S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8255
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 27, 2025
                                ___________
 
 Introduced  by  Sen.  SERRANO  --  (at request of the NYS Council on The
   Arts) -- read twice and  ordered  printed,  and  when  printed  to  be
   committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation to the New York state
   musical instrument revolving fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 97-v of the state finance law, as added by  chapter
 851  of  the laws of 1983, subdivision 3 as amended by chapter 83 of the
 laws of 1995, is amended to read as follows:
   § 97-v. New York state  [musical  instrument  revolving]  MUSIC  GRANT
 fund.  1.  There is hereby established in the custody of the state comp-
 troller, a special fund to be known as  the  "New  York  state  [musical
 instrument revolving] MUSIC GRANT fund".
   2.  The fund shall consist of all monies appropriated for its purpose,
 all monies transferred to such fund  pursuant  to  law  and  all  monies
 required  by  the provisions of this section or any other law to be paid
 into or credited to this fund, including all monies received by the fund
 or donated to it. The total of monies deposited as a result of appropri-
 ations from state funds into this fund shall not exceed the sum of  five
 hundred  thousand dollars. Monies in the fund shall be kept separate and
 shall not be commingled with any other monies otherwise appropriated  or
 received except as hereby provided.
   3.  Monies  of the fund, when allocated, shall be available to the New
 York state council on the arts for the purpose of providing  assistance,
 excluding  administrative  costs,  for  [the loan, lease and purchase of
 musical instruments and other related property and equipment, as  herein
 provided,  by] GRANTS TO not-for-profit symphony orchestras and/or other
 not-for-profit musical entities incorporated in the state and  organized
 for  the  purpose of the presentation of performing arts for the benefit
 of the public and which have been approved pursuant to guidelines estab-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09945-01-5
              

 S. 8255                             2
 
 lished by the council. Such monies shall also be available for  adminis-
 trative costs of the council pursuant to approval by the director of the
 budget. [Notwithstanding any other inconsistent provisions of this chap-
 ter,  should  the  council determine that there is a compelling need for
 the loan, lease or purchase of property or equipment other than  musical
 instruments  by not-for-profit symphony orchestras and/or other not-for-
 profit musical entities incorporated in the state and organized for  the
 purpose  of  the  presentation of performing arts for the benefit of the
 public, and upon approval of the director of the budget, the council may
 assist such organization in acquiring such equipment in accordance  with
 guidelines  established  by the council. The council shall contract with
 one or more not-for-profit entities which shall distribute such  monies,
 however,  in no case shall monies of the fund be distributed nor shall a
 contract to distribute such monies be approved  unless  the  fund  shall
 have sufficient monies to effectuate all such approved distributions and
 contracts.
   Purchases, leases and loans of musical instruments and other equipment
 shall not be approved or effected if such purchases, leases or loans are
 eligible for financing from any other state assistance program.]
   4. [The state council on the arts shall establish guidelines necessary
 to administer the fund. Guidelines shall include, but not be limited to:
 qualifications  and  conditions for assistance, which may require public
 service performances, terms of lease or installment  sale  payments  and
 finance  charges  on  installment  sales  at  rates  of  interest which,
 notwithstanding any other provision of law, shall not be less than three
 per cent per annum nor more than ten per cent per annum, provisions  for
 insurance of the instrument or other equipment, provisions for necessary
 security  agreement arrangements, and any other terms and conditions the
 council may require as necessary to properly effectuate  the  provisions
 of this section.
   5.  The  not-for-profit entity of entities with whom the state council
 on the arts has contracted pursuant to subdivision three of this section
 shall enter into contractual arrangements with  applicants  approved  by
 the  council. All contracts must be approved by the state council on the
 arts and the comptroller prior to the distribution of any monies  there-
 under.  Such  contracts  shall  assure that the not-for-profit entity or
 entities  retain  title  to  the  instrument  or  equipment  until   the
 provisions and intent of this section are satisfied.
   6.  Notwithstanding  any  other provisions of law, should a default in
 payment of monies for the purchase or lease of an  instrument  or  other
 equipment  occur,  the  council  shall so notify the comptroller and the
 attorney general who shall take such steps  as  may  be  necessary.  The
 not-for-profit  entity  or  entities,  after  such notification is made,
 shall take steps to effect repossession regardless of whether any  note,
 memorandum,  instrument or other writing has been recorded or regardless
 of whether any other person has notice of such possessory rights to  the
 instrument  or equipment. Any contract between the not-for-profit agency
 or agencies and a not-for-profit symphony  orchestra  or  other  musical
 entity  authorized  by  this article, shall assure the right and provide
 guarantees for such repossession. Subsequent to the taking of possession
 of the instrument or equipment, the comptroller or not-for-profit agency
 or agencies may offer the same for sale at public auction to the highest
 bidder pursuant to guidelines established by the comptroller.
   7. The comptroller is authorized to deduct the difference between  the
 purchaser's  or  lessee's  outstanding  obligation  at  the  time of the
 auction provided for in subdivision five of this section, and the amount
 S. 8255                             3

 realized from that auction, after deductions for all necessary and prop-
 er costs of the auction are made, from any other grant or other  assist-
 ance approved by the council on the arts for that purchaser. The differ-
 ence  deducted  by  the comptroller and the net amount realized from the
 auction shall be deposited in the  New  York  state  musical  instrument
 revolving fund.
   8.]  Nothing contained herein shall prevent the council from receiving
 grants, gifts or bequests for the purposes of the  fund  as  defined  in
 this section and depositing them into the fund according to law.
   [9.  The state council on the arts shall provide by September first of
 each year, to the governor, the temporary president of the  senate,  the
 speaker  of  the  assembly, the chairman of the senate finance committee
 and the chairman of the assembly ways  and  means  committee,  a  report
 containing guidelines and amendments established by the state council on
 the  arts  and a complete financial statement including, but not limited
 to, monies allocated, collected, transferred or otherwise paid or  cred-
 ited  to  the  fund. A projected schedule of disbursements, receipts and
 needs of the fund for the next fiscal year shall  be  included  in  each
 report.  In addition, any amendments to the guidelines shall be provided
 to the above listed individuals within thirty days of  their  establish-
 ment by the state council on the arts.
   10.] 5. No monies shall be payable from this fund, except on the audit
 and  warrant  of  the comptroller on vouchers certified and submitted by
 the [chairman of the] state council on the arts.
   § 2. This act shall take effect immediately.