Legislative Bill Drafting Commission
                  12332-02-0

     S.        --------
                SENATE
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     IN SENATE--Introduced by Sen

     --read twice and ordered printed,
     and when printed to be committed
     to the Committee on

               -------- A.
               ASSEMBLY
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     IN ASSEMBLY--Introduced by M. of A.

     --read  once  and  referred  to  the
     Committee on

     *EDUCLA*
     (Enacts article 7  provisions imple-
     menting  the  2000-2001   Education,
     Labor and Family Assistance budget)

                   --------

     Ed L. ELFA Article 7

     A  BUDGET BILL submitted by the Gov-
     ernor in accordance with Article VII
     of the Constitution

                    AN ACT

     to  amend  the  education  law,   in
     relation   to  the  calculation  and
     payment  of  state  aid  to   school
     districts  and boards of cooperative
     educational services, in relation to
     the actions of the board of regents,
     in relation to increased flexibility
     of state university and city univer-
     sity in  administrative  and  fiscal
     functions  respecting the establish-
     ment of tuition rates  for  graduate
     programs, in relation to the closure

                                         2                         12332-02-0

     of  school buildings, in relation to
     membership in a board of cooperative
     educational services, in relation to
     set-asides for higher learning stan-
     dards;  to  amend chapter 405 of the
     laws  of  1999,  amending  the  real
     property  tax  laws  and  other laws
     relating to  enacting  major  compo-
     nents  necessary  to  implement  the
     1999-2000  state  fiscal  plan,   in
     relation    to    making   technical
     corrections thereto; to amend  chap-
     ter  221 of the laws of 1998, relat-
     ing to adjusting certain  state  aid
     payments to the Syracuse city school
     district,   the  Utica  city  school
     district   and   the    Gloversville
     enlarged    city   school   district
     regarding   employment   preparation
     aid, in relation to making technical
     corrections  thereto; to amend chap-
     ter 82 of the laws of 1995  amending
     the  education law and certain other
     laws relating to state aid to school
     districts and the  appropriation  of
     funds for the support of government,
     in  relation  to  special  education
     class size; to amend chapter 169  of
     the   laws   of  1994,  relating  to
     certain provisions  related  to  the
     1994-95  state  operations,  aid  to
     localities,  capital  projects   and
     debt  services  budgets, in relation
     to  certain  expiration  and  repeal
     dates   contained  therein;  and  to
     amend the vehicle and  traffic  law,
     in   relation   to  certain  signage
     required on school buses;  repealing
     certain  provisions  of  the tax law
     relating  to  the  calculations  and
     payment   of  state  aid  to  school
     districts and boards of  cooperative
     educational  services; providing for
     the  repeal  of  certain  provisions
     upon   expiration  thereof  (A);  to
     amend the education law,  the  state
     finance  law,  the real property tax
     law, and the tax law, in relation to
     school  district  spending  and  the
     school  tax  relief  (STAR)  program
     (B); to repeal certain provisions of
     the  education  law,   relating   to
     established   documentary   heritage
     grants and aid; relating  to  estab-
     lishing  the state library and state

                                         3                         12332-02-0

     museum within the education  depart-
     ment  and providing for the adminis-
     tration of the state museum;  relat-
     ing   to   establishing  grants  for
     public television and radio;  relat-
     ing  to  establishing the powers and
     duties of the state library;  relat-
     ing  to  establishing  state aid for
     library systems and  libraries;  and
     relating  to  establishing state aid
     for school library systems and state
     aid for cooperation with correction-
     al facilities; and to amend the arts
     and cultural affairs law, the  state
     finance  law,  the executive law and
     the not-for-profit corporation  law,
     in   relation  to  establishing  the
     office  of  cultural  resources  and
     providing  for  the orderly transfer
     of all  functions,  powers,  duties,
     obligations and assets of the office
     of cultural education located in the
     state  education  department  to the
     office of cultural resources (C)

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

                                         4                         12332-02-0

  1    Section  1.  This  act enacts into law major components of legislation

  2  which are necessary to implement the state fiscal plan for the 2000-2001

  3  state fiscal year. Each component is  wholly  contained  within  a  Part

  4  identified  as Parts A through C. The effective date for each particular

  5  provision contained within such Part is set forth in the last section of

  6  such Part. Any provision in any section contained within a Part, includ-

  7  ing the effective date of the Part, which makes reference to  a  section

  8  "of  this  act", when used in connection with that particular component,

  9  shall be deemed to mean and refer to the corresponding  section  of  the

 10  Part  in  which  it  is  found. Section three of this act sets forth the

 11  general effective date of this act.

