2001-02 ELFA Omnibus Article 7 Bill


     Legislative Bill Drafting Commission
                  12022-01-1

     S.        --------
                SENATE
               --------

     IN SENATE--Introduced by Sen

     --read twice and ordered printed,
     and when printed to be committed
     to the Committee on

               -------- A.
               ASSEMBLY
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     IN ASSEMBLY--Introduced by M. of A.

     --read  once  and  referred  to  the
     Committee on

     *EDUCLA*
     (Enacts provisions of law  necessary
     to  implement  the  2001-2002 Educa-
     tion, Labor  and  Family  Assistance
     budget  pursuant to Article 7 of the
     Constitution)

                   --------

     Ed L. ELFA  Omnibus Article 7

                    AN ACT

     to  amend  the  education  law,   in
     relation   to  the  calculation  and
     payment  of  state  aid  to   school
     districts  and boards of cooperative
     educational services, in relation to
     the reporting  requirements  of  the
     commissioner   and   the   board  of
     regents,  in  relation   to   school
     district reorganization, in relation
     to  school facility report cards, in
     relation to  the  apportionment  for
     capital outlays and debt service for
     school  building  purposes,  and  in
     relation to merit  based  awards  to

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     recognize    and   reward   improved
     student   performance;   to   repeal
     certain  provisions of the education
     law  relating  thereto; to amend the
     local finance law,  in  relation  to
     periods  of  probable usefulness; to
     amend the public authorities law, in
     relation   to   the   financing   of
     construction  of educational facili-
     ties by the dormitory authority;  to
     amend the state finance law, chapter
     375 of the laws of 2000, authorizing
     the city school district of the city
     of  Schenectady  to finance deficits
     by  the  issuance  of  serial  bonds
     and/or  bond  anticipation notes; to
     amend chapter 507  of  the  laws  of
     1974,  relating  to apportionment of
     state  monies   for   services   for
     nonpublic students in complying with
     certain  state requirements; chapter
     88 of the laws of 2000, amending the
     tax law relating to authorizing  the
     accelerated payment of certain state
     apportionments  to  the  city school
     districts of the cities  of  Buffalo
     and  Yonkers, chapter 60 of the laws
     of 2000, amending the education  law
     and  other laws relating to enacting
     major components necessary to imple-
     ment  the  2000-2001  state   fiscal
     plan, and chapter 405 of the laws of
     1999, amending the real property tax
     law   and  other  laws  relating  to
     enacting major components  necessary
     to  implement  the  1999-2000  state
     fiscal plan, in relation  to  making
     technical  corrections  thereto  and
     clarifying legislative  intent  with
     regard to certain advances; to amend
     chapter  221  of  the  laws  of 1998
     relating to adjusting certain  state
     aid  payments  to  the Syracuse city
     school  district,  the  Utica   city
     school district and the Gloversville
     enlarged    city   school   district
     regarding   employment   preparation
     aid, in relation to making technical
     corrections  thereto; to amend chap-
     ter 82 of the laws of 1995, amending
     the education law and certain  other
     laws relating to state aid to school
     districts  and  the appropriation of
     funds for the support of government,
     in  relation  to  special  education

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     class  size; to amend chapter 169 of
     the  laws  of  1994,   relating   to
     certain  provisions  related  to the
     1994-95  state  operations,  aid  to
     localities,  capital  projects   and
     debt  services  budgets, in relation
     to  certain  expiration  and  repeal
     dates   contained  therein;  and  to
     amend chapter 756  of  the  laws  of
     1992,  relating to funding a program
     for work force  education  conducted
     by  the consortium for worker educa-
     tion in New York city,  in  relation
     to  reimbursement  (A); to amend the
     arts and cultural affairs  law,  the
     state finance law, the parks, recre-
     ation and historic preservation law,
     the  executive  law and the not-for-
     profit corporation law, in  relation
     to   establishing   the   office  of
     cultural resources and providing for
     the orderly transfer  of  all  func-
     tions,  powers,  duties, obligations
     and assets of the office of cultural
     education  located  in   the   state
     education  department  to the office
     of cultural resources, and to repeal
     certain provisions of the  education
     law  relating  thereto (B); to amend
     the real property tax law,  the  tax
     law,  the administrative code of the
     city of New York, the state  finance
     law   and   the  education  law,  in
     relation to protecting the  taxpayer
     savings  and  improving the adminis-
     tration of  the  school  tax  relief
     (STAR)  program  and  establishing a
     Co-STAR program (C);  to  amend  the
     real  property  tax law, in relation
     to the  rail  access  tax  incentive
     program  (D); to amend the education
     law, in relation to the compilation,
     review and disposition of the crimi-
     nal history  records  of  applicants
     for  employment in school districts,
     boards  of  cooperative  educational
     services and charter schools (E); to
     amend the executive law, in relation
     to  reimbursement  and  fiscal sanc-
     tions for detention services (F); to
     amend the executive law, in relation
     to the transfer of  juvenile  offen-
     ders from the office of children and
     family services to the department of
     correctional services; and to repeal

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     certain   provisions   of  such  law
     pertaining thereto (G); to amend the
     education law, in relation to  state
     aid  to  certain  independent insti-
     tutions of higher learning  (H);  to
     amend the education law, in relation
     to  increased  flexibility  of state
     university and  city  university  in
     administrative  and fiscal functions
     respecting  the   establishment   of
     tuition  rates for graduate programs
     (I); and to amend the civil  service
     law,  the  education law and chapter
     363 of the laws of 1998 amending the
     education  law  relating  to   state
     university  health care services and
     facilities, in relation to the oper-
     ation of the state university health
     care facilities (J)

       The People of  the  State  of  New
     York,   represented  in  Senate  and
     Assembly, do enact as follows:

                                         5                         12022-01-1

  1    Section  1.  This  act enacts into law major components of legislation

  2  which are necessary to implement the state fiscal plan for the 2001-2002

  3  state fiscal year.  Each component is wholly  contained  within  a  Part

  4  identified  as Parts A through J. The effective date for each particular

  5  provision contained within such Part is set forth in the last section of

  6  such Part. Any provision in any section contained within a Part, includ-

  7  ing the effective date of the Part, which makes reference to  a  section

  8  "of  this  act", when used in connection with that particular component,

  9  shall be deemed to mean and refer to the corresponding  section  of  the

 10  Part  in  which  it  is  found. Section three of this act sets forth the

 11  general effective date of this act.

 12                                   PART A

 13  Section 1. Subdivision 1 of section  215-a  of  the  education  law,  as

 14  amended  by  chapter  44  of  the  laws  of  2000, is amended to read as

 15  follows:

 16    1. The regents of the university  of  the  state  of  New  York  shall

 17  prepare  and  submit  to  the  governor,  the temporary president of the

 18  senate, and the speaker of the assembly, not later than the   first  day

 19  of  January,  nineteen  hundred eighty-nine, nineteen hundred ninety and

 20  nineteen hundred ninety-one and the  fifteenth day of  February  June of

 21  each year  thereafter , a report concerning the  schools  of  the  state

 22  which shall set forth with respect to the preceding school year: enroll-

 23  ment  trends;  indicators  of  student  achievement in reading, writing,

 24  mathematics, science and vocational courses; graduation, college attend-

 25  ance and employment rates; such other indicators of student  performance

 26  as  the  regents  shall  determine;  information  concerning teacher and

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  1  administrator preparation, turnover, in-service education  and  perform-

  2  ance;  information  concerning  school  library  expenditures and school

  3  library media specialist employment; expenditure per  pupil  on  regular

  4  education  and expenditure per pupil on special education and such other

  5  information as requested by the governor, the temporary president of the

  6  senate, or the speaker of the assembly. To the extent  practicable,  all

  7  such  information  shall be displayed on both a statewide and individual

  8  district basis and by racial/ethnic group and gender.  The  regents  are

  9  authorized  to  require  school  districts, boards of cooperative educa-

 10  tional services and nonpublic schools to provide such information as  is

 11  necessary  to  prepare  the report. In preparing the report, the regents

 12  shall consult with other  interested  parties,  including  local  school

 13  districts,  teachers'  and faculty organizations, school administrators,

 14  parents and students.

 15    § 2. Paragraph c of subdivision 21 of section  305  of  the  education

 16  law,  as added by chapter 474 of the laws of 1996, is amended to read as

 17  follows:

 18    c. The commissioner shall transmit a report in support of the  general

 19  support  for  public schools appropriation to the director of the budget

 20  and each such  committee  chair  containing  schedules  displaying  such

 21  apportionments  then  due  and  owing,  including  updated  data for the

 22  current audit year,  seven  five preceding audit years and the estimated

 23  year, to coincide with each such update  and  by  September  first  with

 24  respect to payments due for the preceding school year.

 25    §  3. Subdivision 1 of section 314 of the education law, as amended by

 26  chapter 745 of the laws of 1965, is amended to read as follows:

 27    1. The commissioner of  education   is  hereby  authorized  to   shall

 28  continue  the  investigations,  study and review carried on by the joint

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  1  legislative committee on the state education system in order to bring up

  2  to date by January fifteenth, two thousand two the state plan for school

  3  district reorganization  (legislative  document  number  twenty-five  of

  4  nineteen  hundred  forty-seven,  formerly referred to as the Master Plan

  5  for School District Reorganization in New York State);   to   and  shall

  6  make  such  studies  and surveys as are necessary to review periodically

  7  and maintain such plan currently ;  on or after such date.  The  commis-

  8  sioner  is authorized to hold hearings in relation to affected areas for

  9  the purpose of eliciting the  expression  of  opinion,  cooperation  and

 10  assistance of the inhabitants of such areas; and to make recommendations

 11  based  on  existing national research, including research on the effects

 12  of school size on student achievement for school district reorganization

 13  so as to assure the most efficient and economical provision of education

 14  services and facilities  for  such  areas  in  order  to  improve  pupil

 15  performance and success in achieving high learning standards that are in

 16  the  best educational interests of the children in the area. Such recom-

 17  mendations shall be principally directed toward  the  reorganization  of

 18  areas   in  and  around  the city school districts of cities having less

 19  than one hundred twenty-five thousand inhabitants, the reorganization of

 20  the remaining common and union free school  districts  not  included  in

 21  such  urban  and  suburban  areas  and the reorganization of the smaller

 22  central school districts  in which  pupil  performance  and  success  in

 23  achieving  high  learning standards have been impaired by organizational

 24  factors including the inefficient size and/or other addressable  factors

 25  causing  the  uneconomical  provision  of  such  educational services or

 26  facilities.

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  1    § 4. Subdivisions 1 and 2 of section 409-d of the  education  law,  as

  2  added  by  section  1  of  part B of chapter 56 of the laws of 1998, are

  3  amended to read as follows:

  4    1.  Program establishment. The commissioner is authorized and directed

  5  to establish, develop and monitor a comprehensive public school building

  6  safety program which shall include a uniform inspection, safety  rating,

  7   and   monitoring system, and facility report cards.  Such program shall

  8  require the annual inspection of all public school buildings  throughout

  9  New  York state; establish a safety rating system for such school build-

 10  ings to assess the need for maintenance, repairs, rehabilitation, recon-

 11  struction, construction and other improvements related to the structural

 12  integrity and overall safety of public school  buildings  including  but

 13  not  limited  to building systems related to electrical, plumbing, heat-

 14  ing, ventilation, and air conditioning, sanitation and health, fire  and

 15  accident  protection;  and  require  that  such  ratings be used for the

 16  purpose of developing a buildings condition survey as required  pursuant

 17  to  subdivision  four  of  section  thirty-six hundred forty-one of this

 18  chapter and a five year facilities plan as required pursuant  to  clause

 19  (i)  of  subparagraph  two  of paragraph b of subdivision six of section

 20  thirty-six hundred two of this chapter.

 21    2. Commissioner's authorization. In implementing    the  program,  the

 22  commissioner is authorized to:

 23    (a)  require  the  inspection  of  every  public  school  building and

 24  prescribe qualifications of persons who may perform  or  supervise  such

 25  inspections in accordance with the provisions of this section.

 26    (b) establish a safety rating system keyed to the structural integrity

 27  and  overall  safety of the building. Such system shall rate every major

 28  building system contained within a building and where practicable  iden-

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  1  tify  critical  maintenance  and  include  such  information in the plan

  2  required in subdivision ten of section thirty-six hundred  forty-one  of

  3  this chapter;

  4    (c)  require  each  school  district  to develop a buildings condition

  5  survey;

  6    (d) require each school district to develop a five year capital facil-

  7  ities plan;

  8    (e) establish a process for monitoring all school buildings;  and 

  9    (f) provide for waivers of the requirements  of  this  section  and/or

 10  section  four  hundred nine-e of this article for districts whose school

 11  building safety inspection procedures in existence on the effective date

 12  of this section are in substantial compliance with such requirements . ;

 13  and

 14    (g) require each school district and board of cooperative  educational

 15  services  to  develop  an  annual  school  facility report card for each

 16  school building.

 17    § 5. Section 409-e of the education law is amended  by  adding  a  new

 18  subdivision 5 to read as follows:

 19    5.  School facility report cards. a. Each school district and board of

 20  cooperative educational services shall develop a school facility  report

 21  card in accordance with this subdivision for each public school building

 22  for  which  a safety rating is required pursuant to subdivision three of

 23  this section. Such school facility report cards shall first be  provided

 24  to  the  commissioner, in such form as the commissioner shall determine,

 25  by February fifteenth, two thousand three and shall be updated  annually

 26  by  February  fifteenth  of  each  year  thereafter. The school facility

 27  report card for each building shall be reviewed annually by the trustees

 28  or board of education in a public meeting, provided that in the case  of

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  1  a  city  school district in a city having a population of one million or

  2  more, the school facility report card for school buildings of a communi-

  3  ty school district shall be reviewed annually by  the  community  school

  4  board.

  5    b. Such school facility report cards shall include, but not be limited

  6  to, the following information for each building:

  7    (i) Building age;

  8    (ii) Building size;

  9    (iii) Program spaces;

 10    (iv) Probable useful life of the building;

 11    (v) Enrollment, as defined by the commissioner;

 12    (vi) Space per student;

 13    (vii)  Statewide  standard  space  per  student  as established by the

 14  commissioner;

 15    (viii) Five-year building condition survey results and annual building

 16  inspection results including non-conformances identified and the date of

 17  correction;

 18    (ix) School building safety rating;

 19    (x) Certificate of occupancy status and expiration date;

 20    (xi) Five-year capital plan status  and  summary  including  projected

 21  costs  to keep the building in a state of good repair over the next five

 22  years or restore the school building to a state of good repair;

 23    (xii) Average annual maintenance spending on the school building  over

 24  the last five years;

 25    (xiii)  Recommended average annual maintenance to keep the building in

 26  a state of good repair;

 27    (xiv) Status of the facility preventive maintenance plan;

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  1    (xv) Average annual energy costs per square foot over the  last  three

  2  years;

  3    (xvi) Statewide average annual energy costs per square foot, as deter-

  4  mined by the commissioner;

  5    (xvii) Health and safety committee status; and

  6    (xviii) The following environmental information:

  7    (a)  Federal  Asbestos  Hazard  Emergency  Response  Act  (AHERA) Plan

  8  status;

  9    (b) Results of any testing for lead, asbestos, radon, indoor air qual-

 10  ity or other hazardous materials conducted in the last three years;

 11    (c) Integrated pest management plan status; and

 12    (d) The name of right-to-know contact person for the school building.

 13    § 6.  Section 1604 of the education law is amended  by  adding  a  new

 14  subdivision 41 to read as follows:

 15    41.  a.  To  enter  into a lease, sublease or other agreement with the

 16  dormitory authority providing for the financing,  refinancing,  acquisi-

 17  tion, design, construction, reconstruction, rehabilitation, improvement,

 18  furnishing,  purchasing  and  equipping  of,or  otherwise providing for,

 19  school district capital facilities or school district capital  equipment

 20  in accordance with section sixteen hundred eighty of the public authori-

 21  ties  law  and  with  the  approval  of  the commissioner.   Such lease,

 22  sublease, or other agreement may  provide  for  the  payment  of  annual

 23  rentals  and other payments to the dormitory authority, and contain such

 24  other terms and conditions as may be agreed upon by the parties thereto,

 25  including the  establishment  of  reserve  funds  and  indemnities.  For

 26  purposes  of  this  subdivision, school district capital equipment shall

 27  have the meaning ascribed thereto in section sixteen hundred seventy-six

 28  of the public authorities law.

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  1    b. Notwithstanding any provisions of law to the contrary, the dormito-

  2  ry authority and the trustee or board of trustees are hereby  authorized

  3  and  empowered to perform any and all acts and to enter into any and all

  4  agreements necessary or desirable to effectuate  the  purposes  of  this

  5  subdivision.  A  lease,  sublease or other agreement entered into by the

  6  trustee or board of trustees and the dormitory authority  shall  not  be

  7  deemed  to be an installment purchase contract, contract for public work

  8  or purchase contract within the meaning of article five-A of the general

  9  municipal law or any other law.

 10    § 7. Section 1709 of the education law is  amended  by  adding  a  new

 11  subdivision 41 to read as follows:

 12    41.  a.  To  enter  into a lease, sublease or other agreement with the

 13  dormitory authority providing for the financing,  refinancing,  acquisi-

 14  tion, design, construction, reconstruction, rehabilitation, improvement,

 15  furnishing,  purchasing  and  equipping  of, or otherwise providing for,

 16  school district capital facilities or school district capital  equipment

 17  in accordance with section sixteen hundred eighty of the public authori-

 18  ties  law  and  with  the  approval  of  the commissioner.   Such lease,

 19  sublease, or other agreement may  provide  for  the  payment  of  annual

 20  rentals  and other payments to the dormitory authority, and contain such

 21  other terms and conditions as may be agreed upon by the parties thereto,

 22  including the  establishment  of  reserve  funds  and  indemnities.  For

 23  purposes  of  this  subdivision, school district capital equipment shall

 24  have the meaning ascribed thereto in section sixteen hundred seventy-six

 25  of the public authorities law.

 26    b. Notwithstanding any provisions of law to the contrary, the dormito-

 27  ry authority and the  board  of  education  are  hereby  authorized  and

 28  empowered  to  perform  any  and  all acts and to enter into any and all

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  1  agreements necessary or desirable to effectuate  the  purposes  of  this

  2  subdivision.  A  lease,  sublease or other agreement entered into by the

  3  board of education and the dormitory authority shall not be deemed to be

  4  an  installment  purchase contract, contract for public work or purchase

  5  contract within the meaning of article five-A of the  general  municipal

  6  law or any other law.

  7    §  8.  Section  2512  of  the education law is amended by adding a new

  8  subdivision 7 to read as follows:

  9    7. a. The board of education is authorized and empowered to enter into

 10  a lease, sublease  or  other  agreement  with  the  dormitory  authority

 11  providing   for   the   financing,   refinancing,  acquisition,  design,

 12  construction, reconstruction, rehabilitation,  improvement,  furnishing,

 13  purchasing and equipping of, or otherwise providing for, school district

 14  capital  facilities  or  school district capital equipment in accordance

 15  with section sixteen hundred eighty of the public  authorities  law  and

 16  with  the  approval  of the commissioner. Such lease, sublease, or other

 17  agreement may provide for  the  payment  of  annual  rentals  and  other

 18  payments  to  the  dormitory authority, and contain such other terms and

 19  conditions as may be agreed upon by the parties thereto,  including  the

 20  establishment  of  reserve  funds  and indemnities. For purposes of this

 21  subdivision, school district capital equipment shall  have  the  meaning

 22  ascribed  thereto  in  section sixteen hundred seventy-six of the public

 23  authorities law.

 24    b. Notwithstanding any provisions of law to the contrary, the dormito-

 25  ry authority and the  board  of  education  are  hereby  authorized  and

 26  empowered  to  perform  any  and  all acts and to enter into any and all

 27  agreements necessary or desirable to effectuate  the  purposes  of  this

 28  subdivision.  A  lease,  sublease or other agreement entered into by the

                                        14                         12022-01-1

  1  board of education and the dormitory authority shall not be deemed to be

  2  an installment purchase contract, contract for public work  or  purchase

  3  contract  within  the meaning of article five-A of the general municipal

  4  law or any other law.

  5    §  9.  Section  2556  of  the education law is amended by adding a new

  6  subdivision 14 to read as follows:

  7    14. a. A board of education, notwithstanding any  other  provision  of

  8  law  to the contrary, is authorized and empowered to enter into a lease,

  9  sublease or other agreement with the dormitory authority  providing  for

 10  the  financing,  refinancing,  acquisition, design, construction, recon-

 11  struction,  rehabilitation,  improvement,  furnishing,  purchasing   and

 12  equipping of, or otherwise providing for, school district capital facil-

 13  ities  or  school  district capital equipment in accordance with section

 14  sixteen hundred eighty of  the  public  authorities  law  and  with  the

 15  approval  of the commissioner; provided however, no such lease, sublease

 16  or other agreement shall contain a pledge of the full faith  and  credit

 17  of  the  city  in  which the school district is located unless there has

 18  been compliance with subparagraph two  of  paragraph  b  of  subdivision

 19  thirty-eight  of  such  section  sixteen  hundred  eighty.  Such  lease,

 20  sublease, or other agreement may  provide  for  the  payment  of  annual

 21  rentals  and other payments to the dormitory authority, and contain such

 22  other terms and conditions as may be agreed upon by the parties thereto,

 23  including the  establishment  of  reserve  funds  and  indemnities.  For

 24  purposes  of  this  subdivision, school district capital equipment shall

 25  have the meaning ascribed thereto in section sixteen hundred seventy-six

 26  of the public authorities law.

 27    b. Notwithstanding any provisions of law to the contrary, the dormito-

 28  ry authority and the  board  of  education  are  hereby  authorized  and

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  1  empowered  to  perform  any  and  all acts and to enter into any and all

  2  agreements necessary or desirable to effectuate  the  purposes  of  this

  3  subdivision.  A  lease,  sublease or other agreement entered into by the

  4  board of education and the dormitory authority shall not be deemed to be

  5  an  installment  purchase contract, contract for public work or purchase

  6  contract within the meaning of article five-A of the  general  municipal

  7  law or any other law.

  8    §  10. Paragraph b of subdivision 6 of section 2590-p of the education

  9  law, as added by chapter 738 of the laws of 1988, is amended to read  as

 10  follows:

 11    b.  The  chancellor  may request the New York city school construction

 12  authority or the dormitory authority, and  the  such authority shall  be

 13  authorized, to develop preliminary plans for each project, to assist the

 14  chancellor  in  the  development  of  the  detailed scope of project, to

 15  proceed with site acquisition for such project and to assist in respond-

 16  ing to emergency projects undertaken pursuant  of   to  paragraph  h  of

 17  subdivision  two of this section.  The  Such authority may expend moneys

 18  for such purposes for projects to be funded pursuant to subdivision four

 19  of this section in such amounts as are consistent with the city  capital

 20  budget appropriation therefor.

 21    §  11.  Subparagraph  (iii) of paragraph d of subdivision 6 of section

 22  2590-p of the education law, as added by chapter  738  of  the  laws  of

 23  1988, is amended to read as follows:

 24    (iii)  Upon  approval of the detailed scope of project, the chancellor

 25  shall refer such project  to  the  New  York  city  school  construction

 26  authority  or  the  dormitory authority for implementation in accordance

 27  with an agreement between  the  such authority and the  city  board  and

 28  shall  transmit  the approved project scope to the comptroller whereupon

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  1  the total estimated costs of such project as set forth in such  approved

  2  project  scope  shall  be available for expenditure by the New York city

  3  school construction authority or be paid to the dormitory  authority  as

  4  provided  in  the  agreement  between  the  city board and the dormitory

  5  authority.

  6    § 12. Paragraph e of subdivision 6 of section 2590-p of the  education

  7  law,  as added by chapter 738 of the laws of 1988, is amended to read as

  8  follows:

  9    e. For projects contained within a  five-year  educational  facilities

 10  capital  plan  and not funded in whole or in part by the city, the chan-

 11  cellor  shall  refer  such  projects  to  the  New  York   city   school

 12  construction  authority or the dormitory authority for implementation in

 13  accordance with any agreement between  the  such authority and the  city

 14  board.

 15    §  13. Paragraph f of subdivision 6 of section 2590-p of the education

 16  law, as added by chapter 738 of the laws of 1988, is amended to read  as

 17  follows:

 18    f.  The  chancellor  and  the  president  of  the New York city school

 19  construction authority and  the  executive  director  of  the  dormitory

 20  authority,  as  appropriate,  shall  notify  the  mayor of the amount of

 21  appropriated funds projected to be spent for (i) development of detailed

 22  scopes, (ii) development of preliminary plans,  (iii)  site  acquisition

 23  and  (iv) emergencies, and the mayor shall thereupon authorize the issu-

 24  ance of bonds therefor in accordance  with  the  local  finance  law  or

 25  authorize  the  execution  of  an agreement with the dormitory authority

 26  providing for the financing of the project pursuant to subdivision thir-

 27  ty-eight of section one  thousand  six  hundred  eighty  of  the  public

 28  authorities  law  and  shall notify the city comptroller of his authori-

                                        17                         12022-01-1

  1  zation to expend such amounts for such purposes. Such  notice  shall  be

  2  given  or  amended  at  least ten days prior to any expenditure included

  3  therein; provided that the chancellor, the president and  the  executive

  4  director  of  the  authority  and  the mayor shall develop procedures to

  5  expedite authorization of emergency  expenditures.    Neither  the  city

  6  board  nor the school construction authority nor the dormitory authority

  7  shall expend funds for such purposes in excess of the amounts  specified

  8  in  such  notice  until the chancellor shall have amended such notice to

  9  reflect such excess. Upon approval of the detailed scope of  a  project,

 10  the  mayor  shall authorize the issuance of bonds therefor in accordance

 11  with the local finance law or authorize the execution  of  an  agreement

 12  with  the dormitory authority providing for the financing of the project

 13  pursuant to subdivision thirty-eight of section one thousand six hundred

 14  eighty of the public authorities law and shall  notify  the  city  comp-

 15  troller of his authorization to expend appropriated funds for the entire

 16  estimated cost of such project.

 17    §  14. Paragraph 1 of subdivision 2-a of section 3204 of the education

 18  law, as added by chapter 827 of the laws of 1982, is amended to read  as

 19  follows:

 20    1.  Each  school district which is  receiving state funds  required or

 21  elects to set aside funds pursuant to paragraph e of subdivision  twelve

 22  of  section  thirty-six hundred two of this chapter for the education of

 23  pupils of limited English proficiency shall develop a comprehensive plan

 24  consistent with requirements as the commissioner may establish in  regu-

 25  lations to meet the educational needs of such pupils.

 26    §  15.  Section 3601 of the education law, as amended by section 30 of

 27  part A of chapter 436 of the  laws  of  1997,  is  amended  to  read  as

 28  follows:

                                        18                         12022-01-1

  1    §  3601. When apportioned and how applied.  The amount annually appro-

  2  priated by the legislature for general support for public  schools,  net

  3  of  disallowances,  refunds, reimbursements and credits, shall be appor-

  4  tioned by the commissioner each year prior to the dates of  the  respec-

  5  tive  final payments provided by law and all moneys so apportioned shall

  6  be applied exclusively to school purposes  authorized  by  law.  General

  7  state  aid  claims,  on  forms  prescribed by the commissioner, shall be

  8  submitted to the commissioner by September second of each  school  year,

  9  except  that  the  audit report required by subdivision three of section

 10  twenty-one hundred sixteen-a of this chapter shall be submitted  to  the

 11  commissioner  by  October  first  following the close of the school year

 12  audited for all districts other than the city school  districts  of  the

 13  cities  of  Buffalo,  Rochester,  Syracuse,  Yonkers and New York and by

 14  January first following  the close of the school year audited  for  such

 15  city  school  districts , and except that aid claims on forms prescribed

 16  by the commissioner for aids apportioned pursuant to subdivision six  or

 17  fourteen  of  section thirty-six hundred two of this article for current

 18  year approved expenditures for debt service for school building purposes

 19  related to bond anticipation notes  and  for  bonds  and  capital  notes

 20  issued during the current year shall be submitted to the commissioner by

 21  March  first  of  the  current  year .  No aid shall be paid to a school

 22  district or board of  cooperative  educational  services  prior  to  the

 23  submission of claims as required by the commissioner, except that no aid

 24  certified  as  payable  to  a school district by the state board of real

 25  property services pursuant  to  paragraph  c  of  subdivision  three  of

 26  section  thirteen  hundred  six-a  of the real property tax law shall be

 27  withheld due to the failure of the school  district  to  submit  general

 28  state  aid  claims required by the commissioner, and except that no aids

                                        19                         12022-01-1

  1  shall be withheld due to the failure of a school district to submit  the

  2  audit report required by subdivision three of section twenty-one hundred

  3  sixteen-a of this chapter until the thirtieth day following the due date

  4  specified  in  this  section  for such report , and provided that no aid

  5  shall be paid to a school district prior to  September  first  following

  6  the  end of the current school year for aid claims submitted after March

  7  first of the current year for aids apportioned pursuant  to  subdivision

  8  six  or  fourteen  of section thirty-six hundred two of this article for

  9  current year approved expenditures for debt service for school  building

 10  purposes  related  to  bond anticipation notes and for bonds and capital

 11  notes issued during the current year .

 12    § 16. Subdivision 1 of section 3602 of the education law is amended by

 13  adding two new paragraphs bb and cc to read as follows:

 14    bb. Beginning with the two thousand one--two thousand two school  year

 15  and  thereafter,  "extraordinary  needs  index"  shall  mean  the number

 16  computed to three decimals without rounding obtained when  the  extraor-

 17  dinary  needs pupil count divided by the base year public school enroll-

 18  ment of such district is divided by the  statewide  extraordinary  needs

 19  pupil count divided by the statewide base year public school enrollment.

 20  Such  statewide  average  extraordinary needs percentage shall be estab-

 21  lished each year by the commissioner.

 22    cc. Beginning with the two thousand one--two thousand two school  year

 23  and thereafter, "needs-resource index" shall mean the number computed to

 24  three  decimals  without  rounding obtained when the extraordinary needs

 25  index is divided by the combined wealth ratio of such district.

 26    § 17. Subdivision 1 of section 3602 of the education law is amended by

 27  adding a new paragraph dd to read as follows:

                                        20                         12022-01-1

  1    dd. For aid payable in the two thousand one--two thousand  two  school

  2  year and thereafter, "the state aid attributable to a pupil with a disa-

  3  bility  attending  a  charter  school"  pursuant  to section 2856 of the

  4  education law, shall include the sum of the product of excess  cost  aid

  5  per  pupil calculated for the two thousand--two thousand one school year

  6  pursuant to paragraph three of subdivision  nineteen  of  this  section,

  7  one-half  of  the  sum  of the percentage change, calculated pursuant to

  8  subdivision 1 of section two thousand eight hundred  fifty-six  of  this

  9  chapter  for  each  year from two thousand one--two thousand two through

 10  the current year, in the state total approved operating  expense  calcu-

 11  lated  pursuant  to  subdivision  eleven  of this section from two years

 12  prior to the base year to the base year, the proportion of the weighting

 13  attributable to the student's level  of  service  provided  directly  or

 14  indirectly  by  the  charter  school, pursuant to clauses one to four of

 15  subparagraph b of paragraph one of subdivision nineteen of this section;

 16  and the student's enrollment in  such  charter  school  in  the  current

 17  school year.

 18    § 18.  Subdivision 6 of section 3602 of the education law is REPEALED,

 19  and a new subdivision 6 is added, to read as follows:

 20    6.  Apportionment  for  capital  outlays  and  debt service for school

 21  building purposes. Any apportionment to a school  district  pursuant  to

 22  this subdivision shall be based upon base year approved expenditures for

 23  capital  outlays  from  its general fund, capital fund or reserved funds

 24  and current year approved expenditures for debt service  based  upon  an

 25  assumed  amortization where required by paragraph e of this subdivision,

 26  including debt service for refunding bond issues eligible for an  appor-

 27  tionment  pursuant to paragraph g of this subdivision and lease or other

 28  annual payments to the  New  York  city  educational  construction  fund

                                        21                         12022-01-1

  1  created  by  article  ten  of this chapter or the city of Yonkers educa-

  2  tional construction fund created by article ten-B of this chapter  which

  3  have  been  pledged to secure the payment of bonds, notes or other obli-

  4  gations  issued  by  the  fund to finance the construction, acquisition,

  5  reconstruction, rehabilitation or improvement of the school  portion  of

  6  combined  occupancy structures, or for lease or other annual payments to

  7  the New York state urban development corporation created by chapter  one

  8  hundred seventy-four of the laws of nineteen hundred sixty-eight, pursu-

  9  ant  to  agreement  between  such  school  district and such corporation

 10  relating to the  construction,  acquisition,  reconstruction,  rehabili-

 11  tation  or  improvement  of any school building or for lease, lease-pur-

 12  chase or other annual payments to another  school  district  or  person,

 13  partnership  or  corporation  pursuant  to  an  agreement made under the

 14  provisions of section four hundred three-b, subdivision eight of section

 15  twenty-five hundred three, or subdivision  six  of  section  twenty-five

 16  hundred  fifty-four of this chapter.  In any such case approved expendi-

 17  tures shall be only for new construction,  reconstruction,  purchase  of

 18  existing structures, for site purchase and improvement, for new garages,

 19  for  original  equipment,  furnishings, machinery, or apparatus, and for

 20  professional fees and other costs incidental  to  such  construction  or

 21  reconstruction,  or  purchase  of  existing structures. In the case of a

 22  lease or lease-purchase  agreement  entered  pursuant  to  section  four

 23  hundred  three-b, subdivision eight of section twenty-five hundred three

 24  or subdivision six of section twenty-five  hundred  fifty-four  of  this

 25  chapter,  approved  expenditures  for the lease or other annual payments

 26  shall not include the costs of heat, electricity, water or other  utili-

 27  ties or the costs of operation or maintenance of the leased facility. An

 28  apportionment  shall  be  available  pursuant  to  this  subdivision for

                                        22                         12022-01-1

  1  construction, reconstruction, rehabilitation or improvement in a  build-

  2  ing,  or  portion thereof, being leased by a school district only if the

  3  lease is for a term of at least ten years subsequent to the date of  the

  4  general  construction  contract  for  such construction, reconstruction,

  5  rehabilitation or improvement. Each school district shall prepare a five

  6  year capital facilities plan, pursuant to regulations developed  by  the

  7  commissioner  for  such  purpose,  provided  that  in the case of a city

  8  school district in a city having a population of one million inhabitants

  9  or more, such facilities  plan  shall  comply  with  the  provisions  of

 10  section  twenty-five  hundred ninety-p of this chapter and this subdivi-

 11  sion. Such plan shall include, but not be limited to, a building  inven-

 12  tory,  and  estimated  expense  of facility needs, for new construction,

 13  additions, alterations, reconstruction, major repairs,  energy  consump-

 14  tion and maintenance by school building, as appropriate.  Such five year

 15  plan  shall  include a priority ranking of projects and shall be amended

 16  if necessary to reflect subsequent  on-site  evaluations  of  facilities

 17  conducted by state supported contractors.

 18    a.  For  capital  outlays for such purposes first incurred on or after

 19  July first,  nineteen  hundred  sixty-one  and  debt  service  for  such

 20  purposes  first incurred on or after July first, nineteen hundred sixty-

 21  two, the actual approved expenditures less the amount of  civil  defense

 22  aid  received pursuant to the provisions of section thirty-five of chap-

 23  ter seven hundred eighty-four of the laws of nineteen hundred  fifty-one

 24  as  amended  shall  be  allowed for purposes of apportionment under this

 25  subdivision but not in excess of the following schedule of  cost  allow-

 26  ances:

 27    (1) (a) If the earlier of (i) the date upon which the project has been

 28  approved by the commissioner, or (ii) the first date upon which a gener-

                                        23                         12022-01-1

  1  al  construction  contract  has been awarded or a purchase agreement has

  2  been executed, relating to construction of a new structure, an  addition

  3  to  an  existing  structure or the purchase of an existing structure, is

  4  prior  to  January fifteenth two thousand one, the cost allowances shall

  5  be based upon the rated capacity of the building or addition and a basic

  6  per pupil allowance of up to six  thousand  three  hundred  seventy-five

  7  dollars  adjusted monthly by a statewide index reflecting changes in the

  8  cost of labor and materials since July first, nineteen  hundred  ninety-

  9  two,  established  by  the  commissioner of labor, modified by an annual

 10  county or multi-county labor market composite wage rate, established  by

 11  the  commissioner  of  labor  in consultation with the commissioner, for

 12  July first of the base year, commencing  July  first,  nineteen  hundred

 13  ninety-seven for general construction contracts awarded on or after July

 14  first,  nineteen  hundred  ninety-eight,  indexed  to the median of such

 15  county or multi-county rates, but not less than one.   Such base  allow-

 16  ance  shall apply to a building or an addition housing grades prekinder-

 17  garten through six and shall be adjusted for a building or  an  addition

 18  housing  grades  seven  through nine by a factor of one and four-tenths,

 19  for a building or an addition housing grades seven through twelve  by  a

 20  factor  of  one  and  five-tenths,  for  a  building or addition housing

 21  special education programs by a factor of two, except  that  where  such

 22  building or addition is connected to, or such space is located within, a

 23  public  school  facility  housing  programs  for  nondisabled pupils, as

 24  approved by the commissioner, a factor of three  shall  be  used.  Rated

 25  capacity of a building or an addition shall be determined by the commis-

 26  sioner  based  on  space  standards  and other requirements for building

 27  construction specified  by  the  commissioner.  Such  assigned  capacity

 28  ratings shall include, in addition to those spaces used for the instruc-

                                        24                         12022-01-1

  1  tion of pupils, those spaces which are used for elementary and secondary

  2  school   libraries,  cafeterias,  prekindergarten  instructional  rooms,

  3  teachers' conference rooms, gymnasiums and auditoriums. If  the  commis-

  4  sioner  of  labor  resets  the statewide index reflecting changes in the

  5  costs of labor and materials since July first, nineteen hundred  ninety-

  6  two, the commissioner shall adopt regulations to supersede the basic per

  7  pupil  allowance  of  up  to  six  thousand  three hundred seventy- five

  8  dollars to the imputed allowance in effect at that time.

  9    (b) If the earlier of (i) the date upon which  the  project  has  been

 10  approved by the commissioner, or (ii) the first date upon which a gener-

 11  al  construction  contract  has been awarded or a purchase agreement has

 12  been executed, relating to construction of a new structure, an  addition

 13  to an existing structure or the purchase of an existing structure, is on

 14  or  after January fifteenth, two thousand one, the cost allowances shall

 15  be based upon the product of: (i) the building  project  enrollment  and

 16  (ii)  a basic per pupil space allowance and (iii) a basic per pupil cost

 17  allowance per square foot for such construction or  purchase  as  estab-

 18  lished  by the commissioner and approved by the director of the division

 19  of the budget on or before July first, two thousand one. Such basic  per

 20  pupil cost allowance per square foot shall be adjusted monthly thereaft-

 21  er  by  a  statewide  index  reflecting changes in the cost of labor and

 22  materials since July first, two thousand one, as derived from the state-

 23  wide index and as modified by the annual county  or  multi-county  labor

 24  market  composite  wage  rate  for  July first of the base year, both as

 25  established by the commissioner of labor pursuant to clause  a  of  this

 26  subparagraph.

 27    (c)  If  the  earlier  of (i) the date upon which the project has been

 28  approved by the commissioner, or (ii) the first date upon which a gener-

                                        25                         12022-01-1

  1  al construction contract has been awarded and purchases executed, relat-

  2  ing to the reconstruction, rehabilitation or improvement of an  existing

  3  structure,  is on or after January fifteenth, two thousand one, the cost

  4  allowances  shall  be  the  lesser of: (i) one hundred per centum of the

  5  cost allowances for the equivalent new construction over  the  projected

  6  useful  life  of  the  building, to be determined in accordance with the

  7  regulations of the commissioner, or (ii) the product of: (A) the  build-

  8  ing  project  enrollment, (B) a basic per pupil space allowance, (C) the

  9  quotient of the square feet of space being reconstructed,  rehabilitated

 10  or  improved within the school building divided by the total square feet

 11  of space within such school building and (D)  a  basic  per  pupil  cost

 12  allowance  per  square  foot  for such reconstruction, rehabilitation or

 13  improvement as established by  the  commissioner  and  approved  by  the

 14  director  of  the  division  of  the budget on or before July first, two

 15  thousand one. Such basic per pupil cost allowance per square foot  shall

 16  be  adjusted  monthly thereafter by a statewide index reflecting changes

 17  in the cost of labor and materials since July first, two  thousand  one,

 18  as derived from the statewide index and as modified by the annual county

 19  or  multi-county  labor market composite wage rate for July first of the

 20  base year, both as established by the commissioner of labor pursuant  to

 21  clause  a of this subparagraph. Reconstruction projects shall reasonably

 22  meet the criteria established for new construction,  including  but  not

 23  limited to energy, fire, personal safety and space per pupil standards.

 24    (2)  (a)  Where  a school district has expenditures for site purchase,

 25  grading or improvement of the  site,  original  furnishings,  equipment,

 26  machinery  or apparatus, or professional fees, or other incidental costs

 27  relating to construction of a new structure, an addition to an  existing

 28  structure or the purchase of an existing structure, for which the earli-

                                        26                         12022-01-1

  1  er  of  (i)  the  date  upon  which the project has been approved by the

  2  commissioner, or (ii) the first date upon which a  general  construction

  3  contract  has  been awarded or purchase agreement was executed, is prior

  4  to  January  fifteenth,  two  thousand  one,  the cost allowances may be

  5  increased by the actual expenditures for such purposes but by  not  more

  6  than  the  product of the applicable cost allowance established pursuant

  7  to subparagraph one of this paragraph and twenty per centum  for  school

  8  buildings or additions housing grades prekindergarten through six and by

  9  not  more  than  the  product of such cost allowance and twenty-five per

 10  centum for school buildings or additions housing  grades  seven  through

 11  twelve and by not more than the product of such cost allowance and twen-

 12  ty-five  per  centum  for  school buildings or additions housing special

 13  education programs as approved by the commissioner.

 14    (b) Where a school district has expenditures for site purchase,  grad-

 15  ing or improvement of the site, original furnishings, equipment, machin-

 16  ery or apparatus, or professional fees, or other incidental costs relat-

 17  ing  to  an  approved  building project for which the earlier of (i) the

 18  date upon which the project has been approved by  the  commissioner,  or

 19  (ii)  the first date upon which a general construction contract has been

 20  awarded or purchase agreement was  executed,  is  on  or  after  January

 21  fifteenth, two thousand one, the cost allowances may be increased by the

 22  actual  expenditures  for such purposes but by not more than the product

 23  of the approved cost of construction or purchase and twenty  per  centum

 24  for school buildings or additions housing grades prekindergarten through

 25  six  and  by not more than the product of such approved cost and twenty-

 26  five per centum for school buildings or additions housing  grades  seven

 27  through  twelve and by not more than the positive sum of (i) the product

 28  of such approved cost and twenty-five per centum  for  that  portion  of

                                        27                         12022-01-1

  1  such  school  buildings  or additions housing special education programs

  2  conducted by a board of cooperative educational services less  (ii)  the

  3  total  lease revenues received or to be received by such school district

  4  for  such  portion  of  such school building over the term of the lease,

  5  where such board has entered into an agreement to lease such facility or

  6  facilities for a period of ten years or more, and where such program has

  7  been approved by the commissioner on or  after  January  fifteenth,  two

  8  thousand one.

  9    (3)  Cost allowances for reconstruction, rehabilitation or improvement

 10  of an existing structure for which the earlier  of  (i)  the  date  upon

 11  which  the  project  has  been approved by the commissioner, or (ii) the

 12  first date upon which a general construction contract has  been  awarded

 13  or  purchase  agreement was executed, is prior to January fifteenth, two

 14  thousand one shall not exceed one hundred per centum of the cost  allow-

 15  ances for the equivalent new construction over the projected useful life

 16  of  the building, to be determined in accordance with the regulations of

 17  the commissioner. Reconstruction  projects  shall  reasonably  meet  the

 18  criteria  established for new construction, including but not limited to

 19  energy, fire, personal safety and space per pupil standards.

 20    (4) The commissioner  shall  promulgate  regulations  prescribing  the

 21  methodology for establishing a multi-year cost allowance for the purpose

 22  of  computation  of building aid to school districts and a procedure for

 23  school districts to appeal the determination that  a  building  has  not

 24  been  adequately  maintained, as required by subparagraphs one and three

 25  of this paragraph. Such methodology shall include the development  of  a

 26  building  replacement  cost  allowance  schedule  for the replacement of

 27  major building systems of a building over its projected useful life  and

 28  the  construction  of new buildings and additions for projects that have

                                        28                         12022-01-1

  1  been approved on or after July first, two thousand by the voters of  the

  2  school  district  or by the board of education of a city school district

  3  in a city with more than one hundred twenty-five  thousand  inhabitants,

  4  and/or the chancellor in a city school district in a city having a popu-

  5  lation  of one million or more. For purposes of this subdivision, "major

  6  building systems" shall mean the electrical, plumbing,  heating,  venti-

  7  lation and air conditioning systems, and the roof and other major struc-

  8  tural elements of a school building.

  9    (5) For new construction projects approved on or after July first, two

 10  thousand, by the voters of the school district or by the board of educa-

 11  tion  of  a  city  school  district in a city with more than one hundred

 12  twenty-five thousand inhabitants, and/or the chancellor in a city school

 13  district in a city having a population of  one  million  or  more,  such

 14  rated  capacity  for  new buildings and additions constructed to replace

 15  existing buildings that, in the judgment of the commissioner,  have  not

 16  been  adequately  maintained and have not reached their projected useful

 17  life shall be reduced by the commissioner by an amount  proportional  to

 18  the  remaining  unused portion of the useful life of the existing build-

 19  ings, provided however that the commissioner may waive such  requirement

 20  upon a finding that replacement of the existing building is necessary to

 21  protect  the health and safety of students or staff, that reconstruction

 22  and modernization of the existing building would not adequately  address

 23  such health and safety problems, and that the need to replace the build-

 24  ing was not caused by failure to adequately maintain the building.

 25    b.  (1) The apportionment for school building purposes to any district

 26  shall be determined by adding the  amount  of  its  base  year  approved

 27  expenditures  for  capital outlays for school building purposes from its

 28  general fund, capital fund or from a reserve fund to the amount  of  its

                                        29                         12022-01-1

  1  current  year  approved  expenditures for debt service for such purposes

  2  and multiplying the sum by its aid ratio, provided that  capital  outlay

  3  expenditures shall be eligible for an apportionment only upon submission

  4  by  the  district  to the department of documentation of payment of such

  5  expenditures during the base year for work on an approved  project,  and

  6  provided  further  that  for  aids  payable in the two thousand one--two

  7  thousand two school year the base year  aid  ratio  shall  be  used  for

  8  computation  of  aids payable for base year debt service aidable in July

  9  following the year of expenditure as defined pursuant to clauses (a) and

 10  (b) of subparagraph (1) of paragraph f of this subdivision. Expenditures

 11  made for computer equipment, including original purchase  and  installa-

 12  tion  of  hardware,  conduit, wiring, and powering of hardware installa-

 13  tions in computer classrooms, or for building or campuswide  local  area

 14  network  systems  and  in-building elements of other wide area networks,

 15  including the original purchase and installation of conduit, wiring, and

 16  powering of hardware installations, may be included in approved expendi-

 17  tures for building aid pursuant to this paragraph on the approval of the

 18  commissioner regardless of any minimum  cost  requirement  that  may  be

 19  applied  to  other  approved expenditures pursuant to this section. Such

 20  equipment expenses claimed for aid under this subdivision shall  not  be

 21  claimed for aid under any other provisions of this chapter.

 22    (2) Additional apportionment for certain school building projects. (i)

 23  Eligibility.  All school building projects (a) approved by the voters of

 24  the school district or (b) approved by the board of education of a  city

 25  school  district  in a city with more than one hundred twenty-five thou-

 26  sand inhabitants, and/or the chancellor in a city school district  in  a

 27  city  having a population of one million or more or (c) in the case of a

 28  construction emergency project, approved by the board  of  education  of

                                        30                         12022-01-1

  1  any  school district or by the chancellor in a city school district in a

  2  city having a population of one million or more, for  projects  approved

  3  on or after July first, nineteen hundred ninety-eight, shall be eligible

  4  for  an  additional  apportionment  pursuant to this subparagraph to the

  5  extent that expenditures for such projects are otherwise aidable  pursu-

  6  ant to this subdivision, provided that for all such projects so approved

  7  on  or  after July first, two thousand, expenditures directly related to

  8  swimming pools shall not be eligible for such additional  apportionment,

  9  and  further  provided  that  for  the  purposes  of  this subdivision a

 10  construction emergency project shall mean a school construction  project

 11  approved  on  or  after July first, two thousand, to remediate emergency

 12  situations which arise in  public  school  buildings  and  threaten  the

 13  health  and/or safety of building occupants, as a result of the unantic-

 14  ipated discovery  of  asbestos  or  other  hazardous  substances  during

 15  construction  work  on  a school or significant damage caused by a fire,

 16  snow storm, ice storm, excessive  rain,  high  wind,  flood  or  similar

 17  catastrophic event which results in the necessity for immediate repair.

 18    (ii)  Apportionment.  The  apportionment pursuant to this subparagraph

 19  shall equal the product of such eligible approved expenses determined in

 20  accordance with the provisions of clause (i) of  this  subparagraph  and

 21  this  section  and the incentive decimal computed for use in the year in

 22  which the project was approved. The incentive decimal  shall  equal  the

 23  positive  remainder  resulting  when  the  district's building aid ratio

 24  selected pursuant to paragraph c of this subdivision is subtracted  from

 25  the  enhanced  building aid ratio. The enhanced building aid ratio shall

 26  equal the sum of the building aid ratio selected for use in the  current

 27  year pursuant to paragraph c of this subdivision and one-tenth, computed

                                        31                         12022-01-1

  1  to  three  decimals  without  rounding,  but  not  more than ninety-five

  2  hundredths, nor less than one-tenth.

  3    c.  (1)  For  aid  payable in the school year nineteen hundred ninety-

  4  three--ninety-four and earlier, any  school  district  may  compute  aid

  5  under  the  provisions  of this subdivision, or under subdivision six of

  6  section thirty-six hundred one-a of this article, using the building aid

  7  ratio computed for use in the current year or the aid ratio computed for

  8  use in any year commencing with the nineteen hundred  eighty-one--eight-

  9  y-two  school year as computed by the commissioner based on data on file

 10  with the education department as of July first, nineteen  hundred  nine-

 11  ty-six,  and;  provided  that, school districts who are eligible for aid

 12  under paragraph f of subdivision fourteen of this  section  may  compute

 13  aid  under  the  provisions  of  this subdivision using the aid ratio so

 14  computed for the reorganized district or the highest of the  aid  ratios

 15  so  computed  for  any  of the individual school districts which existed

 16  prior to the date of the reorganized school district.

 17    (2) (a) For aid payable in the school years nineteen  hundred  ninety-

 18  four--ninety-five  and  thereafter  for  all  school  building  projects

 19  approved by the voters of the school district or by the board of  educa-

 20  tion  of  a  city  school  district in a city with more than one hundred

 21  twenty-five thousand inhabitants, and/or the chancellor in a city school

 22  district in a city having a population of one million  or  more,  before

 23  July  first, two thousand, any school district may compute aid under the

 24  provisions of this subdivision using the building aid ratio computed for

 25  use in the current year or the aid ratio computed for use  in  any  year

 26  commencing  with the nineteen hundred eighty-one--eighty-two school year

 27  as such earlier aid ratios are computed by  the  commissioner  based  on

 28  data  on  file  with the education department on or before July first of

                                        32                         12022-01-1

  1  the third school year following the school year in which  aid  is  first

  2  payable;  provided that, school districts who are eligible for aid under

  3  paragraph f of subdivision fourteen of  this  section  may  compute  aid

  4  under the provisions of this subdivision using the aid ratio so computed

  5  for  the  reorganized  district  or  the  highest  of  the aid ratios so

  6  computed for any of the individual school districts which existed  prior

  7  to the date of the reorganized school district.

  8    (b) For aid payable in the school years two thousand--two thousand one

  9  and  thereafter  for all school building projects approved by the voters

 10  of the school district or by the board of education  of  a  city  school

 11  district  in  a  city  with  more  than one hundred twenty-five thousand

 12  inhabitants, and/or the chancellor in a city school district in  a  city

 13  having  a population of one million or more, on or after July first, two

 14  thousand, and before January fifteenth, two  thousand  one,  any  school

 15  district  shall  compute  aid  under  the provisions of this subdivision

 16  using the greater of the building aid ratio  computed  for  use  in  the

 17  current  year or a building aid ratio equal to the difference of the aid

 18  ratio that was used or that would have been used to  compute  an  appor-

 19  tionment  pursuant  to  this subdivision in the nineteen hundred ninety-

 20  nine--two thousand school year as such aid  ratio  is  computed  by  the

 21  commissioner based on data on file with the department on or before July

 22  first of the third school year following the school year in which aid is

 23  first  payable,  less one-tenth; provided that, school districts who are

 24  eligible for aid under paragraph  f  of  subdivision  fourteen  of  this

 25  section  may  compute aid under the provisions of this subdivision using

 26  the difference of the highest of the aid  ratios  so  computed  for  the

 27  reorganized  district  or  the highest of the aid ratios so computed for

                                        33                         12022-01-1

  1  any of the individual school districts which existed prior to  the  date

  2  of the reorganized school district less one-tenth.

  3    (c) For aid payable in the school years two thousand one--two thousand

  4  two  and  thereafter  for  all  school building projects approved by the

  5  voters of the school district or by the board of  education  of  a  city

  6  school  district  in a city with more than one hundred twenty-five thou-

  7  sand inhabitants, and/or the chancellor in a city school district  in  a

  8  city  having  a  population  of one million or more, on or after January

  9  fifteenth, two thousand one, any school district shall compute aid under

 10  the provisions of this subdivision  for  each  such  project  using  the

 11  current  building  aid ratio that was first used or that would have been

 12  first used to compute an apportionment pursuant to this  subdivision  in

 13  the  earliest  school  year in which a general construction contract has

 14  been awarded or a purchase agreement has been executed for such project.

 15    d. Additional apportionment of building aid for structural  inspection

 16  of school buildings. In addition to the foregoing apportionments made to

 17  a  school district under the provisions of this subdivision, the commis-

 18  sioner is hereby authorized to  apportion  to  any  school  district  an

 19  amount in accordance with this subdivision for structural inspections of

 20  school  buildings  used for instructional purposes conducted pursuant to

 21  sections four hundred nine-d and four hundred nine-e of this chapter and

 22  the regulations of the  commissioner  implementing  such  sections.  The

 23  amount of such apportionment shall equal the product of the building aid

 24  ratio defined pursuant to paragraph c of this subdivision and the actual

 25  approved  expenses  incurred  by  the district in the base year for each

 26  school building so inspected by a licensed architect or licensed profes-

 27  sional engineer, provided that the amount of  such  apportionment  shall

 28  not  exceed  the structural inspection aid ceiling, and provided further

                                        34                         12022-01-1

  1  that no state aid claim for the inspection of  such  building  has  been

  2  submitted within the five years prior to the submission of a claim.  For

  3  inspections  conducted  in the nineteen hundred ninety-two--ninety-three

  4  school year, the structural inspection aid ceiling shall be ten thousand

  5  dollars. For inspections conducted in the nineteen hundred ninety-three-

  6  -ninety-four  school  year  and  thereafter,  the inspection aid ceiling

  7  shall be ten thousand dollars plus an amount computed by the commission-

  8  er in accordance with regulations adopted for such purpose, on the basis

  9  of an index number reflecting changes in the costs of labor and  materi-

 10  als from July first, nineteen hundred ninety-three.

 11    e.  (1) Apportionments payable for the nineteen hundred ninety-three--

 12  ninety-four through the two thousand--two thousand one school  years  to

 13  the  city  school district of the city of New York. (a) For the purposes

 14  of calculating the apportionment payable to the city school district  of

 15  the  city  of  New  York  pursuant  to this subdivision for the nineteen

 16  hundred ninety-three--ninety-four through the two thousand--two thousand

 17  one school years, current year approved expenditures  for  debt  service

 18  shall  mean  expenditures for debt service that would be incurred during

 19  the current year based on an assumed amortization for a period of thirty

 20  years of the total approved costs relating to the construction, acquisi-

 21  tion, reconstruction, rehabilitation or improvement of any school build-

 22  ing, and based on an assumed rate of annual  interest  applied  to  such

 23  amortization,  both  to  be  established by the commissioner pursuant to

 24  this subparagraph.

 25    (b) The commissioner shall establish an  assumed  amortization  for  a

 26  period of thirty years commencing with the date of the award of a gener-

 27  al  contract  by  the  school  construction authority of the city of New

 28  York, or by another body or official designated by law, relating to  the

                                        35                         12022-01-1

  1  construction, acquisition, reconstruction, rehabilitation or improvement

  2  of  any  school  building within the city school district of the city of

  3  New York. Such assumed amortization  shall  provide  for  equal  monthly

  4  payments of principal and interest based on an interest rate established

  5  by  the  commissioner  for such purpose for the school year during which

  6  such general contract is awarded. Such estimated average  interest  rate

  7  and such actual average interest rate shall be expressed as a decimal to

  8  five places rounded to the nearest eighth of one-one hundredth.

  9    (c)  By the first day of September of the current year the comptroller

 10  of the city of New York shall provide to the commissioner  an  analysis,

 11  as  prescribed  by the commissioner, of the actual average interest rate

 12  applied to all capital debt incurred by the city of New York during  the

 13  base  year  and  of  the  estimated average interest rate applied to all

 14  capital debt to be incurred by the city of New York during  the  current

 15  year.  Upon  approval  by  the commissioner such actual average interest

 16  rate shall be established as the interest rate applicable  to  the  base

 17  year  for the purposes of this subparagraph and subparagraph two of this

 18  paragraph, and such estimated average interest rate shall be tentatively

 19  established as the interest rate applicable to the current year,  except

 20  that  all apportionments of aid payable during the current year based on

 21  such estimated average  interest  rate  shall  be  recalculated  in  the

 22  following  year  and  adjusted  as  appropriate based on the appropriate

 23  actual average interest rate then established by the commissioner.

 24    (d) By the first day of  November,  nineteen  hundred  ninety-six  the

 25  chancellor  of  the  city  school district of the city of New York shall

 26  provide to the commissioner an analysis of any outstanding debt  of  the

 27  city  of New York which had originally been incurred by such city or its

 28  subdivisions for capital projects related to  school  buildings  of  the

                                        36                         12022-01-1

  1  city  school  district  of  the  city  of  New  York  for  which general

  2  construction contracts  were  awarded  prior  to  July  first,  nineteen

  3  hundred  eighty-eight.   Such analysis shall include the total principal

  4  amount borrowed, the total capital expenditures included in such princi-

  5  pal  for capital projects related to school buildings of the city school

  6  district of  the  city  of  New  York  for  which  general  construction

  7  contracts  were  awarded  prior  to July first, nineteen hundred eighty-

  8  eight, the ratio of such capital expenditures to  such  total  principal

  9  expressed  as  a  decimal to five places without rounding and the annual

 10  principal and interest payment scheduled for each year remaining in  the

 11  amortization  of such principal as of July first, nineteen hundred nine-

 12  ty-six for all such borrowings reported to the department on the "SA 121

 13  Form Building Expenses Worksheet, 1995-96 State Aid" bearing a run  date

 14  of  July tenth, nineteen hundred ninety-five which list shall constitute

 15  the maximum principal outstanding and eligible for aid pursuant  to  the

 16  provisions  of  this  paragraph.  Notwithstanding any other provision of

 17  this subdivision, for aids payable in the nineteen hundred  ninety-six--

 18  ninety-seven  school  year  and  thereafter,  the  approved debt service

 19  included in such principal and interest payments  for  the  purposes  of

 20  calculating  an  apportionment  pursuant to this subdivision shall equal

 21  the product of:  (i)  five  tenths;  (ii)  the  principal  and  interest

 22  payments  scheduled  for  the current year as reported in such analysis;

 23  and (iii) the ratio of such capital expenditures to such total principal

 24  as reported in such analysis.

 25    (2) Apportionments payable for the two thousand one--two thousand  two

 26  school  year  and  thereafter to the city school district of the city of

 27  New York. (a) For the purposes of calculating the apportionment  payable

 28  to  the  city  school  district of the city of New York pursuant to this

                                        37                         12022-01-1

  1  subdivision for the two thousand one--two thousand two school  year  and

  2  thereafter,  current  year  approved expenditures for debt service shall

  3  mean expenditures for  debt  service,  including  expenditures  for  any

  4  lease-purchase or other annual payments under a lease-purchase agreement

  5  or  the equivalent that are eligible for aid under the opening paragraph

  6  of this subdivision, that would be  incurred  during  the  current  year

  7  based on:

  8    (i)  an  assumed  amortization  to  be established by the commissioner

  9  pursuant to this subparagraph for a period of thirty years of the  total

 10  approved   costs  relating  to  the  construction,  acquisition,  recon-

 11  struction, rehabilitation or improvement  of  any  school  building  for

 12  which  a  general  construction  contract  was  awarded  on or after the

 13  fifteenth of January, two thousand one, and

 14    (ii) an assumed amortization to be  established  by  the  commissioner

 15  pursuant  to  this  subparagraph of any assumed unpaid principal, or the

 16  equivalent amount in the case  of  a  lease-purchase  agreement  or  its

 17  equivalent, remaining as of the first of July, two thousand one pursuant

 18  to  subparagraph  one of this paragraph. Each such amortization shall be

 19  based on an assumed rate of annual interest applied to such amortization

 20  to be established by the commissioner pursuant to this subparagraph  and

 21  pursuant to clause c of subparagraph one of this paragraph.

 22    (b)  (i) For approved costs relating to the construction, acquisition,

 23  reconstruction, rehabilitation or improvement of any school building for

 24  which a general construction  contract  was  awarded  on  or  after  the

 25  fifteenth of January, two thousand one, the commissioner shall establish

 26  an  assumed  amortization for a period of thirty years commencing on the

 27  date of receipt by the commissioner of a certification by  the  district

 28  that  such  general construction contract has been awarded by the school

                                        38                         12022-01-1

  1  construction authority of the city of New York, or by  another  body  or

  2  official  designated  by law, relating to the construction, acquisition,

  3  reconstruction, rehabilitation or improvement  of  any  school  building

  4  within  the  city  school district of the city of New York. Such assumed

  5  amortization shall provide for equal semiannual  payments  of  principal

  6  and  interest  based on an interest rate established by the commissioner

  7  for such purpose for the school year during which such certification was

  8  received. Such estimated average interest rate and such  actual  average

  9  interest  rate shall be expressed as a decimal to five places rounded to

 10  the nearest eighth of one-one hundredth.

 11    (ii) For any assumed unpaid principal or the equivalent amount in  the

 12  case  of  a  lease-purchase agreement or its equivalent, remaining as of

 13  the first of July, two thousand one pursuant to subparagraph one of this

 14  paragraph, the commissioner shall establish a new  assumed  amortization

 15  commencing  on  such date for the unexpired term of the original assumed

 16  amortization as of such date. Such assumed  amortization  shall  provide

 17  for  equal  semiannual  payments  of principal and interest based on the

 18  interest rate applied to the original amortization as established by the

 19  commissioner pursuant to subparagraph one of this paragraph.

 20    (3) Apportionments payable for the two thousand one--two thousand  two

 21  school  year  and  thereafter  to  a school district other than the city

 22  school district of the city of New York for any debt service related  to

 23  projects approved by the commissioner on or after the fifteenth of Janu-

 24  ary, two thousand one or for any debt service related to a bond, capital

 25  note  or  bond  anticipation  note issued on or after such date or still

 26  outstanding as of the first of July,  two  thousand  one.  (a)  For  the

 27  purposes  of calculating the apportionments payable to a school district

 28  other than the city school district of the city of New York pursuant  to

                                        39                         12022-01-1

  1  this  subdivision for the two thousand one--two thousand two school year

  2  and thereafter for any debt service related to projects approved by  the

  3  commissioner  on  or after the fifteenth of January, two thousand one or

  4  for  any  debt  service  related  to a bond, capital note or bond antic-

  5  ipation note issued on or after such date or still outstanding as of the

  6  first of July, two thousand one, or for lease-purchase or  other  annual

  7  payments  under  a  lease-purchase  agreement or an equivalent agreement

  8  entered into on or after the fifteenth of January two  thousand  one  or

  9  having  an  unexpired  term  as of July first, two thousand one that are

 10  eligible for aid  under  the  opening  paragraph  of  this  subdivision,

 11  current  year  approved  expenditures  for  debt service shall mean debt

 12  service or lease-purchase or other annual payments  under  a  lease-pur-

 13  chase agreement or an equivalent agreement that would be incurred during

 14  the current year based on:

 15    (i)  An  assumed  amortization  to  be established by the commissioner

 16  pursuant to this subparagraph  of  the  approved  project  costs  to  be

 17  financed related to any approved project approved by the commissioner on

 18  or after the fifteenth of January two thousand one, for a period of:

 19    (A) thirty years if the project is for the construction or acquisition

 20  of a new school building,

 21    (B) twenty years if the project is for the construction of an addition

 22  to  a  school  building  or  for  the  reconstruction, rehabilitation or

 23  improvement of a school building for which a period of probable  useful-

 24  ness  of  twenty or more years is assigned pursuant to the local finance

 25  law, and

 26    (C) fifteen years if the project is for the reconstruction,  rehabili-

 27  tation  or improvement of a school building for which a period of proba-

                                        40                         12022-01-1

  1  ble usefulness of less than twenty years is  assigned  pursuant  to  the

  2  local finance law; and

  3    (ii)  An  assumed  amortization  to be established by the commissioner

  4  pursuant to this subparagraph of the sum of any assumed or actual unpaid

  5  principal, or the equivalent amount in  the  case  of  a  lease-purchase

  6  agreement  or  its  equivalent,  remaining  as of the first of July, two

  7  thousand one pursuant to an existing amortization or any unpaid  princi-

  8  pal  of  a  bond anticipation note as of the first of July, two thousand

  9  one that represents a portion, as determined by the commissioner, of the

 10  approved cost of a project approved by the  commissioner  prior  to  the

 11  fifteenth  of  January two thousand one, for a period, calculated to the

 12  nearest half year without rounding, of:

 13    (A) thirty years minus the number of years elapsed between the date of

 14  the first award of a general construction contract for such project  and

 15  the  first  of  July,  two  thousand  one  if  the  project  is  for the

 16  construction or acquisition of a new school building,

 17    (B) twenty years minus the number of years elapsed between the date of

 18  the first award of a general construction contract for such project  and

 19  the  first  of  July,  two  thousand  one  if  the  project  is  for the

 20  construction of an addition to a  school  building  or  for  the  recon-

 21  struction,  rehabilitation or improvement of a school building for which

 22  a period of probable usefulness of twenty  or  more  years  is  assigned

 23  pursuant to the local finance law, and

 24    (C)  fifteen  years minus the number of years elapsed between the date

 25  of the first award of a general construction contract for  such  project

 26  and the first of July, two thousand one if the project is for the recon-

 27  struction,  rehabilitation or improvement of a school building for which

                                        41                         12022-01-1

  1  a period of probable usefulness of less than twenty  years  is  assigned

  2  pursuant to the local finance law.

