S. 8135 2
PART A
Section 1. Section 34 of chapter 91 of the laws of 2002 amending the
education law and other laws relating to reorganization of the New York
city school construction authority, board of education and community
boards, as amended by section 1 of subpart D of part B of chapter 20 of
the laws of 2015, is amended to read as follows:
S 34. This act shall take effect July 1, 2002; provided, that sections
one through twenty, twenty-four, and twenty-six through thirty of this
act shall expire and be deemed repealed [June 30, 2016] JUNE 30, 2019;
provided, further, that notwithstanding any provision of article 5 of
the general construction law, on [June 30, 2016] JUNE 30, 2019 the
provisions of subdivisions 3, 5, and 8, paragraph b of subdivision 13,
subdivision 14, paragraphs b, d, and e of subdivision 15, and subdivi-
sions 17 and 21 of section 2554 of the education law as repealed by
section three of this act, subdivision 1 of section 2590-b of the educa-
tion law as repealed by section six of this act, paragraph (a) of subdi-
vision 2 of section 2590-b of the education law as repealed by section
seven of this act, section 2590-c of the education law as repealed by
section eight of this act, paragraph c of subdivision 2 of section
2590-d of the education law as repealed by section twenty-six of this
act, subdivision 1 of section 2590-e of the education law as repealed by
section twenty-seven of this act, subdivision 28 of section 2590-h of
the education law as repealed by section twenty-eight of this act,
subdivision 30 of section 2590-h of the education law as repealed by
section twenty-nine of this act, subdivision 30-a of section 2590-h of
the education law as repealed by section thirty of this act shall be
revived and be read as such provisions existed in law on the date imme-
diately preceding the effective date of this act; provided, however,
that sections seven and eight of this act shall take effect on November
30, 2003; provided further that the amendments to subdivision 25 of
section 2554 of the education law made by section two of this act shall
be subject to the expiration and reversion of such subdivision pursuant
to section 12 of chapter 147 of the laws of 2001, as amended, when upon
such date the provisions of section four of this act shall take effect.
S 2. Subdivision 12 of section 17 of chapter 345 of the laws of 2009
amending the education law and other laws relating to the New York city
board of education, chancellor, community councils and community super-
intendents, as amended by section 2 of subpart D of part B of chapter 20
of the laws of 2015, is amended to read as follows:
12. any provision in sections one, two, three, four, five, six, seven,
eight, nine, ten and eleven of this act not otherwise set to expire
pursuant to section 34 of chapter 91 of the laws of 2002, as amended, or
section 17 of chapter 123 of the laws of 2003, as amended, shall expire
and be deemed repealed [June 30, 2016] JUNE 30, 2019.
S 3. Paragraph (a) of subdivision 1 of section 2590-b of the education
law, as amended by chapter 345 of the laws of 2009, is amended to read
as follows:
(a) The board of education of the city school district of the city of
New York is hereby continued. Such board of education shall consist of
thirteen appointed members: one member to be appointed by each borough
president of the city of New York; and eight members to be appointed by
the mayor of the city of New York. The chancellor shall serve as an
ex-officio non-voting member of the city board. The city board shall
elect its own chairperson from among its voting members. All thirteen
appointed members shall serve at the pleasure of the appointing authori-
S. 8135 3
ty and shall not be employed in any capacity by the city of New York, or
a subdivision thereof, or the city board. No appointed member of the
city board shall also be a member, officer, or employee of any public
corporation, authority, or commission where the mayor of the city of New
York has a majority of the appointments. ANY LOBBYIST OR CLIENT OF A
LOBBYIST, REGISTERED WITH THE NEW YORK CITY CLERK, SHALL NOT BE ELIGIBLE
TO SERVE AS AN APPOINTED MEMBER FOR A PERIOD OF TWO YEARS FROM THE LAST
ENGAGEMENT OF LOBBYING OR LOBBYING ACTIVITIES, AS SUCH TERMS ARE DEFINED
BY SUBDIVISION (C) OF SECTION 3-211 OF THE ADMINISTRATIVE CODE OF THE
CITY OF NEW YORK. Each borough president's appointee shall be a resident
of the borough for which the borough president appointing him or her was
elected and shall be the parent of a child attending a public school
within the city school district of the city of New York. Each mayoral
appointee shall be a resident of the city and two shall be parents of a
child attending a public school within the city district. All parent
members shall be eligible to continue to serve on the city board for two
years following the conclusion of their child's attendance at a public
school within the city district. Any vacancy shall be filled by appoint-
ment by the appropriate appointing authority within ninety days of such
vacancy. Notwithstanding any provision of local law, the members of the
board shall not have staff, offices, or vehicles assigned to them or
receive compensation for their services, but shall be reimbursed for the
actual and necessary expenses incurred by them in the performance of
their duties.
S 4. Section 2590-g of the education law is amended by adding a new
subdivision 12-a to read as follows:
12-A. PROVIDE INFORMATION, DATA, ESTIMATES AND STATISTICS REGARDING
ALL MATTERS RELATING TO THE CITY DISTRICT, AS REQUESTED BY MEMBERS AND
OFFICERS OF THE SENATE, ASSEMBLY, AND GOVERNOR'S OFFICE, IN A TIMELY
FASHION. SUCH INFORMATION SHALL BE MAINTAINED AND UPDATED IN A TIMELY
FASHION AND SHALL AT A MINIMUM INCLUDE DATA RELATING TO: (A) NEW YORK
CITY DEPARTMENT OF EDUCATION SCHOOL CHARACTERISTICS INCLUDING GRADES
SERVED, NUMBER OF TEACHERS, STUDENT ENROLLMENT, SCHOOL TYPE, SCHOOL
CHARACTERISTICS, QUALITY REVIEW SCORES, GRADUATION RATES AND AVERAGE
CLASS SIZE; (B) NEW YORK CITY DEPARTMENT OF EDUCATION PRINCIPAL CHARAC-
TERISTICS INCLUDING CURRENT EMPLOYMENT STATUS, EDUCATION LEVEL, YEARS OF
EXPERIENCE AND TENURE STATUS; (C) NEW YORK CITY DEPARTMENT OF EDUCATION
TEACHER CHARACTERISTICS INCLUDING CURRENT EMPLOYMENT STATUS, EDUCATION
LEVEL, YEARS OF TEACHING EXPERIENCE, TENURE STATUS, SUBJECT AREA TAUGHT,
NUMBER OF STUDENTS TAUGHT, NUMBER OF CLASSES TAUGHT PER DAY AND ATTRI-
TION RATE; (D) NEW YORK CITY DEPARTMENT OF EDUCATION STUDENT CHARACTER-
ISTICS INCLUDING GRADE LEVEL, SCHOOL ATTENDANCE, AND OTHER DEMOGRAPHICS;
(E) GIFTED AND TALENTED PROGRAMS APPLICATION DATA INCLUDING ADMISSION
DECISIONS, STUDENT DEMOGRAPHICS AND STUDENT TEST SCORES; (F) PRE-KINDER-
GARTEN PROGRAMS INCLUDING PROGRAM LOCATIONS, CAPACITY, STUDENT ENROLL-
MENT, NUMBER OF TEACHERS, TEACHER CHARACTERISTICS, STUDENT ATTENDANCE,
STUDENT DEMOGRAPHICS AND EFFECTIVENESS DATA; (G) FUNDING FOR NEW YORK
CITY DEPARTMENT OF EDUCATION SCHOOLS INCLUDING DEPARTMENT FUNDING BY
DOLLARS, EXPENDITURES BY CATEGORY AND EXTERNAL FUNDING IN DOLLARS; (H)
FUNDING FOR NEW YORK CITY DEPARTMENT OF EDUCATION PROGRAMS INCLUDING
DEPARTMENT FUNDING IN DOLLARS, AND EXTERNAL FUNDING IN DOLLARS; AND (I)
GENERAL NEW YORK CITY DEPARTMENT OF EDUCATION BUDGET. PROVIDED, HOWEV-
ER, THAT ALL INQUIRIES MADE IN ACCORDANCE WITH THIS SUBDIVISION SHALL
COMPLY WITH APPLICABLE STATE AND FEDERAL PRIVACY LAWS.
