Senate Bill S2300

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2300
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens. GRIFFO, BONACIC, ORTT, SERINO, YOUNG -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Education
 
 AN ACT to amend the education law, in relation  to  the  computation  of
   foundation  aid  and  addition  of  credit recovery aid for the Maisto
   Districts; to amend the local finance law, in relation to  calculation
   of  the  period  of  probable  usefulness regarding payment for Maisto
   Districts credit recovery aid; to amend the public authorities law, in
   relation to contracts between the dormitory authority and  the  Maisto
   Districts  or  the  New  York  state  association of small city school
   districts; and to amend the state finance law, in relation  to  estab-
   lishing the credit recovery financing reserve fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent: It is the responsibility of the  legis-
 lature  under article XI of the constitution of the state of New York to
 establish and maintain a system that will provide all children an oppor-
 tunity to receive a meaningful high school education.  As  a  result  of
 trial in State Supreme Court of MAISTO, ET AL. V STATE OF NEW YORK it is
 clear  that  resources sufficient to offer that education in eight small
 city school districts, known as the  Maisto  Districts,  are  not  being
 provided  to  those districts under current education law. Therefore, it
 is the intention of the legislature to amend certain provisions  of  the
 education law to ensure that the necessary funding is available in those
 districts  to  help  them  provide  all their children an opportunity to
 receive a meaningful high  school  education  and  to  maintain  healthy
 vibrant educational communities that underpin a thriving state economy.
   §  2.  This legislation shall be known and may be cited as "the Maisto
 District successful schools act".

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05724-01-7

              

 S. 2300                             2
 
   § 3. Paragraph ff of subdivision 1 of section 3602  of  the  education
 law, as added by section 25 of part A of chapter 58 of the laws of 2011,
 is amended to read as follows:
   ff.  "Preliminary growth amount" shall mean the difference between the
 statewide total,  excluding  the  apportionments  computed  pursuant  to
 subdivisions  four, OTHER THAN SUCH APPORTIONMENTS FOR MAISTO DISTRICTS,
 and seventeen of section thirty-six hundred two of the education law, of
 the apportionments  due  and  owing  during  the  current  school  year,
 commencing  with  the  two thousand twelve--two thousand thirteen school
 year, to school districts and boards of cooperative educational services
 from the general support for public schools  as  computed  based  on  an
 electronic  data  file  used  to produce the school aid computer listing
 produced by the commissioner in support of the enacted  budget  for  the
 current year, less the statewide total of such apportionments, excluding
 the  apportionments  computed  pursuant to subdivisions four, OTHER THAN
 SUCH APPORTIONMENTS FOR MAISTO DISTRICTS, and seventeen of section thir-
 ty-six hundred two of the education law, due and owing during  the  base
 school  year  to  school districts and boards of cooperative educational
 services from the general support for public schools as  computed  based
 on an electronic data file used to produce the school aid computer list-
 ing  produced  by  the commissioner in support of the enacted budget for
 the current year.
   § 4. Subdivision 1 of section 3602 of the education law is amended  by
 adding two new paragraphs hh and ii to read as follows:
   HH.  "NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS" SHALL
 MEAN THE ASSOCIATION OF DISTRICTS IN CITIES WITH POPULATIONS FEWER  THAN
 ONE HUNDRED TWENTY-FIVE THOUSAND PERSONS IN THE MOST RECENT CENSUS.
   II.  "MAISTO  DISTRICTS" SHALL MEAN THE SMALL CITY SCHOOL DISTRICTS OF
 JAMESTOWN, KINGSTON, MOUNT VERNON, NEWBURGH, NIAGARA FALLS, PORT JERVIS,
 POUGHKEEPSIE AND UTICA.
   § 5. Subdivision 18 of section 3602 of the education law, as added  by
 section  37  of  part A of chapter 58 of the laws of 2011, is amended to
 read as follows:
   18. Allocable growth amount apportionment. Such amount shall be appor-
 tioned for a school year pursuant to a chapter of the laws of  New  York
 enacted  for  the state fiscal year in which such school year commences,
 and shall be allocated to purposes including but not limited to  compet-
 itive grant awards made pursuant to subdivisions five and six of section
 thirty-six  hundred forty-one of this article, the foundation aid phase-
 in amount or other foundation aid increase allocated pursuant to  subdi-
 vision  four of this section and the gap elimination adjustment restora-
 tion amount  apportioned  pursuant  to  subdivision  seventeen  of  this
 section. In the event that a chapter of the laws of New York enacted for
 the  state  fiscal  year  in  which  such  school  year commences is not
 enacted, the allocations in support of  subdivisions  five  and  six  of
 section  thirty-six  hundred  forty-one  of this article shall equal the
 allocations in support of such awards in the base year, and  the  appor-
 tionments  pursuant  to  subdivisions four and seventeen of this section
 for the current year shall equal the apportionments  for  such  subdivi-
 sions  four  and  seventeen for the base year EXCEPT THAT THE APPORTION-
 MENTS OF THE FOUNDATION AID PHASE-IN AMOUNT FOR THE MAISTO DISTRICTS AND
 MAISTO DISTRICT CREDIT RECOVERY AID SHALL BE THE AMOUNT COMPUTED IN  THE
 CURRENT YEAR.
   §  6. The opening paragraph, subparagraph 1 of paragraph a, and clause
 (ii) of subparagraph 2 of paragraph b of subdivision 4 of  section  3602