  3    (b)  Such  assumed  amortization for a project approved by the commis-

  4  sioner on or after the fifteenth of  January  two  thousand  one,  shall

  5  commence:    (i) eighteen months after such approval or (ii) on the date

  6  of receipt by the commissioner of a certification by the district that a

  7  general construction contract has been awarded for such project  by  the

  8  district,  whichever  is  later,  and shall provide for equal semiannual

  9  payments of principal and interest based on an interest rate established

 10  pursuant to subparagraph (4) of this paragraph for such purpose for  the

 11  school year during which such certification is received.

 12    (c)  Such assumed amortization of any assumed or actual unpaid princi-

 13  pal, or the equivalent amount in the case of a lease-purchase  agreement

 14  or  its  equivalent, remaining as of the first of July, two thousand one

 15  for a project approved by the commissioner prior  to  the  fifteenth  of

 16  January  two thousand one, shall commence on the first of July two thou-

 17  sand one, and shall provide for equal semiannual payments  of  principal

 18  and  interest  based on an interest rate established by the commissioner

 19  for such purpose for the two thousand one--two thousand two school year,

 20  provided that, notwithstanding any other provision of this section or of

 21  section 3609-a of this article, any aids payable pursuant to this subdi-

 22  vision for debt service incurred during the two thousand one--two  thou-

 23  sand  two  school  year  under  an assumed amortization of bonds or bond

 24  anticipation notes issued during the two thousand one--two thousand  two

 25  school  year  to  refinance  the remaining unpaid principal of a bond or

 26  bond anticipation note shall become payable on the first business day of

 27  July, two thousand two and shall be limited to the  amount  reported  to

 28  the  commissioner  as of November fifteenth, two thousand; and shall not

                                        42                         12022-01-1

  1  be included in the calculation of moneys apportioned pursuant to section

  2  3609-a of this article.

  3    (4) (a) Calculation of interest rates for the city school districts of

  4  the cities of Buffalo, Rochester, Syracuse and Yonkers. By the first day

  5  of  September  of the current year the comptroller of each of the cities

  6  of Buffalo, Rochester, Syracuse and Yonkers shall provide to the commis-

  7  sioner an analysis, as prescribed by the  commissioner,  of  the  actual

  8  average  interest rate applied to all capital debt incurred by such city

  9  related to school construction purposes during the base year and of  the

 10  estimated  average  interest  rate  applied  to  all  capital debt to be

 11  incurred by such city related to school construction purposes during the

 12  current year. Such interest rates shall be expressed  as  a  decimal  to

 13  five  places  rounded  to  the nearest eighth of one-one hundredth. Upon

 14  approval by the commissioner the actual average interest rate  shall  be

 15  established  as  the  interest  rate of such city applicable to the base

 16  year for the purposes of this subparagraph, and  the  estimated  average

 17  interest  rate  shall be tentatively established as the interest rate of

 18  such city applicable to the current year, except that all apportionments

 19  of aid payable during the current year based on such  estimated  average

 20  interest  rate  shall be recalculated in the following year and adjusted

 21  as appropriate based on the appropriate  actual  average  interest  rate

 22  then established by the commissioner.

 23    (b)  Calculation of interest rates for school districts other than the

 24  city school districts of the cities  of  Buffalo,  Rochester,  Syracuse,

 25  Yonkers and New York. By the first day of September two thousand one and

 26  by  the  first  day of March each year thereafter, each school district,

 27  other than the city school districts of the cities of  Buffalo,  Roches-

 28  ter,  Syracuse,  Yonkers and New York, shall provide to the commissioner

                                        43                         12022-01-1

  1  in a format prescribed by the commissioner a separate amortization sche-

  2  dule for all amortized debt issued by such school  district  during  the

  3  preceding  calendar  year  relating  to  the  construction, acquisition,

  4  reconstruction,  rehabilitation  or  improvement of any school building.

  5  Based on such reported amortizations and a methodology prescribed by the

  6  commissioner in regulations,  the  commissioner  shall  compute  average

  7  interest  rates  applied  to  all  such debt issued during the preceding

  8  calendar year. Such average interest rates shall be established  as  the

  9  interest  rates  of  each such school district applicable to the current

 10  year for the purposes of this subparagraph and shall be expressed  as  a

 11  decimal  to  five  places  rounded  to  the  nearest  eighth  of one-one

 12  hundredth.

 13    (c) At the end of each ten year segment  of  an  assumed  amortization

 14  established  pursuant  to subparagraphs two and three of this paragraph,

 15  the  commissioner  shall  revise  the  remaining  scheduled   semiannual

 16  payments of the outstanding principal and interest of such assumed amor-

 17  tization  based on the interest rates applicable for the current year if

 18  the difference of the interest rate  upon  which  the  existing  assumed

 19  amortization  is  based  minus  such  interest  rate  applicable for the

 20  current year is  equal  to  or  greater  than  one  quarter  of  one-one

 21  hundredth.

 22    (5)  Notwithstanding  any  other provisions of this paragraph, where a

 23  school district can demonstrate to the satisfaction of the  commissioner

 24  extenuating  circumstances  that  a  waiver is warranted for an existing

 25  amortization or  an  existing  lease-purchase  agreement  or  equivalent

 26  agreement  as  of  the first of July, two thousand one, the commissioner

 27  may, with approval of the director of the division of the budget,  grant

 28  a  waiver  adjusting (i) the period of assumed amortization to equal the

                                        44                         12022-01-1

  1  period of the existing amortization, (ii) the interest rate  applied  to

  2  such  amortization  to equal the actual average interest rate applied to

  3  the existing amortization, and/or (iii) the annual assumed  payments  of

  4  debt  service  to  equal  the aidable payments of debt service under the

  5  existing amortization.

  6    f. (1) "Debt service  on  bond  anticipation  notes  aidable  in  July

  7  following the year of expenditure" shall mean two thousand--two thousand

  8  one year debt service expenditures for bond anticipation notes issued in

  9  the  two  thousand--two thousand one school year for purposes other than

 10  to refinance the remaining principal of bond anticipation  notes  issued

 11  during an earlier school year.

 12    (b)  "Debt  service  on  new  bonds  and capital notes aidable in July

 13  following the year of expenditure" shall mean two thousand--two thousand

 14  one year debt service expenditures for bonds and/or capital notes issued

 15  in the two thousand--two thousand one school  year  for  purposes  other

 16  than  to  refinance  the  remaining principal of bond anticipation notes

 17  issued during an earlier school year.

 18    (2) Notwithstanding any inconsistent provisions of  this  subdivision,

 19  if  the earlier of (i) the date upon which the project has been approved

 20  by the commissioner, or  (ii)  the  first  date  upon  which  a  general

 21  construction  contract has been awarded or a purchase agreement has been

 22  executed, relating to construction of a new structure, an addition to an

 23  existing structure or the purchase of an existing structure,  is  on  or

 24  after January fifteenth two thousand one, the amount of fully annualized

 25  aid apportioned pursuant to paragraph b of this subdivision for approved

 26  expenditure  for  debt service for bond anticipation notes and for bonds

 27  and capital notes issued during the current  year  for  school  building

 28  purposes  and for lease-purchase or other annual payments under a lease-

                                        45                         12022-01-1

  1  purchase agreement or an equivalent agreement entered  into  during  the

  2  current  year  and  for base year approved expenditures for leases other

  3  than lease-purchase agreements or the equivalent, shall not  be  greater

  4  than the sum of

  5    (a) the funds made available for the priority project ceiling. For the

  6  two  thousand  one--two  thousand  two  school  year and thereafter, the

  7  priority project ceiling shall be one  hundred  thirty  million  dollars

  8  ($130,000,000).  For the two thousand--two thousand one school year, the

  9  priority project ceiling shall be the product, rounded  to  the  nearest

 10  million dollars, of the priority project ceiling and the quotient of the

 11  number  of  months, rounded to the nearest half month, in which projects

 12  are eligible for funding pursuant to this clause in the  two  thousand--

 13  two  thousand one school year divided by twelve. Project eligibility for

 14  funding pursuant to this clause will be prioritized on the basis of  the

 15  building  condition  surveys  submitted pursuant to subdivision six-e of

 16  this section. Priority projects shall have been approved by  the  voters

 17  of the school district or approved by the trustees or board of education

 18  for  school districts where voter approval is not required, and shall be

 19  categorized by the following classifications:

 20    (i) First priority projects shall be necessary to  insure  the  health

 21  and  safety  of  the  building's  occupants  or of neighboring residents

 22  through remediation of specific hazards identified by the department  of

 23  health  and  deficiencies  identified  by  fire  safety  inspections, or

 24  through correction of  code  deficiencies  that  are  determined  to  be

 25  hazardous  to  health or safety and are identified through such building

 26  condition survey;

                                        46                         12022-01-1

  1    (ii) Second priority projects shall be necessary to ameliorate immedi-

  2  ate  overcrowding,  as  defined  by  the  commissioner,  in  the  school

  3  district;

  4    (iii)  Third  priority projects shall be necessary to replace or reno-

  5  vate school buildings that have been in use for more than  forty  years,

  6  where  such projects do not include a capacity increase greater than ten

  7  percent of the gross floor area and where such  school  district  has  a

  8  needs-resource  index  in excess of the statewide median, as established

  9  by the commissioner;

 10    (iv) Fourth priority projects shall be projects to modernize or  reno-

 11  vate  school  buildings that have been in use for at least twenty years,

 12  where such projects do not include a capacity increase greater than  ten

 13  percent  of  the  gross  floor area and where such school district has a

 14  needs-resource index in excess of the statewide median,  as  established

 15  by the commissioner;

 16    (v)  Fifth  priority  projects  shall  be  projects to add significant

 17  capacity where the majority of such added capacity is  used  to  augment

 18  basic educational space such as classrooms and laboratories, or building

 19  system  renovations  which are designed to extend the useful life of the

 20  building by at least fifteen years and where such school district has  a

 21  needs-resource  index  in excess of the statewide median, as established

 22  by the commissioner.

 23    (vi) Sixth priority projects shall be projects that have not been made

 24  eligible pursuant to subclauses (i), (ii), (iii), (iv) or  (v)  of  this

 25  clause  and  are  not  ineligible for building aid pursuant to subclause

 26  (vii) of this clause.

 27    (vii) Notwithstanding any other provision of this clause, projects  to

 28  modernize  or  renovate  school buildings that have been in use for less

                                        47                         12022-01-1

  1  than twenty years; projects to renovate or reconstruct space leased  for

  2  non-school  district purposes, excluding space leased to boards of coop-

  3  erative educational services; and  projects  to  correct  design  flaws,

  4  errors  or omissions and improper construction shall not be eligible for

  5  an apportionment of building aid pursuant to this clause.

  6    Within each priority category, projects shall be ranked first  by  the

  7  district's  need  resource index, then by the adjusted age of the build-

  8  ing.  Projects shall be selected for funding in rank order,  first  from

  9  first  priority  projects, then from second priority projects, then from

 10  third priority projects, then from fourth priority projects,  then  from

 11  fifth  priority projects, then from sixth priority projects. Such deter-

 12  mination shall be made pursuant to regulations of the commissioner on  a

 13  quarterly basis, on the first business day following February fifteenth,

 14  the  first  business day following May fifteenth, the first business day

 15  following August fifteenth and the first business day following November

 16  fifteenth.  Any school district not in a city having a population of one

 17  million or more shall be eligible to receive a maximum of twenty percent

 18  of the funds available pursuant  to  this  paragraph.  Any  city  school

 19  district  in  a city having a population of one million or more shall be

 20  eligible to receive a minimum of forty percent of  the  funds  available

 21  pursuant  to  this  paragraph,  but  not more than sixty percent of such

 22  funds, provided, however, that in the event that any such city  has  not

 23  made application for and been awarded such funds as of April first, they

 24  shall be made available for other projects eligible for funding pursuant

 25  to  this  clause. No application shall be set aside for insufficiency of

 26  funds to make a complete award, but shall  be  eligible  for  a  partial

 27  award  in  one  quarter  and  shall  retain its priority date status for

 28  awards designated for such purposes in a future quarter, and

                                        48                         12022-01-1

  1    (b) thirty million dollars for emergency projects.  Projects  eligible

  2  for  funding  pursuant  to  this  clause shall be construction emergency

  3  projects that are reviewed by the  state  education  department  at  the

  4  request  of  the  school  district and are determined to be necessary to

  5  remediate  emergency  situations  which arise in public school buildings

  6  and threaten the health and/or safety of building occupants, as a result

  7  of the unanticipated discovery of asbestos or other hazardous substances

  8  during construction work on a school or significant damage caused  by  a

  9  fire, snow storm, ice storm, excessive rain, high wind, flood or similar

 10  catastrophic  event which results in the necessity for immediate repair.

 11  If funds made available pursuant to this subparagraph remain unallocated

 12  as of April first, they shall be made available  for  priority  projects

 13  eligible  for  funding  pursuant to clause (a) of this subparagraph. If,

 14  upon subsequent review of the project, it is deemed not to have been  an

 15  emergency  project,  the  district shall have its apportionments payable

 16  pursuant to this section reduced by the  amount  of  any  apportionments

 17  previously  paid  pursuant  to  this  clause  for such project, and such

 18  project shall be eligible for funding pursuant to  clause  (a)  of  this

 19  subparagraph.

 20    (3)  Notwithstanding  any inconsistent provisions of this subdivision,

 21  if the earlier of (i) the date upon which the project has been  approved

 22  by  the  commissioner,  or  (ii)  the  first  date  upon which a general

 23  construction contract has been awarded or a purchase agreement has  been

 24  executed, relating to construction of a new structure, an addition to an

 25  existing  structure  or  the purchase of an existing structure, is on or

 26  after January fifteenth, two thousand one, the amount of aid apportioned

 27  for base year approved  expenditures  for  capital  outlays  for  school

 28  building purposes pursuant to paragraph b of this subdivision, exclusive

                                        49                         12022-01-1

  1  of  base  year  approved  expenditures  for  capital  outlays  for lease

  2  payments, shall not be greater than the funds  made  available  for  the

  3  capital  outlay  ceiling.  For  the  two  thousand one--two thousand two

  4  school  year  and  thereafter, the capital outlay ceiling shall be sixty

  5  million dollars ($60,000,000). For the two  thousand--two  thousand  one

  6  school year, the capital outlay ceiling shall be the product, rounded to

  7  the nearest million dollars, of the capital outlay ceiling for two thou-

  8  sand one--two thousand two and thereafter and the quotient of the number

  9  of  months,  rounded  to  the  nearest half month, in which projects are

 10  eligible for funding pursuant to this subparagraph in the two  thousand-

 11  -two thousand one school year divided by twelve. Project eligibility for

 12  funding pursuant to this subparagraph will be prioritized and determined

 13  in  the  same  manner  used to determine project eligibility pursuant to

 14  clause (a) of subparagraph (2) of this paragraph. Capital outlay expend-

 15  itures for eligible projects shall be eligible for an apportionment upon

 16  submission by the district to the department of documentation of payment

 17  of such expenditures for work on an approved project.

 18    g. Eligibility criteria for aid for refunding  of  bonds.  (1)  To  be

 19  eligible  for  any apportionment of aid pursuant to this subdivision for

 20  approved expenditures for the refunding of  bonds  to  refinance  school

 21  construction,  reconstruction  or purchase of existing structures or for

 22  expenditures  incidental  to  such  refunding  of  bonds  the  following

 23  requirements shall be met:

 24    (i)  the  refunding  shall  be in accordance with section 90.10 of the

 25  local finance law;

 26    (ii) the bonds to be refunded shall have been  issued  exclusively  to

 27  finance  school  construction,  reconstruction  or  purchase of existing

 28  structures;

                                        50                         12022-01-1

  1    (iii) the issuance of refunding bonds shall result in  a  net  present

  2  value  savings  to  both  the  school  district and the state, provided,

  3  however, that the gross dollar savings over the life of the  bond  shall

  4  exceed  the approved fees and other charges of refinancing as defined in

  5  subparagraph  one of paragraph h of this subdivision, except in the case

  6  of the refunding of bonds issued prior to January fifteenth,  two  thou-

  7  sand one, facilities which were eligible for building aid, but for which

  8  the  annual aid apportionment payable in the two thousand one--two thou-

  9  sand two and two thousand  two--two  thousand  three  school  years  for

 10  approved  expenditures  for  debt  service are subsequently reduced as a

 11  result of the application of assumed amortization  to  unpaid  principal

 12  outstanding as of July first, two thousand one; and

 13    (iv)  for any refunding of bonds for which a refunding bond resolution

 14  is approved after April first, nineteen hundred ninety-four,  the  board

 15  of  education or trustees shall certify that the intention of the school

 16  district to accept  proposals  for  the  refunding  of  bonds  has  been

 17  announced  in at least one regular public meeting of such board and that

 18  all such proposals received have been discussed in a second public meet-

 19  ing of the board held no sooner than fourteen days after such  announce-

 20  ment.

 21    (2) For the purposes of subparagraph three of this paragraph, approved

 22  expenditures  for  the refunding of bonds shall mean any amount included

 23  in the principal of the refunding bond issue that represents  the  unma-

 24  tured  interest  on the bonds to be refunded to and including either the

 25  date or dates such bonds were to mature or the date  or  dates  set  for

 26  redemption  prior  to their maturities, plus the redemption premiums, if

 27  any, payable on the bonds to be  refunded  on  the  redemption  date  or

                                        51                         12022-01-1

  1  dates,  plus  the  approved  fees  and  other  charges of refinancing as

  2  defined in subparagraph one of paragraph h of this subdivision.

  3    (3)  Approved  expenditures  for  the refunding of bonds as defined in

  4  subparagraph two of this paragraph shall be  excluded  from  the  calcu-

  5  lation  of  any ratio of allowable expense to principal that may be used

  6  to determine approved debt service expense.

  7    h. Additional apportionment of building  aid  for  approved  fees  and

  8  other charges and expenses related to the issuance of refinancing bonds.

  9  (1) For the purposes of this subdivision approved fees and other charges

 10  of  refinancing  shall  include the costs and expenses incidental to the

 11  issuance of refunding bonds eligible for an  apportionment  pursuant  to

 12  paragraph  g  of  this  subdivision, the costs of the development of the

 13  refunding financial plan and of executing and performing the  terms  and

 14  conditions of the escrow contract and all fees and charges of the escrow

 15  holders.

 16    (2)  Notwithstanding  any inconsistent provisions of this subdivision,

 17  school districts shall also be eligible for an apportionment pursuant to

 18  this subdivision in an amount equal to the product of the aid ratio used

 19  for building aid in the current year as defined in paragraph c  of  this

 20  subdivision  and  the base year approved fees and other charges of refi-

 21  nancing as defined in subparagraph one of this paragraph,  but  only  to

 22  the extent such costs and expenses are not paid from the proceeds of the

 23  refunding  bonds and are not otherwise eligible for aid pursuant to this

 24  subdivision.

 25    i. For the purpose of calculating an apportionment  pursuant  to  this

 26  subdivision:

 27    (1) current approved expenditures for debt service for energy perform-

 28  ance  contracts  authorized  pursuant to section 9-103 of the energy law

                                        52                         12022-01-1

  1  shall mean approved debt service incurred by  a  school  district  under

  2  such contract during the current school year related to the financing of

  3  such   construction,   acquisition,  reconstruction,  rehabilitation  or

  4  improvement  of  any  school  building,  provided that as a condition of

  5  eligibility for aid:

  6    (i) The amortization period in the  energy  performance  contract  and

  7  related  financing  agreements  shall  not exceed the term of the energy

  8  performance contract.

  9    (ii) Any state building aid attributable  to  such  project  shall  be

 10  excluded  in  determining  the cost savings under the energy performance

 11  contract.

 12    (iii) The energy performance contractor shall  guarantee  recovery  of

 13  contract  costs  from  energy  savings  realized  by the school district

 14  during the term of the energy  performance  contract,  which  shall  not

 15  exceed eighteen years.

 16    (2)  Notwithstanding  any  inconsistencies  of this paragraph, for aid

 17  payable in the two thousand one--two thousand two school year and there-

 18  after, approved expenditures for debt  service  for  energy  performance

 19  contracts shall be based on assumed amortization where required by para-

 20  graph e of this subdivision.

 21    §  19. Paragraph a of subdivision 6-b of section 3602 of the education

 22  law, as added by chapter 700 of the laws of 1993, is amended to read  as

 23  follows:

 24    a.  Two  or  more  school  districts eligible for  operating  flex aid

 25  pursuant to this section, other than a city school district  in  a  city

 26  with  one  hundred  twenty-five thousand inhabitants or more, that enter

 27  into an agreement in accordance with section one hundred  nineteen-o  of

 28  the general municipal law and this subdivision, may receive building aid

                                        53                         12022-01-1

  1  pursuant   to   this  subdivision  for  approved  expenditures  for  the

  2  construction or reconstruction of one or more single site joint  facili-

  3  ties. To be eligible for such aid, the general contracts for the project

  4  shall  have  been awarded on or after July first, nineteen hundred nine-

  5  ty-three, and the project and joint agreement shall have  been  approved

  6  by  the  commissioner.  For  participating school districts in which the

  7  school budget is subject to voter approval, the joint agreement shall be

  8  subject to voter approval.

  9    § 20. Subparagraph 1 of paragraph a and paragraph c of subdivision 6-d

 10  of section 3602 of the education law, as added by section 39 of  part  A

 11  of chapter 436 of the laws of 1997, are amended to read as follows:

 12    (1) Moneys appropriated to the department for the extraordinary school

 13  capital needs program for New York city shall be used in accordance with

 14  the provisions of this subdivision. In addition to apportionments other-

 15  wise provided by this section, for aid payable in the school years nine-

 16  teen  hundred  ninety-eight--ninety-nine through two thousand--two thou-

 17  sand one, the commissioner may annually approve an application from  the

 18  board  of  education of the city school district of the city of New York

 19  for funds in an amount not to exceed thirty-three million three  hundred

 20  thirty  thousand dollars , and for aid payable in the two thousand one--

 21  two thousand two school year, the commissioner may approve  an  applica-

 22  tion from the board of education of the city school district of the city

 23  of  New  York  for  funds in an amount not to exceed fifty-three million

 24  three hundred twenty-eight thousand dollars , to repair public  instruc-

 25  tional  school  facilities  based  on  priorities  set by each community

 26  school district superintendent and, in the  case  of  high  schools  and

 27  special education buildings, the chancellor, in New York city.

                                        54                         12022-01-1

  1    c.  In the event the appropriation for purposes of this subdivision in

  2  any year is insufficient to pay all claims  received  pursuant  to  this

  3  subdivision,  the commissioner shall pay such claims on a prorated basis

  4  among all districts  filing  such  claims  until  the  appropriation  is

  5  exhausted.  For  aid payable in the nineteen hundred ninety-eight--nine-

  6  ty-nine through the two-thousand--two thousand one school years, the aid

  7  payable pursuant to this subdivision  shall  not  exceed  fifty  million

  8  dollars  ($50,000,000) ,  and for the two thousand one--two thousand two

  9  school year and thereafter the aid payable pursuant to this  subdivision

 10  shall not exceed eighty million dollars ($80,000,000) .

 11    §  21.  Paragraph  c of subdivision 7 of section 3602 of the education

 12  law, as amended by chapter 474 of the laws of 1996, is amended  to  read

 13  as follows:

 14    c.  For  the  purposes  of this apportionment, approved transportation

 15  capital, debt service, and lease expense shall be the actual expenditure

 16  incurred by a school and approved by the commissioner for those items of

 17  transportation capital, debt service and lease expense  allowable  under

 18  subdivision  two  of  section  thirty-six hundred twenty-three-a of this

 19  article for: (i) the regular aidable transportation of pupils,  as  such

 20  terms  are defined in sections thirty-six hundred twenty-one and thirty-

 21  six hundred twenty-two-a of this article,  (ii)  the  transportation  of

 22  children with disabilities pursuant to article eighty-nine of this chap-

 23  ter, and (iii) the transportation of homeless children pursuant to para-

 24  graph  c  of subdivision four of section thirty-two hundred nine of this

 25  chapter, provided that the total approved cost  of  such  transportation

 26  shall not exceed the amount of the total cost of the most cost-effective

 27  mode  of  transportation. Approvable expenses for the purchase of school

 28  buses shall be limited to the actual purchase price, or the  expense  as

                                        55                         12022-01-1

  1  if  the  bus  were purchased under state contract, whichever is less. If

  2  the commissioner determines that no comparable bus was  available  under

  3  state contract at the time of purchase, the approvable expenses shall be

  4  the  actual purchase price or the state wide median price of such bus in

  5  the most recent base year in which such  bus was sold,  median price was

  6  established with an allowable year to year CPI increase  as  defined  in

  7  subdivision  fourteen  of  section  three  hundred five of this chapter;

  8  whichever is less. Such median shall be computed by the commissioner for

  9  the purposes of this subdivision. Commencing with  aid  payable  in  the

 10  nineteen  hundred  ninety-six--ninety-seven school year, no aid shall be

 11  payable in the current year for costs incurred for the purchase or lease

 12  of a school bus in the base year unless (i) such costs were budgeted  by

 13  the  school  district  and  so  reported to the commissioner by November

 14  fifteenth of the base year or (ii) such costs were incurred on an  emer-

 15  gency  basis to replace a school bus that has been rendered unusable due

 16  to accident, fire or other similar circumstance, and such emergency  and

 17  the  cost  of  such replacement were reported to the commissioner within

 18  sixty days of such replacement; provided, however, that  nothing  herein

 19  shall prohibit the district from claiming aid for such purchase or lease

 20  of a school bus in the year following the current school year as if such

 21  costs  were  approved transportation expense incurred during the current

 22  year for the purposes of paragraph a of  this  subdivision  and  to  the

 23  extent  that  such  costs are identified to the commissioner by November

 24  first of the current year.

 25    § 22. Subdivision 10 of section 3602 of the education law, as  amended

 26  by chapter 301 of the laws of 1996, is amended to read as follows:

 27    10. a. Program approval requirements.  Except as provided in subclause

 28  (ii)  of  clause  (G)  of subparagraph two of paragraph g of subdivision

                                        56                         12022-01-1

  1  twelve of this section, any school district  required  to  set  aside  a

  2  portion  of its comprehensive operating aid for pupils with compensatory

  3  educational needs in an amount in excess of two hundred  fifty  thousand

  4  dollars, any  Any school district  receiving limited English proficiency

  5  aid  pursuant  to subdivision twenty-two of this section or any district

  6  receiving an additional apportionment pursuant to  subdivision  nineteen

  7  of  this section for pupils with disabilities or any district  receiving

  8  an additional apportionment pursuant to subdivision  seventeen  of  this

  9  section  for  pupils  in  career  education programs shall use the total

 10  funds attributable to such pupils for locally administered programs  for

 11  such  pupils  in accordance with regulations issued by the commissioner.

 12  Such regulations shall provide for the use of such funds in  the  manner

 13  determined by the commissioner to be the most educationally advantageous

 14  for such pupils; and such regulations shall also include annual district

 15  reporting  requirements  which  shall require the identification of such

 16  pupils, a statement describing the expenditure of the  preceding  year's

 17  funds  for  such  pupils  and an evaluation of the results obtained from

 18  such expenditures. A district which spends any part of its total  annual

 19  apportionment  attributable  to such pupils in an unauthorized manner in

 20  the base year shall have its current year apportionment reduced  by  the

 21  amount of such unauthorized expenditures in the base year.

 22    b.  District  plans  of  service.  Except as provided in clause (G) of

 23  subparagraph two of paragraph g of subdivision twelve of  this  section,

 24  any school district required to set aside a portion of its comprehensive

 25  operating  aid for pupils with compensatory educational needs as defined

 26  in such paragraph g, or any school district  receiving  limited  English

 27  proficiency aid pursuant to subdivision twenty-two of this section or an

 28  additional  apportionment  pursuant  to  subdivision  nineteen  of  this

                                        57                         12022-01-1

  1  section for pupils with disabilities or  Any school  district  receiving

  2  an  additional  apportionment  pursuant to subdivision seventeen of this

  3  section for pupils in career education programs shall, prior to  Septem-

  4  ber  first, nineteen hundred seventy-four and every third year thereaft-

  5  er, submit to the commissioner an acceptable plan of service  describing

  6  the  student outcomes expected from implementation of the proposed plan,

  7  except that after September  first,  nineteen  hundred  eighty-six  such

  8  plans  with respect to the apportionment for pupils with disabilities or

  9  for pupils in career education programs shall  be  submitted  every  two

 10  years at a date specified by the commissioner and revised annually. Such

 11  plans  shall  be in a form prescribed by the commissioner, and except as

 12  heretofore provided, shall have the content prescribed  by  the  commis-

 13  sioner.  The  commissioner may, from time to time, require amendments of

 14  such plans as deemed to be necessary  and  appropriate  to  further  the

 15  educational welfare of the pupils involved.

 16    § 23. Intentionally omitted.

 17    §  24. Subdivision 12 of section 3602 of the education law is REPEALED

 18  and a new subdivision 12 is added to read as follows:

 19    12. Flex aid. a. Notwithstanding any provisions of law to the  contra-

 20  ry,  for  aid  payable  in the two thousand one--two thousand two school

 21  year and thereafter, each school district shall be entitled  to  receive

 22  flex aid which shall equal the greater of:

 23    (1)  the  sum  of  aids  payable in the two thousand--two thousand one

 24  school year pursuant to subdivisions six-d, twelve and nineteen of  this

 25  section  and sections forty-four hundred one and forty-four hundred five

 26  of this chapter and an amount equal to the product  of  the  flex  total

 27  aidable pupil units and the sum of twenty dollars and the product of one

                                        58                         12022-01-1

  1  hundred  dollars  and  forty-two cents, the regional cost factor and the

  2  flex aid ratio; or

  3    (2)  the sum of aids payable in the base year pursuant to subdivisions

  4  six-d, twelve, nineteen and forty of this section  and  sections  forty-

  5  four  hundred one and forty-four hundred five of this chapter multiplied

  6  by the sum of one and the flex adjustment factor.

  7    b. Performance improvement incentive award.  (1)  For the two thousand

  8  two--two thousand three school year and thereafter,  a  school  district

  9  shall  be eligible for an apportionment to recognize and reward improved

 10  student performance. The performance improvement standard used to  iden-

 11  tify such districts shall use the results of the fourth and eighth grade

 12  English language arts and mathematics tests, the performance of a cohort

 13  of secondary-level students on the Regents English and mathematics exam-

 14  inations  and,  for the two thousand six--two thousand seven school year

 15  and thereafter,  shall  include  the  cohort  graduation  rate  for  the

 16  district, where applicable. The performance standard shall be based on a

 17  year-to-year  comparison of the difference between current year and base

 18  year two-year rolling averages of the mean scale scores  for  each  test

 19  conducted  in  such  district  and,  where applicable, on the percentage

 20  change from the base year to the current year in the  cohort  graduation

 21  rate.  In order to be recognized as a district demonstrating improvement

 22  in student performance, the district must have:

 23    (i)  tested  more than twenty students in each of the tests applicable

 24  for the grades in such district for each of  the  three  years  used  in

 25  calculating the performance standard,

 26    (ii)  demonstrated  an  increase  in  the  two-year average mean scale

 27  scores for each test conducted in such district, and

                                        59                         12022-01-1

  1    (iii) for the two thousand six--two thousand  seven  school  year  and

  2  thereafter,  demonstrated  an  improvement in the year-to-year change in

  3  the cohort graduation rate, where applicable.

  4    (2)  For  eligible  districts,  the  performance improvement incentive

  5  award may be awarded, within amounts appropriated therefor, on the basis

  6  of an allocation plan developed by the commissioner, with  the  approval

  7  of  the  director of the budget, which shall take into account consider-

  8  ations including but not limited to the degree to which student perform-

  9  ance within the district has improved and the number of students  served

 10  by the district.

 11    c. Definitions.  (1) The flex aid ratio shall be computed by subtract-

 12  ing  from  one  and thirty-seven hundredths the product computed to four

 13  decimals without rounding obtained  by  multiplying  the  flex  combined

 14  wealth  ratio  by one and ten hundredths, with the result expressed as a

 15  decimal and carried to four places without rounding,  but  not  be  less

 16  than zero nor more than nine-tenths.

 17    (2)  The  flex combined wealth ratio shall mean the number computed to

 18  four decimals without rounding obtained when fifty  per  centum  of  the

 19  flex  pupil wealth ratio is added to fifty per centum of the flex alter-

 20  nate pupil wealth ratio.

 21    (3) The flex pupil wealth ratio shall mean the number computed to four

 22  decimals without rounding obtained when actual  valuation  of  a  school

 23  district  divided by the flex total wealth pupil units is divided by the

 24  statewide average actual valuation per flex total wealth pupil  unit  as

 25  computed  by  the commissioner in accordance with the provisions of this

 26  section. Such statewide average shall be based on the latest single year

 27  actual valuation computed pursuant to this section, shall be rounded  to

 28  the  nearest  hundred, shall include the actual valuation and flex total

                                        60                         12022-01-1

  1  wealth pupil units of all school districts eligible for aid pursuant  to

  2  this  section  except  central  high school districts, shall be based on

  3  citywide data for the city school district for the  city  of  New  York,

  4  shall be established by the commissioner and shall be transmitted to the

  5  school districts.

  6    (4)  The  flex  alternate  pupil  wealth  ratio  shall mean the number

  7  computed to four decimals without rounding obtained  when  the  adjusted

  8  gross income of a school district for the calendar year, two years prior

  9  to  the  calendar year in which the base year began, divided by the flex

 10  total wealth pupil units of such district is divided  by  the  statewide

 11  adjusted  gross  income per flex total wealth pupil unit; such statewide

 12  average gross income per flex  pupil  shall  be  based  on  income  data

 13  computed  in  accordance with regulations adopted by the commissioner of

 14  taxation and finance based upon personal  income  tax  returns  for  the

 15  calendar  year  three  years  prior  to  the  calendar year in which the

 16  current school year  commences,  as  reported  to  the  commissioner  by

 17  September  of  the  base  year,  including  the results of the permanent

 18  computerized statewide school district address match and income  verifi-

 19  cation  system.  Such  statewide average shall be rounded to the nearest

 20  hundred and shall include the  adjusted  gross  income  and  flex  total

 21  wealth  pupil units of all school districts eligible for aid pursuant to

 22  this section except central high school districts, shall include  income

 23  for the city school district of the city of New York equal to the sum of

 24  the  income  of the boroughs of the city, shall be established each year

 25  by the commissioner and shall be transmitted to  school  districts.  The

 26  adjusted gross income of a central high school district equal to the sum

 27  of the adjusted gross income of each of its component school districts.

                                        61                         12022-01-1

  1    (5)  The  flex  total  wealth  pupil  units shall equal the sum of (a)

  2  adjusted average daily attendance year computed pursuant to this section

  3  for the year prior to the base year, plus  the  attendance  of  resident

  4  pupils attending public school elsewhere, less the sum of the attendance

  5  of  nonresident  pupils, (b) the attendance of resident pupils attending

  6  full-time in board of cooperative educational  services  (not  otherwise

  7  specifically  included), (c) the flex secondary weighting for flex total

  8  wealth pupil units, and (d) the flex additional aidable pupil units  for

  9  flex  total  wealth  pupil  units,  where  the attendance of nonresident

 10  pupils attending public school  in  the  district  and  resident  pupils

 11  attending  such schools outside of the district are determined by apply-

 12  ing to the number of such pupils registered during the  school  year  in

 13  each  case the ratio of aggregate days attendance to the possible aggre-

 14  gate days attendance of  all  pupils  in  attendance  in  the  district.

 15  Native  American  pupils  of  a  reservation attending public school, or

 16  pupils living on the United States military reservation  at  West  Point

 17  attending  public  school,  shall be deemed to be resident pupils of the

 18  district providing such school for purposes of this paragraph.  Where  a

 19  school district has entered into a contract with state university pursu-

 20  ant to subdivision two of section three hundred fifty-five of this chap-

 21  ter  under  which  the  school  district  makes payment in the nature of

 22  tuition for the education of certain children residing in the  district,

 23  such children for whom such tuition payments are made shall be deemed to

 24  be  resident  pupils of such district for these purposes. The flex total

 25  wealth pupil units of pupils residing  in  a  component  district  of  a

 26  central high school district and attending the central high school shall

 27  be included in the flex total wealth pupil units of the component school

 28  district.  The  flex  total  wealth pupil units of a central high school

                                        62                         12022-01-1

  1  district shall be the sum of the flex total wealth pupil  units  of  its

  2  component  school districts.  Provided that when a school district expe-

  3  riences an increase in flex total wealth pupil units during the  current

  4  year  because of the closing in whole, or in part, of a nonpublic school

  5  or a campus school, or a school previously operated by the United States

  6  government or the United States military reservation at West Point,  the

  7  commissioner,  in  computing  the flex aid ratio of such district, shall

  8  permit the use of such additional flex total wealth pupil  units  during

  9  the  current year and the next succeeding year, provided that such addi-

 10  tional flex total wealth pupil units attributable to  such  closing,  or

 11  part  thereof,  shall  be  in  excess of one hundred students; provided,

 12  however, that such district which qualifies for an increase in  resident

 13  weighted average daily attendance pursuant to paragraph g of subdivision

 14  two  of  this section, shall use the increase in flex total wealth pupil

 15  units, even if such increase in flex total wealth pupil  units  is  less

 16  than one hundred.

 17    (6)  The  flex  secondary  weighting for flex total wealth pupil units

 18  shall equal the product of: (a)  twenty-five  per  centum  and  (b)  the

 19  adjusted  average  daily  attendance  of resident pupils in grades seven

 20  through twelve for the year prior to the base year, excluding attendance

 21  of pupils who receive a weighting for handicapping conditions except for

 22  those pupils, if any, for whom a  weighting  of  thirteen-hundredths  is

 23  provided  in  clause four of subparagraph b of paragraph one of subdivi-

 24  sion nineteen of this section.

 25    (7) The flex additional aidable pupil  units  for  flex  total  wealth

 26  pupil  units  shall equal the sum of (a) the product of thirty-three per

 27  centum and the sum of the flex limited English  proficiency  count,  the

 28  flex sparsity count for flex total wealth pupil units and the flex lunch

                                        63                         12022-01-1

  1  count for flex total wealth pupil units and (b) resident weighted pupils

  2  with handicapping conditions.

  3    (8) The flex limited English proficient count shall mean the number of

  4  pupils  served in the year prior to the base year in programs for pupils

  5  with limited English proficiency approved by the  commissioner  pursuant

  6  to  the  provisions  of  this chapter and in accordance with regulations

  7  adopted for such purpose.

  8    (9) The flex sparsity count for flex total  wealth  pupil  units,  for

  9  districts  operating a kindergarten through grade twelve school program,

 10  shall mean the product of (a) the district's resident  adjusted  average

 11  daily attendance computed pursuant to this section for the year prior to

 12  the  base  year and (b) the quotient, computed to three decimals without

 13  rounding, of the positive remainder of twenty-five minus the  district's

 14  resident  adjusted  average  daily attendance per square mile divided by

 15  fifty-eight, but not less than zero.

 16    (10) The flex lunch count for flex total wealth pupil units equals the

 17  product of (a) the district's resident adjusted average daily attendance

 18  computed pursuant to this section for the year prior to  the  base  year

 19  and  (b)  the  percent  of  eligible applicants for the free and reduced

 20  price lunch program as defined in paragraph p of subdivision one of this

 21  section.

 22    (11) The flex total aidable pupil  units  shall  be  the  sum  of  the

 23  district's  adjusted  average daily attendance computed pursuant to this

 24  section for the year prior to the base year multiplied by the enrollment

 25  index computed pursuant to this section for  the  base  year,  the  flex

 26  secondary  school weighting, and the flex additional aidable pupil units

 27  computed for the year prior to the  base  year.    In  such  computation

 28  school  districts may, with the commissioner's approval, exclude attend-

                                        64                         12022-01-1

  1  ance for those days on which school attendance  was  adversely  affected

  2  because  of an epidemic or because of a religious holiday as provided in

  3  paragraph b of subdivision two of this  section.  For  the  purposes  of

  4  computing  flex  aid, a district may use either flex total aidable pupil

  5  units for the current aid year or the  average  of  flex  total  aidable

  6  pupil  units  for  the  current  aid  year and the prior aid year, using

  7  current aid year definitions of flex total aidable pupil units for  both

  8  years.

  9    (12)  The  flex secondary weighting for flex total aidable pupil units

 10  shall equal the product of: (a) twenty-five per centum, (b) the adjusted

 11  average daily attendance in grades seven through  twelve  for  the  year

 12  prior  to  the  base  year, excluding attendance of pupils who receive a

 13  weighting for handicapping conditions except for those pupils,  if  any,

 14  for  whom  a weighting of thirteen-hundredths is provided in clause four

 15  of subparagraph b of paragraph  one  of  subdivision  nineteen  of  this

 16  section,  and (3) the enrollment index computed pursuant to this section

 17  for the base year.

 18    (13) The flex additional aidable pupil units for  flex  total  aidable

 19  pupil  units shall equal the sum of (a) the attendance of summer session

 20  pupils weighted at twelve per centum and (2) the product of thirty-three

 21  per centum and the sum of the flex limited  English  proficiency  count,

 22  the  flex sparsity count for flex total aidable pupil units and the flex

 23  lunch count for flex total aidable pupil units.   Nothing  contained  in

 24  this  subdivision  shall  be construed to result in the inclusion of the

 25  attendance of summer session pupils in the computation  of  weighted  or

 26  adjusted  average  daily  attendance pursuant to subdivision two of this

 27  section.

                                        65                         12022-01-1

  1    (14) The flex sparsity count for flex total aidable pupil  units,  for

  2  districts  operating a kindergarten through grade twelve school program,

  3  shall mean the product of (a)  the  district's  adjusted  average  daily

  4  attendance  computed  pursuant to this section for the year prior to the

  5  base  year  multiplied by the enrollment index computed pursuant to this

  6  section for the base year and (b) the quotient, computed to three  deci-

  7  mals  without  rounding,  of  (i)  the positive remainder of twenty-five

  8  minus the result obtained when the amount computed  pursuant  to  clause

  9  (a)  of  this  subparagraph  is  divided by the district's square miles,

 10  divided by (ii) fifty-eight, but not less than zero.

 11    (15) The flex lunch count for flex total aidable  pupil  units  equals

 12  the  product  of  (a)  the  district's adjusted average daily attendance

 13  computed pursuant to this section for the year prior to  the  base  year

 14  and  (b)  the  percent  of  eligible applicants for the free and reduced

 15  price lunch program as defined in paragraph p of subdivision one of this

 16  section.

 17    (16) For the purposes of this subdivision, regional cost factor  shall

 18  mean:

 19    (a) for school districts in the Capital District region, as defined in

 20  commissioner's  regulations  for this purpose, one and two hundred fifty

 21  thousandths;

 22    (b) for school districts in the Southern Tier region,  as  defined  in

 23  commissioner's  regulations for this purpose, one and one hundred fifty-

 24  two thousandths;

 25    (c) for school districts in the Western Region, as defined in  commis-

 26  sioner's  regulations  for this purpose, one and one hundred twenty-five

 27  thousandths;

                                        66                         12022-01-1

  1    (d) for school districts in the Hudson Valley region,  as  defined  in

  2  commissioner's regulations for this purpose, one and four hundred seven-

  3  ty-five thousandths;

  4    (e)  for  school districts in the Long Island/New York City region, as

  5  defined in commissioner's regulations for this  purpose,  one  and  five

  6  hundred fifteen thousandths;

  7    (f)  for  school  districts  in the Finger Lakes region, as defined in

  8  commissioner's regulations for this purpose, one and two hundred  forty-

  9  four thousandths;

 10    (g)  for school districts in the Central Region, as defined in commis-

 11  sioner's regulations for this purpose,  one  and  two  hundred  eighteen

 12  thousandths;

 13    (h)  for  school  districts in the Mohawk Valley region, as defined in

 14  commissioner's regulations for this purpose, one and  eighty-four  thou-

 15  sandths; and

 16    (i)  for  school  districts in the North Country region, as defined in

 17  commissioner's regulations for this purpose, one.

 18    (17) The flex adjustment factor shall be equal to the greater  of  ten

 19  thousandths  or  the  quotient  of ten thousandths divided by the school

 20  district's flex combined wealth ratio, such result taken to four decimal

 21  places without rounding except that such result shall not exceed fifteen

 22  thousandths.

 23    d. City-wide computations. For the city school district of the city of

 24  New York, all computations for the purposes of flex aid shall  be  on  a

 25  city-wide basis.

 26    e.  Setaside  for  the education of pupils with limited English profi-

 27  ciency. In the two thousand one--two thousand two school year and there-

 28  after, each school district which operated an approved  limited  English

                                        67                         12022-01-1

  1  proficiency  program  in  the two thousand--two thousand one school year

  2  pursuant to subdivision two-a of section thirty-two hundred four of this

  3  chapter and the regulations of the commissioner  in  the  current  year,

  4  shall  set  aside  a  portion  of  its flex aid payable pursuant to this

  5  subdivision for the purpose of conducting such approved limited  English

  6  proficiency program.

  7    (1)  Calculation  of setaside for the education of pupils with limited

  8  English proficiency. The setaside  for  the  education  of  pupils  with

  9  limited English proficiency shall equal the amount of aid that was paya-

 10  ble  to  the  school district pursuant to subdivision twenty-two of this

 11  section in the two thousand--two thousand one school year.

 12    (2) Adjustment of setaside. Notwithstanding the provisions of subpara-

 13  graph one of this paragraph, if the commissioner  finds  that  a  school

 14  district  which  operated an approved limited English proficiency in the

 15  base year does not operate an approved program in the  current  year  or

 16  operates  a  smaller program in the current year because there are no or

 17  fewer pupils in the district  needing  such  program,  the  commissioner

 18  shall  adjust  the  amount  of the setaside for education of pupils with

 19  limited English proficiency in proportion to  the  projected  number  of

 20  pupils  with  limited  English  proficiency  who  will  be served in the

 21  current year.

 22    (3) Use of setaside. A school district shall use the  setaside  estab-

 23  lished  pursuant to this paragraph for approved programs for pupils with

 24  limited English proficiency conducted in accordance with the  provisions

 25  of  subdivision two-a of section thirty-two hundred four of this chapter

 26  and the regulations of the commissioner. An approved program  funded  in

 27  whole  or  in part with funds set aside pursuant to this paragraph shall

                                        68                         12022-01-1

  1  not be aidable pursuant to section nineteen hundred fifty of this  chap-

  2  ter.

  3    f.   Higher  learning  standards  setaside.  (1)  Notwithstanding  any

  4  provisions of law to the contrary, for the two thousand  one--two  thou-

  5  sand two school year and thereafter, any school district which meets the

  6  higher  learning standards setaside threshold criteria shall set aside a

  7  portion of the sum of its flex aid payable pursuant to this  subdivision

  8  for  the  purposes  of providing academic intervention services or other

  9  services designed to improve student learning and  performance  pursuant

 10  to a plan approved by the commissioner pursuant to regulations.

 11    (2)  The  higher  learning standards setaside threshold criteria shall

 12  mean (i) more than fifty percent of the students who took the fourth and

 13  eighth grade English language arts assessments and the fourth and eighth

 14  grade mathematics assessments in the base year received  scores  classi-

 15  fied  as  either level one or level two, (ii) ten percent or more of the

 16  students who took the fourth and  eighth  grade  English  language  arts

 17  assessments  and  the fourth and eighth grade mathematics assessments in

 18  the base year received scores classified as level one, and (iii)  twenty

 19  percent  or  more  of  the students who took the fourth and eighth grade

 20  English language arts assessments and the fourth and eighth grade  math-

 21  ematics assessments in the base year received scores classified as level

 22  one.

 23    (3)  The  portion of the flex aid payable pursuant to this subdivision

 24  to be set aside shall equal eight percent where more than twenty percent

 25  of the students who took the fourth and eighth  grade  English  language

 26  arts assessments and the fourth and eighth grade mathematics assessments

 27  in  the  base  year  received  scores  classified as level one in a city

 28  school district in a city having a population of one  million  or  more,

                                        69                         12022-01-1

  1  four  percent  where twenty percent or more of the students who took the

  2  fourth and eighth grade English language arts assessments and the fourth

  3  and eighth grade mathematics  assessments  in  the  base  year  received

  4  scores  classified  as level one, two and one quarter percent where more

  5  than fifteen percent of the students who  took  the  fourth  and  eighth

  6  grade  English language arts assessments and the fourth and eighth grade

  7  mathematics assessments in the base year received scores  classified  as

  8  level one, one and three quarters percent where more than ten percent of

  9  the  students who took the fourth and eighth grade English language arts

 10  assessments and the fourth and eighth grade mathematics  assessments  in

 11  the base year received scores classified as level one.

 12    g. Minor maintenance setaside. Notwithstanding any other provisions of

 13  law  to  the contrary, for the two thousand one--two thousand two school

 14  year and thereafter, a city school district of a  city  having  a  popu-

 15  lation  of one million or more shall set aside a portion of its flex aid

 16  payable pursuant to this subdivision for the purpose of  supporting  its

 17  extraordinary  school  capital  needs  program to repair public instruc-

 18  tional school facilities based  on  priorities  set  by  each  community

 19  school  district  superintendent  and,  in  the case of high schools and

 20  special  education  buildings,  the  chancellor  of  such  city   school

 21  district.

 22    (1)  The  portion of the flex aid payable pursuant to this subdivision

 23  to be set aside shall  equal  the  sum  of  thirty-three  million  three

 24  hundred thirty thousand dollars.

 25    (2)  The amount set aside pursuant to this paragraph shall be used for

 26  allowable expenses, as defined in subparagraph two  of  paragraph  a  of

 27  subdivision  six-d  of  this  section,  for minor maintenance and repair

 28  projects selected as priorities pursuant to subparagraph  four  of  such

                                        70                         12022-01-1

  1  paragraph and in accordance with a report to be submitted to the commis-

  2  sioner  by the chancellor of such city school district outlining how the

  3  funds set aside will be spent that complies  with  the  requirements  of

  4  subparagraph  three of paragraph a of such subdivision six-d. The amount

  5  set aside shall be allocated  by  the  chancellor  of  the  city  school

  6  district  to  each  community  school district, high school district and

  7  group of special education buildings pursuant to  subparagraph  five  of

  8  paragraph a of such subdivision six-d.

  9    § 25. Paragraph a of subdivision 12-a of section 3602 of the education

 10  law,  as  amended  by  section 12 of part A of chapter 60 of the laws of

 11  2000, is amended to read as follows:

 12    a. School districts may make available full day kindergarten  programs

 13  for  all  children  wishing to attend such programs. For school year two

 14  thousand--two thousand one, school districts may make available full day

 15  kindergarten programs for  children  wishing  to  attend  such  programs

 16  pursuant  to  regulations  of  the  commissioner. For aid payable in the

 17  nineteen hundred ninety-eight--ninety-nine school year  and  thereafter,

 18  school  districts  which  provided any half-day kindergarten programs or

 19  school districts which had no  kindergarten  programs  in  the  nineteen

 20  hundred  ninety-six--ninety-seven school year and in the base year shall

 21  be eligible for  aid  equal  to  the  product  of:  (i)  the  district's

 22   selected  operating  aid per pupil multiplied by  growth aid factor per

 23  pupil as defined in paragraph b of subdivision thirteen of this  section

 24  (ii)  the  positive  difference resulting when the full day kindergarten

 25  enrollment of children attending programs in the district  in  the  base

 26  year  is  subtracted  from  such enrollment in the current year. For the

 27  purposes of this subdivision,  selected operating aid  per  pupil  shall

 28  mean  the  greater  of the per pupil amount calculated pursuant to para-

                                        71                         12022-01-1

  1  graph b or c of subdivision twelve of this section, before such  amounts

  2  are  multiplied by the district's total aidable pupil units and  enroll-

  3  ment shall be determined in accordance with the reporting of  such  data

  4  pursuant to paragraph n of subdivision one of this section.

  5    §  26. Subdivision 13 of section 3602 of the education law, as amended

  6  by chapter 474 of the laws of 1996, is amended to read as follows:

  7    13. Growth aid.  a. For aid payable in the  nineteen  hundred  ninety-

  8  five--ninety-six  and  ninety-six--ninety-seven  school  years:  (1) The

  9  growth index of a school district to be used in determining  its  appor-

 10  tionment  for growth aid shall be computed by dividing the average daily

 11  attendance of the district as computed in this  section,  excluding  the

 12  attendance  of  pupils  with disabilities attending a state school under

 13  the provisions of paragraph d of subdivision two of  section  forty-four

 14  hundred  one  of this chapter, for the first half of the current year by

 15  such attendance for the first half of the base year and  expressing  the

 16  result  as  a percentage, carried to one decimal place without rounding;

 17  provided that if the commissioner determines that any  of  the  days  of

 18  session  in  the  first half of either the current year or the base year

 19  does not reasonably reflect the average daily attendance of the district

 20  because of energy shortages, epidemics, teacher strikes  or  other  such

 21  emergencies  an  equal  number  of  succeeding  days  of  session not so

 22  affected by such occurrences shall be used in computing  the  district's

 23  growth index in each such year.

 24    (2)  (i)  For aid payable in the nineteen hundred ninety-five--ninety-

 25  six school year, any district having a growth index in excess of one and

 26  four thousandths shall be paid an additional amount in the current  year

 27  determined  by  multiplying  the  lesser  of any estimate of such excess

 28  reported to the commissioner as of November  fifteenth  of  the  current

                                        72                         12022-01-1

  1  year  or  the  actual  excess  as  verified by the commissioner based on

  2  reports of attendance for the first semester  of  the  current  year  as

  3  submitted  to  the  commissioner on or before March first of the current

  4  year, by the amount of the apportionment selected pursuant to clause (i)

  5  of  paragraph  a  of subdivision twelve of this section. Notwithstanding

  6  section thirty-six hundred  nine-a  of  this  chapter,  such  additional

  7  amount  shall  be  paid in June of the current school year provided that

  8  required reports have been submitted in a  manner  satisfactory  to  the

  9  commissioner.  For aid payable in the nineteen hundred ninety-six--nine-

 10  ty-seven school year and thereafter, any district having a growth  index

 11  in excess of one and four thousandths shall be paid an additional amount

 12  in the current year determined by multiplying the actual excess as veri-

 13  fied  by  the  commissioner based on reports of attendance for the first

 14  semester of the current year as submitted  to  the  commissioner  on  or

 15  before  March first of the current year, by the amount of the apportion-

 16  ment selected pursuant to clause  (i)  of  paragraph  a  of  subdivision

 17  twelve  of  this  section.  Notwithstanding  section  thirty-six hundred

 18  nine-a of this article, such additional amount shall be paid in June  of

 19  the current school year provided that required reports have been submit-

 20  ted  in  a  manner  satisfactory to the commissioner. Claims filed after

 21  March first of the current year shall be payable  September  first  next

 22  following the close of the current year.

 23    (ii) Any district receiving an apportionment pursuant to clause (i) of

 24  this  subparagraph  for  the  nineteen  hundred  ninety-five--ninety-six

 25  school year shall be paid an additional amount determined by multiplying

 26  the positive difference, if any, resulting when the estimated excess  is

 27  subtracted  from  the  actual excess, both as used in clause (i) of this

 28  subparagraph, by the amount of the apportionment  selected  pursuant  to

                                        73                         12022-01-1

  1  clause  (i)  of  paragraph  a  of  subdivision  twelve  of this section.

  2  Notwithstanding section thirty-six hundred nine-a of this chapter,  such

  3  additional  amount  shall  be paid on or after September first, nineteen

  4  hundred ninety-six.

  5    (3)  For  aid  payable in the nineteen hundred ninety-five--ninety-six

  6  school year, in addition to the aid payable pursuant to subparagraph two

  7  of this paragraph in the current year, any school district receiving aid

  8  payable pursuant to such subparagraph two in  the  base  year  shall  be

  9  eligible  to  receive  an  amount  pursuant  to this subparagraph in the

 10  current year equal to such base year amount,  and  any  school  district

 11  receiving such aid in the base year in accordance with subdivision three

 12  of  section  five hundred thirty-eight of chapter one hundred seventy of

 13  the laws of nineteen hundred ninety-four shall be eligible to receive an

 14  amount pursuant to this subparagraph in the current year  equal  to  the

 15  amount it would have received in the base year pursuant to such subpara-

 16  graph two had it not been for such subdivision three.

 17    b.  For aid payable in the nineteen hundred ninety-seven--ninety-eight

 18  school year and thereafter: (1) The growth index of a school district to

 19  be  used  in  determining  its  apportionment  for  growth  aid shall be

 20  computed by dividing the public school enrollment of  the  district  for

 21  the  current school year as computed in this section, by such enrollment

 22  for the base year and expressing the result as a percentage, carried  to

 23  one decimal place without rounding.

 24    (2) Any district having a growth index in excess of one and four thou-

 25  sandths  shall  be  paid an additional amount in the current year deter-

 26  mined by multiplying the actual excess as verified by  the  commissioner

 27  based  on reports of enrollment for the current year as submitted to the

 28  commissioner, by the  amount of the apportionment selected  pursuant  to

                                        74                         12022-01-1

  1  clause  (i) of paragraph a of subdivision twelve of this section  growth

  2  aid factor.  Notwithstanding section thirty-six hundred nine-a  of  this

  3  chapter,  such  additional  amount  shall be paid in June of the current

  4  school  year  provided  that  required  reports have been submitted in a

  5  manner satisfactory to the commissioner.

  6    b. The "growth aid factor" shall equal  the  greater  of  the  amounts

  7  computed pursuant to subparagraphs (i) and (ii) of this paragraph.

  8    (i) Formula operating aid. The formula operating aid shall be computed

  9  by  multiplying  the  formula operating aid ceiling by the operating aid

 10  ratio with the product multiplied by the district's total aidable  pupil

 11  units.

 12    (ii)  Alternate  operating  aid.  The alternate operating aid shall be

 13  equal to the product of four hundred dollars and  the  district's  total

 14  aidable pupil units.

 15    (iii)  Formula  operating  aid ceiling. For the purposes of this para-

 16  graph, the formula operating aid ceiling shall  be  thirty-nine  hundred

 17  dollars  plus  an amount equal to the product of (i) the lesser of eight

 18  thousand dollars or the expense per pupil as defined in subdivision  one

 19  of  this  section minus thirty-nine hundred dollars and (ii) the greater

 20  of the quotient, computed to four decimals without  rounding,  of  seven

 21  and  one-half  percent  divided by the combined wealth ratio, for school

 22  districts  operating  grades  kindergarten  through  twelve,   including

 23  central  high  school  districts  and  their component elementary school

 24  districts, or seven and one-half percent.

 25    § 27. Subparagraph 1 of paragraph c of subdivision 14  of section 3602

 26  of the education law, as amended by section 42 of part C of  chapter  58

 27  of  the  laws of 1998, clause (v) as separately amended by section 113-b

 28  of part C of chapter 58 of the laws of 1998 and clause (vi)  as  amended

                                        75                         12022-01-1

  1  by section 13 of part A of chapter 60 of the laws of 2000, is amended to

  2  read as follows:

  3    (1)  Notwithstanding  the  provisions of this section, whenever two or

  4  more school districts  are  scheduled  for  reorganization  pursuant  to

  5  section  three  hundred fourteen of this chapter and whenever after July

  6  first, nineteen hundred sixty-five all such school districts  so  sched-

  7  uled do reorganize, and, prior to January fifteenth, two thousand one,

  8    (i) whenever such proposed reorganization includes at least two school

  9  districts, each of which maintains its own high school, or

 10    (ii)  where  such  proposed  reorganization  includes  only one school

 11  district maintaining its own high school, whenever  in  such  case  such

 12  proposed reorganization, in addition to such school district maintaining

 13  its own high school, includes at least nine other school districts, or

 14    (iii)  whenever  such  proposed  reorganization  includes at least two

 15  central school districts, or

 16    (iv) where such proposed reorganization includes at least  one  school

 17  district  maintaining  its  own  high  school  and, in addition thereto,

 18  includes at least one school district employing eight or more  teachers,

 19  or

 20    (v)   where  such  proposed  reorganization  includes  a  city  school

 21  district, and in addition thereto, includes at least seven other  school

 22  districts, or

 23    (vi)  where  such proposed reorganization includes at least two school

 24  districts employing eight or more teachers forming a central high school

 25  district pursuant to section nineteen hundred thirteen of this  chapter,

 26  beginning  with  July  first,  nineteen  hundred sixty-five or the first

 27  school year of operation as a reorganized district after such date,  or,

 28  on or after January fifteenth, two thousand one, whenever pupil perform-

                                        76                         12022-01-1

  1  ance and success in achieving high learning standards have been impaired

  2  by  organizational  factors  including the inefficient size and/or other

  3  addressable factors causing the uneconomical provision  of  such  educa-

  4  tional services or facilities and may be remedied by such proposed reor-

  5  ganization,  such  reorganized  school  district shall be entitled to an

  6  additional apportionment of twenty-five per centum of its  apportionment

  7  as  provided in subdivision six of this section whenever such apportion-

  8  ment is computed on the basis of its approved base year expenditures for

  9  capital outlay from its general capital  or  reserve  fund  and  current

 10  years  approved  expenditures  for  debt  services  for  school building

 11  purposes, the general contracts for which shall have been awarded on  or

 12  after   the  date  this  act  takes effect  July first, nineteen hundred

 13  sixty-five and prior to  July first   January  fifteenth,  two  thousand

 14   two  one or within ten years from the effective date of reorganization,

 15  whichever  is  later as provided in subdivision six of this section, and

 16  which said sum shall be payable for and during the terms of any  indebt-

 17  edness or assumed indebtedness created for the purpose of financing such

 18  construction  or  other facility as aforesaid, provided however, that in

 19  no event may the total apportionment  under  this  paragraph  and  under

 20  subdivision  six  of this section for any project exceed ninety-five per

 21  cent of the sum of the  base  year  approved  expenditures  for  capital

 22  outlay  for school building purposes from the general fund, capital fund

 23  or from a reserve fund, and current year approved expenditures for  debt

 24  service for such purposes for such project.

 25    §  28.  Paragraph d of subdivision 14 of section 3602 of the education

 26  law, as amended by section 113-c of part C of chapter 58 of the laws  of

 27  1998, is amended to read as follows:

                                        77                         12022-01-1

  1    d.  Incentive operating aid for reorganized districts. Notwithstanding

  2  the provisions of paragraphs a through c of this  subdivision,  whenever

  3  two  or  more school districts are scheduled for reorganization pursuant

  4  to section three hundred fourteen of this chapter,  and  whenever  after

  5  July  first,  nineteen  hundred sixty-five, all such school districts so

  6  scheduled do reorganize  in  accordance  with  the  provisions  of  such

  7  section  three  hundred  fourteen  as  amended  by chapter seven hundred

  8  forty-five of the laws of nineteen hundred  sixty-five,  and,  prior  to

  9  January fifteenth, two thousand one, (1) whenever such proposed reorgan-

 10  ization  includes at least two school districts, each of which maintains

 11  its own high school, or (2) where such proposed reorganization  includes

 12  only  one  school  district maintaining its own high school, whenever in

 13  such case such proposed  reorganization,  in  addition  to  such  school

 14  district  maintaining  its own high school, includes at least nine other

 15  school districts, or (3) whenever such proposed reorganization  includes

 16  at  least two central school districts, or (4) where such proposed reor-

 17  ganization includes at least one school  district  maintaining  its  own

 18  high  school  and,  in  addition  thereto,  includes at least one school

 19  district employing eight or more teachers, or (5)  where  such  proposed

 20  reorganization includes a city school district, and in addition thereto,

 21  includes  at least seven other school districts, or (6) where such reor-

 22  ganization includes at least two school  districts  employing  eight  or

 23  more teachers forming a central high school district pursuant to section

 24  nineteen  hundred  thirteen  of  this  chapter,  or, on or after January

 25  fifteenth, two thousand one, whenever pupil performance and  success  in

 26  achieving  high  learning standards have been impaired by organizational

 27  factors including the inefficient size and/or other addressable  factors

 28  causing  the  uneconomical  provision  of  such  educational services or

                                        78                         12022-01-1

  1  facilities of such proposed reorganization,  such  reorganized  district

  2  shall be entitled to  an apportionment equal to an additional percent of

  3  the apportionment computed in accordance with the provisions of subpara-

  4  graph (i) of paragraph a of subdivision twelve  the growth aid factor as

  5  defined  in  paragraph b of subdivision thirteen of this section; but in

  6  no case shall the sum of such apportionment under  this  paragraph  plus

  7  the   apportionment under subparagraph (i) of paragraph a of subdivision

  8  twelve of this section  growth aid factor be more than a total of  nine-

  9  ty-five per centum of the year prior to the base year approved operating

 10  expense; for a period of five years beginning with the first school year

 11  of  operation as a reorganized district such additional percent shall be

 12  ten percent; and thereafter such additional ten percent apportionment to

 13  such district shall be reduced by one percentage point each year, begin-

 14  ning with the sixth school year of operation as a reorganized  district,

 15  and continuing until such additional ten percent apportionment is elimi-

 16  nated;  provided, however, that the total apportionment to such reorgan-

 17  ized district, beginning with the first school year of  operation  as  a

 18  reorganized  district, and thereafter, shall be not less than the sum of

 19  all apportionments which each component school district was entitled  to

 20  receive and did receive during the last school year preceding such first

 21  year of operation. In the event a school district is eligible for incen-

 22  tive operating aid and again reorganizes pursuant to a new plan or reor-

 23  ganization  established by the commissioner, and where such new reorgan-

 24  ization is again eligible for incentive operating aid, the newly created

 25  school district shall be entitled to  receive  incentive  operating  aid

 26  pursuant  to  the  provisions  of  this  paragraph,  based on all school

 27  districts included in any such reorganization, provided,  however,  that

                                        79                         12022-01-1

  1  incentive operating aid payments due because of any such former reorgan-

  2  ization shall cease.