S 5. Subdivision 2 of section 2590-p of the education law is amended
by adding a new paragraph i to read as follows:
S. 8135 4
I. OVERCROWDING AND UNDERUTILIZATION. THE PLAN SHALL IDENTIFY THE TEN
MOST OVERCROWDED AND THE TEN MOST UNDERUTILIZED SCHOOL BUILDINGS AND
SHALL DETAIL STEPS TO BE TAKEN TO ADDRESS SUCH ISSUES.
S 6. Section 2590-q of the education law is amended by adding a new
subdivision 19 to read as follows:
19. WITH RESPECT TO SPECIAL, FEDERAL, STATE, AND PRIVATE FUNDS, THE
CHANCELLOR SHALL REPORT THE DISTRIBUTION OF SUCH FUNDS BY INDIVIDUAL
SCHOOL, AND ON A PER PUPIL BASIS FOR EACH INDIVIDUAL SCHOOL TO THE
GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY,
AND SPEAKER OF THE CITY COUNCIL ON OR BEFORE MAY FIRST OF EACH YEAR.
S 7. The opening paragraph of section 2590-r of the education law, as
amended by chapter 345 of the laws of 2009, is amended to read as
follows:
The chancellor shall, in consultation with the city board and communi-
ty district superintendents, establish in regulations a comprehensive
process of school-based budgeting and expenditure reporting no later
than November first, nineteen hundred ninety-eight. ANY REPORT PREPARED
IN ACCORDANCE WITH THIS SECTION SHALL BE PUBLICLY AVAILABLE ON THE
WEBSITE OF THE NEW YORK CITY DEPARTMENT OF EDUCATION. Notwithstanding
any provision of section twenty-five hundred ninety-q of this article to
the contrary, such regulations shall include provisions for:
S 8. Subparagraph 2 of paragraph (b) of subdivision 6 of section
2590-c of the education law, as amended by chapter 103 of the laws of
2014, is amended to read as follows:
(2) If such vacancy results in the council not having at least one
member who is a parent of a student who is an English language learner
or who has been an English language learner within the preceding two
years, or results in the council not having at least one member who is a
parent of a student with an individualized education program, the
[community council] BOROUGH PRESIDENT shall select a parent having such
qualifications to fill the vacancy.
S 9. Paragraph (c) of subdivision 6 of section 2590-c of the education
law, as amended by chapter 345 of the laws of 2009, is amended to read
as follows:
(c) If the vacancy is not filled by the community council within sixty
days after it is declared due to a tie vote for such appointment, the
[chancellor] BOROUGH PRESIDENT shall vote with the community council, to
break such tie vote. If the community council has failed to fill the
vacancy within sixty days after it is declared because of any other
reason, the chancellor shall order the community council to do so pursu-
ant to section twenty-five hundred [ninety-1] NINETY-L of this article.
S 10. Subdivisions 8 and 14 of section 2590-e of the education law,
subdivision 8 as amended and subdivision 14 as added by chapter 123 of
the laws of 2003, are amended and two new subdivisions 22 and 23 are
added to read as follows:
8. Each year prepare a school district report card pursuant to regu-
lations of the commissioner, and shall make it publicly available by
transmitting it to local newspapers of general circulation, appending it
to copies of the proposed budget made publicly available as required by
law, making it available for distribution at the annual meeting, SUBMIT
IT TO THE COMMUNITY BOARD WHICH SHALL PRESENT SUCH REPORT CARD AT ITS
NEXT SCHEDULED MEETING, and otherwise disseminating it as required by
the commissioner. Such report card shall include measures of the academ-
ic performance of the school district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the commissioner, the report
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card shall also compare these measures to statewide averages for all
public schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be included in
the annual report by the requests to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts (i) identi-
fied as having fifteen percent or more of their students in special
education, or (ii) which have fifty percent or more of their students
with disabilities in special education programs or services sixty
percent or more of the school day in a general education building, or
(iii) which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate educa-
tional settings shall indicate on their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
14. Hold public meetings at least every month with the superintendent
during which the public may speak so that parents and the community have
a voice and a public forum to air their concerns. DURING TWO OF THESE
PUBLIC MEETINGS ANNUALLY, THE COMMUNITY DISTRICT COUNCIL MEMBER
APPOINTED TO A COMMUNITY BOARD ON EITHER A YOUTH AND EDUCATION COMMITTEE
OR A COMMITTEE THAT FOCUSES ON SUCH ISSUES PURSUANT TO SUBDIVISION TWEN-
TY-TWO OF THIS SECTION, SHALL PROVIDE UPDATES AS REQUIRED BY SUCH SUBDI-
VISION. ONE OF THE TWO REQUIRED MEETINGS SHALL BE THE DISTRIBUTION OF
COMMUNITY COUNCIL'S REQUIRED REPORT CARD PURSUANT TO SUBDIVISION EIGHT
OF THIS SECTION.
22. APPOINT ONE OF ITS MEMBERS, BY MAJORITY VOTE, TO ITS RESPECTIVE
COMMUNITY BOARD ON EITHER YOUTH AND EDUCATION COMMITTEES OR A COMMITTEE
THAT FOCUSES ON SIMILAR ISSUES. SUCH MEMBER SHALL SERVE AS A LIAISON
BETWEEN THE TWO ENTITIES AND SHALL BE RESPONSIBLE FOR PROVIDING MONTHLY
COMMUNITY COUNCIL UPDATES AT COMMUNITY BOARD COMMITTEE MEETINGS AS WELL
AS GATHER INPUT ON RELEVANT COMMUNITY COUNCIL AND CITY BOARD ISSUES.
SUCH MEMBER SHALL ALSO BE RESPONSIBLE FOR PROVIDING SEMI-ANNUAL UPDATES
TO THEIR RESPECTIVE COMMUNITY BOARD REGARDING ANY PROPOSED OR APPROVED
SIGNIFICANT CHANGES TO THE SCHOOLS IN THEIR COMMUNITY SCHOOL DISTRICTS.