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 of the education law, as amended by section 7 of part A of chapter 54 of
 the laws of 2016, are amended to read as follows:
   In  addition  to  any  other apportionment pursuant to this chapter, a
 school district, other than a special act school district as defined  in
 subdivision eight of section four thousand one of this chapter, shall be
 eligible  for total foundation aid equal to the product of total aidable
 foundation pupil units multiplied by the district's selected  foundation
 aid,  which shall be the greater of five hundred dollars ($500) or foun-
 dation formula aid, provided, however that for the two thousand  seven--
 two  thousand eight through two thousand eight--two thousand nine school
 years, no school district shall receive total foundation aid  in  excess
 of  the  sum of the total foundation aid base for aid payable in the two
 thousand seven--two thousand eight  school  year  computed  pursuant  to
 subparagraph (i) of paragraph j of subdivision one of this section, plus
 the  phase-in  foundation  increase  computed pursuant to paragraph b of
 this subdivision, and provided further that for the two thousand twelve-
 -two thousand thirteen school year, no  school  district  shall  receive
 total  foundation  aid  in excess of the sum of the total foundation aid
 base for aid payable in the two  thousand  eleven--two  thousand  twelve
 school  year  computed  pursuant  to subparagraph (ii) of paragraph j of
 subdivision one of this section, plus the phase-in  foundation  increase
 computed  pursuant  to  paragraph  b  of  this subdivision, and provided
 further that for the two thousand thirteen--two thousand fourteen school
 year and thereafter, no school district shall receive  total  foundation
 aid  in  excess  of  the  sum  of the total foundation aid base computed
 pursuant to subparagraph (ii) of paragraph j of subdivision one of  this
 section,  plus  the  phase-in  foundation  increase computed pursuant to
 paragraph b of this subdivision, and provided further that for  the  two
 thousand sixteen--two thousand seventeen school year, no eligible school
 districts shall receive total foundation aid in excess of the sum of the
 total  foundation  aid  base  computed  pursuant to subparagraph (ii) of
 paragraph j of subdivision one of this section plus the sum of  (A)  the
 phase-in foundation increase, (B) the executive foundation increase with
 a  minimum  increase  pursuant to paragraph b-2 of this subdivision, and
 (C) an amount equal to "COMMUNITY SCHOOLS AID" in the  computer  listing
 produced  by the commissioner in support of the executive budget request
 for the two thousand sixteen--two thousand  seventeen  school  year  and
 entitled  "BT161-7",  where  (1)  "eligible  school  district"  shall be
 defined as a district with (a) an unrestricted aid increase of less than
 seven percent (0.07) and (b) a three year average free and reduced price
 lunch percent greater than fifteen percent (0.15), and (2) "unrestricted
 aid increase" shall mean the quotient arrived at when dividing  (a)  the
 sum  of  the  executive foundation aid increase plus the gap elimination
 adjustment for the base year, by (b) the difference  of  foundation  aid
 for the base year less the gap elimination adjustment for the base year,
 and (3) "executive foundation increase" shall mean the difference of (a)
 the amounts set forth for each school district as "FOUNDATION AID" under
 the  heading "2016-17 ESTIMATED AIDS" in the school aid computer listing
 produced by the commissioner in support of the executive budget  request
 for  the  two  thousand  sixteen--two thousand seventeen school year and
 entitled "BT161-7" less (b)  the  amounts  set  forth  for  each  school
 district  as "FOUNDATION AID" under the heading "2015-16 BASE YEAR AIDS"
 in such computer listing and provided further that total foundation  aid
 shall  not  be  less  than  the product of the total foundation aid base
 computed pursuant to paragraph j of subdivision one of this section  and
 the due-minimum percent which shall be, for the two thousand twelve--two