  3    §  29.  Subdivision 14 of section 3602 of the education law is amended

  4  by adding two new paragraphs k and l to read as follows:

  5    k. (1) For school districts  which  reorganize  on  or  after  January

  6  fifteenth,  two  thousand  one,  the  percent  increase in apportionment

  7  pursuant to paragraph c of this subdivision shall  be  fifteen  provided

  8  that such school districts meet all other requirements of the provisions

  9  of  such  paragraph c as the case may be. All other requirements of such

 10  paragraph c shall apply.  School districts which receive  an  apportion-

 11  ment  under  this  paragraph  shall not be eligible for an apportionment

 12  under paragraph c, d, e or f and paragraph j as applicable to  paragraph

 13  c  of  this  subdivision  and  provided further that central high school

 14  districts  qualifying  for  incentive  building  aid   for   reorganized

 15  districts pursuant to paragraph b of this subdivision shall only receive

 16  such  incentive  building  aid  for  approved  expenses  related  to the

 17  construction of secondary school facilities of the newly formed  central

 18  high school district during the first four years following the effective

 19  date  of such reorganization unless the central high school district and

 20  any school districts which are included within such central high  school

 21  district  reorganize pursuant to this chapter as a single central school

 22  district within four years of the creation of the  central  high  school

 23  district.

 24    (2)  Any  central high school district created on or after July first,

 25  nineteen hundred ninety-eight, that does not reorganize with all  school

 26  districts  included within such central high school district pursuant to

 27  this chapter as a single central school district within  four  years  of

 28  such  creation  shall  have  its apportionments payable pursuant to this

                                        80                         12022-01-1

  1  section reduced by one-sixth of the amount of such apportionments previ-

  2  ously paid pursuant to this paragraph during each of the six years imme-

  3  diately following the end of the fourth year following such creation.

  4    1.  Notwithstanding  any  other  provision  of  this  subdivision,  no

  5  district shall be eligible for an apportionment  of  incentive  building

  6  aid  for  reorganized districts pursuant to paragraph c, e, f, j or k of

  7  this subdivision for any school building project approved by the  voters

  8  of  the  school district on or after January fifteenth, two thousand one

  9  or more than five years after the effective date of such reorganization,

 10  whichever is later.

 11    § 30. Paragraph a of subdivision 15 of section 3602 of  the  education

 12  law,  as  added by chapter 57 of the laws of 1993, is amended to read as

 13  follows:

 14    a. For aid payable in the two thousand--two thousand one  school  year

 15  and  thereafter, for the purposes of  paragraphs  paragraph b  and c  of

 16  subdivision  twelve  thirteen of this section, the city school  district

 17  of  the city of New York may use either the total aidable pupil units or

 18  the total wealth pupil units of such city school  district  computed  in

 19  accordance  with  the  provisions of this section or as though each such

 20  borough were a separate  city  school  district.  All  pupils  attending

 21  schools in a borough shall be deemed to reside in such borough.

 22    §  31.  Paragraph d of subdivision 15 of section 3602 of the education

 23  law, as amended by section 14 of part A of chapter 60  of  the  laws  of

 24  2000, is amended to read as follows:

 25    d.    Notwithstanding any inconsistent provisions of this article,  if

 26  such city school district elected to receive operating  aid  payable  in

 27  the  nineteen  hundred  ninety-nine--two  thousand school year under the

 28  provisions of this subdivision,   approved  transportation  expense  for

                                        81                         12022-01-1

  1  public service transportation for transportation aid payable in the  two

  2  thousand--two  thousand  one   two thousand one--two thousand two school

  3  year shall not include any expenditures to the New York  City  Metropol-

  4  itan  Transportation Authority for  public service transportation during

  5  the  nineteen hundred ninety-nine--two thousand  two thousand--two thou-

  6  sand one school year nor shall such  expense  be  included  in  approved

  7  operating expense.

  8    §  32. Subdivisions 16, 18, 22, 23, 26-a, 32 and 38 of section 3602 of

  9  the education law are REPEALED.

 10    § 33. Paragraphs 5, 6, 7, and 8 of subdivision 19 of section 3602  and

 11  subdivision 3 of section 4405 of the education law are REPEALED.

 12    §  34.  Subparagraph  1  of paragraph d of subdivision 31-a of section

 13  3602 of the education law, as amended by chapter  474  of  the  laws  of

 14  1996, is amended to read as follows:

 15    (1)  Except  as  provided herein, in addition to any other moneys made

 16  available under  the  provisions  of  this  chapter,  each  city  school

 17  district  shall  be  apportioned  an  amount equal to the greater of the

 18  small cities aid base or the amount calculated pursuant to  paragraph  c

 19  of  this  subdivision  but, in either case, not greater than the maximum

 20  small city transition aid computed  pursuant  to  paragraph  b  of  this

 21  subdivision and, for the two thousand one--two thousand two school year,

 22  not  greater than the positive sum of the apportionment received by such

 23  school district in the base year less the product of two  multiplied  by

 24  the  positive difference between such apportionment and the small cities

 25  aid base; provided however, if the amount calculated  pursuant  to  this

 26  paragraph  in  any  year  is less than five thousand dollars, the school

 27  district shall be eligible only for the amount  calculated  under  para-

 28  graph c of this subdivision.

                                        82                         12022-01-1

  1    § 34-a. Subdivision 36 of section 3602 of the education law is amended

  2  by adding a new paragraph f to read as follows:

  3    f.  Notwithstanding  any  inconsistent provisions of this subdivision,

  4  for aid payable in two thousand one--two thousand two, a school district

  5  eligible for an apportionment under this subdivision shall  be  eligible

  6  to receive aid pursuant to this section in an amount equal to the amount

  7  that  the  district  would have received if they operated the program in

  8  the two thousand--two thousand one school year.

  9    § 35. Subparagraph 1 of paragraph  f  of  subdivision  10  of  section

 10  3602-e of the education law, as added by section 37 of part A of chapter

 11  60 of the laws of 2000, is amended to read as follows:

 12    (1)  For  aid  payable for the two thousand -- two thousand one school

 13  year, where the trustees or board of  education  of  a  school  district

 14  eligible  to  receive  funds pursuant to this section does not provide a

 15  universal pre-kindergarten program or does not serve all aidable  pupils

 16  in  the current year, funds may be deposited in the universal prekinder-

 17  garten reserve fund established pursuant to section ninety-seven-vvv  of

 18  the  state  finance  law  for  future use in an amount not to exceed the

 19  product of the aid per prekindergarten pupil for the current school year

 20  and the district's aidable prekindergarten pupils for the current school

 21  year. School districts must submit an application to the commissioner by

 22  September first of the current school year, requesting such funds to  be

 23  deposited  in  the universal prekindergarten reserve fund.   Within five

 24  business days of receipt of an application that conforms to the require-

 25  ments of this section, the commissioner  Within five  business  days  of

 26  the first of September of the current year, the commissioner shall iden-

 27  tify  those  applications  received  that conform to the requirements of

 28  this section and, with the approval of the director of the budget  shall

                                        83                         12022-01-1

  1  authorize  and  direct  the  comptroller to transfer  such  the funds so

  2  requested in such applications from the general fund  to  the  universal

  3  prekindergarten  reserve  fund.  In addition to the information required

  4  pursuant  to  subdivision eight of this section, the district's applica-

  5  tion shall explain the basis for not serving all aidable pupils  in  the

  6  current year.  Upon approval of such application, the set aside require-

  7  ment  contained in paragraph e of subdivision five and the provisions of

  8  subdivision sixteen of this section shall not apply until the first year

  9  of operation of the universal prekindergarten program, at which time the

 10  setaside shall be applied to the total amount of funds  to  be  expended

 11  for  the universal prekindergarten program in the school district budget

 12  for the current year, unless a waiver  is  granted  in  accordance  with

 13  paragraph  e  of  subdivision  five of this section. For purposes of the

 14  advisory board and public hearing requirements of subdivision  three  of

 15  this section, the first school year in which grant funds would be depos-

 16  ited  in  such universal prekindergarten reserve account shall be deemed

 17  to be the school year in which funds will first become available to  the

 18  school district.

 19    §  36.  Paragraph  b of subdivision 5 of section 3604 of the education

 20  law, as amended by section 59 of part A of chapter 436 of  the  laws  of

 21  1997, is amended to read as follows:

 22    b.  Claims resulting from court orders or judgments. Any payment which

 23  would be due as the result of a court order or  judgment  shall  not  be

 24  barred,  provided that, commencing January first, nineteen hundred nine-

 25  ty-six, such court order or judgment and any other data  required  shall

 26  be filed with the comptroller within one year from the date of the court

 27  order  or  judgment, and provided further that, for any such court order

 28  or judgment that is filed with the comptroller on or before the  thirti-

                                        84                         12022-01-1

  1  eth of June, two thousand the commissioner shall certify no payment to a

  2  school district for a specific school year that is based on a claim that

  3  results  from  a  court order or judgement so filed with the comptroller

  4  unless the total value of such claim, as determined by the commissioner,

  5  is greater than one percent of the school district's total revenues from

  6  state sources as previously recorded in the general fund and reported to

  7  the  comptroller  in  the annual financial report of the school district

  8  for such school year, and provided further  that,  for  any  such  court

  9  order or judgment that is filed with the comptroller after the thirtieth

 10  of  June,  two  thousand, the commissioner shall certify no payment to a

 11  school district resulting  from  court  ordered  changes  in  assessment

 12  unless  the  actual  valuation  equivalent  of the changes in assessment

 13  represents a reduction of at least five percent in the actual  valuation

 14  of  the  assessment roll to be adjusted.  For the purposes of this para-

 15  graph: (i) actual valuation of an assessment roll shall mean  the  valu-

 16  ation,  as  determined by the comptroller, of taxable real property in a

 17  school district obtained by taking the  assessed  valuation  of  taxable

 18  real  property  within  such  district as it appears upon the assessment

 19  roll of the town, city, village or county  in  which  such  property  is

 20  located  and dividing it by the state equalization rate as determined by

 21  the state board of real property services for such assessment roll,  and

 22  (ii)  the actual valuation equivalent of the changes in assessment shall

 23  mean the positive difference of the actual valuation of such  assessment

 24  roll  as  established by the comptroller prior to receipt and processing

 25  of the court order or judgement  minus  the  actual  valuation  of  such

 26  assessment  roll  as  established  by  the comptroller after receipt and

 27  processing of such court order or judgement.

                                        85                         12022-01-1

  1    § 37. Subdivision 7 of section 3604 of the education law,  as  amended

  2  by chapter 170 of the laws of 1994, is amended to read as follows:

  3    7.  No district shall be entitled to any portion of such school moneys

  4  on such apportionment unless the report of  the  trustees  or  board  of

  5  education  for  the  preceding  school  year  shall show that the public

  6  schools were actually in session in the district and taught by a  quali-

  7  fied  teacher or by successive qualified teachers or by qualified teach-

  8  ers for not less than one hundred eighty days. The moneys payable  to  a

  9  school  district  pursuant  to section thirty-six hundred nine-a of this

 10  chapter in the current year shall be reduced by one  one-hundred  eight-

 11  ieth  of  the district's  operating  flex aid for each day less than one

 12  hundred eighty days that the schools of the district  were  actually  in

 13  session,  except  that the commissioner may disregard such reduction, up

 14  to five days, in the apportionment of public money, if he finds that the

 15  schools of the district were not in session for one hundred eighty  days

 16  because  of  extraordinarily  adverse  weather conditions, impairment of

 17  heating facilities, insufficiency of water  supply,  shortage  of  fuel,

 18  lack  of electricity, natural gas leakage, unacceptable levels of chemi-

 19  cal substances, or the destruction of a school building either in  whole

 20  or  in  part, and if, further, the commissioner finds that such district

 21  cannot make up such days of  instruction  by  using  for  the  secondary

 22  grades all scheduled vacation days which occur prior to the first sched-

 23  uled  regents examination day in June, and for the elementary grades all

 24  scheduled vacation days which occur prior to the last scheduled  regents

 25  examination  day  in June. For the purposes of this subdivision, "sched-

 26  uled vacation days" shall mean days on which the schools of the district

 27  are not in session and for which no prohibition  exists  in  subdivision

 28  eight  of this section for them to be in session.  The district's  oper-

                                        86                         12022-01-1

  1  ating  flex aid shall equal the  greater of the amounts  amount computed

  2  pursuant to  paragraphs b and c of  subdivision twelve of section  thir-

  3  ty-six hundred two of this chapter  or, if applicable, pursuant to para-

  4  graph b of subdivision fifteen of such section .

  5    §  38.  Subdivision 8 of section 3604 of the education law, as amended

  6  by chapter 181 of the laws of 2000, is amended to read as follows:

  7    8. No school shall be in session on a Saturday  or  a  legal  holiday,

  8  except  general election day, Washington's birthday and Lincoln's birth-

  9  day, and except that driver education classes  may  be  conducted  on  a

 10  Saturday.  A  deficiency not exceeding three days during any school year

 11  caused by teachers' attendance upon conferences held by  superintendents

 12  of  schools of city school districts or other school districts employing

 13  superintendents  of  schools  shall  be  excused  by  the  commissioner,

 14  provided  however,  notwithstanding  any  other  provision  of law, that

 15  during the nineteen hundred ninety-two--ninety-three  through  the   two

 16  thousand--two  thousand  one   two thousand one--two thousand two school

 17  years, the commissioner shall excuse a  deficiency  not  exceeding  four

 18  days during such school year caused by teachers' attendance upon confer-

 19  ences  held  by  such  superintendents,  provided that at least two such

 20  conference days during such school year  shall  be  dedicated  to  staff

 21  attendance  upon  conferences  providing  staff  development relating to

 22  implementation of the new high learning standards  and  assessments,  as

 23  adopted by the board of regents.  Notwithstanding any other provision of

 24  law,  rule  or regulation to the contrary, school districts may elect to

 25  use one or more of such allowable conference days in units of  not  less

 26  than  one  hour each to provide staff development activities relating to

 27  implementation of the new high learning  standards  and  assessments.  A

 28  district  making such election may provide such staff development during

                                        87                         12022-01-1

  1  the regularly scheduled daily session and apply such units to satisfy  a

  2  deficiency  in  the  length of one or more daily sessions of instruction

  3  for pupils as specified in regulations of the commissioner. The  commis-

  4  sioner shall assure that such conference days include appropriate school

  5  violence  prevention  and intervention training, and may require that up

  6  to one such conference day be dedicated for such purpose.

  7    § 39. The opening paragraph of section 3609-a of the education law, as

  8  amended by section 41 of part A of chapter 60 of the laws  of  2000,  is

  9  amended to read as follows:

 10    For  aid  payable  in  the  nineteen  hundred ninety-six--ninety-seven

 11  school year and thereafter, "moneys apportioned" shall mean  the  lesser

 12  of (i) the sum of one hundred percent of the respective amount set forth

 13  for  each  school  district  as  payable pursuant to this section in the

 14  school aid computer listing for the current year produced by the commis-

 15  sioner in support of the budget which includes the appropriation for the

 16  general support for public schools for the prescribed payments and indi-

 17  vidualized payments due prior to April first for the current year   plus

 18  any increase in the amount of the apportionment of aid for instructional

 19  computer  technology  expenses  above  such  amount as set forth in such

 20  school aid computer listing as payable pursuant to this section  and  as

 21  computed  pursuant  to  subdivision  twenty-six-a  of section thirty-six

 22  hundred two of this article , plus for aids payable  in  the  two  thou-

 23  sand--two  thousand  one  school year, any increase in the amount of the

 24  apportionment of aid for approved debt service  for  bonds  and  capital

 25  notes  issued  before  July  first,  two  thousand  for  school building

 26  purposes pursuant to paragraph b of subdivision six of  section  thirty-

 27  six  hundred  two of this article above such amount as set forth in such

 28  school aid computer listing and which increase was duly reported to  the

                                        88                         12022-01-1

  1  commissioner  on  or before November fifteenth, nineteen hundred ninety-

  2  nine, plus for aids payable in the two thousand--two thousand one school

  3  year, any apportionments payable pursuant to subdivisions six and  four-

  4  teen,  if  applicable, of section thirty-six hundred two of this article

  5  for debt service on bond anticipation notes aidable  in  June,  and  new

  6  bonds  and  capital notes aidable in June, plus, for aids payable in the

  7  two thousand one--two thousand two school year, any apportionments paya-

  8  ble pursuant to subdivisions six and fourteen, if applicable, of section

  9  thirty-six hundred two of this article for debt service on  bond  antic-

 10  ipation  notes  aidable in July following the current year and new bonds

 11  and capital notes aidable in July following the current  year  and  plus

 12  the miscellaneous general aid apportionments which shall include: appor-

 13  tionments payable during the current school year pursuant to paragraph g

 14  of  subdivision  two,  subdivision  five  and  subdivision thirty-six of

 15  section thirty-six hundred two of this article minus any  reductions  to

 16  current  year  aids  pursuant to subdivision seven of section thirty-six

 17  hundred four of this article or any deduction from apportionment payable

 18  pursuant to this chapter for  collection  of  a  school  district  basic

 19  contribution  as  defined  in  subdivision  eight  of section forty-four

 20  hundred one of this chapter, or (ii) the apportionment calculated by the

 21  commissioner based on data on file at the time the payment is  processed

 22  provided however, that for the purposes of any payments made pursuant to

 23  this  section  prior  to  the  first business day of June of the current

 24  year, moneys apportioned shall not include any aids payable pursuant  to

 25  subdivisions  six  and  fourteen,  if  applicable, of section thirty-six

 26  hundred two of this article as current year aid for debt service on bond

 27  anticipation notes and/or bonds first issued in the current year or  any

 28  aids  payable as growth aid for the current year pursuant to subdivision

                                        89                         12022-01-1

  1  thirteen of section thirty-six hundred two of this article or  any  aids

  2  payable  for  full-day  kindergarten  for  the  current year pursuant to

  3  subdivision twelve-a of section thirty-six hundred two of this  article.

  4  The definitions of "base year" and "current year" as set forth in subdi-

  5  vision one of section thirty-six hundred two of this article shall apply

  6  to  this  section. For aid payable in the two thousand--two thousand one

  7  school year, reference to such "school  aid  computer  listing  for  the

  8  current year" shall mean the printouts entitled  "SA0001"  "BT0321".

  9    §  40.  Section 3609-a of the education law, as amended by chapter 474

 10  of the laws of 1996, the opening paragraph as amended by  section  thir-

 11  ty-nine  of  this  act,  clause  (v) of subparagraph 3 of paragraph b of

 12  subdivision 1 as amended by section 42, clause (vi) of subparagraph 3 of

 13  paragraph b of subdivision 1 as added and clause (vii) of subparagraph 3

 14  of paragraph b of subdivision 1 as renumbered by section 43 of part A of

 15  chapter 60 of the laws of 2000, is amended to read as follows:

 16    § 3609-a. Moneys apportioned, when and  how  payable  commencing  July

 17  first,  nineteen  hundred  ninety-six.   For aid payable in the nineteen

 18  hundred ninety-six--ninety-seven school  year  and  thereafter,  "moneys

 19  apportioned" shall mean the lesser of (i) the sum of one hundred percent

 20  of  the  respective amount set forth for each school district as payable

 21  pursuant to this section in the school  aid  computer  listing  for  the

 22  current year produced by the commissioner in support of the budget which

 23  includes  the  appropriation  for the general support for public schools

 24  for the prescribed payments and individualized  payments  due  prior  to

 25  April first for the current year, plus for aids payable in the two thou-

 26  sand--two  thousand  one  school year, any increase in the amount of the

 27  apportionment of aid for approved debt service  for  bonds  and  capital

 28  notes  issued  before  July  first,  two  thousand  for  school building

                                        90                         12022-01-1

  1  purposes pursuant to paragraph b of subdivision six of  section  thirty-

  2  six  hundred  two of this article above such amount as set forth in such

  3  school aid computer listing and which increase was duly reported to  the

  4  commissioner  on  or before November fifteenth, nineteen hundred ninety-

  5  nine, plus for aids payable in the two thousand--two thousand one school

  6  year, any apportionments payable pursuant to subdivisions six and  four-

  7  teen,  if  applicable, of section thirty-six hundred two of this article

  8  for debt service on bond anticipation notes aidable  in  June,  and  new

  9  bonds  and  capital notes aidable in June, plus, for aids payable in the

 10  two thousand one--two thousand two school year, any apportionments paya-

 11  ble pursuant to subdivisions six and fourteen, if applicable, of section

 12  thirty-six hundred two of this article for debt service on  bond  antic-

 13  ipation  notes  aidable in July following the  current  year of expendi-

 14  ture and new bonds and capital  notes  aidable  in  July  following  the

 15   current   year  of  expenditure, and plus the miscellaneous general aid

 16  apportionments which shall include: apportionments  payable  during  the

 17  current school year pursuant to paragraph g of subdivision two, subdivi-

 18  sion  five,  subdivision six, subdivision thirteen, subdivision fourteen

 19  and subdivision thirty-six of section thirty-six  hundred  two  of  this

 20  article  minus  any reductions to current year aids pursuant to subdivi-

 21  sion seven of section thirty-six hundred four of  this  article  or  any

 22  deduction  from  apportionment  payable  pursuant  to  this  chapter for

 23  collection of a school district basic contribution as defined in  subdi-

 24  vision  eight of section forty-four hundred one of this chapter, or (ii)

 25  the apportionment calculated by the commissioner based on data  on  file

 26  at  the  time  the  payment  is processed provided however, that for the

 27  purposes of any payments made pursuant to  this  section  prior  to  the

 28  first business day of June of the current year, moneys apportioned shall

                                        91                         12022-01-1

  1  not  include  any  aids  payable  for the two thousand--two thousand one

  2  school year pursuant to subdivisions six and fourteen, if applicable, of

  3  section thirty-six hundred two of this article as current year  aid  for

  4  debt service on bond anticipation notes and/or bonds first issued in the

  5  current  year or aid payable pursuant to such subdivisions six and four-

  6  teen for debt service incurred during the two thousand one--two thousand

  7  two school year under an assumed amortization of  the  remaining  unpaid

  8  principal  of  a  bond  anticipation  note for a project approved by the

  9  commissioner prior to the fifteenth of January two thousand one  or  any

 10  aids  payable as growth aid for the current year pursuant to subdivision

 11  thirteen of section thirty-six hundred two of this article or  any  aids

 12  payable  for  full-day  kindergarten  for  the  current year pursuant to

 13  subdivision twelve-a of section thirty-six hundred two of this  article.

 14  The definitions of "base year" and "current year" as set forth in subdi-

 15  vision one of section thirty-six hundred two of this article shall apply

 16  to this section. For aid payable in the  two thousand--two thousand one 

 17  two  thousand  one--two  thousand  two  school  year,  reference to such

 18  "school aid computer listing for the current year" shall mean the print-

 19  outs entitled "BT0321".

 20    1. General support for public schools (GSPS) appropriation.  The  GSPS

 21  appropriation  shall  be  used to support payments made pursuant to this

 22  section, plus apportionments made pursuant to  section   sections  seven

 23  hundred  one,  seven hundred eleven, seven hundred fifty-one, thirty-two

 24  hundred two, thirty-six hundred nine-b, thirty-six hundred nine-c, thir-

 25  ty-six hundred forty-one and forty-four hundred five  of  this  chapter,

 26  any  other applicable allocations made pursuant to this chapter, but not

 27  paid pursuant to the schedule prescribed by  this  section  or  sections

 28  thirty-six  hundred  nine-b,  thirty-six  hundred  nine-c, or thirty-six

                                        92                         12022-01-1

  1  hundred nine-d of this article; plus any unconsolidated  law  provisions

  2  which  apply  to  programs funded from such appropriation; plus any sums

  3  paid out upon audit of the state comptroller  as  final  adjustments  of

  4  apportionments  originally claimed and payable pursuant to this subdivi-

  5  sion in prior school years; plus sums paid out  as  prior  year  adjust-

  6  ments, to the extent an allowance was included in such appropriation for

  7  such  purpose. Any apportionments provided by this chapter shall be paid

  8  in accordance with  this  section  unless  specifically  exempted.    a.

  9  Prescribed  payments.  (1) District payments to the teachers' retirement

 10  system.  Of  the  moneys  apportioned  by  the  commissioner  to  school

 11  districts  for  the  current  year,  after the payment of lottery aid in

 12  accordance with subparagraph two of this paragraph,  an  amount  not  to

 13  exceed  one-third  of the amount owed by such school district to the New

 14  York state teachers' retirement system for salaries  paid  in  the  base

 15  year  or  for other obligations pursuant to section five hundred twenty-

 16  one of this chapter shall be payable to such teachers' retirement system

 17  on behalf of the school district on or before the fifteenth day of  each

 18  of  the  months  of September, October and November, except that special

 19  payments due such teachers' retirement system shall  be  payable  on  or

 20  before  the  fifteenth  day  of October. Any underpayment resulting from

 21  data changes shall be payable from spring payments. Any portion  of  the

 22  payments  due such teachers' retirement system that exceed the remainder

 23  of the moneys to be apportioned to the school  district  shall  be  made

 24  directly by the school district to the system.

 25    (2)  Lottery  apportionment. Of the estimated moneys to be apportioned

 26  by the commissioner to school  districts  for  the  current  year,  that

 27  portion  payable  pursuant  to section ninety-two-c of the state finance

 28  law, exclusive of the minimum lottery grant provided for the purchase of

                                        93                         12022-01-1

  1  textbooks pursuant to subparagraph one of  paragraph  b  of  subdivision

  2  four  of section ninety-two-c of such law, shall be payable on or before

  3  the first day of September.

  4    (3) Lottery textbook apportionment. The minimum lottery grant provided

  5  for  the purchase of textbooks pursuant to subparagraph one of paragraph

  6  b of subdivision four of section ninety-two-c of the state finance  law,

  7  shall be payable on or before the first day of September.

  8    (4)  Fixed  fall  payments.  Of the moneys apportioned remaining to be

  9  paid to school districts for the current year after deductions are  made

 10  for  the  purpose of subparagraph one of this paragraph, districts shall

 11  be eligible to receive payments determined as follows: (i) on or  before

 12  October  fifteenth,  an  estimated  twelve  and one-half percent of such

 13  remaining amount minus the sum of the  amount  amounts paid pursuant  to

 14  subparagraph  two  of  this  paragraph and for the two thousand two--two

 15  thousand three school year and thereafter, any payments made pursuant to

 16  section thirty-six hundred nine-b of this article;  (ii)  on  or  before

 17  November   fifteenth,   an   estimated  eighteen  and  seventy-five  one

 18  hundredths percent of such remaining amount minus the sum of the amounts

 19  paid pursuant to clause (i) of this subparagraph and subparagraph two of

 20  this paragraph and for the two thousand two--two thousand  three  school

 21  year  and  thereafter,  any payments made pursuant to section thirty-six

 22  hundred nine-b  of  this  article;  and  (iii)  on  or  before  December

 23  fifteenth,  an  estimated  twenty-five  percent of such remaining amount

 24  minus the sum of the amounts paid pursuant to clauses (i)  and  (ii)  of

 25  this subparagraph and subparagraph two of this paragraph and for the two

 26  thousand  two--two  thousand  three  school  year  and  thereafter,  any

 27  payments made pursuant to section  thirty-six  hundred  nine-b  of  this

                                        94                         12022-01-1

  1  article.   Such amounts shall be payable only to the extent that reports

  2  due the commissioner have been filed.

  3    (5)  Remaining apportionment. The remaining moneys apportioned for the

  4  current year after deductions are made for the purposes of subparagraphs

  5  one, two and four of this paragraph, shall be payable pursuant to  para-

  6  graph  b  of this subdivision to the extent that reports due the commis-

  7  sioner have been filed.

  8    b. Individualized payments. (1) District expenditure need.  To  deter-

  9  mine  the  payments  a  district shall be eligible to receive under this

 10  paragraph, a district expenditure need shall be computed, based on esti-

 11  mated data on file with the commissioner as  of  December  first,  which

 12  shall  equal  the  general fund expenditures for the base year (i) minus

 13  the sum of base year aids and grants recorded as revenue to such general

 14  fund but not payable pursuant to this section; (ii) minus the district's

 15  base year general fund expenditures to  the  New  York  state  teachers'

 16  retirement  system; (iii) minus that portion of the district's base year

 17  general fund expenditures for debt service eligible for an apportionment

 18  pursuant to subdivision six of section thirty-six hundred  two  of  this

 19  chapter  plus  such  general  fund expenditures for debt service for the

 20  current year; and (iv) minus current year aid pursuant to  subparagraphs

 21  two and four of paragraph a of this subdivision and for the two thousand

 22  two--two  thousand  three  school year and thereafter, any payments made

 23  pursuant to section thirty-six hundred nine-b of this article  prior  to

 24  December first.

 25    (2)  Payment  amounts.  For  remaining aid payments due prior to July,

 26  moneys apportioned shall be determined based on preliminary aid data  on

 27  file with the commissioner on December first, provided that such commis-

 28  sioner  may elect to recompute such amounts for one or more districts to

                                        95                         12022-01-1

  1  avoid any substantial overpayment. (i) January amount. If the aid  paya-

  2  ble  under  this paragraph exceeds fifty percent of the expenditure need

  3  of the district, then such excess amount shall  be  designated  for  the

  4  month of January and for the two thousand two--two thousand three school

  5  year  and thereafter, at the actual time of payment such amount shall be

  6  reduced by any payments made  pursuant  to  section  thirty-six  hundred

  7  nine-b  of  this  article  after  December first of the current year and

  8  prior to the date of actual payment. (ii) February amount. If such  aid,

  9  minus  any  aid  payable  pursuant  to  clause (i) of this subparagraph,

 10  exceeds forty percent of such expenditure need, then such excess  amount

 11  shall  be  designated for the month of February and for the two thousand

 12  two--two thousand three school year and thereafter, at the  actual  time

 13  of payment such amount shall be reduced by any payments made pursuant to

 14  section  thirty-six  hundred nine-b of this article after December first

 15  of the current year and prior to the date  of  actual  payment.    (iii)

 16  March amount. If such aid, minus any aid payable pursuant to clauses (i)

 17  and  (ii)  of this subparagraph, exceeds thirty percent of such expendi-

 18  ture need, then such excess amount shall be designated for the month  of

 19  March  and  for the two thousand two--two thousand three school year and

 20  thereafter, at the actual time of payment such amount shall  be  reduced

 21  by  any  payments  made pursuant to section thirty-six hundred nine-b of

 22  this article after December first of the current year and prior  to  the

 23  date  of  actual payment.  (iv) April amount. If such aid, minus any aid

 24  payable pursuant to clauses (i), (ii) and (iii)  of  this  subparagraph,

 25  exceeds  twenty  percent  of  the expenditure need of the district, then

 26  such excess amount shall be designated for the month of  April  and  for

 27  the  two  thousand  one--two thousand two school year and thereafter, at

 28  the actual time of payment such amount shall be reduced by any  payments

                                        96                         12022-01-1

  1  made pursuant to section thirty-six hundred nine-b of this article after

  2  December  first  of  the  current  year  and prior to the date of actual

  3  payment.  (v) May amount. If such aid, minus any aid payable pursuant to

  4  clauses  (i),  (ii),  (iii)  and  (iv) of this subparagraph, exceeds ten

  5  percent of such expenditure need,  then  such  excess  amount  shall  be

  6  designated  for the month of May and for the two thousand one--two thou-

  7  sand two school year and thereafter, at the actual time of payment  such

  8  amount  shall  be reduced by any payments made pursuant to section thir-

  9  ty-six hundred nine-b of  this  article  after  December  first  of  the

 10  current year and prior to the date of actual payment.  (vi) June amount.

 11  Any  moneys  apportioned  not  designated pursuant to clauses (i), (ii),

 12  (iii), (iv) and (v) of this subparagraph shall  be  designated  for  the

 13  month of June and for the two thousand one--two thousand two school year

 14  and  thereafter,  at  the  actual  time  of payment such amount shall be

 15  reduced by any payments made  pursuant  to  section  thirty-six  hundred

 16  nine-b of this article after December first.

 17    (3) Payments. (i) Winter payments. The amounts designated for January,

 18  February  and  March pursuant to clauses (i), (ii) and (iii) of subpara-

 19  graph two of this paragraph shall be paid on the  first  state  business

 20  day of such months.

 21    (ii)  Sustaining  advance  payments.  In  order to sustain all advance

 22  payments made in previous school years pursuant to subparagraph five  of

 23  this  paragraph  or  the  comparable  provisions  of  section thirty-six

 24  hundred nine of this article, the commissioner shall establish a  sched-

 25  ule  to  distribute  the  sustaining advance payment amount among school

 26  districts. Such sustaining advance  payments  due  to  school  districts

 27  shall  be, first, in the same proportion as such school district's share

 28  bears to the total moneys designated for payment in the month of  April,

                                        97                         12022-01-1

  1  second,  as  a share of the total moneys designated for May and last, if

  2  applicable, as a share of the total moneys designated for  June  to  all

  3  such school districts pursuant to clauses (iv), (v), and (vi) of subpar-

  4  agraph  two  of this paragraph. The sustaining advance payment due shall

  5  be deducted first from a school district's designated amount for  April,

  6  then from a school district's designated amount for May and finally from

  7  any  moneys  due  in June. The commissioner shall transmit a schedule to

  8  the comptroller, the director of the budget and the chairs of the legis-

  9  lative fiscal committees displaying for each  district,  the  sustaining

 10  advance  payment due, the portion of such amount to be withheld pursuant

 11  to subparagraph four of this paragraph and the remainder, if any, to  be

 12  paid to the school district on or before March thirty-first.

 13    (iii)  Determining  final  payment for the state fiscal year. Prior to

 14  transmitting the March  payment  to  the  state  comptroller,  based  on

 15  current year, base year and prior school year state aid payments made or

 16  scheduled  to  be  made  from the general support for public schools and

 17  growth aid appropriations for the state fiscal year ending  March  thir-

 18  ty-first,  the  commissioner  shall  determine  the  extent to which the

 19  amount designated for June pursuant to clause (vi) of  subparagraph  two

 20  of  this  paragraph,  as adjusted in accordance with clause (ii) of this

 21  subparagraph, net of any disallowances, would need to  be  advanced  and

 22  paid  on  or  before March thirty-first in order to use the remainder of

 23  such appropriations, on or before March thirty-first, or to  the  extent

 24  to which the amount designated for March would need to be proportionally

 25  reduced  so  as not to exceed such state fiscal year appropriations. The

 26  commissioner shall report the amount of money required to be advanced or

 27  deferred and the percent it represents of the June or March amounts,  as

 28  the  case  may be, to the director of the budget, the chairperson of the

                                        98                         12022-01-1

  1  senate finance committee and the chairperson of the  assembly  ways  and

  2  means  committee.  To  the  extent  that moneys are advanced or deferred

  3  pursuant to this paragraph, they shall be in the same proportion as each

  4  school district's share bears to the total of such June or March amount.

  5  Upon  approval  of  the  director  of the budget, the commissioner shall

  6  transmit the schedule of any  such  partial  June  prepayments  or  such

  7  reduced  March  payments  to  the  state comptroller. Any portion of the

  8  March payment deferred shall be added to the June payment;  any  portion

  9  of  the  June  payment advanced shall be paid on or before March thirty-

 10  first.

 11    (iv) April and May payments. Any amount designated for  and  remaining

 12  to  be paid in April or May pursuant to clauses (iv) and (v) of subpara-

 13  graph two of this paragraph minus any portion of such  amounts  advanced

 14  pursuant  to clause (ii) of this subparagraph shall be paid on the first

 15  state business day of such months.

 16    (v) June payment. The  moneys  apportioned  to  school  districts  and

 17  designated  for June pursuant to clause (vi) of subparagraph two of this

 18  paragraph shall be paid on the first state business day of  such  month,

 19  to  the extent that moneys are owed to school districts pursuant to this

 20  section for the current year, including claims for current year  aid for

 21  debt service on bond anticipation notes aidable in June and/or new bonds

 22  and capital notes aidable in June pursuant to subdivisions six and four-

 23  teen, if applicable, of section thirty-six hundred two of  this  article

 24  and claims for current year  growth aid pursuant to subdivision thirteen

 25  of section thirty-six hundred two of this article and claims for current

 26  year aid for conversion to full day kindergarten pursuant to subdivision

 27  twelve-a of section thirty-six hundred two of this article, after taking

 28  into  account  any  adjustments made in accordance with clauses (ii) and

                                        99                         12022-01-1

  1  (iii) of this subparagraph, net of any disallowances, provided, however,

  2  that any aid for debt service on bond anticipation notes payable for the

  3  nineteen hundred ninety-six--ninety-seven school year in excess  of  the

  4  appropriation  provided  therefor  shall  be  proportionally deferred to

  5  September nineteen hundred ninety-seven, and provided further, any  such

  6  deferral  shall  be  in the same proportion as a school district's share

  7  bears to the total moneys available respectively for such  building  aid

  8  for the nineteen hundred ninety-six--ninety-seven school year.

  9    (vi)  Deferred July payment of certain claims for debt service on bond

 10  anticipation notes and on bonds or capital notes  first  issued  in  the

 11  current  year. The moneys apportioned to school districts for claims for

 12  current year aid for debt service on bond anticipation notes aidable  in

 13  July  following  the   current  year of expenditure and/or new bonds and

 14  capital notes aidable in July following the  current  year  of  expendi-

 15  ture  pursuant  to  subdivisions  six  and  fourteen,  if applicable, of

 16  section thirty-six hundred two of this article  shall  be  paid  on  the

 17  first  state  business  day  of July immediately following the  current 

 18  school year in which the expenditure was incurred, to  the  extent  that

 19  moneys  are  owed  to  school districts pursuant to this section for the

 20  current year, net of any disallowances.

 21    (vii) Deferred September payments. Any amounts  payable  to  a  school

 22  district  pursuant to this section which exceeded one hundred percent of

 23  the respective amount set forth for such district as payable pursuant to

 24  this section in the school aid computer listing for the  current  school

 25  year  shall  be  designated  for payment for the month of September next

 26  following the close of the current school year. Such payments  shall  be

 27  made on the first state business day of the month of September, based on

 28  data  on  file  as of August first, and shall include any deferrals made

                                        100                        12022-01-1

  1  pursuant to clause (v) of this subparagraph and  for  the  two  thousand

  2  two--two  thousand three school year and thereafter, shall be reduced by

  3  any payments made pursuant to section thirty-six hundred nine-b of  this

  4  article after December first.

  5    (4)  State  share of medicaid reimbursements. For the purposes of this

  6  subparagraph, for payments made in the nineteen hundred ninety-five--ni-

  7  nety-six school year, there shall be two reporting  periods:  the  first

  8  reporting  period  shall run from February first, nineteen hundred nine-

  9  ty-five through January thirty-first, nineteen hundred  ninety-six,  and

 10  the  second  reporting  period  shall  run from February first, nineteen

 11  hundred ninety-six through April thirtieth, nineteen hundred ninety-six;

 12  thereafter, the first reporting period shall run from May first  of  the

 13  base  year  through  January  thirty-first  of the current year, and the

 14  second reporting period shall run from February  first  of  the  current

 15  year  through  April  thirtieth of the current year. Notwithstanding any

 16  inconsistent provisions of law to the contrary, the  sustaining  advance

 17  payment  due any school district pursuant to clause (ii) of subparagraph

 18  three of this paragraph in March shall be reduced by  fifty  percent  of

 19  any  federal participation during the first reporting period pursuant to

 20  title XIX of the social security  act,  in  special  education  programs

 21  provided  pursuant  to  article  eighty-nine  of  this chapter; the June

 22  payment due any school district pursuant to clause (v)  of  subparagraph

 23  three of this paragraph shall be reduced by fifty percent of any federal

 24  participation  during  the  second  reporting period. Not later than ten

 25  days after the end of a reporting period,  the  commissioner  of  social

 26  services,  as the authorized fiscal agent of the state education depart-

 27  ment, shall certify to the commissioner and the director of  the  budget

 28  the  total  amount  of such federal moneys paid to a school district for

                                        101                        12022-01-1

  1  such  services  during  such  reporting  period.  Following  each  cycle

  2  payment, the commissioner of social services shall report to the commis-

  3  sioner  the  aggregate  amount of such federal medicaid payments to each

  4  school  district.  The  commissioner shall recoup such amounts first, to

  5  the extent possible, from the specified payment, then by withholding any

  6  other moneys due the school district and finally by  direct  billing  to

  7  any school district still owing moneys to the state. All moneys withheld

  8  or  paid  to the state on account of this paragraph shall be credited by

  9  the comptroller to the local assistance account for general support  for

 10  public schools.

 11    (5)  Advance  payments. To the extent that any moneys payable pursuant

 12  to clauses (iv) and (v) of subparagraph two of this paragraph, are  paid

 13  in  advance of April first, such moneys shall be paid in accordance with

 14  chapter two hundred twenty of the laws of nineteen  hundred  ninety,  as

 15  amended,  and  in  the  same  proportion as such school district's share

 16  bears to the total moneys, payable to all such school districts pursuant

 17  to such clauses (iv) and  (v)  provided  however,  that  any  moneys  so

 18  advanced shall be deducted first from a school district's payment due in

 19  April,  then  from  any moneys due in May and finally from any remaining

 20  moneys due in June. Any advance to be paid prior to April  first,  nine-

 21  teen  hundred  ninety-four,  shall  be  based on a plan submitted by the

 22  commissioner and approved by the director of the  budget  and  shall  be

 23  filed  with  the  chair of the senate finance committee and the chair of

 24  the assembly ways and means committee. The amount of payments so  accel-

 25  erated  shall not exceed the amount available from the proceeds of bonds

 26  sold by the local government assistance corporation in the  period  from

 27  April  first,  nineteen hundred ninety-three through March thirty-first,

 28  nineteen hundred ninety-four.

                                        102                        12022-01-1

  1    (6) Apportionments to the city school district of the city of New York

  2  under the provisions of this paragraph shall be computed and paid  on  a

  3  city-wide basis.

  4    2.  a.  Such  moneys  shall  be  payable to the treasurer of each city

  5  school district, and the treasurer of each union  free  school  district

  6  and  of  each central school district and of each other school district,

  7  if there be a treasurer, otherwise to the collector or other  disbursing

  8  officer  of  such  district, who shall apply for and receive the same as

  9  soon as payable.

 10    b. In the case of city school districts of  cities  with  one  hundred

 11  twenty-five  thousand inhabitants or more, any payment which pursuant to

 12  this section is required to be made to the treasurer of the city  school

 13  district, shall be made to the city treasurer or chamberlain.

 14    3.  Any payment to a school district pursuant to this section shall be

 15  general receipts of the district and may be used for any lawful  purpose

 16  of the district provided, however that any payments for debt service for

 17  school building purposes on debt which has been excluded in ascertaining

 18  the  power of the school district to contract indebtedness shall be used

 19  solely for the purpose of payment of the interest on and amortization of

 20  or payment of such indebtedness.

 21    § 41. Section 3609-b of the  education  law  is  REPEALED  and  a  new

 22  section 3609-b is added to read as follows:

 23    §  3609-b.  Flex  aid.    For the two thousand two--two thousand three

 24  school year and thereafter, flex aid payable pursuant  to  this  chapter

 25  shall, in the first instance, be designated as the state share of moneys

 26  due  a school district pursuant to title XIX of the social security act,

 27  on account of school supportive health  services  provided  to  students

 28  with  disabilities  in  special  education  programs pursuant to article

                                        103                        12022-01-1

  1  eighty-nine of this chapter to those pupils who are  qualified  individ-

  2  uals  with  a disability as defined in the federal rehabilitation act of

  3  1973, as amended; where some or all of such state share may be  assigned

  4  on  behalf  of school districts to the department of health, as provided

  5  in this section; any remaining state  share  moneys  shall  be  paid  to

  6  school  districts  in an amount equal to and on the same schedule as the

  7  federal share of such title XIX payments  and  shall  be  based  on  the

  8  monthly  report  of  the commissioner of health to the commissioner; and

  9  where the amount to be assigned to the department of health,  as  deter-

 10  mined  by  the commissioner of health, for any school district shall not

 11  exceed the federal share of any moneys due such school district pursuant

 12  to title XIX, and where moneys designated as state share moneys shall be

 13  paid to such school districts based on the submission  and  approval  of

 14  claims  related to such school supportive health services, in the manner

 15  provided by law; and where any moneys remaining to be apportioned  to  a

 16  school  district  as  flex  aid  pursuant  to this chapter shall, in the

 17  second instance, be used to reimburse the commissioner  for  any  moneys

 18  due  from  a  school  district  found  to be financially responsible, in

 19  accordance with the provisions of paragraph e  of  subdivision  four  of

 20  section thirty-two hundred two of this chapter, for the cost of instruc-

 21  tion  of  a  student with a disability placed by a local social services

 22  district or other state department or agency in a family home  at  board

 23  that  receives  program support from a child care institution affiliated

 24  with a special act school district which is located  in  another  school

 25  district  which  contracts  for  the education of such student, upon the

 26  recommendation of its committee on special education, for  the  instruc-

 27  tion  of  such student pursuant to paragraph c, d, e or f of subdivision

 28  two of section forty-four hundred one of this chapter or for a  nonresi-

                                        104                        12022-01-1

  1  dential  placement pursuant to paragraph 1 of such subdivision, provided

  2  that in the event that a district owes more than the moneys remaining to

  3  be apportioned to the district as flex aid pursuant to this chapter, the

  4  commissioner shall withhold such excess from any other moneys payable to

  5  the district.

  6    § 42. The opening paragraph of section 3609-c of the education law, as

  7  added by chapter 474 of the laws of 1996, is amended to read as follows:

  8    Notwithstanding the provisions of section thirty-six hundred nine-a of

  9  this   article,   apportionments   payable   pursuant   to   subdivision

 10  thirty-one-a of section thirty-six hundred two of this article shall  be

 11  paid  pursuant  to this section, provided however that no payment may be

 12  made in accordance with this  section  prior  to  certification  by  the

 13  commissioner  that  the  district  has  adopted a budget for that school

 14  year.  For aid payable in the nineteen hundred  ninety-six--ninety-seven

 15   school  year  and  thereafter   through  two thousand--two thousand one

 16  school years, "moneys apportioned" shall mean  the  lesser  of  (i)  one

 17  hundred  percent  of  the  respective  amount  set forth for each school

 18  district as payable pursuant to this section in the school aid  computer

 19  listing  for  the  current  year, as defined in the opening paragraph of

 20  section thirty-six hundred nine-a of this article, or  (ii)  the  appor-

 21  tionment  calculated  by  the  commissioner based on data on file at the

 22  time the payment is processed, and for the two thousand  one--two  thou-

 23  sand two school year and thereafter, "moneys apportioned" shall mean the

 24  apportionment  calculated  by  the commissioner based on data on file at

 25  the time the payment is processed.  The definitions of "base  year"  and

 26  "current  year"  as  set  forth in subdivision one of section thirty-six

 27  hundred two of this article shall apply to this section.

                                        105                        12022-01-1

  1    § 43. Subdivision 1 of section 3609-c of the education law,  as  added

  2  by chapter 474 of the laws of 1996, is amended to read as follows:

  3    1.  Prescribed payments. The moneys apportioned by the commissioner to

  4  small city school districts pursuant to this section during  the  school

  5  year  shall be paid as follows: (i) eight and one-third percent shall be

  6  payable on or before the fifteenth of each of the months of  September, 

  7  October  and , November, and December (ii)  seventy  percent  minus  any

  8  payments  made  pursuant  to  paragraph (i) of this subdivision shall be

  9  payable on or before the first  business  day  of  March,  (iii)  eighty

 10  percent  minus  any  payment made pursuant to paragraphs (i) and (ii) of

 11  this subdivision shall be payable on or before the first business day of

 12  April, (iv) ninety percent minus any payments  made  pursuant  to  para-

 13  graphs  (i),  (ii)  and (iii) of this subdivision shall be payable on or

 14  before the first business day of May and (v) to the  extent  moneys  are

 15  owed,  one  hundred percent of the moneys apportioned minus any payments

 16  made pursuant to paragraphs (i), (ii), (iii) and (iv) of  this  subdivi-

 17  sion shall be payable on or before the first business day of June.

 18    §  44.  Paragraph  d of subdivision 3 of section 3641 of the education

 19  law, as amended by chapter 474 of the laws of 1996, is amended  to  read

 20  as follows:

 21    d.  Initial  Grants.  The  commissioner  is hereby authorized to award

 22  grants, within the amount appropriated for such purpose of not more than

 23  two hundred thousand dollars ($200,000) each, to  school  districts  and

 24  boards of cooperative educational services on a competitive grant basis,

 25  to  promote  partnerships  between  schools, community groups, organiza-

 26  tions, business and industry, social and other human services  providers

 27  and  local  governments. Priority shall be given to school districts and

 28  boards of cooperative educational services which  secure  actual  dollar

                                        106                        12022-01-1

  1  support  for  such  programs from local, federal, private or other state

  2  funding. Funding received under this  subdivision  shall  constitute  no

  3  more  than  ninety  percent  of the total cost of the program during the

  4  first  year;  no  more  than sixty percent during the second year of the

  5  program; and no more than twenty-seven percent of the total cost of  the

  6  program  during  the  first year shall be funded from such grants during

  7  the third and subsequent years.

  8    § 45. Subdivision 6 of section 4402 of the education law,  as  amended

  9  by section 59 of part A of chapter 60 of the laws of 2000, is amended to

 10  read as follows:

 11    6.  Notwithstanding any other law, rule or regulation to the contrary,

 12  the board of education of a city school district with  a  population  of

 13  one  hundred twenty-five thousand or more inhabitants shall be permitted

 14  to establish  maximum  class  sizes  for  special  classes  for  certain

 15  students  with  disabilities  in  accordance with the provisions of this

 16  subdivision. For the purpose of obtaining relief from any adverse fiscal

 17  impact from under-utilization of special education resources due to  low

 18  student  attendance  in  special  education  classes  at  the middle and

 19  secondary level as determined by the commissioner, such boards of educa-

 20  tion shall, during the school years nineteen hundred  ninety-five--nine-

 21  ty-six  through   two  thousand--two thousand one  two thousand two--two

 22  thousand three, be authorized to increase class sizes in special classes

 23  containing students with disabilities whose age ranges are equivalent to

 24  those of students in middle and secondary  schools  as  defined  by  the

 25  commissioner for purposes of this section by up to but not to exceed one

 26  and  two  tenths  times  the  applicable maximum class size specified in

 27  regulations of the commissioner rounded up to the nearest whole  number,

 28  provided  that  in  a  city  school  district having a population of one

                                        107                        12022-01-1

  1  million or more, classes that have a maximum class size of  fifteen  may

  2  be increased by no more than one student and provided that the projected

  3  average  class size shall not exceed the maximum specified in the appli-

  4  cable  regulation,  provided  that such authorization shall terminate on

  5  June thirtieth, two thousand two.  Such authorization shall  be  granted

  6  upon  filing  of  a notice by such a board of education with the commis-

  7  sioner stating the board's intention to increase such class sizes and  a

  8  certification that the board will conduct a study of attendance problems

  9  at  the  secondary  level and will implement a corrective action plan to

 10  increase the rate of attendance of students in such classes to at  least

 11  the  rate  for students attending regular education classes in secondary

 12  schools of the district. Such corrective action plan shall be  submitted

 13  for  approval  by  the  commissioner by a date during the school year in

 14  which such board increases class sizes  as  provided  pursuant  to  this

 15  subdivision  to  be prescribed by the commissioner. Upon at least thirty

 16  days notice to the board of education, after conclusion  of  the  school

 17  year  in  which such board increases class sizes as provided pursuant to

 18  this subdivision, the commissioner shall be authorized to terminate such

 19  authorization upon a finding that the board has  failed  to  develop  or

 20  implement an approved corrective action plan.

 21    §  46. Subdivision 3 of section 4408 of the education law,  as amended

 22  by section 62 of part A of chapter 60 of the laws of 2000, is amended to

 23  read as follows:

 24    3. Payment schedule. For aid payable in the  two  thousand--two  thou-

 25  sand  one  two thousand one--two thousand two school year, moneys appro-

 26  priated annually to the department from the general fund - local assist-

 27  ance account  under  the  elementary,  middle  and  secondary  education

 28  program  for  July  and  August programs for students with disabilities,

                                        108                        12022-01-1

  1  shall be used as follows: (i) for remaining base year and  prior  school

  2  years  obligations,  (ii)  for  the purposes of subdivision four of this

  3  section for schools operated under  articles  eighty-seven  and  eighty-

  4  eight  of  this  chapter,  and  (iii)  notwithstanding  any inconsistent

  5  provisions of this chapter, for payments made pursuant to  this  section

  6  for  current  school  year  obligations,  provided,  however,  that such

  7  payments shall not exceed seventy percent of the state aid due  for  the

  8  sum  of  the  approved  tuition and maintenance rates and transportation

  9  expense provided for herein; provided, however, that payment of eligible

 10  claims shall be payable in the order that such claims have been approved

 11  for payment by the commissioner, but in no case  shall  a  single  payee

 12  draw down more than forty-five percent of the appropriation provided for

 13  the  purposes  of this section, and provided further that no claim shall

 14  be set aside for insufficiency of funds to make a complete payment,  but

 15  shall be eligible for a partial payment in one year and shall retain its

 16  priority  date  status  for  appropriations provided for this section in

 17  future years.

 18    § 47. Subparagraph (iii) of paragraph a of subdivision  9  of  section

 19  4410 of the education law, as amended by section 53-a of part 1 of chap-

 20  ter 405 of the laws of 1999, is amended to read as follows:

 21    (iii) Commencing July first, nineteen hundred ninety-six, a moratorium

 22  on  the  approval  of  any  new  or  expanded programs in settings which

 23  include only preschool children with  disabilities  is  established  for

 24   five   nine years.   Exceptions shall be made for cases in which school

 25  districts document a critical need for a new or expanded  program  in  a

 26  setting  which  includes  only  preschool children with disabilities, to

 27  meet the projected demand for services for  preschool  children  in  the

 28  least restrictive environment. Applications for new or expanded programs

                                        109                        12022-01-1

  1  may  be  made directly to the state education department. Nothing herein

  2  shall prohibit the commissioner from approving  the  modification  of  a

  3  full-day program into half-day sessions.

  4    Commencing  July  1, 1999 the department shall only approve any new or

  5  expanded programs in settings which include only preschool children with

  6  disabilities, if the applicant can document a critical need for a new or

  7  expanded program in a setting which  includes  only  preschool  children

  8  with  disabilities  to  meet  the  projected  demand  for  services  for

  9  preschool children in the least restrictive environment. If the  depart-

 10  ment  determines  that  approval will not be granted, it must notify the

 11  applicant, in writing, of its reasons for not  granting  such  approval.

 12  The  department shall establish guidelines, within 90 days of the effec-

 13  tive date of this section which shall state the criteria used to  deter-

 14  mine if the applicant has demonstrated such a critical need. The depart-

 15  ment  is  authorized to consult with the local school district to verify

 16  any data submitted.

 17    On or before December 1,  2000  2002, the  commissioner  of  education

 18  shall  submit  a  report to the board of regents, the majority leader of

 19  the senate, the speaker of the  assembly  and  governor  evaluating  the

 20  impact  of  such  moratorium  on  the  availability of preschool special

 21  education services. The report shall include: (i) information  regarding

 22  the  number  of applications for new programs and program expansions and

 23  the disposition of those  applications  by  the  commissioner;  (ii)  an

 24  assessment  of  the  projected  need for additional classes serving only

 25  disabled children and those serving disabled children  with  their  non-

 26  disabled  peers and in other less restrictive settings; (iii) an assess-

 27  ment of the projected need for additional programs due to program  clos-

 28  ings  in  the  region,  number  of children receiving early intervention

                                        110                        12022-01-1

  1  services and existing waiting lists; (iv) an assessment of the  distance

  2  that children must be transported to receive preschool special education

  3  services; (v) an evaluation of the programmatic performance and cost-ef-

  4  fectiveness of existing programs; (vi) recommendations regarding ways in

  5  which  improved quality and cost-effectiveness could be achieved through

  6  the selective expansion of effective programs and/or the curtailment  of

  7  less effective programs; and  (vi)  vii an assessment of the availabili-

  8  ty   and  effectiveness  of  approved  programs  providing  services  to

  9  preschool children with autism.

 10    § 48. Subparagraph 3 of paragraph b of subdivision 4 of  section  92-c

 11  of  the state finance law, as amended by chapter 82 of the laws of 1995,

 12  is amended to read as follows:

 13    (3) those eligible school districts scheduled to receive  the  largest

 14  direct  payments  in June pursuant to clause  (iii)  (v) of subparagraph

 15  three of paragraph b of subdivision one of  section  thirty-six  hundred

 16  nine-a  of  the  education law shall be entitled to the June lottery aid

 17  payment, within the amount appropriated for such purpose; and

 18    § 49. Section 97-vvv of the state finance law,  as  added  by  section

 19  65-a  of part A of chapter 60 of the laws of 2000, is amended to read as

 20  follows:

 21    § 97-vvv. Universal prekindergarten reserve fund. 1. There  is  hereby

 22  established in the sole custody of the comptroller a special fund, to be

 23  known as the "universal prekindergarten reserve fund".

 24    2. Such fund shall consist of moneys transferred from the general fund

 25  pursuant to paragraph f of subdivision ten of section thirty-six hundred

 26  two-e  of  the  education  law on behalf of school districts eligible to

 27  receive funds pursuant to such section which do not provide a  universal

 28  prekindergarten  program  or  do  not  serve  all  aidable pupils in the

                                        111                        12022-01-1

  1  current school year. School districts reserving moneys within this  fund

  2  shall  access such moneys for use in providing a universal prekindergar-

  3  ten program pursuant to section thirty-six hundred two-e of  the  educa-

  4  tion law based upon a plan approved by the commissioner of education and

  5  the  director of the budget. Notwithstanding any provision of law to the

  6  contrary, upon the request of the director  of  the  budget,  the  comp-

  7  troller  shall  transfer, and upon any such transfer any school district

  8  right to such funds shall be extinguished, from the  universal  pre-kin-

  9  dergarten  reserve  fund  to the credit of the general fund on or before

 10  October first, two thousand one an amount  representing  all  funds  for

 11  which  school  districts have not notified the commissioner of education

 12  by September first, two thousand one of an intent to initiate or  expand

 13  a prekindergarten program pursuant to subparagraph two of paragraph f of

 14  subdivision ten of section thirty-six hundred two-e of the education law

 15  or  have  not  demonstrated  to  the satisfaction of the commissioner of

 16  education that such program initiation or expansion is likely,  provided

 17  further  that any funds remaining on deposit in the universal prekinder-

 18  garten fund as of July first, two thousand two, shall be transferred  to

 19  the general fund.

 20    § 50. Paragraph a of section 11.00 of the local finance law is amended

 21  by adding a new subdivision 96 to read as follows:

 22    96.  Educational  facilities.  The  acquisition,  construction, recon-

 23  struction, improvement, rehabilitation, repair, furnishing or  equipping

 24  of  a  school construction project eligible for the apportionment of aid

 25  pursuant to subdivision six of section thirty-six  hundred  two  of  the

 26  education law, thirty years.

 27    § 51. Paragraph a of section 20.00 of the local finance law is amended

 28  by adding a new subdivision 11 to read as follows:

                                        112                        12022-01-1

  1    11.  Lease,  sublease  or  other  agreements  entered into pursuant to

  2  subparagraph two of paragraph b of subdivision thirty-eight  of  section

  3  sixteen hundred eighty of the public authorities law.

  4    § 52. Paragraph a of section 90.00 of the local finance law is amended

  5  by adding a new subdivision 3 to read as follows:

  6    3.  Notwithstanding  the  provisions  of subdivision one of this para-

  7  graph, bonds issued by a school district prior to the effective date  of

  8  this  subdivision  for  the  purpose  of financing facilities which were

  9  eligible for building aid pursuant to section thirty-six hundred two  of

 10  the  education  law,  but for which the aid apportionment payable in two

 11  thousand one--two thousand two and two thousand two--two thousand  three

 12  school years for approved expenditures for debt service are subsequently

 13  reduced as a result of the application of assumed amortization to unpaid

 14  principal outstanding as of July first, two thousand one may be refunded

 15  and  the refunding bonds may be sold at either public or private sale in

 16  accordance with the provisions of section 90.10; provided, however,  the

 17  school  district  need not comply with: (i) subparagraph (a) of subdivi-

 18  sion two of paragraph b of section 90.10 of this title; and (ii) if  the

 19  bonds  to be refunded are to be redeemed or paid on the same date as the

 20  refunding bonds are issued, the school district need not comply with the

 21  provisions of section 90.10 of this title relating to the escrow of  the

 22  proceeds of the sale of the refunding bonds.

 23    §  53.    Subdivision  2  of paragraph b of section 90.10 of the local

 24  finance law is amended by adding a  new  subparagraph  (e)  to  read  as

 25  follows:

 26    (e)  Notwithstanding the provisions of subparagraph (a) of this subdi-

 27  vision, a school district may also issue refunding bonds to refund bonds

 28  if the bonds were issued by a school district  prior  to  the  effective

                                        113                        12022-01-1

  1  date  of  this subparagraph for the purpose of financing facilities that

  2  were eligible for building aid pursuant to subdivision  six  of  section

  3  thirty-six  hundred  two  of  the  education  law, but for which the aid

  4  apportionment  payable  in  two  thousand  one--two thousand two and two

  5  thousand two--two thousand three school years for approved  expenditures

  6  for debt service are subsequently reduced as a result of the application

  7  of  assumed  amortization  to  unpaid  principal  outstanding as of July

  8  first, two thousand one.

  9    § 54. Paragraph (b) of subdivision 2 of section  1676  of  the  public

 10  authorities  law  is  amended  by adding a new undesignated paragraph to

 11  read as follows:

 12    Any school district in the state with respect to the financing,  refi-

 13  nancing,  acquisition,  design,  construction, reconstruction, rehabili-

 14  tation, improvement, furnishing, purchasing and equipping of, or  other-

 15  wise  providing  for,  school  district  capital  facilities  and school

 16  district capital equipment for such school districts.

 17    § 55. Section 1676 of the public authorities law is amended by  adding

 18  four new subdivisions 40, 41, 42 and 43 to read as follows:

 19    40.  The term "school district" shall mean a common school district, a

 20  consolidated school district, a union free school  district,  a  central

 21  school district, a central high school district, a public school created

 22  pursuant  to  article  fifty-six  of the education law, or a city school

 23  district.

 24    41. The term "school board" shall mean the board of education, trustee

 25  or board of trustees of a school  district,  or,  for  purposes  of  any

 26  lease, sublease or other agreement entered into pursuant to subparagraph

 27  two  of  paragraph  b  of  subdivision  thirty-eight  of section sixteen

 28  hundred eighty of this article, a city acting on behalf of a city school

                                        114                        12022-01-1

  1  district in a city having a population in excess of one hundred  twenty-

  2  five thousand inhabitants according to the latest federal census.

  3    42.  The  term  "school  district  capital  facilities" shall mean any

  4  academic building, administrative  building,  joint  school  facilities,

  5  including  a  school bus garage for which a cost allowance or incidental

  6  cost allowance would be available pursuant to subdivision six of section

  7  thirty-six hundred two of the  education  law,  a  laboratory,  library,

  8  classroom,  lecture  hall,  or  other  building  or structure essential,

  9  necessary or useful in an educational program of  any  school  district,

 10  including  all necessary and attendant and related facilities and equip-

 11  ment.

 12    43. The term "school district capital equipment" shall mean  any  type

 13  of  capital  equipment  essential, necessary or useful in an educational

 14  program of any school district and telecommunication  systems,  computer

 15  systems,  local  area  networks  or  wide-area  networks,  including the

 16  original  purchase  and  installation  of  computer  hardware,  conduit,

 17  wiring,  in-building  elements of networks and equipment for powering of

 18  hardware installation in buildings.

 19    § 56. Section 1678 of the public authorities law is amended by  adding

 20  a new subdivision 24 to read as follows:

 21    24.  To  acquire  bonds,  notes  or  other  obligations  of any school

 22  district or city of the state issued  to  finance  or  refinance  school

 23  district capital facilities and school district capital equipment and to

 24  make  loan  commitments  and loans to school districts and to cities for

 25  such purposes, and to enter into arrangements with school districts  and

 26  cities for the purchase of such bonds, notes or other obligations.

 27    §  57.  Subdivision 1 of section 1680 of the public authorities law is

 28  amended by adding a new undesignated paragraph to read as follows:

                                        115                        12022-01-1

  1    Any school district in the state with respect to the financing,  refi-

  2  nancing,  acquisition,  design,  construction, reconstruction, rehabili-

  3  tation, improvement, furnishing, purchasing and equipping of, or  other-

  4  wise  providing  for,  school  district  capital  facilities  and school

  5  district capital equipment for such school districts.

  6    §  58. Section 1680 of the public authorities law is amended by adding

  7  two new subdivisions 38 and 39 to read as follows:

  8    38. a. The dormitory authority is empowered and  authorized  to  enter

  9  into  a  lease,  sublease  or  other  agreement with any school district

 10  pursuant to  which  the  dormitory  authority  may  finance,  refinance,

 11  acquire, design, construct, reconstruct, rehabilitate, improve, furnish,

 12  purchase  and  equip  or  otherwise  provide for school district capital

 13  facilities  and  school  district  capital  equipment  for  such  school

 14  districts.  Any  such lease, sublease or other agreement may provide for

 15  joint facilities pursuant to  section  thirty-six  hundred  two  of  the

 16  education  law  pursuant  to  an  agreement  with  participating  school

 17  districts as authorized in such section. Such lease, sublease  or  other

 18  agreement  may provide for annual payments to the dormitory authority by

 19  or on behalf of the school  district.  Such  lease,  sublease  or  other

 20  agreement  may  contain such other terms and conditions as may be agreed

 21  upon by the parties thereto, including, but not limited to,  the  estab-

 22  lishment  of  reserve  funds and indemnities. A lease, sublease or other

 23  agreement entered into by a school district with the dormitory authority

 24  pursuant to the provisions of this section shall not be deemed to be  an

 25  installment  purchase  contract,  contract  for  public work or purchase

 26  contract within the meaning of article five-A of the  general  municipal

 27  law or any other law.