23. COORDINATE WITH THE COMMUNITY BOARD OR BOARDS, ESTABLISHED BY
SECTION TWO THOUSAND EIGHT HUNDRED OF THE NEW YORK CITY CHARTER, WHOSE
BOUNDARIES OVERLAP TO THOSE OF THE COMMUNITY DISTRICT. THIS COORDINATION
ON THE PART OF THE COMMUNITY BOARDS SHALL INCLUDE, BUT SHALL NOT BE
LIMITED TO, MAKING SPACE AVAILABLE FOR MONTHLY MEETINGS, HELPING TO
PUBLICIZE MEETINGS OF THE COMMUNITY EDUCATION COUNCIL, ALLOWING COMMUNI-
TY BOARD STAFF TO PROVIDE CLERICAL AND ADMINISTRATIVE SUPPORT TO THE
MEMBERS OF THE COMMUNITY EDUCATION COUNCIL, RECEIVING REPORTS FROM THE
COMMUNITY EDUCATION COUNCIL INCLUDING AN ANNUAL REPORT CARD ON THE
CONDITION OF SCHOOLS IN THE COMMUNITY DISTRICT AND ANY PROPOSED OR PEND-
ING CHANGES IN EDUCATION POLICY, AND HELPING DISSEMINATE INFORMATION ON
EDUCATION ISSUES PREPARED BY THE COMMUNITY EDUCATION COUNCIL TO PARENTS
AND OTHER COMMUNITY ORGANIZATIONS AND MEMBERS.
S 11. Paragraph (v) of subdivision 1 of section 2590-f of the educa-
tion law, as added by chapter 345 of the laws of 2009, is amended and
three new paragraphs (x), (y) and (z) are added to read as follows:
(v) to hold at least two public forums within the district, during
each school year, for the purpose of reporting on the district's
performance, including progress made toward achieving the district
comprehensive educational plan goals, discussing plans for improvement,
S. 8135 6
and receiving parental and community comments and concerns; the communi-
ty superintendent shall ensure that notice for the public forums is
posted in a manner to maximize the participation of parents, students
and school personnel and is specifically circulated to members of the
school based management teams, community district education council and
the [relevant] community [boards] BOARD.
(X) TO PROVIDE COMMUNITY COUNCILS THE NECESSARY STAFF AND FINANCIAL
RESOURCES NEEDED TO PREPARE THE DISTRICT REPORT CARD PURSUANT TO SUBDI-
VISION EIGHT OF SECTION TWENTY-FIVE HUNDRED NINETY-E OF THIS ARTICLE.
SUCH RESOURCES SHALL INCLUDE BUT SHALL NOT BE LIMITED TO (I) INDIVIDUAL
SCHOOL AND COMMUNITY DISTRICT DATA AND ANALYSIS TO COMPLETE SUCH REPORT
AT LEAST FORTY-FIVE DAYS PRIOR TO THE DEADLINE FOR SUCH REPORT; (II) A
STANDARDIZED TEMPLATE AND OUTLINE TO ASSIST COMMUNITY COUNCILS DETERMIN-
ING THE CONTENT NECESSARY TO INCLUDE IN SUCH REPORT; AND (III) TIMELINE
CONSULTATION AS WELL AS TECHNICAL SUPPORT WITH THE COMMUNITY COUNCILS
FOR ON-TIME COMPLETION.
(Y) TO PUBLISH AND PUBLICIZE COMMUNITY COUNCIL REPORT CARDS, REQUIRED
BY SUBDIVISION EIGHT OF SECTION TWENTY-FIVE HUNDRED NINETY-E OF THIS
TITLE, PUBLICLY AVAILABLE ON THE CITY BOARD'S WEBSITE, LOCAL NEWS
OUTLETS AS WELL AS TO LOCAL ELECTED OFFICIAL AND COMMUNITY LEADER
OFFICES.
(Z) TO PROVIDE A WRITTEN RESPONSE WITHIN THIRTY DAYS OF PRODUCTION AND
DISTRIBUTION OF THE COMMUNITY COUNCIL'S REPORT CARD INDICATING ITS
RECEIPT AND SUBSEQUENT PLAN FOR ITS SCHOOL. SUCH RESPONSE SHALL BE MADE
PUBLICLY AVAILABLE NO LATER THAN THIRTY DAYS AFTER ITS SUBMISSION TO
SUCH COMMUNITY COUNCIL.
S 12. Paragraphs (d) and (d-1) of subdivision 2-a of section 2590-h of
the education law, as added by chapter 345 of the laws of 2009, are
amended to read as follows:
(d) No sooner than thirty days, but no later than forty-five days
following the filing of the educational impact statement, the chancellor
or deputy chancellor, or in the case of a proposed significant change in
school utilization the chancellor or his or her designee, shall hold a
joint public hearing with the impacted community council and school
based management team, at the school that is subject to the proposed
school closing or significant change in school utilization, and shall
allow PARENTS, COMMUNITY MEMBERS AND all OTHER interested parties an
opportunity to present comments or concerns regarding the proposed
school closing or significant change in school utilization. The chancel-
lor shall ensure that notice of such hearing is widely and conspicuously
posted in such a manner to maximize the number of affected individuals
that receive notice, including providing notice to affected parents and
students, and shall also notify members of the community boards and the
elected state and local officials who represent the affected community
district.
(d-1) So long as the revised proposal does not impact any school other
than a school that was identified in the initial educational impact
statement, the chancellor, after receiving public input, may substan-
tially revise the proposed school closing or significant change in
school utilization provided that the chancellor shall prepare a revised
educational impact statement, in the form prescribed in paragraph (b) of
this subdivision, and publish and file such educational impact statement
in the same manner as prescribed in paragraph (c) of this subdivision.
No sooner than fifteen days following the filing of such revised educa-
tional impact statement, the chancellor or deputy chancellor, or in the
case of a significant change in school utilization the chancellor or his
S. 8135 7
or her designee, shall hold a joint public hearing with the impacted
community council and school based management team, at the school that
is subject to the proposed school closing or significant change in
school utilization and shall allow PARENTS, COMMUNITY MEMBERS AND all
OTHER interested parties an opportunity to present comments and concerns
regarding such proposal. The chancellor shall ensure that notice of
such hearing is widely and conspicuously posted in such a manner to
maximize the number of affected individuals that receive notice, includ-
ing providing notice to affected parents and students, and shall also
notify members of the community boards and the elected state and local
officials who represent the affected community district.
S 13. This act shall take effect immediately, provided that:
1. the amendments to section 2590-b of the education law made by
section three of this act shall not affect the expiration of such
section and shall be deemed to expire therewith;
2. the amendments to section 2590-g of the education law made by
section four of this act shall not affect the expiration of such section
and shall be deemed to expire therewith;
3. the amendments to section 2590-q of the education law made by
section six of this act shall not affect the expiration of such section
and shall be deemed to expire therewith;
4. the amendments to section 2590-r of the education law made by
section seven of this act shall not affect the expiration of such
section and shall be deemed to expire therewith;
5. sections eight, nine, ten and eleven of this act shall take effect
on the one hundred twentieth day after this act shall have become a law;
6. the amendments to section 2590-c of the education law, made by
sections eight and nine of this act, shall not affect the repeal of such
section and shall be deemed repealed therewith;
7. the amendments to section 2590-e of the education law, made by
section ten of this act, shall not affect the expiration and repeal of
such section and shall expire and be deemed repealed therewith;
8. the amendments to section 2590-f of the education law, made by
section eleven of this act, shall not affect the expiration and rever-
sion of such section and shall expire and be deemed repealed therewith;
and
9. the amendments to section 2590-h of the education law, made by
section twelve of this act, shall not affect the expiration and rever-
sion of such section and shall expire and be deemed repealed therewith.
