apportionment equal  to  an
additional  percent  of  the  [apportionment]  SELECTED OPERATING AMOUNT
computed in accordance with the provisions  of  paragraph  d-1  of  this
subdivision;  but  in  no case shall the sum of such apportionment under
this paragraph plus the selected operating [aid  per  pupil]  AMOUNT  be
more  than  a  total  of ninety-five per centum of the year prior to the
base year approved operating expense; for a period of five years  begin-
ning  with  the first school year of operation as a reorganized district
such additional percent shall be  forty  percent;  and  thereafter  such
additional forty percent apportionment to such district shall be reduced
by  four  percentage  points  each year, beginning with the sixth school
year of operation as a reorganized district, and continuing  until  such
additional forty percent apportionment is eliminated; provided, however,
that  the  total  apportionment  to such reorganized district, beginning
with the first school year of operation as a reorganized  district,  and
for a period of fifteen years thereafter, shall be not less than the sum
of all apportionments computed in accordance with the provisions of this
paragraph  plus  the  apportionment  computed  in  accordance  with  the
provisions of paragraph d-1 of  this  subdivision  that  each  component
school  district was entitled to receive and did receive during the last
school year preceding such first year  of  operation.  In  the  event  a
school  district is eligible for incentive operating aid and again reor-
ganizes pursuant to a new plan  or  reorganization  established  by  the
commissioner,  and  where  such new reorganization is again eligible for
incentive operating aid, the newly  created  school  district  shall  be
entitled  to  receive incentive operating aid pursuant to the provisions
of this paragraph, based on all school districts included  in  any  such

S. 2                               11                               A. 2

reorganization, provided, however, that incentive operating aid payments
due because of any such former reorganization shall cease.
  d-1.  For purposes of paragraph d of this subdivision, "selected oper-
ating [aid per pupil] AMOUNT" shall  mean  the  [apportionment]  PRODUCT
computed  for  the  2006-07  school year, based on data on file with the
commissioner as of the date upon  which  an  electronic  data  file  was
created  for  the purposes of compliance with paragraph b of subdivision
twenty-one of section three hundred five of  this  chapter  on  February
fifteenth,  [as]  OF:  the product of (i) the state sharing ratio calcu-
lated pursuant to paragraph g of subdivision three of this  section  and
(ii)  the  sum  of $3,900 and the product of (a) the lesser of $8,000 or
the expense per pupil as defined in  subdivision  one  of  this  section
minus $3,900 and (b) the greater of the quotient, computed to four deci-
mals  without  rounding, of .075 divided by the school district combined
wealth ratio calculated pursuant to paragraph c of subdivision three  of
this  section  or 7.5 percent, but not less than $400[, and the selected
apportionment shall mean the product of] MULTIPLIED  BY  the  district's
total aidable pupil units calculated pursuant to subdivision two of this
section [and the selected operating aid per pupil as calculated pursuant
to the provisions contained herein].
  S  11. Paragraph a of subdivision 9 of section 3602-e of the education
law, as amended by section 21 of part B of chapter 57  of  the  laws  of
2008, is amended to read as follows:
  a.  Each year, the commissioner shall determine the maximum allocation
that each district would be eligible to receive pursuant to this section
in the following school year based  on  pupil  data  on  file  with  the
commissioner  on a date prescribed by the commissioner, and applying the
formula specified in subdivision ten of  this  section.  No  later  than
April  thirtieth  of  the  base  year,  the  commissioner  shall  notify
districts of the maximum allocations they may be eligible  for  pursuant
to  this  section  in  the following school year, and such maximum allo-
cations shall be deemed final and  not  subject  to  change  thereafter,
PROVIDED,  HOWEVER,  THAT  FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN
SCHOOL YEAR SUCH  MAXIMUM  ALLOCATION  SHALL  BE  SUBSEQUENTLY  ADJUSTED
UPWARD  TO  EQUAL THE GRANT AMOUNT COMPUTED FOR THE DISTRICT FOR THE TWO
THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR, WHERE SUCH GRANT  AWARD  IS
GREATER  THAN  THE  MAXIMUM ALLOCATION COMPUTED AT THE TIME THE DISTRICT
WAS NOTIFIED PURSUANT TO THIS PARAGRAPH.
  S 12.  The opening paragraph of subdivision 10 of  section  3602-e  of
the  education  law, as amended by section 21 of part A of chapter 57 of
the laws of 2009, is amended to read as follows:
  Notwithstanding any provision of law to the contrary, for aid  payable
in  the  two thousand eight--two thousand nine school year, the grant to
each eligible school district for universal prekindergarten aid shall be
computed pursuant to this subdivision, and for the two  thousand  nine--
two  thousand  ten  [and  two  thousand  ten--two thousand eleven school
years] SCHOOL YEAR, each school district shall be eligible for a maximum
grant equal to the amount computed for such school district for the base
year in the electronic data file produced by the commissioner in support
of the two thousand nine--two thousand ten education, labor  and  family
assistance  budget,  provided,  however,  that in the case of a district
implementing programs for  the  first  time  or  implementing  expansion
programs  in the two thousand eight--two thousand nine school year where
such programs operate for a minimum of ninety days  in  any  one  school
year  as  provided  in section 151-1.4 of the regulations of the commis-
sioner, such school district shall be eligible for a maximum grant equal

S. 2                               12                               A. 2

to the amount computed pursuant to paragraph a of  subdivision  nine  of
this  section  in the two thousand eight--two thousand nine school year,
AND FOR THE TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN  AND  TWO  THOUSAND
ELEVEN--TWO  THOUSAND TWELVE SCHOOL YEARS, EACH SCHOOL DISTRICT SHALL BE
ELIGIBLE FOR A MAXIMUM GRANT EQUAL TO THE GREATER OF THE AMOUNT COMPUTED
FOR SUCH SCHOOL DISTRICT FOR THE BASE YEAR IN THE ELECTRONIC  DATE  FILE
PRODUCED  BY  THE  COMMISSIONER  IN SUPPORT OF THE TWO THOUSAND TEN--TWO
THOUSAND ELEVEN EDUCATION, LABOR AND FAMILY ASSISTANCE  BUDGET,  OR  THE
GRANT  AMOUNT  COMPUTED  FOR THE DISTRICT FOR THE TWO THOUSAND NINE--TWO
THOUSAND TEN SCHOOL YEAR, and provided further that  the  maximum  grant
shall  not  exceed  the  total actual grant expenditures incurred by the
school district in the current school year as approved  by  the  commis-
sioner.
  S  13.  Subdivision  11  of  section  3602-e  of the education law, as
amended by section 19 of part B of chapter 57 of the laws  of  2007,  is
amended to read as follows:
  11. Notwithstanding the provisions of subdivision ten of this section,
where  the  district  serves fewer children during the current year than
[in the base year] THE LESSER OF THE CHILDREN SERVED IN THE TWO THOUSAND
EIGHT--TWO THOUSAND NINE SCHOOL YEAR OR ITS BASE AIDABLE PREKINDERGARTEN
PUPILS COMPUTED FOR THE TWO THOUSAND SEVEN--TWO  THOUSAND  EIGHT  SCHOOL
YEAR,  the  school  district  shall have its apportionment reduced in an
amount proportional to such deficiency in the current  year  or  in  the
succeeding  school  year, as determined by the commissioner, except such
reduction shall not apply to school districts which  have  fully  imple-
mented  a  universal  pre-kindergarten  program  by  making such program
available to all eligible children.  Expenses  incurred  by  the  school
district  in  implementing  a  pre-kindergarten program plan pursuant to
this subdivision shall be deemed ordinary contingent expenses.
  S 14. Subdivision 1 of section 3609-a of the education law is  amended
by adding a new paragraph e to read as follows:
  E. GAP ELIMINATION ADJUSTMENT FOR TWO THOUSAND TEN--TWO THOUSAND ELEV-
EN.  (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
COMMISSIONER  SHALL  REDUCE  PAYMENTS  DUE  TO EACH DISTRICT FOR THE TWO
THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR PURSUANT TO  THIS  SECTION
BY  AN  AMOUNT EQUAL TO THE GAP ELIMINATION ADJUSTMENT COMPUTED FOR SUCH
DISTRICT, AND SUCH AMOUNT SHALL BE DEDUCTED FROM MONEYS APPORTIONED  FOR
THE  PURPOSES  OF  PAYMENTS  MADE  PURSUANT  TO  THIS SECTION AND IF THE
REDUCTION IS GREATER THAN THE SUM OF  THE  AMOUNTS  AVAILABLE  FOR  SUCH
DEDUCTIONS,  THE  REMAINDER  OF  THE  REDUCTION  SHALL  BE WITHHELD FROM
PAYMENTS SCHEDULED TO BE MADE TO THE DISTRICT PURSUANT TO  THIS  SECTION
FOR  THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE  SCHOOL YEAR, AND
PROVIDED FURTHER THAT AN AMOUNT EQUAL TO THE AMOUNT  OF  SUCH  DEDUCTION
SHALL  BE  DEEMED  TO  HAVE  BEEN  PAID TO THE DISTRICT PURSUANT TO THIS
SECTION FOR THE SCHOOL YEAR IN WHICH SUCH DEDUCTION IS MADE. THE COMMIS-
SIONER SHALL COMPUTE SUCH GAP ELIMINATION ADJUSTMENT AND SHALL PROVIDE A
SCHEDULE OF SUCH REDUCTION IN PAYMENTS TO  THE  STATE  COMPTROLLER,  THE
DIRECTOR  OF  THE  BUDGET, THE CHAIR OF THE SENATE FINANCE COMMITTEE AND
THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  (2) THE GAP ELIMINATION ADJUSTMENT FOR TWO THOUSAND TEN--TWO  THOUSAND
ELEVEN  SCHOOL  YEAR SHALL BE COMPUTED AS FOLLOWS, BASED ON DATA USED BY
THE COMMISSIONER FOR THE PURPOSES OF PRODUCING  A  SCHOOL  AID  COMPUTER
LISTING IN SUPPORT OF THE EXECUTIVE BUDGET PROPOSAL FOR THE TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SCHOOL YEAR AND ENTITLED "BT101-1".
  (I)  THE  PERCENTAGE  REDUCTION SHALL BE THE SUM OF (A) THE PRODUCT OF
THE TOTAL AID FOR ADJUSTMENT, MULTIPLIED BY FIVE AND FIVE-TENTHS PERCENT