                                        116                        12022-01-1

  1    b.  (1)  Except as provided in subparagraph two of this paragraph, any

  2  such lease, sublease, or other agreement shall not constitute or  create

  3  indebtedness  of  the  state  or a political subdivision for purposes of

  4  article seven or eight of the state constitution or section 20.00 of the

  5  local  finance  law, nor shall any such lease, sublease, or other agree-

  6  ment constitute a contractual obligation in excess of the amounts appro-

  7  priated therefor.

  8    (2) A school district shall have full power and  authority  to  pledge

  9  its  full  faith  and  credit  for the payment of its obligations to the

 10  dormitory authority pursuant to any lease, sublease or  other  agreement

 11  entered  into  pursuant to this subdivision. Any such lease, sublease or

 12  other agreement shall be authorized in the same manner  as  is  required

 13  for  the  adoption of a bond resolution by the school district under the

 14  local finance law. The  total  amount  of  all  unpaid  annual  payments

 15  constituting  the  principal  of  any  indebtedness for which the school

 16  district shall have pledged its faith and credit shall be deemed  to  be

 17  indebtedness  of  the school district within the meaning of subparagraph

 18  (b) of subdivision three of paragraph a of section 135.00 of  the  local

 19  finance  law  and section ten of article eight of the state constitution

 20  and such lease, sublease or other  agreement  shall  constitute  indebt-

 21  edness  for  purposes of article eight of the constitution and the local

 22  finance law.

 23    c. Notwithstanding the provisions of any general or special law to the

 24  contrary, school districts may, subject to the requirements, if any,  of

 25  voter approval contained in the education law or any other law, transfer

 26  title  or  grant any other property interests or rights to the dormitory

 27  authority and the dormitory authority may transfer title  or  grant  any

 28  other real property interests to such school districts.

                                        117                        12022-01-1

  1    d.  Any  such lease, sublease or other agreement entered into pursuant

  2  to this subdivision may provide that the provisions thereof shall remain

  3  in force and effect until the bonds, notes or other obligations  of  the

  4  dormitory authority are no longer outstanding, together with interest on

  5  any  unpaid  installments  of  interest and the fees and expenses of the

  6  dormitory authority, are fully met and discharged, and any  payments  to

  7  be made by or on behalf of the school district to the dormitory authori-

  8  ty  may  be  pledged  to secure such bonds.  Any such lease, sublease or

  9  other agreement may provide for joint  facilities  pursuant  to  section

 10  thirty-six  hundred  two  of the education law through an agreement with

 11  participating districts as authorized in such section.

 12    e. (1) In the event of the failure of a school district  to  pay  when

 13  due  pursuant  to  any lease, sublease or other agreement all or part of

 14  such amounts, the dormitory authority shall forthwith make  and  deliver

 15  to  the  state  comptroller,  a  certificate  stating  the amount of the

 16  payment required to have been made by the school  district,  the  amount

 17  paid  by  the  school  district  and  the amount remaining unpaid by the

 18  school district. The state comptroller shall,  in  accordance  with  the

 19  provisions of section ninety-nine-b of the state finance law, pay to the

 20  dormitory  authority  or the trustee for the holders of any bonds issued

 21  by the dormitory authority on behalf of a school district with the state

 22  comptroller, the amount set  forth  in  such  certificate  as  remaining

 23  unpaid.

 24    (2) For purposes of section ninety-nine-b of the state finance law and

 25  notwithstanding  the  provisions  of  any  general or special law to the

 26  contrary, the following shall apply in connection with  any  certificate

 27  filed  by  the  dormitory authority pursuant to subparagraph one of this

 28  paragraph: (i) all leases, subleases or other agreements entered into by

                                        118                        12022-01-1

  1  and between a school district pursuant  to  this  subdivision  shall  be

  2  deemed  "bonds  or  notes  of the school district"; (ii) the certificate

  3  filed by the dormitory authority with the state comptroller as  provided

  4  herein  shall  be  deemed to be a "verified statement" of "the holder or

  5  owner of a bond or note" of the school  district;  (iii)  the  dormitory

  6  authority,  or  the  trustee  for the holders of any bonds issued by the

  7  dormitory authority on behalf of a school district, shall be  deemed  to

  8  be  the  "paying  agent";  and (4) the amount payable by the state comp-

  9  troller to the dormitory authority shall include principal, interest and

 10  other amounts payable  to  the  dormitory  authority  under  the  lease,

 11  sublease or other agreement.

 12    f. No lease, sublease or other agreement entered into pursuant to this

 13  subdivision  shall  provide for the financing of school district capital

 14  facilities or school district capital equipment unless approved  by  the

 15  voters  of  the  school  district  where such voter approval is required

 16  under section four hundred sixteen of the education law if applicable to

 17  the school district and unless any and all necessary  approvals  of  the

 18  commissioner of education under section four hundred eight of the educa-

 19  tion law have been obtained.

 20    g.  (1)  Any lease, sublease, or other agreement that provides for the

 21  authority to undertake the design, construction,  reconstruction,  reha-

 22  bilitation,  improvement,  furnishing,  purchasing  and equipping of, or

 23  otherwise providing for, school district capital facilities  and  school

 24  district  capital  equipment  on  behalf  of  such school district shall

 25  further provide that the authority, in its capacity as agent  or  repre-

 26  sentative of the school district, shall: (i) procure, in accordance with

 27  the  authority's  procurement guidelines adopted pursuant to section two

 28  thousand eight hundred seventy-nine of  this  chapter,  all  architects,

                                        119                        12022-01-1

  1  engineers,  construction  managers  and contractors necessary to design,

  2  manage and construct the project (including the performance of  services

  3  relating to planning, design review, budgeting, construction scheduling,

  4  constructability   reviews,  coordination  of  prime  contractors,  cost

  5  control and processing of change orders); and (ii)  monitor,  supervise,

  6  review  and  coordinate  the  services  of  all  architects,  engineers,

  7  construction managers and contractors engaged  pursuant  to  clause  (i)

  8  hereof  to  the  extent that the authority deems it necessary to fulfill

  9  its responsibilities as agent or representative of the  school  district

 10  under such agreement.

 11    (2)  The  dormitory  authority  shall  award  all  contracts  for  the

 12  construction, reconstruction, rehabilitation, repair, furnishing, equip-

 13  ping or provision  of  school  district  capital  facilities  or  school

 14  district  capital equipment in accordance with the provisions of section

 15  one hundred three of the general municipal law.

 16    39. The dormitory authority shall not  issue  its  obligations  for  a

 17  school  district pursuant to subdivision thirty-eight of this section to

 18  refund or refinance any outstanding indebtedness of such school district

 19  except: (i) to refund dormitory authority obligations previously  issued

 20  for  such  school  district; (ii) to refund or refinance any outstanding

 21  indebtedness issued  by  a  school  district  (other  than  city  school

 22  district  in  a  city having population in excess of one hundred twenty-

 23  five thousand inhabitants according to the latest federal census)  prior

 24  to  the  effective date of this subdivision for the purpose of financing

 25  facilities which were eligible for  building  aid  pursuant  to  section

 26  three  thousand  six  hundred two of the education law but for which the

 27  approved expenditures for debt service payable in any  year  are  subse-

 28  quently  reduced;  (iii)  to refund or refinance any outstanding indebt-

                                        120                        12022-01-1

  1  edness issued by a school district (other than city school district in a

  2  city having population in excess of  one  hundred  twenty-five  thousand

  3  inhabitants  according to the latest federal census) provided that pres-

  4  ent  value of the total payments to become due to the authority from the

  5  school district on account of principal and interest are less  than  the

  6  present  value  of  the principal and interest payments to become due on

  7  the bonds to be refunded with such present value savings to be  computed

  8  as  provided  in  subparagraph  a  of  subdivision two of paragraph b of

  9  section 90.10 of the local finance law; or (iv) in the case  of  a  city

 10  school  district  in  a  city having population in excess of one hundred

 11  twenty-five thousand inhabitants according to the latest federal census,

 12  with the consent of the commissioner of education and  the  director  of

 13  the  budget.  In the event that the dormitory authority issues its obli-

 14  gations on behalf of a school district as provided in this  subdivision,

 15  the  approval  of  voters  of  the school district shall not be required

 16  notwithstanding anything in paragraph f of subdivision  thirty-eight  of

 17  this section to the contrary.

 18    §  59.  Subdivisions b and c of section 70 of part L of chapter 405 of

 19  the laws of 1999, amending the real property  tax  law  and  other  laws

 20  relating  to  enacting  components  necessary to implement the 1999-2000

 21  state fiscal plan, are amended to read as follows:

 22    b. The claim for an apportionment to be  paid  to  a  school  district

 23  pursuant  to  subdivision  a  of  this section shall be submitted to the

 24  commissioner of education on a form prescribed  for  such  purpose,  and

 25  shall  be  payable upon determination by such commissioner that the form

 26  has been submitted as prescribed. Such approved amounts shall be payable

 27  on the same day on or before September, 2000, as funds provided pursuant

 28  to subparagraph  3  4 of paragraph b of subdivision 4 of section 92-c of

                                        121                        12022-01-1

  1  the state finance law, on the audit and warrant of the state comptroller

  2  on vouchers certified or approved by the commissioner  of  education  in

  3  the  manner  prescribed by law from moneys in the state lottery fund and

  4  from  the  general  fund  to the extent that the amount paid to a school

  5  district pursuant to this subdivision  c   and  subdivision  a  of  this

  6  section  exceeds  the  amount  of the lottery apportionment, if any, due

  7  such school district pursuant to subparagraph  3  2 of  paragraph  a  of

  8  subdivision  1  of  section  3609-a  of the education law in the 2000-01

  9  school year.

 10    c. Notwithstanding the provisions of section 3609-a of  the  education

 11  law, an amount equal to the amount paid to a school district pursuant to

 12  subdivisions  a  and  b of this section shall first be deducted from the

 13  following payments due the school district  during  the  2000-01  school

 14  year  pursuant  to  the subparagraphs of paragraph a of subdivision 1 of

 15  section 3609-a of the education law in the following order:  the lottery

 16  apportionment payable pursuant to subparagraph 2 followed  by   subpara-

 17  graphs 1 and  the fixed fall payments payable pursuant to subparagraph 4

 18  and  then  followed by the district payments to the teachers' retirement

 19  system pursuant to subparagraph 1, and any remainder to be deducted from

 20  the individualized payments due the district pursuant to paragraph b  of

 21  such  subdivision  shall  be  deducted on a chronological basis starting

 22  with the earliest payment due the district.

 23    § 60. Subdivisions b and c of section 76 of part A of  chapter  60  of

 24  the  laws of 2000, amending the education law and other laws relating to

 25  enacting major components necessary to  implement  the  2000-2001  state

 26  fiscal plan, are amended to read as follows:

 27    b.  The  claim  for  an  apportionment to be paid to a school district

 28  pursuant to subdivision a of this section  shall  be  submitted  to  the

                                        122                        12022-01-1

  1  commissioner  of  education  on  a form prescribed for such purpose, and

  2  shall be payable upon determination by such commissioner that  the  form

  3  has been submitted as prescribed. Such approved amounts shall be payable

  4  on the same day on or before September, 2001, as funds provided pursuant

  5  to subparagraph  3  4 of paragraph b of subdivision 4 of section 92-c of

  6  the state finance law, on the audit and warrant of the state comptroller

  7  on  vouchers  certified  or approved by the commissioner of education in

  8  the manner prescribed by law from moneys in the state lottery  fund  and

  9  from  the  general  fund  to the extent that the amount paid to a school

 10  district pursuant to this subdivision  c   and  subdivision  a  of  this

 11  section  exceeds  the  amount  of the lottery apportionment, if any, due

 12  such school district pursuant to subparagraph  3  2 of  paragraph  a  of

 13  subdivision  1  of  section  3609-a  of the education law in the 2001-02

 14  school year.

 15    c. Notwithstanding the provisions of section 3609-a of  the  education

 16  law, an amount equal to the amount paid to a school district pursuant to

 17  subdivisions  a  and  b of this section shall first be deducted from the

 18  following payments due the school district  during  the  2001-02  school

 19  year  pursuant  to  the subparagraphs of paragraph a of subdivision 1 of

 20  section 3609-a of the education law in the following order:  the lottery

 21  apportionment payable pursuant to subparagraph 2 followed  by   subpara-

 22  graphs 1 and  the fixed fall payments payable pursuant to subparagraph 4

 23  and  then  followed by the district payments to the teachers' retirement

 24  system pursuant to subparagraph 1, and any remainder to be deducted from

 25  the individualized payments due the district pursuant to paragraph b  of

 26  such  subdivision  shall  be  deducted on a chronological basis starting

 27  with the earliest payment due the district.

                                        123                        12022-01-1

  1    § 61. Subdivisions b and c of section 1 of part B of chapter 88 of the

  2  laws of 2000, amending the tax law relating to authorizing the  acceler-

  3  ated  payment  of  certain  state  apportionments  to  the  city  school

  4  districts of the cities of Buffalo and Yonkers, are amended to  read  as

  5  follows:

  6    b.  The  claim  for  an  apportionment  to be paid to the Buffalo city

  7  school district pursuant to subdivision  a  of  this  section  shall  be

  8  submitted to the commissioner of education on a form prescribed for such

  9  purpose,  and  shall  be payable upon determination by such commissioner

 10  that the form has been submitted  as  prescribed  and  that  the  school

 11  district  has  complied with the reporting requirements of this chapter.

 12  For the 1999-2000 school year such approved  amounts  shall  be  payable

 13  upon approval of the claim by the commissioner of education and upon the

 14  audit  and  warrant  of  the  state comptroller on vouchers certified or

 15  approved by the commissioner of education in the  manner  prescribed  by

 16  law  from  moneys  in  the  state  lottery fund appropriated for general

 17  support of public schools. For the 2000-01 school year  and  thereafter,

 18  such  approved  amounts  shall be payable on or before June thirtieth of

 19  the applicable school year upon the audit and warrant of the state comp-

 20  troller on vouchers certified or approved by the commissioner of  educa-

 21  tion  in  the  manner prescribed by law from moneys in the state lottery

 22  fund appropriated for general support of public  schools  and  from  the

 23  general  fund  to  the  extent  that the amount paid to the Buffalo city

 24  school district pursuant to this subdivision and subdivision a  of  this

 25  section  exceeds  the  amount  of the lottery apportionment, if any, due

 26  such school district pursuant to subparagraph 2 of paragraph a of subdi-

 27  vision 1 of section 3609-a of the education law on or  before  September

 28  first of the succeeding school year.

                                        124                        12022-01-1

  1    c.  Notwithstanding  the provisions of section 3609-a of the education

  2  law, an amount equal to the amount  paid  to  the  Buffalo  city  school

  3  district  during the base year pursuant to subdivisions a and b  of this

  4  section shall first be deducted from  the  following  payments  due  the

  5  school  district during the current school year pursuant to the subpara-

  6  graphs of paragraph a of subdivision 1 of section 3609-a of  the  educa-

  7  tion  law  in  the  following order:   the lottery apportionment payable

  8  pursuant to subparagraph 2 followed by  subparagraphs 1 and   the  fixed

  9  fall  payments  payable pursuant to subparagraph 4, and any remainder to

 10  be deducted from the individualized payments due to the district  pursu-

 11  ant to paragraph b of such subdivision shall be deducted on a chronolog-

 12  ical basis starting with the earliest payment due the district.

 13    § 62. Section 3 of chapter 507 of the laws of 1974, relating to appor-

 14  tionment  of state monies to certain nonpublic schools to reimburse them

 15  for their expenses in complying with certain state requirements for  the

 16  administration  of  state testing and evaluation programs, is amended by

 17  adding a new subdivision c to read as follows:

 18    c. For aid payable in the two thousand one--two  thousand  two  school

 19  year and thereafter, the commissioner shall annually apportion to one or

 20  more  approved  third  party  not-for-profit providers on behalf of each

 21  eligible qualifying school, within the amount  appropriated  and  desig-

 22  nated for such purpose, an amount determined pursuant to this section to

 23  be  made  available  to  support  the provision of academic intervention

 24  services to students enrolled in such school. The amount  to  be  appor-

 25  tioned on behalf of each school shall be determined in accordance with a

 26  formula  prescribed  in the regulations of the commissioner developed in

 27  consultation with representatives of the non-public schools, based  upon

 28  time  and  other  cost  standards determined by the commissioner and the

                                        125                        12022-01-1

  1  appropriation available in the current year, provided that  such  amount

  2  shall  not  exceed the actual cost of such services in the current year.

  3  The amount so apportioned shall be used to provide academic intervention

  4  services as set forth in the regulations of the commissioner to students

  5  enrolled  in  an  eligible  qualifying school who have not met the state

  6  standard on elementary or middle-level state assessments, as  determined

  7  by the commissioner.

  8    (1)  For  purposes  of this section, an "approved third party not-for-

  9  profit provider" shall mean a secular not-for-profit  provider  selected

 10  by  the  commissioner,  and an "eligible qualifying school" shall mean a

 11  qualifying school that has committed to meeting the standards prescribed

 12  in the regulations of the commissioner that are applicable to the  grade

 13  levels  of  such  school.  Such  provider  shall directly or by contract

 14  provide such academic intervention services  in  accordance  with  regu-

 15  lations of the commissioner and shall assure that all instruction funded

 16  pursuant  to  this  section and all instructional materials used in such

 17  instruction is secular, has no religious content  and  meets  all  other

 18  requirements of subparagraph (ii) of paragraph two of this subdivision.

 19    (2)  Each  eligible  qualifying school applying for funding under this

 20  subdivision shall submit an application, by a date to be  determined  by

 21  the  commissioner,  containing  such information as the commissioner may

 22  require. Such application shall include, but shall not be limited to:

 23    (i) a description of the academic intervention services to be provided

 24  to students enrolled in the school who have not met the  state  standard

 25  on elementary or middle-level state assessments.

 26    (ii)  a certification that such academic intervention services supple-

 27  ment and not supplant the instruction provided in the general curriculum

 28  of the school, that such services do not  result  in  reduced  hours  of

                                        126                        12022-01-1

  1  instruction otherwise provided by such school to eligible students, that

  2  such services would not have been provided absent the requirement by the

  3  state  that  students  meet state learning standards, that such services

  4  and  the  instructional  materials used therein do not include any reli-

  5  gious instruction or religious content, and that such services are need-

  6  ed to ensure that such eligible students meet state  learning  standards

  7  in accordance with regulations of the commissioner.

  8    § 63. Subdivisions b and c of section 5 of part B of chapter 88 of the

  9  laws  of 2000, amending the tax law relating to authorizing the acceler-

 10  ated  payment  of  certain  state  apportionments  to  the  city  school

 11  districts  of  the cities of Buffalo and Yonkers, are amended to read as

 12  follows:

 13    b. The claim for an apportionment to  be  paid  to  the  Yonkers  city

 14  school  district  pursuant  to  subdivision  a  of this section shall be

 15  submitted to the commissioner of education on a form prescribed for such

 16  purpose, and shall be payable upon determination  by  such  commissioner

 17  that  the  form  has  been  submitted  and  that the school district has

 18  complied with the reporting requirements of this act.  For the 1999-2000

 19  school year such approved amounts shall be payable upon approval of  the

 20  claim by the commissioner of education and upon the audit and warrant of

 21  the  state  comptroller on vouchers certified or approved by the commis-

 22  sioner of education in the manner prescribed by law from moneys  in  the

 23  state  lottery  fund appropriated for general support of public schools.

 24  For the 2000-01 school year and thereafter, such approved amounts  shall

 25  be  payable  on  or  before June thirtieth of the applicable school year

 26  upon the audit and warrant of the state comptroller on  vouchers  certi-

 27  fied  or  approved  by  the  commissioner  of  education  in  the manner

 28  prescribed by law from moneys in the state lottery fund appropriated for

                                        127                        12022-01-1

  1  general support of public schools and  from  the  general  fund  to  the

  2  extent that the amount paid to the Yonkers city school district pursuant

  3  to this subdivision and subdivision a of this section exceeds the amount

  4  of  the lottery apportionment, if any, due such school district pursuant

  5  to subparagraph 2 of paragraph a of subdivision 1 of section  3609-a  of

  6  the  education law on or before September first of the succeeding school

  7  year.

  8    c. Notwithstanding the provisions of section 3609-a of  the  education

  9  law,  an  amount  equal  to  the  amount paid to the Yonkers city school

 10  district during the base year pursuant to subdivisions a and b  of  this

 11  section  shall  first  be  deducted  from the following payments due the

 12  school district during the current school year pursuant to the  subpara-

 13  graphs  of  paragraph a of subdivision 1 of section 3609-a of the educa-

 14  tion law in the following order:    the  lottery  apportionment  payable

 15  pursuant  to  subparagraph  2 followed by  subparagraph 1 and  the fixed

 16  fall payments payable pursuant to subparagraph 4, and any  remainder  to

 17  be deducted from the individualized payment due the district pursuant to

 18  paragraph  b  of  such  subdivision shall be deducted on a chronological

 19  basis starting with the earliest payment due the district.

 20    § 64. Subdivisions (b) and (c) of section 8 of chapter 375 of the laws

 21  of 2000, authorizing the city school district of the city of Schenectady

 22  to finance deficits by the issuance of serial bonds and/or  bond  antic-

 23  ipation notes, are amended to read as follows:

 24    (b)  The claim for an apportionment to be paid to the Schenectady city

 25  school district pursuant to subdivision (a) of  this  section  shall  be

 26  submitted to the commissioner of education on a form prescribed for such

 27  purpose,  and  shall  be payable upon determination by such commissioner

 28  that the form has been submitted  as  prescribed  and  that  the  school

                                        128                        12022-01-1

  1  district  has complied with the reporting requirements of this act.  For

  2  the 1999-00 school year such approved  amounts  shall  be  payable  upon

  3  approval  of  the  claim  by  the commissioner of education and upon the

  4  audit  and  warrant  of  the  state comptroller on vouchers certified or

  5  approved by the commissioner of education in the  manner  prescribed  by

  6  law  from  moneys  in  the  state  lottery fund appropriated for general

  7  support of public schools. For the 2000-01 school year  and  thereafter,

  8  such  approved  amounts shall be payable on or before the June thirtieth

  9  of the applicable school year upon the audit and warrant  of  the  state

 10  comptroller  on  vouchers  certified  or approved by the commissioner of

 11  education in the manner prescribed by  law  from  moneys  in  the  state

 12  lottery fund appropriated for general support of public schools and from

 13  the  general  fund to the extent that the amount paid to the Schenectady

 14  city school district pursuant to this subdivision and subdivision  a  of

 15  this  section  exceeds  the amount of the lottery apportionment, if any,

 16  due such school district pursuant to subparagraph 2 of  paragraph  a  of

 17  subdivision  1  of  section  3609-a  of  the  education law on or before

 18  September first of the succeeding school year.

 19    (c) Notwithstanding the provisions of section 3609-a of the  education

 20  law,  an  amount equal to the amount paid to the Schenectady city school

 21  district during the base year pursuant to subdivisions (a)  and  (b)  of

 22  this section shall first be deducted from the following payments due the

 23  school  district during the current school year pursuant to the subpara-

 24  graphs of paragraph a of subdivision 1 of section 3609-a of  the  educa-

 25  tion  law  in  the  following  order:  the lottery apportionment payable

 26  pursuant to subparagraph 2 followed by  subparagraphs   the  fixed  fall

 27  payments  payable  pursuant  to  subparagraph 4, and any remainder to be

 28  deducted from the individualized payments due the district  pursuant  to

                                        129                        12022-01-1

  1  paragraph  b  of  such  subdivision shall be deducted on a chronological

  2  basis starting with the earliest payment due the district.

  3    § 65. Sections 1, 2 and 3 of chapter 221 of the laws of 1998, relating

  4  to  adjusting  certain  state  aid  payments to the Syracuse city school

  5  district, the Utica city school district and the  Gloversville  enlarged

  6  city  school  district regarding employment preparation aid, are amended

  7  to read as follows:

  8    Section 1. Notwithstanding any contrary provision of law, the  employ-

  9  ment preparation education aid payments made to the Syracuse city school

 10  district  in  the  1992-93, 1993-94, and the 1994-95 school years, which

 11  included excess payments of which the district has  been  notified,  and

 12  for  which  a  recovery  must  be made by the state through deduction of

 13  future aid payments, shall be reduced through  aid  deductions  totaling

 14  the  excess, by deducting one-sixth of the excess payments first, to the

 15  extent possible from each of the payments due for employment preparation

 16  education programs to be operated by such city school district and paya-

 17  ble in the months of October 1998, 1999, 2000, 2001, 2002, and 2003, and

 18  then, if such scheduled  aid  deduction  shall  exceed  such  designated

 19  payment  for  employment  preparation education programs, from any other

 20  moneys due the school district, provided, however,  there  shall  be  no

 21  interest  penalty  against  such  district  assessed or collected by the

 22  state.

 23    § 2. Notwithstanding any contrary provision  of  law,  the  employment

 24  preparation  education  aid  payments  made  to  the  Utica  city school

 25  district in the 1995-96 school year, which included excess  payments  of

 26  which  the  district has been notified, and for which a recovery must be

 27  made by the state through deduction of future  aid  payments,  shall  be

 28  reduced  through  aid  deductions totaling the excess, by deducting one-

                                        130                        12022-01-1

  1  sixth of the excess payments first, to the extent possible, from each of

  2  the payments due for employment preparation  education  programs  to  be

  3  operated by such city school district and payable in the months of Octo-

  4  ber  1998, 1999, 2000, 2001, 2002, and 2003, and then, if such scheduled

  5  aid deduction shall exceed such designated payment for employment prepa-

  6  ration  education  programs,  from  any  other  moneys  due  the  school

  7  district,  provided, however, there shall be no interest penalty against

  8  such district assessed or collected by the state.

  9    § 3. Notwithstanding any contrary provision  of  law,  the  employment

 10  preparation  education  aid  payments  made to the Gloversville enlarged

 11  city school district in the 1991-92, 1992-93, and 1993-94 school  years,

 12  which  included excess payments of which the district has been notified,

 13  and for which a recovery must be made by the state through deduction  of

 14  future  aid  payments,  shall be reduced through aid deductions totaling

 15  the excess, by deducting one-sixth of the excess payments first, to  the

 16  extent  possible,  from each of the payments due for employment prepara-

 17  tion education programs to be operated  by  such  enlarged  city  school

 18  district  and  payable  in the months of October 1998, 1999, 2000, 2001,

 19  2002, and 2003, and then, if such scheduled aid deduction  shall  exceed

 20  such  designated  payment for employment preparation education programs,

 21  from any other moneys due the school district, provided, however,  there

 22  shall be no interest penalty against such district assessed or collected

 23  by the state.

 24    §  66. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws

 25  of 1995, amending the education law and certain other laws  relating  to

 26  state  aid  to  school  districts and the appropriation of funds for the

 27  support of government, as amended by section 66 of part A of chapter  60

 28  of the laws of 2000, are amended to read as follows:

                                        131                        12022-01-1

  1    (22)  sections  one  hundred twelve, one hundred thirteen, one hundred

  2  fourteen, one hundred fifteen and one hundred sixteen of this act  shall

  3  take effect on July 1, 1995; provided, however, that section one hundred

  4  thirteen of this act shall remain in full force and effect until July 1,

  5   2002  2003 at which time it shall be deemed repealed;

  6    (24)  sections one hundred eighteen through one hundred thirty of this

  7  act shall be deemed to have been in full force and effect on  and  after

  8  July 1, 1995; provided further, however, that the amendments made pursu-

  9  ant  to  section  one hundred nineteen of this act shall be deemed to be

 10  repealed on and after July 1,  2002  2003;

 11    § 67. Subdivision 1 of section 167 of chapter 169 of the laws of 1994,

 12  relating to certain provisions related to the 1994-95 state  operations,

 13  aid to localities, capital projects and debt service budgets, as amended

 14  by section 67 of part A of chapter 60 of the laws of 2000, is amended to

 15  read as follows:

 16    1.  Sections  one  through seventy of this act shall be deemed to have

 17  been in full force and effect as of April  1,  1994  provided,  however,

 18  that  sections  one,  two,  twenty-four,  twenty-five  and  twenty-seven

 19  through seventy of this act shall expire and be deemed repealed on March

 20  31, 2000; provided, however, that section twenty of this act shall apply

 21  only to hearings commenced prior to  September  1,  1994,  and  provided

 22  further  that  section twenty-six of this act shall expire and be deemed

 23  repealed on  March 31, 1997; and provided  further  that  sections  four

 24  through fourteen, sixteen, and eighteen, nineteen and twenty-one through

 25  twenty-one-a  of  this  act shall expire and be deemed repealed on March

 26  31, 1997; and provided further that sections three, fifteen,  seventeen,

 27  twenty,  twenty-two  and  twenty-three  of  this act shall expire and be

 28  deemed repealed on March 31,  2002  2003.

                                        132                        12022-01-1

  1    § 68. Subdivision b of section 2 of chapter 756 of the laws  of  1992,

  2  relating  to funding a program for work force education conducted by the

  3  consortium for worker education in New York city, as amended by  section

  4  68  of  part  A of chapter 60 of the laws of 2000, is amended to read as

  5  follows:

  6    b.  Reimbursement for programs approved in accordance with subdivision

  7  a of this section for the 1992-93 school  year  shall  not  exceed  61.4

  8  percent  of the lesser of such approvable costs per contact hour or five

  9  dollars and sixty cents per contact hour, reimbursement for the  1993-94

 10  school year shall not exceed 65.1 percent of the lesser of such approva-

 11  ble  costs  per contact hour or five dollars and fifty cents per contact

 12  hour, reimbursement for the 1994-95 school  year  shall  not  exceed  58

 13  percent  of the lesser of such approvable costs per contact hour or five

 14  dollars and seventy-five cents per contact hour, reimbursement  for  the

 15  1995-96  school year shall not exceed 61.2 percent of the lesser of such

 16  approvable costs per contact hour or five dollars and eighty  cents  per

 17  contact hour, reimbursement for the 1996-97 school year shall not exceed

 18  61.7  percent of the lesser of such approvable costs per contact hour or

 19  five dollars and ninety cents per contact hour,  reimbursement  for  the

 20  1997-98  school year shall not exceed 63.2 percent of the lesser of such

 21  approvable costs per contact hour or  six  dollars  and  ten  cents  per

 22  contact hour, reimbursement for the 1998-99 school year shall not exceed

 23  64.4  percent of the lesser of such approvable costs per contact hour or

 24  six dollars and five cents  per  contact  hour,  reimbursement  for  the

 25  1999-2000  school  year  shall  not exceed 64.4 percent of the lesser of

 26  such approvable costs per contact hour or six  dollars  and  twenty-five

 27  cents  per  contact  hour,   and  reimbursement for the 2000-2001 school

 28  year shall not exceed 65.1 percent of  the  lesser  of  such  approvable

                                        133                        12022-01-1

  1  costs  per  contact hour or six dollars and sixty cents per contact hour

  2  and reimbursement for the 2001-02 school  year  shall  not  exceed  64.5

  3  percent  of  the lesser of such approvable costs per contact hour or six

  4  dollars  and  ninety cents per contact hour where a contact hour repres-

  5  ents sixty minutes of  instruction  services  provided  to  an  eligible

  6  adult.   Notwithstanding any other provision of law to the contrary, for

  7  the 1992-1993 school year the  apportionment  calculated  for  the  city

  8  school  district  of  the city of New York pursuant to subdivision 24 of

  9  section 3602 of the education law shall be computed as if  such  contact

 10  hours provided by the consortium for worker education, not to exceed six

 11  hundred  thousand  hours  (600,000), were eligible for aid in accordance

 12  with the provisions of such subdivision 24 of section 3602 of the educa-

 13  tion law, whereas, for the 1993-94 school year such contact hours  shall

 14  not  exceed  five  hundred seventy-six thousand one hundred eighty-seven

 15  hours (576,187); whereas, for the 1994-95 school year such contact hours

 16  shall not exceed six hundred nineteen thousand five  hundred  thirty-one

 17  hours (619,531); whereas, for the 1995-96 school year such contact hours

 18  shall  not  exceed  five hundred eighty-one thousand one hundred thirty-

 19  eight hours (581,138); whereas, for the 1996-97 school year such contact

 20  hours shall not exceed one million ninety-eight  thousand  nine  hundred

 21  one hours (1,098,901); whereas, for the 1997-98 school year such contact

 22  hours  shall  not  exceed  one million five hundred fifty-eight thousand

 23  four hundred forty-one  (1,558,441)  hours;  whereas,  for  the  1998-99

 24  school year such contact hours shall not exceed one million nine hundred

 25  twenty-eight   thousand  twenty  (1,928,020)  hours;  whereas,  for  the

 26  1999-2000 school year such contact hours shall not  exceed  one  million

 27  nine  hundred ninety thousand forty-nine (1,990,049) hours; whereas, for

 28  the 2000-2001 school year  such  contact  hours  shall  not  exceed  one

                                        134                        12022-01-1

  1  million   nine  hundred  eighty-one  thousand  three  hundred  fifty-one

  2  (1,981,351) hours; whereas, for the 2001-02  school  year  such  contact

  3  hours shall not exceed one million nine hundred ten thousand one hundred

  4  twelve (1,910,112) hours.

  5    g.  The  provisions  of  this  subdivision  shall  not apply after the

  6  completion of payments for the 2001-2002  school  year.  Notwithstanding

  7  any  inconsistent provisions of law, the commissioner of education shall

  8  withhold a portion of employment preparation education aid  due  to  the

  9  city school district of the city of New York to support a portion of the

 10  costs of the work force education program. Such moneys shall be credited

 11  to  the elementary and secondary education fund-local assistance account

 12  and shall not exceed four million dollars ($4,000,000). In addition, the

 13  commissioner of education shall withhold a portion of employment  prepa-

 14  ration  education aid due to the city school district of the city of New

 15  York  not  to  exceed  four  million  five  hundred   thousand   dollars

 16  ($4,500,000) to support the cost of a work force education plan, subject

 17  to the approval of the commissioner of education.

 18    § 69. Expenditures of the state education department.  Notwithstanding

 19  any  other law, rule or regulation to the contrary, 2001-02 state fiscal

 20  year state operations appropriations made from the general  fund  and/or

 21  special  revenue  other funds to the state education department shall be

 22  available for the payment of prior year's liabilities in  such  fund  or

 23  funds  for  fringe benefits, indirect costs, telecommunications expenses

 24  and expenses for other centralized services. Payments for  prior  year's

 25  liabilities  in  such  fund or funds for expenses other than those indi-

 26  cated in this section may not exceed a  total  of  one  million  dollars

 27  ($1,000,000).

                                        135                        12022-01-1

  1    §  70.  Severability.  The provisions of this act shall be  severable,

  2  and if the application of any clause, sentence, paragraph,  subdivision,

  3  section  or  part  of this act to   any  person or circumstance shall be

  4  adjudged by any court of   competent jurisdiction to  be  invalid,  such

  5  judgment shall not necessarily affect, impair or invalidate the applica-

  6  tion of any such clause, sentence, paragraph, subdivision, section, part

  7  of  this  act  or  remainder  thereof, as the case may be, to any  other

  8  person or circumstance, but shall be confined in its  operation  to  the

  9  clause,  sentence,  paragraph,  subdivision,    section  or part thereof

 10  directly involved in the controversy in which such judgment  shall  have

 11  been rendered.

 12    §  71. It is the intention of the legislature that if any provision of

 13  section sixty-two of this act or any  rule  or  regulations  promulgated

 14  thereunder  shall be held by any court to be invalid in whole or in part

 15  or inapplicable to any person or situation, all remaining provisions  or

 16  parts  of section sixty-two of this act or of chapter 507 of the laws of

 17  1974 or remaining rules or regulations or parts thereof not  so  invali-

 18  dated  shall  nevertheless  remain fully effective as if the invalidated

 19  portion had not been enacted or promulgated, and the application of  any

 20  such  invalidated  portion  to  other  persons not similarly situated or

 21  other situations shall not be affected thereby.

 22    § 72. This act shall take effect on April 1, 2001, except that:

 23    (1) sections fifteen, twenty-four,  thirty-two,  and  thirty-three  of

 24  this act shall take effect July 1, 2001;

 25    (2)  sections sixteen, eighteen, twenty-seven, twenty-eight, and twen-

 26  ty-nine of this act shall take effect immediately, and shall  be  deemed

 27  to have been in full force and effect on and after January 15, 2001;

                                        136                        12022-01-1

  1    (3)  section twenty-one of this act shall take effect immediately, and

  2  shall be deemed to be in full force and effect for the determination  of

  3  approvable expenses for the purchase of school buses by the commissioner

  4  of education on or after such date;

  5    (4) section thirty-five of this act shall take effect immediately, and

  6  shall  be  deemed to have been in full force and effect on and after the

  7  effective date of section 37 of Part A of chapter  60  of  the  laws  of

  8  2000;

  9    (5)  section thirty-nine of this act shall take effect immediately and

 10  shall be deemed to have been in full force and effect on and  after  the

 11  effective  date  of  section  41  of part A of chapter 60 of the laws of

 12  2000;

 13    (6) section forty-eight of this act shall take effect immediately, and

 14  shall be deemed to have been in full force and effect on and  after  the

 15  effective date of section 71 of chapter 474 of the laws of 1996;

 16    (7)  section fifty-nine of this act shall take effect immediately, and

 17  shall be deemed to have been in full force and effect on and  after  the

 18  effective  date  of  section  70 of Part L of chapter 405 of the laws of

 19  1999;

 20    (8) section sixty of this act shall take effect immediately, and shall

 21  be deemed to have been in full force and effect on and after the  effec-

 22  tive date of section 76 of Part A of chapter 60 of the laws of 2000;

 23    (9)  section  sixty-one of this act shall take effect immediately, and

 24  shall be deemed to have been in full force and effect on and  after  the

 25  effective date of section 1 of Part B of chapter 88 of the laws of 2000;

 26    (10)  section  sixty-three  of this act shall take effect immediately,

 27  and shall be deemed to have been in full force and effect on  and  after

                                        137                        12022-01-1

  1  the  effective  date of section 5 of Part B of chapter 88 of the laws of

  2  2000;

  3    (11) section sixty-four of this act shall take effect immediately, and

  4  shall  be  deemed to have been in full force and effect on and after the

  5  effective date of section 8 of chapter 375 of the laws of 2000;

  6    (12) section sixty-five of this act shall take effect immediately, and

  7  shall be deemed to have been in full force and effect as of  the  effec-

  8  tive date of chapter 221 of the laws of 1998;

  9    (13)  section  sixty-six  of  this act shall be deemed to have been in

 10  full force and effect as of the effective date of section 140 of chapter

 11  82 of the laws of 1995;

 12    (14) section sixty-seven of this act shall be deemed to have  been  in

 13  full  force and effect on and after the effective date of section 101 of

 14  part A of chapter 436 of the laws of 1997; and

 15    (15) nothing contained in this act  shall  be  deemed  to  affect  the

 16  application,  qualification,  expiration,  reversion  or  repeal  of any

 17  provision of law amended by any section of this act and  the  provisions

 18  of  this  act shall be applied or qualified or shall expire or revert or

 19  be deemed repealed in the same manner, to the same  extent  and  on  the

 20  same date as the case may be as otherwise provided by law.

       REPEAL NOTES:

       Subdivision  6  of  section  3602 of the education law, proposed to be

     repealed by this act, relates to the apportionment to  school  districts

     for capital outlays and debt service for school building purposes;

       Subdivision 12 of section 3602 of the education law, as proposed to be

     repealed  by  this act, relates to the apportionment to school districts

     for comprehensive operating aid;

                                        138                        12022-01-1

       Subdivision 16 of section 3602 of the education law, as proposed to be

     repealed by this act, relates to the apportionment to  school  districts

     for tax adjustment aids;

       Subdivision 18 of section 3602 of the education law, as proposed to be

     repealed  by  this act, relates to the transition adjustment relating to

     the apportionment of certain aids to school districts;

       Subdivision 22 of section 3602 of the education law, as proposed to be

     repealed by this act, relates to the apportionment to  school  districts

     for programs for pupils of limited English proficiency;

       Subdivision 23 of section 3602 of the education law, as proposed to be

     repealed  by  this act, relates to the apportionment to school districts

     for gifted and talented programs;

       Subdivision 26-a of section 3602 of the education law, as proposed  to

     be  repealed  by  this  act,  relates  to  the  apportionment  to school

     districts for aid for instructional computer technology expenses;

       Subdivision 32 of section 3602 of the education law, as proposed to be

     repealed by this act, relates to the apportionment to  school  districts

     for educationally related support services;

       Subdivision 38 of section 3602 of the education law, as proposed to be

     repealed  by  this act, relates to the apportionment to school districts

     for operating standards aid;

       Paragraph 5 of subdivision 19 of section 3602 of the education law, as

     proposed to be repealed by this act, relates  to  the  apportionment  to

     school  districts  for high cost excess cost aid for services to certain

     pupils with handicapping conditions;

       Paragraph 6 of subdivision 19 of section 3602 of the education law, as

     proposed to be repealed by this act, relates  to  the  apportionment  to

     school districts for public excess cost aid;

                                        139                        12022-01-1

       Paragraph 7 of subdivision 19 of section 3602 of the education law, as

     proposed  to  be  repealed  by this act, relates to the apportionment to

     school districts for declassification support services;

       Paragraph 8 of subdivision 19 of section 3602 of the education law, as

     proposed  to  be repealed by this act, relates to the apportionment paid

     pursuant to section 3609-b of the education law;

       Section 3609-b of the education law, as proposed  to  be  repealed  by

     this  act,  relates  to  the  payment  schedule for the apportionment to

     school districts for public and private excess cost aid; and

       Subdivision 3 of section 4405 of the education  law,  proposed  to  be

     repealed  by this act, relates to computing state financial responsibil-

     ity for operating expenses for certain children with handicapping condi-

     tions.

  1                                   PART B

  2    Section 1. Section 140 of the education law is REPEALED.

  3    § 2. Sections 232, 233, 233-a, 234, 235 and subdivisions 4  and  5  of

  4  section 236 of the education law are REPEALED.

  5    § 3. Sections 245, 246, 247, 248, 249, 250, 251 and 252 of the  educa-

  6  tion law are REPEALED.

  7    § 4. Sections 271, 272,  273  and  273-a  of  the  education  law  are

  8  REPEALED.

  9    § 5. Sections 284 and 285 of the education law are REPEALED.

 10    §  6.  The  arts  and  cultural affairs law is amended by adding a new

 11  title R to read as follows:

 12                                   TITLE R

 13                        OFFICE OF CULTURAL RESOURCES

                                        140                        12022-01-1

  1  Article 40. General provisions (§§ 40.01 - 40.06)

  2          41. State museum (§§ 41.01 - 41.07)

  3          42. State library (§§ 42.01 - 42.06)

  4          43.  Library  aid  and  aid  to public broadcasting stations (§§

  5               43.01 - 43.07)

  6                                 ARTICLE 40

  7                             GENERAL PROVISIONS

  8  Section 40.01. Definitions.

  9          40.02. Office of cultural resources; establishment.

 10          40.03. Board of trustees.

 11          40.04. Preliminary powers of the board.

 12          40.05. Officers and staff.

 13          40.06. Reporting.

 14    § 40.01. Definitions.  As used in this article,  the  following  terms

 15  shall have the following meanings unless otherwise specified:

 16    1.  "Office"  shall  mean  the  New  York  state  office  of  cultural

 17  resources.

 18    2. "Board" shall mean the board of trustees of the office of  cultural

 19  resources.

 20    3.  "Executive  director"  shall  mean  the  executive director of the

 21  office of cultural resources.

 22    § 40.02. Office of cultural resources; establishment.  The  office  of

 23  cultural  resources  is hereby established within the executive  depart-

 24  ment  to  have  and    exercise   the   functions,   powers   and duties

 25  provided   in   this   title,   and   any other provision  of  law.  The

 26  purposes of the office shall include, but not be limited to, the follow-

 27  ing:

                                        141                        12022-01-1

  1    1.  To provide leadership  for  development  of  the  state's cultural

  2  resources in partnership with local governments, not-for-profit cultural

  3  organizations, and the private sector;

  4    2.  Cooperate  with  and  assist  other state and federal departments,

  5  boards, commissions, agencies, public benefit  corporations  and  public

  6  authorities  in  the  development  of  policies  and programs which will

  7  encourage promotion, development or preservation of the state's cultural

  8  resources;

  9    3. Promote cultural tourism to strengthen and  diversify  the  state's

 10  economy and to reflect the state's cultural diversity;

 11    4. Use and encourage the use of most current and appropriate technolo-

 12  gy  to preserve   cultural resources and to facilitate the understanding

 13  and appreciation of such resources by the general public;

 14    5. Accept gifts, contributions and bequests of funds from individuals,

 15  foundations, corporations and other organizations and  institutions  for

 16  the  purpose  of enhancing the efforts for preservation and promotion of

 17  cultural resources; and

 18    6. Administer programs  of  technical  and  financial  aid  for  local

 19  governments  and  not-for-profit  organizations  to  encourage  cultural

 20  development programs and events.

 21    § 40.03. Board of trustees.  1. The office shall be headed by a  board

 22  of  trustees which shall consist of nine members. Each such member shall

 23  be appointed for a term of five years by the governor, with  the  advice

 24  and  consent  of the senate.  Vacancies in the board occurring otherwise

 25  than  by expiration of a term, shall be filled for the unexpired term in

 26  the same manner as original appointment. The trustees shall be  selected

 27  after giving due consideration to the interest, experience and knowledge

 28  in  the state's cultural resources demonstrated by potential candidates.

                                        142                        12022-01-1

  1  In making such appointments, due consideration shall also  be  given  to

  2  the  recommendations  of  civic,  educational, cultural and professional

  3  organizations and associations concerned with or  engaged  in  preserva-

  4  tion, enhancement and promotion of cultural resources.

  5    2.  Notwithstanding any inconsistent provision of any general, special

  6  or local law, ordinance, resolution or charter, no  officer,  member  or

  7  employee  of the state or of any public corporation shall forfeit his or

  8  her  office or employment by reason of his or her acceptance of appoint-

  9  ment as a member of the board, nor shall service as such board member be

 10  deemed incompatible or in conflict with such office or employment.

 11    3. The governor shall designate a chair and a vice-chair for the board

 12  from among the members to serve at the pleasure of the governor.

 13    4.  The board shall meet as frequently as it may deem necessary and at

 14  least four times in each year. The board may approve, and from  time  to

 15  time may amend, by-laws in relation to its meetings and the transactions

 16  of its business.

 17    5.  The  members  of the board shall receive no compensation for their

 18  services, but shall be reimbursed for the actual and necessary  expenses

 19  incurred by them in the performance of their duties.

 20    6. The board shall promulgate rules and regulations, with the approval

 21  of the director of the budget, as necessary to provide appropriate over-

 22  sight of the office's programs.

 23    7. The board shall appoint the executive director of the office as its

 24  chief  executive  officer,  who shall hold office at the pleasure of the

 25  board.  The board shall establish salary and other remunerations of  the

 26  executive director pursuant to law.

 27    §  40.04. Preliminary powers of the board.  Notwithstanding any incon-

 28  sistent provision of law to the contrary, the board is hereby authorized

                                        143                        12022-01-1

  1  to exercise the powers of such board if sixty days after  the  effective

  2  date  of  this article fewer than nine members but at least four members

  3  have been appointed to the board, then such board is further  authorized

  4  to  take any action which the board is otherwise authorized to take upon

  5  a favorable vote of a majority of the board members present at the meet-

  6  ing at which such action is taken. The provisions of this section  shall

  7  expire  and  be deemed repealed upon the appointment of all nine members

  8  of the board.

  9    § 40.05. Officers and staff.  1. The executive director may  establish

 10  divisions  or bureaus, or may consolidate divisions and bureaus as he or

 11  she may deem necessary or appropriate to carry out the functions of  the

 12  office.  Subject  to  the provisions of this title and the civil service

 13  law and any other applicable law,  and  rules  and  regulations  adopted

 14  pursuant  thereto,  the  executive director may appoint such other offi-

 15  cers, employees, agents and consultants as may be  necessary,  prescribe

 16  their  duties,  fix  their compensation and provide for payment of their

 17  reasonable  expenses, all within amounts available therefor by appropri-

 18  ation.  The  executive  director may transfer officers or employees from

 19  their positions to other positions in the office, or abolish or  consol-

 20  idate positions.

 21    2.  The executive director may enter into contracts, within the amount

 22  available by appropriation therefor,  with  individuals,  organizations,

 23  and  institutions for services furthering the objectives of the office's

 24  programs.

 25    3. The executive director may request from any  department,  division,

 26  office,  commission  or  other  agency  of  the  state, and the same are

 27  authorized to provide, such assistance, services, data and resources  as

                                        144                        12022-01-1

  1  may  be  necessary  for  the office in carrying out the purposes of this

  2  title.

  3    § 40.06. Reporting.  The board shall issue a report  to  the  governor

  4  and the legislature on or before September thirtieth of each year on the

  5  condition  of  the cultural resources in the state during the year imme-

  6  diately preceding the date of such report. Such  report  shall  include,

  7  but not be limited to the following:

  8    1.  An  overview  of  the  cultural assets in the state, the degree to

  9  which they are utilized as indicated by  such  measures  as  attendance,

 10  memberships, private contribution, and ticket sales;

 11    2. An evaluation of the office's activities as to their  contributions

 12  to the preservation and promotion of cultural resources; and

 13    3. Comparison of New York's cultural development programs with similar

 14  programs in other states.

 15                                 ARTICLE 41

 16                                STATE MUSEUM

 17  Section 41.01. Authorization.

 18          41.02. Collections.

 19          41.03. Cultural resource survey.

 20          41.04. Native American collection.

 21          41.05. Properties of the state museum.

 22          41.06. State science service.

 23          41.07. New York state biodiversity research institute.

 24    §  41.01.  Authorization. The office is hereby authorized and directed

 25  to administer the state museum and all  related  programs,  collections,

 26  functions  and exhibits. The board shall appoint a director of the state

 27  museum.

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  1    § 41.02. Collections. 1. All scientific  specimens  and   collections,

  2  works  of  art, objects of historic interest and similar property appro-

  3  priate to a general museum, if owned by the  state  and  not  placed  in

  4  other custody by a specific law, shall constitute the collections of the

  5  state    museum.  The  state  museum  shall  be  the  custodian  of  the

  6  collections, shall perform standard curatorial, research and educational

  7  activities.

  8    2. Any scientific collection made by a  member  of  the  museum  staff

  9  during  his  or her term of office shall, unless otherwise authorized by

 10  resolution of the board, belong to the state and form part of the  state

 11  museum.

 12    §  41.03. Cultural resource survey.  1. The state of New York, through

 13  its legislative authority accepts the provisions of section one  hundred

 14  twenty  of the federal-aid highway act of nineteen hundred fifty-six (70

 15  Stat. 374) relating to the salvage of archaeological and paleontological

 16  objects, including ruins, sites, Native American burial grounds,  build-

 17  ings,  artifacts,  fossils or other objects of antiquity having national

 18  significance from an historical or scientific standpoint,  and  empowers

 19  and  directs  the executive director to make agreements with appropriate

 20  state departments or agencies and such agency or agencies as the federal

 21  government may designate to carry out the purposes of such provision  of

 22  law.

 23    2. Except as otherwise provided in subdivision one of this section, no

 24  person  shall  appropriate,  excavate,  injure  or destroy any object of

 25  archaeological and paleontological interest, situated on or under  lands

 26  owned  by  the  state of New York, without the written permission of the

 27  executive director. A violation of this  provision  shall  constitute  a

 28  misdemeanor.  The  discovery of such objects shall be forthwith reported

                                        146                        12022-01-1

  1  to the executive director or an agency  having  jurisdiction  over  such

  2  lands.

  3    3. Permits for the examination, excavation or gathering of archaeolog-

  4  ical  and  paleontological objects upon the lands under their respective

  5  jurisdictions may be granted by the heads of state departments or  other

  6  state  agencies  to persons authorized by the executive director for the

  7  purposes of the state museum and state science service, with a  view  to

  8  the  preservation  of  any such objects worthy of permanent preservation

  9  and, in all cases, to the acquisition  and  dissemination  of  knowledge

 10  relating thereto.

 11    § 41.04. Native American collection.  There shall be a Native American

 12  section  of  the  state museum consisting of as complete a collection as

 13  practicable of the historical, ethnographic and other records and relics

 14  of the Native Americans of the state of New York,  including  implements

 15  or other articles pertaining to their domestic life, economic, legal and

 16  political systems, warfare, religion and other rites or customs.

 17    § 41.05. Properties of the state museum.  1. As used in this section:

 18    (a) The term "museum" shall mean the New York state museum.

 19    (b)  The  term  "deaccession"  shall  mean  the  permanent  removal or

 20  disposal of an object from the collection of the museum by virtue of its

 21  sale, exchange, donation or transfer by any means to any person.

 22    (c)  The  term  "person"  shall  mean any natural person, partnership,

 23  corporation, company, trust association or other entity, however  organ-

 24  ized.

 25    (d) The term "property" means any inanimate object, document or tangi-

 26  ble  object under the office's care which has intrinsic historic, artis-

 27  tic, scientific, or cultural value.

                                        147                        12022-01-1

  1    (e) The term "claimant" means a person who asserts ownership  or  some

  2  other legal right to undocumented property held by the museum.

  3    (f)  The  term  "loan" means a deposit of property with the museum not

  4  accompanied by a transfer to the museum of title to the property.

  5    (g) The term "lender" means a person whose name appears on the records

  6  of the museum as the person legally  entitled  to,  or  claiming  to  be

  7  legally  entitled  to,  property held by the museum or, if deceased, the

  8  legal heirs of such person.

  9    (h) The term "lender's address" means the most recent address for  the

 10  lender shown on the museum's records pertaining to the property on loan,

 11  or  if the lender is deceased, the last known address of the legal heirs

 12  of such lender.

 13    (i) The term "permanent loan" means a loan of property to  the  museum

 14  for an unspecified period.

 15    (j)  The term "undocumented property" means property in the possession

 16  of  the museum for which the museum cannot determine the owner by refer-

 17  ence to its records.

 18    (k)  The  term  "conservation  measures"  means  any  actions taken to

 19  preserve or stabilize a property including, but not limited  to,  proper

 20  storage support, cleaning, proper lighting, and restoration.

 21    2. The  deaccessioning  of  property by the museum must be  consistent

 22  with the mission of the museum.

 23    3. Prior to the acquisition of property  by  gift,  the  museum  shall

 24  provide  the  donor  with  a  written  copy of its mission statement and

 25  collections policy, which shall include policies and procedures  of  the

 26  museum relating to deaccessioning.

 27    4. If the museum has the knowledge of a planned bequest of any proper-

 28  ty  prior  to  the  death  of the testator, the museum shall provide the

                                        148                        12022-01-1

  1  testator with a written copy of its mission  statement  and  collections

  2  policy, which shall include policies and procedures of the museum relat-

  3  ing to deaccessioning.

  4    5.  (a)  Proceeds derived from the deaccessioning of any property from

  5  the collection of the museum shall be used only for the  acquisition  of

  6  property for the collection or for the preservation, protection and care

  7  of  the  collection  and  shall  not be used to defray ongoing operating

  8  expenses of the museum.

  9    (b) The state comptroller shall establish a fund,  separate  from  the

 10  general fund, for the proceeds of deaccessioning.

 11    6. (a) Notice given by the museum under this section must be mailed to

 12  the  lender's  last  known  address  by  certified  mail, return receipt

 13  requested.  Service by mail is complete if  the  museum  receives  proof

 14  that  the  notice  was  received  not more than thirty days after it was

 15  mailed; provided, however, notice may be given  by  publication  if  the

 16  museum does not:

 17    (i) know the identity of the lender;

 18    (ii) know the address of the lender; or

 19    (iii)  receive  proof  that  the  notice mailed under this section was

 20  received within thirty days of mailing. Notice by  publication  must  be

 21  given at least once a week for three consecutive weeks in a newspaper of

 22  general circulation in:

 23    (1) the county in which the property is held by the museum; and

 24    (2) the county of the lender's last address, if known.

 25    (b) The date of notice under this subdivision shall be the date of the

 26  third published notice. In addition to any other information that may be

 27  required  or  seem appropriate, any notice given under this section must

 28  contain the following:

                                        149                        12022-01-1

  1    (i) the name of the lender or claimant, if known;

  2    (ii) the last address of the lender or claimant, if known;

  3    (iii) a brief description of the property on loan to the museum refer-

  4  enced in the notice;

  5    (iv) the date of the loan, if known, or the approximate date of acqui-

  6  sition of the property;

  7    (v) the name and address of the museum; and

  8    (vi) the name, address, and telephone  number  of  the  person  to  be

  9  contacted regarding the property.

 10    7.  Notwithstanding any other provisions of law regarding abandoned or

 11  lost property, the museum may, beginning five years from  the  date  the

 12  lender last contacted the museum, clarify title to property on permanent

 13  loan  or  loaned  for  a  specified term that has expired. Proof of such

 14  contact shall include previously sent restricted letters or loan  forms,

 15  returned  envelopes,  inventories  and  other  documentary evidence. The

 16  procedure for clarifying title shall be as follows:

 17    (a) The museum must give notice by mail to the lender that  it  wishes

 18  to clarify ownership rights in the property.

 19    (b)  In  addition  to  the information described in subdivision six of

 20  this section, the notice shall be entitled "Notice of  Termination"  and

 21  must include a statement containing substantially the following informa-

 22  tion:  "The  records of the New York State Museum indicate that you have

 23  property on loan at (name of facility). The museum is seeking to  deter-

 24  mine  whether   you wish (i) that the museum return the property to you,

 25  (ii) that the property remain on loan to the museum  subject  to  annual

 26  renewal  (if  the museum wishes  that the property remain on  loan),  or

 27  (iii)  that the museum retain the property  permanently  as  its  owner.

 28  Please  contact  (name  of contact) in writing within one hundred twenty

                                        150                        12022-01-1

  1  days, in order to advise the museum as to which of  the  above  alterna-

  2  tives you wish to follow."

  3    (c) (i) If, no later than one hundred twenty days following receipt of

  4  the   notice  described in paragraph (b) of this subdivision, the lender

  5  does not respond to the notice of  termination  by  submitting  a  writ-

  6  ten    claim  to  the property on loan with verifying documentation, the

  7  office shall send a second notice to the lender containing the following

  8  information:  "On (date of first notice), the New York State Museum sent

  9  you a notice concerning property that, according  to  our  records,  has

 10  been  loaned to the State Museum. You have not responded to that notice,

 11  a copy of which is enclosed, and the museum will commence proceedings to

 12  acquire title to the property if you do not contact (name  of  contact),

 13  in  writing  within  one  hundred  twenty  days of receiving this second

 14  notice."

 15    (ii) If the lender fails to respond to the second  notice  within  one

 16  hundred  twenty  days of receipt, at the request of the executive direc-

 17  tor, the attorney general may make an application to the  supreme  court

 18  pursuant to  article  thirty  of the civil practice law and rules for  a

 19  declaratory judgment to determine the museum's right to  such  property.

 20  In a case in which there is no evidence that the notices previously sent

 21  by the museum were received by the lender, upon application, the supreme

 22  court   shall specify the method by which service shall be made upon the

 23  lender.

 24    8. Notwithstanding any other provision of law regarding  abandoned  or

 25  lost property the museum may acquire title to undocumented property held

 26  by the museum for at least five years as follows:

 27    (a)  The  museum  must give notice by publication that it is asserting

 28  title to the undocumented property.

                                        151                        12022-01-1

  1    (b) In addition to the information described in this subdivision,  the

  2  notice shall be entitled "Notice of Intent to Acquire Title to Property"

  3  and  must  include  a  statement  containing substantially the following

  4  information: "The records of the New York State Museum fail to  indicate

  5  the  owner  of  record of certain property in its possession. The museum

  6  hereby asserts its intent to acquire title to  the  following  property:

  7  (general  description of property). If you claim ownership of this prop-

  8  erty, you must submit written proof of ownership to the museum and  make

  9  arrangements  to  collect  the property. If you fail to do so within one

 10  hundred eighty days, the museum will  commence  proceedings  to  acquire

 11  title  to  the property. If you claim an interest in the property but do

 12  not possess written proof of such interest, you should submit your  name

 13  and  address and a written statement of your claim to (name of contact),

 14  within one hundred eighty days, in order to receive notice of any  legal

 15  proceedings  concerning  the  property.  If  you  wish to commence legal

 16  proceedings to claim the property, you should consult your attorney." If

 17  after one hundred eighty days following the last date of publication  of

 18  such  notice  no  claimant  has  responded thereto by submitting written

 19  proof of ownership of the property to the  museum,  or  if  there  is  a

 20  dispute between the museum and any claimant as to ownership of the prop-

 21  erty,  upon  the request of the executive director, the attorney general

 22  may make an application to the supreme court pursuant to article  thirty

 23  of the civil practice law and rules for a declaratory judgment to deter-

 24  mine the museum's rights in the property.

 25    9.  A  copy  of  all notices required by subdivision seven or eight of

 26  this section shall be sent, by certified mail, return receipt requested,

 27  to the International Foundation for Art Research, or any successor foun-

 28  dation or agency having similar purposes, on or before the date on which

                                        152                        12022-01-1

  1  such notices are mailed or first published pursuant to the  requirements

  2  of this section.

  3    10.  Any  person who purchases or otherwise acquires property from the

  4  museum acquires good title to such property if the museum  has  acquired

  5  title in accordance with this section.

  6    11.  The  provisions  of  subdivisions seven and eight of this section

  7  shall not apply to any property that has been reported as  stolen  to  a

  8  law enforcement agency or to the Art Theft Archives of the International

  9  Foundation  for  Art  Research,  or  any  successor foundation or agency

 10  having similar purposes, no later than one year following the  theft  or

 11  discovery of the theft.

 12    12. The museum shall have the following duty to lenders:

 13    (a)  When  the  museum accepts a loan of property, it shall inform the

 14  lender in writing of the provisions of this section.

 15    (b) The museum shall give a lender, at the  lender's  address,  prompt

 16  written  notice  by mail of any known injury to, or loss of, property on

 17  loan or of the need to apply conservation measures.  Such  notice  shall

 18  advise  the  lender  of  his or her right, in lieu of the application of

 19  such conservation measures, to terminate the loan  and,  no  later  than

 20  thirty days after having received such notice, either retrieve the prop-

 21  erty or arrange for its isolation and retrieval. The museum shall not be

 22  required to publish notice of injury or loss to any undocumented proper-

 23  ty.

 24    13.  The  owner  of  property  loaned to the museum is responsible for

 25  promptly notifying the museum, in writing, of any change of  address  or

 26  change in the ownership of the property.

 27    14.  (a) Unless there is a written loan agreement to the contrary, the

 28  museum may apply conservation measures to property on loan to the museum

                                        153                        12022-01-1

  1  without giving formal notice or first obtaining the lender's  permission

  2  if immediate action is required to protect the property on loan or other

  3  property  in  the  custody of the museum or if the property on loan is a

  4  hazard  to  the  health  and  safety  of the public or the museum staff,

  5  provided that:

  6    (i) the museum is unable to reach the  lender  at  the  lender's  last

  7  known  address or telephone number before the time the museum determines

  8  action is necessary; or

  9    (ii) the lender either (1) does not respond to a request  for  permis-

 10  sion  to apply conservation measures made pursuant to subdivision twelve

 11  of this section within three days of receiving the request or  will  not

 12  agree to the conservation measures the museum recommends or (2) fails to

 13  terminate  the  loan and either retrieve the property or arrange for its

 14  isolation and retrieval within thirty days of receiving the request.  If

 15  immediate conservation measures are necessary to protect the property or

 16  to  protect  the health or safety of the public or the museum staff, the

 17  conditions set forth in subparagraphs (i) and  (ii)  of  this  paragraph

 18  shall not apply.

 19    (b)  Unless provided otherwise in an agreement with the lender, if the

 20  museum applies conservation measures to property under paragraph (a)  of

 21  this  subdivision, and provided that the measures were not required as a

 22  result of the museum's own action or inaction, the museum shall  acquire

 23  a  lien on the property in the amount of the costs incurred by the muse-

 24  um, including, but not limited to the cost of labor and  materials,  and

 25  shall not be liable for injury to or loss of the property, provided that

 26  the museum:

 27    (i)  had a reasonable belief at the time the action was taken that the

 28  action was necessary to protect the property on loan or  other  property

                                        154                        12022-01-1

  1  in  the custody of the museum, or that the property on loan was a hazard

  2  to the health and safety of the public or the museum staff; and

  3    (ii)  exercised  reasonable  care  in  the  choice  and application of

  4  conservation measures.

  5    15. The museum shall maintain or continue to maintain, as the case may

  6  be and to the extent such information is available, a record of acquisi-

  7  tion, whether by purchase, bequest, gift, loan or otherwise, of property

  8  for display or collection and of  deaccessioning  or  loan  of  property

  9  currently  held  or  thereafter  acquired for display or collection. Any

 10  such record shall:

 11    (a) state the name, address, and telephone number of the  person  from

 12  whom  such  property  was  acquired, or to whom such property was trans-

 13  ferred by deaccessioning or loan, and a description  of  such  property,

 14  its location, if known, and the terms of the acquisition or deaccession-

 15  ing  or loan, including any restrictions as to its use or further dispo-

 16  sition, and any other material facts about the terms and  conditions  of

 17  the transaction; and

 18    (b)  include  a  copy  of  any  document of conveyance relating to the

 19  acquisition or deaccessioning or loan of such property and  all  notices

 20  and other documents prepared or received by the museum.

 21    16. Notwithstanding the provisions of the civil practice law and rules

 22  or  any  other  law, except for laws governing actions to recover stolen

 23  property:

 24    (a) No action against the museum for damages arising out of injury  to

 25  or  loss  of  property loaned to the museum shall be commenced more than

 26  three years from the date the museum gives the lender or claimant notice

 27  of the injury or loss under this section.

                                        155                        12022-01-1

  1    (b) No  action  against  the  museum  to  recover  property  shall  be

  2  commenced more than three years from the date the museum gives notice of

  3  its intent to terminate the loan or notice of intent to acquire title to

  4  undocumented property.

  5    17. The museum, at all times, shall maintain an inventory of the prop-

  6  erties  within  its  custody  which  would include a description of such

  7  property, ownership information and, in cases of loans, the  nature  and

  8  status of such loan.

