S T A T E O F N E W Y O R K
________________________________________________________________________
8370
2011-2012 Regular Sessions
I N A S S E M B L Y
June 15, 2011
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Introduced by M. of A. HOYT -- read once and referred to the Committee
on Education
AN ACT to amend the education law, in relation to providing for charter
school facilities aid
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The education law is amended by adding a new section 2858
to read as follows:
S 2858. CHARTER SCHOOLS FACILITIES AID. 1. CHARTER SCHOOLS SHALL BE
ELIGIBLE TO RECEIVE AN APPORTIONMENT PURSUANT TO THIS SECTION FOR
CURRENT YEAR APPROVED EXPENDITURES FOR DEBT SERVICE RELATING TO THE
CONSTRUCTION, ACQUISITION, RECONSTRUCTION, REHABILITATION OR IMPROVEMENT
OF ANY CHARTER SCHOOL BUILDING USED FOR INSTRUCTION; FOR APPROVED
EXPENDITURES FOR CAPITAL OUTLAYS FOR SUCH PURPOSES, WHICH SHALL BE AIDA-
BLE AS DEBT SERVICE THROUGH AN ASSUMED AMORTIZATION TO THE SAME EXTENT
AND UNDER THE SAME CONDITIONS AS SCHOOL DISTRICT CAPITAL OUTLAYS PURSU-
ANT TO SUBDIVISION SIX OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAP-
TER; FOR ANNUAL PAYMENTS TO THE DORMITORY AUTHORITY PURSUANT TO ANY
LEASE, SUBLEASE OR OTHER AGREEMENT RELATING TO THE FINANCING OR REFI-
NANCING OF AN ELIGIBLE CHARTER SCHOOL CONSTRUCTION PROJECT UNDER THE
PROVISIONS OF SECTION SIXTEEN HUNDRED EIGHTY OF THE PUBLIC AUTHORITIES
LAW, AND FOR CURRENT YEAR APPROVED EXPENDITURES FOR LEASE, LEASE-PUR-
CHASE OR OTHER ANNUAL PAYMENTS TO A SCHOOL DISTRICT OR PERSON, PARTNER-
SHIP OR CORPORATION FOR A CHARTER SCHOOL BUILDING USED FOR INSTRUCTION.
APPROVED EXPENDITURES FOR THE LEASE OR OTHER ANNUAL PAYMENTS SHALL NOT
INCLUDE THE COSTS OF HEAT, ELECTRICITY, WATER OR OTHER UTILITIES OR THE
COSTS OF OPERATION OR MAINTENANCE OF THE LEASED FACILITY. AN APPORTION-
MENT SHALL BE AVAILABLE PURSUANT TO THIS SUBDIVISION FOR CONSTRUCTION,
RECONSTRUCTION, REHABILITATION OR IMPROVEMENT IN A BUILDING, OR PORTION
THEREOF, BEING LEASED BY A CHARTER SCHOOL ONLY IF THE LEASE IS FOR A
TERM OF AT LEAST TEN YEARS SUBSEQUENT TO THE DATE OF THE GENERAL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13040-01-1
A. 8370 2
CONSTRUCTION CONTRACT FOR SUCH CONSTRUCTION, RECONSTRUCTION, REHABILI-
TATION OR IMPROVEMENT.
2. THE APPORTIONMENT PURSUANT TO THIS SECTION SHALL BE COMPUTED IN
ACCORDANCE WITH SUBDIVISION SIX OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER, AS MODIFIED BY THIS SECTION, AND ALL THE REQUIREMENTS OF
SUCH SUBDIVISION SIX SHALL APPLY, EXCEPT THAT A FIVE-YEAR CAPITAL FACIL-
ITIES PLAN SHALL NOT BE REQUIRED AS A CONDITION OF AID. IN COMPUTING
SUCH APPORTIONMENT, THE AID RATIO FOR THE CHARTER SCHOOL SHALL BE DEEMED
TO BE THE AID RATIO OF THE DISTRICT IN WHICH THE CHARTER SCHOOL IS
LOCATED, AND THE ASSUMED INTEREST RATE FOR BONDS OR NOTES ISSUED BY THE
CHARTER SCHOOL SHALL BE THE INTEREST RATE COMPUTED PURSUANT TO CLAUSE
(B) OF SUBPARAGRAPH FIVE OF PARAGRAPH E OF SUBDIVISION SIX OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS CHAPTER.
3. THE COMMISSIONER SHALL BE AUTHORIZED TO PAY UP TO SEVENTY PERCENT
OF THE SUM APPROPRIATED FOR PURPOSES OF THIS SECTION PRIOR TO APRIL
FIRST OF THE SCHOOL YEAR FOR WHICH SUCH MONIES ARE AVAILABLE, WITH THE
REMAINDER PAYABLE ON OR AFTER SUCH DATE.
4. WHERE AN APPORTIONMENT IS PAID TO A CHARTER SCHOOL PURSUANT TO THIS
SECTION BASED ON AN ASSUMED AMORTIZATION, AND THE CHARTER SCHOOL'S CHAR-
TER IS REVOKED OR IS NOT RENEWED OR THE CHARTER SCHOOL OTHERWISE CLOSES
PRIOR TO THE END OF THE PERIOD OF ASSUMED AMORTIZATION, THE STATE SHALL
HAVE A LIEN ON THE CHARTER SCHOOL BUILDING IN THE FULL AMOUNT OF THE AID
PAID PURSUANT TO THIS SECTION AND ANY TRANSFER OF SUCH BUILDING TO A
SCHOOL DISTRICT OR ANOTHER CHARTER SCHOOL UPON DISSOLUTION OF THE CHAR-
TER SCHOOL SHALL BE SUBJECT TO THE STATE'S LIEN. NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY, UPON REQUEST BY THE ATTORNEY GENERAL,
THE COURT IN A PROCEEDING PURSUANT TO SECTION TWO HUNDRED TWENTY OF THIS
CHAPTER SHALL BE AUTHORIZED TO DIRECT THE SALE OF SUCH SCHOOL BUILDING
IN ORDER TO PAY OFF THE LIEN OF THE STATE.
5. ANY CAPITAL IMPROVEMENTS MADE IN A CHARTER SCHOOL FINANCED WITH
CHARTER SCHOOL FACILITIES AID, STIMULUS FUNDS OR ANY OTHER SOURCE OF
STATE FUNDING SHALL BE DEEMED TO BE A PUBLIC WORKS PROJECT FOR THE
PURPOSES OF ARTICLE EIGHT OF THE LABOR LAW, AND ALL THE PROVISIONS OF
ARTICLE EIGHT OF THE LABOR LAW SHALL BE APPLICABLE TO THE CONSTRUCTION
WORK INVOLVED IN THE CONSTRUCTION OF SUCH CAPITAL IMPROVEMENTS, AND ANY
CONTRACT ENTERED INTO BY THE CHARTER SCHOOL FOR SUCH CAPITAL IMPROVE-
MENTS SHALL CONTAIN A CLAUSE TO THAT EFFECT, AND IF NO SUCH CLAUSE IS
CONTAINED IN SUCH CONTRACT, THE COURTS, IN ANY ACTION TO ENFORCE THE
PROVISIONS OF ARTICLE EIGHT OF THE LABOR LAW WITH REFERENCE TO SUCH
CONTRACT, SHALL DEEM SUCH CLAUSE TO BE INCORPORATED IN SUCH CONTRACT.
S 2. This act shall take effect immediately.