A02458 Summary:

SAME ASNo same as
Add S273-b, Ed L; add S91-h, St Fin L
Authorizes the establishment of a public library revolving loan fund to provide loans to municipalities for local public library projects at an interest rate two points below the prime rate.
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A02458 Actions:

01/16/2009referred to libraries and education technology
01/06/2010referred to libraries and education technology
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A02458 Floor Votes:

There are no votes for this bill in this legislative session.
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A02458 Text:

                STATE OF NEW YORK
                               2009-2010 Regular Sessions
                   IN ASSEMBLY
                                    January 16, 2009
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Libraries and Education Technology
        AN ACT to amend the education law and the state finance law, in relation
          to establishing a public library revolving loan fund
          The People of the State of New York, represented in Senate and  Assem-

        bly, do enact as follows:
     1    Section  1. The education law is amended by adding a new section 273-b
     2  to read as follows:
     3    § 273-b.  Public library revolving loan program. 1.  The  commissioner
     4  shall  establish and maintain a public library revolving loan program to
     5  provide loans to libraries and library systems for the  purposes  desig-
     6  nated  in  this  part.  Notwithstanding the provisions of any law to the
     7  contrary, state financial assistance in  the  form  of  a  loan  may  be
     8  provided for up to fifty percent of the approved costs (excluding feasi-
     9  bility  studies,  plans  or similar activities) of eligible projects for
    10  capital construction by an eligible public, free association  or  Indian

    11  library,  or  by  a  public,  school  or  reference and research library
    12  resource system, as provided in this section. In areas of high need,  as
    13  defined  in  regulations  promulgated  by  the  commissioner pursuant to
    14  subdivision eleven of this section, a loan of up to seventy-five percent
    15  of approved costs  (excluding  feasibility  studies,  plans  or  similar
    16  activities)  may  be  approved by the commissioner. A library or library
    17  system may submit an application  for  state  financial  assistance  for
    18  eligible projects as provided in this section.
    19    2. The commissioner, after review of the programmatic and fiscal needs
    20  and  resources  of  the project and the library or library system, shall

    21  make a determination, subject to the restrictions, limitations,  respon-
    22  sibilities  and  requirements of this section, as to the amount of state
    23  financial assistance that the library or library system may receive  for
    24  any  amount  up  to  and  including  the amount of five hundred thousand
    25  dollars. Any financial  assistance  may  be  provided  from  the  public
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 2458                             2
     1  library revolving loan fund established pursuant to section ninety-one-h

     2  of  the state finance law. Interest in any such loan shall be set at two
     3  points below the prime rate.  Eligible projects shall include:
     4    a. construction of a new facility for library purposes;
     5    b.  improvement, expansion or rehabilitation of a building for library
     6  purposes;
     7    c. improvement, expansion or rehabilitation of  existing  building  or
     8  buildings to provide for handicapped accessibility;
     9    d. such other projects of substantive character as are in keeping with
    10  the spirit and intent of this section.
    11    No  project shall be considered eligible if it is approved for financ-
    12  ing from any other state assistance program, excepting aid  for  library
    13  construction  awarded pursuant to section two hundred seventy-three-a of

    14  this article.
    15    3. Each application for financial assistance shall be submitted to the
    16  commissioner by the board of trustees of the library or library  system.
    17  Each application shall:
    18    a.  demonstrate  that adequate operating support and resources will be
    19  available at the completion of the project to  provide  an  improved  or
    20  increased level of service;
    21    b.  contain  verification  in  such  form  as may be acceptable to the
    22  commissioner that the remaining cost of the project, exclusive of  state
    23  financial assistance, has been or will be obtained;
    24    c.  demonstrate  that  the  project  will be completed promptly and in
    25  accordance with the application;

