Senate Bill S7524

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7524
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2025
                                ___________
 
 Introduced  by Sen. MARTINEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the local finance law, in relation to authorizing school
   districts to borrow against certain reserve funds; and  to  amend  the
   general  municipal  law,  in relation to making a technical correction
   thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  local finance law is amended by adding a new section
 25.11 to read as follows:
   § 25.11 BORROWING FROM RESERVE FUNDS. A. 1. PURSUANT TO  A  RESOLUTION
 ADOPTED  BY  THE  BOARD OF EDUCATION OF ANY SCHOOL DISTRICT, SUCH SCHOOL
 DISTRICT MAY BORROW FROM CERTAIN RESERVE FUNDS TO REDUCE RELIANCE ON TAX
 ANTICIPATION NOTES AND REVENUE ANTICIPATION NOTES.
   2. SUCH RESOLUTION SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A) THE AMOUNT TO BE BORROWED;
   (B) THE RESERVE FROM WHICH THE SCHOOL DISTRICT INTENDS TO BORROW;
   (C) THE AMOUNT AND SOURCE OF TAXES OR OTHER REVENUE ANTICIPATED TO  BE
 RECEIVED; AND
   (D)  THE TIMEFRAME IN WHICH SUCH TAXES OR OTHER REVENUE IS ANTICIPATED
 TO BE RECEIVED AND THE SCHEDULE UPON  WHICH  REPAYMENT  SHALL  BE  MADE,
 INCLUDING  A  SPECIFIC DATE FOR FINAL REPAYMENT; PROVIDED, HOWEVER, THAT
 NOTHING SHALL PROHIBIT A SCHOOL DISTRICT FROM PAYING AHEAD OF SUCH SCHE-
 DULE.
   3. SCHOOL DISTRICTS SHALL NOT BORROW IN EXCESS OF SEVENTY-FIVE PERCENT
 OF THE TOTAL OF EACH RESERVE FUND.
   B. 1. BORROWING FROM RESERVE FUNDS  SHALL  BE  LIMITED  TO  TAXES  AND
 REVENUE ANTICIPATED TO BE RECEIVED IN THE SAME FISCAL YEAR IN WHICH SUCH
 BORROWING  TAKES  PLACE;  PROVIDED,  HOWEVER,  THAT DURING THE FINAL TWO
 WEEKS OF A GIVEN FISCAL YEAR, SUCH  BORROWING  MAY  BE  INITIATED  BY  A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11685-01-5
 S. 7524                             2
              

 
 SCHOOL  DISTRICT IN ANTICIPATION OF MONEYS TO BE RECEIVED IN THE FOLLOW-
 ING FISCAL YEAR.
   2.  FINAL  REPAYMENT SHALL BE SCHEDULED WITHIN THE SAME FISCAL YEAR IN
 WHICH THE BORROWING TAKES PLACE; PROVIDED, HOWEVER, THAT IF SUCH BORROW-
 ING WAS INITIATED IN THE FINAL TWO WEEKS OF THE  PRIOR  FISCAL  YEAR  IN
 ANTICIPATION  OF MONEYS TO BE RECEIVED IN THE CURRENT FISCAL YEAR PURSU-
 ANT TO SUBDIVISION ONE OF THIS PARAGRAPH, SUCH FINAL  REPAYMENT  MAY  BE
 SCHEDULED  WITHIN  THE  FISCAL YEAR DURING WHICH SUCH ANTICIPATED MONEYS
 ARE RECEIVED.
   C. THE FOLLOWING RESERVE FUNDS MAY BE BORROWED FROM PURSUANT TO  PARA-
 GRAPH A OF THIS SECTION:
   1.  WORKERS' COMPENSATION RESERVE FUND, AS AUTHORIZED BY SECTION SIX-J
 OF THE GENERAL MUNICIPAL LAW;
   2. UNEMPLOYMENT INSURANCE  PAYMENT  RESERVE  FUND,  AS  AUTHORIZED  BY
 SECTION SIX-M OF THE GENERAL MUNICIPAL LAW;
   3.  REPAIR RESERVE FUND, AS AUTHORIZED BY SECTION SIX-D OF THE GENERAL
 MUNICIPAL LAW;
   4. INSURANCE RESERVE FUND, AS  AUTHORIZED  BY  SECTION  SIX-N  OF  THE
 GENERAL MUNICIPAL LAW;
   5.  PROPERTY  LOSS  RESERVE  FUND,  AS AUTHORIZED BY SECTION SEVENTEEN
 HUNDRED NINE OF THE EDUCATION LAW;
   6. EMPLOYEE BENEFIT ACCRUED LIABILITY RESERVE FUND, AS  AUTHORIZED  BY
 SECTION SIX-P OF THE GENERAL MUNICIPAL LAW; AND
   7.  TAX  REDUCTION  RESERVE  FUND,  AS  AUTHORIZED BY SECTIONS SIXTEEN
 HUNDRED FOUR AND SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW.
   § 2. The section heading of section 6-j of the general municipal  law,
 as  amended  by  chapter  704 of the laws of 1956, is amended to read as
 follows:
   [Workmen's] WORKERS' compensation reserve fund.
   § 3. This act shall take effect the first of July next succeeding  the
 date on which it shall have become a law.