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History
- Signed chap.498
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.381
- Substituted for A10561
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1594
- Committee discharged and committed to rules
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes the Sag Harbor Union Free School District, Suffolk County, New York, to expend the proceeds of certain bonds issued by the district for an object or purpose that differs from the original object
Assembly Floor Calendar · Sponsor Fred Thiele
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to authorize the Sag Harbor Union Free School District, Suffolk County, New York, to expend the proceeds of certain bonds issued by the district for an object or purpose that differs from the original object or purpose for which said bonds were issued
Purpose
To authorize the District to submit one or more propositions to the voters for approval to spend the proceeds of the bonds, which were heretofore authorized and issued to fund a certain synthetic turf field project, for other objects or purposes described in the New York State Local Finance Law in lieu of using such proceeds to pay debt service on such bonds as required by the Local Finance Law.
Summary of provisions
To authorize the District, subject to voter approval, to expend not to exceed $1,620,000 of bonds issued on February 25, 2016, to fund any other object or purpose set forth in section 11.00 (a) of the New York State Local Finance Law which has a period of probable usefulness of not to exceed thirty (30) years.
Read the full memo (614 words)
Justification
At a Special District Meeting duly called and held on November 13, 2013, in the District, the qualified voters present and voting approved a proposition authorizing the Board of Education to install a new synthetic turf field at the Pierson High School at a cost of $1,620,000. In January 2016, the District received the required approvals from the New York State Department of Education and thereafter proceeded to publicly bid the project and issue bonds to fund the cost of the project. Due to unanticipated cost increases after voter approval of the proposition, the construction bids received exceeded the voter approved cost of the project. Accordingly, the bids were rejected. Since such time, the Board of Education of the District has explored how it can best utilize the funds borrowed for the synthetic turf field to meet recreational and other needs of its students.
Pursuant to New York State Local Finance Law, the unexpended bond proceeds must be used to pay debt service on the bonds issued to fund the synthetic turf field project until the final maturity date of such bonds or to redeem the then remaining outstanding bonds on February 15, 2024, the earliest optional redemption date for the bonds. The use of the bond proceeds in this way would still require the District to explore alternatives to fund a project that meets the recreational and other needs of its students, all at an additional cost to the taxpayers. As a result, this option for the use of the bond proceeds is not financially beneficial for the taxpayers of the District.
In addition, the interest on the bonds issued to finance the synthetic turf field project is tax-exempt to the holders such bonds. Federal tax laws applicable to tax-exempt bonds mandate the expenditure of such bond proceeds within a prescribed period from the date of issuance of such bonds. As a result, the ability of the District to spend such bond proceeds to fund an alternative capital purpose within the prescribed period is a desirable result for federal tax law purposes.
Under current law there is no legal authority for a school district to seek voter approval to transfer the proceeds of bonds issued for one object or purpose to another object or purpose. This legislation is needed to authorize the District to obtain voter approval to spend the proceeds of the bonds issued to fund the synthetic turf field project for another purpose.
Legislative history
2016: New Legislation
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.