S. 2                               13                               A. 2

(0.055), AND (B) THE PRODUCT OF THREE THOUSAND  ONE  HUNDRED  TWENTY-ONE
DOLLARS  ($3,121.00)  MULTIPLIED  BY THE REDUCTION FACTOR, MULTIPLIED BY
THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR COMPUTED  PURSU-
ANT  TO  SUBPARAGRAPH  TWO  OF  PARAGRAPH  N  OF SUBDIVISION ONE OF SUCH
SECTION THIRTY-SIX HUNDRED TWO OF THIS  PART,  PROVIDED,  HOWEVER,  THAT
SUCH  PERCENTAGE  REDUCTION  SHALL NOT BE LESS THAN THE PRODUCT OF EIGHT
PERCENT (0.08) MULTIPLIED BY SUCH TOTAL AID FOR ADJUSTMENT, AND NOT MORE
THAN THE PRODUCT OF TWENTY-ONE PERCENT (0.21) MULTIPLIED BY  SUCH  TOTAL
AID FOR ADJUSTMENT.
  (II)  THE  TAX  EFFORT REDUCTION SHALL BE THE PRODUCT OF THE TOTAL AID
FOR ADJUSTMENT, MULTIPLIED BY THE QUOTIENT OF TWENTY-ONE PERCENT  (0.21)
DIVIDED  BY  THE  QUOTIENT  OF THE TAX EFFORT RATIO DIVIDED BY THREE AND
FIVE TENTHS PERCENT (0.035), PROVIDED, HOWEVER,  THAT  SUCH  TAX  EFFORT
REDUCTION SHALL NOT BE LESS THAN THE PRODUCT OF TEN PERCENT (0.1) MULTI-
PLIED BY SUCH TOTAL AID FOR ADJUSTMENT, AND NOT MORE THAN THE PRODUCT OF
TWENTY-ONE PERCENT (0.21) MULTIPLIED BY SUCH TOTAL AID FOR ADJUSTMENT.
  (III)  THE  TGFE CHECK SHALL BE THE PRODUCT OF THE TGFE PERCENTAGE AND
THE TOTAL GENERAL FUND EXPENDITURES OF SUCH DISTRICT IN THE BASE YEAR.
  (IV) THE ADMINISTRATIVE EFFICIENCY OFFSET  SHALL  BE  THE  PRODUCT  OF
EIGHTY  DOLLARS  ($80.00), MULTIPLIED BY THE STATE SHARING RATIO, MULTI-
PLIED BY THE TOTAL AIDABLE FOUNDATION PUPIL UNITS.
  THE GAP ELIMINATION ADJUSTMENT FOR A  DISTRICT  SHALL  EQUAL  (A)  THE
DISTRICT'S  PERCENTAGE REDUCTION, PROVIDED, HOWEVER, THAT IN THE CASE OF
A DISTRICT WITH A TAX EFFORT  RATIO  GREATER  THAN  THREE  AND  ONE-HALF
PERCENT  (0.035)  AND  A  COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID
THAT IS LESS THAN FOUR (4.0),  THE  GAP  ELIMINATION  ADJUSTMENT  FOR  A
DISTRICT  SHALL EQUAL THE LESSER OF THE PERCENTAGE REDUCTION AND THE TAX
EFFORT REDUCTION, AND FURTHER PROVIDED, (B) IN THE CASE  OF  A  DISTRICT
DETERMINED  TO  BE A HIGH NEED SCHOOL DISTRICT PURSUANT TO CLAUSE (C) OF
SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDIVISION SIX OF SECTION THIRTY-SIX
HUNDRED TWO OF THIS PART FOR THE SCHOOL AID COMPUTER LISTING PRODUCED BY
THE COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE  TWO  THOUSAND
SEVEN--TWO  THOUSAND  EIGHT  SCHOOL  YEAR AND ENTITLED "SA0708", THE GAP
ELIMINATION ADJUSTMENT FOR A DISTRICT SHALL EQUAL THE LESSER OF THE TGFE
CHECK AND THE GAP ELIMINATION ADJUSTMENT SELECTED PURSUANT TO  SUBCLAUSE
(A)  OF  THIS  CLAUSE, AND FURTHER PROVIDED THAT IN THE CASE OF A SCHOOL
DISTRICT, OTHER THAN A CITY SCHOOL DISTRICT OF A  CITY  HAVING  A  POPU-
LATION  IN  EXCESS OF ONE HUNDRED TWENTY-FIVE THOUSAND, WITH AN ADMINIS-
TRATIVE EFFICIENCY RATIO OF LESS THAN TWO PERCENT (0.02), THE GAP ELIMI-
NATION  ADJUSTMENT  SHALL  BE  REDUCED  BY  AN  AMOUNT  EQUAL   TO   THE
ADMINISTRATIVE EFFICIENCY OFFSET.
  (3)  THE NET GAP ELIMINATION ADJUSTMENT FOR A DISTRICT SHALL EQUAL THE
PRODUCT OF THE GAP ELIMINATION ADJUSTMENT COMPUTED PURSUANT TO  SUBPARA-
GRAPH  TWO  OF  THIS PARAGRAPH, MULTIPLIED BY SIXTY-SIX AND FOUR HUNDRED
SEVENTY-NINE TEN-THOUSANDTHS PERCENT (0.660479).
  (4) FOR THE PURPOSES OF SUCH COMPUTATION, (I) "TOTAL AID  FOR  ADJUST-
MENT"  SHALL  MEAN  THE  SUM  OF  THE  AMOUNTS SET FORTH FOR EACH SCHOOL
DISTRICT AS "FOUNDATION AID", "FULL DAY K CONVERSION", "BOCES +  SPECIAL
SERVICES",  "PUBLIC HIGH COST SPECIAL EDN", "PRIVATE SPECIAL EDUCATION",
"HARDWARE & TECHNOLOGY", "SOFTWARE, LIBRARY, TEXTBOOK",  "TRANSPORTATION
INCL  SUMMER",  "OPERATING  REORG  INCENTIVE",  "CHARTER  SCHOOL TRANSI-
TIONAL", "ACADEMIC ENHANCEMENT", "HIGH TAX AID"  AND  "SUPPLEMENTAL  PUB
SPECIAL  EDN"  UNDER  THE HEADING "2010-11 ESTIMATED AIDS" IN THE SCHOOL
AID COMPUTER LISTING PRODUCED BY THE  COMMISSIONER  IN  SUPPORT  OF  THE
EXECUTIVE  BUDGET PROPOSAL FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN
SCHOOL YEAR AND ENTITLED "BT101-1", AND