 S. 2300                             4
 
 thousand  thirteen  school  year,  one  hundred  and  six-tenths percent
 (1.006) and for the two thousand thirteen--two thousand fourteen  school
 year  for  city  school  districts of those cities having populations in
 excess  of  one  hundred  twenty-five thousand and less than one million
 inhabitants one hundred and one and one hundred  and  seventy-six  thou-
 sandths  percent  (1.01176), and for all other districts one hundred and
 three-tenths percent (1.003), and for  the  two  thousand  fourteen--two
 thousand  fifteen  school  year  one  hundred and eighty-five hundredths
 percent (1.0085), and for the two thousand fifteen--two thousand sixteen
 school year,  one  hundred  thirty-seven  hundredths  percent  (1.0037),
 subject to allocation pursuant to the provisions of subdivision eighteen
 of  this section and any provisions of a chapter of the laws of New York
 as described therein, nor more than the product of such total foundation
 aid base and one hundred fifteen percent, provided,  however,  that  for
 the  two thousand sixteen--two thousand seventeen school year such maxi-
 mum shall be no more than the sum of (i) the product of such total foun-
 dation aid base and one hundred fifteen percent plus (ii) the  executive
 foundation  increase  and  plus  (iii)  "COMMUNITY  SCHOOLS  AID" in the
 computer listing produced by the commissioner in support of  the  execu-
 tive budget request for the two thousand sixteen--two thousand seventeen
 school  year  and  entitled "BT161-7", EXCEPT FOR MAISTO DISTRICTS WHICH
 SHALL BE ONE HUNDRED TWENTY-FIVE PERCENT, and provided further that  for
 the two thousand nine--two thousand ten through two thousand eleven--two
 thousand  twelve  school years, each school district shall receive total
 foundation aid in an amount equal to  the  amount  apportioned  to  such
 school  district  for  the  two thousand eight--two thousand nine school
 year pursuant to this subdivision. Total aidable foundation pupil  units
 shall  be  calculated pursuant to paragraph g of subdivision two of this
 section. For the purposes of calculating aid pursuant to  this  subdivi-
 sion,  aid for the city school district of the city of New York shall be
 calculated on a citywide basis.
   (1) The foundation amount shall reflect the average per pupil cost  of
 general  education instruction in successful school districts, as deter-
 mined by a statistical analysis of the costs of  special  education  and
 general  education  in  successful  school  districts, provided that the
 foundation amount shall be adjusted annually to reflect  the  percentage
 increase in the consumer price index as computed pursuant to section two
 thousand  twenty-two of this chapter, provided that for the two thousand
 eight--two thousand nine school year, for the purpose  of  such  adjust-
 ment,  the  percentage  increase  in  the  consumer price index shall be
 deemed to be two and nine-tenths percent (0.029), and  provided  further
 that  the  foundation  amount  for  the two thousand seven--two thousand
 eight school  year  shall  be  five  thousand  two  hundred  fifty-eight
 dollars, and provided further that for the two thousand seven--two thou-
 sand  eight  through two thousand sixteen--two thousand seventeen school
 years, AND FOR THE MAISTO DISTRICTS FOR THE TWO  THOUSAND  EIGHTEEN--TWO
 THOUSAND  NINETEEN THROUGH TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-
 TWO SCHOOL YEARS, the foundation amount shall be further adjusted by the
 phase-in foundation percent established pursuant to paragraph b of  this
 subdivision.
   (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
 eleven--two  thousand  twelve  school  year,  the  phase-in   foundation
 increase  factor  shall  equal thirty-seven and one-half percent (0.375)
 and the phase-in due minimum percent shall equal nineteen and  forty-one
 hundredths  percent  (0.1941), for the two thousand twelve--two thousand
 thirteen school year the phase-in foundation increase factor shall equal

 S. 2300                             5
 
 one and seven-tenths percent (0.017), for the two thousand thirteen--two
 thousand fourteen school year the phase-in  foundation  increase  factor
 shall equal (1) for a city school district in a city having a population
 of  one  million  or  more,  five  and  twenty-three  hundredths percent
 (0.0523) or (2) for all other school districts zero percent, for the two
 thousand fourteen--two thousand fifteen school year the phase-in founda-
 tion increase factor shall equal (1) for a city  school  district  of  a
 city  having  a  population  of one million or more, four and thirty-two
 hundredths percent (0.0432) or (2) for a school district  other  than  a
 city  school  district  having  a  population of one million or more for
 which (A) the quotient of the  positive  difference  of  the  foundation
 formula aid minus the foundation aid base computed pursuant to paragraph
 j  of  subdivision one of this section divided by the foundation formula
 aid is greater than twenty-two percent (0.22) and (B) a combined  wealth
 ratio  less  than thirty-five hundredths (0.35), seven percent (0.07) or
 (3) for all other  school  districts,  four  and  thirty-one  hundredths
 percent (0.0431), and for the two thousand fifteen--two thousand sixteen
 school year the phase-in foundation increase factor shall equal: (1) for
 a  city  school district of a city having a population of one million or
 more,  thirteen  and  two  hundred  seventy-four   thousandths   percent
 (0.13274);  or  (2)  for  districts  where  the quotient arrived at when
 dividing (A) the product of the total  aidable  foundation  pupil  units
 multiplied  by  the  district's  selected  foundation aid less the total
 foundation aid base computed pursuant to paragraph j of subdivision  one
 of  this section divided by (B) the product of the total aidable founda-
 tion pupil units multiplied by the district's selected foundation aid is
 greater than nineteen percent (0.19), and where the district's  combined
 wealth  ratio is less than thirty-three hundredths PERCENT (0.33), seven
 and seventy-five hundredths percent  (0.0775);  or  (3)  for  any  other
 district  designated as high need pursuant to clause (c) of subparagraph
 two of paragraph c of subdivision six of this section for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two thousand seven--two thousand eight school year and
 entitled "SA0708", four  percent  (0.04);  or  (4)  for  a  city  school
 district  in a city having a population of one hundred twenty-five thou-
 sand or more but less than one million, fourteen percent (0.14); or  (5)
 for school districts that were designated as small city school districts
 or  central  school  districts  whose  boundaries include a portion of a
 small city for the school aid computer listing produced by  the  commis-
 sioner  in support of the enacted budget for the two thousand fourteen--
 two thousand fifteen school year and entitled "SA1415", four  and  seven
 hundred  fifty-one  thousandths  percent (0.04751); or (6) for all other
 districts one percent (0.01), and  for  the  two  thousand  sixteen--two
 thousand  seventeen  school  year  shall  equal  for  an eligible school
 district the greater of: (1) for a city school district in a city with a
 population of one million or more, seven and seven hundred  eighty  four
 thousandths  percent  (0.07784);  or (2) for a city school district in a
 city with a population of more than two hundred fifty thousand but  less
 than  one  million as of the most recent federal decennial census, seven
 and three hundredths percent (0.0703); or (3) for a city school district
 in a city with a population of more than two hundred thousand  but  less
 than  two hundred fifty thousand as of the most recent federal decennial
 census, six and seventy-two hundredths percent (0.0672); or  (4)  for  a
 city  school  district  in  a  city  with  a population of more than one
 hundred fifty thousand but less than two hundred thousand as of the most
 recent federal decennial census, six and seventy-four hundredths percent