PART B
Section 1. Paragraph (a-1) of subdivision 3 of section 2854 of the
education law, as amended by section 1 of subpart A of part B of chapter
20 of the laws of 2015, is amended to read as follows:
(a-1) The board of trustees of a charter school shall employ and
contract with necessary teachers, administrators and other school
personnel. Such teachers shall be certified in accordance with the
requirements applicable to other public schools; provided, however, that
TEACHERS EMPLOYED BY A PUBLIC CHARTER SCHOOL WITH A TEACHER TRAINING
PROGRAM WILL HAVE THREE YEARS FROM THEIR EMPLOYMENT START DATE BEFORE
THEY MUST SATISFY CERTIFICATION REQUIREMENTS; AND, a charter school may
employ as teachers (i) uncertified teachers with at least three years of
elementary, middle or secondary classroom teaching experience; (ii)
tenured or tenure track college faculty; (iii) individuals with two
years of satisfactory experience through the Teach for America program;
S. 8135 8
and (iv) individuals who possess exceptional business, professional,
artistic, athletic, or military experience, provided, however, that such
teachers described in clauses (i), (ii), (iii), and (iv) of this para-
graph shall not in total comprise more than the sum of: (A) thirty per
centum of the teaching staff of a charter school, or five teachers,
whichever is less; plus (B) five teachers of mathematics, science,
computer science, technology, or career and technical education; plus
(C) five additional teachers. A teacher certified or otherwise approved
by the commissioner shall not be included in the numerical limits estab-
lished by the preceding sentence.
S 2. This act shall take effect immediately.
PART C
Section 1. Short title. This act shall be known and may be cited as
the "education investment incentives act".
S 2. The tax law is amended by adding a new section 43 to read as
follows:
S 43. EDUCATION INVESTMENT TAX CREDIT. (A) DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME DEFI-
NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
"AUTHORIZED CONTRIBUTION";
"CONTRIBUTION";
"EDUCATIONAL PROGRAM";
"EDUCATIONAL SCHOLARSHIP ORGANIZATION";
"ELIGIBLE PUPIL";
"LOCAL EDUCATION FUND";
"NONPUBLIC SCHOOL";
"PUBLIC EDUCATION ENTITY";
"PUBLIC SCHOOL";
"QUALIFIED CONTRIBUTION";
"QUALIFIED EDUCATOR";
"QUALIFIED SCHOOL";
"SCHOLARSHIP"; AND
"SCHOOL IMPROVEMENT ORGANIZATION".
(B) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED CREDIT AGAINST
SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE
TAXABLE YEAR.
(C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT
OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT ONE MILLION
DOLLARS. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A
LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPORATION SHALL BE
ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH A
TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE.
(D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. THE COMMIS-
SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO
THIS SECTION. SUCH RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.
ADDITIONALLY, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S
WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS APPROVED TO ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
S. 8135 9
LAW. THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
LIST OF PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE
APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH
THE DATE OF REVOCATION.
(E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, THE TAXPAYER SHALL APPLY TO THE DEPARTMENT FOR A CONTRIBUTION
AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT
MAY ALLOW TAXPAYERS TO MAKE MULTIPLE APPLICATIONS ON THE SAME FORM,
PROVIDED THAT EACH CONTRIBUTION LISTED ON SUCH APPLICATION SHALL BE
TREATED AS A SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA-
TION.
(F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF
JANUARY AND ENDS ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES.
COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
WHICH APPLICATIONS HAVE BEEN RECEIVED DURING PHASE ONE EXCEEDS THE
AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN PHASE
ONE OF THE CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN
STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
TOTAL NUMBER OF APPLICATIONS FOR CONTRIBUTIONS, ROUNDED DOWN TO THE
NEAREST CENT. EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN
OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING AN
AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
ITS IN STEP TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN
EACH APPLICATION SHALL RECEIVE THE ALLOCATION AMOUNT FROM STEP ONE,
OTHERWISE EACH APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF
THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA SHARE OF
AGGREGATE EXCESS DISTRIBUTIONS BASED ON THE DIFFERENCE BETWEEN THE
AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN STEP
ONE. FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE
SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP IS
NOT EXCEEDED, PHASE TWO COMMENCES ON FEBRUARY TWENTIETH AND ENDS ON
OCTOBER THIRTY-FIRST. DURING PHASE TWO THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST SERVE
BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLI-
CATION FOR SUCH CERTIFICATE. CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE
DAYS OF RECEIPT OF SUCH APPLICATIONS.
2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER THIRTY-
S. 8135 10
FIRST OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE
WAS ISSUED, (III) THE AMOUNT OF AUTHORIZED CONTRIBUTION, (IV) THE
CERTIFICATE NUMBER, (V) THE TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME
AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO
WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY
OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
3. NOTIFICATION OF THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE. UPON THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC EDUCATION
ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION OF THE ISSUANCE OF SUCH CONTRIBUTION
AUTHORIZATION CERTIFICATE. SUCH NOTIFICATION SHALL INCLUDE (I) THE
TAXPAYER'S NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED,
(III) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE
NOTIFICATION MUST BE MADE BY THE TAXPAYER, (IV) THE AMOUNT OF THE
AUTHORIZED CONTRIBUTION, (V) THE CONTRIBUTION AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER, AND (VI) ANY OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
(G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR ANY
CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION HAS BEEN APPROVED TO ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF
RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR
EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS RECEIVED NOTICE FROM THE
DEPARTMENT THAT THE DEPARTMENT ISSUED A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER NO LATER
THAN THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
MADE, SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO
THE TAXPAYER A CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON
THE TAXPAYER'S CONTRIBUTION AUTHORIZATION CERTIFICATE, THE TAXPAYER
SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT SHALL
STATE (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION, (II) THE TAXPAYER'S NAME AND ADDRESS, (III)
THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF RECEIPT NUMBER AND
(VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT. UPON THE ISSUANCE OF A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
S. 8135 11
TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH
NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS SECTION REGARDING THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION
DATE FOR SUCH AUTHORIZED CONTRIBUTION, PROVIDE NOTIFICATION TO THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
PROGRAM, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
TO COMPLY WITH THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM
THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED
FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE SET
FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
NOTIFY THE BOARD OF REGENTS AND THE COMMISSIONER OF EDUCATION THAT SUCH
ENTITY, PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
(H) CREDIT CAP. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO THOUSAND SEVENTEEN SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
CALENDAR YEAR TWO THOUSAND EIGHTEEN, THE MAXIMUM PERMITTED CREDITS UNDER
THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION. FOR CALENDAR YEAR TWO
THOUSAND NINETEEN AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMIT-
TED CREDITS AVAILABLE TO ALL TAXPAYERS SHALL BE THREE HUNDRED MILLION
DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSU-
ANT TO SUBDIVISION (I) OF THIS SECTION. THE MAXIMUM PERMITTED CREDITS
UNDER THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLOCATED FIFTY
PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT TO EDUCATIONAL SCHOLARSHIP
ORGANIZATIONS.