S. 2                               14                               A. 2

  (II) "THREE-YEAR AVERAGE FREE AND REDUCED PRICE LUNCH  PERCENT"  SHALL
MEAN THE QUOTIENT OF (A) THE SUM OF THE NUMBER OF PUPILS IN KINDERGARTEN
THROUGH  GRADE SIX ATTENDING THE PUBLIC SCHOOLS OF THE DISTRICT WHO HAVE
APPLICATIONS ON FILE OR WHO ARE LISTED ON A DIRECT CERTIFICATION  LETTER
CONFIRMING  THEIR  ELIGIBILITY FOR PARTICIPATION IN THE STATE AND FEDER-
ALLY FUNDED FREE AND REDUCED PRICE LUNCH PROGRAM ON THE DATE  ENROLLMENT
WAS  COUNTED  IN  ACCORDANCE WITH THIS SUBDIVISION FOR THE YEAR PRIOR TO
THE BASE YEAR, PLUS SUCH NUMBER OF ELIGIBLE APPLICANTS FOR THE FREE  AND
REDUCED PRICE LUNCH PROGRAM COMPUTED FOR THE YEAR TWO YEARS PRIOR TO THE
BASE  YEAR,  PLUS  SUCH  NUMBER  OF ELIGIBLE APPLICANTS FOR THE FREE AND
REDUCED PRICE LUNCH PROGRAM COMPUTED FOR THE YEAR THREE YEARS  PRIOR  TO
THE BASE YEAR, DIVIDED BY (B) THE SUM OF THE NUMBER OF PUPILS IN KINDER-
GARTEN  THROUGH  GRADE  SIX ON A REGULAR ENROLLMENT REGISTER OF A PUBLIC
SCHOOL DISTRICT ON THE DATE ENROLLMENT WAS COUNTED  IN  ACCORDANCE  WITH
THIS  SUBDIVISION  FOR THE YEAR PRIOR TO THE BASE YEAR, PLUS SUCH NUMBER
OF PUPILS IN KINDERGARTEN THROUGH GRADE  SIX  ON  A  REGULAR  ENROLLMENT
REGISTER  OF  A  PUBLIC  SCHOOL DISTRICT COMPUTED FOR THE YEAR TWO YEARS
PRIOR TO THE BASE YEAR, PLUS  SUCH  NUMBER  OF  PUPILS  IN  KINDERGARTEN
THROUGH  GRADE  SIX  ON A REGULAR ENROLLMENT REGISTER OF A PUBLIC SCHOOL
DISTRICT COMPUTED FOR THE YEAR THREE YEARS PRIOR TO THE BASE YEAR, AND
  (III) "TOTAL AIDABLE FOUNDATION PUPIL  UNITS"  SHALL  MEAN  THE  TOTAL
AIDABLE  FOUNDATION  PUPIL  UNITS  COMPUTED  PURSUANT  TO PARAGRAPH G OF
SUBDIVISION TWO OF SUCH SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, AND
  (IV) "COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID" SHALL  MEAN  THE
COMBINED  WEALTH  RATIO  FOR  TOTAL  FOUNDATION AID COMPUTED PURSUANT TO
SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDIVISION THREE OF SECTION  THIRTY-
SIX HUNDRED TWO OF THIS PART, AND
  (V)  "THE  STATE  SHARING  RATIO"  SHALL  MEAN THE STATE SHARING RATIO
COMPUTED FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO  PARAGRAPH  G  OF
SUBDIVISION  THREE  OF  SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, BUT
NOT LESS THAN TEN PERCENT (0.10), AND
  (VI) "TAX EFFORT RATIO" SHALL  MEAN  THE  TAX  EFFORT  RATIO  COMPUTED
PURSUANT  TO SUBPARAGRAPH THREE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF
SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, AND
  (VII) "REDUCTION FACTOR"  SHALL  MEAN  THE  PRODUCT  OF  THE  POSITIVE
REMAINDER  OF  ONE  LESS  THE  THREE-YEAR AVERAGE FREE AND REDUCED PRICE
LUNCH PERCENT, MULTIPLIED BY THE COMBINED WEALTH RATIO FOR TOTAL FOUNDA-
TION AID, AND
  (IX) "ADMINISTRATIVE EFFICIENCY RATIO" SHALL MEAN THE QUOTIENT OF  THE
SUM  OF  THE  EXPENDITURES  RELATED TO THE BOARD OF EDUCATION, INCLUDING
EXPENDITURES FOR THE BOARD OF EDUCATION, THE  DISTRICT  CLERK'S  OFFICE,
THE  DISTRICT MEETING, AUDITING SERVICE, THE TREASURER'S OFFICE, THE TAX
COLLECTOR'S OFFICE, LEGAL SERVICES AND THE SCHOOL CENSUS, PLUS  EXPENDI-
TURES  FOR  CENTRAL ADMINISTRATION, INCLUDING EXPENDITURES FOR THE CHIEF
SCHOOL OFFICER, THE BUSINESS OFFICE, THE PURCHASING OFFICE, THE  PERSON-
NEL  OFFICE,  THE  RECORDS  MANAGEMENT  OFFICER,  PUBLIC INFORMATION AND
SERVICES AND FEES FOR FISCAL AGENTS, DIVIDED BY THE  TOTAL  EXPENDITURES
CHARGED  BY  A  DISTRICT  TO  THE GENERAL, DEBT SERVICE, AND SPECIAL AID
FUNDS, EXCLUDING TRANSFERS FROM THE GENERAL FUND TO THE DEBT SERVICE AND
SPECIAL AID FUNDS, BASED ON EXPENDITURES REPORTED BY  THE  DISTRICT  FOR
THE  SCHOOL  YEAR TWO YEARS PRIOR TO THE BASE YEAR BASED ON DATA ON FILE
FOR AN ELECTRONIC DATA FILE USED TO  PRODUCE  THE  SCHOOL  AID  COMPUTER
LISTING  PRODUCED  BY  THE COMMISSION IN SUPPORT OF THE EXECUTIVE BUDGET
REQUEST, AND
  (X) "TGFE PERCENTAGE" SHALL MEAN, FOR A SCHOOL DISTRICT  WHICH  HAS  A
THREE-YEAR  AVERAGE  FREE  AND  REDUCED PRICE LUNCH PERCENT GREATER THAN

S. 2                               15                               A. 2

SEVENTY-FIVE PERCENT (0.75) AND WHICH HAS AN  ADMINISTRATIVE  EFFICIENCY
RATIO  LESS  THAN ONE AND ONE-HALF PERCENT (0.015), THREE AND SIX-TENTHS
PERCENT (0.036) AND FOR ALL OTHER SCHOOL DISTRICTS, FIVE PERCENT (0.05).
  S  15.  Paragraph  b of subdivision 2 of section 3612 of the education
law, as amended by section 28 of part A of chapter 57  of  the  laws  of
2009, is amended to read as follows:
  b. Such grants shall be awarded to school districts, within the limits
of funds appropriated therefor, through a competitive process that takes
into  consideration  the  magnitude  of  any shortage of teachers in the
school district, the number of teachers employed in the school  district
who hold temporary licenses to teach in the public schools of the state,
the  number of provisionally certified teachers, the fiscal capacity and
geographic sparsity of the district, the  number  of  new  teachers  the
school district intends to hire in the coming school year and the number
of summer in the city student internships proposed by an eligible school
district,  if applicable. Grants provided pursuant to this section shall
be used only for the purposes enumerated in this section.  Notwithstand-
ing any other provision of law to the contrary, a city  school  district
in a city having a population of one million or more inhabitants receiv-
ing a grant pursuant to this section may use no more than eighty percent
of  such  grant  funds  for any recruitment, retention and certification
costs associated with transitional certification of  teacher  candidates
for  the  school  years  two thousand one--two thousand two through [two
thousand nine--two thousand ten] TWO THOUSAND TEN--TWO THOUSAND ELEVEN.
  S 16. Paragraph b of subdivision 11 of section 3641 of  the  education
law,  as amended by chapter 9 of the laws of 2008, is amended to read as
follows:
  b. To the Roosevelt union free school district FOR  THE  TWO  THOUSAND
TEN--TWO  THOUSAND  ELEVEN  AND TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL  YEARS  there  shall  be  paid  [twelve]  SIX   million   dollars
[($12,000,000)]  ($6,000,000)  on an annual basis, AND FOR THE TWO THOU-
SAND TWELVE--TWO THOUSAND THIRTEEN  SCHOOL  YEAR  AND  THEREAFTER  THERE
SHALL  BE  PAID TWELVE MILLION DOLLARS ($12,000,000) ON AN ANNUAL BASIS.
For school years commencing on July first, two thousand seven and there-
after, such special academic improvement grant  shall  be  payable  from
funds  appropriated  for  such  purpose  and shall be apportioned to the
Roosevelt union free school district  in  accordance  with  the  payment
schedules contained in section three thousand six hundred nine-a of this
article, notwithstanding any provision of law to the contrary.
  S  17.  Subdivision 6 of section 4402 of the education law, as amended
by section 34 of part A of chapter 57 of the laws of 2009, is amended to
read as follows:
  6. Notwithstanding any other law, rule or regulation to the  contrary,
the  board  of  education of a city school district with a population of
one hundred twenty-five thousand or more inhabitants shall be  permitted
to  establish  maximum  class  sizes  for  special  classes  for certain
students with disabilities in accordance with  the  provisions  of  this
subdivision. For the purpose of obtaining relief from any adverse fiscal
impact  from under-utilization of special education resources due to low
student attendance in  special  education  classes  at  the  middle  and
secondary level as determined by the commissioner, such boards of educa-
tion  shall, during the school years nineteen hundred ninety-five--nine-
ty-six through June thirtieth, two thousand [ten]  ELEVEN  of  the  [two
thousand  nine--two  thousand ten] TWO THOUSAND TEN--TWO THOUSAND ELEVEN
school year, be authorized to increase class sizes  in  special  classes
containing students with disabilities whose age ranges are equivalent to

S. 2                               16                               A. 2

those  of  students  in  middle  and secondary schools as defined by the
commissioner for purposes of this section by up to but not to exceed one
and two tenths times the applicable  maximum  class  size  specified  in
regulations  of the commissioner rounded up to the nearest whole number,
provided that in a city school  district  having  a  population  of  one
million  or  more, classes that have a maximum class size of fifteen may
be increased by no more than one student and provided that the projected
average class size shall not exceed the maximum specified in the  appli-
cable  regulation,  provided  that such authorization shall terminate on
June thirtieth, two thousand. Such authorization shall be  granted  upon
filing  of  a  notice by such a board of education with the commissioner
stating the board's intention to increase such class sizes and a certif-
ication that the board will conduct a study of  attendance  problems  at
the  secondary  level  and  will  implement  a corrective action plan to
increase the rate of attendance of students in such classes to at  least
the  rate  for students attending regular education classes in secondary
schools of the district. Such corrective action plan shall be  submitted
for  approval  by  the  commissioner by a date during the school year in
which such board increases class sizes  as  provided  pursuant  to  this
subdivision  to  be prescribed by the commissioner. Upon at least thirty
days notice to the board of education, after conclusion  of  the  school
year  in  which such board increases class sizes as provided pursuant to
this subdivision, the commissioner shall be authorized to terminate such
authorization upon a finding that the board has  failed  to  develop  or
implement an approved corrective action plan.
  S  18.  Subparagraph  (ii) of paragraph c of subdivision 11 of section
4410 of the education law, as amended by chapter  205  of  the  laws  of
2009, is amended to read as follows:
  (ii)  Payments  made pursuant to this section by a municipality shall,
upon conclusion of the July first to  June  thirtieth  school  year  for
which  such  payment  was  made,  be subject to audit against the actual
difference between such audited expenditures and revenues.  The  munici-
pality  shall  submit  the results of any such audit to the commissioner
and the commissioner of [social]  THE  OFFICE  OF  CHILDREN  AND  FAMILY
services,  if  appropriate,  for review and, if warranted, adjustment of
the tuition and/or maintenance rates. SUCH REVIEW SHALL BE COMPLETED AND
A  RESPONSE  PROVIDED  TO  THE  MUNICIPALITY  WITHIN  THREE  MONTHS   OF
SUBMISSION  OF  SUCH  AUDIT TO THE APPROPRIATE COMMISSIONER. The munici-
pality is authorized to recover  overpayments  made  to  a  provider  of
special  services  or programs pursuant to this section as determined by
the commissioner or the commissioner of [health] THE OFFICE OF  CHILDREN
AND  FAMILY  SERVICES  based  upon  their adjustment of a tuition and/or
maintenance rate, PROVIDED THAT FOR PURPOSES OF MAKING  SUCH  ADJUSTMENT
AND  RECOVERY,  THE  MUNICIPALITY  SHALL  BE  DEEMED  TO HAVE PAID FIFTY
PERCENT OF THE DISALLOWED COSTS.  Such recovery may be  accomplished  by
withholding  such amount from any moneys due the provider in the current
year, or by direct reimbursement.
  S 19. Section 4403 of the education law is amended by adding  two  new
subdivisions 21 and 22 to read as follows:
  21.  TO IDENTIFY SCHOOL DISTRICTS WITH HIGH RATES OF IDENTIFICATION OF
STUDENTS AS STUDENTS WITH DISABILITIES, SCHOOL DISTRICTS WITH LOW  RATES
OF DECLASSIFICATION OF STUDENTS WITH DISABILITIES, SCHOOL DISTRICTS WITH
HIGH  RATES OF PLACEMENT OF STUDENTS WITH DISABILITIES IN SEPARATE SITES
AND SCHOOL DISTRICTS WITH SIGNIFICANT DISPROPORTIONALITY BASED  ON  RACE
AND   ETHNICITY  IN  SUCH  IDENTIFICATION  OR  PLACEMENT  IN  PARTICULAR
SETTINGS. TO ENSURE COMPLIANCE WITH THE FEDERAL INDIVIDUALS  WITH  DISA-