  9    §  41.06.  State  science  service. 1. Science service. There shall be

 10  maintained in the office a science service which shall be known  as  the

 11  state  science service and the state geologist, paleontologist, botanist

 12  and entomologist shall constitute its staff  together  with  such  other

 13  scientists  as  the  board  may  employ.  This  service is empowered and

 14  directed to make available its services to all the  departments  of  the

 15  state,  and  the residents of the state under such rules and regulations

 16  as the board of trustees may prescribe and is  empowered  to  engage  in

 17  such  scientific  research  as directed by law or by the board and shall

 18  cooperate with scientific units or agencies of other states, the federal

 19  government, educational institutions  and  industry  in  the  discovery,

 20  analysis  and  dissemination  of  scientific  information. The executive

 21  director or his or her designee shall also be the director and  head  of

 22  the  state science service and the staff of the service shall be members

 23  of the staff of the office.

 24    2. New York state biological survey. (a) The New York state biological

 25  survey is hereby established in the New York state science service with-

 26  in the state museum to  inventory,  research,  analyze  and  disseminate

 27  information  about  all  the  biota  of  New York. The biological survey

 28  shall:

                                        156                        12022-01-1

  1    (i) Develop and maintain an inventory of the biological  resources  of

  2  New  York  state,  with  special emphasis on identifying those resources

  3  that are important to  biological  diversity,  have  real  or  potential

  4  economic  significance,  or  have  particular scientific, systematic, or

  5  environmental importance;

  6    (ii)  Conduct  research on and advance the knowledge of the biological

  7  and ecological characteristics and processes that constitute  or  affect

  8  New York state's environment;

  9    (iii)  Interpret  and  publish  the  results  of  research on New York

 10  state's biological resources, thereby making  information  available  to

 11  citizens,  teachers,  industry,  and government for educational purposes

 12  and for use in decision making;

 13    (iv) Insure the preservation and appropriate expansion of the  state's

 14  collection  of  scientific  specimens and artifacts, conduct research on

 15  these collections, and make specimens and data available for  biological

 16  resource studies, ecosystem analyses, and other research projects; and

 17    (v)  Cooperate  with the department of environmental conservation, the

 18  office of parks, recreation and historic preservation, and  other  state

 19  and  federal  agencies,  private  organizations and institutions, corpo-

 20  rations, and individuals interested in biological resources.

 21    (b) The survey shall not be authorized to enter  any  privately  owned

 22  lands without the written consent of the landowner, lessee, or person in

 23  control.  The  survey  shall be authorized to enter into agreements with

 24  landowners to enter private lands on such terms as may be acceptable.

 25    § 41.07. New York state biodiversity research institute. 1.  New  York

 26  state  biodiversity institute; creation. The New York state biodiversity

 27  research institute is hereby created within the New  York  state  museum

                                        157                        12022-01-1

  1  within  the  office of cultural resources. The purposes of the institute

  2  shall include:

  3    (a)  advising the governor, governmental agencies, and the legislature

  4  on matters relating to biodiversity in New York state;

  5    (b) fostering, pursuing and sponsoring  collaborative  biological  and

  6  ecological research;

  7    (c) increasing understanding of biodiversity research and conservation

  8  needs  in  New  York  by establishing and reporting on what is known and

  9  what is not known about the biological diversity of the state;

 10    (d) identifying priority needs for biodiversity research and inventory

 11  work within New York that currently are not  receiving  adequate  atten-

 12  tion,  and identifying public or private entities that are best situated

 13  to address such needs, thereby leading to better coordination of  biodi-

 14  versity research efforts in the state;

 15    (e)  promoting  awareness  of existing and new sources of biodiversity

 16  information and biodiversity expertise among  planners,  policy  makers,

 17  and resource managers;

 18    (f) educating elected officials, governmental agencies, and the gener-

 19  al public on biodiversity issues through such means as it may determine;

 20    (g) organizing and sponsoring meetings on biodiversity topics;

 21    (h)  encouraging the establishment of networks of collaborating scien-

 22  tists engaged in related aspects of biodiversity research;

 23    (i) raising sensitivity to biodiversity concerns among state and local

 24  government agencies, and serving as a  forum  for  enhanced  interagency

 25  information sharing and cooperation;

 26    (j)  recommending  priority  activities  for funding through the state

 27  land biodiversity stewardship account, created pursuant to section nine-

 28  ty-seven-oo of the state finance law;

                                        158                        12022-01-1

  1    (k) assisting the  commissioners  of  environmental  conservation  and

  2  parks,  recreation  and  historic  preservation  in  conducting reviews,

  3  pursuant to section 3-0302 of the  environmental  conservation  law  and

  4  subdivision  eighteen  of  section  3.09  of  the  parks, recreation and

  5  historic  preservation  law,  of  lands currently in state ownership, to

  6  identify lands and waters that harbor plants,  animals,  and  ecological

  7  communities that are rare in New York state;

  8    (l) assisting the commissioner of parks, recreation and historic pres-

  9  ervation  in  identifying  ecologically  significant  sites within state

 10  parks and historic sites that are candidates for park preserve  or  park

 11  preservation  area  designation pursuant to article twenty of the parks,

 12  recreation and historic preservation law; and

 13    (m) assisting the commissioner of environmental conservation in  iden-

 14  tifying  lands of ecological significance, currently in state ownership,

 15  to recommend to the governor and the legislature for dedication  to  the

 16  state  nature  and  historical preserve trust pursuant to article forty-

 17  five of the environmental conservation law.

 18    2. Definitions. When used in this section, the following  terms  shall

 19  mean:

 20    (a)  "Biodiversity"  or "biological diversity" means the total variety

 21  of living organisms found in the state, and the natural  processes  that

 22  support them; and

 23    (b)  "Institute"  shall  mean the New York state biodiversity research

 24  institute created pursuant to subdivision one of this section.

 25    3. Research programs. The institute shall foster, pursue  and  sponsor

 26  original systematic and ecological research, field studies, and invento-

 27  ries of biological collections that are designed to:

                                        159                        12022-01-1

  1    (a) increase the information base pertaining to plant, animal, biolog-

  2  ical  community,  and  ecosystem  occurrences  in  the  state, including

  3  descriptions, collections and catalogs of fauna  and  flora,  plant  and

  4  animal  life-cycle  requirements  and  characteristics,  the dynamics of

  5  ecological  processes,  and  the  status  of  rare  plants, animals, and

  6  biological communities;

  7    (b) detect, document, and interpret patterns and changes in the  flora

  8  and  fauna of the state, including expansions, losses, and introductions

  9  of species;

 10    (c) explore and foster the  gathering  of  data  in  poorly  known  or

 11  vulnerable areas of the state; and

 12    (d)  investigate  techniques designed to conserve, protect, and manage

 13  biodiversity.

 14    4. Education and information transfer programs.  The  institute  shall

 15  foster  the collection, transfer, and application of biodiversity infor-

 16  mation in the state by:

 17    (a) fostering access, compatibility,  interchange,  and  synthesis  of

 18  data among biological information systems maintained by public entities,

 19  academic and research institutions, and private organizations;

 20    (b)  employing  advanced  technology to coordinate for ease of use the

 21  scattered biological collection resources of the state;

 22    (c) promoting  adherence  to  accepted  standards  for    biodiversity

 23  research, including quality control for the collection of voucher speci-

 24  mens and data, and protocols for responsible collection policies; and

 25    (d) supporting the preparation and publication of interpretative works

 26  that draw upon biological collection resources.

 27    5.  Biennial  reports. The institute shall prepare and submit a report

 28  on or before January first, two thousand one and every two years  there-

                                        160                        12022-01-1

  1  after  to  the  governor,  the  board  of  trustees, and the legislature

  2  describing programs undertaken or sponsored by the institute, the status

  3  of knowledge regarding the  state's  biodiversity,  and  research  needs

  4  related thereto.

  5    6.  Executive committee. The institute shall be guided by an executive

  6  committee. Members of the committee shall be  from  varying  backgrounds

  7  with members selected from the stewardship community, from the scientif-

  8  ic  community,  as well as from government service. Such committee shall

  9  consist of seventeen  members  including  the  executive  director,  the

 10  commissioner  of  environmental conservation, the commissioner of parks,

 11  recreation and  historic  preservation,  the  chancellor  of  the  state

 12  university  of  New  York  or  their  designees,  seven at large members

 13  appointed by the governor, one of whom shall be chairperson, two members

 14  appointed by the temporary president of the senate, one member appointed

 15  by the minority leader of the  senate,  two  members  appointed  by  the

 16  speaker  of the assembly and one member appointed by the minority leader

 17  of the assembly. Appointed members shall  serve  for  a  term  of  three

 18  years,  provided  that  such  members  may be reappointed. The executive

 19  committee shall:

 20    (a) adopt policies, procedures, and criteria  governing  the  programs

 21  and operations of the institute;

 22    (b)  recommend  to the governor and legislature appropriate actions to

 23  identify, manage and conserve exemplary occurrences of common ecological

 24  communities on state-owned lands. An "exemplary occurrence of  a  common

 25  ecological  community" shall mean a representative, high quality example

 26  of a given ecological community type,  characterized  by  a  distinctive

 27  assemblage of interacting plant and animal populations;

                                        161                        12022-01-1

  1    (c)  develop  and  implement  the  research, education and information

  2  transfer programs of the institute;

  3    (d) identify and rate proposals for biodiversity research;

  4    (e) identify and rate proposals for biodiversity stewardship;

  5    (f)  submit to the director of the budget, and the chairpersons of the

  6  senate finance committee and the assembly ways and means committee on or

  7  before August first in each year, a budget request for  the  expenditure

  8  of  funds available from the biodiversity stewardship and research fund,

  9  for the purposes established by section  ninety-seven-oo  of  the  state

 10  finance law; and

 11    (g)  meet  publicly  at least twice a year. The committee shall widely

 12  disseminate notice of its meetings at least  two  weeks  prior  to  each

 13  meeting.   The executive director and the commissioners of environmental

 14  conservation and parks, recreation and  historic  preservation  and  the

 15  executive director shall aid in such dissemination.

 16    7.  Scientific  working group. The executive committee shall appoint a

 17  scientific working group composed of not more than  fifteen  individuals

 18  representing  governmental  agencies  (including  a  biologist  from the

 19  department of environmental conservation), academic or  research  insti-

 20  tutions,  educational  organizations,  the  forest products industry and

 21  non-profit conservation organizations. Members of the scientific working

 22  group shall have knowledge and expertise  in  biodiversity  conservation

 23  and research and shall serve for a term of three years, provided, howev-

 24  er  that  members  may  be  reappointed  for  more  than one term at the

 25  discretion of the executive  committee.  The  scientific  working  group

 26  shall make recommendations to the executive committee with respect to:

 27    (a)  the identification of priority biodiversity research needs in the

 28  state;

                                        162                        12022-01-1

  1    (b) the development and implementation of  the  institute's  research,

  2  education, and information transfer programs;

  3    (c)  the  allocation  and  expenditure  of funds from the biodiversity

  4  stewardship and research fund created pursuant to section  ninety-seven-

  5  oo of the state finance law;

  6    (d)  identification and rating of proposals for biodiversity research;

  7  and

  8    (e) identification and rating of proposals for  biodiversity  steward-

  9  ship.

 10    8.  Institute  director. The institute shall have a director who shall

 11  be appointed by the executive committee and shall after  appointment  be

 12  an  employee  of  the  state  museum  and science service. The institute

 13  director shall serve at the pleasure of  the  executive  committee.  The

 14  institute  director  shall  serve as chief administrative officer of the

 15  institute and provide the necessary support for the executive committee.

 16    9. Compensation. The members of the executive committee and the scien-

 17  tific working group shall serve  without  additional  compensation,  but

 18  shall  be  eligible to receive reimbursement for their actual and neces-

 19  sary expenses from the biodiversity stewardship and research fund estab-

 20  lished by section ninety-seven-oo of the  state  finance  law,  provided

 21  however,  members of the executive committee representing state agencies

 22  may receive reimbursement for their actual and necessary  expenses  from

 23  their  respective  agencies.    Members  of  the executive committee and

 24  scientific working group shall be considered  state  employees  for  the

 25  purposes of sections seventeen and nineteen of the public officers law.

 26    10. Memorandum of understanding. The office of cultural resources, the

 27  department  of  environmental  conservation,  and  the  office of parks,

 28  recreation and historic preservation shall enter into a written memoran-

                                        163                        12022-01-1

  1  dum of understanding to facilitate the appropriate implementation of the

  2  biodiversity research institute and  the  goals,  responsibilities,  and

  3  programs established by this section.

  4                                 ARTICLE 42

  5                                STATE LIBRARY

  6  Section 42.01. Authorization.

  7          42.02. Borrowing privileges.

  8          42.03. Collections.

  9          42.04. Duplicate department.

 10          42.05. Transfers from state officers.

 11          42.06. Other libraries owned by the state.

 12    §  42.01.  Authorization. The office is hereby authorized and directed

 13  to administer the state library and related  collections,  programs  and

 14  functions.  Such  library  shall  be kept open not less than eight hours

 15  every weekday in the year except the legal holidays known  as  Independ-

 16  ence day, Thanksgiving day and Christmas day.

 17    §  42.02.  Borrowing privileges. Members of the legislature, judges of

 18  the court of appeals, justices of the supreme court and heads  of  state

 19  departments  may  borrow  items  from  the library collection for use in

 20  Albany, but shall be subject to such restrictions and penalties  as  may

 21  be  prescribed  by the board for the safety or greater usefulness of the

 22  library. Under such rules and conditions as the board may prescribe, the

 23  state library may lend items from its collection for a limited  time  to

 24  other  individuals  and institutions conforming to said rules and condi-

 25  tions.  Such service shall be free to residents of this state as far  as

 26  practicable,  but  the board may, in its discretion, charge a proper fee

 27  to nonresidents or for assistance of a  personal  nature  or  for  other

                                        164                        12022-01-1

  1  reason not properly an expense to the state, but which may be authorized

  2  for the accommodation of users of the library.

  3    §  42.03.  Collections.  1.  State  library  collections.   All books,

  4  pamphlets, manuscripts, records, archives,  maps,  other  objects  where

  5  information  is  stored and where from information can be retrieved, and

  6  all other property appropriate to a general library,  if  owned  by  the

  7  state  and not placed in other custody by law, shall be in the charge of

  8  the  board  and  constitute  the  state  library.  The   state   library

  9  collections shall also include, but not be limited to, the following:

 10    (a)  State medical collection. The state medical collection shall be a

 11  part of the New York state library under the same government  and  regu-

 12  lations and shall be open for consultation to every citizen of the state

 13  at  all  hours when the state library is open and shall be available for

 14  loans to every licensed physician residing in the state of New York, who

 15  shall conform to the  rules  made  by  the  board  for  insuring  proper

 16  protection  and the largest usefulness to the people of the said medical

 17  collection.

 18    (b) State law collection and legislative reference library. The  state

 19  law  collection  and the legislative reference collection shall be parts

 20  of the New York state library under the same government and  regulations

 21  and  shall be open for consultation to every citizen of the state at all

 22  hours when the state library is open and the law library shall be avail-

 23  able for loans to every duly admitted attorney residing in the state  of

 24  New  York, who shall conform to the rules made by the board for insuring

 25  proper protection and the largest usefulness to the people of  the  said

 26  law collection.

 27    2.  Manuscript  and records "on file". Manuscript or printed papers of

 28  the legislature, usually termed "on file, " and which shall have been on

                                        165                        12022-01-1

  1  file more than five years in custody of the senate and assembly  clerks,

  2  and  all  public  records  of the state not placed in other custody by a

  3  specific law shall be part of the state library and  shall  be  kept  in

  4  rooms assigned and suitably arranged for that purpose by the trustees of

  5  public buildings. The board shall cause such papers and records to be so

  6  classified  and  arranged  that  they  can  be easily found. No paper or

  7  record shall be removed from such files except on a  resolution  of  the

  8  senate  and  assembly  withdrawing  them for a temporary purpose, and in

  9  case of such removal a description of the paper or record and  the  name

 10  of  the  person  removing  the  same  shall be entered in a book or file

 11  provided for that purpose, with the date of its delivery and return.

 12    § 42.04. Duplicate department.   The  board  of  trustees  shall  have

 13  charge  of  the  preparation,  publication  and distribution, whether by

 14  sale, exchange or gift, of the colonial history, natural history and all

 15  other state publications not otherwise assigned by law. To guard against

 16  waste or destruction of state  publications,  and  to  provide  for  the

 17  completion  of  sets to be permanently preserved in American and foreign

 18  libraries, the board shall maintain a duplicate department to which each

 19  state department, bureau, board, commission, authority, division, office

 20  public benefit corporation shall send after completing its distribution,

 21  any remaining copies which it no  longer  requires.  The  abovementioned

 22  publications,  with  any  other  publications  not  needed  in the state

 23  library, shall be the duplicate department, and rules for sale, exchange

 24  or distribution from it shall be fixed by the  board  of  trustees,  who

 25  shall  use all receipts from such exchanges or sales for the expenses of

 26  the duplicate department or depository of the state library.

 27    § 42.05. Transfers from state officers. The librarian of  any  library

 28  owned  by  the  state, or the officer in charge of any state department,

                                        166                        12022-01-1

  1  bureau, board, commission or other office may, with the approval of  the

  2  board  of  trustees,  transfer  to  the  permanent  custody of the state

  3  library or museum any books, papers,  maps,  manuscripts,  specimens  or

  4  other  articles which, because of being duplicates or for other reasons,

  5  will in his or her judgment be more useful to the  state  in  the  state

  6  library or museum than if retained in his or her keeping.

  7    §  42.06.  Other libraries owned by the state. The state library shall

  8  submit an annual report to the legislature which shall include a  state-

  9  ment  of  the total number of volumes, pamphlets, publications and other

 10  library materials added to its collection during the year, with a summa-

 11  ry of operations and conditions, and any needed recommendation for safe-

 12  ty or usefulness for each of the other libraries owned by the state, the

 13  custodian of which shall furnish  such  information  or  facilities  for

 14  inspection  as  the  board  may  require for making this report. Each of

 15  these libraries shall be under the sole control now provided by law, but

 16  for the annual report of the total number of books owned  by  or  bought

 17  each  year by the state, it shall be considered as a branch of the state

 18  library and shall be entitled to any facilities for exchange  of  dupli-

 19  cates,  inter-library  loans  or other privileges properly accorded to a

 20  branch.

 21                                 ARTICLE 43

 22                           LIBRARY AID AND AID TO

 23                        PUBLIC BROADCASTING STATIONS

 24  Section 43.01. Aid to Native American libraries.

 25          43.02. Eligibility for library aid.

 26          43.03. Apportionment of library aid.

 27          43.04. State aid for library construction.

 28          43.05. State aid to school library systems.

                                        167                        12022-01-1

  1          43.06. State aid for cooperation with state correctional facili-

  2                   ties.

  3          43.07. Grants-in-aid to public television and radio corporations

  4                   and public radio stations.

  5    §  43.01.  Aid  to Native American libraries.   1. Any Native American

  6  library chartered by the regents or in the absence of such  library  any

  7  tribal  government  contracting  for service from a chartered and regis-

  8  tered library or approved library system, shall be entitled  to  receive

  9  state aid during each calendar year consisting of the following amounts:

 10    (a) eighteen thousand dollars;

 11    (b)  the  sum  of  eighteen  dollars  and  twenty cents per capita for

 12  persons residing on  the  reservation  served  by  the  Native  American

 13  library  or  contract as shown by the latest federal census or certified

 14  by the New York state director of Indian services; and

 15    (c) the sum of one dollar and fifty cents per acre of area  served  by

 16  the Native American library or contract.

 17    2.  Such  sums  shall  be paid to the Native American library board of

 18  trustees for the use of the native library, or in the absence of such  a

 19  board,  to  the  tribal  government  for a contract for library service.

 20  Nothing contained in this section shall be  construed  to  diminish  the

 21  funds, services or supplies provided to any Native American library by a

 22  library system as defined in section 43.02 of this article.

 23    §  43.02. Eligibility for library aid.  1. Public library systems. (a)

 24  The term "public library system" as used in this article means:

 25    (i) a library established by one or more counties;

 26    (ii) a group of libraries serving an area including one or more  coun-

 27  ties in whole or in part;

 28    (iii) a library of a city containing one or more counties; or

                                        168                        12022-01-1

  1    (iv)  a cooperative library system established pursuant to section two

  2  hundred fifty-five of the education law, the plan of library service  of

  3  any of which shall have been approved by the executive director.

  4    (b)  The  "area served" by a public library system for the purposes of

  5  this article shall  mean  the  area  which  the  public  library  system

  6  proposes  to  serve  in its approved plan of service. In determining the

  7  population of the area served by the public  library  system  the  popu-

  8  lation shall be deemed to be that shown by the latest federal census for

  9  the  political subdivisions in the area served. Such population shall be

 10  certified in the same manner as provided by section  fifty-four  of  the

 11  state finance law except that such population shall include Native Amer-

 12  ican  population in reservations and schools and inmates of state insti-

 13  tutions under the direction, supervision or control of the state depart-

 14  ment of correctional services, the state department  of  mental  hygiene

 15  and  the state department of family assistance. In the event that any of

 16  the political subdivisions receiving library service are included within

 17  a larger political subdivision which is a part  of  the  public  library

 18  system the population used for the purposes of computing state aid shall

 19  be the population of the larger political subdivision, provided however,

 20  that  where any political subdivision within a larger political subdivi-

 21  sion shall have taken an interim census since the last census  taken  of

 22  the larger political subdivision, the population of the larger political

 23  subdivision  may  be  adjusted to reflect such interim census and, as so

 24  adjusted, may be used until the next census  of  such  larger  political

 25  subdivision. In the event that the area served is not coterminous with a

 26  political  subdivision, the population of which is shown on such census,

 27  or the area in square miles of which is available from official sources,

 28  such population and area shall be determined, for the purpose of  compu-

                                        169                        12022-01-1

  1  tation  of state aid pursuant to section 43.03 of this article by apply-

  2  ing to the population and area in square miles of such political  subdi-

  3  vision,  the  ratio  which  exists between the assessed valuation of the

  4  portion  of  such  political subdivision included within the area served

  5  and the total assessed valuation of such political subdivision.

  6    (c) Members of a public library system shall  be  those  public,  free

  7  association,  and  Native  American libraries located within the service

  8  area which have been admitted to membership prior to October first,  two

  9  thousand,  or  which  apply for and are granted membership subsequent to

 10  that date with the approval of the executive director. No public library

 11  system shall be subject to any loss of benefits under  these  provisions

 12  where  such  system has made reasonable effort to prevent the unapproved

 13  withdrawal of such library from the system and the system  demonstrates,

 14  in  a  manner satisfactory to the executive director, that the residents

 15  of the area encompassed by the  withdrawing  library  will  continue  to

 16  benefit from the library services provided by the public library system.

 17    (d)  "Approved  plan"  as used in this article means a plan of library

 18  service by a public library system approved by the executive director.

 19    (e) Approval shall not be given to a public library system  unless  it

 20  will  serve at least two hundred thousand people or four thousand square

 21  miles of area, provided, however, that provisional approval may be given

 22  to a public library system which will  serve  at  least  fifty  thousand

 23  persons provided the area served includes three or more political subdi-

 24  visions  and  provided  further that a satisfactory plan of expansion of

 25  service to be followed during the ensuing five-year period is adopted by

 26  such library system and approved by the executive director.

 27    (f) The board of trustees of the public library system shall submit to

 28  the executive director the plan of library service. Such plan  shall  be

                                        170                        12022-01-1

  1  supported  by  such information as the executive director may require in

  2  the form prescribed by him or her.

  3    (g) No such plan of library service shall be approved by the executive

  4  director  unless  he  or she finds that it provides for the residents of

  5  the area served thereby a method conforming to the  regulations  of  the

  6  executive director by which the participating libraries are obligated to

  7  permit  the  loan  of books and material among members of the system for

  8  use on the same basis permitted by the library which  owns  or  controls

  9  them.

 10    (h) The executive director shall by regulation provide the standard of

 11  service  with which such a public library system must comply. Such regu-

 12  lations shall, among other things, relate to the size of the collection;

 13  the diversity of such collection with respect to  general  subjects  and

 14  interests,  provided  that such regulations shall not, directly or indi-

 15  rectly, prohibit the inclusion of a particular book, periodical or mate-

 16  rial or the works of a particular author or the expression of a  partic-

 17  ular point of view; annual additions to collection; circulation; mainte-

 18  nance  of  catalogues;  number  and  location  of  libraries  or  branch

 19  libraries; hours of operation and number and qualifications  of  person-

 20  nel  necessary  to  enable  a  public  library system to render adequate

 21  service. Such regulations may establish standards which  differ  on  the

 22  basis  of population; density of population; the actual valuation of the

 23  taxable property within the area served; the amount raised  by  taxation

 24  by or for the area served; the relation of such amount to population and

 25  actual  value of the property taxed; the relation of the amount of funds

 26  received by a public library system from local  taxes  to  that  derived

 27  from  private  contributions;  or  on  such other basis as the executive

                                        171                        12022-01-1

  1  director finds necessary to provide for the  equitable  distribution  of

  2  state aid.

  3    (i)  Each  public  library system receiving state aid pursuant to this

  4  article shall furnish such information regarding its library service  as

  5  the executive director may from time to time require to discharge his or

  6  her  duties  under such sections. The executive director may at any time

  7  revoke his or her approval of a plan of library service  if  he  or  she

  8  finds that the public library system operating under such plan no longer

  9  conforms to the provisions of this section or the regulations promulgat-

 10  ed  by  the executive director hereunder; or, in the case of provisional

 11  approval, if such library system no longer conforms  to  the  agreement,

 12  plans  or  conditions upon which such provisional approval was based. In

 13  such case a public library system shall not thereafter  be  entitled  to

 14  state  aid pursuant to this article unless and until its plan of library

 15  service is again approved by the executive director.

 16    (j) (i) In the event that the  sum  total  of  local  sponsor  support

 17  raised by local taxation exclusive of the sum raised for capital expend-

 18  itures  for  the  support  of  a public library system and participating

 19  libraries in a twelve month period is less than ninety-five  percent  of

 20  the  average  of  the amounts raised for such purposes by local taxation

 21  for the two preceding twelve month periods, the state aid to which  such

 22  library  system  would otherwise be entitled shall be reduced by twenty-

 23  five percent. Such state aid shall likewise be  reduced  by  twenty-five

 24  percent  in  the event that the public library system shall refuse after

 25  reasonable notice to make provision for the expansion of the area served

 26  in accordance with the regulations of the  executive  director.  In  the

 27  first  year  in  which any library system changes its reporting from the

 28  calendar year to a fiscal year other than the calendar  year,  it  shall

                                        172                        12022-01-1

  1  file  any  additional reporting schedules deemed necessary by the execu-

  2  tive director for the purpose of determining maintenance  of  effort  as

  3  required  herein,  in  order that no period of time shall be exempt from

  4  such requirement.

  5    (ii)  In the event that the total sum raised by local taxation, exclu-

  6  sive of the sum raised for capital expenditures, for the  support  of  a

  7  central  library of a public library system in a twelve month period, is

  8  less than ninety-five percent of the average of the amounts  raised  for

  9  such purposes by local taxation for the two preceding twelve month peri-

 10  ods, the state aid to which such library system would otherwise be enti-

 11  tled  for  the  development  of  its central library shall be reduced by

 12  twenty-five percent. In the first  year  in  which  any  library  system

 13  changes its reporting from the calendar year to a fiscal year other than

 14  the  calendar  year,  it  shall  file any additional reporting schedules

 15  deemed necessary by the executive director for the purpose of  determin-

 16  ing maintenance of effort as required herein, in order that no period of

 17  time shall be exempt from such requirement.

 18    (iii)  The  executive  director may waive the requirements of subpara-

 19  graphs (i) and (ii) of this paragraph, if the executive director  deter-

 20  mines  that the application of such subparagraphs would result in exces-

 21  sive hardship for the public library system or central  library  brought

 22  about  by  an  extraordinary change in a local sponsor's economic condi-

 23  tion, loss by a local sponsor of state aid to local governments provided

 24  under section fifty-four of the state  finance  law,  or  by  a  natural

 25  disaster.  Such  waiver  may  be  granted  only  one time to each public

 26  library system or central library between  the  first  day  of  January,

 27  nineteen  hundred  ninety-six  and the thirty-first day of December, two

 28  thousand.  The executive director may grant such waiver for a period  of

                                        173                        12022-01-1

  1  up  to  two  consecutive  calendar  years.  The executive director shall

  2  report any waivers granted under this subparagraph to the speaker of the

  3  assembly, the temporary president of  the  senate,  the  chairs  of  the

  4  legislative  fiscal  committees  and the director of the division of the

  5  budget.

  6    (iv) A "local sponsor" shall mean any municipality, district or school

  7  district, as defined in the general municipal law,  or  any  combination

  8  thereof.

  9    (k)  In  promulgating regulations and approving, rejecting or revoking

 10  plans of library service pursuant to this section,  consideration  shall

 11  be given to:

 12    (i)  the  prevention  of unreasonable discrimination among the persons

 13  served by such public library system;

 14    (ii) the need for rapid expansion of library facilities in  areas  not

 15  now served;

 16    (iii)  the  need  of  each  public library system for the professional

 17  services of an adequate number of  librarians  having,  in  addition  to

 18  general  familiarity  with  literature, special training with respect to

 19  book selection and organization for library use;

 20    (iv) the need for a library collection sufficient in size  and  varied

 21  in kind and subject matter;

 22    (v) the need for regular fresh additions to collection;

 23    (vi)  the  need  for  adequate  books,  materials  and  facilities for

 24  research and information as well as for recreational reading;

 25    (vii) the need for libraries, branches, and other  outlets  convenient

 26  in location, and with adequate hours of service;

                                        174                        12022-01-1

  1    (viii)  the desirability for the integration of existing libraries and

  2  new libraries into systems serving a sufficiently  large  population  to

  3  support adequate library service at a reasonable cost;

  4    (ix)  the  need  for  the economic and efficient utilization of public

  5  funds;

  6    (x) the need for full  utilization  of  local  pride,  responsibility,

  7  initiative  and  support  of library service and the use of state aid in

  8  their stimulation but not as their substitute; and

  9    (xi) the needs of special populations.

 10    2. Reference and research library resources systems.    (a)  The  term

 11  "reference  and research library resources system" as used in this arti-

 12  cle means a duly chartered educational institution  resulting  from  the

 13  association  of  a group of institutions of higher education, libraries,

 14  non-profit educational institutions, hospitals, and  other  institutions

 15  organized  to  improve reference and research library resources service.

 16  Such reference and research library resource systems may  be  registered

 17  upon meeting the standards set forth by the executive director.

 18    (b)  The  "area  served" by a reference and research library resources

 19  system for the purposes of this article  shall  include  not  less  than

 20  seven  hundred fifty thousand persons, as based upon the latest approved

 21  federal census, or not less than ten  thousand  square  miles;  and  the

 22  defined area of service shall:

 23    (i) include more than one county;

 24    (ii)  respect the integrity of the area of service of a public library

 25  system; and

 26    (iii) constitute a service area effectively related to the availabili-

 27  ty of information resources and services and to the area of  service  of

                                        175                        12022-01-1

  1  other reference and research library resources systems, as determined by

  2  the executive director.

  3    (c)  Membership  in  a reference and research library resources system

  4  shall include: (i) at least four chartered degree-granting  institutions

  5  of  higher education of the four year level whose libraries meet depart-

  6  mental standards; (ii) either:

  7    (1) at least  one  chartered  degree-granting  institution  of  higher

  8  education  offering graduate programs for a masters degree whose library

  9  holds not less  than  two  hundred  seventy-five  thousand  volumes  and

 10  currently receives not less than three thousand periodical titles, or

 11    (2)  a  public library which holds not less than four hundred thousand

 12  adult volumes and currently receives not less  than  one  thousand  five

 13  hundred periodical titles;

 14    (iii)  the  membership  may  also  include  approved public and school

 15  library systems which are within the region served by the reference  and

 16  research library resources system;

 17    (iv)  a  public  library  in  Suffolk  or  Nassau county that provides

 18  service within the area served by the system except that no such  public

 19  library which is not a member of a public library system shall be eligi-

 20  ble for membership in a reference and research library resources system;

 21    (v)  a reference and research library resources system may set its own

 22  minimum standards for membership  consistent  with  regulations  of  the

 23  executive director, except that:

 24    (1)  any chartered institution of higher education whose library meets

 25  the standards established by the office shall be  eligible  for  member-

 26  ship, and

 27    (2)  any  chartered institution of higher education whose library does

 28  not meet such standards may not be eligible  for  membership  unless  it

                                        176                        12022-01-1

  1  submits to the office a five-year plan for the realization of the stand-

  2  ards,  the  plan  bearing the signed approval of the head librarian, the

  3  president, and the academic dean of the institution, and

  4    (3)  any  hospital  whose  library  meets the standards established in

  5  section two hundred fifty-four of the education law  shall  be  eligible

  6  for membership, and

  7    (4)  any  hospital whose library does not meet such standards will not

  8  be eligible for membership unless it submits to the executive director a

  9  five-year plan for the realization of the standards, such  plan  bearing

 10  the signed approval of the head of the governing board of such hospital;

 11    (vi)  the  member  institutions of each reference and research library

 12  resources system shall be broadly representative of the chartered educa-

 13  tional agencies, nonprofit organizations, hospitals  and  other  special

 14  libraries  providing library service within the defined area of services

 15  of the system.

 16    (d) (i) The reference and  research  library  resources  system  shall

 17  submit  a  plan  of service to the executive director for approval, in a

 18  form to be prescribed by the  executive  director  to  cover  resources,

 19  needs,  proposed  program, budget, contractual agreements, and any other

 20  information which the executive director may require.

 21    (ii) The plan of service must show the manner in which  the  reference

 22  and research library resources system will improve the library resources

 23  and  services presently available in the area to the research community,

 24  including improved reader access.

 25    (iii) The plan of service shall  indicate  the  manner  in  which  the

 26  reference  and research library resources system strengthens the library

 27  programs of its members and the manner in which the  system  program  is

 28  related to appropriate regional programs in higher education.

                                        177                        12022-01-1

  1    (iv)  The  plan  of  service shall identify the resources and needs of

  2  each hospital library, or library serving hospitals and show the  manner

  3  in  which  the  reference  and  research  library  resources system will

  4  improve hospital library services and  in  which  it  will  assist  each

  5  hospital  library  which  does  not meet the board's standards to attain

  6  such standards and will  assist  each  non-member  hospital  library  or

  7  library serving a hospital to attain membership in the system.

  8    (e)  The executive director shall by regulation establish the standard

  9  of service to be met by such a reference and research library  resources

 10  system.

 11    (f)  Each  reference  and  research library resources system receiving

 12  state aid pursuant  to  this  article  shall  furnish  such  information

 13  regarding its library service as the executive director may from time to

 14  time  require  to  discharge  his or her duties under such sections. The

 15  executive director may at any time revoke his or her approval of a  plan

 16  of  library service if he or she finds that the library system operating

 17  under such plan no longer conforms to the provisions of this section  or

 18  the regulations promulgated by the executive director hereunder. In such

 19  case  a  library  system  shall  not thereafter be entitled to state aid

 20  pursuant to this article unless and until its plan of library service is

 21  again approved by the executive director.

 22    (g) In promulgating regulations and approving, rejecting  or  revoking

 23  plans  of  library service pursuant to this section, consideration shall

 24  be given to:

 25    (i) the prevention of unreasonable discrimination  among  the  persons

 26  served by such library system;

 27    (ii)  the need for regional resources of sufficient size and varied in

 28  kind and subject matter;

                                        178                        12022-01-1

  1    (iii) the need for adequate books, materials (print and non-print) and

  2  facilities for research and information;

  3    (iv) the need for outlets convenient in time and place for the sharing

  4  of library materials;

  5    (v)  the  need  for  the  economic and efficient utilization of public

  6  funds;

  7    (vi) the need for full utilization of local responsibility, initiative

  8  and support of library service and the use of state aid in their  stimu-

  9  lation but not as their substitute; and

 10    (vii) the need for adequate books, materials, including both print and

 11  non-print  materials,  and  facilities  for  current medical information

 12  services to be provided each hospital.

 13    § 43.03. Apportionment of library aid. 1. Any  public  library  system

 14  providing service under an approved plan during a calendar year shall be

 15  entitled  to  receive  during that calendar year state aid consisting of

 16  the following amounts:

 17    (a) An annual grant of:

 18    (i) ten thousand dollars where the library system serves less than one

 19  county;

 20    (ii) twenty thousand dollars  where  the  library  system  serves  one

 21  entire county; or

 22    (iii)  where the library system serves more than one county the system

 23  shall be entitled to  receive  twenty-five  thousand  dollars  for  each

 24  entire  county  served  and/or ten thousand dollars for each county, any

 25  part of which is served by the library system. If an  entire  county  is

 26  served by two or more library systems, each of which serves a part ther-

 27  eof,  each  of such library systems shall be entitled to receive a grant

 28  of ten thousand dollars and in addition, a pro rata share  of  an  addi-

                                        179                        12022-01-1

  1  tional sum of ten thousand dollars, such share to be computed in accord-

  2  ance  with  the  ratio  which  the  population of the area of the county

  3  served by such library system bears to the total population of the coun-

  4  ty,  as  determined under subdivision one of section 43.02 of this arti-

  5  cle.

  6    (b) In a library system which submits a plan for  further  development

  7  of  its  central  library, which plan shall be approved by the executive

  8  director in relation to standards for such central libraries, the amount

  9  of central library development aid shall be:

 10    (i) thirty-two cents per capita of the population within the chartered

 11  area of service of such library system with  a  minimum  amount  of  one

 12  hundred five thousand dollars; and

 13    (ii)  an  additional  seventy-one thousand five hundred dollars to the

 14  library system  for  the  purchase  of  books  and  materials  including

 15  nonprint materials, as defined in regulations of the executive director,

 16  for  its  central library. Such additional aid shall be payable on order

 17  and warrant of the comptroller on vouchers certified or approved by  the

 18  executive director in the manner prescribed by law. Ownership of library

 19  materials and equipment purchased with such central library aid provided

 20  by this paragraph shall be vested in the public library system.

 21    (c)  The sum of ninety-four cents per capita of population of the area

 22  served.

 23    (d)(i) An amount equal to the amount  by  which  expenditures  by  the

 24  library  system  for  books, periodicals, binding and nonprint materials

 25  during the preceding fiscal year exceeds forty cents per capita of popu-

 26  lation of the area served but the total apportionment pursuant  to  this

 27  subparagraph shall not exceed sixty-eight cents per capita of population

 28  served.  In  the  first  year  in  which  any library system changes its

                                        180                        12022-01-1

  1  reporting from the calendar year to a fiscal year other than the  calen-

  2  dar year, it shall file any additional reporting schedules deemed neces-

  3  sary  by the executive director for the purpose of determining state aid

  4  for the calendar year.

  5    (ii)  Each public library system with an automation program to support

  6  bibliographic control and interlibrary sharing of information  resources

  7  of  member  libraries,  and  to  coordinate  and integrate the automated

  8  system or systems of such member libraries consistent  with  regulations

  9  of  the executive director, shall be eligible to receive an amount equal

 10  to seven percent of the amount earned in subparagraph (i) of this  para-

 11  graph, or seventy-six thousand five hundred dollars, whichever is great-

 12  er.

 13    (e) The sum of fifty-two dollars per square mile of area served by the

 14  library  system  in  the  case  of library systems serving one county or

 15  less. Such sum shall be increased by five dollars  for  each  additional

 16  entire  county served, provided, however, that no apportionment pursuant

 17  to this paragraph shall exceed seventy-two dollars per  square  mile  of

 18  area  served.  If  an  entire  county  is  served by two or more library

 19  systems, each of which serves a  part  thereof,  each  of  such  library

 20  systems shall be entitled to receive, in addition to the aid computed in

 21  accordance  with  the foregoing provisions of this paragraph, a pro rata

 22  share of an increase of five dollars to be computed as follows: the  sum

 23  resulting  from  the computation of five dollars per square mile of area

 24  served by the one of such library systems which would receive the  larg-

 25  est amount of aid pursuant to this paragraph shall be prorated among the

 26  library  systems  serving such county in accordance with the ratio which

 27  the population of the area served by each of such library systems  bears

                                        181                        12022-01-1

  1  to  the  population of the county as determined under subdivision one of

  2  section 43.02 of this article.

  3    (f)  (i)  In  calendar  years nineteen hundred ninety-one and nineteen

  4  hundred ninety-two,  local  library  incentive  aid  shall  be  paid  as

  5  follows:   the amount of eight cents for every one dollar contributed by

  6  local sponsors to the approved public library systems and to  registered

  7  public  and  free  association  libraries  which are members of a public

  8  library system and which conform to regulations adopted by the executive

  9  director, except that no library system shall receive  a  sum  which  is

 10  more  than  one  hundred  seven percent greater than the sum received in

 11  local library incentive aid in nineteen hundred eighty-three and  except

 12  that  in  calendar  year  nineteen  hundred ninety-two no library system

 13  shall receive a sum which is more than twenty-two percent  greater  than

 14  the  sum  received  in  local  library incentive aid in nineteen hundred

 15  eighty-eight, and further provided  that  the  aid  shall  be  disbursed

 16  according  to  a  plan agreed upon by the public library system board of

 17  trustees and the  boards  of  trustees  of  a  majority  of  the  member

 18  libraries which shall provide that:

 19    (1)  at  least  forty  percent  of the total amount paid to any public

 20  library system under this provision shall be  used  by  the  system  for

 21  system wide services;

 22    (2)  at  least  forty  percent  of the total amount paid to any public

 23  library system under this provision shall be distributed to  its  member

 24  public and free association libraries.

 25    (ii) A "local sponsor" shall mean any municipality, district or school

 26  district,as  defined  in  the  general municipal law, or any combination

 27  thereof.

                                        182                        12022-01-1

  1    (iii) The local sponsor contribution shall be that amount  other  than

  2  funds  allocated for capital expenditure or debt service received in any

  3  calendar year by a public library system or a public or free association

  4  library from such sponsor.

  5    (iv)  Of the annual amount payable under this paragraph, fifty percent

  6  shall be paid on July fifteenth and fifty percent on November  fifteenth

  7  in nineteen hundred ninety-one and in nineteen hundred ninety-two.

  8    (v)  Local  library  services  aid.  In calendar year nineteen hundred

  9  ninety-three and thereafter, except  in  cities  with  a  population  in

 10  excess  of one million inhabitants, each chartered and registered public

 11  and free association library meeting standards of service promulgated by

 12  the executive director, and each  public  or  free  association  library

 13  serving  a  city with a population of one hundred thousand or more which

 14  merged with the public library system on or before January first,  nine-

 15  teen hundred seventy-six and which meets standards of service promulgat-

 16  ed  by  the  executive director, shall be eligible to receive thirty-one

 17  cents per capita of the population of the  library's  chartered  service

 18  area  as  on file with the executive director on January first, nineteen

 19  hundred ninety-two, or, thirty-one cents per capita of the population of

 20  the city with a population of one hundred thousand or more whose  public

 21  or  free association library merged with the public library system on or

 22  before January first,nineteen hundred seventy-six, with a minimum amount

 23  of one thousand five hundred  dollars,  except  that  no  library  shall

 24  receive  less than the amount of local library incentive aid received in

 25  nineteen hundred  ninety-one  as  reported  on  the  library's  nineteen

 26  hundred  ninety-one annual report. Regulations of the executive director

 27  shall provide a method for establishing  changes  in  chartered  service

 28  areas  or  determining  populations  thereof. Local library services aid

                                        183                        12022-01-1

  1  shall be paid to the system  for  distribution  within  thirty  days  of

  2  receipt  to  its  member  libraries in accordance with this subdivision.

  3  Notwithstanding any contrary provisions of this subparagraph, the execu-

  4  tive  director  shall  establish procedures under which a public or free

  5  association library may apply for a waiver of the  requirements  of  the

  6  revised  standards  of service; provided, however, that any such waivers

  7  may only be granted in the same year in which the executive director has

  8  apportioned a reduction adjustment.

  9    (vi) Local services support aid. In  calendar  year  nineteen  hundred

 10  ninety-three  and  thereafter,  except  in  cities  with a population in

 11  excess of one million inhabitants, each public library system  operating

 12  under  an approved plan of service shall be eligible to receive annually

 13  local services support aid equal  to  two-thirds  of  the  total  dollar

 14  amount paid in local library services aid to the member libraries of the

 15  system  plus  thirty-one cents per capita of the system's population who

 16  do not reside within the chartered service area of a member library.

 17    (vii) Local  consolidated  systems  aid.  In  calendar  year  nineteen

 18  hundred  ninety-three  and  thereafter,  in  cities with a population in

 19  excess of one million inhabitants, each public library system  operating

 20  under  an approved plan of service shall be eligible to receive annually

 21  local consolidated system aid equal to the sum of:

 22    (1) thirty-one cents per  capita  of  the  population  served  by  the

 23  system,  but  not  less  than  the amount of local library incentive aid

 24  received in nineteen hundred ninety-one as  reported  on  the  library's

 25  nineteen hundred ninety-one annual report; and

 26    (2)  an  additional  amount  equal  to  two-thirds of the total dollar

 27  amount computed for the system pursuant to clause one of  this  subpara-

 28  graph.

                                        184                        12022-01-1

  1    (g) In addition to the sums provided in paragraphs (a), (b), (c), (d),

  2  (e),  (f),  (h) and (i) of this subdivision, the New York Public Library

  3  shall receive an amount equal to  its  actual  expenditures  for  books,

  4  periodicals  and  binding  for its research libraries which expenditures

  5  are  not  otherwise  reimbursed  or  seven  hundred sixty-seven thousand

  6  dollars and the additional sum of five million  six  hundred  forty-nine

  7  thousand  six  hundred  dollars for the general support of such research

  8  libraries.

  9    (h) (i) Each public library system which provides coordinated outreach

 10  services,as defined by regulations of the executive director, to persons

 11  who are educationally disadvantaged or who  are  members  of  ethnic  or

 12  minority  groups  in  need of special library services, or who are unem-

 13  ployed and in need of job placement assistance, or  who  live  in  areas

 14  underserved by a library, or who are blind, physically handicapped, aged

 15  or  confined  in  institutions,  shall  be  entitled to receive annually

 16  forty-three thousand dollars and thirteen cents per capita of the  total

 17  population of the area served.

 18    (ii) The executive director shall award annually grants to each public

 19  library  system  which  submits  an  acceptable plan for library service

 20  programs to be carried out by  a  system  and/or  a  member  library  or

 21  libraries  which  assist  adults  to increase their literacy skills. The

 22  executive director shall award such grants having determined  that  such

 23  programs  are  being  operated  in direct coordination with local public

 24  schools, colleges and other organizations which  are  operating  similar

 25  adult  literacy  programs.  Annual  state  aid  of  two hundred thousand

 26  dollars shall be awarded in accordance with regulations  promulgated  by

 27  the executive director.

                                        185                        12022-01-1

  1    (iii)  The  executive  director shall award annual grants for approved

  2  expenses for enriched coordinated outreach programs conducted  for  pre-

  3  school  and  school  age  children  and  their  parents  by a library or

  4  libraries which are members of a public library system. Annual state aid

  5  of  three  hundred thousand dollars for grants shall be allocated by the

  6  executive director after review of proposals  submitted  by  the  public

  7  library systems.

  8    (i)  In addition to any other sums provided for such purposes, the New

  9  York Public Library shall receive annually  the  sum  of  seven  hundred

 10  thirty-four thousand dollars for the program of the Schomburg center for

 11  research in black culture, and the additional sum of nine hundred eight-

 12  y-four thousand dollars for the program of the library for the blind and

 13  physically  handicapped; provided, however, that the New York Historical

 14  Society shall receive annual payments  of  two  hundred  fifty  thousand

 15  dollars.

 16    (j)  In addition to any other sums provided to such library the sum of

 17  three hundred fifty thousand dollars shall  be  made  available  to  the

 18  Brooklyn Public Library for its business library for each calendar year.

 19    (k)  In addition to any other sums provided to such library the sum of

 20  fifty thousand dollars shall be made available to the Buffalo  and  Erie

 21  County  Public  Library  for a continuity of service project approved by

 22  the executive director for each calendar year.

 23    (l) In addition to any other sums provided to such library system  the

 24  sum  of  thirty  thousand  dollars shall be made available to the Nassau

 25  library system for a continuity of service project approved by the exec-

 26  utive director for each calendar year.

                                        186                        12022-01-1

  1    (m) The minimum annual grant available to a library system under para-

  2  graphs (a), (c) and (e) and subparagraph (i) of paragraph  (d)  of  this

  3  subdivision shall be six hundred seventy-five thousand dollars.

  4    2.  Within  the amounts appropriated therefor moneys paid out pursuant

  5  to this section shall be paid out of  the  state  treasury  on  vouchers

  6  certified  by the executive director after audit by and upon the warrant

  7  of the comptroller.

  8    3. The executive director may waive  the  requirement  that  a  public

  9  library  system  serve an entire county to earn the maximum annual grant

 10  under subparagraphs (ii) and (iii) of paragraph (a) of  subdivision  one

 11  of  this section and paragraphs (b), (c), (e) and (h) of subdivision one

 12  of this section where he or she deems reasonable effort has been made by

 13  the system to encourage membership by all libraries in the county.

 14    4. Reference and research library resources system.  (a) Any reference

 15  and  research  library  resources  system  providing  service  under  an

 16  approved plan during a calendar year shall be entitled to receive annual

 17  state aid consisting of an annual grant of two hundred seventy  thousand

 18  dollars  plus  the  sum of one dollar and fifty cents per square mile of

 19  area served plus the sum of six cents per capita of  the  population  of

 20  the  area served. Each system may annually appropriate the amount of ten

 21  thousand dollars or less of the aid received  under  this  provision  to

 22  obtain  matching funds from the National Endowment for the Humanities in

 23  the United States Newspaper Program. The annual amount payable  to  each

 24  approved  system  under  this  paragraph  shall  be  paid on July first,

 25  provided that, upon receipt of annual system activity reports  satisfac-

 26  tory  to  the executive director, the executive director shall determine

 27  the amount of any under- or overpayments and shall apply such adjustment

 28  to the next annual payment due such system.

                                        187                        12022-01-1

  1    (b)  The  executive director is hereby authorized to expend up to five

  2  hundred six thousand dollars annually to  contract  with  the  New  York

  3  Academy  of  Medicine,  or  such other agency or agencies as he may deem

  4  appropriate, to provide services to the reference and  research  library

  5  resources systems under the federal regional medical library program.

  6    (c)  (i)  The  executive director is hereby authorized to expend up to

  7  one million three hundred ninety-six  thousand  dollars  in  each  state

  8  fiscal  year  to  provide  grants  to  reference  and  research  library

  9  resources systems for provision of services to member hospital libraries

 10  in not-for-profit hospitals  licensed  by  the  New  York  state  health

 11  department,  or to libraries serving such hospitals which are located in

 12  non-rural  areas  or  rural  areas. For the purpose of this program, the

 13  executive director shall define rural area on the basis  of  population,

 14  population density, and population characteristics. Such grants shall be

 15  determined  on  the basis  of criteria to be developed by the  executive

 16  director  including specific reference  to  five-year  plans  to  assist

 17  member  hospital libraries or libraries serving hospitals in meeting the

 18  standards established by the board of trustees of the office of cultural

 19  resources to   provide  integration  of  member  hospital  libraries  or

 20  libraries  serving hospitals into existing networks and to increase  the

 21  number of member hospital libraries or libraries serving hospitals.

 22    (ii)  The executive director shall provide grants to the reference and

 23  research library resources systems in the following manner:

 24    (1) an amount equal to seventy-five cents  per  square  mile  of  area

 25  served by the reference and research library resource system in further-

 26  ance of the purposes of this paragraph; and

                                        188                        12022-01-1

  1    (2)  the  remainder  for library services to hospitals in non-rural or

  2  rural areas in accordance with regulations  of  the  executive  director

  3  adopted for such purpose.

  4    5. Coordinated collection development program for public and nonprofit

  5  independent  colleges  and  universities.    (a) Libraries of public and

  6  nonprofit independent colleges and universities are entitled to  receive

  7  annual  funding  for  a coordinated collection development grant if they

  8  meet the following conditions:

  9    (i) membership in a reference and research library resources system;

 10    (ii) their resources are made available to the  public,  through  full

 11  participation  in  the  interlibrary  loan  and  other  resource sharing

 12  programs of the reference and research library resources system of which

 13  they are members; and

 14    (iii) they meet the requirements set forth in regulations  adopted  by

 15  the executive director including but not confined to:

 16    (1) maintenance of effort;

 17    (2)  relationships  between  reference  and research library resources

 18  systems'  programs and the regional higher education institution's plan;

 19  and

 20    (3) submission of interlibrary loan statistics, and such other reports

 21  as may be required by the executive director.

 22    (b) Public community colleges and nonprofit independent  colleges  and

 23  universities  with libraries which meet the criteria of paragraph (a) of

 24  this subdivision are eligible for annual grants as follows:

 25    (i) four thousand four hundred dollars for each institution; and

 26    (ii) one  dollar and four cents for each full-time equivalent  student

 27  enrolled in each qualifying institution, in the academic year  completed

                                        189                        12022-01-1

  1  prior  to  the  state fiscal year. For purposes of this section, a full-

  2  time equivalent shall be calculated as follows:

  3    (1) one full-time undergraduate student shall be considered one  full-

  4  time equivalent student;

  5    (2)  one part-time undergraduate student shall be considered one-third

  6  of a full-time equivalent student;

  7    (3) one part-time graduate student shall be considered  one  full-time

  8  equivalent student; and

  9    (4)  one  full-time  graduate student shall be considered one and one-

 10  half of a full-time equivalent student.

 11    (c)  If  funds for the support of this program are appropriated to the

 12  office, such office shall make grants to the  state  university  of  New

 13  York and the city university of New York for the purposes of this subdi-

 14  vision,    and  such  funds  shall be distributed in accordance with the

 15  formula contained in paragraph (b) of this subdivision.

 16    6. Regional bibliographic data bases and interlibrary resources  shar-

 17  ing.  (a)  The  executive  director shall award annually to each of  the

 18  nine  reference  and  research  library  resources systems, from   funds

 19  appropri- ated by the legislature,  upon  submission  of  an  acceptable

 20  annual plan, a grant for an automation program:

 21    (i)  to  support  bibliographic  control  and  interlibrary sharing of

 22  information resources among all types of libraries and  library  systems

 23  in  an  area  not  less  than  that  of a reference and research library

 24  resources system; and

 25    (ii) to coordinate and integrate the automated circulation  system  or

 26  systems  of  the  component  public  library  system  or systems, school

 27  library system or systems and other automated systems within the area of

 28  the reference and research library resources system.  Each reference and

                                        190                        12022-01-1

  1  research library resources system of such region shall be entitled to an

  2  annual  grant  of two hundred thousand dollars plus the sum of two cents

  3  per capita of the population served.

  4    (b)  To  be  eligible  for  a  grant,  a five-year plan for a regional

  5  library automation program shall  be  submitted  by  the  reference  and

  6  research  library  resources  system  acting with the concurrence of all

  7  systems within the region.  Each annual plan submitted  under  paragraph

  8  (a) of this subdivision shall be consistent with the applicable regional

  9  five-year  plan with respect to the description of a comprehensive auto-

 10  mation program and identification of sources of program support in addi-

 11  tion to the state aid funds requested. The approval and modification  of

 12  five-year    plans shall be in accordance with regulations of the execu-

 13  tive director which shall establish   standards   relating   to  library

 14  automation,  continuous  development  of  the  data  base, and updating,

 15  access and linking of the data base program.

 16    (c) In accordance with regulations adopted by the executive  director,

 17  a public  library  system or a reference and research library  resources

 18  system is authorized to enter into contracts with the office of cultural

 19  resources to provide cooperative services for statewide data base devel-

 20  opment, data communication and document delivery.

 21    7. Conservation and preservation of library research materials.    (a)

 22  The  executive  director  may  award  in any state fiscal year an annual

 23  grant of one hundred  twenty-six  thousand  dollars  for  a  program  of

 24  conservation  and/or  preservation of library research materials to each

 25  of the following comprehensive research libraries:  Columbia  university

 26  libraries,  Cornell  university  libraries,  New York state library, New

 27  York university libraries, university of Rochester  libraries,  Syracuse

 28  university  libraries,  the  research  libraries  of the New York public

                                        191                        12022-01-1

  1  library, state university of New York at Albany library, state universi-

  2  ty of New York at Binghamton library, state university of  New  York  at

  3  Buffalo  library,  and  state  university  of  New  York  at Stony Brook

  4  library.

  5    (b) To be eligible for such grants, each such  comprehensive  research

  6  library  must submit both a five-year plan and an annual program budget.

  7  The plan must satisfy criteria to be established by the executive direc-

  8  tor in regulations relating to the identification  of  library  research

  9  materials,  the  need  for  their  preservation,  and the means of their

 10  conservation.

 11    (c) Additional grants, the sum of which shall not exceed three hundred

 12  fifty  thousand  dollars in any state fiscal year, may be made to any or

 13  all of the eleven  comprehensive  research  libraries  for  preservation

 14  and/or  conservation  of  library  research  materials  on  the basis of

 15  project proposals.   Approval of such proposals,  and  determination  of

 16  funding  level, shall be based upon their contribution to development of

 17  cooperative programs and/or facilities for conservation and/or preserva-

 18  tion works in the state, including but not limited to such  factors  as:

 19  institutional  commitment  to  development  of a collective capacity and

 20  coordinated approach to conservation and preservation of research  mate-

 21  rials  important to the people of the state; research value of materials

 22  to be preserved and/or conserved; appropriateness  of  conservation  and

 23  preservation  techniques  in  accordance  with  statewide  planning  and

 24  national standards; institutional capacity for successful completion  of

 25  the  project, including facilities, experience, and technical expertise;

 26  availability of staff with appropriate training and expertise;  contrib-

 27  ution  of  the  institution  to  the project in matching funds and staff

                                        192                        12022-01-1

  1  resources; and volume of interlibrary lending and access to holdings  by

  2  the public.

  3    (d) Other agencies and libraries, as defined in regulations promulgat-

  4  ed  by  the executive director, which are not eligible for funding under

  5  paragraph  (a)  of this subdivision, may receive separate grants the sum

  6  of which shall not exceed five hundred thousand  dollars  in  any  state

  7  fiscal  year  to  support the preservation and/or conservation of unique

  8  library research materials.  Such agencies and  libraries  shall  submit

  9  proposals  which   shall  be  evaluated  and  determinations of approval

 10  and funding shall be made on the same basis set forth in  paragraph  (e)

 11  of this subdivision.

 12    (e)  Funds  made available under the provisions of this section may be

 13  used by comprehensive research libraries and other agencies eligible for

 14  funding to obtain matching funds from the  national  endowment  for  the

 15  humanities preservation program.

 16    (f)    The  executive  director shall dedicate resources to assess the

 17  technology available for such conservation  and preservation of  library

 18  research materials, and  to  coordinate  the  conservation  and  preser-

 19  vation efforts resulting from this legislation. The  executive  director

 20  shall also  establish  an advisory council on conservation and preserva-

 21  tion to assist in the development and operation of this program.

 22    8. New York state talking book and braille library. The New York state

 23  talking book and braille library shall be entitled to  receive  annually

 24  an  amount  equal  to  the  product of the aid ceiling multiplied by the

 25  number of registered borrowers of such materials of such library  as  of

 26  the  November  report  for  the November immediately preceding the state

 27  fiscal year for which the payment will be made.  Such  amount  shall  be

 28  used  to improve the quality of services provided to such borrowers. For

                                        193                        12022-01-1

  1  aid payable in each state fiscal year, the aid  ceiling  per  registered

  2  borrower shall be nineteen dollars.  Notwithstanding any other provision

  3  of law, the New York state talking book and braille library shall be the

  4  successor  in  interest  to the New York state library for the blind and

  5  visually handicapped for all purposes, or the library for the blind  and

  6  physically  handicapped,  and  the  change  in name shall not affect the

  7  rights or interests of any party. Except where the context  indicates  a

  8  contrary  intent,  any  reference in any other general or special law to

  9  the New York state library for the blind and visually handicapped or the

 10  library for the blind and  physically  handicapped  shall  be  deemed  a

 11  reference to the New York state talking book and braille library.

 12    9.  State  aid  for  a  coordinated  program  of  library and archival

 13  services at The Center for Jewish History, Inc.  (a) In addition to  any

 14  other  sums  provided to The Center for Jewish History, Inc., the execu-

 15  tive director shall award in any state fiscal year an  annual  grant  of

 16  two  hundred  thousand  dollars for a coordinated program of library and

 17  archival services that will increase public access to  the  library  and

 18  archival  collections  of  The  Center  for Jewish History, Inc. and its

 19  member institutions.

 20    (b) The Center for Jewish History, Inc.  is  hereby  admitted  to  the

 21  University of the State of New York and shall, as a condition of contin-

 22  ued  receipt of aid, maintain such status in accordance with appropriate

 23  regulations  of  the University. Such regulations may include submission

 24  of a five-year plan and annual program budget.

 25    §  43.04.  State  aid for library construction.  1. State aid shall be

 26  provided for up to fifty percent of the approved costs, excluding feasi-

 27  bility  studies,  plans   or   similar   activities   for   acquisition,

 28  construction, renovation or rehabilitation, including leasehold improve-

                                        194                        12022-01-1

  1  ments, of buildings of public libraries and library systems chartered by

  2  the regents of the state of New York or established by act of the legis-

  3  lature  subject  to the limitations provided in subdivision four of this

  4  section and upon approval by the executive  director.  For  purposes  of

  5  this   subdivision, an amount of eight hundred thousand dollars shall be

  6  available for each calendar year.

  7    2.  Each  application for state aid shall be submitted by the board of

  8  trustees of the library or library system responsible for the  operation

  9  of  the subject building to the executive director for his or her review

 10  and approval, after having been reviewed and approved by  the  governing

 11  board  of  the  public library system of which such library is a member.

 12  Each application shall:

 13    (a) demonstrate that resources are or shall be  available  to  provide

 14  for maximum utilization of the project if approved;

 15    (b)  contain  verification  in  such  form as may be acceptable to the

 16  executive director that the total cost  of  the  project,  exclusive  of

 17  state aid, has been or will be obtained;

 18    (c)  demonstrate that library operations would be made more economical

 19  as a consequence of approval;

 20    (d) be limited to one project concerning such building, provided  that

 21  no  building shall be the subject of more than one application per year;

 22  and

 23    (e) provided such other information as may be required by  the  execu-

 24  tive director.

 25    3.  In approving any application the executive director shall consider

 26  the condition of existing libraries and, where appropriate, the needs of

 27  isolated communities, provided that no application shall be approved for

                                        195                        12022-01-1

  1  a project that is deemed by him or her to be  more  than  sixty  percent

  2  complete as of the date of the application.

  3    4. Aid shall be distributed pursuant to this section as follows:

  4    (a)  sixty  percent of the funds appropriated pursuant to this section

  5  shall be made available to libraries within each system by the executive

  6  director in such manner as to  insure  that  the  ratio  of  the  amount

  7  received  within  each  system  to  the  whole of the aid made available

  8  pursuant to this paragraph is no greater than the  ratio  of  the  popu-

  9  lation served by such system to the population of the state;

 10    (b)  forty  percent of the funds appropriated pursuant to this section

 11  shall be made available to library  systems  or  libraries  within  each

 12  system  by  the  executive  director in such manner as to insure that an

 13  equal amount is received within each system in the state; and

 14    (c) any funds made available pursuant to paragraph (a) or (b) of  this

 15  subdivision  which are declined by such libraries or library systems for

 16  any reason, or which cannot otherwise  be  used  by  such  libraries  or

 17  library  systems  for  any  reason,  shall  be  made  available to other

 18  libraries within such system, or if no such library can use such  funds,

 19  they  shall  be  reallocated  among  the other library systems and their

 20  libraries in a manner that will to the extent possible provide from such

 21  reallocated funds an equal amount to each such system.

 22    5. The executive director shall adopt rules  and  regulations  as  are

 23  necessary to carry out the purposes and provisions of this section.

 24    6.  The executive director shall report by September thirtieth of each

 25  year to the governor, the temporary president of the senate, the speaker

 26  of the assembly, the chairs of the  senate  finance  committee  and  the

 27  assembly  ways  and  means committee concerning the amounts appropriated

 28  and expended pursuant to this section, the status of  each  project  for

                                        196                        12022-01-1

  1  which any amount of state aid was provided as of the date of the report,

  2  the status of any project for which an application was submitted but for

  3  which  no aid was provided as of the date of the report, the anticipated

  4  state aid necessary to be provided for eligible projects to be completed

  5  and  such other information as the executive director may deem appropri-

  6  ate.

  7    §  43.05. State aid to school library systems.  1. Each school library

  8  system established pursuant to section two  hundred  eighty-two  of  the

  9  education  law  and operating   under a   plan approved by the executive

 10  director shall be   eligible  to  receive  funding  under  this  section

 11  consisting of the following amounts:

 12    (a)  Each  school  library  system  with a public and nonpublic school

 13  enrollment of less than one hundred thousand students  shall  receive  a

 14  base  grant of eighty-three thousand dollars;

 15    (b)  Each  school  library  system  with a public and nonpublic school

 16  enrollment  of  one  hundred thousand students but less than two hundred

 17  thousand students shall receive a base grant of ninety thousand  dollars

 18  except that in nineteen hundred ninety-one each  school  library  system

 19  with  a  public and  nonpublic school enrollment of one hundred thousand

 20  students but less than two hundred thousand  students  shall  receive  a

 21  base grant of eighty-seven thousand dollars;

 22    (c)  Each  school  library  system  with a public and nonpublic school

 23  enrollment of at least two hundred thousand students but less than  five

 24  hundred  thousand  students  shall  receive  a base grant of one hundred

 25  twenty-three thousand  dollars;

 26    (d) Each school library system with  a  public  and  nonpublic  school

 27  enrollment  of  more than five hundred thousand students shall receive a

 28  base grant of eight hundred ninety-seven thousand dollars;

                                        197                        12022-01-1

  1    (e) In addition to the base grant provided in paragraph (a), (b),  (c)

  2  or  (d)  of  this  subdivision, each school library system shall receive

  3  annually:

  4    (i) twenty-nine cents per student enrolled in the participating public

  5  and nonpublic schools comprising such system,

  6    (ii)  five  hundred  dollars  per participating public school district

  7  comprising such system, a minimum of four thousand five hundred  dollars

  8  per  system  located within a  board of cooperative educational services

  9  area, or five thousand dollars per city school district of a city with a

 10  population of one hundred twenty-five thousand inhabitants or more, and

 11    (iii) two dollars and forty-five cents per square mile of  the  school

 12  library system;

 13    (f)  In  addition  to any other sum provided  in this subdivision, any

 14  school library system  which  has merged since January  first,  nineteen

 15  hundred eighty-four shall receive fifty thousand dollars annually; and

 16    (g)  In  addition  to any other sum provided in this subdivision, each

 17  school library system  shall  receive  annually    an  automation  grant

 18  amounting  to  ten  percent of the total aid produced for that system by

 19  adding the base grant provided by  paragraph (a), (b), (c),  or  (d)  of

 20  this  subdivision  to  the additional aid provided by paragraphs (e) and

 21  (f) of this subdivision.

