S T A T E O F N E W Y O R K
________________________________________________________________________
8003
2025-2026 Regular Sessions
I N S E N A T E
May 15, 2025
___________
Introduced by Sen. MAYER -- 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 lease terms for zero-
emission school buses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 21-a of section 1604 of the education law, as
amended by chapter 563 of the laws of 2024, is amended to read as
follows:
21-a. To lease a motor vehicle or vehicles to be used for the trans-
portation of the children of the district from a school district, board
of cooperative educational services or county vocational education and
extension board or from any other source, under the conditions specified
in this subdivision. No such agreement for the lease of a motor vehicle
or vehicles shall be for a term of more than one school year, provided
that when authorized by a vote of the qualified voters of the district
such lease may have a term of up to five years, or [eight] TWELVE years
for the lease of zero-emission school buses as defined in section thir-
ty-six hundred thirty-eight of this chapter. Where the trustee or board
of trustees enter into a lease of a motor vehicle or vehicles pursuant
to this subdivision for a term of one school year or less, such trustee
or board shall not be authorized to enter into another lease for the
same or an equivalent replacement vehicle or vehicles, as determined by
the commissioner, without obtaining approval of the qualified voters of
the school district.
§ 2. Paragraph i of subdivision 25 of section 1709 of the education
law, as amended by chapter 563 of the laws of 2024, is amended to read
as follows:
i. In addition to the authority granted in paragraph e of this subdi-
vision, the board of education shall be authorized to lease a motor
vehicle or vehicles to be used for the transportation of the children of
the district from sources other than a school district, board of cooper-
ative educational services or county vocational education and extension
board under the conditions specified in this paragraph. No such agree-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13103-01-5
S. 8003 2
ment for the lease of a motor vehicle or vehicles shall be for a term of
more than one school year, provided that when authorized by a vote of
the qualified voters of the district such lease may have a term of up to
five years, or [eight] TWELVE years for the lease of zero-emission
school buses as defined in section thirty-six hundred thirty-eight of
this chapter. Where the board of education enters a lease of a motor
vehicle or vehicles pursuant to this paragraph for a term of one school
year or less, such board shall not be authorized to enter into another
lease of the same or an equivalent replacement vehicle or vehicles, as
determined by the commissioner, without obtaining approval of the
voters.
§ 3. Paragraph e of subdivision 7 of section 3602 of the education
law, as amended by chapter 563 of the laws of 2024, is amended to read
as follows:
e. In determining approved transportation capital, debt service and
lease expense for aid payable in the two thousand five--two thousand six
school year and thereafter, the commissioner, after applying the
provisions of paragraph c of this subdivision to such expense, shall
establish an assumed amortization pursuant to this paragraph to deter-
mine the approved capital, debt service and lease expense of the school
district that is aidable in the current year, whether or not the school
district issues debt for such expenditures, subject to any deduction
pursuant to paragraph d of this subdivision. Such assumed amortization
shall be for a period of five years, and for the two thousand twenty-
two--two thousand twenty-three school year and thereafter such assumed
amortization for zero-emission school buses as defined in section thir-
ty-six hundred thirty-eight of this article and related costs pursuant
to paragraph f of subdivision two of section thirty-six hundred twenty-
three-a of this article shall be for a period of eight years, PROVIDED
THAT WHERE A DISTRICT ENTERS INTO A LEASE AGREEMENT LONGER THAN EIGHT
YEARS SUCH ASSUMED AMORTIZATION PERIOD SHALL BE THE LENGTH OF SUCH LEASE
AGREEMENT, and shall commence twelve months after the school district
enters into a purchase contract or lease of the school bus, charging
station, hydrogen fueling station, or equipment, or a general contract
for the construction, reconstruction, lease or purchase of a transporta-
tion storage facility or site in an amount less than ten thousand
dollars. Such assumed amortization shall provide for equal semiannual
payments of principal and interest based on an assumed interest rate
established by the commissioner pursuant to this paragraph. By the first
day of September of the current year commencing with the two thousand
five--two thousand six school year, each school district shall provide
to the commissioner in a format prescribed by the commissioner such
information as the commissioner shall require for all capital debt
incurred by such school district during the preceding school year for
expenses allowable pursuant to subdivision two of section thirty-six
hundred twenty-three-a of this article. Based on such reported amorti-
zations and a methodology prescribed by the commissioner in regulations,
the commissioner shall compute an assumed interest rate that shall equal
the average of the interest rates applied to all such debt issued during
the preceding school year. The assumed interest rate shall be the inter-
est rate of each such school district applicable to the current year for
the purposes of this paragraph and shall be expressed as a decimal to
five places rounded to the nearest eighth of one-one hundredth.
§ 4. This act shall take effect on the same date and in the same
manner as chapter 563 of the laws of 2024, takes effect.