Relates to certain bonds issued to finance school rehabilitation or reconstruction costs for Rochester schools, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8218
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 22, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education law and chapter 416 of the  laws  of  2007
   establishing  the  city of Rochester and the board of education of the
   city school district  of  the  city  of  Rochester  school  facilities
   modernization  program  act,  in  relation  to certain bonds issued to
   finance school rehabilitation or reconstruction  costs  for  Rochester
   schools
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Item (iv) of clause (a) of subparagraph 5 of paragraph e of
 subdivision 6 of section 3602 of the education law, as amended by  chap-
 ter 533 of the laws of 2014, is amended to read as follows:
   (iv)  Notwithstanding the provisions of item (i) of this clause, where
 such city or city school district has entered into an agreement with the
 county of Monroe industrial development agency or the dormitory authori-
 ty of the state of New York, for projects  authorized  pursuant  to  the
 city of Rochester and the board of education of the city school district
 of the city of Rochester school facilities modernization program act, to
 finance  [debt  related to] school rehabilitation or reconstruction that
 is subject to subparagraph three of this paragraph, the lesser  of:  (A)
 the  net interest cost, as defined by the commissioner, [that would have
 been] applicable to EACH SERIES OF  bonds  or  bond  anticipation  notes
 issued  by  the  county  of Monroe industrial development agency [if the
 project had been authorized to be financed and had been financed through
 such entity, as certified to the commissioner by the executive  director
 of  the county of Monroe industrial development agency] OR THE DORMITORY
 AUTHORITY OF THE STATE OF NEW YORK FOR SUCH PURPOSE, WITHOUT  REGARD  TO
 ANY  REFUNDING  OF  SUCH  OBLIGATIONS; or (B) such net interest cost, as
 defined by the commissioner, that would have been applicable  to  [bonds
 or  bond  anticipation  notes  issued by the state of New York dormitory
 authority if the project had been authorized to be financed and had been
 financed through such entity, as certified to the  commissioner  by  the
 executive director of the state of New York dormitory authority shall be

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13189-01-5
 S. 8218                             2

 the  interest  rate  established  for such city applicable to such debt]
 EACH SERIES OF OBLIGATIONS ORIGINALLY ISSUED TO FINANCE  EACH  PHASE  OF
 PROJECT  COSTS  APPROVED  BY  THE COMMISSIONER, BY THE MONROE INDUSTRIAL
 DEVELOPMENT  AGENCY OR THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK,
 WITHOUT REGARD TO ANY REFUNDING OF SUCH OBLIGATIONS, IF THE PROJECT  HAD
 BEEN  FINANCED  THROUGH  SUCH  AGENCY  OR THE DORMITORY AUTHORITY OF THE
 STATE OF NEW YORK, AS CERTIFIED TO THE  COMMISSIONER  BY  THE  EXECUTIVE
 DIRECTOR  OF  THE  MONROE INDUSTRIAL DEVELOPMENT AGENCY OR THE EXECUTIVE
 DIRECTOR OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK,  SHALL  BE
