S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9683
 
                           I N  A S S E M B L Y
 
                             February 2, 2018
                                ___________
 
 Introduced by M. of A. JAFFEE -- read once and referred to the Committee
   on Education
 
 AN  ACT  to  amend  the general municipal law, in relation to the repair
   reserve funds for municipal corporations, school districts,  board  of
   cooperative  educational  services, district corporations and improve-
   ment districts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 6-d of the general municipal law, as added by chap-
 ter  383 of the laws of 1950, the section heading and subdivisions 5 and
 6 as amended by chapter 693 of  the  laws  of  1952,  subdivision  1  as
 amended  by chapter 828 of the laws of 1961, subdivision 2 as amended by
 chapter 740 of the laws of 1957, paragraph  (b)  of  subdivision  3  and
 subdivision 4 as amended by chapter 140 of the laws of 1996 and subdivi-
 sion 7 as amended by chapter 424 of the laws of 2001, is amended to read
 as follows:
   §  6-d.  Repair  reserve  funds  for  municipal  corporations,  school
 districts, BOARD OF COOPERATIVE EDUCATIONAL  SERVICES,  district  corpo-
 rations and improvement districts. 1. The governing board of any munici-
 pal  corporation,  school  district,  BOARD  OF  COOPERATIVE EDUCATIONAL
 SERVICES, district corporation, or town or county improvement  district,
 may  establish a special fund which shall be known as the repair reserve
 fund of such municipal corporation, school district,  BOARD  OF  COOPER-
 ATIVE   EDUCATIONAL   SERVICES,   district  corporation  or  improvement
 district. There may be paid into such fund an amount as may be  provided
 therefor by budgetary appropriation or such revenues as are not required
 by law to be paid into any other fund or account.
   2. In cases of emergency, moneys in such fund may be expended pursuant
 to  a  resolution approved by not less than two-thirds of the members of
 the governing body of such municipal corporation, school district, BOARD
 OF COOPERATIVE EDUCATIONAL SERVICES, district corporation or improvement
 district providing that not less than one-half of the moneys so expended
 shall be repaid in the fiscal year immediately following the fiscal year
 in which such moneys were expended and the total amount shall be  repaid
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14497-01-8

 A. 9683                             2
 
 not  later  than  the  last day of the second fiscal year succeeding the
 fiscal year in which the moneys were expended.
   Prior to the adoption of any other resolution, act, ordinance or local
 law  by  the  governing  board  of  such  municipal  corporation, school
 district, BOARD OF COOPERATIVE  EDUCATIONAL  SERVICES,  district  corpo-
 ration  or improvement district, appropriating money from such fund, the
 governing board shall cause to be published in the official newspaper or
 newspapers, if any, or otherwise in a newspaper or newspapers designated
 for such purpose, a notice stating in substance that it is  proposed  to
 appropriate  a  specified  amount  from  the  repair  reserve fund for a
 particular purpose, and that a public hearing on such proposed appropri-
 ation will be held at a time and place stated  therein.  At  least  five
 days  shall  elapse  between the publication of such notice and the date
 specified for the hearing. The hearing shall be held  at  the  time  and
 place so specified.
   3. Moneys in such fund may be appropriated only:
   a. For repairs of capital improvements or equipment, which repairs are
 of a type not recurring annually or at shorter intervals.
   b.  In  the case of a municipal corporation, to a capital reserve fund
 established pursuant to section six-c of this article or to a contingen-
 cy and tax stabilization reserve fund established  pursuant  to  section
 six-e of this article.
   c.  In  the  case of a fire district, to a capital reserve fund estab-
 lished pursuant to section six-g OF THIS ARTICLE.
   d. In the case of a school district, OR BOARD  OF  COOPERATIVE  EDUCA-
 TIONAL  SERVICES to a reserve fund established pursuant to section thir-
 ty-six hundred fifty-one of the education law.
   4. The moneys in such fund shall  be  deposited  and  secured  in  the
 manner  provided by section ten of this article. The moneys in such fund
 so deposited shall be accounted for separate and apart  from  all  other
 funds  of  the  municipal corporation, school district, BOARD OF COOPER-
 ATIVE  EDUCATIONAL  SERVICES,  district   corporation   or   improvement
 district,  in  the same manner as provided in subdivision ten of section
 six-c of this article. The governing board or the chief  fiscal  officer
 of  such  municipal  corporation,  school district, BOARD OF COOPERATIVE
 EDUCATIONAL SERVICES, district corporation or improvement  district,  if
 the  governing  board  shall  delegate  such duty to him, may invest the
 moneys in such fund in the manner provided in  section  eleven  of  this
 article.  Any interest earned or capital gains realized on the moneys so
 deposited or invested shall accrue to and become part of such fund.
   5. The members of the governing board of such  municipal  corporation,
 school  district,  BOARD  OF  COOPERATIVE EDUCATIONAL SERVICES, district
 corporation or improvement district are hereby declared trustees of such
 fund and shall be subject to all the duties and responsibilities imposed
 by law on trustees, and such duties and responsibilities may be enforced
 by such municipal corporation, school district, district corporation  or
 improvement  district,  as the case may be, or by any board, commission,
 agency, officer or taxpayer thereof.
   6. The members of the governing board of such  municipal  corporation,
 school  district,  BOARD OF COOPERATIVE EDUCATIONAL SERVICES or district
 corporation shall be guilty of a misdemeanor if they:
   a. Authorize a withdrawal from a repair reserve  fund  for  any  other
 purpose except as provided in this section.
   b. Expend any money withdrawn from a repair reserve fund for a purpose
 other than that as provided in this section.

 A. 9683                             3
 
   7.  Notwithstanding  the  foregoing provisions of this section, in any
 town which is located wholly or partly within the  Adirondack  park  and
 has  within  its  boundaries state lands subject to taxation assessed at
 more than thirty per centum of the total taxable assessed  valuation  of
 town  as  determined  from the assessment rolls of the town as completed
 from time to  time,  or  in  any  district  corporation  or  improvement
 district situated in whole or in part in any such town, a repair reserve
 fund shall not be established unless the state comptroller, on behalf of
 the  state,  shall  consent  thereto,  and  in any such town or district
 corporation or improvement district no appropriation shall be made  from
 a  repair  reserve  fund  unless the state comptroller, on behalf of the
 state, shall consent thereto.
   8. Moneys of a municipal corporation, school district, BOARD OF  COOP-
 ERATIVE  EDUCATIONAL  SERVICES  or district corporation which, upon June
 thirtieth, nineteen hundred fifty, constitute a repair reserve  fund  of
 such municipal corporation, school district, BOARD OF COOPERATIVE EDUCA-
 TIONAL SERVICES or district corporation, shall continue to so constitute
 a special fund and be known as the repair reserve fund of such municipal
 corporation,  school district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES
 or district corporation. From and after  such  date,  payments  to,  and
 appropriations  from,  such  fund  shall  be  subject  to  the foregoing
 provisions of this section.
   § 2. This act shall take effect immediately.