S. 2                               17                               A. 2

BILITIES  EDUCATION ACT, THE DEPARTMENT SHALL WORK WITH THE DISTRICTS TO
VERIFY SUCH RATES, DETERMINE THE UNDERLYING CAUSES  AND,  IF  NECESSARY,
MAY  REQUIRE  THE  DEVELOPMENT  OF A CORRECTIVE ACTION PLAN TO IMPLEMENT
POLICIES,  PRACTICES AND PROCEDURES TO IMPROVE RESULTS IN THE IDENTIFIED
PROBLEM AREA.
  22. TO PROVIDE  TECHNICAL  ASSISTANCE  TO  SUCH  SCHOOL  DISTRICTS  IN
ACCORDANCE WITH SUBDIVISION TWENTY-ONE OF THIS SECTION TO ASSIST THEM IN
DEVELOPING EFFECTIVE STRATEGIES TO IMPROVE SUCH RESULTS INCLUDING ALTER-
NATIVE PLACEMENT MODELS; MODELS FOR EFFECTIVE PREVENTIVE SERVICES; COOR-
DINATED  USE  OF  FINANCIAL RESOURCES; IMPROVED EVALUATION PRACTICES AND
APPROPRIATE DECLASSIFICATION PRACTICES. THE DEPARTMENT  SHALL  SUBMIT  A
REPORT  TO  THE GOVERNOR AND THE LEGISLATURE ON ITS ACTIONS TO IMPLEMENT
THIS SUBDIVISION IN THE PRIOR SCHOOL YEAR  BY  DECEMBER  FIRST  OF  EACH
YEAR, COMMENCING WITH DECEMBER FIRST, TWO THOUSAND ELEVEN.
  S  20.  Subdivision b of section 2 of chapter 756 of the laws of 1992,
relating to funding a program for work force education conducted by  the
consortium  for worker education in New York city, as amended by section
41 of part A of chapter 57 of the laws of 2009, is amended  to  read  as
follows:
  b.  Reimbursement for programs approved in accordance with subdivision
a of this section [for the 2006-07 school year  shall  not  exceed  64.7
percent  of the lesser of such approvable costs per contact hour or nine
dollars and twenty-five cents per contact  hour  where  a  contact  hour
represents sixty minutes of instruction services provided to an eligible
adult,  reimbursement] for the 2007-08 school year shall not exceed 63.3
percent of the lesser of such approvable costs per contact hour or  nine
dollars  and  ninety cents per contact hour where a contact hour repres-
ents sixty minutes of  instruction  services  provided  to  an  eligible
adult,  reimbursement  for the 2008-09 school year shall not exceed 62.8
percent of the lesser of such approvable costs per contact hour  or  ten
dollars  and  sixty-five  cents  per  contact  hour where a contact hour
represents sixty minutes of instruction services provided to an eligible
adult [and], reimbursement for the 2009-10 school year shall not  exceed
64.1  percent of the lesser of such approvable costs per contact hour or
eleven dollars and fifty cents per contact hour  where  a  contact  hour
represents sixty minutes of instruction services provided to an eligible
adult  AND  REIMBURSEMENT  FOR  THE 2010-11 SCHOOL YEAR SHALL NOT EXCEED
62.6 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR  OR
TWELVE  DOLLARS  AND  FIVE  CENTS  PER CONTACT HOUR WHERE A CONTACT HOUR
REPRESENTS SIXTY MINUTES OF INSTRUCTION SERVICES PROVIDED TO AN ELIGIBLE
ADULT.  Notwithstanding any other provision of law to the contrary, [for
the 2006-07 school year such contact hours shall not exceed one  million
nine hundred twenty-three thousand seventy-six (1,923,076) hours; where-
as]  for the 2007-08 school year such contact hours shall not exceed one
million eight hundred thirty-seven  thousand  sixty  (1,837,060)  hours;
whereas  for the 2008-09 school year such contact hours shall not exceed
one  million  nine  hundred  forty-six  thousand   one   hundred   seven
(1,946,107)  hours;  whereas  for  the  2009-10 school year such contact
hours shall not exceed one million seven  hundred  sixty-three  thousand
nine  hundred  seven  (1,763,907)  hours; WHEREAS FOR THE 2010-11 SCHOOL
YEAR SUCH CONTACT HOURS SHALL NOT EXCEED ONE MILLION FIVE HUNDRED  TWEN-
TY-FIVE THOUSAND ONE HUNDRED NINETY-EIGHT (1,525,198) HOURS.
  Notwithstanding any other provision of law to the contrary, the appor-
tionment calculated for the city school district of the city of New York
pursuant to subdivision 11 of section 3602 of the education law shall be
computed  as if such contact hours provided by the consortium for worker

S. 2                               18                               A. 2

education, not to exceed the contact hours set forth herein, were eligi-
ble for aid in accordance with the provisions of such subdivision 11  of
section 3602 of the education law.
  S  21. Section 4 of chapter 756 of the laws of 1992, relating to fund-
ing a program for work force education conducted by the  consortium  for
worker  education  in New York city, is amended by adding a new subdivi-
sion p to read as follows:
  P. THE PROVISIONS OF  THIS  SUBDIVISION  SHALL  NOT  APPLY  AFTER  THE
COMPLETION  OF  PAYMENTS FOR THE 2010-2011 SCHOOL YEAR.  NOTWITHSTANDING
ANY INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION  SHALL
WITHHOLD  A  PORTION  OF EMPLOYMENT PREPARATION EDUCATION AID DUE TO THE
CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
TO THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE  ACCOUNT
AND  SHALL  NOT  EXCEED  ELEVEN  MILLION  FIVE  HUNDRED THOUSAND DOLLARS
($11,500,000).
  S 22. Section 6 of chapter 756 of the laws of 1992, relating to  fund-
ing  a  program for work force education conducted by the consortium for
worker education in New York city, as amended by section 43 of part A of
chapter 57 of the laws of 2009, is amended to read as follows:
  S 6. This act shall take effect July 1,  1992,  and  shall  be  deemed
repealed on June 30, [2010] 2011.
  S  23.  Section  4  of  chapter  425 of the laws of 2002, amending the
education law relating to  the  provision  of  supplemental  educational
services,  attendance  at  a  safe  public  school and the suspension of
pupils who bring a firearm to or possess  a  firearm  at  a  school,  as
amended  by  chapter  158  of  the  laws  of 2009, is amended to read as
follows:
  S 4. This act shall take effect July 1, 2002 and shall expire  and  be
deemed repealed June 30, [2010] 2011.
  S  24.  Section  5  of  chapter  101 of the laws of 2003, amending the
education law relating to implementation of the No Child Left Behind Act
of 2001, as amended by chapter 158 of the laws of 2009,  is  amended  to
read as follows:
  S  5.  This  act shall take effect immediately; provided that sections
one, two and three of this act shall expire and be  deemed  repealed  on
June 30, [2010] 2011.
  S  25.  Section  12  of  chapter 147 of the laws of 2001, amending the
education law relating to conditional appointment  of  school  district,
charter school or BOCES employees, as amended by chapter 179 of the laws
of 2009, is amended to read as follows:
  S  12.  This  act shall take effect on the same date as chapter 180 of
the laws of 2000 takes effect, and shall expire July 1, [2010] 2011 when
upon such date the provisions of this act shall be deemed repealed.
  S 26.  Subdivision 4 of section 51 of part B of chapter 57 of the laws
of 2008 amending the education law relating to the universal pre-kinder-
garten program, is amended to read as follows:
  4. section 23 of this act shall take effect July  1,  2008  and  shall
expire and be deemed repealed June 30, [2010] 2012;
  S  27.  Section  2  of  chapter  386 of the laws of 1996, amending the
education law relating to providing for a waiver allowing state  aid  in
certain circumstances, as amended by chapter 661 of the laws of 2005, is
amended to read as follows:
  S  2.  This  act  shall  take  effect  immediately,  provided that the
provisions of this act shall be deemed to have been in  full  force  and