    26    d. either demonstrate that the operation of the organization  will  be
    27  made more economical or efficient as a consequence of approval or demon-
    28  strate  that  health  and  safety concerns will be repaired or access to
    29  handicapped provided;
    30    e. demonstrate that the project will be conducted in  accordance  with
    31  applicable federal, state and local laws and regulations;
    32    f. demonstrate that, where appropriate, competitive bidding procedures
    33  will  be  followed as required by law, or provide such other evidence of
    34  competition as shall be satisfactory to the commissioner;
    35    g. provide an assessment of the useful life of the project,  and  such
    36  recommendation,  analysis  of  needs  or  feasibility  studies as may be

    37  required by the commissioner provided, however, that for the purposes of
    38  this section the term "useful life" shall mean such method of  calculat-
    39  ing  the worth of a project and the amount of annual depreciation neces-
    40  sary for effecting contracts under  this  section  as  the  commissioner
    41  shall  require  after  consultation  with the state comptroller and upon
    42  approval by the state division of the budget;
    43    h. demonstrate that the project will comply with  the  requirement  of
    44  article  fifteen-A of the executive law relating to the participation by
    45  minority group members and women;
    46    i. provide such other information as may be required  by  the  commis-
    47  sioner.

    48    4. Each library or library system may submit no more than one applica-
    49  tion  annually.  Any  other  provision  of  this section to the contrary
    50  notwithstanding, no library outlet shall receive state financial assist-
    51  ance under this section for more than one year in any consecutive three-
    52  year period.
    53    5. Any other provision of law or  of  this  section  to  the  contrary
    54  notwithstanding, state financial assistance shall not be provided pursu-
    55  ant to this section until the commissioner has:

        A. 2458                             3
     1    a.  considered the useful life of the eligible project as such term is
     2  defined in paragraph g of subdivision three of this section;

     3    b. determined the amount of state financial assistance to be provided;
     4  and
     5    c.  executed  an  agreement to provide such assistance. Such agreement
     6  shall be executed by the commissioner and the library or library system.
     7  Any such agreement shall provide for the creation of  a  lien  or  other
     8  security  interest  or  such other guarantee as shall be satisfactory to
     9  the commissioner to assure repayment of  financial  assistance  provided
    10  under  this  section.  Such  agreement shall assure that the length of a
    11  loan shall not exceed the useful life of the project and shall  include,
    12  in  addition  to  such  other provisions as the council may require, the
    13  following:

    14    (i) the amount of financial assistance, the terms and conditions  upon
    15  which  it  is  provided, the useful life of the eligible project and the
    16  method of depreciating the eligible project for purposes of  the  repay-
    17  ment provisions of the agreement;
    18    (ii)  a  requirement  that,  upon a finding by the commissioner that a
    19  project has not been completed, or has not been completed in  accordance
    20  with  the  terms  of the agreement, the outstanding balance of financial
    21  assistance provided in the form of a loan shall be repaid to the commis-
    22  sioner by the guarantor, provided that upon a showing of good  cause  by
    23  the  organization  the  commissioner  shall  grant an extension of up to

    24  ninety days from the date of  such  finding  to  allow  the  library  or
    25  library  system  to complete the project in accordance with the terms of
    26  the agreement, and further provided that the commissioner shall  provide
    27  no  more than two such extensions from the date of such finding to allow
    28  the library or library system to complete the project in accordance with
    29  the terms of the agreement.
    30    6. In any case in which state financial  assistance  is  provided  the
    31  following  shall  be  included  in the agreement: a requirement that the
    32  library or library system shall obtain, in addition to such other  secu-
    33  rity  as  may  be required by the commissioner or by other provisions of
    34  law, an undertaking or surety bond from any person or entity  which  has

    35  contracted to perform work on an approved project to assure the faithful
    36  performance  of  such project and/or a labor and/or material bond as may
    37  be appropriate.
    38    7. Any lien, security interest or guarantee established created  under
    39  the  provisions  of  subdivision five or six of this section shall be in
    40  addition to any other rights or obligations of  the  commissioner  under
    41  the provisions of the lien law or any other law.
    42    8.  The commissioner shall cause to be filed and to be recorded in the
    43  office of the county clerk in the county where the subject  property  is
    44  situated  any  lien  or  other  security  interest as may be required to
    45  assure  repayment  of  financial  assistance  in  accordance  with   the

