S T A T E O F N E W Y O R K
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5754
2011-2012 Regular Sessions
I N S E N A T E
June 14, 2011
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Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the education law, in relation to claims resulting from
late filing of final cost reports by school districts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 5 of section 3604 of the education law is
amended by adding a new paragraph b-1 to read as follows:
B-1. CLAIMS RESULTING FROM LATE FILING OF FINAL COST REPORTS. ANY
PAYMENT WHICH WOULD BE DUE PURSUANT TO SUBDIVISION SIX, SIX-A, SIX-B,
SIX-C, SIX-E OR SIX-F OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART
SHALL NOT BE BARRED DUE TO A MINISTERIAL FAILURE ON THE PART OF A SCHOOL
DISTRICT IN FILING THE FINAL COST REPORT, PROVIDED THAT, COMMENCING JULY
FIRST, TWO THOUSAND ELEVEN, WHERE SUCH FINAL COST REPORT HAS NOT BEEN
FILED WITH THE COMMISSIONER WITHIN ONE YEAR AFTER JUNE THIRTIETH OF THE
SCHOOL YEAR IN WHICH SUCH FINAL COST REPORT MUST HAVE BEEN SUBMITTED TO
THE COMMISSIONER, THE GAP ELIMINATION ADJUSTMENT COMPUTED PURSUANT TO
SUBDIVISION SEVENTEEN OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART FOR
SUCH DISTRICT FOR THE SUCCEEDING SCHOOL YEAR SHALL BE INCREASED BY AN
AMOUNT EQUAL TO TEN PERCENT OF THE PRODUCT OF THE APPROVED COST FOR SUCH
PROJECT MULTIPLIED BY THE BUILDING AID RATIO SELECTED PURSUANT TO PARA-
GRAPH C OF SUBDIVISION SIX OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
PART.
S 2. Paragraph a of subdivision 17 of section 3602 of the education
law, as added by section 37 of part A of chapter 58 of the laws of 2011,
is amended to read as follows:
a. Notwithstanding any other provision of law to the contrary, the
commissioner shall reduce payments due to each district for the two
thousand eleven--two thousand twelve school year and thereafter pursuant
to section thirty-six hundred nine-a of this [article] PART by an amount
equal to the SUM OF THE gap elimination adjustment computed for such
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13144-01-1
S. 5754 2
district PURSUANT TO PARAGRAPHS B AND C OF THIS SUBDIVISION PLUS ANY
PENALTY TO BE ADDED PURSUANT TO PARAGRAPH B-1 OF SUBDIVISION FIVE OF
SECTION THIRTY-SIX HUNDRED FOUR OF THIS PART, and such amount shall be
deducted from moneys apportioned for the purposes of payments made
pursuant to [such] section thirty-six hundred nine-a OF THIS PART 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 section thir-
ty-six hundred nine-a OF THIS PART for the following 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.
S 3. This act shall take effect July 1, 2011; provided that if section
37 of part A of chapter 58 of the laws of 2011 shall not have taken
effect on such date, then section two of this act shall take effect on
the same date and in the same manner as such chapter of the laws of 2011
takes effect.