S. 2                               19                               A. 2

effect on and after January 1, 1996, and provided, further that this act
shall be deemed repealed on and after January 1, [2011] 2015.
  S  28.    Subdivision  11 of section 94 of part C of chapter 57 of the
laws of 2004, relating to support of education, as amended by section 55
of part A of chapter 57 of the laws of  2009,  is  amended  to  read  as
follows:
  11.  section  seventy-one  of  this  act  shall  expire  and be deemed
repealed June 30, [2010] 2011;
  S 29. Intentionally omitted.
  S 30. Subdivision 1 of section 167 of chapter 169 of the laws of  1994
relating  to certain provisions related to the 1994-95 state operations,
aid to localities, capital projects and debt service budgets, as amended
by section 44 of part A of chapter 57 of the laws of 2009, is amended to
read as follows:
  1. Sections one through seventy of this act shall be  deemed  to  have
been  in  full  force  and effect as of April 1, 1994 provided, however,
that  sections  one,  two,  twenty-four,  twenty-five  and  twenty-seven
through seventy of this act shall expire and be deemed repealed on March
31, 2000; provided, however, that section twenty of this act shall apply
only  to  hearings  commenced  prior  to September 1, 1994, and provided
further that section twenty-six of this act shall expire and  be  deemed
repealed  on  March  31,  1997;  and provided further that sections four
through fourteen, sixteen, and eighteen, nineteen and twenty-one through
twenty-one-a of this act shall expire and be deemed  repealed  on  March
31,  1997; and provided further that sections three, fifteen, seventeen,
twenty, twenty-two and twenty-three of this  act  shall  expire  and  be
deemed repealed on March 31, [2011] 2012.
  S  31. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
of 1995, amending the education law and certain other laws  relating  to
state  aid  to  school  districts and the appropriation of funds for the
support of government, as amended by section 45 of part A of chapter  57
of the laws of 2009, are amended to read as follows:
  (22)  sections  one  hundred twelve, one hundred thirteen, one hundred
fourteen, one hundred fifteen and one hundred sixteen of this act  shall
take effect on July 1, 1995; provided, however, that section one hundred
thirteen of this act shall remain in full force and effect until July 1,
[2010] 2011 at which time it shall be deemed repealed;
  (24)  sections one hundred eighteen through one hundred thirty of this
act shall be deemed to have been in full force and effect on  and  after
July 1, 1995; provided further, however, that the amendments made pursu-
ant  to  section  one hundred nineteen of this act shall be deemed to be
repealed on and after July 1, [2010] 2011;
  S 32. School bus driver training. In addition to apportionments other-
wise provided by section 3602 of the education law, for aid  payable  in
the  2010-2011 school year, the commissioner of education shall allocate
school bus driver training grants to  school  districts  and  boards  of
cooperative  education  services pursuant to sections 3650-a, 3650-b and
3650-c of the education law, or for contracts directly with not-for-pro-
fit educational organizations for the purposes  of  this  section.  Such
payments shall not exceed four hundred thousand dollars ($400,000).
  S  33.  Support  of  public libraries. The moneys appropriated for the
support of public libraries by the chapter of the laws of 2010  enacting
the  education,  labor and family assistance budget shall be apportioned
for 2010--2011 in accordance with the provisions of sections  271,  272,
273, 282, 284, and 285 of the education law as amended by the provisions
of  this  chapter  and  the  provisions  of  this section, provided that

S. 2                               20                               A. 2

library construction aid pursuant to section 273-a of the education  law
shall  not  be payable from the appropriations for the support of public
libraries and provided  further  that  no  library,  library  system  or
program, as defined by the commissioner of education, shall receive less
total  system  or  program  aid than it received for the year 2001--2002
except as a result of a reduction adjustment necessary to conform to the
appropriations for support of public libraries.
  Notwithstanding any other provision of law to the contrary the  moneys
appropriated for the support of public libraries for the year 2010--2011
by a chapter of the laws of 2010 enacting the education, labor and fami-
ly  assistance  budget  shall  fulfill the state's obligation to provide
such aid and, pursuant to a plan developed by the commissioner of educa-
tion and approved by the director of the  budget,  the  aid  payable  to
libraries  and  library systems pursuant to such appropriations shall be
reduced proportionately to assure that the total amount of  aid  payable
does not exceed the total appropriations for such purpose.
  S  34.  Special  apportionment for salary expenses. a. Notwithstanding
any other provision of law, upon  application  to  the  commissioner  of
education,  not  sooner  than  the first day of the second full business
week of June, 2011 and not later than the last day  of  the  third  full
business  week  of  June, 2011, a school district eligible for an appor-
tionment pursuant to section 3602 of the education law shall be eligible
to receive an apportionment pursuant to this  section,  for  the  school
year  ending June 30, 2011, for salary expenses incurred between April 1
and June 30, 2011, and such apportionment shall not exceed  the  sum  of
(i)  the  deficit  reduction  assessment of 1990-91 as determined by the
commissioner of education, pursuant to paragraph f of subdivision  1  of
section  3602  of the education law, as in effect through June 30, 1993,
plus (ii) 186 percent of such amount for a city  school  district  in  a
city  with  a  population in excess of 1,000,000 inhabitants, plus (iii)
209 percent of such amount for a city school district in a city  with  a
population of more than 195,000 inhabitants and less than 219,000 inhab-
itants  according  to  the  latest federal census, plus (iv) the net gap
elimination adjustment for 2010--2011, as determined by the commissioner
of education pursuant to paragraph e of subdivision 1 of section  3609-a
of  the  education  law as in effect through June 30, 2011, and provided
further that such apportionment shall not exceed such  salary  expenses.
Such  application shall be made by a school district, after the board of
education or trustees have adopted a resolution to do so and in the case
of a city school district in a city  with  a  population  in  excess  of
125,000 inhabitants, with the approval of the mayor of such city.
  b.  The  claim  for  an  apportionment to be paid to a school district
pursuant to subdivision a of this section  shall  be  submitted  to  the
commissioner  of  education  on  a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that  the  form
has been submitted as prescribed. Such approved amounts shall be payable
on  the  same  day in September of the school year following the year in
which application was made as funds provided pursuant to subparagraph  4
of  paragraph  b  of  subdivision 4 of section 92-c of the state finance
law, on the audit and warrant  of  the  state  comptroller  on  vouchers
certified  or  approved  by  the commissioner of education in the manner
prescribed by law from moneys in the state lottery  fund  and  from  the
general  fund  to  the  extent that the amount paid to a school district
pursuant to this section exceeds the amount, if  any,  due  such  school
district  pursuant  to subparagraph 2 of paragraph a of subdivision 1 of

S. 2                               21                               A. 2

section 3609-a of the education law in the  school  year  following  the
year in which application was made.
  c.  Notwithstanding  the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be  deducted  from  the
following  payments  due  the  school  district  during  the school year
following the year in which application was made  pursuant  to  subpara-
graphs  1,  2,  3,  4  and  5 of paragraph a of subdivision 1 of section
3609-a of the education law in the following order: the  lottery  appor-
tionment  payable  pursuant to subparagraph 2 of such paragraph followed
by the fixed fall payments payable pursuant to subparagraph  4  of  such
paragraph  and then followed by the district's payments to the teachers'
retirement system pursuant to subparagraph 1 of such paragraph, and  any
remainder  to  be  deducted  from  the  individualized  payments due the
district pursuant to paragraph b of such subdivision shall  be  deducted
on  a  chronological  basis  starting  with the earliest payment due the
district.
  S 35. Special apportionment for public pension accruals. a.   Notwith-
standing any other provision of law, upon application to the commission-
er  of education, not later than June 30, 2011, a school district eligi-
ble for an apportionment pursuant to section 3602 of the  education  law
shall  be eligible to receive an apportionment pursuant to this section,
for the school year ending June 30, 2011, and such  apportionment  shall
not  exceed  the  additional  accruals  required  to  be  made by school
districts in the 2004-05 and 2005-06 school years associated with chang-
es for such public pension liabilities. The amount  of  such  additional
accrual shall be certified to the commissioner of education by the pres-
ident  of  the  board  of education or the trustees or, in the case of a
city school district in a city with a population in  excess  of  125,000
inhabitants, the mayor of such city. Such application shall be made by a
school district, after the board of education or trustees have adopted a
resolution  to do so and in the case of a city school district in a city
with a population in excess of 125,000 inhabitants, with the approval of
the mayor of such city.
  b. The claim for an apportionment to be  paid  to  a  school  district
pursuant  to  subdivision  a  of  this section shall be submitted to the
commissioner of education on a form prescribed  for  such  purpose,  and
shall  be  payable upon determination by such commissioner that the form
has been submitted as prescribed. Such approved amounts shall be payable
on the same day in September of the school year following  the  year  in
which  application was made as funds provided pursuant to subparagraph 4
of paragraph b of subdivision 4 of section 92-c  of  the  state  finance
law,  on  the  audit  and  warrant  of the state comptroller on vouchers
certified or approved by the commissioner of  education  in  the  manner
prescribed  by  law  from  moneys in the state lottery fund and from the
general fund to the extent that the amount paid  to  a  school  district
pursuant  to  this  section  exceeds the amount, if any, due such school
district pursuant to subparagraph 2 of paragraph a of subdivision  1  of
section  3609-a  of  the  education law in the school year following the
year in which application was made.
  c. Notwithstanding the provisions of section 3609-a of  the  education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions  a  and  b of this section shall first be deducted from the
following payments due  the  school  district  during  the  school  year
following  the  year  in which application was made pursuant to subpara-
graphs 1, 2, 3, 4 and 5 of paragraph  a  of  subdivision  1  of  section