(I) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY
AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED TO THE CAP PRESCRIBED IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
(J) REGULATIONS. THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMEN-
TATION OF THIS SECTION.
(K) WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALEN-
DAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE
COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
S. 8135 12
ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION INVEST-
MENT TAX CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES
NINE-A AND TWENTY-TWO, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLI-
CATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIB-
UTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS, AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY OF (A) THE APPLICATIONS FOR CONTRIBUTION
AUTHORIZATION CERTIFICATES, DISTRIBUTION BY COUNTY OF (B) THE PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER OF ELIGIBLE PUPILS
THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY
ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOLARSHIPS, AND THE AVERAGE VALUE
OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND
DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE BOARD OF REGENTS, THE
COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE STATE EDUCA-
TION DEPARTMENT, SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR
APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE
PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE CERTIFICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN OR
DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE EDUCATION
DEPARTMENT OR BOARD OF REGENTS.
(L) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 49;
2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
S 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
(22) THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH A CREDIT IS
CLAIMED PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B
OF THIS ARTICLE.
S 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. EDUCATION INVESTMENT TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
SECTION FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF
THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED
CONTRIBUTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
S. 8135 13
(XLIII) EDUCATION INVESTMENT AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (CCC) FORTY-NINE OF SECTION TWO HUNDRED
TEN-B
S 6. Section 606 of the tax law is amended by adding two new
subsections (w) and (w-1) to read as follows:
(W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
THE PURCHASE OF INSTRUCTIONAL MATERIALS APPROVED BY THE EDUCATION
DEPARTMENT OR BOARD OF REGENTS FOR USE IN NON-PUBLIC HOME-BASED EDUCA-
TIONAL PROGRAMS; PROVIDED, THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT
EXCEED THE LESSER OF TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
(2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
(3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(W-1) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, A
TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE TAXPAYER IS A
TEACHER OR INSTRUCTOR IN A QUALIFIED SCHOOL, AS DEFINED IN SECTION
FORTY-THREE OF THIS CHAPTER, FOR AT LEAST NINE HUNDRED HOURS DURING A
SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
CLASSROOM IN ANY QUALIFIED SCHOOL.
(2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
(3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 7. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) EDUCATION INVESTMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
S 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
(9) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR
WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX
HUNDRED SIX OF THIS ARTICLE.
S 9. The education law is amended by adding a new article 25 to read
as follows:
S. 8135 14
ARTICLE 25
EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
1210. DEFINITIONS.
1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF
RECEIPT.
1213. APPLICATION APPROVAL.
1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
1215. RECORDKEEPING.
1216. JOINT ANNUAL REPORT.
1217. COMMISSIONER; POWERS.
S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION INVESTMENT TAX CREDIT PROGRAM".
S 1210. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
2. "CONTRIBUTION" MEANS A DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING
THE TAX YEAR.
3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL
THAT ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS OR OTHER ACTIV-
ITIES OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE
NOT LIMITED TO, THE FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS
PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES;
LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B) INSTRUCTION OR PROGRAMMING TO
MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
TIES, INCLUDING TUTORING OR COUNSELING; OR (C) USE OF SPECIALIZED
INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.
4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B)
COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVENUE
FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
FIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA-
TION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
(B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY-
TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
DECEMBER FIRST OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER-
GARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL,
AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME
OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSE-
HOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE
INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF TWO,
NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
S. 8135 15
6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE PUBLIC
SCHOOL, OR PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
BEEN ESTABLISHED TO SUPPORT, AND (D) DEPOSITS AND HOLDS QUALIFIED
CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
7. "NONPUBLIC SCHOOL" MEANS ANY NOT-FOR-PROFIT PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL
LOCATED IN THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
INSTRUCTION AT ONE OR MORE LOCATIONS TO A STUDENT IN ACCORDANCE WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT
DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH
QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE
TAXPAYER AND FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF
RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION. A CONTRIBUTION DOES
NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
IFIED STUDENT.
11. "QUALIFIED EDUCATOR" MEANS AN INDIVIDUAL WHO IS A TEACHER OR
INSTRUCTOR IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
A SCHOOL YEAR.
12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A
TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL
IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS NOT A
RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT
EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D
OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
S. 8135 16
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-
UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN
THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING
CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR IN
CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS
AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (IV)
IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM,
PROJECT OR INITIATIVE IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
PUBLIC SCHOOL.
S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
AND PUBLIC SCHOOL DISTRICTS. ALL PUBLIC SCHOOLS AND PUBLIC SCHOOL
DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED,
THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF
EITHER (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE BOARD OF REGENTS HAS REVOKED
SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT
TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS AND LOCAL EDUCATION FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO
SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND RECEIVING APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
S 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE BOARD
OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE BOARD; PROVIDED THAT SUCH APPLICATION SHALL
INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;
(B) THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED BY
AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND A LIST OF NAMES AND
ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVE-
MENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP
ORGANIZATION; AND (C) AN EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL
PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS.
THE BOARD OF REGENTS, COMMISSIONER OR DEPARTMENT SHALL NOT REQUIRE ANY
OTHER INFORMATION FOR SUCH APPLICATION EXCEPT AS AUTHORIZED IN THIS
ARTICLE OR BY SECTION FORTY-THREE OF THE TAX LAW.
S 1213. APPLICATION APPROVAL. THE BOARD OF REGENTS SHALL REVIEW EACH
APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE NEXT SCHEDULED
MEETING OF THE BOARD OF REGENTS THAT FOLLOWS THE RECEIPT OF SUCH APPLI-
CATION, BUT NOT LATER THAN THE NEXT MEETING THEREAFTER.
S. 8135 17
S 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
BOARD OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND
FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING THAT SUCH ORGANIZATION, FUND, SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS ARTICLE OR SECTION FORTY-THREE OF THE TAX LAW. THESE
VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
(A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR SECTION
FORTY-THREE OF THE TAX LAW, (B) THE FAILURE TO MAINTAIN FULL AND
ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS,
(C) THE FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, DEPARTMENT
OF TAXATION AND FINANCE OR BOARD OF REGENTS WHEN REQUESTED BY THE
DEPARTMENT OR BOARD, OR (D) THE FAILURE TO PROVIDE NOTICE TO THE DEPART-
MENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NONISSUANCE OF CERTIF-
ICATES OF RECEIPT PURSUANT TO SECTION FORTY-THREE OF THE TAX LAW;
PROVIDED HOWEVER, THAT THE BOARD OF REGENTS SHALL NOT REVOKE APPROVAL
PURSUANT TO THIS SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS
THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT REVOCATION IS
WARRANTED; AND PROVIDED FURTHER THAT THE BOARD SHALL NOT REVOKE APPROVAL
PURSUANT TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO CLERICAL
ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN
FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE BOARD SHALL
PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLARSHIP ORGAN-
IZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC
SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF TAXATION AND
FINANCE.