 22    2. Before a school library system shall be entitled to receive operat-

 23  ing funds, such system shall submit a plan of  library  service  to  the

 24  executive director for approval. The executive director shall  establish

 25  standards  of  service  for  school  library systems by regulation. Such

 26  regulations  shall contain standards relating to: system staffing; union

 27  catalog and data-base development; interlibrary loan; communications and

 28  delivery;  governance and advisory committees; membership  criteria  and

                                        198                        12022-01-1

  1  the means of relating district library resources and programs  to  those

  2  of  the  system;  non-public  school  participation;  and procedures for

  3  submission and approval of plans and certification of membership.

  4    3.  The  moneys   made   available   pursuant to this section shall be

  5  distributed to each school library system whose plan of service has been

  6  approved under the provisions of subdivision two of this section.

  7    4. Each  school  library  system receiving state aid pursuant to  this

  8  section shall furnish such information regarding its library service  as

  9  the executive director may from time to time require to determine wheth-

 10  er  it  is operating   in  accordance with its plan and the standards of

 11  service he or she has established. The executive director  may  at   any

 12  time  after   affording   notice and an  opportunity to be heard, revoke

 13  approval of a plan of library service if he or she finds that the school

 14  library system no longer conforms to its approved plan,  the  provisions

 15  of this section or the regulations promulgated by the executive director

 16  hereunder;    or, in the   case of  provisional approval, if such school

 17  library system no longer conforms to the agreement, plans or  conditions

 18  upon  which  such  provisional approval was based. In such case a school

 19  library system shall not thereafter be entitled to state aid pursuant to

 20  this  section unless and until its  plan  of library  service  is  again

 21  approved by the executive director.

 22    § 43.06. State aid for cooperation with state correctional facilities.

 23  Each  public  library  system which has a state correctional facility or

 24  facilities within its area of service shall be awarded a grant  of  nine

 25  dollars  twenty-five  cents per capita for the inmate population of such

 26  facility or facilities upon the approval by the executive director of  a

 27  plan  of  service,  negotiated  between the area correctional facilities

 28  libraries and the corresponding library systems to make available to the

                                        199                        12022-01-1

  1  inmate population of such facility or facilities the  library  resources

  2  of such system.  Plans shall also include organizing and providing eval-

  3  uation and accountability procedures and records for each region.

  4    § 43.07. Grants-in-aid to public television and radio corporations and

  5  public  radio  stations.    1.  There  shall be apportioned annually, as

  6  assistance for approved  operating  expenses of public television corpo-

  7  rations governed by the  provisions  of  this  section,  an  amount  not

  8  exceeding  the    product  of    the number of residents of the state as

  9  determined from the nineteen hundred  eighty  decennial  federal  census

 10  multiplied by one dollar and forty cents. Such amount shall be allocated

 11  to  each  such corporation in accordance with a formula and schedule  of

 12  payments developed by the executive director and approved by the  direc-

 13  tor of the division of the budget.

 14    2. The formula and schedule of payments developed pursuant to subdivi-

 15  sion one of this section shall include provision for an amount not  less

 16  than twenty percent of the total state operating assistance for instruc-

 17  tional  television services to be provided to local educational agencies

 18  by public television corporations through agreements with  local  school

 19  districts, subject to the approval of the executive director.

 20    3. There  shall  be  annually  apportioned  funds  for the payment  of

 21  approved capital expenses of  educational  television  corporations  and

 22  public radio stations in such amounts and in such manner as the legisla-

 23  ture shall provide.

 24    4.  There  shall  be  apportioned annually, as assistance for approved

 25  radio programming  operating  expenses,  an  amount  not  exceeding  one

 26  hundred  ten thousand dollars to each public television and radio corpo-

 27  ration, governed by the provisions of this section, and to  each  public

 28  radio  station,  as defined in   subdivision  six  of  this  section and

                                        200                        12022-01-1

  1  paid in accordance with a formula and schedule of payments developed  by

  2  the  executive  director and approved by the director of the division of

  3  the  budget.  Recipients  of  assistance shall  render  a  fiscal report

  4  to  the  executive  director  not later than December first of each year

  5  upon such matters as the executive   director may   require   and  shall

  6  furnish  annually such other fiscal reports as he/she may require.

  7    5. On or before November first in each year, the board of trustees  of

  8  the   office  of  cultural resources shall submit to the division of the

  9  budget a plan outlining a matching capital grant  program  for  approved

 10  capital  expenses  of  public  television  and/or radio corporations and

 11  public radio stations to meet their placement  costs  of  capital  items

 12  including  towers, antennas, transmitters, videotape recorders, cameras,

 13  film chains, control room equipment, buildings and building renovations.

 14    6. Notwithstanding any other provisions of law, for purposes  of  this

 15  subdivision  the term "public radio station" shall mean a non-profit and

 16  noncommercial radio station which meets the following requirements:

 17    (a) The station shall be licensed to:

 18    (i) an institution chartered by the board of regents;

 19    (ii) an agency of a municipal corporation; or

 20    (iii)  a  corporation  created  in  the state education department and

 21  within the university of the state of New York.

 22    (b) The station other than stations operated by corporations  approved

 23  for  funding  prior  to  April first, nineteen hundred eighty-five shall

 24  have for a period of three consecutive years immediately prior to appor-

 25  tionment of such money  and  all  recipients  shall  continue  to  after

 26  receipt of such money:

                                        201                        12022-01-1

  1    (i) broadcast at least eighteen hours per day or the maximum hours  of

  2  operation authorized by the federal communications commission, whichever

  3  is less, three hundred sixty-five days per year; and

  4    (ii) operate with a staff of at least five full-time members  paid  at

  5  least    the federal minimum wage, a budget that includes at least nine-

  6  ty-five thousand dollars  of  non-federal  income  of  which  a  reason-

  7  able portion  is  received  from  local  business, foundations, or indi-

  8  vidual contributors paid either directly to   the   radio   station   or

  9  broadcast corporation  or  to a not-for-profit corporation for the bene-

 10  fit  of such radio station and an effective radiated power equivalent to

 11  three thousand watts  at  five  hundred feet above  average  terrain  or

 12  the  maximum  tower  height  authorized  by  the  federal communications

 13  commission, whichever is less for  FM  radio  stations  or  two  hundred

 14  fifty  watts  for  AM radio stations.

 15    §  7. Section 57.01 of the arts and cultural affairs law is amended to

 16  read as follows:

 17    § 57.01. Office of state history. There shall  be  in  the   education

 18  department  office of cultural resources the office of state history.

 19    §  8.  Subdivision 3 of section 57.02 of the arts and cultural affairs

 20  law, as added by chapter 113 of the laws of 1997, is amended to read  as

 21  follows:

 22    3. The  commissioner of education  executive director of the office of

 23  cultural  resources,  through  the  office  of  state  history is hereby

 24  authorized to undertake projects to recognize  New  York  state  history

 25  month.  Such  projects  may include the creation of an essay contest for

 26  state residents who are enrolled in any elementary or  secondary  educa-

 27  tion  program  which shall reflect upon the importance of New York state

 28  history. Any project or projects created pursuant  to  this  subdivision

                                        202                        12022-01-1

  1  may,  in  the  discretion  of  the  commissioner of education  executive

  2  director of the office of  cultural  resources,  authorize  non-monetary

  3  awards  to  be  given to project participants or project winners as such

  4   commissioner  executive director may deem appropriate.

  5    §  9. Section 57.03 of the arts and cultural affairs law is amended to

  6  read as follows:

  7    § 57.03. Functions of the office of state history.  It  shall  be  the

  8  function of the office of state history:

  9    1. To collect, edit and publish, with the approval of the  commission-

 10  er of education  executive director of the office of cultural resources,

 11  any  archives,  records, papers or manuscripts that are deemed essential

 12  or desirable for the preservation of the state's history.

 13    2. To prepare and publish, with the approval of the   commissioner  of

 14  education   executive  director  of the office of cultural resources, or

 15  assist in the preparation and publication  of,  works  relating  to  the

 16  history of the colony and state of New York.

 17    3.  To  acquire,  administer,  preserve,  exhibit,  interpret, and, in

 18  conformity with the regulations of the  commissioner of education  exec-

 19  utive director of the office of cultural resources, to loan, exchange or

 20  dispose of historical objects  of  personal  property  relating  to  the

 21  history  of  the  colony  and state of New York; and to advise any state

 22  agency,  board,  commission,  office,  civil  subdivision,  institution,

 23  organization,  or individual on the acquisition, administration, preser-

 24  vation,  exhibition,  interpretation,  and  disposition  of   historical

 25  objects.

 26    4. To perform the functions of the  state education department  office

 27  of  cultural  resources  set forth in section 19.11 of the parks, recre-

 28  ation and historic preservation law with respect to historic sites under

                                        203                        12022-01-1

  1  the jurisdiction of the office of parks, recreation and historic preser-

  2  vation; and to advise and assist any political subdivision of the  state

  3  and  any  institution,  organization or individual concerning the desig-

  4  nation, acquisition, administration, interpretation, use and disposition

  5  of  any  historic site, property or place relative to the history of the

  6  colony and state of New York, and to coordinate educational programs and

  7  projects at such historic sites or properties.

  8    5. To advise and assist any state agency, board,  commission,  office,

  9  civil  subdivision,  institution  or  organization  in  the planning and

 10  execution of any commemorative event relating  to  the  history  of  the

 11  colony  and  state of New York or New York's participation in commemora-

 12  tive events outside of the state.

 13    6. To perform other functions or duties assigned  the  office  by  the

 14   commissioner of education  executive director of the office of cultural

 15  resources.

 16    §  10.  Subdivisions  1,  7  and  8  of  section 57.05 of the arts and

 17  cultural affairs law are amended to read as follows:

 18    1. There shall be continued within the  education  department   office

 19  of  cultural  resources  the  state  archives.  The state archives shall

 20  acquire, appraise, preserve either in original or duplicate form,  cata-

 21  log,  display,  duplicate  and  make  available for reference and use by

 22  state officials and others those official records that have been  deter-

 23  mined  to  have  sufficient  historical  value or other value to warrant

 24  their continued preservation by the state.

 25    7. The  commissioner of education  executive director of the office of

 26  cultural resources may request the attorney general to  institute  legal

 27  action  for  the  return to the custody of the state of any record which

 28  has not legally been released from state custody.

                                        204                        12022-01-1

  1    8. The state archives may duplicate records in its custody, and certi-

  2  fy under its own official seal to the authenticity of the copies of such

  3  records. The state archives with the approval of  the   commissioner  of

  4  education  executive director of the office of cultural resources and in

  5  accordance  with existing state statutes may dispose of original records

  6  in its custody that have been duplicated.

  7    § 11. Subdivisions 9 and 11 of section 57.05 of the arts and  cultural

  8  affairs  law,  subdivision  9  as amended and subdivision 11 as added by

  9  chapter 42 of the laws of 1987, are amended to read as follows:

 10    9. The  commissioner of education  executive director of the office of

 11  cultural resources shall have the power to promulgate  rules  and  regu-

 12  lations  to  carry  out  the  purposes  of  this  section,  providing no

 13  objection to those rules and regulations  is  made  within  thirty  days

 14  prior to the effective date of the proposed rules and regulations by the

 15  following:  the speaker of the assembly for rules and regulations relat-

 16  ing to the records of the assembly; the temporary president  pro-tem  of

 17  the senate for rules and regulations relating  to  the  records  of  the

 18  senate;  the  director of the division of the budget for rules and regu-

 19  lations relating to records of the  civil  departments;  and  the  chief

 20  administrator  of  the  courts  for  rules  and  regulations relating to

 21  records of the judiciary.

 22    11. The state archives shall establish a state records center consist-

 23  ing of one or  more  depositories  for  nonpermanent  storage  of  state

 24  records  and  shall  be responsible for the preservation and disposal of

 25  such records. Solely for the purposes of carrying out his record-keeping

 26  functions, the  commissioner of education   executive  director  of  the

 27  office of cultural resources shall be empowered:

                                        205                        12022-01-1

  1    (a)  To  assume  responsibility  for the physical possession, storage,

  2  servicing and preservation of state agency  records  accepted  into  the

  3  state  records center, and for the security of the information contained

  4  in or on them. State records stored with the state  archives  shall  for

  5  all  purposes be deemed to be within the possession, custody and control

  6  of the agency that transferred such records.

  7    (b) To authorize the disposal or destruction of state records  includ-

  8  ing books, papers, maps, photographs, microphotographs or other documen-

  9  tary  materials made, acquired or received by any agency. At least forty

 10  days prior to the proposed disposal or destruction of such records,  the

 11   commissioner of education  executive director of the office of cultural

 12  resources  shall  deliver  a  list  of  the records to be disposed of or

 13  destroyed to the attorney general, the comptroller and the state  agency

 14  that  transferred such records. No state records listed therein shall be

 15  destroyed if within thirty days after receipt of such list the  attorney

 16  general,  comptroller, or the agency that transferred such records shall

 17  notify the  commissioner of education  executive director of the  office

 18  of  cultural  resources  that  in  his or her opinion such state records

 19  should not be destroyed.

 20    (c) To agree to the deposit of noncurrent state records in  the  state

 21  records center.

 22    (d)  To  review  plans  submitted  by state agencies for management of

 23  their records and to make recommendations thereupon to the head  of  the

 24  state agency and the director of the division of the budget.

 25    (e)  To  inquire  into  the condition, character, amount and method of

 26  keeping such records.

 27    (f) To develop and implement  a  comprehensive  and  ongoing  training

 28  program in records management for all state agencies.

                                        206                        12022-01-1

  1    (g)  To  provide  technical assistance in records management for state

  2  agencies.

  3    (h)  To provide for the transfer of such records having archival value

  4  from the state records center to the state archives for their  permanent

  5  preservation.

  6    (i)  To  develop  and  implement  a fee schedule, to be adopted by the

  7  board of  regents  trustees of the office of cultural resources pursuant

  8  to rules and regulations adopted in conformity with the  state  adminis-

  9  trative  procedure act, to support records management activities subject

 10  to the following:

 11    (i) the fee schedule may be changed only  once  in  any  twelve  month

 12  period, and

 13    (ii)  after  the  initial fee schedule is established  by the board of

 14  regents , proposed changes to said schedule  must  be  included  in  the

 15  annual  budget  request  submitted  to  the director of the budget. Such

 16  amended fee schedule shall not become effective until enactment  of  the

 17  budget  submitted annually by the governor to the legislature in accord-

 18  ance with article seven of the constitution, and shall generate revenues

 19  consistent with appropriations contained therefor within such budget and

 20  sufficient to cover anticipated expenditures for the  period  for  which

 21  such fees shall be effective.

 22    (j) To promulgate such other regulations as are necessary to carry out

 23  the purposes of this subdivision.

 24    §  12.  Section  57.11 of the arts and cultural affairs law, as renum-

 25  bered by chapter 737 of the laws of 1987, is amended to read as follows:

 26    § 57.11. Penalty. A public officer who refuses or neglects to  perform

 27  any  duty  required  of  him  or her by this article or to comply with a

 28  recommendation of the  commissioner of education  executive director  of

                                        207                        12022-01-1

  1  the  office  of  cultural resources under the authority of this article,

  2  shall for each month of such neglect or refusal, be punished by  a  fine

  3  of not less than twenty dollars.

  4    §  13. Subdivision 6 of section 57.17 of the arts and cultural affairs

  5  law, as added by chapter 737 of the laws of 1987, is amended to read  as

  6  follows:

  7    6.  "Records retention and disposition schedule" means a list or other

  8  instrument describing records  and  their  retention  periods  which  is

  9  issued  by  the   commissioner  of  education  executive director of the

 10  office of cultural resources.

 11    § 14. Section 57.21 of the arts and cultural affairs law,  as  amended

 12  by chapter 203 of the laws of 1995, is amended to read as follows:

 13    § 57.21. Local  government records advisory council. The  commissioner

 14  of education  executive director of the  office  of  cultural  resources

 15  shall  appoint a local government records advisory council consisting of

 16  representatives of local government associations, historians, the  chief

 17  administrative  judge, the commissioner of the department of records and

 18  information services of the city of New York or  its  successor  agency,

 19  other  users  of  local government records, and other citizens. The city

 20  clerk of the city of New York shall be a non-voting  members  member  of

 21  such  advisory  council.   The council shall advise the  commissioner of

 22  education  executive  director  of  the  office  of  cultural  resources

 23  concerning  local  government  records  policies  and  procedures, state

 24  services and financial support needed to assist or  advise  local  offi-

 25  cials,  and  regulations  pertaining  to  local  government records, and

 26  grants for local government records management improvement  pursuant  to

 27  section  57.35  of this  chapter.  The advisory council shall prepare an

 28  initial report on the above matters by December first, nineteen  hundred

                                        208                        12022-01-1

  1  eighty-seven to be provided to the commissioner of education, the gover-

  2  nor, and appropriate committees of the legislature.  The commissioner of

  3  education  shall  not  promulgate regulations for the administration and

  4  maintenance  of  local  government  records  before July first, nineteen

  5  hundred eighty-eight except with prior consultation with and  review  by

  6  the advisory council  article.

  7    §  15.  Section 57.23 of the arts and cultural affairs law, as amended

  8  by chapter 78 of the laws of 1989, is amended to read as follows:

  9    § 57.23. Oversight and advisory services. 1.  It shall be the  respon-

 10  sibility  of  the   commissioner of education  executive director of the

 11  office of cultural resources to advise local governments on planning and

 12  administering programs  for  the  creation,  maintenance,  preservation,

 13  reproduction,  retention,  and  disposition  of their records; to advise

 14  local governments on the development of micrographics systems, automated

 15  data processing systems, and other systems that rely  on  technology  to

 16  create,  store,  manage,  and  reproduce  information or records; and to

 17  advise local governments on the preservation and use  of  vital  records

 18  and  records  with  enduring  value  for  historical  or  other research

 19  purposes.

 20    2. The  commissioner of education  executive director of the office of

 21  cultural resources is authorized to establish requirements for the prop-

 22  er creation, preservation, management and  protection  of  records,  and

 23  shall  develop  statewide  plans  to  ensure  preservation  of  adequate

 24  documentation of the functions, services, and historical development  of

 25  local governments.

 26    3. The  commissioner of education  executive director of the office of

 27  cultural  resources is authorized to promulgate regulations to implement

                                        209                        12022-01-1

  1  the provisions of this article with advice  from  the  local  government

  2  records advisory council.

  3    §  16. Subdivision 2 of section 57.25 of the arts and cultural affairs

  4  law, as added by chapter 737 of the laws of 1987, is amended to read  as

  5  follows:

  6    2.  No  local  officer shall destroy, sell or otherwise dispose of any

  7  public record without the consent of  the   commissioner  of  education 

  8  executive  director  of  the office of cultural resources.  The  commis-

  9  sioner of education   executive  director  of  the  office  of  cultural

 10  resources  shall,  after consultation with other state agencies and with

 11  local government officers, determine the minimum  length  of  time  that

 12  records  need  to be retained. Such  commissioner  executive director is

 13  authorized to develop, adopt by  regulation,  issue  and  distribute  to

 14  local governments records retention and disposition schedules establish-

 15  ing  minimum  legal  retention periods.   The issuance of such schedules

 16  shall constitute formal consent by the  commissioner of education  exec-

 17  utive director of the office of cultural resources to the disposition of

 18  records that have been maintained in excess of the retention periods set

 19  forth in the schedules. Such schedules shall be reviewed and adopted  by

 20  formal  resolution  of the governing body of a local government prior to

 21  the disposition of any records.  If  any  law  specifically  provides  a

 22  retention  period  longer than that established by the records retention

 23  and disposition schedule established herein the retention period  estab-

 24  lished by such law shall govern.

 25    §  17. Section 57.27 of the arts and cultural affairs law, as added by

 26  chapter 737 of the laws of 1987, is amended to read as follows:

 27    § 57.27. Records with statewide  significance.  The   commissioner  of

 28  education   executive  director  of  the office of cultural resources is

                                        210                        12022-01-1

  1  authorized to designate particular local government records  for  perma-

  2  nent retention because of their enduring statewide significance.

  3    §  18. Section 57.29 of the arts and cultural affairs law, as added by

  4  chapter 737 of the laws of 1987, is amended to read as follows:

  5    § 57.29. Reproduction of records and  disposition  of  the  originals.

  6  Any  local  officer  may  reproduce  any record in his or her custody by

  7  microphotography  or  other  means  that   accurately   and   completely

  8  reproduces  all  the  information  in the record. Such official may then

  9  dispose of the original record even though it has not met the prescribed

 10  minimum legal retention period, provided that the  process  for  reprod-

 11  uction  and  the  provisions  made for preserving and examining the copy

 12  meet requirements established by the  commissioner of education   execu-

 13  tive  director  of  the office of cultural resources. Such copy shall be

 14  deemed to be an original record for all purposes, including introduction

 15  as evidence in proceedings before all courts  and  administrative  agen-

 16  cies.

 17    §  19. Section 57.31 of the arts and cultural affairs law, as added by

 18  chapter 737 of the laws of 1987, is amended to read as follows:

 19    § 57.31. Cooperative records storage and management. All local govern-

 20  ment records shall be kept in secure facilities maintained by the  local

 21  government  unless the consent of the  commissioner of education  execu-

 22  tive director of the office of cultural resources is obtained  to  their

 23  transfer  and storage elsewhere. Any local government may cooperate with

 24  another local government or governments for the improved management  and

 25  preservation  of  records,  and may enter into a contractual arrangement

 26  for such purposes.

                                        211                        12022-01-1

  1    § 20. Subdivision 2 of section 57.33 of the arts and cultural  affairs

  2  law,  as  amended by chapter 203 of the laws of 1995, is amended to read

  3  as follows:

  4    2.  The  records of any city with a population of one million or more,

  5  and the records  of  any  county  contained  therein,  so  long  as  the

  6  destruction  of  the records of such city or county shall be carried out

  7  in accordance with the procedure prescribed by any existing  law  exclu-

  8  sively  applicable  to  the  destruction  of the records of such city or

  9  county, provided that section 57.35  of  this  article  shall  apply  to

 10  grants for local government records management for supreme court records

 11  in  the custody of the counties of New York, Kings, Queens, Richmond and

 12  Bronx, and records under the jurisdiction of the department  of  records

 13  and  information services of the city of New York or its successor agen-

 14  cy, and records under the jurisdiction of the city clerk of the city  of

 15  New  York. If any such law shall be amended by local law after the first

 16  day of July, nineteen hundred fifty-one, the provisions of this  section

 17  shall  not  apply  to  the destruction of such records if the procedures

 18  therefor established by such law, as amended  by  local  law,  shall  be

 19  acceptable  to the  commissioner of education  executive director of the

 20  office of cultural resources.

 21    § 21. Section 57.35 of the arts and cultural affairs law, as added  by

 22  chapter 78 of the laws of 1989, subdivision 1 as amended and subdivision

 23  2-a  as  added by chapter 203 of the laws of 1995, is amended to read as

 24  follows:

 25    § 57.35. Grants for local government records  management  improvement.

 26  1.  The   commissioner of education  executive director of the office of

 27  cultural resources, upon consultation with the local government  records

 28  advisory  council,  is authorized to award grants for records management

                                        212                        12022-01-1

  1  improvement as specified in sections 57.19, 57.25, 57.29  and  57.31  of

  2  this   chapter  article to individual local governments, groups of coop-

  3  erating local governments and local governments  that  have  custody  of

  4  court  records  and for records management improvement for supreme court

  5  records in the custody of the counties of New York, Kings, Queens, Rich-

  6  mond, and Bronx  and  in  accordance  with  subdivision  two-a  of  this

  7  section, records under the jurisdiction of the department of records and

  8  information services of the city of New York or its successor agency and

  9  the city clerk of the city of New York.

 10    2. The  commissioner of education  executive director of the office of

 11  cultural  resources shall promulgate rules and regulations setting forth

 12  criteria and procedures necessary to award grants for records management

 13  improvement from monies available for this purpose in the New York state

 14  local government records management improvement fund, established pursu-

 15  ant to section ninety-seven-i of the state finance law.

 16    Such criteria shall include but not be limited to:

 17    (a) the development by the applicant of a written plan for  a  records

 18  management program;

 19    (b) the condition of the records of the applicant;

 20    (c)  the geographic location of the applicant so as to provide, to the

 21  extent practicable, equitable geographic distribution of the grants;

 22    (d) the  particular  design  of  the  applicant's  records  management

 23  program; and

 24    (e)  the  applicant's  arrangements  for  cooperative activities among

 25  local governments for a records management program.

 26    2-a.  (a) Notwithstanding the provision of paragraph (c)  of  subdivi-

 27  sion  two  of  this  section,  the  commissioner of education  executive

 28  director of the office of cultural resources may award  grants  totaling

                                        213                        12022-01-1

  1  in  the  aggregate no more than one million dollars annually for records

  2  management improvement to the  department  of  records  and  information

  3  services  of  the  city of New York or its successor agency and the city

  4  clerk  of the city of New York in accordance with the provisions of this

  5  subdivision.

  6    (b) The department of records and information services or its  succes-

  7  sor  agency  and  the  city  clerk  of the city of New York shall submit

  8  applications to the  commissioner of education   executive  director  of

  9  the office of cultural resources at the same time as applications pursu-

 10  ant to subdivision two of this section are required to be submitted. The

 11  applications shall set forth the records management improvement projects

 12  proposed  by  the  department of records and information services or its

 13  successor agency and the city clerk of the city of New York is  priority

 14  order  and the amount requested for each project. Priority assignment of

 15  each project shall be a factor taken into consideration in  addition  to

 16  those  outlined  in  subdivision  two  of this section when making grant

 17  awards.

 18    (c) Upon receipt of grant monies, the commissioner of  the  department

 19  of records and information services or its successor agency and the city

 20  clerk  of  the  city  of New York shall direct the disbursement of grant

 21  monies to each project for which a grant has been approved.

 22    (d) The commissioner of the  department  of  records  and  information

 23  services  or  its successor agency and the city clerk of the city of New

 24  York shall, in addition to monitoring  the  progress  of  and  providing

 25  technical  assistance  to  projects  receiving  awards  pursuant to this

 26  subdivision, prepare and submit progress reports on such projects.  Such

 27  reports  shall  be  at  the  level of detail and frequency comparable to

                                        214                        12022-01-1

  1  reports required of other local governments receiving awards pursuant to

  2  this section.

  3    3.  All  monies  received by the  commissioner of education  executive

  4  director of the office of cultural resources under the provisions of the

  5  third undesignated paragraph of subdivision (a) of section  eight  thou-

  6  sand  eighteen,  subparagraph  b of paragraph four of subdivision (a) of

  7  section eight thousand twenty-one and subparagraph b of paragraph eleven

  8  of subdivision (b) of section eight thousand  twenty-one  of  the  civil

  9  practice law and rules, and subdivision a of section 7-604 of the admin-

 10  istrative  code  of  the  city  of  New  York, shall be deposited by the

 11   commissioner of education  executive director of the office of cultural

 12  resources to the credit of the New York state local  government  records

 13  management  improvement fund established pursuant to section ninety-sev-

 14  en-i of the state finance law by the tenth day of  the  month  following

 15  receipt of such monies.

 16    4.  Each  year  the  New  York state local government records advisory

 17  council shall review and make recommendations on a proposed  operational

 18  and  expenditure  plan  for  the New York state local government records

 19  management improvement fund prior to its adoption by  the   commissioner

 20  of  education   executive  director of the office of cultural resources.

 21  The annual expenditure plan shall be subject  to  the  approval  of  the

 22  director of the division of the budget.

 23    §  22. Section 57.37 of the arts and cultural affairs law, as added by

 24  chapter 78 of the laws of 1989 and subdivision 1 as amended  by  chapter

 25  203 of the laws of 1995, is amended to read as follows:

 26    § 57.37. Regional  records offices. 1. The  commissioner of education 

 27  executive director of the office of cultural resources is authorized  to

 28  establish  in  each  judicial district, except New York city, a regional

                                        215                        12022-01-1

  1  records office. In New York city, the  commissioner of education  execu-

  2  tive director of the office  of  cultural  resources  is  authorized  to

  3  establish a single regional records office to oversee records management

  4  programs  for entities within the city of New York whose records are not

  5  under the jurisdiction of the  department  of  records  and  information

  6  services  or  its successor agency and the city clerk of the city of New

  7  York.

  8    2. The regional records offices shall provide advisory  and  consulta-

  9  tive  services  and technical assistance to local governments on records

 10  management and the administration of archival records and address recom-

 11  mendations of the New York state local government records advisory coun-

 12  cil.

 13    3. The  commissioner of education  executive director of the office of

 14  cultural resources  is  authorized  to  employ  specialists  in  records

 15  management,  archives  administration and other specialists necessary to

 16  provide advisory, consultative and technical assistance to local govern-

 17  ments from monies available for this purpose in the New York state local

 18  government records management improvement fund, established pursuant  to

 19  section ninety-seven-i of the state finance law.

 20    §  23. Section 57.39 of the arts and cultural affairs law, as added by

 21  chapter 78 of the laws of 1989, is amended to read as follows:

 22    § 57.39. Reporting requirements. The  commissioner of education  exec-

 23  utive director of the office of cultural resources, with the  advice  of

 24  the  New  York  state  local  government records advisory council, shall

 25  report annually on or before March first to the governor and the  legis-

 26  lature on the status of local government records management, including a

 27  report  of  revenues  and  expenditures  from  the  New York state local

                                        216                        12022-01-1

  1  government records management improvement fund for the previous calendar

  2  year and appropriate recommendations.

  3    §  24.  The  arts  and cultural affairs law is amended by adding a new

  4  section 57.40 to read as follows:

  5    § 57.40.   Historical documentary heritage   grants   and   aid.    1.

  6  Short  title. This   section shall be known and may be cited as the "New

  7  York documentary heritage act".

  8    2. Definitions. As used in this section,  the  following  terms  shall

  9  mean:

 10    (a) "Historical records". Records that contain significant information

 11  that  is  of  enduring  value  and  are  therefore  worthy  of long-term

 12  retention and systematic  management.  Historical  records  may  include

 13  diaries,  journals,  ledgers, minutes, reports, photographs, maps, draw-

 14  ings, blueprints, agreements, memoranda, deeds, case  files,  and  other

 15  material. They may take any of several physical forms: parchment, paper,

 16  microfilm,  cassette  tape,  film, videotape, computer tapes, discs, and

 17  other "machine readable" formats.

 18    (b) "Historical records program". Any deliberate, organized program to

 19  collect,  hold, care for, and make available historical records, includ-

 20  ing identifying, appraising, arranging, describing, and referencing them

 21  and using them in exhibitions and other public and educational programs.

 22    (c) "Institutions eligible for  historical  records  program  grants".

 23  Chartered  or  incorporated  nonprofit  archives,  libraries, historical

 24  societies and museums and other nonprofit institutions in New York state

 25  which operate historical records programs and which meet standards to be

 26  established  by  the  executive  director  of  the  office  of  cultural

 27  resources   pursuant   to   regulations   adopted   for  such  purposes.

 28  Institutions  operated  by state or  federal  government  agencies,  and

                                        217                        12022-01-1

  1  local government archives shall not be eligible for  historical  records

  2  project  grants,  except  that an institution of the state university of

  3  New York or the city university of New York  may  apply  for  historical

  4  records  project  grants  with  regard  to  records  other than internal

  5  records generated by the institution after July first, nineteen  hundred

  6  forty-eight  if it is a component of the state university of New York or

  7  after  July first,  nineteen  hundred  seventy-nine if it is a component

  8  of the city university of New York or after the subsequent date on which

  9  the institution became a component of such university.

 10    (d)  "Historical  records program project". A project to carry out one

 11  or more of  the  activities  described  in  subdivision  three  of  this

 12  section.

 13    (e) "Cooperative project". A collaborative effort undertaken by two or

 14  more  historical records programs, to meet shared needs or to accomplish

 15  a common purpose, or a project  undertaken  by  a  service  provider  to

 16  address the historical records needs of more than one historical records

 17  program.

 18    (f)  "Regional  advisory  and  assistance  agency".  A  reference  and

 19  research library resources system, or an alternate public  or  nonprofit

 20  agency  or  organization  willing  to provide historical records program

 21  development advice and assistance  services  covering  a  reference  and

 22  research  library  resources  system  region  which is acceptable to the

 23  executive director of the office of cultural resources.

 24    (g) "Historical records program development  advice  and  assistance".

 25  Advice and assistance on the development and strengthening of historical

 26  records  programs,  promotion  of cooperation, coordinated documentation

 27  planning, training in historical records management  techniques,  advice

 28  and assistance in reporting of information concerning historical records

                                        218                        12022-01-1

  1  to  statewide and national data bases where appropriate, and initiatives

  2  to increase public awareness  of  the  values  and  uses  of  historical

  3  records.

  4    (h) "Service provider". A nonprofit professional or other association,

  5  local  government,  college or university, historical service agency, or

  6  other nonprofit institution or system which provides services to histor-

  7  ical records programs.

  8    (i) "Cost sharing". Local funds, local  in-kind  services,  and  other

  9  funds and support from other than state sources.

 10    (j)  "Program  year".  The  annual period from July first through June

 11  thirtieth.

 12    3. Scope of activities to be supported. The executive director of  the

 13  office  of cultural resources is authorized to provide grants and advice

 14  to institutions eligible for historical records programs and cooperative

 15  projects,  and aid to regional  advisory  and  assistance  agencies, the

 16  central  administration  of  the  state  university  of New York and the

 17  central administration of the city university of New York. Grants  shall

 18  be  used  to  support  the  development and administration of historical

 19  records programs; the surveying, appraisal, identification,  collection,

 20  duplication,  arrangement,  description, and making available of histor-

 21  ical records; public and educational programming relating to  historical

 22  records;  projects  to  improve  archival  techniques;  and  projects to

 23  promote the research use of historical records. Aid to regional advisory

 24  and assistance agencies shall be used to promote and assist the develop-

 25  ment of historical records programs. Aid to the central  administrations

 26  of  the state university of New York and the city university of New York

 27  shall be used to develop guidelines, policies and procedures,  training,

 28  technical  assistance,  materials,  oversight, retention and disposition

                                        219                        12022-01-1

  1  schedules for university records, and to promote, guide and  direct  the

  2  component  institutions of such universities in the sound administration

  3  of archival records.

  4    4. Distribution of funds. (a) Historical  documentary  heritage  funds

  5  shall  be  distributed as follows: (i) Grants. (1) individual historical

  6  records program projects shall be  eligible  for  at  least  thirty-five

  7  percent of the amount available;

  8    (2) cooperative projects shall be eligible for up to twenty percent of

  9  the amount available.

 10    (ii)  Aid.  (1)  regional  advisory  and  assistance agencies shall be

 11  eligible for forty percent of the amount available;

 12    (2) the central administration of the state  university  of  New  York

 13  shall  be  eligible  for  two  and  one-half percent of the total amount

 14  available;

 15    (3)  the  central  administration  of  the city university of New York

 16  shall be eligible for two and  one-half  percent  of  the  total  amount

 17  available.

 18    (b)  Notwithstanding  the  provisions of subparagraphs (i) and (ii) of

 19  paragraph (a) of this subdivision, the executive director of the  office

 20  of  cultural  resources,  taking into account the recommendations of the

 21  New York state historical records advisory board, may  distribute  funds

 22  designated  for  one  purpose  to  address the needs of another purpose,

 23  provided that the executive director determines that the significance of

 24  the contributions to be realized from  the  proposals  in  one  category

 25  outweighs  the significance of the contributions to be realized from the

 26  proposals in another category.

 27    5. Cost-sharing. The executive director  of  the  office  of  cultural

 28  resources  shall  determine  the  amount  of  cost-sharing required from

                                        220                        12022-01-1

  1  historical  records programs, including cooperative programs.  For indi-

  2  vidual  historical records program   projects   involving   arrangement,

  3  description, and other work relating directly to the  administration  of

  4  historical  records  held  by a program, the amount of such cost-sharing

  5  shall be at least fifty percent.

  6    6. Applications for historical records program projects.  (a)  Filing.

  7  By  dates determined by the executive director of the office of cultural

  8  resources each year, an eligible institution may file an application, in

  9  a form prescribed by the executive director of the  office  of  cultural

 10  resources,  for  a  grant  to  support  the approved costs of a proposed

 11  historical records project.

 12    (b) Content. Such application shall include, but need not  be  limited

 13  to:

 14    (i)  a  statement  describing  the  applicant's  need  for the funding

 15  requested;

 16    (ii) collection statements and policies used  by  the  institution  to

 17  guide its acquisition efforts;

 18    (iii)  a summary description of the records included in the historical

 19  records program of the institution;

 20    (iv)  the status of finding aids and published guides for  the histor-

 21  ical records held by the institution;

 22    (v)  the  current and/or anticipated level of use and audience for the

 23  historical records;

 24    (vi) the importance of the historical records for documenting life  in

 25  New York;

 26    (vii)  the  expected  impact  of the grant upon the historical records

 27  program;

                                        221                        12022-01-1

  1    (viii) the plan of work for the activities for which  the  funding  is

  2  sought;

  3    (ix)  the  proposed project budget, including cost-sharing which would

  4  be committed to the project; and

  5    (x) the staff and other resources devoted to the institution's histor-

  6  ical records program on an ongoing basis.

  7    (c)  Approval. In approving any application pursuant to  this subdivi-

  8  sion, the  executive director of the office of cultural resources  shall

  9  consider:

 10    (i) information in the proposal as set forth in paragraph (b) of  this

 11  subdivision;

 12    (ii)  the  capacity  of the institution to make the historical records

 13  known and accessible for research, education, public programs,  improved

 14  policy making and other public benefits;

 15    (iii) the potential for improving the documentation of the heritage of

 16  any racial and ethnic group; and

 17    (iv) the potential for improving the documentation of under documented

 18  subjects, institutions, or activities.

 19    7. Application  for  cooperative  projects. (a) Filing. By dates to be

 20  established  by  the  executive  director  of  the  office  of  cultural

 21  resources  each  year,  a  service  provider  or an eligible institution

 22  acting as fiscal agent on behalf of a group  of  eligible  institutions,

 23  may  file an application, in a form prescribed by the executive director

 24  of the office of cultural resources. A group of cooperating institutions

 25  may be formed because of  a  common  purpose,  rather  than  because  of

 26  geographical proximity.

 27    (b)  Content.  Such application shall include, but need not be limited

 28  to:

                                        222                        12022-01-1

  1    (i) a statement  describing  the  applicant's  need  for  the  funding

  2  requested;

  3    (ii)  a  description  of  the issue, problem, or need that the project

  4  will address;

  5    (iii) a description of the historical records programs  to  be  served

  6  and  how the effort to be undertaken in a cooperative project relates to

  7  and will strengthen these programs;

  8    (iv) description of the plan of work for the project;

  9    (v) outcome or product of the project and  how  it  will  improve  the

 10  identification and administration of historical records or contribute to

 11  the strengthening of historical records programs; and

 12    (vi)  the  proposed  budget,  including  cost-sharing  that  would  be

 13  contributed to the project.

 14    (c)  Approval.  In approving any application pursuant to this subdivi-

 15  sion, the executive director of the office of cultural  resources  shall

 16  consider:

 17    (i)   information   in   the proposal as set forth in paragraph (b) of

 18  this subdivision;

 19    (ii) the importance of the records involved for the  documentation  of

 20  life in New York state;

 21    (iii)  the importance of the project and the intended outcome or prod-

 22  uct in terms of strengthening the programs  of  the  cooperating  insti-

 23  tutions and promoting improved historical records management;

 24    (iv) the capacities of the cooperating institutions or service provid-

 25  ers  for carrying out the project, including prior experience with coop-

 26  erative or service projects; and

 27    (v) the potential for cooperating institutions to sustain  an  ongoing

 28  productive cooperative relationship as a result of the project.

                                        223                        12022-01-1

  1    8. Aid  for  regional  advisory  and assistance agencies. (a)  Coordi-

  2  nation.   The executive director of the  office  of  cultural  resources

  3  shall  establish  statewide priorities for regional advisory and assist-

  4  ance agencies and shall assist and coordinate their efforts.

  5    (b) Historical records program advice  and  assistance  plans.  To  be

  6  eligible  to  receive aid annually, each participating regional advisory

  7  and assistance agency shall submit an annual workplan acceptable to  the

  8  executive  director  of the office of cultural resources, and, after the

  9  first year of receiving aid, a report on activities of  the  prior  year

 10  and  a  five-year plan, by dates designated by the executive director of

 11  the office of cultural resources. The five-year plan shall outline goals

 12  and objectives to be accomplished in the  region  during  the  five-year

 13  period.  The annual workplan shall describe the activities to be carried

 14  out during the  year  and  the  program  advice  and  assistance  to  be

 15  provided.  The  five-year  plans  and the annual workplans shall reflect

 16  regional priorities and shall be consistent  with  statewide  priorities

 17  established  by  the  executive  director  of  the  office  of  cultural

 18  resources.

 19    (c) Aid. The executive director of the office  of  cultural  resources

 20  shall  each  year  determine  the  distribution  of  aid  among eligible

 21  regional advisory and assistance agencies. In doing so, he or she  shall

 22  take  into account the level of resources needed to provide the services

 23  described in paragraphs (f) and (g) of subdivision two of  this  section

 24  in  a satisfactory manner, the extent of the geographical area served by

 25  each agency, and the size of the population served by each  agency,  and

 26  shall  distribute the available funds in such a manner as will best give

 27  effect to this section.

                                        224                        12022-01-1

  1    9. Aid for state university of New York and  city  university  of  New

  2  York.   To   be  eligible  to receive aid annually, the central adminis-

  3  tration of the state university of New York  and  the  central  adminis-

  4  tration  of  the city university of New York shall each submit an annual

  5  workplan acceptable to the executive director of the office of  cultural

  6  resources,  and,  after  the  first  year  of receiving aid, a report on

  7  activities of the prior year and a five-year plan.

  8    10. Regulations. The executive director  of  the  office  of  cultural

  9  resources  shall  adopt  regulations to implement the provisions of this

 10  section.

 11    §  25.  Subdivisions 3 and 4 of section 97-i of the state finance law,

 12  subdivision 3 as amended by chapter 57 of the laws  of  1993,  paragraph

 13  (i)  of  subdivision  3 as amended by chapter 82 of the laws of 1995 and

 14  subdivision 4 as added by chapter 78 of the laws of 1989, are amended to

 15  read as follows:

 16    3. The monies in such fund, when  allocated,  shall  be  available  as

 17  follows:  (i)  two  million  three  hundred  thousand  dollars  per year

 18  adjusted annually to reflect the direct and indirect  charges  resulting

 19  from  negotiated  salary  increases may be used for payment of necessary

 20  and reasonable expenses incurred  by  the   commissioner  of  education 

 21  executive  director  of the office of cultural resources in carrying out

 22  the advisory services required in subdivision one of  section  57.23  of

 23  the arts and cultural affairs law and to implement sections 57.21, 57.35

 24  and 57.37 of the arts and cultural affairs law;

 25    (ii)  not  less  than  five hundred thousand dollars per year shall be

 26  made available to  the  Documentary  Heritage  program  as  provided  in

 27   section  140  of  the  education  law   section  57.40  of the arts and

 28  cultural affairs law;

                                        225                        12022-01-1

  1    (iii) not less than three hundred thousand dollars per year  shall  be

  2  made  available  to the New York state archives partnership trust estab-

  3  lished in chapter 758 of the laws of 1992; and

  4    (iv)  the  remainder  of  the monies in the fund shall be used for the

  5  award of grants to individual local governments or groups of cooperating

  6  local governments as provided in section 57.35 of the arts and  cultural

  7  affairs law.

  8    4.  Monies  shall be payable from the fund on the audit and warrant of

  9  the comptroller on vouchers approved by the  commissioner of  education 

 10  executive  director of the office of cultural resources or by an officer

 11  or employee of  the   commissioner  of  education   office  of  cultural

 12  resources designated by the  commissioner of education  executive direc-

 13  tor of the office of cultural resources.

 14    § 26. Section 19.11 of the parks, recreation and historic preservation

 15  law is amended to read as follows:

 16    §  19.11  Functions  of   education department  the office of cultural

 17  resources.  Upon the request of the commissioner,  the  following  func-

 18  tions  relating  to  identification,  restoration  and  educational  and

 19  cultural interpretation of historic sites and places of historic  inter-

 20  est  shall be performed by the  education department  office of cultural

 21  resources:

 22    1. Preparation of interpretative literature, the texts  of  signs  and

 23  markers,  exhibition,  and  other  presentations designed to utilize the

 24  educational potential of historic sites.

 25    2. Advising the office with respect to the custody, use,  cataloguing,

 26  restoration  and  control  of  original  documents  and objects (such as

 27  furniture, paintings,  equipment,  records,  drawings,  manuscripts  and

 28  maps)  having unique historic significance. The office may assign to the

                                        226                        12022-01-1

  1   education department  office of cultural resources, and the   education

  2  department  office of cultural resources may accept, custody and control

  3  of any such original documents or objects.

  4    3. Evaluation of the historic significance of historic sites, historic

  5  site  development projects and places of historic interest; and advising

  6  the office with respect to the restoration, interpretation and use ther-

  7  eof.  The office shall request the evaluation of the  education  depart-

  8  ment   office  of cultural resources before approving the acquisition of

  9  an historic site or the undertaking  of  an  historic  site  development

 10  project.

 11    4.  Such  other  functions relating to the identification, restoration

 12  and educational interpretation of historic sites as may be  agreed  upon

 13  between  the  office  and  the  education department  office of cultural

 14  resources.

 15    § 27. Paragraph (c) of subdivision 1 of section 169 of  the  executive

 16  law,  as  amended by chapter 634 of the laws of 1998, is amended to read

 17  as follows:

 18    (c) commissioner of agriculture and markets, commissioner of  alcohol-

 19  ism  and  substance  abuse  services, adjutant general, commissioner and

 20  president of state civil service commission,  commissioner  of  economic

 21  development,  chair  of  the  energy research and development authority,

 22  executive director of the board of real property services, president  of

 23  higher  education  services corporation, commissioner of motor vehicles,

 24  member-chair of board of parole, director of probation and  correctional

 25  alternatives,  chair  of public employment relations board, secretary of

 26  state, chair of the state racing and  wagering  board,  commissioner  of

 27  alcoholism and substance abuse services, executive director of the hous-

 28  ing finance agency, commissioner of housing and community renewal, exec-

                                        227                        12022-01-1

  1  utive  director  of  state  insurance  fund, commissioner-chair of state

  2  liquor authority, chair of the  workers'  compensation  board, executive

  3  director of the office of cultural resources;

  4    §  28.  The  opening  paragraph  of subdivision 5 and subdivision 6 of

  5  section 97-oo of the state finance law, as added by chapter 554  of  the

  6  laws of 1993, are amended to read as follows:

  7    Moneys  in  the state land biodiversity stewardship account, following

  8  appropriation by the legislature, shall be available to  the  department

  9  of  environmental conservation, office of parks, recreation and historic

 10  preservation, and the  New  York  state  museum  within  the   education

 11  department  office of cultural resources for the following purposes:

 12    6.  No  more than two-thirds of the moneys deposited in the state land

 13  biodiversity stewardship account may be used for personal service  costs

 14  incurred  by  the  department  of  environmental conservation, office of

 15  parks, recreation and historic preservation,  and  the  New  York  state

 16  museum  within  the   education department  office of cultural resources

 17  for the purposes set forth in subdivision  five  of  this  section.  The

 18  remaining  moneys  deposited  in  the account may be utilized to support

 19  projects undertaken by contracts with non-profit conservation  organiza-

 20  tions,  scientific  institutions,  and  other qualified entities for the

 21  purposes set forth in subdivision five of this section.

 22    § 29. Section 97-ddd of the state finance law, as added by section  80

 23  of  part  A  of  chapter  436 of the laws of 1997, is amended to read as

 24  follows:

 25    § 97-ddd.  Education archives account.   1.   There is  hereby  estab-

 26  lished in the joint custody of the state comptroller and the commission-

 27  er of the department of taxation and finance an account of the miscella-

                                        228                        12022-01-1

  1  neous  special  revenue  fund  to  be  known  as  the education archives

  2  account.

  3    2.  Notwithstanding any other law, rule or regulation to the contrary,

  4  the  state  comptroller is hereby authorized and directed to receive for

  5  deposit to the credit of the education archives account, fees, including

  6  charge backs to other agencies and department  units  for  research  and

  7  reference  services;    revenue resulting from donations and the sale of

  8  publications; charges for  duplication  of  information  in  any  format

  9  including,  but  not  limited  to electrostatic and photographic copies,

 10  photocopies, microform, or data  discs;  and  public  or  private  funds

 11  received  as  payment  in  lieu  of  honorarium for services rendered by

 12   state education department   office  of  cultural  resources  employees

 13  which  are  related  to  such employees' official duties or responsibil-

 14  ities.

 15    3.  Moneys of this account, following appropriation  by  the  legisla-

 16  ture,  shall  be available to the  state education department  office of

 17  cultural resources for services and expenses of the state  archives  and

 18  records administration.

 19    §  30. Section 97-eee of the state finance law, as added by section 81

 20  of part A of chapter 436 of the laws of 1997,  is  amended  to  read  as

 21  follows:

 22    § 97-eee.  Education library account.  1.  There is hereby established

 23  in  the  joint  custody of the state comptroller and the commissioner of

 24  the department of taxation and finance an account of  the  miscellaneous

 25  special revenue fund to be known as the education library account.

 26    2.  Notwithstanding any other law, rule or regulation to the contrary,

 27  the  state  comptroller is hereby authorized and directed to receive for

 28  deposit to the credit of the education library account, fees,  including

                                        229                        12022-01-1

  1  charge  backs to other state agencies and department units; fees charged

  2  to public or private entities  or  individuals  for  services  including

  3  licenses  or  certificates; fines for overdue or lost materials; charges

  4  for services and data interpretation; donations; sales of excess library

  5  properties; sales of photocopies, microform, data discs, publications or

  6  other  printed or electronic information, including copies of electronic

  7  information purchases from public or private sources for resale to other

  8  public or private entities or individuals; and public or  private  funds

  9  received  as  payment  in  lieu  of  honorarium for services rendered by

 10   state education department   office  of  cultural  resources  employees

 11  which  are  related  to  such employees' official duties or responsibil-

 12  ities.

 13    3.  Moneys of this account, following appropriation  by  the  legisla-

 14  ture,  shall  be available to the  state education department  office of

 15  cultural resources for services and expenses of the state library.

 16    § 31. Subdivisions 3 and 4 of section 97-mmm of the state finance law,

 17  as added by section 89 of part A of chapter 436 of the laws of 1997, are

 18  amended to read as follows:

 19    3.  Notwithstanding any other law, rule or regulation to the contrary,

 20  the comptroller is hereby authorized and directed  to  transfer  to  the

 21  archives records management account, within forty-five days of enactment

 22  of the state budget, fees for records management activities from various

 23  state,  local  and  miscellaneous  agencies, and deposit in the archives

 24  records management account such amounts as determined by a  schedule  of

 25  fees  developed by the  commissioner of education  executive director of

 26  the office of cultural resources and approved by  the  director  of  the

 27  budget, pursuant to section 57.05 of the arts and cultural affairs law.

                                        230                        12022-01-1

  1    4.    Moneys  of this account, following appropriation by the legisla-

  2  ture, shall be available to the  state education department   office  of

  3  cultural resources for services and expenses of archives records manage-

  4  ment.

  5    §  32. Section 97-ppp of the state finance law, as added by section 91

  6  of part A of chapter 436 of the laws of 1997,  is  amended  to  read  as

  7  follows:

  8    §  97-ppp.  Education museum account.  1.  There is hereby established

  9  in the joint custody of the state comptroller and  the  commissioner  of

 10  the  department  of taxation and finance an account of the miscellaneous

 11  special revenue fund to be known as the education museum account.

 12    2.  Notwithstanding any other law, rule or regulation to the contrary,

 13  the state comptroller is hereby authorized and directed to  receive  for

 14  deposit  to  the credit of the education museum account, fees, including

 15  charge backs to other state agencies and department units; fees  charged

 16  for  the  use of museum facilities or for services including licenses or

 17  certificates; charges for services and data  interpretation;  donations;

 18  sales of photocopies, microform, data discs, publications or other mate-

 19  rials, including the sale of excess museum properties; public or private

 20  funds  received for research activities managed by the state museum; and

 21  from public or private funds received as payment in lieu  of  honorarium

 22  for services rendered by  state education department  office of cultural

 23  resources  employees which are related to such employees official duties

 24  or responsibilities.

 25    3.  Moneys of this account, following appropriation  by  the  legisla-

 26  ture,  shall  be available to the  state education department  office of

 27  cultural resources for services and expenses of the state museum.

                                        231                        12022-01-1

  1    § 33. Paragraph (i) of section 1510 of the not-for-profit  corporation

  2  law, as added by chapter 871 of the laws of 1977 and relettered by chap-

  3  ter 565 of the laws of 1980, is amended to read as follows:

  4    (i) Record of inscriptions to be filed. Whenever, under any general or

  5  special law, any cemetery is abandoned or is taken for a public use, the

  6  town  board  of the town or the governing body of the city in which such

  7  cemetery is located, shall cause to be made, at the time of the  removal

  8  of  the  bodies  interred  therein, an exact copy of all inscriptions on

  9  each headstone, monument, slab or marker erected on each lot or plot  in

 10  such  cemetery  and  shall cause the same to be duly certified and shall

 11  file one copy thereof in the office of the town or  city  clerk  of  the

 12  town  or  city  in  which  such cemetery was located and one copy in the

 13  office of the state historian and chief of the division  of  history  in

 14  the  department of education  office of cultural resources at Albany. In

 15  addition to such inscriptions, such certificate shall state the name and

 16  location  of  the  cemetery  so abandoned or taken for a public use, the

 17  cemetery in which each such body was so interred and the disposition  of

 18  each such headstone, monument, slab or marker.

 19    §  34. Upon enactment of this act and before October 1, 2001, notwith-

 20  standing any inconsistent provision of law to the  contrary,  all  func-

 21  tions,  powers, duties, obligations and assets of the office of cultural

 22  education located within the state education department assigned to  the

 23  office  of cultural resources by this act shall be trans- ferred to such

 24  office.

 25    § 35. Transfer of authority,  administration  and  appropriations.  1.

 26  Notwithstanding any provision of law to the contrary, on and after Octo-

 27  ber  1,  2001,  all obligations of the commissioner of education and the

 28  state education department with respect to the former  sections  of  the

                                        232                        12022-01-1

  1  education  law  pertaining to the cultural education program, museum and

  2  libraries, shall become obligations of the  executive  director  of  the

  3  office  of cultural resources and the office of cultural resources shall

  4  be  responsible  for the administration of the office of cultural educa-

  5  tion formerly located within the education department. The  commissioner

  6  of  education  shall  provide  for  the orderly transfer of all matters,

  7  records and things relating to the office of cultural education and  all

  8  cultural  education  programs,  including  but  not limited to the state

  9  museum, state library, state archives  and  educational  television  and

 10  radio,  and  activities  under this article to the executive director of

 11  the office of cultural resources.   Such transfer may be  subject  to  a

 12  memorandum  of  understanding  between the commissioner of education and

 13  the executive director of the office of cultural  resources  subject  to

 14  the  approval  of the director of the budget. The education commissioner

 15  and the board of regents are authorized and directed to  continue  their

 16  respective  roles,  responsibilities  and  functions  until the board of

 17  cultural resources has been duly constituted pursuant to this act and an

 18  orderly transition has been completed.

 19    2. Notwithstanding the provisions of any  law  to  the  contrary,  the

 20  director  of  the  budget  is  authorized  to  transfer to the office of

 21  cultural resources funds otherwise appropriated  or  reappropriated  for

 22  the  purposes  of this act and any other cultural resources programs and

 23  activities, including, but not limited to, museums, libraries,  archives

 24  and educational television.

 25    §  36.  Transfer  of employees. 1. Upon the transfer of functions from

 26  the former office of  cultural  education  to  the  office  of  cultural

 27  resources  pursuant to section thirty-four of this act, provisions shall

 28  be made for the transfer to the office of cultural  resources  of  those

                                        233                        12022-01-1

  1  employees  of the former office of cultural education who are engaged in

  2  carrying out the functions herein transferred in accordance with section

  3  70 of the civil service law or, where not subject to the  civil  service

  4  law,  the  provisions  of  such  section  70 shall be deemed applicable,

  5  except where the context clearly requires otherwise. Any  such  employee

  6  who,  at  the  time  of  such  transfer,  has a temporary or provisional

  7  appointment shall be transferred subject to the same right  of  removal,

  8  examination  or  termination  as  though such transfer had not been made

  9  except to the extent such rights are modified by a collective bargaining

 10  agreement. Employees holding permanent appointments in competitive class

 11  positions who are not transferred pursuant to this  section  shall  have

 12  their names entered upon an appropriate preferred list for reinstatement

 13  pursuant to the civil service law.

 14    2. A transferred employee shall remain in the same collective bargain-

 15  ing unit as was the case prior to his or her transfer; successor employ-

 16  ees  to the positions held by such transferred employees shall, consist-

 17  ent with the provisions of article 14  of  the  civil  service  law,  be

 18  included  in  the  same unit as their predecessors. Employees other than

 19  management or confidential persons (as defined  in  article  14  of  the

 20  civil  service  law), serving positions in newly created titles shall be

 21  assigned to the appropriate bargaining unit. Nothing contained  in  this

 22  section shall be construed to affect: (a) the rights of employees pursu-

 23  ant  to  a  collective  bargaining  agreement;  (b) the representational

 24  relationships among employee organizations or the  bargaining  relation-

 25  ships  between  the  state and an employee organization; or (c) existing

 26  law with respect to an application to the  public  employment  relations

 27  board,  provided,  however, that the merger of such negotiating units of

                                        234                        12022-01-1

  1  employees shall be affected only with the consent of the recognized  and

  2  certified representative of such units and of the department of law.

  3    3.  Notwithstanding any other law, rule or regulation to the contrary,

  4  any federal funds applicable to expenditures made as a result of  appro-

  5  priations  to  the  office  of cultural education or its programs may be

  6  available to the office of cultural resources subject to the approval of

  7  the director of the budget.

  8    4. All books, papers and property of the  former  office  of  cultural

  9  education  with  respect to the functions, powers and duties transferred

 10  by this act are to be delivered to the office of cultural  resources  at

 11  such place and time, and in such manner as the executive director of the

 12  office of cultural resources requires.

 13    5.  All  rules, regulations, acts, determinations and decisions of the

 14  board of regents, the commis- sioner  of  education  and  the  education

 15  department  with  respect to the administration of this article in force

 16  on the effective date of this section shall continue in force and effect

 17  as rules, regulations, acts, determinations and decisions of  the  board

 18  of  trustees  of the office of cultural resources until duly modified or

 19  repealed by such board of trustees.

 20    6. Any business or other matter undertaken or commenced by the  former

 21  office  of  cultural  education or connected with the functions, powers,

 22  duties and obligations hereby transferred and assigned to the office  of

 23  cultural  resources  and pending on the effective date of this act shall

 24  be conducted and completed by the office of cultural  resources  in  the

 25  same  manner  and  under the same terms and conditions and with the same

 26  effect as if conducted and completed by the former  office  of  cultural

 27  education.

                                        235                        12022-01-1

  1    §  37. Terms occurring in laws, contracts and other documents. Whenev-

  2  er the former office of cultural education or its programs are  referred

  3  to  or  designated  in  any  law, contract or document pertaining to the

  4  functions,   powers,  obligations  and  duties  hereby  transferred  and

  5  assigned,  such reference or designation shall be deemed to refer to the

  6  office of cultural resources or programs of or executive director there-

  7  of.

  8    § 38. Existing rights and remedies preserved.  No  existing  right  or

  9  remedy of any character shall be lost, impaired or affected by reason of

 10  section thirty-four of this act.

 11    §  39. Severability clause. If any clause, sentence, paragraph, subdi-

 12  vision, section or part contained in any  part  of  this  act  shall  be

 13  adjudged  by  any  court  of  competent jurisdiction to be invalid, such

 14  judgment shall not affect, impair, or invalidate the remainder  thereof,

 15  but  shall  be  confined in its operation to the clause, sentence, para-

 16  graph, subdivision, section  or  part  contained  in  any  part  thereof

 17  directly  involved  in the controversy in which such judgment shall have

 18  been rendered. It is hereby declared to be the intent of the legislature

 19  that this act would have been enacted even if  such  invalid  provisions

 20  had not been included herein.

 21    §  40.  This  act shall take effect immediately and shall be deemed to

 22  have been in full force and effect on and after April 1, 2001.

       REPEAL NOTES.--

       1. Section 140 of the education law, proposed to be repealed  by  this

     act, established documentary heritage grants and aid.

       2.  Sections  232,  233,  233-a,  234  and  235  of the education law,

     proposed to be repealed by this act, established the state  library  and

                                        236                        12022-01-1

     state museum within the education department and provided for the admin-

     istration of the state museum.

       3.  Subdivisions 4 and 5 of section 236 of the education law, proposed

     to be repealed by this act, established grants for public television and

     radio.

       4. Sections 245, 246, 247, 248, 249, 250, 251 and 252, proposed to  be

     repealed  by  this  act,  established the powers and duties of the state

     library.

       5. Sections 271, 272, 273 and 273-a, proposed to be repealed  by  this

     act, established state aid for library systems and libraries.

       6.  Sections  284 and 285, proposed to be repealed by this act, estab-

     lished state aid for school library systems and state  aid  for  cooper-

     ation with correctional facilities.

  1                                   PART C

  2    Section  1.  Paragraph (a) of subdivision 2 of section 425 of the real

  3  property tax law, as added by section 1 of part B of chapter 389 of  the

  4  laws of 1997, is amended to read as follows:

  5    (a)  Overview.  There shall be two variations of the exemption author-

  6  ized by this section: an exemption for property  owned  by  persons  who

  7  satisfy  the  criteria  set  forth in subdivision three of this section,

  8  which shall be known as the "basic" STAR exemption, and an exemption for

  9  property owned by senior citizens who satisfy the criteria set forth  in

 10  both  subdivisions  three and four of this section, which shall be known

 11  as the "enhanced" STAR exemption. The exempt amount for  each  assessing

 12  unit  shall  be determined annually as set forth in this subdivision, by

 13  multiplying the "base figure" by  the  locally-applicable  "sales  price

                                        237                        12022-01-1

  1  differential factor," if any, multiplying the product by the appropriate

  2  "equalization  factor"  for  the  assessing  unit,  and,  if  necessary,

  3  increasing the result to equal the applicable  "floor."  The  result  is

  4  then rounded to the nearest multiple of ten dollars.

  5    §  2.  Subdivision  3  of  section 425 of the real property tax law is

  6  amended by adding a new paragraph (d) to read as follows:

  7    (d) Farm dwellings. If legal title to a farm dwelling  is  held  by  a

  8  corporation,  the shareholders of the corporation shall be deemed to own

  9  the property for purposes of this subdivision.   If legal title  to  the

 10  farm  dwelling is held by a partnership, the partners shall be deemed to

 11  own the property for purposes of this subdivision.

 12    § 3. Subparagraph (i) of paragraph (a) of subdivision 4 of section 425

 13  of the real property tax law, as amended by section 4 of part A of chap-

 14  ter 405 of the laws of 1999, is amended to read as follows:

 15    (i) All of the owners must be at least  sixty-five  years  of  age  or

 16  older  as of the date specified herein, or in the case of property owned

 17  by husband and wife or by siblings, one of the owners must be  at  least

 18  sixty-five  years  of age as of that date and the property must serve as

 19  the primary residence of that owner.  For the two thousand--two thousand

 20  one school year, eligibility for the exemption shall be based  upon  age

 21  as  of  December  thirty-first, two thousand. For each subsequent school

 22  year, the applicable date shall be advanced by one year.

 23    § 4. Paragraph (b) of subdivision 4 of section 425 of the real proper-

 24  ty tax law, as amended by section 2 of part A of chapter 56 of the  laws

 25  of 1998, is amended to read as follows:

 26    (b)  Income.  (i) The combined income of all of the owners, and of any

 27  owners' spouses residing on the premises, for the income tax year  imme-

 28  diately preceding the date of making application for the  exemption  may

                                        238                        12022-01-1

  1  not  exceed  sixty thousand dollars  specified herein may not exceed the

  2  applicable income standard determined in the manner specified herein.

  3    (A)  For the two thousand one--two thousand two school year, eligibil-

  4  ity for the exemption shall be based upon income for the income tax year

  5  immediately preceding the date of making application for the  exemption.

  6  The income standard shall be sixty thousand dollars.

  7    (B)  For  the two thousand two--two thousand three school year, eligi-

  8  bility for the exemption shall be based upon income for the  income  tax

  9  year  ending  in two thousand.  The income standard shall be sixty thou-

 10  sand dollars plus an increment to be determined by the  state  board  by

 11  multiplying  sixty  thousand  dollars  by  the  cost-of-living increment

 12  factor for calendar year two thousand (the applicable  "increment  basis

 13  year"), and rounding up to the next higher multiple of fifty dollars. In

 14  no case shall the increment be less than zero.

 15    (C)  For  each  succeeding school year, the applicable income tax year

 16  and "increment basis year" shall be advanced by  one  year.  The  income

 17  standard  shall be the income standard applicable to the previous school

 18  year plus an increment to be determined by the state board by  multiply-

 19  ing  the  previously-applicable  income  standard  by the cost-of-living

 20  increment factor for the increment basis year, and rounding  up  to  the

 21  next higher multiple of fifty dollars. In no case shall the increment be

 22  less than zero.

 23    (D)  The term "increment basis year" as used herein means the calendar

 24  year with respect to which  a  cost-of-living  increment  factor  for  a

 25  school year is determined.