S. 2                               22                               A. 2

3609-a  of  the education law in the following order: the lottery appor-
tionment payable pursuant to subparagraph 2 of such  paragraph  followed
by  the  fixed  fall payments payable pursuant to subparagraph 4 of such
paragraph  and then followed by the district's payments to the teachers'
retirement system pursuant to subparagraph 1 of such paragraph, and  any
remainder  to  be  deducted  from  the  individualized  payments due the
district pursuant to paragraph b of such subdivision shall  be  deducted
on  a  chronological  basis  starting  with the earliest payment due the
district.
  S 36. a. Notwithstanding any other law,  rule  or  regulation  to  the
contrary,  any moneys appropriated to the state education department may
be suballocated to other state departments or agencies,  as  needed,  to
accomplish the intent of the specific appropriations contained therein.
  b.  Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated to the state education department from  the  general
fund/aid  to  localities,  local  assistance  account-001,  shall be for
payment of financial assistance, as  scheduled,  net  of  disallowances,
refunds, reimbursement and credits.
  c.  Notwithstanding any other law, rule or regulation to the contrary,
all moneys appropriated to the state education  department  for  aid  to
localities shall be available for payment of aid heretofore or hereafter
to  accrue  and may be suballocated to other departments and agencies to
accomplish the intent of the specific appropriations contained therein.
  d. Notwithstanding any other law, rule or regulation to the  contrary,
moneys  appropriated  to  the  state  education  department  for general
support for public schools may be interchanged with any  other  item  of
appropriation  for general support for public schools within the general
fund local assistance account elementary, middle, secondary and continu-
ing education program.
  S 37. Notwithstanding the provision of any law, rule, or regulation to
the contrary, the city school district of the city  of  Rochester,  upon
the  consent  of  the  board  of cooperative educational services of the
supervisory district serving its geographic  region  may  purchase  from
such  board  for  the  2010-11  school  year,  as a non-component school
district, services required by article 19 of the education law.
  S 38. The amounts specified in this section shall be a  setaside  from
the  state  funds  which  each such district is receiving from the total
foundation aid:
  a. for the purpose of the development,  maintenance  or  expansion  of
magnet  schools  or magnet school programs for the two thousand ten--two
thousand eleven school year. To the city school district of the city  of
New  York  there  shall be paid forty-eight million one hundred seventy-
five thousand dollars  ($48,175,000)  including  five  hundred  thousand
dollars  ($500,000)  for  the Andrew Jackson High School; to the Buffalo
city school district, twenty-one million  twenty-five  thousand  dollars
($21,025,000);  to  the  Rochester city school district, fifteen million
dollars ($15,000,000); to the Syracuse city  school  district,  thirteen
million  dollars  ($13,000,000);  to  the  Yonkers city school district,
forty-nine million five hundred thousand dollars, ($49,500,000); to  the
Newburgh city school district, four million six hundred forty-five thou-
sand dollars ($4,645,000); to the Poughkeepsie city school district, two
million  four hundred seventy-five thousand dollars ($2,475,000); to the
Mount Vernon city school district, two million dollars ($2,000,000);  to
the  New  Rochelle  city  school  district, one million four hundred ten
thousand dollars ($1,410,000); to the Schenectady city school  district,
one  million  eight  hundred  thousand dollars ($1,800,000); to the Port

S. 2                               23                               A. 2

Chester city school district, one million  one  hundred  fifty  thousand
dollars  ($1,150,000);  to  the  White Plains city school district, nine
hundred thousand dollars ($900,000); to the Niagara  Falls  city  school
district,  six  hundred  thousand dollars ($600,000); to the Albany city
school district, three  million  five  hundred  fifty  thousand  dollars
($3,550,000);  to  the  Utica  city school district, two million dollars
($2,000,000); to the Beacon city school district, five hundred sixty-six
thousand dollars ($566,000); to the  Middletown  city  school  district,
four  hundred  thousand  dollars  ($400,000); to the Freeport union free
school district, four hundred thousand dollars ($400,000); to the Green-
burgh  central  school  district,   three   hundred   thousand   dollars
($300,000);  to  the Amsterdam city school district, eight hundred thou-
sand dollars ($800,000); to the  Peekskill  city  school  district,  two
hundred  thousand  dollars  ($200,000);  and  to  the Hudson city school
district, four hundred thousand dollars ($400,000).
  b. notwithstanding the provisions of subdivision a of this section,  a
school  district  receiving a grant pursuant to this subdivision may use
such grant funds for: (i) any  instructional  or  instructional  support
costs  associated  with  the  operation  of a magnet school; or (ii) any
instructional or instructional support costs associated with implementa-
tion of an alternative approach to reduction of racial isolation  and/or
enhancement  of  the  instructional  program and raising of standards in
elementary and secondary schools of school districts having  substantial
concentrations of minority students. The commissioner of education shall
not  be authorized to withhold magnet grant funds from a school district
that used such funds in accordance with this paragraph,  notwithstanding
any  inconsistency  with  a request for proposals issued by such commis-
sioner.
  c. for the purpose of attendance improvement  and  dropout  prevention
for  the two thousand ten--two thousand eleven school year, for any city
school district in a city having a population of more than one  million,
the  setaside  for  attendance  improvement and dropout prevention shall
equal the amount set aside in the base year. For the two thousand  ten--
two  thousand  eleven  school year, it is further provided that any city
school district in a city having a population of more than  one  million
shall  allocate at least one-third of any increase from base year levels
in funds set aside pursuant to the requirements of this  subdivision  to
community-based  organizations.  Any  increase required pursuant to this
subdivision to community-based organizations  must  be  in  addition  to
allocations provided to community-based organizations in the base year.
  d.  for  the  purpose of teacher support for the two thousand ten--two
thousand eleven school year: to the city school district of the city  of
New  York,  sixty-two  million  seven  hundred  seven  thousand  dollars
($62,707,000); to the Buffalo city school district,  one  million  seven
hundred  forty-one  thousand dollars ($1,741,000); to the Rochester city
school district, one million seventy-six thousand dollars  ($1,076,000);
to the Yonkers city school district, one million one hundred forty-seven
thousand dollars ($1,147,000); and to the Syracuse city school district,
eight hundred nine thousand dollars ($809,000). All funds made available
to  a  school district pursuant to this subdivision shall be distributed
among teachers including prekindergarten teachers and teachers of  adult
vocational and academic subjects in accordance with this subdivision and
shall  be  in addition to salaries heretofore or hereafter negotiated or
made available; provided, however, that all funds  distributed  pursuant
to  this section for the current year shall be deemed to incorporate all
funds distributed pursuant to former subdivision 27 of section  3602  of

S. 2                               24                               A. 2

the  education law for prior years. In school districts where the teach-
ers are represented by certified or recognized  employee  organizations,
all salary increases funded pursuant to this section shall be determined
by separate collective negotiations conducted pursuant to the provisions
and  procedures  of article 14 of the civil service law, notwithstanding
the existence of a negotiated agreement between a school district and  a
certified or recognized employee organization.
  S  39.  Gap  elimination  adjustment  restoration. Notwithstanding any
other provision of law to the contrary, apportionments from this section
shall be supported from funds appropriated for  such  purpose  from  the
state fiscal stabilization fund-education fund as funded by the American
recovery  and reinvestment act of 2009. For the purposes of this section
the term "fiscal year", followed by a reference to a year shall mean the
period from July first of the preceding year to June  thirtieth  of  the
calendar year referenced.
  Funds  shall be apportioned to each school district in an amount equal
to the positive difference of the gap elimination  adjustment  less  the
net gap elimination adjustment, both as computed pursuant to paragraph e
of subdivision 1 of section 3609-a of the education law.
  Each district shall be eligible, pursuant to applicable federal rules,
regulations and guidelines, for a payment for the 2010--2011 school year
of  up  to seventy percent (0.7) of such funds on or after the effective
date of this act and up to an additional thirty percent  (0.3)  of  such
funds on or after April 1, 2011.
  S  40. Education Jobs Fund. Notwithstanding any other provision of law
to the contrary, funds appropriated from the federal education jobs fund
program, as authorized by public law number  111-226,  shall  be  appor-
tioned  pursuant  to  this section. For the purposes of this section the
term "fiscal year", followed by a reference to a  year  shall  mean  the
period  from  July  first of the preceding year to June thirtieth of the
calendar year referenced.
  Funds shall be apportioned to each school  district  eligible  for  an
apportionment pursuant to subdivision 4 of section 3602 of the education
law in an amount equal to the product of the net gap elimination adjust-
ment  computed  pursuant to chapter fifty-three of the laws of two thou-
sand ten,  multiplied  by  forty-three  and  twenty-five  thousand  nine
hundred eighty-nine one-millionths percent (0.43025989).
  Each  such  district shall be eligible, pursuant to applicable federal
rules, regulations and guidelines, for  a  payment  for  the  2010--2011
school  year  of  up to seventy percent (0.7) of such funds on or before
April 1, 2011.
  Notwithstanding any other provision of law to the  contrary,  district
expenditures  from  funds  appropriated  from the federal education jobs
fund program shall be deemed expenditures included in the definition set
forth in paragraph t of subdivision 1 of section 3602 of  the  education
law.
  S 41. Intentionally omitted.
  S 42. Severability. The provisions of this act shall be severable, and
if  the  application  of  any  clause, sentence, paragraph, subdivision,
section or part of this act to  any  person  or  circumstance  shall  be
adjudged  by  any  court  of  competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section, part
of this act or remainder thereof, as the  case  may  be,  to  any  other
person  or  circumstance,  but shall be confined in its operation to the
clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof

S. 2                               25                               A. 2

directly  involved  in the controversy in which such judgment shall have
been rendered.
  S  43.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2010, provided,
however, that:
  1. sections five, seven, fourteen through seventeen,  nineteen,  thir-
ty-two, thirty-four, thirty-five, thirty-eight, thirty-nine and forty of
this  act  shall  be deemed to have been in full force and effect on and
after July 1, 2010.
  2. section eleven of this act shall be deemed to  have  been  in  full
force and effect on and after July 1, 2009.
  3.  section ten of this act shall be deemed to have been in full force
and effect on and after July 1, 2007.
  4. the amendments to subdivision 1 of section 2856  of  the  education
law  made by section five of this act shall not affect the expiration of
such subdivision as provided in chapter 378 of  the  laws  of  2007,  as
amended,  when  upon such date the provisions of section six of this act
shall take effect;
  5. the amendments to subdivision 6 of section 4402  of  the  education
law made by section seventeen of this act shall not affect the repeal of
such subdivision and shall be deemed repealed therewith;
  6. the amendments to chapter 756 of the laws of 1992 relating to fund-
ing  a  program for work force education conducted by the consortium for
worker education in New York city made by sections twenty and twenty-one
of this act shall not affect the repeal of such  chapter  and  shall  be
deemed repealed therewith; and
  7. sections three and four of this act shall be deemed to have been in
full force and effect on and after July 1, 2006.