 S. 2300                             6
 
 (0.0674); or (5) for a city school district in a city with a  population
 of  more than one hundred twenty-five thousand but less than one hundred
 fifty thousand as of the most recent federal decennial census, nine  and
 fifty-five hundredths percent (0.0955); or (6) for school districts that
 were  designated  as  small  city  school  districts  or  central school
 districts whose boundaries include a portion of a  small  city  for  the
 school  aid  computer listing produced by the commissioner in support of
 the enacted budget for the two thousand fourteen--two  thousand  fifteen
 school  year  and  entitled  "SA141-5" with a combined wealth ratio less
 than one and four tenths (1.4), nine percent (0.09), provided,  however,
 that  for such districts that are also districts designated as high need
 urban-suburban pursuant to clause (c) of subparagraph two of paragraph c
 of subdivision six of this section for the school aid  computer  listing
 produced  by  the  commissioner in support of the enacted budget for the
 two  thousand  seven--two  thousand  eight  school  year  and   entitled
 "SA0708",  nine  and  seven  hundred  and  nineteen  thousandths percent
 (0.09719); or (7) for school districts designated  as  high  need  rural
 pursuant to clause (c) of subparagraph two of paragraph c of subdivision
 six  of this section for the school aid computer listing produced by the
 commissioner in support of the  enacted  budget  for  the  two  thousand
 seven--two  thousand  eight  school year and entitled "SA0708", thirteen
 and six tenths percent (0.136); or (8) for school  districts  designated
 as  high  need urban-suburban pursuant to clause (c) of subparagraph two
 of paragraph c of subdivision six of this section  for  the  school  aid
 computer  listing produced by the commissioner in support of the enacted
 budget for the two thousand seven--two thousand eight  school  year  and
 entitled "SA0708", seven hundred nineteen thousandths percent (0.00719);
 or  (9)  for all other eligible school districts, forty-seven hundredths
 percent (0.0047) and for the two thousand seventeen--two thousand  eigh-
 teen  school  year and thereafter the commissioner shall annually deter-
 mine the phase-in  foundation  increase  factor  subject  to  allocation
 pursuant  to  the provisions of subdivision eighteen of this section and
 any provisions of a chapter  of  the  laws  of  New  York  as  described
 therein,  EXCEPT  THAT  FOR  MAISTO DISTRICTS IN THE TWO THOUSAND SEVEN-
 TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR TWENTY-FIVE  HUNDREDTHS  PERCENT
 (0.0025),  IN  THE  TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL
 YEAR FIVE HUNDREDTHS PERCENT (0.0050), IN THE TWO THOUSAND NINETEEN--TWO
 THOUSAND TWENTY SCHOOL YEAR SEVENTY-FIVE HUNDREDTHS PERCENT (0.0075) AND
 IN THE TWO THOUSAND TWENTY--TWO  THOUSAND  TWENTY-ONE  SCHOOL  YEAR  AND
 THEREAFTER ONE HUNDRED HUNDREDTHS PERCENT (0.0100).
   §  7.  Section  3602  of  the education law is amended by adding a new
 subdivision 42 to read as follows:
   42. MAISTO DISTRICT CREDIT RECOVERY AID. COMMENCING WITH  AID  PAYABLE
 IN  THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR THROUGH
 THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR  MAISTO
 DISTRICTS  SHALL BE ELIGIBLE FOR AN ADDITIONAL APPORTIONMENT AS PROVIDED
 FOR IN THIS SUBDIVISION. SUCH DISTRICTS SHALL BE ELIGIBLE FOR  AN  ADDI-
 TIONAL  APPORTIONMENT  IN  AN  AMOUNT  EQUAL TO THE PRODUCT OF THE TOTAL
 NUMBER OF STUDENTS IN THE TWO THOUSAND THIRTEEN, TWO THOUSAND  FOURTEEN,
 TWO  THOUSAND  FIFTEEN,  TWO THOUSAND SIXTEEN AND TWO THOUSAND SEVENTEEN
 COHORTS MULTIPLIED BY ONE MINUS THE FOUR YEAR GRADUATION  RATE  FOR  THE
 YEAR  PRIOR  TO  THE  BASE  YEAR  AND TWO THOUSAND FIVE HUNDRED ($2,500)
 DOLLARS TO BE USED FOR PROGRAMS WITH RESPECT TO SUCH  STUDENTS  APPROVED
 BY THE COMMISSIONER FOR THE FOLLOWING PURPOSES:
   A. CREDIT RECOVERY PROGRAMS;
   B. ACADEMIC INTERVENTION SERVICES;

