S T A T E   O F   N E W   Y O R K
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                                  8135

                            I N  S E N A T E

                              June 14, 2016
                               ___________

Introduced  by  Sens.  FLANAGAN,  MARCELLINO  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Rules

AN ACT to amend 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, in relation to the effectiveness thereof; to amend chapter 345
  of  the laws of 2009, amending the education law and other laws relat-
  ing to the New York city board  of  education,  chancellor,  community
  councils  and community superintendents, in relation to the effective-
  ness thereof; and to amend the education law, in relation to  the  New
  York city school district system (Part A); to amend the education law,
  in  relation  to teacher certification in public charter schools (Part
  B); to amend the tax law and the education law, in relation to  enact-
  ing  the  "education investment incentives act" (Part C); to amend the
  education law, in relation to  documentation  demonstrating  a  school
  district has fully implemented standards and procedures for conducting
  annual  teacher  and principal evaluations; and to amend chapter 53 of
  the laws of 2016, enacting the aid to localities budget,  in  relation
  to making additional appropriations therein (Part D); and to amend the
  education law and the tax law, in relation to contracts for the trans-
  portation of school children (Part E)

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

  Section 1. This act enacts into law major  components  of  legislation
relating  to  education  within New York state. Each component is wholly
contained within a Part identified as Parts A through E.  The  effective
date  for  each  particular  provision contained within such Part is set
forth in the last section of such Part. Any  provision  in  any  section
contained within a Part, including the effective date of the Part, which
makes  a  reference  to a section "of this act", when used in connection
with that particular component, shall be deemed to mean and refer to the
corresponding section of the Part in which it is found. Section three of
this act sets forth the general effective date of this act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15669-15-6
              

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

S. 8135                             5

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.