S 1215. RECORDKEEPING. EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
PUBLIC SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
SHALL MAINTAIN RECORDS INCLUDING (A) NOTIFICATIONS RECEIVED FROM THE
DEPARTMENT OF TAXATION AND FINANCE, (B) NOTIFICATIONS MADE TO THE
DEPARTMENT OF TAXATION AND FINANCE, (C) COPIES OF QUALIFIED CONTRIB-
UTIONS RECEIVED, (D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL FINAN-
CIAL STATEMENTS, (G) IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND LOCAL EDUCATION FUNDS, THE
APPLICATION SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
ARTICLE AND THE APPROVAL ISSUED BY THE BOARD OF REGENTS, AND (H) ANY
OTHER INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMIS-
SIONER OR RULE PROMULGATED BY THE BOARD OF REGENTS.
S 1216. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMMISSIONER, JOINTLY, SHALL SUBMIT A WRITTEN REPORT AS PROVIDED IN
SUBDIVISION (K) OF SECTION FORTY-THREE OF THE TAX LAW.
S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN
EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS
SECTION. THE COMMISSIONER SHALL MAKE ANY APPLICATION REQUIRED TO BE
FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
OF THE EFFECTIVE DATE OF THIS ARTICLE.
S 10. The education law is amended by adding a new section 1503-a to
read as follows:
S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND DONATIONS. 1. ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF A GENERAL LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
S. 8135 18
2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE CONTRARY, THE RECEIPT OF SUCH GIFTS,
DONATIONS, CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
FROM, SHALL BE DISREGARDED FOR THE PURPOSES OF ALL APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
S 11. Severability. If any provision of this section or the applica-
tion thereof to any person or circumstances is held invalid, such inva-
lidity shall not affect other provisions or applications of the section
which can be given effect without the invalid provision or application,
and to this end the provisions of this section are declared to be sever-
able.
S 12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2016.
PART D
Section 1. Section 3012-d of the education law is amended by adding a
new subdivision 11-a to read as follows:
11-A. FOR DISTRICTS FOR WHICH ON SEPTEMBER FIRST, TWO THOUSAND
SIXTEEN, THERE IS NO APPROVED PLAN AND SUCH DISTRICTS LOSE AID PURSUANT
TO CHAPTER SIXTY-ONE OF THE LAWS OF TWO THOUSAND FIFTEEN AND CHAPTER
FIFTY-THREE OF THE LAWS OF TWO THOUSAND SIXTEEN, SUCH DISTRICTS SHALL BE
SUBJECT TO A SUPPLEMENTAL APPORTIONMENT OF AID, SUBJECT TO AN APPROPRI-
ATION, THAT IS EQUIVALENT TO THE LOSS IN AID DUE TO THE SCHOOL DISTRICTS
FAILURE TO HAVE AN APPROVED ANNUAL TEACHER AND PRINCIPAL EVALUATION PLAN
CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION, IF A PLAN IN COMPLI-
ANCE WITH THE REQUIREMENTS OF THIS SECTION IS APPROVED BY THE DEPARTMENT
BY DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN.
S 2. Section 1 of chapter 53 of the laws of 2016, enacting the aid to
localities budget, is amended by adding to such section the items under-
scored in this section.
EDUCATION DEPARTMENT
AID TO LOCALITIES 2016-2017
OFFICE OF PREKINDERGARTEN THROUGH GRADE TWELVE EDUCATION
PROGRAM
General Fund
Local Assistance Account - 10000
NOTWITHSTANDING ANY INCONSISTENT PROVISION
OF LAW, FOR SUPPLEMENTAL GENERAL SUPPORT
FOR PUBLIC SCHOOLS INCLUDING AID FOR SUCH
FISCAL YEARS PAYABLE PURSUANT TO SECTION
3609-D OF THE EDUCATION LAW, AS PROVIDED
HEREIN.
NOTWITHSTANDING ANY INCONSISTENT PROVISION
OF LAW, SCHOOL DISTRICTS THAT DO NOT HAVE
APPROVED AND FULLY IMPLEMENTED STANDARDS
AND PROCEDURES FOR CONDUCTING ANNUAL
TEACHER AND PRINCIPAL EVALUATIONS OF
TEACHERS AND PRINCIPALS IN ACCORDANCE WITH
THE REQUIREMENTS OF SECTION 3012-D OF THE
EDUCATION LAW AND THAT HAVE LOST AID
PURSUANT TO CHAPTER 61 OF THE LAWS OF 2015
AND CHAPTER 53 OF THE LAWS OF 2016 SHALL
S. 8135 19
RECEIVE A SUPPLEMENTAL APPORTIONMENT IN AN
AMOUNT THAT IS THE EQUIVALENT TO THE LOSS
IN AID DUE TO THE SCHOOL DISTRICTS FAILURE
TO HAVE AN APPROVED ANNUAL TEACHER AND
PRINCIPAL EVALUATION PLAN CONSISTENT WITH
THE REQUIREMENTS OF SECTION 3012-D OF THE
EDUCATION LAW BY SEPTEMBER 1 OF THE
CURRENT SCHOOL YEAR.
NOTWITHSTANDING ANY INCONSISTENT PROVISION
OF LAW, NO SCHOOL DISTRICT SHALL BE ELIGI-
BLE FOR AN APPORTIONMENT OF SUPPLEMENTAL
GENERAL SUPPORT FOR PUBLIC SCHOOLS FROM
THE FUNDS APPROPRIATED FOR THE 2016-17
SCHOOL YEAR IN EXCESS OF THE AMOUNT APPOR-
TIONED TO SUCH SCHOOL DISTRICT IN THE BASE
YEAR, AS DEFINED IN SUBDIVISION 1 OF
SECTION 3602 OF THE EDUCATION LAW, UNLESS
SUCH SCHOOL DISTRICT HAS SUBMITTED
DOCUMENTATION THAT HAS BEEN APPROVED BY
THE COMMISSIONER OF EDUCATION BY DECEMBER
31 OF THE CURRENT YEAR DEMONSTRATING THAT
IT HAS FULLY IMPLEMENTED THE STANDARDS AND
PROCEDURES FOR CONDUCTING ANNUAL TEACHER
AND PRINCIPAL EVALUATIONS OF TEACHERS AND
PRINCIPALS IN ACCORDANCE WITH THE REQUIRE-
MENTS OF SECTION 3012-D OF THE EDUCATION
LAW AND THE REGULATIONS ISSUED BY THE
COMMISSIONER. PROVIDED FURTHER THAT ANY
APPORTIONMENT WITHHELD PURSUANT TO THIS
APPROPRIATION SHALL NOT OCCUR PRIOR TO
APRIL 1 OF THE CURRENT YEAR AND SHALL NOT
HAVE ANY EFFECT ON THE BASE YEAR CALCU-
LATION FOR USE IN THE SUBSEQUENT SCHOOL
YEAR ..................................... 2,466,000,000
--------------
S 3. This act shall take effect immediately; provided, however that
the provisions of section two of this act shall be deemed to have been
in full force and effect on and after April 1, 2016.
