Establishes the special education short-term revolving loan fund and authorizes the state comptroller to provide special education short-term revolving loans to certain special act school districts or approved special education providers.
STATE OF NEW YORK
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4988
2015-2016 Regular Sessions
IN ASSEMBLY
February 10, 2015
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Introduced by M. of A. NOLAN -- read once and referred to the Committee
on Education
AN ACT to amend the state finance law, in relation to establishing the
special education short-term revolving loan fund, and in relation to
authorizing the state comptroller to provide special education short-
term revolving loans to certain special act school districts or
approved special education providers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The state finance law is amended by adding a new section
2 99-w to read as follows:
3 § 99-w. Special education short-term revolving loan fund. 1. There is
4 hereby established in the joint custody of the comptroller and the
5 commissioner of taxation and finance a fund to be known as the special
6 education short-term revolving loan fund. Such fund shall consist of
7 moneys made available pursuant to appropriation and any other sources in
8 order to provide support for prompt contracting with and payment of
9 not-for-profit organizations.
10 2. Moneys of the fund may be expended pursuant to section one hundred
11 seventy-nine-ff of this chapter. Moneys shall be paid out of the fund on
12 the audit and warrant of the state comptroller pursuant to such section.
13 § 2. The state finance law is amended by adding a new section 179-ff
14 to read as follows:
15 § 179-ff. Special education short-term revolving loans. 1. The comp-
16 troller is authorized to provide loans from the special education short-
17 term revolving loan fund established by section ninety-nine-w of this
18 chapter to any special act school district or approved special education
19 provider seeking short-term financing for operations, pending tuition
20 payments as authorized under section forty-four hundred five of the
21 education law. The comptroller may provide such a loan to a special act
22 school district or approved special education provider upon receipt of a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08707-01-5
A. 4988 2
1 written agreement between the school district or provider and the state
2 education department outlining the need for such loan and the antic-
3 ipated tuition payment or tuition reconciliation that will provide
4 reasonable assurances of repayment that is satisfactory to the comp-
5 troller. Such loan shall not bear interest and repayment of such loan
6 may be made upon receipt of tuition payments and reconciliations, pursu-
7 ant to the written agreement.
8 2. The comptroller shall promulgate rules and regulations within nine-
9 ty days of the effective date of this section for the operation of the
10 special education short-term revolving loan fund which shall include,
11 but not be limited to, the criteria to be used in determining schools
12 and school districts eligible for assistance; a procedure and any neces-
13 sary information that schools and school districts need to submit appli-
14 cations for a loan from this fund; a schedule for reviewing such appli-
15 cations, not to exceed thirty days, and notification to an applicant of
16 approval or disapproval of such application for interim funding; and any
17 other requirements deemed necessary by the comptroller.
18 § 3. This act shall take effect immediately.