 S. 2300                             7
 
   C. RESPONSE TO INTERVENTION SERVICES;
   D. DROP OUT PREVENTION;
   E. INCARCERATED YOUTH SERVICES;
   F. PARENT INVOLVEMENT PROGRAMS;
   G. EXTENDED DAY AND EXTENDED YEAR PROGRAMS; AND
   H. PSYCHO-SOCIAL TESTING.
   §  8.  Section 2530 of the education law, as amended by chapter 171 of
 the laws of 1996, is amended to read as follows:
   § 2530. Power to contract indebtedness.   Each  city  school  district
 shall  be  authorized to expend money for any of the objects or purposes
 which it is authorized to accomplish by law  and  may  contract  indebt-
 edness  in its name pursuant to the local finance law, INCLUDING BUT NOT
 LIMITED TO THE ISSUANCE OF BONDS OF THE DISTRICT  OR  OF  THE  NEW  YORK
 STATE  ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  ITS AFFILIATES,
 SUBSIDIARIES OR SUBDIVISIONS THEREOF TO BE REPAID BY REVENUES FROM MAIS-
 TO DISTRICT CREDIT RECOVERY AID PURSUANT  TO  SUBDIVISION  FORTY-TWO  OF
 SECTION  THIRTY-SIX  HUNDRED  TWO  OF  THIS CHAPTER. NOTWITHSTANDING ANY
 OTHER PROVISION OF LAW TO THE CONTRARY,  EACH  DISTRICT,  THE  NEW  YORK
 STATE  ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  AND AFFILIATES,
 SUBSIDIARIES OR SUBDIVISIONS THEREOF SHALL HAVE  THE  POWER  TO  PLEDGE,
 ASSIGN  OR  OTHERWISE  MAKE  AVAILABLE AS SECURITY FOR SUCH INDEBTEDNESS
 WITHOUT CONSIDERATION, REVENUES FROM STATE AID UNDER SUBDIVISION  FORTY-
 TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER AND BONDS OR OTHER
 INDEBTEDNESS  IN  CONNECTION  WITH  SUCH SUBDIVISION FORTY-TWO SHALL NOT
 REQUIRE VOTER APPROVAL.  The provisions of section four hundred  sixteen
 of this chapter shall be applicable to such districts.
   §  9. Paragraph a of section 11.00 of the local finance law is amended
 by adding a new subparagraph 109 to read as follows:
   109. PAYMENT BY SMALL CITY SCHOOL DISTRICTS FOR OBJECTS  AND  PURPOSES
 SET  FORTH IN SUBDIVISION FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF
 THE EDUCATION LAW AND AUTHORIZED UNDER SECTION TWENTY-FIVE HUNDRED THIR-
 TY OF THE EDUCATION LAW, TEN YEARS.
   § 10. Paragraph (b) of subdivision 2 of section  1676  of  the  public
 authorities  law  is  amended  by adding a new undesignated paragraph to
 read as follows:
   MAISTO DISTRICTS AS DEFINED BY PARAGRAPH  II  OF  SUBDIVISION  ONE  OF
 SECTION  THIRTY-SIX  HUNDRED  TWO  OF THE EDUCATION LAW AND THE NEW YORK
 STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS AS DEFINED BY PARAGRAPH
 HH OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION
 LAW, AND AFFILIATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF.
   § 11. Subdivision 1 of section 1680 of the public authorities  law  is
 amended by adding a new undesignated paragraph to read as follows:
   MAISTO  DISTRICTS  AS  DEFINED  BY  PARAGRAPH II OF SUBDIVISION ONE OF
 SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  AND  THE  NEW  YORK
 STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS AS DEFINED BY PARAGRAPH
 HH OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION
 LAW, AND AFFILIATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF.
   §  12. Section 1680 of the public authorities law is amended by adding
 a new subdivision 41 to read as follows:
   41. A. THE DORMITORY AUTHORITY MAY ENTER CONTRACTS TO LOAN TO OR OTHER
 AGREEMENTS WITH THE MAISTO DISTRICTS, THE NEW YORK STATE ASSOCIATION  OF
 SMALL  CITY  SCHOOL  DISTRICTS, AND AFFILIATES, SUBSIDIARIES OR SUBDIVI-
 SIONS THEREOF FOR THE FINANCING OF PROGRAMS AS SPECIFIED IN  SUBDIVISION
 FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW INCLUD-
 ING:
   (1) CREDIT RECOVERY PROGRAMS;