PART E
Section 1. Statement of legislative findings and necessity. The legis-
lature hereby finds that for three decades beginning in 1979, following
a strike by school bus workers, the school bus contracts of the board of
education of the city of New York included employee protection
provisions requiring transportation contractors, among other things, to
give priority in hiring to employees who became unemployed because of
their employers' loss of bus contract work for such board and to pay
such employees the same wages and benefits they had received prior to
becoming unemployed.
Following the 2011 decision by the New York State Court of Appeals in
L&M BUS CORP., ET AL., V. THE NEW YORK CITY DEPARTMENT OF EDUCATION, ET
AL., the board of education of the city of New York did not include the
employee protection provisions that had been part of the board's school
bus contracts for over 30 years or any similar provisions in its solic-
S. 8135 20
itations for its school bus contracts. After the issuance of the first
such Post-L&M solicitation; there was a school bus strike in January and
February of 2013. During this strike, many children were either unable
to attend school or were burdened, along with their families, with find-
ing alternative modes of transportation in the heart of winter.
The legislature further finds that the board of education of the city
of New York contracts with 62 companies to provide vital school bus
transportation to 149,000 school-age children. Pursuant to the education
law, the state reimburses the board of education of the city of New York
for a substantial percentage of its school bus contract expenditures.
Accordingly, the legislature finds that the education law should be
amended to require the board of education of the city of New York to
include important employee protections in its procurements for school
bus transportation contracts and to authorize the board of education to
amend existing contracts to include these protections. Including these
protections in such board's contracts will aid in avoiding service
disruptions and pension withdrawal liability claims, while protecting
the experienced school bus contract workforce from significant wage and
benefit reductions and facilitating the retention of an experienced
workforce. Inclusion of such protections will secure more cost-effec-
tive, higher quality and efficient procurement and performance of school
bus transportation services.
S 2. Paragraph a of subdivision 14 of section 305 of the education
law, as amended by chapter 273 of the laws of 1999, is amended to read
as follows:
a. (1) All contracts for the transportation of school children, all
contracts to maintain school buses owned or leased by a school district
that are used for the transportation of school children, all contracts
for mobile instructional units, and all contracts to provide, maintain
and operate cafeteria or restaurant service by a private food service
management company shall be subject to the approval of the commissioner,
who may disapprove a proposed contract if, in his OR HER opinion, the
best interests of the district will be promoted thereby. Except as
provided in paragraph e of this subdivision, all such contracts involv-
ing an annual expenditure in excess of the amount specified for purchase
contracts in the bidding requirements of the general municipal law shall
be awarded to the lowest responsible bidder, which responsibility shall
be determined by the board of education or the trustee of a district,
with power hereby vested in the commissioner to reject any or all bids
if, in his OR HER opinion, the best interests of the district will be
promoted thereby and, upon such rejection of all bids, the commissioner
shall order the board of education or trustee of the district to seek,
obtain and consider new proposals. All proposals for such transporta-
tion, maintenance, mobile instructional units, or cafeteria and restau-
rant service shall be in such form as the commissioner may prescribe.
Advertisement for bids shall be published in a newspaper or newspapers
designated by the board of education or trustee of the district having
general circulation within the district for such purpose. Such adver-
tisement shall contain a statement of the time when and place where all
bids received pursuant to such advertisement will be publicly opened and
read either by the school authorities or by a person or persons desig-
nated by them. All bids received shall be publicly opened and read at
the time and place so specified. At least five days shall elapse between
the first publication of such advertisement and the date so specified
for the opening and reading of bids. The requirement for competitive
bidding shall not apply to an award of a contract for the transportation
S. 8135 21
of pupils or a contract for mobile instructional units, if such award is
based on an evaluation of proposals in response to a request for
proposals pursuant to paragraph e of this subdivision. The requirement
for competitive bidding shall not apply to annual, biennial, or trienni-
al extensions of a contract nor shall the requirement for competitive
bidding apply to quadrennial or quinquennial year extensions of a
contract involving transportation of pupils, maintenance of school buses
or mobile instructional units secured either through competitive bidding
or through evaluation of proposals in response to a request for
proposals pursuant to paragraph e of this subdivision, when such exten-
sions [(1)] (I) are made by the board of education or the trustee of a
district, under rules and regulations prescribed by the commissioner,
and, [(2)] (II) do not extend the original contract period beyond five
years from the date cafeteria and restaurant service commenced there-
under and in the case of contracts for the transportation of pupils, for
the maintenance of school buses or for mobile instructional units, that
such contracts may be extended, except that power is hereby vested in
the commissioner, in addition to his OR HER existing statutory authority
to approve or disapprove transportation or maintenance contracts, [(i)]
(A) to reject any extension of a contract beyond the initial term there-
of if he OR SHE finds that amount to be paid by the district to the
contractor in any year of such proposed extension fails to reflect any
decrease in the regional consumer price index for the N.Y.,
N.Y.-Northeastern, N.J. area, based upon the index for all urban consum-
ers (CPI-U) during the preceding twelve month period, OR FOR ALL
CONTRACTS FOR SCHOOL BUSES USED FOR THE TRANSPORTATION OF SCHOOL CHIL-
DREN, MAINTENANCE, AND ALL CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, IF
THE AMOUNT TO BE PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY YEAR OF
SUCH PROPOSED EXTENSION FAILS TO REFLECT ANY PERCENTAGE DECREASE IN THE
EMPLOYMENT COST INDEX (ECI) FOR TOTAL COMPENSATION FOR PRIVATE INDUSTRY
WORKERS IN THE NORTHEAST REGION (NOT SEASONALLY ADJUSTED) FOR THE FOURTH
QUARTER OF THE PRECEDING YEAR; [and (ii)] (B) to reject any extension of
a contract after ten years from the date transportation or maintenance
service commenced thereunder, or mobile instructional units were first
provided, if in his OR HER opinion, the best interests of the district
will be promoted thereby. Upon such rejection of any proposed extension,
the commissioner may order the board of education or trustee of the
district to seek, obtain and consider bids pursuant to the provisions of
this section; AND (C) TO REJECT ANY EXTENSION OF A CONTRACT FOR TRANS-
PORTATION, OR NEW CONTRACT, IF HE OR SHE FINDS THAT THE AMOUNT TO BE
PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY YEAR OF SUCH PROPOSED
CONTRACT FAILS TO REFLECT THE SAVINGS REALIZED FROM THE SALES TAX
EXEMPTION ON SCHOOL BUSES, PARTS, EQUIPMENT, LUBRICANTS AND FUEL USED
FOR SCHOOL PURPOSES PURSUANT TO PARAGRAPH FORTY-FOUR OF SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board of education
or the trustee of a school district electing to extend a contract as
provided herein, may, in its discretion, increase the amount to be paid
in each year of the contract extension by an amount not to exceed the
regional consumer price index increase for the N.Y., N.Y.-Northeastern,
N.J. area, based upon the index for all urban consumers (CPI-U), during
the preceding twelve month period, OR FOR ALL CONTRACTS FOR SCHOOL BUSES
USED FOR THE TRANSPORTATION OF SCHOOL CHILDREN, MAINTENANCE, AND ALL
CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, BY AN AMOUNT NOT TO EXCEED THE
PERCENTAGE INCREASE IN THE EMPLOYMENT COST INDEX (ECI) TOTAL COMPEN-
SATION FOR PRIVATE INDUSTRY WORKERS IN THE NORTHEAST REGION (NOT
SEASONALLY ADJUSTED) FOR THE FOURTH QUARTER OF THE PRECEDING YEAR,
S. 8135 22
provided it has been satisfactorily established by the contractor that
there has been at least an equivalent increase in the amount of his OR
HER cost of operation, during the period of the contract.