    46  provisions  of  this  section.  The department of law shall provide such
    47  assistance as the commissioner may require to  create  and  perfect  any
    48  such liens or other security interests.
    49    9. In approving applications pursuant to this section, the commission-
    50  er  shall  seek  to  insure that sixty percent of the funds appropriated
    51  pursuant to this section shall be made available in such a manner as  to
    52  insure  that the ratio of the amount received within each public library
    53  system to the whole of the financial assistance made available  pursuant
    54  to  this  subdivision  is no greater than the ratio of the population of
    55  such public library system to the population of  the  state.  Any  funds

    56  made  available pursuant to this section which, by December thirty-first

        A. 2458                             4
     1  of the year in which this section shall have become a law,  and  October
     2  thirty-first of each year thereafter, are declined by or which cannot be
     3  used  by such libraries or library systems, as determined by the commis-
     4  sioner,  shall  be made available to other eligible libraries or library
     5  systems for eligible projects.
     6    10. In the event an eligible library or library system fails to make a
     7  payment on a loan or fails to make any other payment required under  the
     8  provisions  of  this  section,  the  commissioner shall inform the comp-
     9  troller of such failure and of the  amount  overdue,  which  amount  the

    10  comptroller  may  recover  from  any  payments due from the state to the
    11  eligible organization, including local assistance payments.
    12    11. The commissioner shall adopt guidelines within one hundred  eighty
    13  days  of  the effective date of this section, and shall promulgate rules
    14  and regulations not later than September first, two thousand nine as are
    15  necessary to carry out the purposes and provisions of this section.   In
    16  addition  to  any  other  requirements  set  forth  by this section, the
    17  commissioner shall establish procedures for the recoupment of  financial
    18  assistance  provided in the event that a project is not completed or not
    19  completed as proposed by the applicant library or library system. Copies

    20  of such rules and regulations shall be  provided  at  least  sixty  days
    21  prior  to the time they shall be effective to the senate finance commit-
    22  tee and the assembly ways and means committee.
    23    12. The commissioner shall report to the governor, the temporary pres-
    24  ident of the senate, the speaker of the  assembly,  the  chairs  of  the
    25  senate finance committee and assembly ways and means committee not later
    26  than  January fifteenth of each year concerning the amounts appropriated
    27  and expended pursuant  to  this  section,  the  number  of  applications
    28  received,  the total amount of financial assistance requested, the total
    29  number of applications funded, the amount of funding provided, and  such

    30  other  information  as  the  chair shall deem appropriate, including any
    31  recommendations for program improvement, recommendations for  increasing
    32  the  total  amount of funding from state and non-state sources available
    33  to increase total funds for projects  available  to  the  libraries  and
    34  library  systems  of  this  state,  in particular for rural and minority
    35  communities, and identification of and proposals for  removing  barriers
    36  or limits faced by communities in accessing the program or in maximizing
    37  use of funds provided hereunder.
    38    §  2. The state finance law is amended by adding a new section 91-h to
    39  read as follows:
    40     § 91-h. Public library revolving loan fund. 1. There is hereby estab-

    41  lished in the joint custody of the state comptroller and the commission-
    42  er of taxation and finance a special fund to be  known  as  the  "public
    43  library revolving loan fund".
    44    2.  The public library revolving loan fund shall consist of all monies
    45  appropriated, credited, or transferred thereto from the general fund  or
    46  any  other  source  pursuant  to  law,  including the repayment of loans
    47  provided to municipalities pursuant  to  section  two  hundred  seventy-
    48  three-b of the education law.
    49    § 3. This act shall take effect July 1, 2009.
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