S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2318
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2025
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Education
 
 AN  ACT  to amend the local finance law, in relation to the exclusion of
   certain indebtedness of school districts in a city  with  one  hundred
   twenty-five thousand inhabitants or more

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 121.20 of the local  finance  law,  as  amended  by
 chapter  506  of the laws of 1964, paragraph b as amended by chapter 116
 of the laws of 1968, is amended to read as follows:
   § 121.20[.] Exclusion of  certain  indebtedness  of  school  districts
 other than school districts in a city WITH ONE HUNDRED TWENTY-FIVE THOU-
 SAND  INHABITANTS  OR  MORE  ACCORDING  TO  THE LATEST FEDERAL CENSUS in
 ascertaining their power to contract indebtedness. a. As  used  in  this
 section:
   1.  The term "indebtedness" shall mean indebtedness evidenced by bonds
 and bond anticipation notes.
   2. The term "school district" shall mean a school district other  than
 a school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHAB-
 ITANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS.
   b.  In ascertaining the power of a school district to contract indebt-
 edness, there may be excluded outstanding  indebtedness  contracted,  or
 indebtedness to be contracted, for objects or purposes having periods of
 probable  usefulness  provided  in  paragraph [a.] A of section 11.00 of
 this chapter, to the extent to which the commissioner of  education,  or
 such  person  or persons as may be designated by [him] THE COMMISSIONER,
 shall estimate based upon facts existing on the date  of  such  estimate
 that  moneys  receivable  by  the  school  district from the state as an
 apportionment for debt service for school building purposes, under  laws
 existing  on  the  date of such estimate, shall meet the interest on and
 the annual requirements for the payment of such indebtedness.  Any  such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01974-01-5
              

 A. 2318                             2
 
 estimate  shall  describe the indebtedness to which it relates. An esti-
 mate shall be effective only until the June  thirtieth  next  succeeding
 the date thereof.
   c.  The  commissioner of education by rule or regulation may prescribe
 the manner and form in which a school district  shall  make  application
 for  any such estimate. The department of education shall furnish to the
 school district, without charge, three  certified  copies  of  any  such
 estimate.
   §  2. Section 121.30 of the local finance law, as added by chapter 382
 of the laws of 1962, is amended to read as follows:
   § 121.30 Exclusion of certain indebtedness of school  districts  other
 than  school  districts  in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND
 INHABITANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS.   In  ascer-
 taining  the power of a school district, other than a school district in
 a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR MORE ACCORD-
 ING TO THE LATEST FEDERAL CENSUS, to contract indebtedness under section
 104.00 of this [chapter] ARTICLE,  there  may  be  excluded  outstanding
 bonds  and  bond  anticipation  notes  or  indebtedness  proposed  to be
 contracted and to be evidenced by bonds or bond  anticipation  notes  to
 finance  the  acquisition, construction and installation of a shelter or
 fallout shelter by such school  district  pursuant  to  section  twenty-
 three-a  of  the  New  York state defense emergency act, but only to the
 extent to which such indebtedness, at the time it was contracted  or  is
 to be contracted, did not or will not exceed fifty dollars multiplied by
 the planned shelter occupancy of such shelter.
   §  3.  Section  137.00 of the local finance law, as amended by chapter
 760 of the laws of 1963, is amended to read as follows:
   § 137.00 Debt statement of school districts outside  cities  WITH  ONE
 HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR MORE ACCORDING TO THE LATEST
 FEDERAL  CENSUS.   The debt statement of a school district, other than a
 school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABIT-
 ANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS, shall  contain  the
 following  items  of indebtedness for the purpose of showing the indebt-
 edness of such school district:
   1. The amount of
   (a) Outstanding bonds;
   (b) Outstanding bond anticipation notes, other than  those  issued  in
 anticipation of the bonds of the issue in connection with which the debt
 statement is prepared;
   (c)  Bonds  of  the  proposed  issue in connection with which the debt
 statement is prepared; and
   (d) Bond anticipation notes proposed to be issued where a debt  state-
 ment is prepared in connection with the issuance of such notes.
   2.  The  amount of indebtedness of a merged or annexed school district
 determined pursuant to section 121.10 of this [chapter] ARTICLE.
   For the purpose of showing the  indebtedness  of  a  school  district,
 other  than  a  school  district  in a city WITH ONE HUNDRED TWENTY-FIVE
 THOUSAND INHABITANTS OR MORE ACCORDING TO  THE  LATEST  FEDERAL  CENSUS,
 there may be deducted the amount of any such indebtedness which has been
 contracted  or  is  proposed  to be contracted to the extent provided in
 section 121.20 of this [chapter] ARTICLE, and in such case  a  certified
 copy  of the estimate of the commissioner of education shall be attached
 to and form a part of the debt statement  filed  with  the  state  comp-
 troller and the clerk of the school district.
   For the purpose of showing the indebtedness of a school district other
 than  a  school district in a city WITH ONE HUNDRED TWENTY-FIVE THOUSAND
 A. 2318                             3
 
 INHABITANTS OR MORE ACCORDING TO THE LATEST FEDERAL CENSUS, there may be
 deducted the amount of indebtedness contracted, or indebtedness proposed
 to be contracted, for the purpose and to the extent provided in  section
 121.30 of this [chapter] ARTICLE.
   In  connection  with  the  sale  of  bond anticipation notes, a school
 district may prepare a debt statement and may file such statement in the
 manner provided in section 109.00 of this [chapter] ARTICLE.
   § 4. This act shall take effect immediately.