 12                                   PART A

 13    Section 1. The opening paragraph of section 207 of the  education  law

 14  is  designated subdivision 1 and a new subdivision 2 is added to read as

 15  follows:

 16    2.  Notwithstanding subdivision one of this section or any  other  law

 17  to  the  contrary,  in the event no specific statutory authorization has

 18  been provided for a proposed rule or regulation of the  commissioner  or

 19  the  regents  that  has a projected additional cost to the state govern-

 20  ment, local governments or the university of the state of New York, such

 21  proposed rule or regulation shall be submitted for review  and  approval

 22  by  the  state  director of regulatory reform before the commissioner or

 23  the regents may submit the rule or regulation  for  publication  in  the

 24  state register. Such cost implications shall be presented in a regulato-

 25  ry  impact  statement  or  revised  regulatory impact statement prepared

 26  pursuant to section two hundred two-a of the state administrative proce-

 27  dure act, and submitted by the department to the state director of regu-

                                         5                         12332-02-0

  1  latory reform along with the text of the proposed or revised rule.    In

  2  the  event  any rule or regulation adopted by the regents or the commis-

  3  sioner which is determined not to require review  and  approval  by  the

  4  state  director  of regulatory reform, pursuant to the conditions stated

  5  in this section, is subsequently identified by  the  state  director  of

  6  regulatory  reform  as imposing such additional cost, such rule or regu-

  7  lation shall cease to be mandatory in effect and shall become  voluntary

  8  in operation.

  9    §  2.  Section  305  of  the  education law is amended by adding a new

 10  subdivision 29 to read as follows:

 11    29. The commissioner  shall  promulgate  regulations  prescribing  the

 12  methodology for establishing a multi-year cost allowance for the purpose

 13  of  computation  of building aid to school districts and a procedure for

 14  school districts to appeal the determination that  a  building  has  not

 15  been  adequately  maintained, as required by subparagraphs one and three

 16  of paragraph a of subdivision six of section thirty-six hundred  two  of

 17  this chapter. Such methodology shall include the development of a build-

 18  ing  replacement  cost  allowance  schedule  for the construction of new

 19  buildings and additions, and  the  replacement  of  the  major  building

 20  systems  of  a building over its projected useful life.  For purposes of

 21  this subdivision, "major building systems" shall  mean  the  electrical,

 22  plumbing,  heating,  ventilation  and  air conditioning systems, and the

 23  roof and other major structural elements of a school building.

 24    § 3. Subdivision 3 of section 316 of the education law,  as  added  by

 25  chapter 53 of the laws of 1984, is amended to read as follows:

 26    3.  Each  such application shall be reviewed by the Õteacher education

 27  certification and practices  boardå  state  professional  standards  and

 28  practices  board  for teaching.  The board shall in each instance recom-

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  1  mend to the commissioner  action,  as  appropriate,  including  specific

  2  reasons  when  it is negative. Any school district, board of cooperative

  3  educational  services  or  consortium  whose  original  application   is

  4  rejected may resubmit a revised application for further review. Notwith-

  5  standing any other provision to the contrary, an application to continue

  6  a  teacher  resource center which was in operation prior to the nineteen

  7  hundred eighty-four--nineteen hundred eighty-five school year  shall  be

  8  deemed automatically approved.