 S. 2300                             8

   (2) ACADEMIC INTERVENTION SERVICES;
   (3) RESPONSE TO INTERVENTION SERVICES;
   (4) DROP OUT PREVENTION;
   (5) INCARCERATED YOUTH SERVICES;
   (6) PARENT INVOLVEMENT PROGRAMS;
   (7) EXTENDED DAY AND EXTENDED YEAR PROGRAMS; AND
   (8) PSYCHO-SOCIAL TESTING.
 SUCH  PROGRAMS  SHALL  BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER OF
 EDUCATION.
   B. EACH MAISTO DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL  CITY
 SCHOOL  DISTRICTS,  AND AFFILIATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF
 SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  HAVE  THE  POWER  TO
 PLEDGE,  ASSIGN  OR  OTHERWISE MAKE AVAILABLE TO THE DORMITORY AUTHORITY
 WITHOUT CONSIDERATION, REVENUES FROM STATE AID UNDER SUBDIVISION  FORTY-
 TWO  OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SATISFACTORY
 TO THE DORMITORY AUTHORITY.
   C. IN ADDITION TO PROVIDING FOR ALL OTHER MATTERS DEEMED NECESSARY AND
 PROPER, SUCH CONTRACTS TO LOAN OR OTHER AGREEMENTS  SHALL:  (1)  REQUIRE
 PAYMENT  TO THE DORMITORY AUTHORITY THE AMOUNT REQUIRED TO PAY THE PRIN-
 CIPAL OF AND INTEREST ON OBLIGATIONS OF THE DORMITORY  AUTHORITY  ISSUED
 IN  RELATION  TO PROVIDING SUCH FINANCING AND ALL INCIDENTAL EXPENSES OF
 THE DORMITORY  AUTHORITY  INCURRED  IN  RELATION  THERETO;  (2)  REQUIRE
 PAYMENT  SUFFICIENT  TO MEET OBLIGATIONS UNDER SUCH CONTRACTS TO LOAN OR
 OTHER AGREEMENTS; (3) PROVIDE THAT THE  AID  PAYABLE  UNDER  SUBDIVISION
 FORTY-TWO  OF  SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SHALL
 BE THE SOLE SECURITY FOR SUCH FINANCING AND ALL INCIDENTAL EXPENSES; AND
 (4) NOT BE EXECUTED UNTIL SUCH PROGRAMS ARE APPROVED BY THE COMMISSIONER
 OF EDUCATION.
   D. (1) IN THE EVENT THAT THE MAISTO  DISTRICTS,  THE  NEW  YORK  STATE
 ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES
 OR  SUBDIVISIONS THEREOF FAIL TO MAKE ANY PAYMENT OF PRINCIPAL OR INTER-
 EST ON ITS OBLIGATIONS, THE DORMITORY AUTHORITY  SHALL  CERTIFY  TO  THE
 COMPTROLLER  OF  SUCH FAILURE. SUCH CERTIFICATE SHALL BE IN SUCH FORM AS
 THE AUTHORITY DEEMS DESIRABLE, BUT SHALL INCLUDE  THE  EXACT  AMOUNT  OF
 INTEREST  AND  PRINCIPAL  REQUIRED  TO  SATISFY  THE  OBLIGATIONS TO THE
 AUTHORITY.
   (2) THE COMPTROLLER, UPON RECEIPT OF SUCH CERTIFICATE FROM THE AUTHOR-
 ITY, SHALL WITHHOLD FROM THE MAISTO DISTRICTS, THE NEW YORK STATE  ASSO-
 CIATION  OF SMALL CITY SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES OR
 SUBDIVISIONS THEREOF ANY STATE AID PAYABLE TO SUCH ENTITY TO THE  EXTENT
 NECESSARY  TO  MEET  THE  CERTIFIED  AMOUNT OF INTEREST OR PRINCIPAL AND
 SHALL IMMEDIATELY PAY OVER TO THE CREDIT RECOVERY FINANCING RESERVE FUND
 THE AMOUNT SO WITHHELD.
   (3) PENDING PAYMENT TO THE AUTHORITY FROM THE COMPTROLLER OF ANY  SUCH
 STATE  AID  WITHHELD,  THE  AUTHORITY  SHALL, IF PAYMENTS OF INTEREST OR
 PRINCIPAL ARE DUE ON THE AUTHORITY'S BONDS, WITHDRAW  AN  AMOUNT  SUFFI-
 CIENT  TO  MEET SUCH AMOUNTS WITHHELD FROM THE DEBT SERVICE RESERVE FUND
 SECURING SUCH BONDS. ANY SUCH AMOUNT WITHDRAWN FROM  SUCH  DEBT  SERVICE
 RESERVE  FUND  SHALL  BE  PAID  INTO SUCH DEBT SERVICE RESERVE FUND UPON
 RECEIPT BY THE AGENCY FROM THE COMPTROLLER OF ANY  STATE  AID  WITHHELD.
 ANY  AMOUNT SO PAID TO THE AUTHORITY FROM SUCH STATE AID SHALL NOT OBLI-
 GATE THE STATE TO MAKE, NOR ENTITLE THE MAISTO DISTRICTS, THE  NEW  YORK
 STATE  ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  AND AFFILIATES,
 SUBSIDIARIES OR SUBDIVISIONS THEREOF TO RECEIVE, ANY ADDITIONAL  AMOUNTS
 OF STATE AID.