(2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH AT LEAST ONE
MILLION INHABITANTS SHALL INCLUDE IN CONTRACTS FOR THE TRANSPORTATION OF
SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, WHETHER AWARDED
THROUGH COMPETITIVE BIDDING OR THROUGH EVALUATION OF PROPOSALS IN
RESPONSE TO A REQUEST FOR PROPOSALS PURSUANT TO PARAGRAPH E OF THIS
SUBDIVISION, PROVISIONS FOR THE RETENTION OR PREFERENCE IN HIRING OF
SCHOOL BUS WORKERS AND FOR THE PRESERVATION OF WAGES, HEALTH, WELFARE
AND RETIREMENT BENEFITS AND SENIORITY FOR SCHOOL BUS WORKERS WHO ARE
HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREFERENCE IN HIRING,
IN CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES OF THIS SUBPARAGRAPH,
"SCHOOL BUS WORKER" SHALL MEAN AN OPERATOR, MECHANIC, DISPATCHER OR
ATTENDANT WHO: (I) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO THOUSAND TEN
OR AT ANY TIME THEREAFTER BY (A) A CONTRACTOR THAT WAS A PARTY TO A
CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A
CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE TRANSPORTATION OF
SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION WITH
SUCH CONTRACT, OR (B) A SUBCONTRACTOR OF A CONTRACTOR THAT WAS A PARTY
TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED
IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE TRANSPORTATION
OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION
WITH SUCH CONTRACT, AND (II) HAS BEEN FURLOUGHED OR BECOME UNEMPLOYED AS
A RESULT OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH CONTRACT, BY SUCH
CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS A RESULT OF A REDUCTION IN
SERVICE DIRECTED BY SUCH BOARD OF EDUCATION DURING THE TERM OF SUCH
CONTRACT.
S 3. Paragraph c of subdivision 14 of section 305 of the education
law, as amended by chapter 15 of the laws of 2005, is amended to read as
follows:
c. Each board of education, or the trustees, of a school district
which elected or elects to extend one or more pupil transportation
contracts may extend a contract in an amount which is in excess of the
maximum increase allowed by use of the [CPI] ECI referenced in paragraph
a of this subdivision. Such excess amount shall not be greater than the
sum of the following: (i) the sum of the actual cost of qualifying crim-
inal history and driver licensing testing fees attributable to special
requirements for drivers of school buses pursuant to articles nineteen
and nineteen-A of the vehicle and traffic law plus the actual cost of
any diagnostic tests and physical performance tests that are deemed to
be necessary by an examining physician or the chief school officer to
determine whether an applicant to drive a school bus under the terms of
the contract has the physical and mental ability to operate a school
transportation conveyance and to satisfactorily perform the other
responsibilities of a school bus driver pursuant to regulations of the
commissioner; (ii) in a school district located in a city with at least
one million inhabitants, the actual cost of clean air technology filters
and Global Positioning System (GPS) technology; (iii) in a school
district located in a city with at least one million inhabitants, with
respects only to any extension beginning in fiscal year two thousand
five--two thousand six, the sum of the actual cost of providing school
bus attendants including the actual cost of criminal history record
checks for school bus attendant applicants and training and instruction
for school bus attendants pursuant to section twelve hundred twenty-
S. 8135 23
nine-d of the vehicle and traffic law plus up to five percent of such
cost for necessary administrative services; and (iv) the actual cost of
equipment or vehicle modification, or training required, by any state or
local legislation or regulation promulgated or effective on or after
June first, two thousand five. Such costs shall be approved by the
commissioner upon documentation provided by the school district and
contractor as required by the commissioner.
S 4. Subdivision 14 of section 305 of the education law is amended by
adding a new paragraph g to read as follows:
G. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS A THROUGH F OF THIS
SUBDIVISION AND ANY REGULATION PROMULGATED PURSUANT THERETO, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH AT LEAST ONE
MILLION INHABITANTS AND A CONTRACTOR PROVIDING TRANSPORTATION SERVICES
TO SUCH DISTRICT FOR SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE
TWELVE MAY AMEND A CONTRACT WITH MUTUAL CONSENT FOR SUCH TRANSPORTATION
SERVICES, FOR SUCH CONSIDERATION AS APPROVED BY SUCH BOARD OF EDUCATION,
TO INCLUDE IN SUCH CONTRACT PROVISIONS FOR THE RETENTION OR PREFERENCE
IN HIRING OF SCHOOL BUS WORKERS AND FOR THE PRESERVATION OF WAGES,
HEALTH, WELFARE AND RETIREMENT BENEFITS AND SENIORITY FOR SCHOOL BUS
WORKERS WHO ARE HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREF-
ERENCE IN HIRING, IN CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES OF
THIS PARAGRAPH, "SCHOOL BUS WORKER" SHALL MEAN AN OPERATOR, MECHANIC,
DISPATCHER OR ATTENDANT WHO: (1) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO
THOUSAND TEN OR AT ANY TIME THEREAFTER BY (I) A CONTRACTOR THAT WAS A
PARTY TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT
LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE TRANS-
PORTATION OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN
CONNECTION WITH SUCH CONTRACT, OR (II) A SUBCONTRACTOR OF A CONTRACTOR
THAT WAS A PARTY TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL
DISTRICT LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE
TRANSPORTATION OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE,
IN CONNECTION WITH SUCH CONTRACT, AND (2) HAS BEEN FURLOUGHED OR BECOME
UNEMPLOYED AS A RESULT OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH
CONTRACT, BY SUCH CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS THE RESULT OF
A REDUCTION IN SERVICE DIRECTED BY SUCH BOARD OF EDUCATION DURING THE
TERM OF SUCH CONTRACT.
S 5. Subdivision (a) of section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
(44) SCHOOL BUSES AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED
FORTY-TWO OF THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
S 6. Separability. If any item, clause, subparagraph, paragraph,
subdivision or section 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 this item, clause, subparagraph, paragraph, subdivision or
section thereof that was adjudged to be invalid.
S 7. This act shall take effect immediately; provided, however, that
the provisions of section five of this act shall take effect on the
first day of a quarterly sales tax period, as set forth in subdivision
(b) of section 1136 of the tax law, next succeeding April 1, 2017.
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
S. 8135 24
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 E of this act shall be
as specifically set forth in the last section of such Parts.
