senate Bill S5821

2011-2012 Legislative Session

Relates to assumed amortization for certain school district projects approved by the commissioner

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to education
returned to senate
died in assembly
Jun 21, 2011 referred to education
delivered to assembly
passed senate
ordered to third reading cal.1447
Jun 17, 2011 referred to rules

Votes

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S5821 - Bill Details

Current Committee:
Law Section:
Education Law
Laws Affected:
Amd ยง3602, Ed L

S5821 - Bill Texts

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Relates to assumed amortization for certain school district projects approved by the commissioner.

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BILL NUMBER:S5821

TITLE OF BILL:
An act
to amend the education law, in relation to assumed amortization for
certain school district projects approved by the commissioner

PURPOSE OR GENERAL IDEA OF BILL:
This bill changes the current penalty for the failure of school
district to file final cost reports. Under current law when a
district fails to file a final cost report the entire amount of aid on
the project is recovered. This bill would change that practice so
when a district fails to file the report aid will not be allocated to
the district until such report is filed.
Districts may obtain a waiver from the State education department for
larger projects that take multiple years.

SUMMARY OF PROVISIONS:
Section 1. Alters the statutory penalty for when a district fails to
file a final cost report.

JUSTIFICATION:
Current law reduces aid to districts for failure to file a final cost
report which can have a significant negative impact on school
district budgets.
This bill withholds aid but does not reduce it until a district files
its final cost report.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
Immediately.

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

                                  5821

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 17, 2011
                               ___________

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  assumed  amortization
  for certain school district projects approved by the commissioner

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

  Section 1.  Clause (b) of subparagraph 3 of paragraph e of subdivision
6 of section 3602 of the education law, as amended by section 1 of  part
F of chapter 383 of the laws of 2001, is amended to read as follows:
  (b)  Such  assumed  amortization for a project approved by the commis-
sioner on or after the later of the first day of December, two  thousand
one or thirty days after the date upon which this subdivision shall have
become  a law AND PRIOR TO THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN or
for any debt service related to projects approved  by  the  commissioner
prior  to such date where a bond, capital note or bond anticipation note
is first issued [on or after such date] THE FIRST DAY OF  DECEMBER,  TWO
THOUSAND  ONE to fund such projects, shall commence: (i) eighteen months
after such approval or (ii) on the date of receipt by  the  commissioner
of  a certification by the district that a general construction contract
has been awarded for such project by the district, whichever  is  later,
and SUCH ASSUMED AMORTIZATION FOR A PROJECT APPROVED BY THE COMMISSIONER
ON  OR  AFTER THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN SHALL COMMENCE:
(III) EIGHTEEN MONTHS AFTER SUCH APPROVAL OR (IV) ON THE DATE OF RECEIPT
BY THE  COMMISSIONER  OF  BOTH  THE  FINAL  CERTIFICATE  OF  SUBSTANTIAL
COMPLETION  OF  THE  PROJECT ISSUED BY THE ARCHITECT OR ENGINEER AND THE
FINAL COST REPORT FOR SUCH PROJECT, WHICHEVER IS LATER OR (V)  UPON  THE
DATE  OF  A FINDING BY THE COMMISSIONER THAT THE CERTIFICATE OF SUBSTAN-
TIAL COMPLETION OF THE PROJECT HAS BEEN ISSUED BY THE ARCHITECT OR ENGI-
NEER, BUT THE DISTRICT IS UNABLE  TO  COMPLETE  THE  FINAL  COST  REPORT
BECAUSE  OF  CIRCUMSTANCES  BEYOND  THE  CONTROL  OF  THE DISTRICT. SUCH
ASSUMED AMORTIZATION shall provide  for  equal  semiannual  payments  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13198-01-1

S. 5821                             2

principal and interest based on an interest rate established pursuant to
subparagraph five of this paragraph for such purpose for the school year
during  which  such  certification is received. The first installment of
obligations  issued  by  the school district in support of such projects
may mature not later than the dates  established  pursuant  to  sections
21.00 and 22.10 of the local finance law.
  S 2. This act shall take effect immediately.

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