 S. 2300                             9
 
   E. ON OR BEFORE NOVEMBER FIFTEENTH OF EACH YEAR, THE DORMITORY AUTHOR-
 ITY  SHALL  SUBMIT,  AND THEREAFTER MAY RESUBMIT, TO THE DIRECTOR OF THE
 BUDGET, THE STATE  COMPTROLLER,  THE  CHAIRMAN  OF  THE  SENATE  FINANCE
 COMMITTEE  AND  THE  CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE A
 REPORT  SETTING  FORTH  THE AMOUNTS, IF ANY, OF ALL AMOUNTS ESTIMATED TO
 BECOME DUE IN THE SUCCEEDING STATE FISCAL YEAR TO THE DORMITORY AUTHORI-
 TY FROM EACH MAISTO DISTRICT, THE NEW YORK STATE  ASSOCIATION  OF  SMALL
 CITY  SCHOOL  DISTRICTS,  AND  AFFILIATES,  SUBSIDIARIES OR SUBDIVISIONS
 THEREOF PURSUANT TO SUCH CONTRACTS TO  LOAN  OR  OTHER  AGREEMENTS.  THE
 STATE COMPTROLLER SHALL PAY OVER TO THE DORMITORY AUTHORITY, PURSUANT TO
 APPROPRIATIONS  THEREFOR  AND SOLELY FROM MONEYS AVAILABLE IN THE CREDIT
 RECOVERY FINANCING RESERVE FUND ESTABLISHED BY SECTION NINETY-NINE-G  OF
 THE  STATE FINANCE LAW, THE AMOUNT SET FORTH IN SUCH REPORT AT THE TIMES
 AND IN THE AMOUNTS SET FORTH IN THE CERTIFICATE  FILED  WITH  THE  COMP-
 TROLLER BY THE DORMITORY AUTHORITY.
   F.  EACH MAISTO DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL CITY
 SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES OR  SUBDIVISIONS  THEREOF
 WHICH  ELECTS  TO  AVAIL  ITSELF OF THE PROVISIONS OF THIS SECTION SHALL
 HAVE ESTABLISHED WITH THE STATE COMPTROLLER A CREDIT RECOVERY  FINANCING
 RESERVE  ACCOUNT  WHICH  SHALL BE USED TO PAY TO THE DORMITORY AUTHORITY
 THE ANNUAL  AMOUNTS  PAYABLE  TO  THE  DORMITORY  AUTHORITY  UNDER  SUCH
 CONTRACTS TO LOAN OR OTHER AGREEMENTS PURSUANT TO THE PROVISIONS OF THIS
 SECTION AND SECTION NINETY-NINE-G OF THE STATE FINANCE LAW. THE DORMITO-
 RY  AUTHORITY SHALL IDENTIFY TO THE STATE COMPTROLLER AND TO THE COMMIS-
 SIONER  OF  EDUCATION  WITH  RESPECT  TO  SUCH  FINANCING,  EACH  MAISTO
 DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS,
 AND  AFFILIATES,  SUBSIDIARIES OR SUBDIVISIONS THEREOF WITH WHICH IT HAS
 SUCH CONTRACTS TO LOAN OR OTHER AGREEMENTS PURSUANT TO THIS SECTION  AND
 SHALL  ANNUALLY CERTIFY THE AMOUNTS REQUIRED TO BE PAID PURSUANT TO SUCH
 CONTRACTS TO LOAN OR OTHER AGREEMENTS.
   G. ALL STATE AND LOCAL OFFICIALS ARE AUTHORIZED AND REQUIRED  TO  TAKE
 WHATEVER  ACTIONS  ARE  NECESSARY  TO  CARRY  OUT THE PROVISIONS OF THIS
 SECTION AND THE PROVISIONS OF ANY CONTRACT TO LOAN OR  OTHER  AGREEMENTS
 ENTERED  INTO  PURSUANT  TO  THIS SECTION, INCLUDING MAKING THE REQUIRED
 PAYMENTS TO THE DORMITORY AUTHORITY.
   § 13. The state finance law is amended by adding a new section 99-g to
 read as follows:
   § 99-G. CREDIT RECOVERY FINANCING RESERVE FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL FUND TO BE
 KNOWN  AS  THE CREDIT RECOVERY FINANCING RESERVE FUND. WITHIN SUCH FUND,
 THERE IS HEREBY ESTABLISHED A SPECIAL ACCOUNT FOR EACH MAISTO  DISTRICT,
 THE  NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS, AND EACH
 AFFILIATE,  SUBSIDIARY  OR  SUBDIVISION  THEREOF  WHICH  ENTERS  INTO  A
 CONTRACT  TO LOAN OR OTHER AGREEMENT WITH THE DORMITORY AUTHORITY PURSU-
 ANT TO THIS SECTION.
   2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,  SUCH  FUND  SHALL
 CONSIST OF AID PAYABLE UNDER SUBDIVISION FORTY-TWO OF SECTION THIRTY-SIX
 HUNDRED TWO OF THE EDUCATION LAW.  THE COMPTROLLER SHALL MAINTAIN SUFFI-
 CIENT  AMOUNTS  IN  THE FUND IN ORDER TO PAY WHEN DUE AMOUNTS DUE TO THE
 DORMITORY AUTHORITY PURSUANT TO ANY CONTRACT TO LOAN OR OTHER  AGREEMENT
 ENTERED  INTO  PURSUANT TO THE PROVISIONS OF THIS SECTION. THE DORMITORY
 AUTHORITY SHALL CERTIFY TO THE STATE COMPTROLLER THE DATES AND AMOUNT OF
 SUCH ANNUAL PAYMENTS AS SCHEDULED IN ITS  CONTRACTS  TO  LOAN  OR  OTHER
 AGREEMENTS.    THE COMMISSIONER OF EDUCATION SHALL CERTIFY THE AMOUNT OF
 PAYMENTS DUE THE FUND FROM AID PAYABLE UNDER  SUBDIVISION  FORTY-TWO  OF
 SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.