 THE  INTEREST  RATE ESTABLISHED FOR SUCH CITY APPLICABLE FOR PURPOSES OF
 CALCULATING THE ASSUMED AMORTIZATION FOR  SUCH  APPROVED  PROJECT  COSTS
 PURSUANT  TO  CLAUSE  (B)  OF  SUBPARAGRAPH THREE OF THIS PARAGRAPH. FOR
 PROJECTS APPROVED BY THE COMMISSIONER IN ANY SCHOOL YEAR IN WHICH  CAPI-
 TAL  DEBT  IS INCURRED BY EITHER THE DORMITORY AUTHORITY OF THE STATE OF
 NEW YORK OR THE MONROE INDUSTRIAL  DEVELOPMENT  AGENCY  TO  REFUND  DEBT
 RELATED  TO SCHOOL RENOVATION, REHABILITATION OR RECONSTRUCTION OF OR ON
 BEHALF OF THE SCHOOL DISTRICT, WHERE SUCH SCHOOL  RENOVATION,  REHABILI-
 TATION OR RECONSTRUCTION QUALIFIES FOR APPORTIONMENT PURSUANT TO SUBPAR-
 AGRAPH  THREE  OF  THIS  PARAGRAPH, BY THE FIRST DAY OF SEPTEMBER OF THE
 CURRENT YEAR, THE CHIEF FISCAL OFFICER OF SUCH CITY SHALL PROVIDE TO THE
 COMMISSIONER AN ANALYSIS, AS PRESCRIBED  BY  THE  COMMISSIONER,  OF  THE
 ACTUAL  AVERAGE  INTEREST  RATE  APPLIED TO ALL CAPITAL DEBT INCURRED TO
 FINANCE OR REFUND DEBT RELATED TO SCHOOL RENOVATION,  REHABILITATION  OR
 RECONSTRUCTION THAT QUALIFIES FOR APPORTIONMENT PURSUANT TO SUBPARAGRAPH
 THREE  OF  THIS PARAGRAPH BY EITHER THE DORMITORY AUTHORITY OF THE STATE
 OF NEW YORK OR THE CITY OF MONROE INDUSTRIAL DEVELOPMENT  AGENCY  DURING
 THE  BASE YEAR AND OF THE ESTIMATED AVERAGE INTEREST RATE APPLIED TO ALL
 CAPITAL DEBT INCURRED TO FINANCE OR REFUND DEBT RELATED TO SCHOOL  RENO-
 VATION, REHABILITATION OR RECONSTRUCTION THAT IS SUBJECT TO SUBPARAGRAPH
 THREE  OF  THIS PARAGRAPH BY EITHER THE DORMITORY AUTHORITY OF THE STATE
 OF NEW YORK OR THE  MONROE  INDUSTRIAL  DEVELOPMENT  AGENCY  DURING  THE
 CURRENT  YEAR.  SUCH  INTEREST  RATES SHALL BE EXPRESSED AS A DECIMAL TO
 FIVE PLACES ROUNDED TO THE NEAREST  EIGHTH  OF  ONE-ONE  HUNDREDTH.  THE
 INTEREST  RATE  ESTABLISHED  FOR  SUCH CITY APPLICABLE TO PROJECTS FIRST
 APPROVED IN SUCH YEAR SHALL BE TENTATIVELY ESTABLISHED AS  THE  INTEREST
 RATE  COMPUTED PURSUANT TO THIS CLAUSE FOR THE CURRENT YEAR, EXCEPT THAT
 ALL APPORTIONMENTS OF AID PAYABLE DURING THE CURRENT YEAR BASED ON  SUCH
 ESTIMATED  AVERAGE  INTEREST RATE SHALL BE RECALCULATED IN THE FOLLOWING
 YEAR AND ADJUSTED AS APPROPRIATE BASED ON THE APPROPRIATE ACTUAL AVERAGE
 INTEREST RATE THEN ESTABLISHED PURSUANT TO THIS CLAUSE AND SHALL BE  THE
 INTEREST  RATE  ESTABLISHED  FOR  SUCH  CITY  APPLICABLE FOR PURPOSES OF
 CALCULATING THE ASSUMED AMORTIZATION FOR PROJECT COSTS  APPROVED  DURING
 THE  CURRENT  YEAR  PURSUANT TO CLAUSE (B) OF SUBPARAGRAPH THREE OF THIS
 PARAGRAPH.
   § 2. Section 16 of chapter 416 of the laws of  2007  establishing  the
 city of Rochester and the board of education of the city school district
 of the city of Rochester school facilities modernization program act, is
 amended by adding a new subdivision (c) to read as follows:
   (C)  IN  THE  EVENT  THAT  REFUNDING  BONDS ARE ISSUED TO REFUND BONDS
 ISSUED TO FINANCE A PROJECT FUNDED PURSUANT TO THIS SECTION, THE REFUND-
 ING SAVINGS AMOUNT SHALL BE USED ONLY FOR FUNDING OF PROJECTS  THAT  ARE
 ELIGIBLE  FOR AN APPORTIONMENT PURSUANT TO SUBDIVISION 6 OF SECTION 3602
 OF THE EDUCATION LAW.
   § 3. This act shall take effect immediately.