  9    §  4. Subparagraph 4 of paragraph h of subdivision 2 of section 355 of

 10  the education law, as amended by chapter 309 of the  laws  of  1996,  is

 11  amended to read as follows:

 12    (4)  The trustees shall not impose a differential tuition charge based

 13  upon need or income. All students  enrolled  in  undergraduate  programs

 14  leading  to  like  degrees  at  state-operated institutions of the state

 15  university shall be charged a uniform rate of tuition except for differ-

 16  ential tuition rates based on state residency. Provided,  however,  that

 17  the  trustees may authorize the presidents of the colleges of technology

 18  and the colleges of agriculture and technology to set differing rates of

 19  tuition for each of the colleges for students enrolled in  degree-grant-

 20  ing  programs  leading  to  an  associate degree and non-degree granting

 21  programs so long as such tuition rate does not exceed the  tuition  rate

 22  charged  to students who are enrolled in like degree programs or degree-

 23  granting undergraduate programs leading to  a  baccalaureate  degree  at

 24  other  state-operated  institutions of the state university of New York.

 25  The trustees shall not adopt changes affecting tuition charges prior  to

 26  the enactment of the annual budget.

 27    §  5.  Subdivisions  1  and  3 of section 408 of the education law, as

 28  amended by chapter 414 of the laws of 1972 and the opening paragraph  of

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  1  subdivision 1 as amended by chapter 315 of the laws of 1990, are amended

  2  to read as follows:

  3    1.  No  schoolhouse  shall  hereafter be erected, purchased, repaired,

  4  enlarged or remodeled nor shall  the  advertisement  for  bids  for  the

  5  execution  of  the  plans  and  specifications  for such schoolhouses be

  6  placed, in any school district except in a city  school  district  in  a

  7  city  having  Õseventy  thousandå  a  million inhabitants or more, at an

  8  expense which shall exceed Õone hundredå ten thousand dollars, until the

  9  plans and specifications shall have been submitted to  the  commissioner

 10  Õof  educationå  and his approval endorsed thereon. Such plans and spec-

 11  ifications shall show in detail the ventilation, heating and lighting of

 12  such buildings.

 13    In the case of a school district in a  city  having  seventy  thousand

 14  inhabitants  or  more,  all  the provisions previously set forth in this

 15  subdivision shall apply, except that  the  commissioner  may  waive  the

 16  requirement  for  submission  of plans and specifications and substitute

 17  therefor the requirement for submission of an outline of such plans  and

 18  specifications  for his review. Such outline shall be in a form which he

 19  may prescribe from time to time.

 20    In either case, the commissioner may, in his discretion, review  plans

 21  and  specifications  for  projects  estimated at an expense of less than

 22  Õone hundredå ten thousand dollars.

 23    In the case of a school district in a city having a  million  inhabit-

 24  ants  or more, all of the provisions previously set forth in this subdi-

 25  vision shall apply, except that  such  school  district  shall  only  be

 26  required  to submit Õan outline of theå preliminary plans and specifica-

 27  tions for new buildings and additions to the commissioner Õof educationå

 28  for his Õinformation where a schoolhouse is to be erected in conjunction

                                         8                         12332-02-0

  1  with the development of a project to be developed under  the  provisions

  2  of article two or five of the private housing finance law and where both

  3  the  school  and the project are to have rights or interests in the same

  4  land,  regardless  of  the similarity or equality thereof, including fee

  5  interests, easements, space rights or other rights or interestså review.

  6    3. The commissioner Õof educationå shall approve the plans  and  spec-

  7  ifications,  heretofore or hereafter submitted pursuant to this section,

  8  for the erection or purchase of any school building or addition  thereto

  9  or remodeling thereof on the site or sites selected therefor pursuant to

 10  this  chapter,  if such plans conform to the requirements and provisions

 11  of this chapter and the regulations of the commissioner adopted pursuant

 12  to this chapter in all  other  respects;  provided,  however,  that  the

 13  commissioner Õof educationå shall not approve the plans for the erection

 14  or  purchase  of any school building or addition thereto unless the site

 15  has  been  selected  with  reasonable  consideration  of  the  following

 16  factors;  its  place  in  a  comprehensive,  Õlong-term  school building

 17  programå five-year school  facility  capital  plan;  area  required  for

 18  outdoor  educational  activities; educational adaptability, environment,

 19  accessibility; soil conditions; initial and ultimate cost.

