S T A T E   O F   N E W   Y O R K
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                                  4305

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced  by M. of A. CANESTRARI, McENENY, LIFTON, PAULIN, DelMONTE --
  Multi-Sponsored by -- M. of A. BRADLEY, BRENNAN, GLICK, MAGEE,  WRIGHT
  -- read once and referred to the Committee on Education

AN  ACT  to amend the local finance law, in relation to the exclusion of
  certain indebtedness of certain city school districts

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

  Section  1.  Section  121.20  of  the local finance law, as amended by
chapter 506 of the laws of 1964, paragraph b as amended by  chapter  116
of the laws of 1968, is amended to read as follows:
  S  121.20[.]  Exclusion  of  certain  indebtedness of school districts
other than school districts in a city WITH ONE HUNDRED TWENTY-FIVE THOU-
SAND INHABITANTS OR MORE ACCORDING  TO  THE  LATEST  FEDERAL  CENSUS  in
ascertaining  their  power to contract indebtedness.  a. As used in this
section:
  1. The term "indebtedness" shall mean indebtedness evidenced by  bonds
and bond anticipation notes.
  2.  The term "school district" shall mean a school district other than
a school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHAB-
ITANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS.
  b. In ascertaining the power of a school district to contract  indebt-
edness,  there  may  be excluded outstanding indebtedness contracted, or
indebtedness to be contracted, for objects or purposes having periods of
probable usefulness provided in paragraph [a.] A  of  section  11.00  of
this  chapter,  to the extent to which the commissioner of education, or
such person or persons as may be designated by him, shall estimate based
upon facts existing on the date of such estimate that moneys  receivable
by  the  school  district  from  the  state as an apportionment for debt
service for school building purposes, under laws existing on the date of
such estimate, shall meet the interest on and  the  annual  requirements
for  the  payment of such indebtedness. Any such estimate shall describe

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02598-01-9
              

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the indebtedness to which it relates. An  estimate  shall  be  effective
only until the June thirtieth next succeeding the date thereof.
  c.  The  commissioner of education by rule or regulation may prescribe
the manner and form in which a school district  shall  make  application
for  any such estimate. The department of education shall furnish to the
school district, without charge, three  certified  copies  of  any  such
estimate.
  S  2. Section 121.30 of the local finance law, as added by chapter 382
of the laws of 1962, is amended to read as follows:
  S 121.30[.] Exclusion of  certain  indebtedness  of  school  districts
other than school districts in a city WITH ONE HUNDRED TWENTY-FIVE THOU-
SAND  INHABITANTS  OR  MORE  ACCORDING  TO THE LATEST FEDERAL CENSUS. In
ascertaining the power  of  a  school  district,  other  than  a  school
district  in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR
MORE ACCORDING TO THE LATEST FEDERAL CENSUS,  to  contract  indebtedness
under  section 104.00 of this chapter, there may be excluded outstanding
bonds and  bond  anticipation  notes  or  indebtedness  proposed  to  be
contracted  and  to  be evidenced by bonds or bond anticipation notes to
finance the acquisition, construction and installation of a  shelter  or
fallout  shelter  by  such  school  district pursuant to section twenty-
three-a of the New York state defense emergency act,  but  only  to  the
extent  to  which such indebtedness, at the time it was contracted or is
to be contracted, did not or will not exceed fifty dollars multiplied by
the planned shelter occupancy of such shelter.
  S 3. Section 137.00 of the local finance law, as  amended  by  chapter
760 of the laws of 1963, is amended to read as follows:
  S  137.00  Debt statement of school districts outside cities  WITH ONE
HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR MORE ACCORDING TO THE LATEST
FEDERAL CENSUS. The debt statement of a school district,  other  than  a
school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABIT-
ANTS  OR  MORE ACCORDING TO THE LATEST FEDERAL CENSUS, shall contain the
following items of indebtedness for the purpose of showing  the  indebt-
edness of such school district:
  1. The amount of
  (a) Outstanding bonds;
  (b)  Outstanding  bond  anticipation notes, other than those issued in
anticipation of the bonds of the issue in connection with which the debt
statement is prepared;
  (c) Bonds of the proposed issue in  connection  with  which  the  debt
statement is prepared; and
  (d)  Bond anticipation notes proposed to be issued where a debt state-
ment is prepared in connection with the issuance of such notes.
  2. The amount of indebtedness of a merged or annexed  school  district
determined pursuant to section 121.10 of this chapter.
  For  the  purpose  of  showing  the indebtedness of a school district,
other than a school district in a  city  WITH  ONE  HUNDRED  TWENTY-FIVE
THOUSAND  INHABITANTS  OR  MORE  ACCORDING TO THE LATEST FEDERAL CENSUS,
there may be deducted the amount of any such indebtedness which has been
contracted or is proposed to be contracted to  the  extent  provided  in
section 121.20 of this chapter, and in such case a certified copy of the
estimate  of the commissioner of education shall be attached to and form
a part of the debt statement filed with the state  comptroller  and  the
clerk of the school district.
  For the purpose of showing the indebtedness of a school district other
than  a  school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND
INHABITANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS, there may be

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deducted the amount of indebtedness contracted, or indebtedness proposed
to be contracted, for the purpose and to the extent provided in  section
121.30 of this chapter.
  In  connection  with  the  sale  of  bond anticipation notes, a school
district may prepare a debt statement and may file such statement in the
manner provided in section 109.00 of this chapter.
  S 4. This act shall take effect immediately.