 26    (E)  For  purposes  of this subparagraph, the cost-of-living increment

 27  factor for an increment basis year shall  be  the  "applicable  increase

 28  percentage,"  if  any,  used by the United States commissioner of social

                                        239                        12022-01-1

  1  security pursuant to paragraph (i) of section four  hundred  fifteen  of

  2  title  forty-two  of  the  United  States  code to determine the monthly

  3  social security benefits payable  to  individuals  during  each  of  the

  4  twelve  months  occurring  in  that  increment  basis year. If, due to a

  5  general benefit increase, there was no  applicable  increase  percentage

  6  for  the  increment  basis  year  in  question,  the applicable increase

  7  percentage for purposes of this  section  shall  be  deemed  to  be  the

  8  percentage which would have yielded that general benefit increase. In no

  9  case  shall  the  cost-of-living increment factor determined pursuant to

 10  this provision be less than zero.

 11    (F) On or after August first of  each  year,  the  state  board  shall

 12  determine  the income standard applicable to the ensuing school year and

 13  shall publish a notice in the  state  register  setting  forth  the  new

 14  income  standard  and  the school year to which it applies. In addition,

 15  the board shall give notice thereof to assessors and county directors of

 16  real property tax services, to the director of the budget, and  to  such

 17  other  parties  as  the  board may determine, including news media. Such

 18  information shall also be posted on the state board's website.

 19    (G) Nothing contained herein shall be construed as requiring  that  an

 20  increment  be rounded up if it is already equal to zero or a multiple of

 21  fifty dollars prior to rounding.

 22    (ii) The term "income" as used herein shall mean the  "adjusted  gross

 23  income"  for  federal income tax purposes as reported on the applicant's

 24   latest available  federal or state income tax return for the applicable

 25  income tax year, subject to  any  subsequent  amendments  or  revisions,

 26  reduced  by  distributions,  to  the extent included in federal adjusted

 27  gross income, received from an  individual  retirement  account  and  an

 28  individual retirement annuity; provided that if no such return was filed

                                        240                        12022-01-1

  1   within  the  one  year  period  preceding  taxable status date  for the

  2  applicable income tax year,  "income"  shall  mean  the  adjusted  gross

  3  income that would have been so reported if such a return had been filed.

  4   For  purposes of this subdivision, "latest available return" shall mean

  5  the federal or state income tax return  for  the  tax  year  immediately

  6  preceding  the date of making application, provided however, that if the

  7  tax return for such tax year has not been filed,  then  the  income  tax

  8  return  for the tax year two years preceding the date of making applica-

  9  tion shall be considered the latest available. 

 10    (iii) Any information or documentation submitted by the  applicant  in

 11  connection  with applications for or renewal of the exemption authorized

 12  under this section to verify income, shall be deemed  confidential,  and

 13  the assessor, any municipal officer or municipal employees are prohibit-

 14  ed  from  disclosing  any  such  information,  except for any disclosure

 15  necessary in the performance of their official  duties,  and  except  as

 16  authorized  by  subparagraph  (v)  of  this  paragraph. Any unauthorized

 17  disclosure of such information shall be deemed a  violation  of  section

 18  eight hundred five-a of the general municipal law.

 19    (iv)  The  application  form  for the enhanced exemption authorized by

 20  this subdivision, and for the renewal thereof, shall indicate  that  the

 21  owners  of the property and any owners' spouses residing on the premises

 22  may authorize the assessor to have their income eligibility verified  by

 23  the  state  department  of  taxation  and finance, in lieu of furnishing

 24  copies of the applicable income tax return or returns with the  applica-

 25  tion.  If the owners of the property and any owners' spouses residing on

 26  the premises wish to choose this option, they must furnish their taxpay-

 27  er identification numbers in order to facilitate matching  with  records

 28  of  the department of taxation and finance. If they do so and the asses-

                                        241                        12022-01-1

  1  sor is duly advised in the manner provided by subparagraph (v)  of  this

  2  paragraph that the applicable income eligibility requirements are satis-

  3  fied,  no  other  income documentation shall be required for purposes of

  4  that application.

  5    (v)  The  assessor  shall  forward to the state board, in the time and

  6  manner required by the state board, information identifying the  persons

  7  who  have  authorized  the  department of taxation and finance to verify

  8  whether the applicable income eligibility  requirements  are  satisfied.

  9  The state board shall forward such information to such department in the

 10  manner  provided  by  the  agreement  executed  pursuant  to section one

 11  hundred seventy-one-k of the tax law, and shall notify the  assessor  of

 12  the  response  or responses it receives from such department pursuant to

 13  such agreement. Information obtained by the state board identifying such

 14  persons, and responses obtained from such department shall be  confiden-

 15  tial  and  shall  not  be subject to disclosure under article six of the

 16  public officers law.

 17    § 5. Section 425 of the real property tax law is amended by  adding  a

 18  new subdivision 4-a to read as follows:

 19    4-a.  Special  situations.  (a) Married couples with two or more resi-

 20  dences. A husband and wife may receive an  exemption  pursuant  to  this

 21  section  on no more than one residence, unless living apart due to legal

 22  separation.

 23    (b) Parcels with two or more separate  residences  thereon.    When  a

 24  parcel includes two or more physically separate residences, an exemption

 25  may  be  granted  pursuant  to  this section to each residence which (i)

 26  serves as the primary residence of at least one of  the  owners  of  the

 27  parcel,  and  (ii)  would  be eligible for an exemption pursuant to this

 28  section if it were separately assessed  and  owned  exclusively  by  the

                                        242                        12022-01-1

  1  owner  or  owners  who  reside  therein,  provided  that  only  one such

  2  exemption may be applied to the land included within the parcel.

  3    (c)  Residences  split  by  municipal  boundaries. When an applicant's

  4  primary residence is located in two or more municipal corporations, each

  5  portion of the residence shall be eligible for the exemption provided by

  6  this section if the eligibility requirements  are  otherwise  satisfied,

  7  provided that the exemption shall be pro-rated in the same manner as the

  8  full value of the property was apportioned to each municipal corporation

  9  by  the  respective  assessors,  so that the total tax savings resulting

 10  from the exemption does  not  exceed  the  tax  savings  that  would  be

 11  received  if the residences were contained entirely within one municipal

 12  corporation. The provisions of this paragraph shall not apply  when  the

 13  land associated with a residential structure is located in more than one

 14  municipal  corporation,  but the residential structure itself is located

 15  entirely within one of those municipal corporations.

 16    § 6. Subdivision 6 of section 425 of the  real  property  tax  law  is

 17  amended by adding a new paragraph (e) to read as follows:

 18    (e)  Notwithstanding  the provisions of paragraph (a) of this subdivi-

 19  sion, an application for such exemption may be filed with  the  assessor

 20  after  the  appropriate  taxable status date but not later than the last

 21  date on which a petition with respect to complaints of assessment may be

 22  filed, where failure to file a timely application resulted from:  (i)  a

 23  death  of  the  applicant's spouse, child, parent, brother or sister; or

 24  (ii) an illness of the applicant or of the  applicant's  spouse,  child,

 25  parent,  brother  or  sister, which actually prevents the applicant from

 26  filing on a timely basis, as certified by a  licensed  physician.    The

 27  assessor  shall approve or deny such application as if it had been filed

 28  on or before the taxable status date.

                                        243                        12022-01-1

  1    § 7. Paragraph (b) of subdivision 7 of section 425 of the real proper-

  2  ty tax law, as amended by chapter 447 of the laws of 1998, is amended to

  3  read as follows:

  4    (b)  The exemption provided by this section shall be applied after all

  5  other exemptions allowed by law , including the  exemption  for  persons

  6  sixty-five  years  of  age  or  over  authorized by section four hundred

  7  sixty-seven of this article and the exemption for persons with disabili-

  8  ties and limited incomes authorized by section four hundred fifty-nine-c

  9  of this article,  have been subtracted from the total assessed value  of

 10  the parcel, notwithstanding the provisions of  paragraph (c) of subdivi-

 11  sion  one  of  section  four  hundred  sixty-seven  of  this article and

 12  notwithstanding the provisions of  subdivision  three  of  section  four

 13  hundred  fifty-nine-c  of  this  article,  or  any other  any law to the

 14  contrary.

 15    § 8. The real property tax law is amended by adding two  new  sections

 16  425-a and 425-b to read as follows:

 17    § 425-a. Co-STAR program for senior citizens. 1. Generally.  When real

 18  property receives the enhanced STAR exemption from school district taxa-

 19  tion  authorized  by section four hundred twenty-five of this title, the

 20  property shall be designated as eligible for a Co-STAR assessment on the

 21  same assessment roll in the manner provided by  this  section,  and  the

 22  qualified  owner-applicant  or  owner-applicants  shall be entitled to a

 23  county tax rebate in the amount  and  manner  provided  by  section  one

 24  hundred  seventy-eight  of  the tax law. No separate application need be

 25  filed for such Co-STAR assessment or rebate.

 26    2. Co-STAR assessments. (a) Subject to the provisions of paragraph (b)

 27  of this subdivision, the Co-STAR assessment  for  each  eligible  parcel

 28  shall  be  equal  to  the  exempt  amount determined for purposes of the

                                        244                        12022-01-1

  1  enhanced STAR exemption authorized by section four  hundred  twenty-five

  2  of  this  title  for  the assessing unit in which the parcel is located,

  3  provided, however, that for county fiscal years beginning in  two  thou-

  4  sand  two, two thousand three, two thousand four, and two thousand five,

  5  the Co-STAR assessment shall be equal to twenty, forty, sixty and eighty

  6  percent, respectively, of the exempt amount so determined.

  7    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-

  8  sion,  in  no  event shall the Co-STAR assessment of a parcel exceed the

  9  taxable assessed value of that parcel for county purposes.

 10    3. Entry on assessment roll; effect. Each parcel which is eligible for

 11  a Co-STAR assessment shall be designated as such by the assessor on  the

 12  assessment  roll, provided, however, that a Co-STAR assessment shall not

 13  affect the total or  taxable  assessed  value  of  any  parcel  for  any

 14  purpose,  and  shall  not be considered when determining the tax rate of

 15  any county or for any purpose other than determining the rebate to which

 16  the owner-applicant or owner-applicants are entitled under  section  one

 17  hundred seventy-eight of the tax law.

 18    4.  Payment  of  Co-STAR  rebates.  The  commissioner  of taxation and

 19  finance shall pay Co-STAR rebates in the manner provided by section  one

 20  hundred seventy-eight of the tax law.

 21    5.  Failure  to  pay  county taxes. If the county taxes on an eligible

 22  parcel are not paid in full during the applicable  county  fiscal  year,

 23  the  owner-applicant  or owner-applicants shall be subject to the conse-

 24  quences specified in subdivision six of  section  one  hundred  seventy-

 25  eight  of  the tax law, in addition to such other consequences as may be

 26  provided by law.

 27    6. Exceptions. (a) Co-operative apartment units and mobile homes. When

 28  an enhanced STAR exemption is  granted  pursuant  to  paragraph  (k)  of

                                        245                        12022-01-1

  1  subdivision  two  of  section  four hundred twenty-five of this title in

  2  relation to a cooperative apartment unit, or pursuant to  paragraph  (l)

  3  of  such  subdivision  in  relation to a mobile home which is separately

  4  owned  from  but assessed with the land on which it is located, and such

  5  co-operative apartment unit or  mobile  home  is  also  eligible  for  a

  6  Co-STAR assessment pursuant to this section, the Co-STAR rebate shall be

  7  paid  directly  to  the  qualified  owner-applicant  or owner-applicants

  8  notwithstanding the fact that the STAR exemption applies to  the  parcel

  9  itself.  The assessor shall prepare a list or data file identifying such

 10  owner-applicant or owner-applicants, their mailing  addresses,  and  the

 11  taxable assessed value for county purposes attributable to their respec-

 12  tive  co-operative apartment units or mobile homes, and shall submit the

 13  same to the state board within thirty days after the completion  of  the

 14  final  assessment roll. Such list or data file shall be prepared in such

 15  form and manner as may be prescribed by the state board of real property

 16  services in consultation with the department of taxation and finance.

 17    (b) Counties in certain cities. In the case of a county located wholly

 18  within a city with a population of one million or more inhabitants,  the

 19  Co-STAR  assessment  associated with each eligible parcel shall be equal

 20  to fifty percent of the exempt amount determined  for  purposes  of  the

 21  enhanced  STAR  exemption authorized by section four hundred twenty-five

 22  of this title for such city after the adjustment required  by  paragraph

 23  (j) of subdivision two of such section, provided, however, that for city

 24  fiscal  years  beginning  in  two  thousand two, two thousand three, two

 25  thousand four, and two thousand five, the Co-STAR  assessment  shall  be

 26  equal  to  ten,  twenty, thirty, and forty percent, respectively, of the

 27  exempt amount so determined after such adjustment.  Notwithstanding  the

 28  foregoing, in no event shall the Co-STAR assessment associated with such

                                        246                        12022-01-1

  1  a  parcel  exceed  the  taxable  assessed  value of that parcel for city

  2  purposes.

  3    7.  An  incorrect  entry on an assessment roll of a Co-STAR assessment

  4  may be corrected in the manner provided by law for the correction of  an

  5  incorrect entry of the STAR exemption authorized by section four hundred

  6  twenty-five  of  this  title.  A denial of a Co-STAR assessment shall be

  7  subject to administrative and judicial review in the manner provided  by

  8  law for the review of assessments.

  9    8.  Inconsistent laws superseded. The provisions of this section shall

 10  apply to all assessing units,  excluding  village  assessing  units  and

 11  cities  within  a  county  assessing unit, and to all counties, notwith-

 12  standing any provision of law to the contrary.

 13    § 425-b. Co-STAR program for farmers. 1. Generally. When real property

 14  is the primary residence of an eligible farmer as defined herein and the

 15  requirements of this section are otherwise satisfied, the property shall

 16  be designated as  eligible  for  a  Co-STAR  assessment  in  the  manner

 17  provided by this section, and the qualified owner-applicant or owner-ap-

 18  plicants  shall  be  entitled  to  a county tax rebate in the amount and

 19  manner provided by section one hundred seventy-eight of the tax law.

 20    2. Co-STAR assessments. (a) Subject to the provisions of paragraph (b)

 21  of this subdivision, the Co-STAR assessment  for  each  eligible  parcel

 22  shall be equal to the exempt amount determined for purposes of the basic

 23  STAR  exemption  authorized  by section four hundred twenty-five of this

 24  title for the assessing unit in which the parcel is  located,  provided,

 25  however,  that for county fiscal years beginning in two thousand two and

 26  two thousand three, the Co-STAR assessment shall be equal  to  one-third

 27  and two-thirds, respectively, of the exempt amount so determined.

                                        247                        12022-01-1

  1    (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-

  2  sion, in no event shall the Co-STAR assessment of a  parcel  exceed  the

  3  taxable assessed value of that parcel for county purposes.

  4    3.  Eligibility  requirements.  To  be  designated  as  eligible for a

  5  Co-STAR assessment pursuant  to  this  section,  the  property  must  be

  6  receiving  the  basic  STAR exemption authorized by section four hundred

  7  twenty-five of this title on the same assessment roll, and must be owned

  8  by, and serve as the primary residence of, an eligible farmer as defined

  9  herein. Provided, however,  that  a  parcel  which  receives  a  Co-STAR

 10  assessment  pursuant to section four hundred twenty-five-a of this title

 11  may not also receive a Co-STAR assessment pursuant to  this  section  on

 12  the same assessment roll.

 13    4.  Eligible  farmers.  For  purposes  of this section, a person is an

 14  eligible farmer if he or she satisfies one  or  more  of  the  following

 15  conditions:

 16    (a) He or she is eligible for and has claimed the agricultural proper-

 17  ty tax credit authorized by subsection (n) of section six hundred six of

 18  the tax law, commonly known as the farmers' school tax credit, on his or

 19  her  New  York  state personal income tax return for the income tax year

 20  identified in subparagraph (i) of paragraph (b) of subdivision  four  of

 21  section  four  hundred  twenty-five of this title, provided that nothing

 22  contained herein shall be construed to authorize or require the assessor

 23  to verify an applicant's eligibility for such credit; or

 24    (b) He or she owns a substantial interest in land which  receives,  or

 25  which  is  eligible  to  receive, an agricultural assessment pursuant to

 26  section three hundred five or three hundred six of the  agriculture  and

 27  markets  law  on  the  current  assessment  roll.  Such land need not be

 28  located in the same assessing unit  as  the  eligible  farmer's  primary

                                        248                        12022-01-1

  1  residence.  For  purposes  of  this section, a person owns a substantial

  2  interest in such land if he or she, or his or her spouse:

  3    (i)  individually  owns,  or  owns  jointly with his or her spouse, at

  4  least a twenty-five percent interest in such land,

  5    (ii) is a partner, with at least a twenty-five percent interest, in  a

  6  partnership which owns such land, or

  7    (iii)  owns at least twenty-five percent of the stock of a corporation

  8  which owns such land.

  9    5. Application procedure. (a) Generally. An eligible farmer must  file

 10  an  application  for a Co-STAR assessment with the assessor each year on

 11  or before the appropriate taxable status  date.  Each  such  application

 12  shall  be made only on a form prescribed or approved by the state board;

 13  provided, that effective with the two thousand two assessment roll,  the

 14  application  form  for  the agricultural assessment shall be designed so

 15  that it may also serve as an application for a Co-STAR assessment pursu-

 16  ant to this section, where appropriate.

 17    (b) Approval or denial of application. If the  assessor  is  satisfied

 18  that  a  parcel  is  entitled  to  a Co-STAR assessment pursuant to this

 19  section, he or she shall approve the application. If the assessor deter-

 20  mines that a parcel is not entitled to a Co-STAR assessment, he  or  she

 21  shall,  not later than ten days prior to the date for hearing complaints

 22  in relation to assessments, mail to the applicant a notice of denial  of

 23  that  application  for the Co-STAR assessment for that year; except in a

 24  city with a population of one million or more inhabitants,  such  notice

 25  shall  be  mailed not later than thirty days prior to the final date for

 26  filing an assessment appeal.  The notice of denial  shall  specify  each

 27  reason  for  such  denial  and shall be sent on a form prescribed by the

 28  state board.  Failure to mail any such notice of denial or  the  failure

                                        249                        12022-01-1

  1  of  any  person  to  receive  such  notice  shall  not prevent the levy,

  2  collection and enforcement of  the  taxes  on  property  owned  by  such

  3  person.

  4    (c)  Confidentiality.  Any information or documentation submitted with

  5  the application to verify that the applicant has  claimed  the  agricul-

  6  tural  property  tax  credit authorized by subsection (n) of section six

  7  hundred six of the tax law, commonly known as the  farmers'  school  tax

  8  credit,  shall  be  deemed confidential, and the assessor, any municipal

  9  officer or municipal employees are prohibited from disclosing  any  such

 10  information,  except  for any disclosure necessary in the performance of

 11  their official duties. Any unauthorized disclosure of  such  information

 12  shall  be  deemed  a  violation  of  section eight hundred five-a of the

 13  general municipal law.

 14    6. Entry on assessment roll; effect. Each parcel which is eligible for

 15  a Co-STAR assessment shall be identified as such by the assessor on  the

 16  assessment  roll, provided, however, that a Co-STAR assessment shall not

 17  affect the total or  taxable  assessed  value  of  any  parcel  for  any

 18  purpose,  and  shall  not be considered when determining the tax rate of

 19  any county or for any purpose other than determining the rebate to which

 20  the owner-applicant or owner-applicants are entitled under  section  one

 21  hundred seventy-eight of the tax law.

 22    7.  Payment  of  Co-STAR  rebates.  The  commissioner  of taxation and

 23  finance shall pay Co-STAR rebates in the manner provided by section  one

 24  hundred seventy-eight of the tax law.

 25    8.  Failure  to  pay  county taxes. If the county taxes on an eligible

 26  parcel are not paid in full during the applicable  county  fiscal  year,

 27  the  owner-applicant  or owner-applicants shall be subject to the conse-

 28  quences specified in subdivision six of  section  one  hundred  seventy-

                                        250                        12022-01-1

  1  eight  of  the tax law, in addition to such other consequences as may be

  2  provided by law.

  3    9. Exceptions. (a) Co-operative apartment units and mobile homes. When

  4  a STAR exemption is granted pursuant to paragraph (k) of subdivision two

  5  of section four hundred twenty-five of this title in relation to a coop-

  6  erative apartment unit, or pursuant to paragraph (l) of such subdivision

  7  in relation to a mobile home which is separately owned from but assessed

  8  with  the  land  on which it is located, and such co-operative apartment

  9  unit or mobile home is also eligible for a Co-STAR  assessment  pursuant

 10  to this section, the Co-STAR rebate shall be paid directly to the quali-

 11  fied  owner-applicant  or owner-applicants notwithstanding the fact that

 12  the STAR exemption applies to the  parcel  itself.  The  assessor  shall

 13  prepare  a  list or data file identifying such owner-applicant or owner-

 14  applicants, their mailing addresses, and the taxable assessed value  for

 15  county  purposes attributable to their respective co-operative apartment

 16  units or mobile homes, and shall submit the  same  to  the  state  board

 17  within  thirty  days  after the completion of the final assessment roll.

 18  Such list or data file shall be prepared in such form and manner as  may

 19  be  prescribed by the state board of real property services in consulta-

 20  tion with the department of taxation and finance.

 21    (b) Counties in certain cities. In the case of a county located wholly

 22  within a city with a population of one million or more inhabitants,  the

 23  Co-STAR  assessment  associated with each eligible parcel shall be equal

 24  to fifty percent of the exempt amount determined  for  purposes  of  the

 25  basic  STAR  exemption authorized by section four hundred twenty-five of

 26  this title for such city after the adjustment required by paragraph  (j)

 27  of  subdivision  two  of  such section, provided, however, that for city

 28  fiscal years beginning in two thousand two and two thousand  three,  the

                                        251                        12022-01-1

  1  Co-STAR  assessment  shall be equal to one-third and two-thirds, respec-

  2  tively, of the  exempt  amount  so  determined  after  such  adjustment.

  3  Notwithstanding  the foregoing, in no event shall the Co-STAR assessment

  4  associated  with such a parcel exceed the taxable assessed value of that

  5  parcel for city purposes.

  6    10. An incorrect entry on an assessment roll of a  Co-STAR  assessment

  7  may  be corrected in the manner provided by law for the correction of an

  8  incorrect entry of the STAR exemption authorized by section four hundred

  9  twenty-five of this title. A denial of a  Co-STAR  assessment  shall  be

 10  subject  to administrative and judicial review in the manner provided by

 11  law for the review of assessments.

 12    11. Inconsistent laws superseded. The provisions of this section shall

 13  apply to all assessing units,  excluding  village  assessing  units  and

 14  cities  within  a  county  assessing unit, and to all counties, notwith-

 15  standing any provision of law to the contrary.

 16    § 9. Subdivision 3 of section 459-c of the real property tax  law,  as

 17  added by chapter 315 of the laws of 1997, is amended to read as follows:

 18    3.  Any exemption provided by this section shall be computed after all

 19  other partial exemptions allowed by law, excluding the school tax relief

 20  (STAR) exemption authorized by section four hundred twenty-five of  this

 21  title,  have  been  subtracted from the total amount assessed; provided,

 22  however, that no parcel may receive an exemption for the same  municipal

 23  tax  purpose  pursuant  to  both  this  section and section four hundred

 24  sixty-seven of this title.

 25    § 10. Paragraph (c) of subdivision 1 of section 467 of the real  prop-

 26  erty  tax law, as amended by chapter 440 of the laws of 1985, is amended

 27  to read as follows:

                                        252                        12022-01-1

  1    (c) Any exemption provided by this section shall be computed after all

  2  other partial exemptions allowed by law, excluding the school tax relief

  3  (STAR) exemption authorized by section four hundred twenty-five of  this

  4  title, have been subtracted from the total amount assessed.

  5    §  11. The tax law is amended by adding a new section 171-k to read as

  6  follows:

  7    § 171-k. Income verification for the  state  board  of  real  property

  8  services.  (1)  The  department  shall  enter into an agreement with the

  9  state board of real property services to verify, to the extent practica-

 10  ble, whether persons described in paragraph (b) of subdivision  four  of

 11  section  four hundred twenty- five of the real property tax law meet the

 12  income eligibility requirements prescribed therein  for  the  applicable

 13  income  tax  year.  The  department shall advise the state board of real

 14  property services of its findings, stating in each case either that such

 15  person or persons do or do not satisfy such requirements,  or  that  the

 16  eligibility  of  such person or persons cannot be verified, whichever is

 17  appropriate. The department shall  not  provide  any  other  information

 18  about  the  income  of  such persons to the state board of real property

 19  services.

 20    (2) The provisions of article six of the public officers law shall not

 21  apply to any information that the department obtains from or provides to

 22  the state board of real property services pursuant to this section.

 23    (3) Any information furnished  by  the  department  pursuant  to  this

 24  section  shall  be  deemed  confidential and the assessor, any municipal

 25  officer or municipal employees are prohibited from disclosing  any  such

 26  information,  except  for any disclosure necessary in the performance of

 27  their official duties  in  connection  with  school  tax  relief  (STAR)

 28  exemption pursuant to section four hundred twenty-five of the real prop-

                                        253                        12022-01-1

  1  erty  tax law.  Any unauthorized disclosure of such information shall be

  2  deemed a violation of section eight hundred five-a of the general munic-

  3  ipal law.

  4    §  12.  The  tax law is amended by adding a new section 178 to read as

  5  follows:

  6    § 178. Co-STAR tax rebates. (1) Payment of rebates.  The  commissioner

  7  shall  pay  Co-STAR  tax  rebates,  as provided in sections four hundred

  8  twenty-five-a and four hundred twenty-five-b of the  real  property  tax

  9  law,  to  authorized  payees  as defined herein. The amount of each such

 10  rebate shall equal the Co-STAR assessment associated with the parcel  in

 11  question  multiplied  by  the  applicable county tax rate. Such payments

 12  shall be made as promptly as possible following  receipt  of  the  payee

 13  identification  and other information specified in this section, subject

 14  to appropriation by the state  legislature.  The  commissioner  and  the

 15  executive  director  of the state office of real property services shall

 16  jointly design, develop and implement a process to  review  the  quality

 17  and  integrity  of  the  Co-STAR  information  in  their possession. The

 18  commissioner and such executive director may enter  into  a  cooperative

 19  agreement to establish the review process.

 20    (2)  Authorized payees; mailing addresses. (a) For each eligible prop-

 21  erty, the Co-STAR rebate shall be paid to the qualified  owner-applicant

 22  or  owner-applicants  as  defined  herein,  or his, her or their payment

 23  designee or designees, if any. In the case of Co-STAR assessments grant-

 24  ed pursuant to section four hundred twenty-five-a of the  real  property

 25  tax  law, the qualified owner-applicant or owner-applicants shall be the

 26  senior citizen or citizens who applied for, and were  found  to  satisfy

 27  the  requirements  of, the enhanced STAR exemption authorized by section

 28  four hundred twenty-five of the real property tax law.  In the  case  of

                                        254                        12022-01-1

  1  Co-STAR  assessments  granted  pursuant  to section four hundred twenty-

  2  five-b of the real property tax law, the  qualified  owner-applicant  or

  3  owner-applicants  shall  be  the  eligible farmer or farmers who applied

  4  for,  and were found to satisfy the requirements of, the Co-STAR assess-

  5  ment authorized by section four hundred twenty-five-b of the real  prop-

  6  erty tax law.

  7    (b) The Co-STAR rebate shall be mailed to the mailing address provided

  8  either on the application form for the enhanced STAR exemption submitted

  9  pursuant  to  section  four hundred twenty-five of the real property tax

 10  law, or on the Co-STAR application form submitted  pursuant  to  section

 11  four hundred twenty-five-b of the real property tax law, as the case may

 12  be, or as otherwise reliably obtained by the department.

 13    (3)  Reporting of data to department. (a) When developing or maintain-

 14  ing its data base for purposes  of  administering  its  responsibilities

 15  under  this  section, the department shall utilize to the maximum extent

 16  possible data extracted from the assessment roll data files submitted to

 17  the state board of real property services pursuant to article  fifteen-C

 18  of  the real property tax law. On or before November first of each year,

 19  the state board shall ascertain from such data files, and shall  forward

 20  to  the department, the identification numbers of the parcels designated

 21  thereon as eligible for Co-STAR assessments, the names of the owners  of

 22  each  such  parcel  as appearing thereon, the taxable assessed value for

 23  county purposes of each  such  parcel  as  appearing  thereon,  and  the

 24  assessing unit in which each such parcel is located. Concurrently there-

 25  with,  the  state board shall also provide to the department the maximum

 26  allowable Co-STAR assessments applicable to each assessing unit.

 27    (b) For purposes of  administering  its  responsibilities  under  this

 28  section  in  relation  to co-operative apartment units and mobile homes,

                                        255                        12022-01-1

  1  the department shall also utilize data extracted from the lists and data

  2  files submitted to the state board by assessors  pursuant  to  paragraph

  3  (a) of subdivision six of section four hundred twenty-five-a of the real

  4  property  tax  law and paragraph (a) of subdivision nine of section four

  5  hundred twenty-five-b of the real property tax law. On or before  Novem-

  6  ber  first of each year, the state board shall ascertain from such lists

  7  and data files, and shall forward  to  the  department,  the  names  and

  8  addresses  of  the  owner-applicants  as  shown  thereon,  their mailing

  9  addresses as shown  thereon,  the  taxable  assessed  value  for  county

 10  purposes  attributable  to their respective co-operative apartment units

 11  or mobile homes, and the assessing unit in which each such  co-operative

 12  apartment unit or mobile home is located.

 13    (c)  The  county treasurer of each county shall certify to the commis-

 14  sioner, no later than the thirty-first day of  January  of  each  county

 15  fiscal year, the county tax rates applicable to each city and town with-

 16  in  the  county  for  that  fiscal year. In the case of a county located

 17  wholly within a city with a population of one million or  more  inhabit-

 18  ants,  the  commissioner of finance of such city shall make such certif-

 19  ication; provided that the tax rate to be provided thereunder, and  used

 20  to  compute Co-STAR rebates pursuant to this section, shall be a compos-

 21  ite of the tax rates for both city and school district purposes.

 22    (d) In addition to receiving data pursuant to paragraphs (a), (b)  and

 23  (c)  of  this subdivision, the department may enter into agreements with

 24  the state board, with local assessors, with county treasurers,  or  with

 25  some or all of such parties, for the reporting to the department of such

 26  other  data as may be required for its administration of the Co-STAR tax

 27  rebate program.  Nothing contained herein shall be construed to preclude

                                        256                        12022-01-1

  1  the department from collecting directly from putative payees  such  data

  2  as it shall deem appropriate.

  3    (e)  Information provided to or prepared by the department pursuant to

  4  this section shall not be used for any purpose other than administration

  5  of the Co-STAR program, and such information shall  not  be  redisclosed

  6  other  than  for the purpose of administering such program nor shall the

  7  provisions of article six of the public officers law apply to  any  such

  8  information.

  9    (4)  Construction  or  interpretation  of certain provisions or terms.

 10  When the proper payment of a tax rebate under this section depends  upon

 11  construction  of  the  meaning of the provisions of section four hundred

 12  twenty-five-a or four hundred twenty-five-b of the real property tax law

 13  (and any related provisions of such law) or interpretation of the  terms

 14  contained  therein, it shall be the responsibility of the state board of

 15  real property services to provide to the department the construction  or

 16  interpretation of any such provisions or terms.

 17    (5)  Limitations. Payment of a rebate upon the information provided to

 18  it, or denial of or failure to pay a rebate based on  such  information,

 19  shall  relieve the commissioner and the department from all liability to

 20  any owner of the property, or the estate,  trust,  assigns,  successors,

 21  heirs  or  representatives  of any such owner, or any other person, with

 22  respect to such payment,  and  such  persons  shall  have  no  right  to

 23  commence  a  court  action  or proceeding or to any other legal recourse

 24  against the state, the commissioner, the department, or any  officer  or

 25  employee  of state or local government involved in the administration of

 26  this program, to recover such payment.

 27    (6) Failure to pay county taxes. (a)  After  the  conclusion  of  each

 28  county  fiscal year, the county treasurer of each county shall submit to

                                        257                        12022-01-1

  1  the commissioner a list identifying all parcels with  respect  to  which

  2  the  county  taxes for that fiscal year remained unpaid as of the end of

  3  that fiscal year. In the case of a county located wholly within  a  city

  4  with a population of one million or more inhabitants, such list shall be

  5  submitted by the commissioner of finance of such city and shall identify

  6  all  parcels  with  respect to which the city taxes for that fiscal year

  7  remained unpaid as of the end of that fiscal year. Such  list  shall  be

  8  submitted  to  the  commissioner when submitting the report described in

  9  paragraph (c) of subdivision three of this section.

 10    (b) Upon receiving such a list, the commissioner  shall  withhold  any

 11  future  Co-STAR  rebate  payments to the owner-applicants in relation to

 12  any parcels on the list until receiving confirmation that all  outstand-

 13  ing  county  taxes  on the parcel in question have been paid in full. It

 14  shall be the  responsibility  of  the  owner-applicant  to  obtain  such

 15  confirmation  in  writing  from the county treasurer, and to provide the

 16  same to the department in such manner as the commissioner may prescribe.

 17  After receiving such confirmation, any withheld rebates  for  which  the

 18  owner-applicant is eligible and has timely applied shall be released and

 19  future rebate payments may be made, subject to continued eligibility and

 20  continuous payment of future county taxes.  No interest shall be paid or

 21  payable  on  any withheld rebates that are so released. The commissioner

 22  may schedule the processing of requests  for  the  release  of  withheld

 23  rebates  so  as to allow payments to be collectively authorized for this

 24  purpose no more frequently than twice per calendar year.

 25    (c) If such confirmation is not received within a time  period  to  be

 26  determined  by the commissioner, the commissioner may revoke the Co-STAR

 27  rebate for the county fiscal year identified in paragraph  (a)  of  this

                                        258                        12022-01-1

  1  subdivision and recapture the applicable amount in the manner prescribed

  2  by subdivision seven of this section.

  3    (7)  Erroneous  rebates;  replacement checks. The commissioner may, in

  4  his or her discretion, seek to recover any erroneous rebate by notifying

  5  the payee of the  amount  thereof.  If  such  erroneous  rebate  is  not

  6  returned within thirty days, the commissioner is authorized to treat the

  7  erroneous  rebate  as  an erroneous refund of income tax pursuant to the

  8  provisions of paragraph five of subsection (c) of  section  six  hundred

  9  eighty-three  of this chapter and such amounts, when collected, shall be

 10  deposited as provided in subdivision one of section one  hundred  seven-

 11  ty-one-a  of this article, as if such amounts were taxes collected under

 12  an article of this chapter referred to in such  subdivision.  Where  the

 13  commissioner  finds  that  an original rebate check has been misdirected

 14  for reasons beyond the control of the authorized payee, he  or  she  may

 15  issue a new rebate check to the authorized payee.

 16    (8)  Regulations.  The  commissioner  shall be authorized to make such

 17  rules and regulations as may be deemed necessary for the performance  of

 18  his or her duties under this section, including but not limited to rules

 19  and regulations relating to standards and procedures for furnishing data

 20  to the department.

 21    §  13.  Processing  of  Co-STAR assessments for senior citizens on the

 22  2001 assessment roll. (a)  Notwithstanding  the  provisions  of  section

 23  425-a  of  the  real property tax law, as added by section eight of this

 24  act, parcels which are eligible for Co-STAR assessments pursuant to such

 25  section shall not be designated as such on the 2001 assessment roll.  In

 26  lieu thereof, upon receipt of the 2001 assessment roll data file submit-

 27  ted  to  it  pursuant  to section 1590 of the real property tax law, the

 28  state board of real property services shall identify the parcels thereon

                                        259                        12022-01-1

  1  which are receiving the enhanced STAR exemption pursuant to section  425

  2  of the real property tax law, shall ascertain the taxable assessed value

  3  for county purposes of each such parcel, and shall forward such informa-

  4  tion  to the department of taxation and finance, together with the maxi-

  5  mum allowable Co-STAR assessments for each assessing unit.

  6    (b) Notwithstanding the provisions of section 178 of the tax  law,  as

  7  added  by section twelve of this act, for purposes of issuing rebates of

  8  county taxes for the county fiscal year beginning in 2002,  the  depart-

  9  ment of taxation and finance may presume that the qualified owner-appli-

 10  cant  or  owner-applicants  were  the property owner or owners as of the

 11  applicable taxable status date, as shown on  the  assessment  roll  data

 12  file  filed  with  the state board of real property services pursuant to

 13  article fifteen-C of the real property tax law, and may further  presume

 14  that  the  appropriate mailing addresses are the owners' addresses shown

 15  thereon.

 16    (c) When property which is eligible for a Co-STAR assessment  pursuant

 17  to  this  section  constitutes a co-operative apartment unit or a mobile

 18  home which is subject to the provisions of paragraph (a) of  subdivision

 19  6  of  section  425-a  of the real property tax law, as added by section

 20  eight of this act, the assessor shall not be required to file  the  list

 21  or  data file required by such paragraph until the one hundred twentieth

 22  day after the effective date of this act, notwithstanding any  provision

 23  in such subdivision to the contrary.

 24    §  14.  Processing  of  Co-STAR  assessments  for  farmers on the 2001

 25  assessment roll. (a) Application period. Notwithstanding  any  provision

 26  of  law  to  the  contrary, eligible farmers may submit applications for

 27  Co-STAR assessments pursuant to section 425-b of the real  property  tax

 28  law,  as added by section eight of this act, on the 2001 assessment roll

                                        260                        12022-01-1

  1  until the ninetieth day after the  effective  date  of  this  act.  Each

  2  assessor  is  hereby  authorized  and  directed to review and grant such

  3  applications as appropriate no later than the one hundred twentieth  day

  4  after the effective date of this act. Provided, however, that in lieu of

  5  making  entries directly on the 2001 assessment roll, the assessor shall

  6  prepare a separate list or data file identifying the eligible parcels in

  7  such form and manner as may be prescribed by the  state  board  of  real

  8  property  services  in  consultation with the department of taxation and

  9  finance. No later than the one hundred twentieth day after the effective

 10  date of this act, the assessor shall forward such list or data  file  to

 11  the state board, which shall forward the same to the department of taxa-

 12  tion and finance, together with the maximum allowable Co-STAR assessment

 13  for each assessing unit.

 14    (b)  Notice and review of denial. If an assessor should determine that

 15  a Co-STAR application submitted  pursuant  to  this  section  should  be

 16  denied,  he  or  she  shall  so  notify the applicant by certified mail,

 17  return receipt requested, no later than the one  hundred  twentieth  day

 18  after  the  effective date of this act.  No later than 10 days after the

 19  mailing of such notice, the applicant may file a written complaint  with

 20  the  assessor. The provisions of section five hundred fifty-three of the

 21  real property tax law shall apply  to  the  extent  practicable  to  the

 22  review of such a complaint.

 23    (c)  Notwithstanding  the provisions of section 178 of the tax law, as

 24  added by section twelve of this act, for purposes of issuing rebates  of

 25  county  taxes  for the county fiscal year beginning in 2002, the depart-

 26  ment of taxation and finance may presume that the qualified owner-appli-

 27  cant or owner-applicants were the property owner or  owners  as  of  the

 28  applicable  taxable  status  date,  as shown on the assessment roll data

                                        261                        12022-01-1

  1  file filed with the state board of real property  services  pursuant  to

  2  article  fifteen-C  of the real property tax law, or on the list or data

  3  file forwarded to the state board pursuant to subdivision  (a)  of  this

  4  section,  and may further presume that the appropriate mailing addresses

  5  are the owners' addresses shown thereon.

  6    (d) When property which is eligible for a Co-STAR assessment  pursuant

  7  to  this  section  constitutes a co-operative apartment unit or a mobile

  8  home which is subject to the provisions of paragraph (a) of  subdivision

  9  9  of  section  425-b  of the real property tax law, as added by section

 10  eight of this act, the assessor shall not be required to file  the  list

 11  or  data file required by such paragraph until the one hundred twentieth

 12  day after the effective date of this act, notwithstanding any  provision

 13  in such subdivision to the contrary.

 14    § 15. Subsection (e) of section 1310 of the tax law, as added by chap-

 15  ter  481  of  the  laws  of 1997, is relettered subsection (f) and a new

 16  subsection (g) is added to read as follows:

 17    (g) State Co-STAR credit. (1) For taxable years  beginning  after  two

 18  thousand  one, a state Co-STAR credit shall be allowed for taxpayers who

 19  have attained the age of sixty-five on or before the close of the  taxa-

 20  ble  year.  The  credit shall be allowed against the taxes authorized by

 21  this article reduced by the credits permitted by this  article.  If  the

 22  credit  exceeds the tax as so reduced, the taxpayer may receive, and the

 23  comptroller, subject to a certificate of the commissioner, shall pay  as

 24  an  overpayment,  without  interest,  the  amount  of  such  excess. For

 25  purposes of this subsection, no credit shall be granted to an individual

 26  with respect to whom a deduction under subsection  (c)  of  section  one

 27  hundred  fifty-one  of the internal revenue code is allowable to another

 28  taxpayer for the taxable year.

                                        262                        12022-01-1

  1    (2) The credit shall be determined under this paragraph.

  2    (A) Married individuals filing joint returns and surviving spouses. In

  3  the case of a husband and wife who make a single return jointly and of a

  4  surviving spouse:

  5  For taxable years beginning:       The credit shall be:

  6       in 2002                                 $25

  7       in 2003                                 $50

  8       in 2004                                 $75

  9       in 2005                                 $100

 10       after 2005                              $120

 11    (B)  All  others.  In the case of an unmarried individual, a head of a

 12  household or a married individual filing a separate return:

 13  For taxable years beginning:       The credit shall be:

 14       in 2002                                 $12.50

 15       in 2003                                 $25

 16       in 2004                                 $37.50

 17       in 2005                                 $50

 18       after 2005                              $60

 19    § 16. Subdivision (c) of section 11-1706 of the administrative code of

 20  the city of New York, as added by chapter 481 of the  laws  of  1997,  is

 21  relettered subdivision (d) and a new subdivision (e) is added to read as

 22  follows:

 23    (e)  State  Co-STAR  credit. (1) For taxable years beginning after two

 24  thousand one, a state Co-STAR credit shall be allowed for taxpayers  who

 25  have  attained the age of sixty-five on or before the close of the taxa-

 26  ble year. The credit shall be allowed against the taxes imposed by  this

 27  chapter  reduced by the credits permitted by this chapter. If the credit

 28  exceeds the tax as so reduced, the taxpayer may receive, and  the  state

                                        263                        12022-01-1

  1  comptroller, subject to a certificate of the state commissioner of taxa-

  2  tion  and  finance,  shall  pay as an overpayment, without interest, the

  3  amount of such excess. For purposes of this subdivision, no credit shall

  4  be  granted  to  an  individual  with  respect to whom a deduction under

  5  subsection (c) of section one hundred fifty-one of the internal  revenue

  6  code is allowable to another taxpayer for the taxable year.

  7    (2) The credit shall be determined under this paragraph.

  8    (A) Married individuals filing joint returns and surviving spouses. In

  9  the case of a husband and wife who make a single return jointly and of a

 10  surviving spouse:

 11  For taxable years beginning:       The credit shall be:

 12       in 2002                                 $25

 13       in 2003                                 $50

 14       in 2004                                 $75

 15       in 2005                                 $100

 16       after 2005                              $120

 17    (B)  All  others.  In the case of an unmarried individual, a head of a

 18  household or a married individual filing a separate return:

 19  For taxable years beginning:       The credit shall be:

 20       in 2002                                 $12.50

 21       in 2003                                 $25

 22       in 2004                                 $37.50

 23       in 2005                                 $50

 24       after 2005                              $60

 25    § 17. Paragraph (c) of subdivision 3 of  section  54-f  of  the  state

 26  finance  law,  as  added  by section 139 of part A of chapter 389 of the

 27  laws of 1997, is amended to read as follows:

                                        264                        12022-01-1

  1    (c) In each of the  two  three years following the preparation of  the

  2  initial  determination of such amount the commissioner shall revise such

  3  estimate and shall provide such revision to the director of  the  budget

  4  and  shall  also  supply  copies of such revision to the chairman of the

  5  senate  finance  committee  and to the chairman of the assembly ways and

  6  means committee.   Following the   second   third  such  revision,  such

  7  determination  of the amount shall be considered to be final and subject

  8  to no further review or revision.

  9    § 18. The state finance law is amended by adding a new section  97-xxx

 10  to read as follows:

 11    §  97-xxx.  Co-STAR  fund.  1. There is hereby established in the sole

 12  custody of the commissioner of taxation and finance a special fund to be

 13  known as the Co-STAR fund.

 14    2. Such fund shall consist of all monies credited or transferred ther-

 15  eto from the general fund or from any other fund or sources pursuant  to

 16  law.

 17    3.  The  monies  of the fund shall be available for payment of Co-STAR

 18  rebates authorized by section one hundred seventy-eight of the tax  law,

 19  and  notwithstanding  any  other  provision of law, shall be paid out on

 20  checks issued and signed solely by  the  commissioner  of  taxation  and

 21  finance.

 22    §  19.  Section  2022  of the education law is amended by adding a new

 23  subdivision 6 to read as follows:

 24    6. a. Notwithstanding any other provision  of  law  to  the  contrary,

 25  commencing with school district budgets for the school year two thousand

 26  one--two  thousand  two, total spending under the school district budget

 27  for any district whose budget is subject to  voter  approval  shall  not

 28  exceed  total  spending  under  the school district budget for the prior

                                        265                        12022-01-1

  1  school year by a  percentage  that  exceeds  the  lesser  of:  (i)  four

  2  percent,  or (ii) the result obtained when one hundred twenty percent is

  3  multiplied by the percentage increase in the consumer price  index  over

  4  the  twelve month period preceding January first of the calendar year in

  5  which the current school year commences, with the result rounded to  two

  6  decimal  places, except with the approval of the qualified voters in the

  7  manner prescribed in paragraph b of this subdivision.

  8    b. Notwithstanding any other provision of law  to  the  contrary,  the

  9  approval  of  at  least  two-thirds  of the qualified voters present and

 10  voting at an annual or special school district meeting shall be required

 11  in order to override the  total  spending  limitation  imposed  by  this

 12  subdivision  in  the  current  school  year.  Notwithstanding  any other

 13  provision of law to the contrary, where a two-thirds  vote  is  required

 14  pursuant  to this paragraph and a majority of the qualified voters pres-

 15  ent and voting, but less than two-thirds, approve  the  school  district

 16  budget or other proposition for the expenditure of money:

 17    (i)  such budget or proposition shall be deemed approved by the voters

 18  subject to the spending limitation imposed by this subdivision;

 19    (ii) the school authorities shall be authorized to make any reductions

 20  in such budget or proposition that are  necessary  to  comply  with  the

 21  spending  limitation  without further approval of the voters and without

 22  adopting a contingency budget pursuant to section two  thousand  twenty-

 23  three of this part; and

 24    (iii)  the  school  authorities shall be authorized to resubmit to the

 25  voters on one additional occasion a separate proposition to override the

 26  total spending limitation imposed by this section for the current school

 27  year and  to  fully  implement  the  budget  or  proposition  previously

 28  approved  by  majority  vote, provided that such separate proposition to

                                        266                        12022-01-1

  1  override is approved by at least  two-thirds  of  the  qualified  voters

  2  present  and voting.   Notwithstanding any other provision of law to the

  3  contrary, if the approval of the qualified voters to override the  limi-

  4  tation on total spending is not obtained upon such one resubmission, the

  5  school  authorities  shall make any reductions in the budget or proposi-

  6  tion that are necessary to comply with the total spending limitation.

  7    c. The notice of any annual or special district meeting at  which  any

  8  proposition  for  the  expenditure  of  moneys  that  could result in an

  9  increase in total spending in excess of the limitation imposed  by  this

 10  subdivision  is  submitted  to the voters, and the notice of any special

 11  district meeting at which a proposition to override such spending  limi-

 12  tation  is  submitted, shall include a statement that a vote of at least

 13  two-thirds of the qualified voters present and  voting  is  required  to

 14  approve such propositions.

 15    d. For the purposes of this subdivision:

 16    (i)  "Consumer  price index" shall mean the percentage that represents

 17  the average of the national consumer price indexes for all urban consum-

 18  ers (CPI-U) determined by the United States department of labor.

 19    (ii) "Current school year" shall mean the school year for which school

 20  taxes are levied.

 21    (iii) "Total spending" shall mean the total amount appropriated  under

 22  the  school  district  budget  for  the  school  year, provided that the

 23  following types of expenditures  shall  be  disregarded  in  determining

 24  total spending:

 25    (A)  the types of expenditures set forth in paragraph b of subdivision

 26  four of section two thousand twenty-three of this part, whether or not a

 27  contingency budget has been adopted; and

                                        267                        12022-01-1

  1    (B) expenditures resulting from an actual increase in enrollment  over

  2  the projected enrollment used to develop the school district budget; and

  3    (C)  expenditures  from appropriations for gifts or federal grants-in-

  4  aid that are added after adoption of the school district budget for  the

  5  current school year.

  6    § 20. This act shall take effect immediately, provided, however:

  7    (a)  Sections one, two, three, four, five, six, seven, nine and ten of

  8  this act shall apply to the administration  of  the  school  tax  relief

  9  (STAR)  exemption authorized by section 425 of the real property tax law

 10  beginning with the 2002-2003 school year, provided, that for purposes of

 11  administering the STAR exemption for  the  2001-2002  school  year,  the

 12  provisions  of  section 425 of the real property tax law that shall have

 13  been in effect on the last day preceding the effective date of this  act

 14  shall  continue  in  effect to the same extent as if such provisions had

 15  not been amended by this act;

 16    (b) Section eight of this act shall apply to assessment rolls filed in

 17  2001 and thereafter;

 18    (c) Section eleven of this act shall apply  to  applications  for  the

 19  enhanced STAR exemption beginning with the 2003-2004 school year; and

 20    (d)  Section  twelve  of  this  act shall apply to county fiscal years

 21  beginning in 2002 and thereafter.

 22                                   PART D

 23    Section 1. Legislative findings. It is hereby found and declared  that

 24  continued operation of railroads, both intrastate and interstate, in the

 25  state  and  improvement of their service and facilities are essential to

 26  the commerce and general welfare of the people of the state; that in the

                                        268                        12022-01-1

  1  year 1959, at a time when the financial condition of  railroads  in  the

  2  state  had  deteriorated  to  the  extent that the continuation of vital

  3  operations was threatened, a partial exemption from taxation was granted

  4  for  railroad  property in a manner which provided larger exemptions for

  5  properties of railroad systems generating  lower  earnings;  that  since

  6  that  time major changes have taken place in the transportation industry

  7  which show that the goals of that initial legislation cannot be achieved

  8  without major revisions; that the  very  nature  of  railroad  operation

  9  involves  an immense investment in real property that is not required by

 10  competitors of railroads; that federal law requires that the property of

 11  railroads be taxed in a non-discriminatory manner in relation  to  other

 12  commercial  and  industrial  property; that in order for railroads to be

 13  viable and competitive, railroad property must  continue  to  receive  a

 14  partial exemption from what would otherwise be the full value of locally

 15  assessed railroad property; that the expiration of a settlement of liti-

 16  gation  entered  into  in  the  federal  district court for the southern

 17  district of New York will result in a significant increase  in  the  tax

 18  liability  of  the two largest railroad lines in the state which in turn

 19  may foster additional litigation with great cost and uncertainty to  the

 20  state,  local  governments  and  the  railroads;  that railroad ceilings

 21  established on the basis of the ratio  of  the  operating  revenues  and

 22  expenses  of a railroad system have not always accomplished the goals of

 23  the enabling legislation and must  be  revised  to  be  effective;  and,

 24  therefore, that various provisions of the railroad partial tax exemption

 25  law applicable to intrastate and interstate railroads must be changed by

 26  enacting  the  rail  access  tax incentive proposal which will allow the

 27  railroad industry to be viable and competitive.

                                        269                        12022-01-1

  1    § 2. Subdivisions 2, 3, 4 and 5 of section 489-d of the real  property

  2  tax  law,  as amended by chapter 920 of the laws of 1977, are amended to

  3  read as follows:

  4    2.  Bridges,  viaducts  and other similar structures constructed on or

  5  after January first, nineteen hundred fifty-nine as the  result  of  the

  6  creation,  pursuant  to  article  twelve-B  of the highway law, of a new

  7  highway, street or roadway, carrying railroad facilities over  such  new

  8  highway,  street or roadway shall be exempt from taxation. No assessment

  9  of any bridges, viaducts and  other  similar  structures  lengthened  or

 10  reconstructed  on or after January first, nineteen hundred fifty-nine as

 11  the result of the widening, relocation or reconstruction of an  existing

 12  highway,  street or roadway, pursuant to article twelve-B of the highway

 13  law shall be increased by reason of such reconstruction  or  relocation,

 14  notwithstanding  the  provisions of any general, special or local law to

 15  the contrary; provided, however, that the  assessment  on  the  original

 16  portion  of  such  bridges, viaducts and other similar structures may be

 17  varied in accordance with the changes made generally in  assessments  on

 18  other  local  real  property.    Whenever  any new construction would be

 19  exempt pursuant to both the  provisions  of  this  subdivision  and  the

 20  provisions  of  subdivision  four  or five of this section, the property

 21  shall receive the exemption provided by such subdivision four or five.

 22    3. Railroad real property shall be exempt from taxation to the  extent

 23  of any increase in value thereof by reason of any of the following addi-

 24  tions,  betterments,  improvements, or reconstructions made or installed

 25  thereon after the last preceding taxable  status  date  prior  to  April

 26  twenty-first, nineteen hundred fifty-nine; (a) the installation of auto-

 27  matic  grade  crossing  protective  devices,  such as flashing lights or

 28  automatic gates and their attendant facilities; (b)  the  reconstruction

                                        270                        12022-01-1

  1  or the replacement of signals, railroad bridges, stations, freight hous-

  2  es,  classification  yards, repair shops, or any other facility used for

  3  transportation purposes, provided that the property as reconstructed  or

  4  replaced is the same general type of facility and is located in the same

  5  city  or  town  as  the  property reconstructed or replaced; and (c) the

  6  construction or reconstruction pursuant to  the  grade  crossing  elimi-

  7  nation  acts,  the  railroad  law, or the highway law of any grade sepa-

  8  ration structure, such as bridges, viaducts,  tunnels,  retaining  walls

  9  and  embankments  constructed for the purpose of eliminating or avoiding

 10  highway-railroad crossings at grade.    Whenever  any  new  construction

 11  would  be exempt pursuant to both the provisions of this subdivision and

 12  the provisions of subdivision four or five of this section, the property

 13  shall receive the exemption provided by such subdivision four or five.

 14    4. Whenever a railroad company makes any improvements, enhancements or

 15  upgrades to any existing railroad real  property  in  order  to  improve

 16  freight  service  or  to  provide improved or new passenger service, the

 17  cost of that project shall not be included in  the  calculation  of  any

 18  subsequent  railroad ceilings for a period of ten years from the date of

 19  completion of that project provided that  those  improvements,  enhance-

 20  ments  or  upgrades  were  made  pursuant  to a capital project proposal

 21  approved by the commissioner of  the  department  of  transportation  as

 22  provided  in  section  four  hundred  eighty-nine-v  of  this title. The

 23  department of transportation  shall  certify  to  the  state  board  the

 24  location  and cost of any such improvements, enhancements or upgrades in

 25  a manner that provides the state board with sufficient time to carry out

 26  its responsibilities pursuant to this chapter.

 27    5. The cost of bridges, viaducts, other structures or improvements and

 28  new rail lines, including any new rail lines built to  replace  existing

                                        271                        12022-01-1

  1  rail  lines,  shall not be included in the calculation of any subsequent

  2  railroad ceilings for a period of ten years from the date of  completion

  3  of  that project provided that this construction was pursuant to a capi-

  4  tal  project  proposal approved by the commissioner of the department of

  5  transportation as provided in section four hundred eighty-nine-v of this

  6  title. The department of transportation shall certify to the state board

  7  the location and cost of any such construction in a manner that provides

  8  the state board with sufficient time to carry out  its  responsibilities

  9  pursuant to this chapter.

 10     4   6.    Except  as  provided  in  subdivision   five  seven of this

 11  section, railroad real property  other  than  subsidized  railroad  real

 12  property  shall  be exempt from taxation to the extent that the assessed

 13  valuation thereof exceeds the railroad ceiling determined in  accordance

 14  with the earnings ratio as hereinafter prescribed.

 15     5   7.  Railroad  real  property  other than subsidized railroad real

 16  property of a railroad company shall not be exempt from  taxation  under

 17  this  title  on  an assessment roll of any assessing unit if the company

 18  failed for any reason to pay within thirty days of the date when due the

 19  tax levied upon the taxable portion of the assessment  of  any  railroad

 20  real  property  of  the  company  set forth on the immediately preceding

 21  assessment roll of any assessing  unit,  provided,  however,  that  this

 22  subdivision  shall not apply if the payment or enforcement of such taxes

 23  was restrained or prohibited by an order issued by a court of  competent

 24  jurisdiction under the bankruptcy act of the United States.

 25    §  3.  Section 489-g of the real property tax law is amended by adding

 26  three new subdivisions 6, 7 and 8 to read as follows:

 27    6. In determining a system reproduction cost for purposes of  railroad

 28  ceilings  determined  for  assessment  rolls filed on or after   January

                                        272                        12022-01-1

  1  first,  two thousand one, grading shall be deemed a  depreciable  asset.

  2  The  allowance  for grading in place shall be eighteen percent per annum

  3  but shall not exceed ninety percent.

  4    7.  In determining a system reproduction cost for purposes of railroad

  5  ceilings determined for assessment rolls filed  on  or  after    January

  6  first,  two thousand one, the state board shall not include a factor for

  7  soft costs or other construction overhead in its calculation.

  8    8. In determining a system reproduction cost for purposes of  railroad

  9  ceilings established for assessment rolls filed after January first, two

 10  thousand  one, the state board may allow for accelerated depreciation of

 11  track. For high speed/high tonnage track and medium  speed/high  tonnage

 12  track,  whether main track or side track, depreciation shall be acceler-

 13  ated to seventy-five percent. For low speed/medium tonnage track, wheth-

 14  er main track or side track, depreciation shall be accelerated to eight-

 15  y-five percent. For low speed/low tonnage track, whether main  track  or

 16  side   track,  depreciation shall be accelerated to ninety percent. Such

 17  accelerated depreciation shall only be granted upon   application  of  a

 18  railroad company.  Any  accelerated depreciation shall be granted to all

 19  the tracks owned by the railroad in this state not otherwise exempt from

 20  inclusion  in  the  calculation    of railroad ceilings. The state board

 21  shall, in consultation with the department of transportation   and   the

 22  division  of the budget, establish by rule the schedules for accelerated

 23  depreciation  and  standards  for  improved  service that must be met in

 24  order  for  a railroad  to  receive such accelerated depreciation.  Such

 25  standards  may be   based   upon increased  tonnage,  increased level of

 26  passenger  service, increased number of passenger trains and/or improved

 27  on-time performance, increased average speed and any other factors indi-

 28  cating improved rail service that the state board may specify.

                                        273                        12022-01-1

  1    § 4. Section 489-j of the real property tax law is amended  by  adding

  2  two new subdivisions (b) and (c) to read as follows:

  3    (b) Notwithstanding the provisions of subdivision (a) of this section,

  4  for   purposes of determining railroad ceilings for intrastate railroads

  5  for assessment rolls completed in the year two thousand one and  follow-

  6  ing,  the percentage indicated under "exemption factor" in the following

  7  table opposite the earnings ratio of the railroad company shall  be  the

  8  exemption  factor  for each railroad company. If the earnings ratio of a

  9  railroad company does not coincide with a specific earnings  ratio indi-

 10  cated  in  the  table, the exemption  factor for such company  shall  be

 11  determined by interpolation to the nearest hundredth of one percent.

 12                 Earnings Ratio    Exemption Factor

 13                    (Percent)        (Percent)

 14                       12                0

 15                       11                5

 16                       10               10

 17                       9                15

 18                       8                20

 19                       7                25

 20                       6                30

 21                       5                35

 22                       4                40

 23                       3                50

 24                       2                60

 25                       1                80

 26                       0                85

 27    (c) Notwithstanding the provisions of subdivision (b) of this section,

 28  whenever  it  would  appear that an exemption factor would decrease more

                                        274                        12022-01-1

  1  than one-tenth from that established in the prior year, the decrease may

  2  not exceed one-tenth.

  3    §  5.  The  real  property  tax law is amended by adding a new section

  4  489-v to read as follows:

  5    § 489-v. Capital improvements to railroad property.   1.  As  used  in

  6  this section:

  7    (a) "Completed capital project" shall mean a capital project which has

  8  been  certified by the commissioner to be completed in accordance with a

  9  capital project proposal approved by the commissioner.

 10    (b) "Capital project proposal" shall mean a proposal, prepared  by   a

 11  railroad  company  and submitted  to  the commissioner, which sets forth

 12  a proposed capital project. Such proposal shall include a description of

 13  the proposed capital project and conditions relating to railroad tracks,

 14  roadbeds,  bridge  and structural improvements, improvements to railroad

 15  yards, switches, sidings, or other facilities,  signal  system  improve-

 16  ments,  or other railroad projects that improve the efficiency, capacity

 17  or  safety of railroad facilities. The proposal shall be reviewed by the

 18  commissioner and  shall be approved if the commissioner determines  that

 19  the proposed project is consistent with the provisions of paragraph  (e)

 20  of  this subdivision and regulations prescribed by the department pursu-

 21  ant  to this section.  Capital project proposals that have been approved

 22  by the commissioner may be amended with the approval of the  commission-

 23  er.

 24    (c)  "Commissioner"  shall mean the commissioner of the New York state

 25  department of transportation.

 26    (d) "Department" shall mean the New York state department of transpor-

 27  tation.

                                        275                        12022-01-1

  1    (e)  "Capital project" shall mean a construction project which   would

  2  modify  railroad facilities  to  substantially improve  the  efficiency,

  3  capacity  or  safety of railroad freight or passenger transportation, as

  4  determined by   the commissioner,  in  one  or  more  of  the  following

  5  manners:

  6    (i) a substantial enhancement in rail freight or passenger transporta-

  7  tion  performance, such as upgrading the class of the railroad  track as

  8  track classes are defined in the track  safety    standards    of    the

  9  United  States  department  of transportation;

 10    (ii)  the  construction of significant new facilities for rail freight

 11  or passenger transportation, such as the construction  of  new  railroad

 12  lines,  additional  tracks  along existing lines, sidings,   structures,

 13  yards,  stations, signal systems   or switching facilities,  and  inter-

 14  modal  facilities,  including,  but not limited to,   automotive,   bulk

 15  transfer,  trailer  on flatcar, container on flatcar and reload  facili-

 16  ties; and

 17    (iii)  major  renovations  to  or expansions of components of railroad

 18  infrastructure, such as the reconstruction of bridges or the increase in

 19  bridge capacity, the expansion of railroad yards,  or  the   substantial

 20  improvement of the technology or safety of signal systems.

 21    2.  (a)    A   railroad company shall propose a capital project to the

 22  commissioner for approval under this section on forms prescribed by  the

 23  department.  The  commissioner   shall approve capital project proposals

 24  that are consistent with the terms  of   this   section and  regulations

 25  prescribed  by  the  department.    The  commissioner  shall  notify the

 26  submitting railroad within thirty days of receipt of a proposal  whether

 27  or  not  the   commissioner considers the proposal to be consistent with

                                        276                        12022-01-1

  1  the definition of a capital project as set forth  in  paragraph  (e)  of

  2  subdivision one of this section.

  3    (b)  Upon a railroad company's completion  of  the construction  of  a

  4  capital  project,  such  railroad    company may make application to the

  5  commissioner for certification under this section on forms prescribed by

  6  the department. If the commissioner finds that such capital project  was

  7  completed    in  accordance with, and is in compliance with, an approved

  8  capital project proposal, the commissioner is authorized to forward    a

  9  certificate  of approval to the owner thereof, with the approved capital

 10  project proposal for the completed capital project.

 11    (c) The department is hereby authorized to adopt and promulgate  rules

 12  and  regulations  necessary  for   the implementation of  this  section.

 13  Such  regulations may relate to the nature and content of eligible capi-

 14  tal projects, approved capital  project  proposals,  certifications  and

 15  notices  issued    by  the  commissioner and completed capital projects.

 16  Regulations relating to capital projects and approved capital    project

 17  proposals   or amendments thereto may provide for alternative or contin-

 18  gent terms based on the scope and nature of the capital project.

 19    (d) Any completed capital project certified pursuant to this  subdivi-

 20  sion  shall  be  subject to the provisions of  this  section.  The obli-

 21  gations  of this section shall devolve  upon  and  the benefits inure to

 22  the owner, its heirs, successors and assigns.

 23    3. (a) Whenever any alteration of a completed   capital  project    is

 24  proposed during the period of exemption pursuant to section four hundred

 25  eighty-nine-d or four hundred eighty-nine-dd of this article in a manner

 26  that  would  reduce  the  utility  of the completed capital project, the

 27  owner shall give not less than sixty days' notice to the commissioner in

 28  a manner and upon such form as may be prescribed by the department. Such

                                        277                        12022-01-1

  1  notice shall include information as to the location and nature  of  such

  2  proposed alteration.

  3    (b) The commissioner may in response to a notice from a property owner

  4  or on the commissioner's own initiative, after notice and hearing, issue

  5  a  notice  of revocation of  the certificate of approval issued pursuant

  6  to this section for any completed capital project whenever  the  commis-

  7  sioner finds that:

  8    (i) any completed capital project or portion thereof is not maintained

  9  or  is converted to a use which precludes the use of the improvement for

 10  common carrier railroad use; or

 11    (ii) the owner fails to give notice of a proposed alteration of   such

 12  completed capital project pursuant to paragraph (a) of this subdivision;

 13  or

 14    (iii) the owner fails to comply with the terms of the approved capital

 15  project proposal for such improved property.

 16    4.    Any determination made pursuant to this section shall be binding

 17  upon the state board in any calculation pursuant to this title or  title

 18  two-B of this article.