 20    § 6. Section 412 of the education law, subdivision  1  as  amended  by

 21  chapter 474 of the laws of 1996, is amended to read as follows:

 22    §  412.  Condemnation  or  closure  of Õschoolhouse andå instructional

 23  school building; erection of new Õschoolhouseå school building in  place

 24  thereof.    1.  ÕAå  Notwithstanding  any  other provision of law to the

 25  contrary, the commissioner shall be authorized to order the closing of a

 26  school building of any school district or board  of  cooperative  educa-

 27  tional  services  which  is  used for instruction, upon a finding that a

 28  hazardous condition exists in  such  school  building  in  violation  of

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  1  applicable building health or safety codes or regulations that threatens

  2  the  health  and/or  safety  of students or staff.   Such order shall be

  3  delivered to a trustee or member of the board of education of the school

  4  district  or  member  of  the board of cooperative educational services,

  5  provided that in the case of a city school district in a city  having  a

  6  population of one million or more inhabitants such order shall be deliv-

  7  ered  to the chancellor of the city district. Such order shall state the

  8  date on which it shall take effect and the school building shall  close,

  9  and  shall  specify the repairs, reconstruction or rehabilitation neces-

 10  sary to render the building fit for occupancy. Upon the  effective  date

 11  of  such  order, it shall be the duty of the local school authorities to

 12  arrange for the education of the students formerly attending such school

 13  at other locations.  Notwithstanding any other provision of law  to  the

 14  contrary,  the  attendance  of  a  student  attending school in a school

 15  building that has been ordered closed by the  commissioner  pursuant  to

 16  this subdivision shall not be counted, during the period the building is

 17  closed,  for purposes of computing the apportionment of state aid to the

 18  school district or for  purposes  of  determining  compliance  with  the

 19  compulsory  attendance law. If the commissioner finds upon further exam-

 20  ination that the district has eliminated the hazardous condition so that

 21  a threat to the health or safety of students or staff no  longer  exists

 22  in  the  building  or  a  part thereof, the commissioner shall forthwith

 23  revoke the closure order in whole or in part.

 24    2. In the alternative, the commissioner,  or  a  district  superinten-

 25  dentÕ,å  upon  the  direction  of  the  commissioner,  may make an order

 26  condemning a school Õhouseå building which is used for  instruction,  if

 27  he or she finds upon examination that such Õschoolhouseå school building

 28  is wholly unfit for use and not worth repairing. He or she shall deliver

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  1  such  order  to  a  trustee  or  member of the board of education of the

  2  district or the board of cooperative educational services, provided that

  3  in the case of a city school district in a city having a  population  of

  4  one  million  or  more  inhabitants such order shall be delivered to the

  5  chancellor of the city district, and transmit  a  copy  thereof  to  the

  6  commissioner or to the district superintendent as appropriate. He or she

  7  shall  also  state  in such order the date on which it shall take effect

  8  and the sum which in his or her opinion will be  necessary  to  erect  a

  9  school building available to the needs of the district.

 10    Õ2.  Immediatelyå  3. a. In the case of a common, union free, central,

 11  central high school or city school district in a  city  having  a  popu-

 12  lation  of  less than one hundred twenty-five thousand inhabitants, upon

 13  the receipt of Õsaidå a condemnation order issued pursuant  to  subdivi-

 14  sion  two  of  this  section, the trustees or board of education of such

 15  district shall call a special meeting of the voters of said district, to

 16  consider the question of  building  a  new  Õschoolhouseå  instructional

 17  school building therein.  Such meeting shall have power to determine the

 18  size  of  said Õschoolhouseå instructional school building, the material

 19  to be used in its erection, and to vote a tax to  build  the  same.  But

 20  such  meeting  shall  have  no  power to reduce the estimate made by the

 21  district superintendent or the commissioner aforesaid by more than twen-

 22  ty-five per centum of such estimate.

