STATE OF NEW YORK
________________________________________________________________________
7049
2023-2024 Regular Sessions
IN ASSEMBLY
May 10, 2023
___________
Introduced by M. of A. McDONALD -- read once and referred to the Commit-
tee on Education
AN ACT to amend the local finance law, in relation to the contracting of
indebtedness by city school districts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs b, c and d of section 104.00 of the local
2 finance law, paragraphs b and c as added by chapter 831 of the laws of
3 1951 and paragraph d as amended by chapter 424 of the laws of 2001, are
4 amended to read as follows:
5 b. No county, city, town[,] or village [or school district in a city]
6 shall contract indebtedness for any purpose or in any manner which,
7 including existing indebtedness, shall exceed an amount equal to the
8 following percentages of the average full valuation of such county,
9 city, town[,] or village [or school district]:
10 1. The county of Nassau, for county purposes, ten per centum;
11 2. Any county, other than the county of Nassau, for county purposes,
12 seven per centum;
13 3. The city of New York, for city purposes, ten per centum;
14 4. Any city, other than the city of New York, having one hundred twen-
15 ty-five thousand or more inhabitants according to the latest federal
16 census, for city purposes[;], nine per centum;
17 5. Any city having less than one hundred twenty-five thousand inhabit-
18 ants according to the latest federal census, for city purposes, [exclud-
19 ing education purposes,] seven per centum;
20 6. Any town, for town purposes, seven per centum; and
21 7. Any village, for village purposes, seven per centum[; and
22 8. Any school district in a city, for education purposes, five per
23 centum].
24 c. [Notwithstanding the provisions of paragraph b of this section any
25 school district in a city may issue bonds, bond anticipation notes or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10983-01-3
A. 7049 2
1 capital notes for a specific object or purpose, and, where authorized by
2 this chapter, for a class of objects or purposes, in an amount which,
3 including existing indebtedness, shall exceed an amount equal to five
4 per centum of the average full valuation of such school district,
5 provided:
6 1. The tax voted to be collected in installments in relation thereto,
7 or the proposition for the approval of a bond resolution or capital note
8 resolution in relation thereto, shall have been voted or approved, as
9 the case may be, by at least a sixty per centum vote of the qualified
10 voters voting thereon in person at the meeting or election called for
11 such purpose;
12 2. The proposition to authorize the tax to be collected in install-
13 ments in relation thereto, or the proposition for the approval of a bond
14 resolution or capital note resolution in relation thereto, contained a
15 statement to the effect that the obligations to be issued may be issued
16 in excess of the constitutional debt limitation of the school district;
17 and
18 3. The board of regents and the state comptroller severally shall
19 consent thereto.
20 d.] A school district, [other than a school district in a city, having
21 an aggregate assessed valuation of taxable real property of one hundred
22 thousand dollars or over,] except for the payment of judgments, or
23 compromised or settled claims against the school district, or awards or
24 sums payable by the school district pursuant to a determination by a
25 court, or an officer, body or agency acting in an administrative or
26 quasi-judicial capacity, shall not issue bonds or bond anticipation
27 notes, if the indebtedness of the school district determined pursuant to
28 section 137.00 of this [chapter] article will exceed ten per centum of
29 the full valuation of the real property subject to taxation by the
30 school district, unless:
31 1. The tax voted to be collected in installments in relation thereto,
32 or the proposition for the approval of a bond resolution in relation
33 thereto, shall have been voted or approved, as the case may be, before
34 July first, nineteen hundred sixty-three, by at least a two thirds vote,
35 or on and after July first, nineteen hundred sixty-three, by at least a
36 sixty per centum vote, of the qualified voters voting thereon in person
37 at the meeting or election called for such purpose;
38 2. The board of regents shall consent thereto; and
39 3. In a school district located wholly or partly in the Adirondack
40 park which has within its boundaries state lands subject to taxation,
41 the full valuation of which is more than thirty per centum of the full
42 valuation of the real property subject to taxation by the school
43 district, the state comptroller, on behalf of the state, also shall
44 consent thereto.
45 § 2. This act shall take effect on the same date as a concurrent
46 resolution of the senate and assembly proposing an amendment to section
47 4 of article 8 of the constitution, in relation to limitations on local
48 indebtedness, as proposed in legislative bills numbers S. 5025 and A.
49 1771-A, takes effect.