 S. 2300                            10
 
   3.  REVENUES  IN  ANY SPECIAL ACCOUNT IN THE CREDIT RECOVERY FINANCING
 RESERVE FUND MAY BE COMMINGLED WITH ANY OTHER MONIES IN SUCH  FUND.  ALL
 DEPOSITS  OF  SUCH  REVENUES  WITH  BANKS  AND  TRUST COMPANIES SHALL BE
 SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OF NEW  YORK
 OR  ITS  POLITICAL  SUBDIVISIONS.  SUCH  OBLIGATIONS SHALL HAVE A MARKET
 VALUE AT LEAST EQUAL AT ALL TIMES TO, BUT NOT  LESS  THAN,  ONE  HUNDRED
 FIVE  PERCENT OF THE AMOUNT OF SUCH DEPOSITS. ALL BANKS AND TRUST COMPA-
 NIES ARE AUTHORIZED TO GIVE SECURITY FOR SUCH DEPOSITS. ANY SUCH  REVEN-
 UES  IN SUCH FUND MAY, IN THE DISCRETION OF THE COMPTROLLER, BE INVESTED
 IN OBLIGATIONS OF THE UNITED STATES OR  THE  STATE  OR  OBLIGATIONS  THE
 PRINCIPAL  OF  AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED STATES
 OR BY THE STATE.  ANY INTEREST EARNED SHALL BE CREDITED TO SUCH FUND.
   4. UPON RECEIPT BY THE COMPTROLLER OF A  CERTIFICATE  OR  CERTIFICATES
 FROM THE DORMITORY AUTHORITY THAT IT REQUIRES A PAYMENT OR PAYMENTS FROM
 THE  APPROPRIATE  SPECIAL  ACCOUNT IN ORDER FOR ANY MAISTO DISTRICT, THE
 NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL  DISTRICTS,  AND  AFFIL-
 IATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF TO COMPLY WITH SUCH CONTRACT
 TO  LOAN  OR  OTHER  AGREEMENT  PURSUANT  TO THIS SECTION, EACH OF WHICH
 CERTIFICATES SHALL SPECIFY THE REQUIRED PAYMENT OR PAYMENTS AND THE DATE
 WHEN THE PAYMENT OR PAYMENTS IS REQUIRED, THE COMPTROLLER SHALL PAY FROM
 SUCH SPECIAL ACCOUNT ON OR BEFORE THE SPECIFIED DATE  OR  WITHIN  THIRTY
 DAYS  AFTER  RECEIPT  OF  SUCH CERTIFICATE OR CERTIFICATES, WHICHEVER IS
 LATER, TO THE PAYING AGENT DESIGNATED BY THE DORMITORY AUTHORITY IN  ANY
 SUCH CERTIFICATE, THE AMOUNT OR AMOUNTS SO CERTIFIED.
   5.  ALL  PAYMENTS  OF MONEY FROM THE CREDIT RECOVERY FINANCING RESERVE
 FUND SHALL BE MADE ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER.
   § 14. This act shall take effect July 1, 2017.