 23    Õ3. And whereå  b.  Where  no  tax  for  building  such  Õschoolhouseå

 24  instructional  school building shall have been voted by such district in

 25  accordance with paragraph a of this subdivision within thirty days  from

 26  the time of holding the first meeting to consider the question, it shall

 27  be  the  duty  of the trustees or board of education of such district to

 28  contract for the building of a Õschoolhouseå instructional school build-

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  1  ing capable of accommodating the children of the district, and to levy a

  2  tax to pay for the same, which tax shall not exceed the sum estimated as

  3  necessary by the district superintendent or the commissioner  aforesaid,

  4  and  which  shall not be less than such estimated sum by more than twen-

  5  ty-five per centum thereof. But such estimated sum may be  increased  at

  6  any subsequent school meeting legally held in the district.

  7    c. In the case of a city school district in a city having a population

  8  of  one  hundred twenty-five thousand inhabitants or more, upon issuance

  9  of an order of the commissioner condemning a school building pursuant to

 10  this section, it shall be the duty of the board of education, the super-

 11  intendent of schools or the chancellor of the city district in the  case

 12  of the city school district of the City of New York and the common coun-

 13  cil,  mayor, city manager or other governing body or officer of the city

 14  government, to make immediate arrangements for a suitable school facili-

 15  ty or facilities to accommodate the children of the school  building  so

 16  condemned  and  to  arrange  for  the  appropriation  of  funds,  or the

 17  re-prioritizing of the district's long-range facilities plan to make use

 18  of existing appropriations, that  is  necessary  to  arrange  for  other

 19  facilities to replace the condemned building.

 20    §  7. Clause (ii) of subparagraph 7 of paragraph b of subdivision 4 of

 21  section 1950 of the education law, as amended by chapter 474 of the laws

 22  of 1996 is amended and a new clause (iii) is added to read as follows:

 23    (ii) If the board  of  cooperative  educational  services  chooses  to

 24  apportion administrative costs and capital expenses according to full or

 25  true valuation, special act school districts authorized to receive state

 26  aid  in  accordance  with  chapter five hundred sixty-six of the laws of

 27  nineteen hundred sixty-seven, as amended, shall have  their  full  value

 28  for  purposes  of  this  section  computed  by  multiplying the resident

                                        12                         12332-02-0

  1  weighted average daily attendance by the state  average  full  valuation

  2  per  pupil  as established by the commissioner for the year in which the

  3  budget is adopted. The  school  authorities  of  each  component  school

  4  district shall add such amount to the budget of such component districts

  5  and  shall  pay such amount to the treasurer of the board of cooperative

  6  educational services and shall be paid out by  the  treasurer  upon  the

  7  orders  of  the  board  of  cooperative  educational services issued and

  8  executed in pursuance of a resolution of said board.

  9    (iii) In the event a component school district withdraws from a  board

 10  of  cooperative  educational  services  supervisory district pursuant to

 11  subdivision five-b of this section, such school district shall  continue

 12  to  be  responsible for its share of the capital expenses incurred while

 13  it was a component of the board  of  cooperative  educational  services,

 14  including  but not limited to payments to the dormitory authority pursu-

 15  ant to an agreement executed by such school district pursuant  to  para-

 16  graph  a of subdivision thirteen of this section, payments for a capital

 17  project pursuant to an agreement executed by such school district pursu-

 18  ant to paragraph a of subdivision fourteen of this section,  and  rental

 19  payments  for  leases  entered into or renewed while such district was a

 20  component district. Such capital expenses shall be apportioned  to  such

 21  district  in  the  manner  prescribed  in this subparagraph as if it had

 22  continued to  be  a  component  district,  provided  however  that  such

 23  district shall not be liable for capital expenses incurred for a capital

 24  project for which such district did not execute an agreement pursuant to

 25  subdivision  thirteen or fourteen of this section or for rental payments

 26  on leases executed or renewed after it notified the board of cooperative

 27  educational services of its withdrawal, unless such district subsequent-

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  1  ly rejoins the board of cooperative educational services as a  component

  2  district. 