                                 PART B

  Section  1.  Paragraphs b and c of subdivision 6 of section 661 of the
education law are REPEALED and two new paragraphs b and c are  added  to
read as follows:
  B.  A STUDENT WHO IS IN DEFAULT ON A STUDENT LOAN MADE UNDER ANY STAT-
UTORY NEW YORK STATE OR FEDERAL EDUCATION LOAN PROGRAM SHALL BE INELIGI-
BLE  TO  RECEIVE  ANY  AWARD  OR LOAN PURSUANT TO THIS ARTICLE UNTIL THE
STUDENT CURES THE DEFAULT STATUS PURSUANT TO APPLICABLE  LAW  AND  REGU-
LATION.
  C.  A  STUDENT  WHO HAS FAILED TO COMPLY WITH THE TERMS OF ANY SERVICE
CONDITION IMPOSED BY AN AWARD MADE  PURSUANT  TO  THIS  ARTICLE  OR  HAS
FAILED  TO  REPAY AN AWARD MADE PURSUANT TO THIS ARTICLE, AS REQUIRED BY
PARAGRAPH A OF SUBDIVISION FOUR OF SECTION  SIX  HUNDRED  SIXTY-FIVE  OF
THIS  SUBPART, SHALL BE INELIGIBLE TO RECEIVE ANY AWARD OR LOAN PURSUANT
TO THIS ARTICLE SO LONG AS SUCH FAILURE TO COMPLY OR REPAY CONTINUES.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been  in full force and effect on and after July 1, 2010; provided
further that the provisions of this act shall apply to any  student  who
is in default in the repayment of any student loan or under the terms of
any award pursuant to this article.

                                 PART C

  Section  1. Subclause 1 of clause (A) of subparagraph (i) of paragraph
a of subdivision 3 of section 667 of the education law,  as  amended  by

S. 2                               26                               A. 2

section  1  of  part  B of chapter 60 of the laws of 2000, is amended to
read as follows:
  (1)  In the case of students who have not been granted an exclusion of
parental income or had a dependent for income tax  purposes  during  the
tax year next preceding the academic year for which application is made,
EXCEPT  FOR  THOSE  STUDENTS WHO HAVE BEEN GRANTED EXCLUSION OF PARENTAL
INCOME WHO HAVE A SPOUSE BUT NO OTHER DEPENDENT:
  (a) For students first receiving aid after  nineteen  hundred  ninety-
three--nineteen  hundred  ninety-four and before two thousand--two thou-
sand one, four thousand one hundred twenty-five dollars; or
  (b) For students first receiving aid in nineteen hundred ninety-three-
-nineteen hundred ninety-four or earlier, three  thousand  five  hundred
seventy-five dollars; or
  (c)  For students first receiving aid in [the] two thousand--two thou-
sand one and thereafter, five thousand dollars.
  S 2. Subclause 2 of clause (A) of subparagraph (i) of paragraph  a  of
subdivision 3 of section 667 of the education law, as amended by section
1  of  part  B  of chapter 60 of the laws of 2000, is amended to read as
follows:
  (2) In the case of students receiving awards pursuant to  subparagraph
(iii)  of this paragraph AND THOSE STUDENTS WHO HAVE BEEN GRANTED EXCLU-
SION OF PARENTAL INCOME WHO HAVE A SPOUSE BUT NO OTHER DEPENDENT.
  (a) For students first receiving aid  in  nineteen hundred ninety-four
--nineteen  hundred  ninety-five and nineteen hundred ninety-five--nine-
teen hundred  ninety-six  and  thereafter,  three  thousand  twenty-five
dollars, or
  (b)  For students first receiving aid in nineteen hundred ninety-two--
nineteen hundred ninety-three and nineteen  hundred  ninety-three--nine-
teen   hundred  ninety-four,  two  thousand  five  hundred  seventy-five
dollars, or
  (c) For students first receiving aid in nineteen hundred  ninety-one--
nineteen  hundred ninety-two or earlier, two thousand four hundred fifty
dollars; or
  S 3. Subparagraph (iii) of paragraph a of subdivision 3 of section 667
of the education law, as amended by section 1 of part B of chapter 60 of
the laws of 2000, is amended to read as follows:
  (iii) (A) For students who have been  granted  exclusion  of  parental
income  and were single with no dependent for income tax purposes during
the tax year next preceding the academic year for which  application  is
made,  the  base amount, as determined in subparagraph (i) of this para-
graph, shall be reduced in relation to income as follows:

Amount of income                    Schedule of reduction
                                    of base amount

[(A)] (1) Less than three thousand  None
    dollars
[(B)] (2) Three thousand dollars or Thirty-one per centum of
    more, but not more than ten     amount in excess of three
    thousand dollars                thousand dollars

  (B) FOR THOSE STUDENTS WHO HAVE BEEN  GRANTED  EXCLUSION  OF  PARENTAL
INCOME WHO HAVE A SPOUSE BUT NO OTHER DEPENDENT, FOR INCOME TAX PURPOSES
DURING  THE TAX YEAR NEXT PRECEDING THE ACADEMIC YEAR FOR WHICH APPLICA-
TION IS MADE, THE BASE AMOUNT, AS DETERMINED IN SUBPARAGRAPH (I) OF THIS
PARAGRAPH, SHALL BE REDUCED IN RELATION TO INCOME AS FOLLOWS:

S. 2                               27                               A. 2

AMOUNT OF INCOME                    SCHEDULE OF REDUCTION
                                    OF BASE AMOUNT

(1) LESS THAN SEVEN THOUSAND        NONE
    DOLLARS
(2) SEVEN THOUSAND DOLLARS OR       SEVEN PER CENTUM OF EXCESS
    MORE, BUT LESS THAN ELEVEN      OVER SEVEN THOUSAND DOLLARS
    THOUSAND DOLLARS
(3) ELEVEN THOUSAND DOLLARS OR      TWO HUNDRED EIGHTY DOLLARS
    MORE, BUT LESS THAN EIGHTEEN    PLUS TEN PER CENTUM OF EXCESS
    THOUSAND DOLLARS                OVER ELEVEN THOUSAND DOLLARS
(4) EIGHTEEN THOUSAND DOLLARS OR    NINE HUNDRED EIGHTY DOLLARS
    MORE, BUT NOT MORE THAN FORTY   PLUS TWELVE PER CENTUM OF
    THOUSAND DOLLARS                EXCESS OVER EIGHTEEN
                                    THOUSAND DOLLARS

  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after July 1, 2010.

                                 PART D

  Section 1. Subdivision 1 of section  663  of  the  education  law,  as
amended  by  section  1  of part F of chapter 57 of the laws of 2009, is
amended to read as follows:
  1. Income defined. Except  as  otherwise  provided  in  this  section,
"income"  shall  be  the  total  of  the combined net taxable income and
income from pensions of New York state,  local  governments  [and],  the
federal government AND ANY PRIVATE EMPLOYER of the applicant, the appli-
cant's  spouse,  and  the applicant's parents, INCLUDING ANY PENSION AND
ANNUITY INCOME EXCLUDED FOR PURPOSES OF TAXATION PURSUANT  TO  PARAGRAPH
THREE-A  OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW,
as reported in New York state income tax returns for the  calendar  year
next  preceding  the  beginning of the school year for which application
for assistance is made, except that any amount received by an  applicant
as a scholarship at an educational institution or as a fellowship grant,
including  the  value  of contributed services and accommodations, shall
not be included within the definition of "income" for  the  purposes  of
this  article.  The  term "parent" shall include birth parents, steppar-
ents, adoptive parents and the spouse of an adoptive parent. Income,  if
not  a  whole  dollar  amount,  shall be assumed to be equal to the next
lowest whole dollar amount. Any change in the  status  of  an  applicant
with  regard  to  the  persons  responsible  for the applicant's support
occurring after the beginning of any semester shall not be considered to
change the applicant's award for that semester.
  S 2.  This act shall take effect immediately and shall  be  deemed  to
have been in full force and effect on and after July 1, 2010.