 19    §  6.  The  real  property  tax law is amended by adding a new section

 20  489-w to read as follows:

 21    §  489-w.  Railroad  ceiling;  adjustment.    1.  Implementation.  Any

 22  reduction  in  a  railroad ceiling established pursuant to this title or

 23  title two-B of this article resulting from amendments to this  title  or

 24  title  two-B  of this article effective in the year two thousand one for

 25  assessment rolls filed in two thousand  one  through  two  thousand  six

 26  shall be adjusted as follows:

 27    (a)  Ceilings  for  assessment rolls filed in two thousand one and two

 28  thousand two shall only be  reduced  by  one-fourth  of  the  difference

                                        278                        12022-01-1

  1  between  the  ceilings  or assessment against which taxes were levied on

  2  assessment rolls filed in two thousand and the ceilings  that  would  be

  3  established  for  the  two  thousand one and two thousand two assessment

  4  rolls but for the provisions of this section.

  5    (b)  Ceilings for assessment rolls filed in two thousand three and two

  6  thousand four shall only  be  reduced  by  one-half  of  the  difference

  7  between the ceilings against which taxes were levied on assessment rolls

  8  filed  in  two  thousand, and the ceilings that would be established for

  9  the two thousand three and two thousand four assessment  rolls  but  for

 10  the provisions of this section.

 11    (c)  Ceilings  for assessment rolls filed in two thousand five and two

 12  thousand six shall only be reduced by three-quarters of  the  difference

 13  between the ceilings against which taxes were levied on assessment rolls

 14  filed in two thousand and the ceilings that would be established for the

 15  two  thousand  five  and  two  thousand six assessment rolls but for the

 16  provisions of this section.

 17    (d) In calculating the limitations created by this section, the  state

 18  board  shall  reflect  any material change in level of assessment calcu-

 19  lated pursuant to article twelve of the real property tax  law  and  any

 20  new  construction  or  demolition in the amount of five hundred thousand

 21  dollars or more.

 22    2. State assistance. State assistance shall be paid to  local  govern-

 23  ments  whose tax bases are affected by amendments to this title or title

 24  two-B of this article enacted in the year two thousand one  pursuant  to

 25  this section provided that the determination of such assistance shall be

 26  subject to the approval of the director of the budget.

 27    (a)  Upon  annexation  of a warrant to an assessment roll filed in the

 28  year two thousand one, and upon receipt of that roll by  the  collecting

                                        279                        12022-01-1

  1  officer,  the  collecting  officer  shall  inform the state board of the

  2  amount of taxes due on any assessment of railroad transportation proper-

  3  ty appearing on that roll, or the taxes that would have been due on  the

  4  railroad  ceiling  for that property if such ceiling was higher than the

  5  assessment, and the taxes paid on the same assessment of  that  railroad

  6  real  property  appearing  on  the assessment roll filed in the year two

  7  thousand. The state board shall thereupon  certify  to  the  comptroller

  8  payment of state assistance in the amount of any difference.

  9    (b)  Upon  annexation  of a warrant to an assessment roll filed in two

 10  thousand two through two thousand four, the state  board  shall  certify

 11  payments  in  the  same  amount  as those certified for assessment rolls

 12  completed in two thousand one.  Upon  annexation  of  a  warrant  to  an

 13  assessment  roll  filed  in  two thousand five and two thousand six, the

 14  state board shall certify payments in the amount of  one  hundred  fifty

 15  percent  of  the  amount certified for assessment rolls completed in two

 16  thousand one. For assessment  rolls  completed  in  two  thousand  seven

 17  through  two thousand ten, the state board shall certify payments in the

 18  amount of two hundred percent of the  amount  certified  for  assessment

 19  rolls  completed in two thousand one. Such state assistance shall not be

 20  available for assessment rolls completed  in  two  thousand  eleven  and

 21  thereafter.

 22    (c)  The  amount  of any assistance certified pursuant to this section

 23  may be modified to reflect proportionally new construction or demolition

 24  in the amount of five hundred thousand dollars or more.

 25    (d) No payment of state aid shall be made pursuant to this section  if

 26  a  railroad ceiling, adjusted pursuant to paragraph (c) of this subdivi-

 27  sion, is higher than the ceiling established  for  the  assessment  roll

 28  filed in the year two thousand.

                                        280                        12022-01-1

  1    (e)  No payment of state aid shall be made pursuant to this section if

  2  the amount of such payment would be less than one hundred dollars.

  3    §  7.  Subdivisions 2 and 3 of section 489-dd of the real property tax

  4  law, as added by chapter 920 of the laws of 1977, is amended and two new

  5  subdivisions 6 and 7 are added to read as follows:

  6    2.  Bridges, viaducts and other similar structures constructed  on  or

  7  after  January  first,  nineteen hundred fifty-nine as the result of the

  8  creation, pursuant to article twelve-B of the  highway  law,  of  a  new

  9  highway,  street  or roadway, carrying railroad facilities over such new

 10  highway, street or roadway shall be exempt from taxation.  No assessment

 11  of any bridges, viaducts and  other  similar  structures  lengthened  or

 12  reconstructed  on or after January first, nineteen hundred fifty-nine as

 13  the result of the widening, relocation or reconstruction of an  existing

 14  highway,  street or roadway, pursuant to article twelve-B of the highway

 15  law shall be increased by reason of such reconstruction  or  relocation,

 16  notwithstanding  the  provisions of any general, special or local law to

 17  the contrary; provided, however, that the  assessment  on  the  original

 18  portion  of  such  bridges, viaducts and other similar structures may be

 19  varied in accordance with the changes made generally in  assessments  on

 20  other  local  real  property.    Whenever  any new construction would be

 21  exempt pursuant to both the  provisions  of  this  subdivision  and  the

 22  provisions  of  subdivision  six  or seven of this section, the property

 23  shall receive the exemption provided by such subdivision six or seven.

 24    3.  Railroad real property shall be exempt from taxation to the extent

 25  of any increase in value thereof by reason of any of the following addi-

 26  tions, betterments, improvements, or reconstructions made  or  installed

 27  thereon  after  the  last  preceding  taxable status date prior to April

 28  twenty-first, nineteen hundred fifty-nine; (a) the installation of auto-

                                        281                        12022-01-1

  1  matic grade crossing protective devices,  such  as  flashing  lights  or

  2  automatic  gates  and their attendant facilities; (b) the reconstruction

  3  or the replacement of signals, railroad bridges, stations, freight hous-

  4  es,  classification  yards, repair shops, or any other facility used for

  5  transportation purposes, provided that the property as reconstructed  or

  6  replaced is the same general type of facility and is located in the same

  7  city  or  town  as  the  property reconstructed or replaced; and (c) the

  8  construction or reconstruction pursuant to  the  grade  crossing  elimi-

  9  nation  acts,  the  railroad  law, or the highway law of any grade sepa-

 10  ration structure, such as bridges, viaducts,  tunnels,  retaining  walls

 11  and  embankments  constructed for the purpose of eliminating or avoiding

 12  highway-railroad crossings at grade.  Whenever   any   new  construction

 13  would  be exempt pursuant to both the provisions of this subdivision and

 14  the provisions of subdivision six or seven of this section, the property

 15  shall receive the exemption provided by such subdivision six or seven.

 16    6. Whenever a railroad company makes any improvements, enhancements or

 17  upgrades to any existing railroad real  property  in  order  to  improve

 18  freight  service  or  to  provide improved or new passenger service, the

 19  cost of that project shall not be included in  the  calculation  of  any

 20  subsequent  railroad ceilings for a period of ten years from the date of

 21  completion of that project provided that  those  improvements,  enhance-

 22  ments  or  upgrades  were  made  pursuant  to a capital project proposal

 23  approved by the commissioner of  the  department  of  transportation  as

 24  provided  in  section  four  hundred  eighty-nine-v of this article. The

 25  department of transportation  shall  certify  to  the  state  board  the

 26  location  and cost of any such improvements, enhancements or upgrades in

 27  a manner that provides the state board with sufficient time to carry out

 28  its responsibilities pursuant to this chapter.

                                        282                        12022-01-1

  1    7. The cost of bridges, viaducts, other structures or improvements and

  2  new rail lines, including any new rail lines built to  replace  existing

  3  rail  lines,  shall not be included in the calculation of any subsequent

  4  railroad ceilings for a period of ten years from the date of  completion

  5  of  that project provided that this construction was pursuant to a capi-

  6  tal project proposal approved by the commissioner of the  department  of

  7  transportation as provided in section four hundred eighty-nine-v of this

  8  article.  The  department  of  transportation shall certify to the state

  9  board the location and cost of any such construction in  a  manner  that

 10  provides the state board with sufficient time to carry out its responsi-

 11  bilities pursuant to this chapter.

 12    §  8. Section 489-hh of the real property tax law is amended by adding

 13  two new subdivisions (b) and (c) to read as follows:

 14    (b) Notwithstanding the provisions of subdivision (a) of this section,

 15  for purposes of determining railroad ceilings for  interstate  railroads

 16  for  assessment rolls completed in the year two thousand one and follow-

 17  ing, the percentage indicated opposite the ratio shall be  the  economic

 18  factor. If the ratio does not coincide with a specific rate indicated in

 19  the  table,  the economic factor for such company shall be determined by

 20  interpolation to the nearest tenth of one percent.

 21            Ratio                                   Economic

 22                                                    Factor

 23                                                    (Percent)

 24             .60                                    100

 25             .65                                     85

 26             .70                                     70

 27             .75                                     60

                                        283                        12022-01-1

  1             .80                                     50

  2             .85                                     40

  3             .90                                     30

  4             .95                                     20

  5            1.00                                     15

  6    (c) Notwithstanding the provisions of subdivision (b) of this section,

  7  whenever  it  would  appear  that an economic factor would increase more

  8  than one-tenth from that established in the prior year, the increase may

  9  not exceed one-tenth.

 10    § 9. Section 489-ii of the real property tax law is amended by  adding

 11  three new subdivisions 7, 8 and 9 to read as follows:

 12    7.  In  determining  local  reproduction cost for purposes of railroad

 13  ceilings determined for assessment  rolls  filed  on  or  after  January

 14  first,  two  thousand  one, grading shall be deemed a depreciable asset.

 15  The allowance for depreciation of grading shall be eighteen percent  for

 16  each year in service up to a total of ninety percent.

 17    8.  In  determining  local  reproduction cost for purposes of railroad

 18  ceilings determined for assessment  rolls  filed  on  or  after  January

 19  first,  two thousand one, the state board shall not include a factor for

 20  soft costs or other construction overhead in its calculation.

 21    9. In determining a local reproduction cost for purposes  of  railroad

 22  ceilings established for assessment rolls filed after January first, two

 23  thousand  one, the state board may allow for accelerated depreciation of

 24  track. For high speed/high tonnage track and medium  speed/high  tonnage

 25  track,  whether  main track or sidetrack, depreciation shall be acceler-

 26  ated to seventy-five percent. For low speed/medium tonnage track, wheth-

 27  er main track or side track, depreciation shall be accelerated to eight-

 28  y-five percent. For low speed/low tonnage track, whether main  track  or

                                        284                        12022-01-1

  1  sidetrack,  depreciation  shall  be accelerated to ninety percent.  Such

  2  accelerated depreciation shall only be granted  upon  application  of  a

  3  railroad  company.  Any accelerated depreciation shall be granted to all

  4  the tracks owned by the railroad in this state not otherwise exempt from

  5  inclusion  in  the  calculation  of  railroad  ceilings. The state board

  6  shall, in consultation with the department  of  transportation  and  the

  7  division of the  budget, establish by rule the schedules for accelerated

  8  depreciation  and  standards  for  improved  service that must be met in

  9  order for a railroad to  receive  such  accelerated  depreciation.  Such

 10  standards  may  be  based  upon  increased  tonnage,  increased level of

 11  passenger service, increased number of passenger trains and/or  improved

 12  on-time performance, increased average speed and any other factors indi-

 13  cating improved rail service that the state board may specify.

 14    §  10. This act shall take effect immediately and shall first apply to

 15  railroad ceilings established for assessment rolls with completion dates

 16  on or after January 1, 2001; provided, however, that,  if,  pursuant  to

 17  any  provision of law, taxes for the 2001-2002 fiscal year of any school

 18  district would be levied against an assessment  roll  completed  in  the

 19  year  2000,  the  state  board of real property services shall establish

 20  special railroad ceilings, which shall not be subject to any hearing  or

 21  other  administrative review, for that roll and levy that are calculated

 22  as if the provisions of this act were in effect for the  calculation  of

 23  ceilings  for  the  assessment  roll  completed in the year 2000. If any

 24  taxes have been levied against a ceiling established for  an  assessment

 25  roll  completed in 2001 prior to the date this act shall become law, the

 26  state board of real property services shall establish a special railroad

 27  ceiling, which shall not be subject to any hearing or other  administra-

 28  tive  review,  for  that  roll  and  levy  that are calculated as if the

                                        285                        12022-01-1

  1  provisions of this act were in effect for the calculation of that  ceil-

  2  ing,  and any local official having custody of an assessment or tax roll

  3  upon which such other ceiling appears is hereby authorized to enter this

  4  special   ceiling  upon  that  roll.  For  purposes  of  the  transition

  5  provisions added by section six of this act, any special  ceiling  shall

  6  be compared to the ceiling appearing on the assessment roll completed in

  7  the year 2000.

  8                                   PART E

  9    Section  1.  Subparagraphs (vi), (vii), and (viii) of paragraph (c) of

 10  subdivision 30 of section 305 of the education law, subparagraph (vi) as

 11  added and subparagraphs (vii) and (viii) as renumbered by chapter 182 of

 12  the laws of 2000, subparagraphs (vii) and (viii) as added by chapter 180

 13  of the laws of 2000, are amended to read as follows:

 14    (vi) where the applicant is to be fingerprinted  pursuant  to  section

 15  three  thousand  thirty-five  of this chapter, the process for seeking a

 16  waiver of the fees associated with conducting a criminal history records

 17  check, pursuant to paragraph (b) of subdivision four  of  section  three

 18  thousand thirty-five of this chapter , ; and

 19    (vii)  been informed that in the event his or her employment is termi-

 20  nated and such person has not become employed in  the  same  or  another

 21  school  district,  charter  school  or  board of cooperative educational

 22  services within  twelve-months  twelve months of such  termination,  the

 23  commissioner  shall  notify the division of criminal justice services of

 24  such termination, and the division of criminal  justice  services  shall

 25  destroy  the  fingerprints  of such person. Such person may request that

 26  the commissioner notify the division of criminal justice  services  that

                                        286                        12022-01-1

  1  his  or  her  fingerprints shall be destroyed prior to the expiration of

  2  such twelve month period in which case the commissioner shall notify the

  3  division of criminal justice services and the division shall destroy the

  4  fingerprints of such person promptly upon receipt of the request ; and

  5    (viii)  been  informed  of the manner in which he or she may submit to

  6  the commissioner any information that may be relevant to  the  consider-

  7  ation  of his or her application for clearance including, where applica-

  8  ble, information in regard to his or  her  good  conduct  and  rehabili-

  9  tation .

 10    §  2. Subdivision 39 of section 1604 of the education law, as added by

 11  chapter 180 of the laws of 2000, is amended to read as follows:

 12    39. Shall require, for purposes of a criminal  history  record  check,

 13  the  fingerprinting  of  all  prospective  employees pursuant to section

 14  three thousand thirty-five of this  chapter,   who  do  not  hold  valid

 15  clearance   except  that  such  fingerprinting  shall not be required of

 16  employees who:

 17    a. have been previously fingerprinted and have not had  their  finger-

 18  prints  destroyed  pursuant  to  subparagraph  (vi)  of paragraph (b) of

 19  subdivision thirty of section three hundred five of  this  chapter,  and

 20  who  have  had  a  criminal  history  report  transmitted  to the school

 21  district pursuant to such section three thousand thirty-five; or

 22    b. hold valid clearance pursuant to section three thousand  four-b  of

 23  this  chapter  or section five hundred nine-cc or twelve hundred twenty-

 24  nine-d of the vehicle and traffic law. Prior to initiating  the  finger-

 25  printing  process,  the prospective employer shall furnish the applicant

 26  with the form described  in  paragraph  (c)  of  subdivision  thirty  of

 27  section  three  hundred five of this chapter and shall obtain the appli-

 28  cant's consent to the criminal history  records  search.  Every  set  of

                                        287                        12022-01-1

  1  fingerprints  taken  pursuant  to  this  subdivision  shall  be promptly

  2  submitted to the commissioner for  purposes of clearance for employment 

  3  transmission to the division of criminal justice services.

  4    §  3. Subdivision 39 of section 1709 of the education law, as added by

  5  chapter 180 of the laws of 2000, is amended to read as follows:

  6    39. Shall require, for purposes of a criminal  history  record  check,

  7  the  fingerprinting  of  all  prospective  employees pursuant to section

  8  three thousand thirty-five of this  chapter,   who  do  not  hold  valid

  9  clearance   except  that  such  fingerprinting  shall not be required of

 10  employees who:

 11    a. have been previously fingerprinted and have not had  their  finger-

 12  prints  destroyed  pursuant  to  subparagraph  (vi)  of paragraph (b) of

 13  subdivision thirty of section three hundred five of  this  chapter,  and

 14  who  have  had  a  criminal  history  report  transmitted  to the school

 15  district pursuant to such section three thousand thirty-five; or

 16    b. hold valid clearance pursuant to section three thousand  four-b  of

 17  this  chapter  or section five hundred nine-cc or twelve hundred twenty-

 18  nine-d of the vehicle and traffic law. Prior to initiating  the  finger-

 19  printing  process,  the prospective employer shall furnish the applicant

 20  with the form described  in  paragraph  (c)  of  subdivision  thirty  of

 21  section  three  hundred five of this chapter and shall obtain the appli-

 22  cant's consent to the criminal history  records  search.  Every  set  of

 23  fingerprints  taken  pursuant  to  this  subdivision  shall  be promptly

 24  submitted to the commissioner for  purposes of clearance for employment 

 25  transmission to the division of criminal justice services.

 26    § 4. Subdivision 9 of section 1804 of the education law, as  added  by

 27  chapter 180 of the laws of 2000, is amended to read as follows:

                                        288                        12022-01-1

  1    9.  The  board  of education shall, for purposes of a criminal history

  2  record check, require the fingerprinting of  all  prospective  employees

  3  pursuant  to section three thousand thirty-five of this chapter,  who do

  4  not hold valid clearance  except that such fingerprinting shall  not  be

  5  required of employees who:

  6    a.  have  been previously fingerprinted and have not had their finger-

  7  prints destroyed pursuant to  subparagraph  (vi)  of  paragraph  (b)  of

  8  subdivision  thirty  of  section three hundred five of this chapter, and

  9  who have had  a  criminal  history  report  transmitted  to  the  school

 10  district pursuant to such section three thousand thirty-five; or

 11    b.  hold  valid clearance pursuant to section three thousand four-b of

 12  this chapter or section five hundred nine-cc or twelve  hundred  twenty-

 13  nine-d  of  the vehicle and traffic law. Prior to initiating the finger-

 14  printing process, the prospective employer shall furnish  the  applicant

 15  with  the  form  described  in  paragraph  (c)  of subdivision thirty of

 16  section three hundred five of this chapter and shall obtain  the  appli-

 17  cant's  consent  to  the  criminal  history records search. Every set of

 18  fingerprints taken  pursuant  to  this  subdivision  shall  be  promptly

 19  submitted to the commissioner for  purposes of clearance for employment 

 20  transmission to the division of criminal justice services.

 21    §  5.  Paragraph  11 of subdivision 4 of section 1950 of the education

 22  law, as added by chapter 180 of the laws of 2000, is amended to read  as

 23  follows:

 24    11.  Shall  require,  for purposes of a criminal history record check,

 25  the fingerprinting of all  prospective  employees  pursuant  to  section

 26  three  thousand  thirty-five  of  this  chapter,   who do not hold valid

 27  clearance  except that such fingerprinting  shall  not  be  required  of

 28  employees who:

                                        289                        12022-01-1

  1    a.  have  been previously fingerprinted and have not had their finger-

  2  prints destroyed pursuant to  subparagraph  (vi)  of  paragraph  (b)  of

  3  subdivision  thirty  of  section three hundred five of this chapter, and

  4  who have had  a  criminal  history  report  transmitted  to  the  school

  5  district pursuant to such section three thousand thirty-five; or

  6    b.  hold  valid clearance pursuant to section three thousand four-b of

  7  this chapter or section five hundred nine-cc or twelve  hundred  twenty-

  8  nine-d  of  the vehicle and traffic law. Prior to initiating the finger-

  9  printing process, the prospective employer shall furnish  the  applicant

 10  with  the  form  described  in  paragraph  (c)  of subdivision thirty of

 11  section three hundred five of this chapter and shall obtain  the  appli-

 12  cant's  consent  to  the  criminal  history records search. Every set of

 13  fingerprints taken pursuant to this paragraph shall be promptly  submit-

 14  ted to the commissioner for  purposes of clearance for employment  tran-

 15  smission to the division of criminal justice services.

 16    §  6. Subdivision 18 of section 2503 of the education law, as added by

 17  chapter 180 of the laws of 2000, is amended to read as follows:

 18    18. Shall require, for purposes of a criminal  history  record  check,

 19  the  fingerprinting  of  all  prospective  employees pursuant to section

 20  three thousand thirty-five of this  chapter,   who  do  not  hold  valid

 21  clearance   except  that  such  fingerprinting  shall not be required of

 22  employees who:

 23    a. have been previously fingerprinted and have not had  their  finger-

 24  prints  destroyed  pursuant  to  subparagraph  (vi)  of paragraph (b) of

 25  subdivision thirty of section three hundred five of  this  chapter,  and

 26  who  have  had  a  criminal  history  report  transmitted  to the school

 27  district pursuant to such section three thousand thirty-five; or

                                        290                        12022-01-1

  1    b. hold valid clearance pursuant to section three thousand  four-b  of

  2  this  chapter  or section five hundred nine-cc or twelve hundred twenty-

  3  nine-d of the vehicle and traffic law. Prior to initiating  the  finger-

  4  printing  process,  the prospective employer shall furnish the applicant

  5  with  the  form  described  in  paragraph  (c)  of subdivision thirty of

  6  section three hundred five of this chapter and shall obtain  the  appli-

  7  cant's  consent  to  the  criminal  history records search. Every set of

  8  fingerprints taken  pursuant  to  this  subdivision  shall  be  promptly

  9  submitted to the commissioner for  purposes of clearance for employment 

 10  transmission to the division of criminal justice services.

 11    §  7. Subdivision 25 of section 2554 of the education law, as added by

 12  chapter 180 of the laws of 2000, is amended to read as follows:

 13    25. Shall require, for purposes of a criminal  history  record  check,

 14  except  in the city school district of the city of New York, the finger-

 15  printing of all prospective employees pursuant to section three thousand

 16  thirty-five of this chapter,  who do not hold  valid  clearance   except

 17  that such fingerprinting shall not be required of employees who:

 18    a.  have  been previously fingerprinted and have not had their finger-

 19  prints destroyed pursuant to  subparagraph  (vi)  of  paragraph  (b)  of

 20  subdivision  thirty  of  section three hundred five of this chapter, and

 21  who have had  a  criminal  history  report  transmitted  to  the  school

 22  district pursuant to such section three thousand thirty-five; or

 23    b.  hold  valid clearance pursuant to section three thousand four-b of

 24  this chapter or section five hundred nine-cc or twelve  hundred  twenty-

 25  nine-d  of  the vehicle and traffic law. Prior to initiating the finger-

 26  printing process, the prospective employer shall furnish  the  applicant

 27  with  the  form  described  in  paragraph  (c)  of subdivision thirty of

 28  section three hundred five of this chapter and shall obtain  the  appli-

                                        291                        12022-01-1

  1  cant's  consent  to  the  criminal  history records search. Every set of

  2  fingerprints taken  pursuant  to  this  subdivision  shall  be  promptly

  3  submitted to the commissioner for  purposes of clearance for employment 

  4  transmission to the division of criminal justice services.

  5    § 8. Paragraph (a-2) of subdivision 3 of section 2854 of the education

  6  law,  as added by chapter 180 of the laws of 2000, is amended to read as

  7  follows:

  8    (a-2) The board of trustees of a charter  school  shall  require,  for

  9  purposes  of  a criminal history record check, the fingerprinting of all

 10  prospective employees pursuant to section three thousand thirty-five  of

 11  this chapter,  who do not hold valid clearance  except that such finger-

 12  printing shall not be required of employees who: (i) have been previous-

 13  ly  fingerprinted and have not had their fingerprints destroyed pursuant

 14  to subparagraph (vi) of paragraph (b) of subdivision thirty  of  section

 15  three  hundred  five of this chapter, an who have had a criminal history

 16  report transmitted to the school district pursuant to such section three

 17  thousand thirty-five; or (ii) hold valid clearance pursuant  to  section

 18  three thousand four-b of this chapter or section five hundred nine-cc or

 19  twelve  hundred  twenty-nine-d  of the vehicle and traffic law. Prior to

 20  initiating the fingerprinting process, the  prospective  employer  shall

 21  furnish the applicant with the form described in paragraph (c) of subdi-

 22  vision  thirty  of  section three hundred five of this chapter and shall

 23  obtain the applicant's consent to the criminal history  records  search.

 24  Every  set  of  fingerprints  taken  pursuant to this paragraph shall be

 25  promptly submitted to the commissioner for  purposes  of  clearance  for

 26  employment  transmission to the division of criminal justice services.

                                        292                        12022-01-1

  1    §  9.  Subdivisions  2  and 3 of section 3035 of the education law, as

  2  added by chapter 180 of the laws of 2000, are amended and two new subdi-

  3  visions 3-a and 3-b are added to read as follows:

  4    2.  No  cause of action against the commissioner, the department  or ,

  5  the division of criminal justice services, the federal bureau of  inves-

  6  tigation,  or  their  officers  or employees, for damages related to the

  7  dissemination of criminal history records pursuant to this section shall

  8  exist when the  commissioner,  department   or ,  division  of  criminal

  9  justice services, the federal bureau of investigation, or their officers

 10  or  employees,   has   have reasonably and in good faith relied upon the

 11  accuracy and completeness of criminal history information  furnished  to

 12   it   them  by  qualified agencies. The provision of such information by

 13  the division of criminal  justice  services  shall  be  subject  to  the

 14  provisions  of  subdivision sixteen of section two hundred ninety-six of

 15  the executive law.  The  Where the criminal history record of an  appli-

 16  cant  reveals a conviction for a crime other than one set forth in para-

 17  graph one of subdivision three-b of this section, the  consideration  of

 18  such  criminal  history  record  by the commissioner shall be subject to

 19  article twenty-three-A of the correction law.

 20    3. After receipt of a criminal history record  from  the  division  of

 21  criminal  justice  services  and the federal bureau of investigation the

 22  commissioner shall promptly  notify  the  appropriate  school  district,

 23  charter  school or board of cooperative educational services whether the

 24  prospective employee to which such report relates is cleared for employ-

 25  ment based upon his or her criminal history.   All  Where  the  criminal

 26  history  record  of  an applicant reveals a conviction for a crime other

 27  than one set forth in paragraph  one  of  subdivision  three-b  of  this

 28  section,  the  determinations  to grant or deny clearance for employment

                                        293                        12022-01-1

  1  pursuant to this subdivision  shall  be  performed  in  accordance  with

  2  subdivision  sixteen  of section two hundred ninety-six of the executive

  3  law and article twenty-three-A of the correction law. When  the  commis-

  4  sioner  denies  a  prospective  employee  clearance for employment, such

  5  prospective employee shall be afforded notice and the right to be  heard

  6  and  offer  proof in opposition to such determination in accordance with

  7  the regulations of the commissioner.   The notification by  the  commis-

  8  sioner  to  a school district other than the city school district of the

  9  city of New York, a board of cooperative educational services or a char-

 10  ter school pursuant to this section shall include a summary of the crim-

 11  inal history record, if  any,  provided  by  the  division  of  criminal

 12  justice  services.  Such summary of the criminal history record provided

 13  by the commissioner to a school district, charter  school  or  board  of

 14  cooperative  educational  services  pursuant  to  this section, shall be

 15  confidential and shall not be available for public inspection; provided,

 16  however, nothing herein shall prevent a school district, charter  school

 17  or  board  of  cooperative educational services or the commissioner from

 18  disclosing criminal history information at any administrative  or  judi-

 19  cial proceeding relating to the denial of an application for employment.

 20  The  subject  of  a  criminal  history review conducted pursuant to this

 21  section shall be entitled to receive, upon written request,  a  copy  of

 22  the  summary of the criminal history record provided by the commissioner

 23  to the school district, charter school or board  of  cooperative  educa-

 24  tional services.

 25    3-a. Notwithstanding any other provision of law, rule or regulation to

 26  the  contrary,  where  a delay in obtaining such a notification from the

 27  commissioner on a criminal  history  record  check  would  result  in  a

 28  disruption  of  services, the governing board of a school district other

                                        294                        12022-01-1

  1  than the city school district of the city of New York, a board of  coop-

  2  erative  educational services or a charter school shall be authorized to

  3  make a conditional appointment of a prospective employee who is required

  4  to be fingerprinted pursuant to title two of this chapter that is condi-

  5  tioned  upon  the  receipt  of  a  criminal history record that does not

  6  disqualify the applicant for employment or otherwise contain information

  7  that would be a basis for denial of the application for  employment,  or

  8  holding  the application in abeyance, pursuant to subdivision three-b of

  9  this section, provided that such conditional appointment shall terminate

 10  upon receipt of  notice  from  the  commissioner  that  the  prospective

 11  employee has been disqualified for employment or upon a determination by

 12  the  governing board that prospective employee's application for employ-

 13  ment should be denied or held in abeyance;  and  provided  further  that

 14  such  governing  board  shall not allow the prospective employee to have

 15  unsupervised contact with children during such time.

 16    3-b. (a) Notwithstanding any other provision of law to  the  contrary,

 17  where the criminal  history record of a prospective employee of a school

 18  district  other than the city school district of the city of New York, a

 19  board of cooperative educational services or a  charter  school  who  is

 20  required  to  be  fingerprinted  pursuant  to  title two of this chapter

 21  reveals a felony conviction at any time for a sex offense, crime against

 22  a child, or a crime involving violence, or a  felony  conviction  within

 23  the  past  five years for a drug-related offense, the commissioner shall

 24  notify the governing board of the school district, board of  cooperative

 25  educational  services or charter school that the individual is disquali-

 26  fied for employment and shall direct the governing board not  to  employ

 27  such  individual, unless  the commissioner determines that employment of

                                        295                        12022-01-1

  1  the prospective employee will not in  any  way  jeopardize  the  health,

  2  safety or welfare of students or staff.

  3    (b)  Where  the criminal history record of such a prospective employee

  4  reveals a conviction for a crime other than one set forth  in  paragraph

  5  one of this subdivision, the commissioner may disqualify the prospective

  6  employee  and  shall  notify the governing board of the school district,

  7  board of cooperative educational services or charter school accordingly.

  8  Such disqualification for employment shall be pursuant to regulations of

  9  the commissioner and shall be consistent with  article twenty-three-A of

 10  the correction law.

 11    (c) Notwithstanding any other law, rule or regulation to the contrary,

 12  where the criminal history record of such a prospective employee reveals

 13  a charge for any crime, the governing  board  of  the  school  district,

 14  board  of  cooperative educational services or charter school shall hold

 15  the application for employment in abeyance until the charge  is  finally

 16  resolved,  unless  the  governing board determines, in  its  discretion,

 17  that approval of the application for employment  will  not  in  any  way

 18  jeopardize  the  health,  safety or welfare of students or staff and the

 19  governing board assures that such individual will not have  unsupervised

 20  contact with children until the charge is finally resolved.

 21    (d)  Where  the  commissioner  directs the governing board of a school

 22  district, board of cooperative educational services  or  charter  school

 23  not  to  employ  a  prospective  employee  or to hold an application for

 24  employment in abeyance,  the  governing board of  the  school  district,

 25  board of cooperative educational services or charter school shall notify

 26  the  prospective employee that his or her application for employment may

 27  be denied or held in abeyance based  on  the  criminal  history  records

 28  check  and  shall  afford  the  prospective  employee  an opportunity to

                                        296                        12022-01-1

  1  explain, in  writing, why the application should not be denied  or  held

  2  in abeyance.

  3    (e)  Notwithstanding  any  other provision of law to the contrary, the

  4  commissioner, upon receipt of a criminal history record from  the  divi-

  5  sion  of  criminal  justice  services,  may  request, and is entitled to

  6  receive, information pertaining to any crime contained in such  criminal

  7  history  record from any state or local law enforcement agency, district

  8  attorney, parole officer, probation officer or court for the purposes of

  9  determining whether any ground relating to such criminal  conviction  or

 10  pending  criminal   charge   exists   for   denying   an application for

 11  employment.

 12    § 10. This act shall take effect on the same date  as  section  14  of

 13  chapter 180 of the laws of 2000, takes effect.

 14                                   PART F

 15    Section  1.  Subdivision  5  of  section  503 of the executive law, as

 16  amended by chapter 465 of the laws  of  1992,  is  amended  to  read  as

 17  follows:

 18    5.  No  detention facility shall receive or care for children detained

 19  pursuant to the family court act or the criminal  procedure  law  unless

 20  certified  by  the   division   office  of children and family services,

 21  which certification shall include a maximum-capacity which shall not  be

 22  exceeded.  No  certification  shall  be  issued or renewed unless such a

 23  facility has developed and  implemented  a  procedure,  consistent  with

 24  appropriate  collective  bargaining agreements and applicable provisions

 25  of the civil service law, for reviewing and evaluating  the  backgrounds

 26  of  and the information supplied by any person applying to be an employ-

                                        297                        12022-01-1

  1  ee, volunteer or consultant, which shall include but not be  limited  to

  2  the  following  requirements:  that  the  applicant set forth his or her

  3  employment history, provide personal and employment references and  sign

  4  a  sworn  statement indicating whether the applicant, to the best of his

  5  or her knowledge, has ever been convicted of a crime in  this  state  or

  6  any other jurisdiction.

  7    (a)  The   division   office  of  children  and  family services shall

  8  promulgate  regulations  governing  procedures  for   certification   of

  9  detention  facilities   and ,  for renewal, suspension and revocation of

 10  such certifications, and for imposition of any fiscal  sanction.    Such

 11  regulations shall provide for a hearing prior to the suspension or revo-

 12  cation of a certification or imposition of a fiscal sanction.

 13    (b)  The  division  office of children and family services may suspend

 14  a certification for good cause shown.  Suspension  shall  mean  that  no

 15  persons  coming  within  the provisions of article three or seven of the

 16  family court act and no alleged or convicted juvenile  offender  may  be

 17  received  for  care in a detention facility, but persons already in care

 18  may remain in  care.  The   division   office  of  children  and  family

 19  services  may  impose such conditions in the event of a suspension as it

 20  shall deem necessary and proper.

 21    (c) The  division  office of children and family services may revoke a

 22  certification for good  cause  shown.  Revocation  shall  mean  that  no

 23  persons  coming  within  the provisions of article three or seven of the

 24  family court act and no alleged or convicted juvenile  offender  may  be

 25  received for care nor remain at the detention facility.

 26    (d)  The  office  of  children and family services may impose a fiscal

 27  sanction against a detention facility that is found to be  in  violation

 28  of   office  of  children  and  family  services  regulations  governing

                                        298                        12022-01-1

  1  detention services. The office of children and family services also  may

  2  impose  a  fiscal sanction in conjunction with the suspension or revoca-

  3  tion of the certification of  a  detention  facility  pursuant  to  this

  4  subdivision.

  5    §  2. Subdivision 4 of section 530 of the executive law, as amended by

  6  chapter 880 of the laws of 1976, paragraph (a) as amended by chapter 419

  7  of the laws of 1987 and paragraph (c) as added by  chapter  169  of  the

  8  laws of 1994, is amended to read as follows:

  9    4.  (a)  The  social  services districts must notify the  division for

 10  youth  office of children and family  services  of  state  aid  received

 11  under  other  state aid formulas by each detention facility, and, in the

 12  city of New York, by each foster care facility which is providing  care,

 13  maintenance and supervision for which the district is seeking reimburse-

 14  ment  pursuant  to  this  section, including but not limited to, aid for

 15  education, probation and mental health services.

 16    (b) In computing reimbursement to the social services districts pursu-

 17  ant to this section,  the   division   office  of  children  and  family

 18  services  shall  insure  that the aggregate of state aid under all state

 19  aid formulas shall not exceed fifty percent of the cost of care, mainte-

 20  nance and supervision provided detainees, exclusive of federal  aid  for

 21  such purposes.

 22    (c)  Reimbursement  for administrative related expenditures as defined

 23  by the  director  commissioner of the  division  for  youth   office  of

 24  children  and  family  services,  for  secure  and  nonsecure  detention

 25  services shall not  exceed  seventeen  percent  of  the  total  approved

 26  expenditures  for  facilities  of twenty-five beds or more and shall not

 27  exceed twenty-one percent of the total approved expenditures for facili-

 28  ties with less than twenty-five beds.

                                        299                        12022-01-1

  1    (d) Prior to approving expenditures for the purposes of  reimbursement

  2  pursuant  to  this  section,  the office of children and family services

  3  shall ascertain that such expenditures were  reasonable  and  necessary.

  4  The  office  of  children and family services may promulgate regulations

  5  establishing  standards of payment for care, maintenance and supervision

  6  provided to youth in detention facilities.

  7    § 3. This act shall take effect on April 1, 2001.

  8                                   PART G

  9    Section 1. Subdivision 4 of  section  508  of  the  executive  law  is

 10  REPEALED  and  subdivisions  5  through  8 are renumbered subdivisions 4

 11  through 7.

 12    § 2. Subdivision 4 of section 508 of the executive law,  as  added  by

 13  chapter  481  of the laws of 1978, such section as renumbered by chapter

 14  465 of the laws of 1992 and such subdivision as  renumbered  by  section

 15  one of this act is amended to read as follows:

 16    4. The  division for youth  office of children and family services may

 17  transfer  an  offender  not  less  than  eighteen  sixteen nor more than

 18  twenty-one years of age to the department of  correctional  services  if

 19  the   director   commissioner  of the  division  office certifies to the

 20  commissioner of correctional services, in accordance with  the  specific

 21  criteria  contained in regulations promulgated by the office of children

 22  and family services, that there is no substantial  likelihood  that  the

 23  youth will benefit from the programs offered by  division  office facil-

 24  ities.

 25    § 3. This act shall take effect April 1, 2001.

                                        300                        12022-01-1

  1                                   PART H

  2    Section  1.  Subdivision  3  of  section 6401 of the education law, as

  3  amended by chapter 511 of the laws  of  1997,  is  amended  to  read  as

  4  follows:

  5    3.  Degree  awards.  The  amount  of such annual apportionment to each

  6  institution meeting the requirements of subdivision two of this  section

  7  shall  be  computed  by multiplying by not to exceed six hundred dollars

  8  the number of earned associate degrees, by not to  exceed  one  thousand

  9  five  hundred dollars the number of earned bachelor's degrees, by not to

 10  exceed nine hundred fifty dollars the number of earned master's degrees,

 11  and by not to exceed four thousand five hundred fifty dollars the number

 12  of earned doctorate degrees, conferred by such  institution  during  the

 13  twelve-month  period  next  preceding  the  annual period for which such

 14  apportionment is made, provided that there shall be  excluded  from  any

 15  such  computation  the number of degrees earned by students with respect

 16  to whom state aid other than that established by this section is granted

 17  directly to the institution, and provided further that, except as other-

 18  wise provided in this subdivision, the amount apportioned for an associ-

 19  ate degree shall be awarded only to  two  year  institutions  qualifying

 20  under subdivision two of this section.  The numbers of earned associate,

 21  bachelor's, master's and doctorate degrees used to calculate the amounts

 22  awarded  to each institution under this section shall include only those

 23  degrees awarded to graduates who are residents of New  York  state.  The

 24  regents  shall  promulgate  rules  defining and classifying professional

 25  degrees for the purposes of this section.  Institutions  qualifying  for

 26  state aid pursuant to the provisions of paragraph (b) of subdivision two

 27  of this section shall, for purposes of this subdivision, be deemed to be

                                        301                        12022-01-1

  1  the institutions which confer degrees. For purposes of this subdivision,

  2  a  two-year  institution which has received authority to confer bachelor

  3  degrees shall continue to be considered  a  two-year  institution  until

  4  such  time  as  it  has  actually begun to confer the bachelor's degree.

  5  Thereafter, notwithstanding any other provision of law to the  contrary,

  6  an  institution  which  was  formerly  a  two-year  institution  for the

  7  purposes of this section and which was granted authority by the  regents

  8  to confer bachelor degrees, such authority having been granted after the

  9  first  day  of June, nineteen hundred ninety-three, but before the first

 10  day of July, nineteen hundred ninety-three, may  elect  to  continue  to

 11  receive  awards for earned associate degrees. Should such institution so

 12  elect, it shall not be eligible during the  time  of  such  election  to

 13  receive awards for earned bachelor's degrees.

 14    § 2. This act shall take effect September 1, 2001.

 15                                   PART I

 16    Section  1.  Subparagraph 4 of paragraph h of subdivision 2 of section

 17  355 of the education law, as amended by chapter 309 of the laws of 1996,

 18  is amended to read as follows:

 19    (4) The trustees shall not impose a differential tuition charge  based

 20  upon  need  or  income.  All students enrolled in undergraduate programs

 21  leading to like degrees at  state-operated  institutions  of  the  state

 22  university shall be charged a uniform rate of tuition except for differ-

 23  ential  tuition  rates based on state residency. Provided, however, that

 24  the trustees may authorize the presidents of the colleges of  technology

 25  and the colleges of agriculture and technology to set differing rates of

 26  tuition  for each of the colleges for students enrolled in degree-grant-

                                        302                        12022-01-1

  1  ing programs leading to an  associate  degree  and  non-degree  granting

  2  programs  so  long as such tuition rate does not exceed the tuition rate

  3  charged to students who are enrolled in like degree programs or  degree-

  4  granting  undergraduate  programs  leading  to a baccalaureate degree at

  5  other state-operated institutions of the state university of  New  York.

  6  The  trustees shall not adopt changes affecting tuition charges prior to

  7  the enactment of the annual budget.

  8    § 2. Paragraph (a) of subdivision 7 of section 6206 of  the  education

  9  law,  as  amended by chapter 344 of the laws of 1995, is amended to read

 10  as follows:

 11    (a) The board of  trustees  shall  establish  positions,  departments,

 12  divisions  and  faculties; appoint and in accordance with the provisions

 13  of law fix salaries of  instructional  and  non-instructional  employees

 14  therein;  establish  and conduct courses and curricula; prescribe condi-

 15  tions of student admission, attendance and discharge; and shall have the

 16  power to determine in its discretion whether tuition  shall  be  charged

 17  and  to  regulate  tuition  charges, and other instructional and non-in-

 18  structional fees and other fees and charges at the educational units  of

 19  the  city  university.  The  trustees  shall  not  impose a differential

 20  tuition charge based upon need  or  income.  All  students  enrolled  in

 21  undergraduate  programs  leading  to like degrees at the senior colleges

 22  shall be charged a uniform rate  of  tuition,  except  for  differential

 23  tuition  rates  based  on  state residency. The trustees shall not adopt

 24  changes in tuition charges prior to the enactment of the annual  budget.

 25  The board of trustees may accept as partial reimbursement for the educa-

 26  tion of veterans of the armed forces of the United States who are other-

 27  wise  qualified such sums as may be authorized by federal legislation to

 28  be paid for such education. The board of trustees may conduct on  a  fee

                                        303                        12022-01-1

  1  basis  extension  courses and courses for adult education appropriate to

  2  the field of higher education. In all courses and courses  of  study  it

  3  may,  in  its  discretion,  require students to pay library, laboratory,

  4  locker,  breakage and other instructional and non-instructional fees and

  5  meet the cost of books and consumable supplies. In addition to the fore-

  6  going fees and charges, the board of trustees  may  impose  and  collect

  7  fees and charges for student government and other student activities and

  8  receive and expend them as agent or trustee.

  9    §  3.  This  act  shall take effect immediately and shall be deemed to

 10  have been in full force and effect on and after April 1, 2001.

 11                                   PART J

 12    Section 1. Subdivision 14 of section 130 of the civil service law,  as

 13  added by chapter 685 of the laws of 1995, is amended to read as follows:

 14    14. Notwithstanding  any  foregoing  provisions of this section to the

 15  contrary, wage rates and/or pay differentials paid by the state pursuant

 16  to subdivision thirteen of section three  hundred  fifty-five-a  of  the

 17  education  law  to   teaching  and  research  center nurses  health care

 18  employees of the state university of New York  pursuant  to  subdivision

 19  thirteen  of section three hundred fifty-five-a of the education law  in

 20  the classified service who provide direct patient care, including  diag-

 21  nostic  and  therapeutic  services, may be based on a study of represen-

 22  tative peer institutions in private or other  public  hospitals  in  the

 23  same  geographic  area as a hospital of the state university which shows

 24  that pay differentials of   nurses   employees  with  similar  functions

 25  employed by such peer institutions are higher than the wage rates and/or

 26  pay  differentials  paid  by  the state to  teaching and research center

                                        304                        12022-01-1

  1  nurses  such health care employees in  the  classified  service  of  the

  2  state  university.  Whenever, in the opinion of the chief administrative

  3  officer of the health science centers or the president of the college of

  4  optometry  at which  teaching and research center nurses  such employees

  5  are employed, additional compensation for such employees is necessary to

  6  maintain adequate support to protect the health, safety and  welfare  of

  7  patients,  such  chief administrative officer or president shall request

  8  the state university board of trustees to conduct such a study.

  9    § 2. Subdivision 6 of section 350 of the education law,  as  added  by

 10  chapter 363 of the laws of 1998, is amended to read as follows:

 11    6.  "Clinic" shall mean a facility licensed under article twenty-eight

 12  of the public health law as a diagnostic and treatment center  which  is

 13  located  either  within  or  outside  of  a state university health care

 14  facility providing services related to the medical education mission  of

 15  the  university,  but  shall not include state university student health

 16  services.

 17    § 3. Section 350 of the education law  is  amended  by  adding  a  new

 18  subdivision 7 to read as follows:

 19    7.  "Board  of  directors" shall mean a board of directors established

 20  pursuant to the provisions of section three hundred fifty-six-a of  this

 21  article.

 22    §  4.  Paragraphs  a  and  d of subdivision 13 of section 355-a of the

 23  education law, as added by chapter 685 of the laws of 1995, are  amended

 24  to read as follows:

 25    a.  Whenever a representative study of peer institutions in private or

 26  other public hospitals in the same geographic area as a state university

 27  hospital shows that wage rates  and/or  pay  differentials  of   nurses 

 28  health care employees employed in such peer institutions are higher than

                                        305                        12022-01-1

  1  the  wage  rates and/or pay differentials paid by the state to  teaching

  2  and research center nurses  health care employees of the state universi-

  3  ty in the classified service who provide direct patient care,  including

  4  diagnostic  and  therapeutic services, the state university trustees may

  5  authorize and prescribe pay differentials which may be added as  adjust-

  6  ments  to  the  hiring rate, the job rate and the longevity steps of the

  7  salary grade or grades and/or  shift  differentials  for   teaching  and

  8  research  center  nurses in the classified civil service  such employees

  9  at the state university hospitals, clinics  or  other  ancillary  health

 10  care  facilities in such areas or locations. In each case, pay differen-

 11  tials under this  subdivision  shall  be  percentages  or  fixed  dollar

 12  amounts.  Such  differentials shall be in addition to and not in lieu of

 13  an employee's basic annual salary. Any performance advancement payments,

 14  performance awards, longevity payments or other rights  or  benefits  to

 15  which  an  employee  may be entitled shall be calculated from a combined

 16  base of annual salary plus differential payments. Any differential paya-

 17  ble pursuant to this subdivision shall be included as  compensation  for

 18  retirement  purposes.  A  pay  differential  shall be terminated for any

 19  employee when the employee ceases to be employed in a position, or area,

 20  or location for which such pay differential was authorized. Otherwise, a

 21  pay differential shall remain in  effect  for  each  such  employee  and

 22  future  pay  differentials shall be authorized pursuant to this subdivi-

 23  sion.

 24    d. The compensation described herein  is  limited  to  those   nurses 

 25  health care employees in the classified civil service who provide direct

 26  patient  care,  including  diagnostic  and therapeutic services, and are

 27  employed at state  university  health  care  facilities  at  the  health

 28  science  center  at  Syracuse, university hospital at the health science

                                        306                        12022-01-1

  1  center at Brooklyn  and , university hospital at the state university of

  2  New York at Stony Brook, and the optometric clinic at the state  univer-

  3  sity of New York college of optometry.

  4    §  5.  Subdivision 16 of section 355 of the education law, as added by

  5  chapter 363 of the laws of 1998, is amended and a new subdivision 19  is

  6  added to read as follows:

  7    16. Subject to laws and regulations applicable to the state university

  8  as a health care provider the state university trustees may:

  9    a.  Notwithstanding  subdivision six of this section, subdivisions two

 10  and three of section one hundred twelve, section one hundred sixty-three

 11  of the state finance law, and section sixty-three of the  executive  law

 12  authorize   contracts  for  a state university health care facility  for

 13  participation  to participate in managed care networks and  other  joint

 14  and  cooperative  arrangements with public, non-profit or business enti-

 15  ties  including entering into a maximum of twenty  network  arrangements

 16  per  year,   as  partners, joint venturers, members of non-profit corpo-

 17  rations and limited liability companies  and  shareholders  of  business

 18  corporations,  and  for  the  provision of management and administrative

 19  services by or for  a  state  university  health  care  facility.    Any

 20  contract  for  the  provision of management services shall be subject to

 21  any provision of the public health law and health regulations applicable

 22  to the state university as a health care provider, including any  review

 23  by  the commissioner of health pursuant to 10 NYCRR section 405.3(f). In

 24  addition, the commissioner of health shall provide  for  public  comment

 25  within  thirty  days of a submission of any management contract required

 26  to be reviewed pursuant to regulation. The trustees may  also  authorize

 27  contracts,  including   capitation   risk-sharing contracts, for a state

 28  university health care facility for the provision of general  comprehen-

                                        307                        12022-01-1

  1  sive  and  specialty  health care services, directly or through contract

  2  with other service providers or  entities,  including  state  university

  3  employees  or entities comprised thereof. Contracts authorized hereunder

  4  shall be:

  5    (1) consistent with trustee guidelines respecting all terms and condi-

  6  tions  necessary  and  appropriate  for  managed care networks and other

  7   network,   joint  or  cooperative  arrangements,  including  guidelines

  8  governing  the  awarding  of  such contracts, guidelines for comparative

  9  review where appropriate, and guidelines establishing conflict-of-inter-

 10  est policies;

 11    (2) subject to laws and regulations applicable to the state university

 12  as a health care provider, including with respect to rates  and  certif-

 13  icates of need; and

 14    (3)  subject  to  article  fourteen  of  the civil service law and the

 15  applicable provisions of  agreements  between  the  state  and  employee

 16  organizations pursuant to article fourteen of the civil service law.

 17    b. (1) Notwithstanding the provisions of  subdivision two  paragraph a

 18  of  subdivision  five  of  this  section,  subdivisions two and three of

 19  section one hundred twelve of the state  finance  law  relating  to  the

 20  dollar  threshold  requiring  the  comptroller's  approval  of contracts

 21   and , subdivision six of section one hundred sixty-three of  the  state

 22  finance  law,  and  section  sixty-three of the executive law, authorize

 23  contracts for the purchase of goods and services  for  state  university

 24  health care facilities without prior approval by any other state officer

 25  or agency:

 26     (1)   (A)  for  any contract which does not exceed  seventy-five  (i)

 27  five hundred thousand dollars in the case of a  contract  for  services;

                                        308                        12022-01-1

  1  and  (ii)  two  million  five  hundred thousand dollars in the case of a

  2  contract for goods; or

  3     (2)   (B)  for  joint  or  group purchasing arrangements which do not

  4  exceed  seventy-five  two million five hundred thousand dollars  without

  5  prior approval by any other state, officer or agency in accordance  with

  6  procedures  and requirements found in paragraph a of subdivision five of

  7  this section .

  8     (3) contracts  (2) Contracts authorized hereunder shall be subject to

  9  article fourteen of the civil service law and the applicable  provisions

 10  of  agreements  between the state and employee organizations pursuant to

 11  article fourteen of the civil service law and shall be  consistent  with

 12  trustee guidelines governing the awarding of such contracts, comparative

 13  review where appropriate, and conflict-of-interest policies.

 14    The trustees are authorized to negotiate annually with the state comp-

 15  troller increases in the aforementioned dollar limits.

 16    Notwithstanding  any  inconsistent provisions of article four-C of the

 17  economic development law,  contracts  for  the  purchase  of  goods  and

 18  services  and  for  joint  or  group  purchasing  arrangements for state

 19  university health care facilities in an amount not exceeding the amounts

 20  set forth in clauses (A) and (B) of subparagraph one of paragraph (b) of

 21  this subdivision, or the dollar limit increases negotiated  annually  by

 22  the  trustees  and  the  state  comptroller, shall not be subject to the

 23  provisions of such article.

 24    Notwithstanding the provisions of section one hundred sixty-two of the

 25  state finance law, state university health care facilities shall not  be

 26  required to purchase goods or services from preferred sources.

 27    c.   Authorize   Notwithstanding  the provisions of subdivision six of

 28  this section, subdivisions two and three of section one  hundred  twelve

                                        309                        12022-01-1

  1  of  the state finance law, subdivision six of section one hundred sixty-

  2  three of the state finance law, and section sixty-three of the executive

  3  law, authorize contracts for the acquisition by state university  health

  4  care  facilities  of facilities suitable for the delivery of health care

  5  services, by purchase, lease,  sublease,  transfer  of  jurisdiction  or

  6  otherwise ,  of  facilities  suitable  for  the  delivery of health care

  7  services  and for  the  construction,  repair,  maintenance,  equipping,

  8  rehabilitation  or improvement thereof.  Such facilities may be acquired

  9  in whole or in part by state university health care  facilities,  either

 10  directly  or  through  ownership  in  a joint or cooperative arrangement

 11  authorized by paragraph a of this subdivision. Such contracts  shall  be

 12   subject  to  approval  by  the  attorney  general as to form and by the

 13  director of the budget and the  state  comptroller   executed  utilizing

 14  standard forms approved in advance by the attorney general, and shall be

 15  subject  to  approval  by the director of the budget and the state comp-

 16  troller when the amounts of such contracts exceed the dollar  thresholds

 17  set  forth in or established pursuant to paragraph b of this subdivision

 18  and shall be consistent with trustee guidelines governing  the  awarding

 19  of  such  contracts,  including  guidelines requiring comparative review

 20  where  appropriate  and  establishing  conflict  of  interest  policies.

 21  Contracts  under this paragraph shall be funded from any moneys lawfully

 22  available for the expenses of the state university health  care  facili-

 23  ties.

 24    d.  Contracts  under  this subdivision, including leases, shall not be

 25  subject to the dollar threshold or public notice and competitive bidding

 26  provisions of subdivision four of section seventy-three  of  the  public

 27  officers law.

                                        310                        12022-01-1

  1    e.  The  state university shall provide by July fifteenth of each year

  2  to the director of the budget and to the chairs of  the  senate  finance

  3  committee  and the assembly ways and means committee a report which sets

  4  forth with respect to contracts entered into during the  prior  year  by

  5  state  university  health  care  facilities (i) the amount, purpose, and

  6  duration of contracts and arrangements entered into  pursuant  to  para-

  7  graphs a and c of this subdivision, (ii) a listing of contracts over the

  8  amount  of  two  hundred fifty thousand dollars entered into pursuant to

  9  clause (A) of subparagraph one of paragraph b of this  subdivision,  and

 10  (iii)  the  amount, purpose and duration of contracts over the amount of

 11  two hundred fifty thousand dollars entered into pursuant to  clause  (B)

 12  of subparagraph one of paragraph b of this subdivision.

 13    19. Notwithstanding any inconsistent provision in section eight of the

 14  court  of  claims  act,  subdivision  ten  of  this section or any other

 15  provision of law, a state university health care facility may include in

 16  a contract authorized by paragraph a  of  subdivision  sixteen  of  this

 17  section,  other  than  a contract with state employees relating to terms

 18  and conditions of  their  employment,  a  provision  that  some  or  all

 19  disputes  arising under or related to such contract shall be resolved by

 20  binding arbitration in accordance with the rules of a  nationally-recog-

 21  nized arbitration association.

 22    §  6.  The  education  law is amended by adding a new section 356-a to

 23  read as follows:

 24    § 356-a. Boards of directors of state university health  care  facili-

 25  ties.   1. Subject to the general management, supervision and control by

 26  the state university trustees, the operations and affairs of  the  state

 27  university  health  care  facilities  of  the  state  university  health

 28  sciences centers at Brooklyn, Stony Brook and  Syracuse  shall  each  be

                                        311                        12022-01-1

  1  supervised  locally  by  a  board  of  directors  consisting of thirteen

  2  members. Ten members of each such board shall be appointed by the  state

  3  university  trustees,  upon  the  recommendation of the president of the

  4  state university campus of each locale pursuant to qualifications estab-

  5  lished  by the state university trustees. Members appointed by the state

  6  university trustees shall have expertise  in  matters  relating  to  the

  7  operation  and management of health care facilities, law, finance, medi-

  8  cine and other health professions, patients and consumers. The president

  9  of the state university campus of each locale shall serve,  ex  officio,

 10  as  the  eleventh member of each such board. The chief executive officer

 11  of the state university health care  facilities  of  each  locale  shall

 12  serve,  ex officio, as the twelfth member of such board. The dean of the

 13  school of medicine or the vice-president for  clinical  affairs  of  the

 14  state  university  health care facilities of each locale shall serve, ex

 15  officio, as the thirteenth member of each such  board.  All  members  of

 16  each  board  shall be voting members and shall be subject to every code,

 17  rule or regulation applying to  public  officers  with  respect  to  the

 18  discharge  of  their  duties  including,  but not limited to, provisions

 19  setting forth codes of ethics, disclosure requirements  and  prohibition

 20  of  certain  business  and professional activities. The president of the

 21  state university campus shall serve as chair. The state university trus-

 22  tees shall appoint four members of each board for  an  initial  term  of

 23  three  years,  three  members for an initial term of two years and three

 24  members for an initial term of one year. Vacancies shall be  filled  for

 25  the unexpired term in the same manner as original appointments. The term

 26  of  each member appointed by the state university trustees subsequent to

 27  the initial term, other than to fill an unexpired initial term, shall be

 28  three years. Members shall receive no compensation  for  their  services

                                        312                        12022-01-1

  1  but  shall  be  reimbursed  for  their expenses actually and necessarily

  2  incurred by them in the performance of their duties.

  3    2. Each board of directors shall provide for regular meetings at least

  4  six times annually, and the chair, or any seven members by petition, may

  5  call a special meeting of the board and fix the time and place therefor.

  6  Seven members attending shall constitute a quorum for the transaction of

  7  business and the act of a majority of the members present at any meeting

  8  shall  be the act of the board. A member's participation in a meeting of

  9  a board or committee thereof by means of teleconferencing  or  videocon-

 10  ferencing facilities shall constitute the member's presence for purposes

 11  of  a quorum. Any action required or permitted to be taken by a board or

 12  a committee thereof may be taken by unanimous  written  consent  of  all

 13  members  of  such  board or committee, as the case may be, and without a

 14  meeting of such board or committee.  In addition to the  matters  listed

 15  in  section  one  hundred five of the public officers law, a board and a

 16  committee of such board may conduct an executive session for the purpose

 17  of  considering  marketing  strategy  or  strategic   marketing   plans,

 18  analyses,  evaluations  and pricing strategies or pricing commitments of

 19  the related state university health care facilities, relating  to  busi-

 20  ness development including strategic alliances and contracts for managed

 21  care  and  other network arrangements, risk-sharing contracts, and other

 22  similar  arrangements  relating  to  business  development,  which,   if

 23  disclosed,  would  be  likely  to injure the competitive position of the

 24  related state university health care facilities.  Each board shall  hold

 25  at  least  one  public  hearing  each year for purposes of informing the

 26  public or the programs and plans with respect to  the  state  university

 27  health care facilities at the respective locale.

                                        313                        12022-01-1

  1    3.  Subject to the general management, supervision, and control by the

  2  state university trustees,  each  board  shall  exercise  the  following

  3  powers  with  respect  to the state university health care facilities at

  4  its locale:

  5    a.  to  appoint  the  chief  executive officer of its state university

  6  health care facilities upon  recommendation  of  the  president  of  the

  7  campus;

  8    b.  to review all major plans for the effective operation of the state

  9  university health care facilities at the respective locale;

 10    c. to review the proposed budget  requests  of  the  state  university

 11  health care facilities at the respective locale;

 12    d.  to  exercise the powers of the state university trustees set forth

 13  in subdivision sixteen of section three hundred fifty-five,  other  than

 14  the power of the state university trustees set forth in such subdivision

 15  to promulgate guidelines;

 16    e. to undertake fundraising and advocacy;

 17    f.  to  perform  such  other powers and duties as may be authorized or

 18  required by accreditation entities or  pursuant  to  the  provisions  of

 19  section  twenty-eight  hundred three of the public health law and imple-

 20  menting regulations thereunder; and

 21    g. to perform such other powers and duties as  may  be  authorized  or

 22  required by the state university trustees.

 23    § 7. Section 8 of chapter 363 of the laws of 1998, amending the educa-

 24  tion  law  relating to state university health care services and facili-

 25  ties, is amended to read as follows:

 26    § 8. 1. Nothing contained in the public officers law or in  any  other

 27  law,  rule or regulation, shall be construed or applied to: (a) prohibit

 28  state university officers and employees from  (i)   engaging  in  activ-

                                        314                        12022-01-1

  1  ities  for  which  no  compensation  is  paid  as designees of the state

  2  university of New York in managed care networks or other joint and coop-

  3  erative programs and arrangements including serving as designees of  the

  4  state  university  as  directors  on boards or other governing bodies of

  5  corporations or other entities which may be under  contract  with  state

  6  university  pursuant  to  subdivision 16 of section 355 of the education

  7  law; or  (ii)  (b) prohibit  state  university  officers  and  employees

  8  from, or prescribe the requirements for, entering into contracts includ-

  9  ing,  but  not limited to, leases, agreements or other arrangements with

 10  state university directly, or through professional corporations or other

 11  entities organized or operated by such officers and  employees  for  the

 12  delivery  of  health  care  services  for compensation in furtherance of

 13  subdivision 16 of section 355 of the education law;  provided,  however,

 14  that any such contracts, agreements or other arrangements, including any

 15  compensation to such officers and employees, shall be subject to article

 16  14  of the civil service law and the applicable provisions of any agree-

 17  ment between the state and any employee organization pursuant to article

 18  14 of the civil service law and policies and  guidelines  of  the  state

 19  university  board  of  trustees  and  provided, further, that such state

 20  university officers and employees shall continue to be subjected to  all

 21  appropriate  financial  disclosure and reporting requirements as defined

 22  in section 73-a of the public officers law.

 23    2. Nothing in paragraph b or c of subdivision 3 of section 74  of  the

 24  public officers law shall prohibit state university officers and employ-

 25  ees  who  serve  as designees of the state university on boards or other

 26  governing bodies of corporations or other entities which  may  be  under

 27  contract  with the state university or of which the state university may

 28  be a member, partner, joint venturer or shareholder pursuant to subdivi-

                                        315                        12022-01-1

  1  sion 16 of section 355 of the education law from disclosing confidential

  2  information gained in the course of their duties insofar as such  infor-

  3  mation  relates  directly  to  the  state  university's participation in

  4  contracts  or  in  networks and other joint and cooperative arrangements

  5  authorized by such subdivision.

  6    3. Notwithstanding any provisions to the contrary in sections 353, 354

  7  and 355 of the education law, or the provisions of any  other  law,  the

  8  state  university trustees may delegate to the presidents of the univer-

  9  sity centers at Buffalo and Stony Brook, to the presidents of the health

 10  sciences centers at Brooklyn and Syracuse, and to the president  of  the

 11  college  of  optometry,  or  to the chief executive officer of the state

 12  university health care facilities at  each  such  locale,  authority  to

 13  appoint  as  directors  on  a  board of a corporation or as members of a

 14  governing body of another entity which governs a network or other  joint

 15  or  cooperative  arrangement  authorized under subdivision 16 of section

 16  355 of the education law individuals who will serve as designees of such

 17  state university health care facility. Such designees shall not  include

 18  any elected officials or trustees of the state university.

 19    §  8. Confidential information gained by state university officers and

 20  employees while serving as designees of the state university  on  boards

 21  or other governing bodies of corporations or other entities which may be

 22  under contract with the state university or of which the state universi-

 23  ty  may  be a member, partner, joint venturer or shareholder pursuant to

 24  subdivision 16 of section 355 of the education law shall not be  consid-

 25  ered  a "record" as defined in subdivision 4 of section 86 of the public

 26  officers law.

 27    § 9. The state university of New York, in consultation with  appropri-

 28  ate bargaining unit representatives and the governor's office of employ-

                                        316                        12022-01-1

  1  ee  relations,  shall  develop  ways of classifying and deploying health

  2  care employees who provide direct patient care, including diagnostic and

  3  therapeutic services, to ensure the continued  viability  of  the  state

  4  university  health  care  facilities through the efficient deployment of

  5  staff resources. On or before April 1, 2001, the state university of New

  6  York shall submit its findings and recommendations to the  governor  and

  7  the legislature.

  8    §  10.  The  state  university  of  New York shall explore and develop

  9  alternative approaches for providing the state  university  health  care

 10  facilities  with  enhanced  access  to  capital financing and report its

 11  findings and recommendations to the governor and the legislature  on  or

 12  before April 1, 2001.

 13    § 11. This act shall take effect April 1, 2001.

 14    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-

 15  sion,  section  or  part  of  this act shall be adjudged by any court of

 16  competent jurisdiction to be invalid, such judgment  shall  not  affect,

 17  impair,  or  invalidate  the remainder thereof, but shall be confined in

 18  its operation to the clause, sentence, paragraph,  subdivision,  section

 19  or part thereof directly involved in the controversy in which such judg-

 20  ment shall have been rendered. It is hereby declared to be the intent of

 21  the  legislature  that  this  act  would  have been enacted even if such

 22  invalid provisions had not been included herein.

 23    § 3. This act shall take effect immediately  provided,  however,  that

 24  the  applicable effective date of Parts A through J of this act shall be

 25  as specifically set forth in the last section of such Parts.