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S6649Senate2017-2018 Session

School Late Penalty Installment Plan

Official title

“Provides that the Newburgh city school district shall pay a penalty for a late filing of a report over 10 years beginning in June 2018”

Sponsor William J. Larkin Jr.SD-39Affects Education
Status
In Senate Committee
Education
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Education

What's happening

This bill extends the repayment period for the Newburgh city school district's penalty from five to ten years, starting June 2018.

Why it matters

  1. Eases Financial Pressure on Schools. By doubling the repayment timeline, the Newburgh city school district has more time to pay back its penalty, potentially reducing annual budget stress and helping the district avoid cuts to programs or services for students.

  2. Retroactive Adjustment. The change applies retroactively, starting from June 2018, which could allow the district to adjust its financial planning and potentially recover from earlier fiscal strains more effectively.

  3. Sets Precedent for Future Relief. Allowing an extended penalty repayment period in this case could set an example for how New York State handles similar penalties for other districts in the future, signaling possible flexibility for schools facing large, one-time financial penalties.

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Who cares

Headline styles

School Late Penalty Installment Plan

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
William J. Larkin Jr.

Senator · Senate District 39

No co-sponsors yet.

History

  1. Referred to education
  2. Returned to senate
  3. Died in assembly
  4. Referred to education
  5. Delivered to assembly
  6. Passed senateVote 60–0
  7. Ordered to third reading cal.1832
  8. Referred to rules

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6649

2017-2018 Regular Sessions

IN SENATE

June 9, 2017

Introduced by Sen. LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend chapter 54 of the laws of 2016, directing the commissioner of education on how to recover certain penalties, in relation to the collection of a penalty from the Newburgh city school district

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 49 of part A of chapter 54 of the laws of 2016, directing the commissioner of education on how to recover certain penalties, is amended to read as follows:

§ 49. Notwithstanding any provision of law to the contrary, for the Newburgh city school district having a penalty arising from the late filing of a final cost report pursuant to section 31 of part A of chapter 57 of the laws of 2012 in the amount of not more than $12,747,495, the commissioner of education shall recover such penalty in [five] ten equal annual installments beginning [the later of] June [of 2017 or June of the school year in which such district is notified of the penalty] 2018. Provided further that such district may elect to make an initial payment no later than thirty days in advance of the first annual installment which shall reduce the amount of each annual installment.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD13135-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend chapter 54 of the laws of 2016, directing the commissioner of education on how to recover certain penalties, in relation to the collection of a penalty from the Newburgh city school district

Purpose

To direct the commissioner of education to recover certain late final cost report penalties from the Newburgh city school district over a 10-year recovery period beginning June 2018.

Summary of provisions

Section 1: Amends section 49 of part A of chapter 54 of the laws of 2016, directing the commissioner of education on to recover certain late final cost report penalties from the Newburgh city school district in 10 equal annual installments beginning June 2018.

Section 2: Effective Date.

Existing law

Under current law, the commissioner of education is directed to recover certain late final cost report penalties over a 5-year period beginning June 2017.

Justification

The 2017-18 state budget included provisions that provide certain school districts facing penalties arising from untimely final cost report filing with an optional 10-year stretch out period to pay the penalty. While the Newburgh Enlarged City School District's $12.7 million final cost report penalty more than meets the law's intended purpose, the district was inadvertently left out under the adopted budget language. This legislation would afford Newburgh similar treatment and allow the school district to repay this penalty over a ten year period beginning in June 2018.

Legislative history

New bill.

Fiscal implications

None.

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.