  3    §  8. Subdivision 5 of section 1950 of the education law is amended by

  4  adding a new paragraph h to read as follows:

  5    h. Notwithstanding any other provision of law to the contrary, for aid

  6  payable in the school year two thousand one--two thousand two and there-

  7  after, the sum of  the  amount  determined  for  each  component  school

  8  district  pursuant  to  this subdivision in the current year and the aid

  9  payable to such district pursuant to subdivision thirty-nine of  section

 10  thirty-six  hundred  two  of  this chapter in the current year shall not

 11  exceed the sum of the amounts payable pursuant to such  subdivisions  in

 12  the  base  year, by a percentage greater than the percentage increase in

 13  the sum for all districts for aids for limiting in  the  base  year,  as

 14  determined  from  the school aid computer listing for the base year. For

 15  the purpose of this  paragraph,  "aids  for  limiting"  shall  mean  the

 16  current  year aids for limiting as defined in paragraph a of subdivision

 17  eighteen of section thirty-six hundred two of this chapter, and  "school

 18  aid  listing for the base year" shall mean the school aid computer list-

 19  ing used to determine "moneys apportioned" pursuant to  section  thirty-

 20  six  hundred  nine-a  of  this  chapter  in  the school year immediately

 21  preceding the current school year.

 22    § 9. Section 1950 of the education law is  amended  by  adding  a  new

 23  subdivision 5-b to read as follows:

 24    5-b.  a.  Notwithstanding  any other provision of law to the contrary,

 25  except as otherwise provided in paragraph b  of  this  subdivision,  the

 26  trustees or board of education of a school district which is currently a

 27  component school district of a board of cooperative educational services

 28  may,  by a majority vote, withdraw from such board of cooperative educa-

                                        14                         12332-02-0

  1  tional services supervisory district as of  July  first  of  any  school

  2  year, provided that such trustees or board notifies the board of cooper-

  3  ative educational services in writing on or before the preceding January

  4  first of the district's intent to withdraw from the supervisory district

  5  at the start of the next school year.

  6    b.  Where the trustees or board of education of a school district have

  7  previously voted to withdraw from a  board  of  cooperative  educational

  8  services  supervisory  district pursuant to paragraph a of this subdivi-

  9  sion, such trustees or board may, by majority vote, decide to rejoin the

 10  board of cooperative educational services  supervisory  district.  Where

 11  such  a  district  votes to rejoin, the board of cooperative educational

 12  services shall determine the date upon which such district may rejoin as

 13  a component district and begin full participation in the program of  the

 14  board of cooperative educational services, provided that such date shall

 15  not  be  later  than one year from the date of receipt of the request to

 16  rejoin. Upon rejoining a board of educational services pursuant to  this

 17  paragraph,  the  trustees  or board of education of such school district

 18  may not vote to withdraw  from  the  board  of  cooperative  educational

 19  services supervisory district for a period of five years.

 20    c.  Notwithstanding  any  other provision of law to the contrary, once

 21  the trustees or board of education of a  school  district  notifies  the

 22  board  of cooperative educational services that it has voted to withdraw

 23  from the supervisory district, such trustees or board of education shall

 24  no longer be eligible to vote on matters brought  before  the  component

 25  districts  during  the  remainder  of the school year, including but not

 26  limited to the administrative budget or the election of members  of  the

 27  board  of  cooperative educational services, shall no longer be eligible

 28  to nominate candidates to such board and shall not be eligible to  enter

                                        15                         12332-02-0

  1  into  any  agreements relating to facilities of the board of cooperative

  2  educational services, and the qualified voters residing in such district

  3  shall no longer be eligible to vote on referenda relating to real  prop-

  4  erty  and  facilities  of  the board of cooperative educational services

  5  pursuant to subdivision two of section  nineteen  hundred  fifty-one  of

  6  this  article,  and residents of such school district shall no longer be

  7  eligible  for  nomination  to  the  board  of  cooperative   educational

  8  services.  Any  current  member  of the board of cooperative educational

  9  services who resides in the school district withdrawing from  the  board

 10  of  cooperative educational services shall vacate his or her position as

 11  of the effective date of such withdrawal.