                                 PART E

  Section  1.  Section  3  of  part  V of chapter 57 of the laws of 2005
amending the education law relating to the New York state nursing facul-
ty loan forgiveness incentive program and the  New  York  state  nursing
faculty  scholarship program, as added by section 4 of part D of chapter
63 of the laws of 2005, is amended to read as follows:
  S 3. This act shall take effect on the  same  date  and  in  the  same
manner  as  Part H of [a] THIS chapter [of the laws of 2005 amending the

S. 2                               28                               A. 2

labor law and other laws relating to implementing the state fiscal  plan
for  the  2005-2006  state  fiscal year, as proposed in legislative bill
numbers S.3667 and A.6841, takes effect]; provided that section  two  of
this  act  shall  take effect on the same date and in the same manner as
Part I of [a] THIS chapter [of the laws of 2005 amending the  labor  law
and  other  laws  relating to implementing the state fiscal plan for the
2005-2006 state fiscal year, as proposed  in  legislative  bill  numbers
S.3667  and  A.6841,  takes  effect]; and provided further that this act
shall expire and be deemed repealed on June 30, [2010] 2015.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after June 30, 2010.

                                 PART F

  Section  1. Section 17 of chapter 31 of the laws of 1985, amending the
education law relating to regents scholarships in  certain  professions,
as  amended by section 1 of part I of chapter 57 of the laws of 2008, is
amended to read as follows:
  S 17. This act shall take effect immediately; provided, however,  that
the  scholarship  and  loan forgiveness programs established pursuant to
the provisions of this act shall terminate upon  the  granting  of  such
awards for the 2008-2009 school year PROVIDED, HOWEVER, THAT THE REGENTS
PHYSICIAN  LOAN  FORGIVENESS  PROGRAM  ESTABLISHED  PURSUANT TO THIS ACT
SHALL NOT TERMINATE UNTIL THE GRANTING OF SUCH AWARDS  FOR  THE  2010-11
SCHOOL  YEAR,  PROVIDED  THAT  THE  FINAL DISBURSEMENT OF ANY MULTI-YEAR
AWARDS GRANTED IN SUCH SCHOOL YEAR SHALL BE PAID.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been  in  full  force  and effect on the same date and in the same
manner as part I of chapter 57 of the laws of 2008 takes effect.

                                 PART G

  Section 1. Subdivision 4 of section  661  of  the  education  law,  as
amended  by  chapter  309 of the laws of 1996, paragraph a as amended by
section 1 and paragraph c as amended, paragraphs d and e  as  added  and
paragraph  f as relettered by section 2 of part E-1 of chapter 57 of the
laws of 2007 and paragraph f as added by chapter  332  of  the  laws  of
1998, is amended to read as follows:
  4.  Attendance  in approved courses of study in approved institutions.
To be eligible to receive payments from the president a student:
  a. Must be matriculated in an approved  program,  as  defined  by  the
commissioner  pursuant  to article thirteen OF THIS CHAPTER, OR PURSUANT
TO PARAGRAPH B OF THIS SUBDIVISION, in an institution  situated  in  the
state,  which has been approved and operating in this state for at least
one year, and has been approved for  participation  in  federal  student
financial  aid  programs  authorized by Title IV of the Higher Education
Act of 1965, as amended. Nothing  in  this  subdivision  shall  preclude
payment  of an award to a recipient who receives instruction outside the
state, which instruction is conducted by an institution situated in  the
state,  and  is  part of the student's program of study at such institu-
tion; provided, however, that nothing in this subdivision shall preclude
the receipt of a loan pursuant to section six  hundred  eighty  of  this
article;  provided,  further,  that  students not attending institutions
eligible for participating in federal Title IV financial aid programs on
or before July first, two thousand seven: (i) who received  their  first
award under this article before the two thousand six--two thousand seven

S. 2                               29                               A. 2

academic  year  shall  be eligible for payments until the end of the two
thousand nine--two thousand ten academic  year;  or  (ii)  who  received
their first award under this article for the two thousand six--two thou-
sand  seven  academic year through and including the two thousand nine--
two thousand ten academic year shall be eligible for payments until  the
end of the two thousand fourteen--two thousand fifteen academic year.
  b.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY AND THE
RULES AND REGULATIONS PROMULGATED PURSUANT THERETO, THE PRESIDENT  SHALL
MAKE  TUITION  ASSISTANCE PROGRAM AWARDS AVAILABLE TO FULL-TIME RESIDENT
UNDERGRADUATE STUDENTS NOT CURRENTLY ELIGIBLE FOR AWARDS UNDER  SUBDIVI-
SION  THREE  OF SECTION SIX HUNDRED SIXTY-SEVEN OF THIS PART AND WHO ARE
ATTENDING AN EDUCATIONAL INSTITUTION IN THIS STATE THAT:
  (I) IS EXEMPT FROM FEDERAL TAXATION UNDER  SECTION  501(C)(3)  OF  THE
INTERNAL REVENUE CODE; AND
  (II) HAS ITS HEADQUARTERS AND MAIN CAMPUS LOCATED WITHIN THE STATE AND
IS  ELIGIBLE  FOR  FUNDS  UNDER  TITLE IV OF THE HIGHER EDUCATION ACT OF
1965, AS AMENDED; AND
  (III) IS ACCREDITED BY AN  AGENCY  RECOGNIZED  BY  THE  UNITED  STATES
SECRETARY OF EDUCATION, OR BY A SUCCESSOR FEDERAL AGENCY; AND
  (IV) ENROLLMENT IN WHICH INSTITUTION WOULD RENDER THE STUDENT ELIGIBLE
TO  RECEIVE A FEDERAL PELL GRANT IN ACCORDANCE WITH SECTION ONE THOUSAND
SEVENTY OF TITLE TWENTY OF THE UNITED STATES  CODE,  ET.  SEQ.  AND  THE
REGULATIONS PROMULGATED THEREUNDER; AND
  (V)  PROVIDES  A  PROGRAM OF INSTRUCTION LASTING AT LEAST THREE YEARS,
FOR WHICH THE STUDENT IS ENROLLED.
  B-1. TUITION ASSISTANCE PROGRAM AWARDS  THAT  ARE  MADE  AVAILABLE  TO
STUDENTS  PURSUANT  TO  PARAGRAPH  B  OF  THIS  SUBDIVISION SHALL NOT BE
AWARDED IF AN APPLICANT:
  (I) DOES NOT MEET THE CITIZENSHIP REQUIREMENTS PURSUANT TO SUBDIVISION
THREE OF THIS SECTION;
  (II) DOES NOT MEET THE INCOME REQUIREMENTS  PURSUANT  TO  SECTION  SIX
HUNDRED SIXTY-THREE OF THIS SUBPART;
  (III) DOES NOT MAINTAIN GOOD ACADEMIC STANDING PURSUANT TO PARAGRAPH C
OF  SUBDIVISION  SIX  OF SECTION SIX HUNDRED SIXTY-FIVE OF THIS SUBPART,
AND IF THERE IS  NO  APPLICABLE  EXISTING  ACADEMIC  STANDARDS  SCHEDULE
PURSUANT TO SUCH SUBDIVISION, THEN SUCH RECIPIENT SHALL BE PLACED ON THE
ACADEMIC  STANDARDS  SCHEDULE  APPLICABLE  TO  STUDENTS  ENROLLED  IN  A
FOUR-YEAR OR FIVE-YEAR UNDERGRADUATE PROGRAM;
  (IV) IS IN DEFAULT IN THE REPAYMENT OF ANY STATE  OR  FEDERAL  STUDENT
LOAN,  HAS  FAILED  TO  COMPLY  WITH  THE TERMS OF ANY SERVICE CONDITION
IMPOSED BY AN ACADEMIC PERFORMANCE AWARD MADE PURSUANT TO THIS  ARTICLE,
OR HAS FAILED TO MAKE A REFUND OF ANY AWARD; OR
  (V) IS INCARCERATED IN ANY FEDERAL, STATE OR OTHER PENAL INSTITUTION.
  C.  Must  be  in full-time attendance, as defined by the commissioner,
except as otherwise specifically provided in  THIS  article  [fourteen],
and,  for  a  student  having completed his or her second academic year,
must have a cumulative C average or its equivalent.  The  president  may
waive  the  requirement  that the student have a cumulative C average or
its equivalent for undue hardship based on: (i) the death of a  relative
of  the  student; (ii) the personal injury or illness of the student; or
(iii) other extenuating circumstances; and
  [c.] D. For students who first receive aid pursuant to this chapter in
academic year nineteen hundred ninety-six--nineteen hundred ninety-seven
to academic year two thousand  six--two  thousand  seven,  must  have  a
certificate  of  graduation from a school providing secondary education,
or the recognized equivalent of such certificate;  or  have  achieved  a

S. 2                               30                               A. 2

passing  score,  as  determined by the United States secretary of educa-
tion, on a federally approved examination which  demonstrates  that  the
student can benefit from the education being offered;
  [d.] E. For students who first receive aid pursuant to this chapter in
academic  year two thousand six--two thousand seven, must have a certif-
icate of graduation from a recognized school providing secondary  educa-
tion  within  the  United  States,  or the recognized equivalent of such
certificate, or have been admitted to such institution after receiving a
passing score on a federally approved ability to benefit test  that  has
been  independently  administered  and  evaluated,  as  provided  by the
commissioner;
  [e.] F. For students who first receive aid pursuant to this chapter in
academic year two thousand seven--two thousand eight or thereafter, must
have (i) a certificate of graduation from a school  providing  secondary
education  from a state within the United States; or (ii) the recognized
equivalent of such certificate; or (iii) received a passing score  on  a
federally  approved  ability to benefit test that has been identified by
the board of regents as satisfying the eligibility requirements of  this
section and has been independently administered and evaluated as defined
by the commissioner[.];
  [f.  for] G. FOR students who are disabled as defined by the Americans
With Disability Act of 1990, 42  USC  12101,  the  full-time  attendance
requirement  is  eliminated.  Such disabled students may be in part-time
attendance, as defined by the commissioner in order to  be  eligible  to
receive payments from the president.
  S 2. This act shall take effect immediately and shall apply to academ-
ic year 2011-2012 and to all subsequent academic years.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through G of this act shall be
as specifically set forth in the last section of such Parts.