 12    d. Upon withdrawal from the board of cooperative educational services,

 13  the school district shall not be responsible for any future  administra-

 14  tive  expenses  of the board of cooperative educational services, except

 15  that such district shall continue to be responsible for capital expenses

 16  incurred prior to its notification of the board  of  cooperative  educa-

 17  tional  services  of  its  intent  to withdraw to the extent provided in

 18  clause (iii) of subparagraph seven of paragraph b of subdivision four of

 19  this section.

 20    § 10. Subparagraph (i) of paragraph y of subdivision 1 of section 3602

 21  of the education law, as amended by section 51-f of Part  L  of  chapter

 22  405 of the laws of 1999, is amended to read as follows:

 23    (i)  "Public  excess cost aid base," for the purposes of this section,

 24  shall mean:

 25    (a) for aid payable in the nineteen hundred ninety-nine--two  thousand

 26  school  year,  the aid selected pursuant to paragraph six of subdivision

 27  nineteen of this section in the base year; and

                                        16                         12332-02-0

  1    (b) for aid payable in the two thousand--two thousand one school year,

  2  the product of the aid selected pursuant to subparagraph a of  paragraph

  3  six  of  subdivision  nineteen of this section in the base year and nine

  4  hundred ninety-one thousandthsÕ;

  5    (c)  for  aid payable in the two thousand one--two thousand two school

  6  year, the product of the aid selected pursuant to clause one of subpara-

  7  graph b of paragraph six of subdivision nineteen of this section in  the

  8  base year and nine thousand nine hundred thirteen ten-thousandthså.

  9    §  11.  Subparagraphs  1,  2  and 3 of paragraph a of subdivision 6 of

 10  section 3602 of the education law, subparagraphs 1 and 3 as  amended  by

 11  section  14 of part C of chapter 58 of the laws of 1998 and subparagraph

 12  2 as amended by section 36 of Part A of chapter 436 of the laws of 1997,

 13  are amended to read as follows:

 14    (1) For new construction and the purchase of existing structures,  the

 15  cost  allowances  shall be based upon the rated capacity of the building

 16  or addition and a basic per pupil allowance of up to six thousand  three

 17  hundred  seventy-five  dollars  adjusted  monthly  by  a statewide index

 18  reflecting changes in the cost of labor and materials since July  first,

 19  nineteen  hundred  ninety-two, established by the commissioner of labor,

 20  modified by an annual county or multi-county labor market composite wage

 21  rate, established by the commissioner of labor in consultation with  the

 22  commissioner,  for  July  first of the base year, commencing July first,

 23  nineteen hundred ninety-seven for general construction contracts awarded

 24  on or after July first, nineteen hundred ninety-eight,  indexed  to  the

 25  median  of  such  county  or  multi-county rates, but not less than one.

 26  Such base allowance shall apply to a building  or  an  addition  housing

 27  grades  prekindergarten through six and shall be adjusted for a building

 28  or an addition housing grades seven through nine by a factor of one  and

                                        17                         12332-02-0

  1  four-tenths,  for a building or an addition housing grades seven through

  2  twelve by a factor of one and five-tenths, for a  building  or  addition

  3  housing special education programs by a factor of two, except that where

  4  such  building  or  addition  is  connected to, or such space is located

  5  within, a  public  school  facility  housing  programs  for  nondisabled

  6  pupils,  as  approved  by  the  commissioner, a factor of three shall be

  7  used. Rated capacity of a building or an addition shall be determined by

  8  the commissioner based on space standards  and  other  requirements  for

  9  building  construction  specified  by  the commissioner.   Such assigned

 10  capacity ratings shall include, in addition to those spaces used for the

 11  instruction of pupils, those spaces which are used  for  elementary  and

 12  secondary  school  libraries,  cafeterias, prekindergarten instructional

 13  rooms, teachers' conference rooms, gymnasiums and auditoriums.  For  new

 14  construction  projects approved by the qualified voters on or after July

 15  first, two thousand, or approved by the board of education of the school

 16  district on or after such date where voter  approval  is  not  required,

 17  such  rated  capacity  for  new  buildings  and additions constructed to

 18  replace existing buildings that, in the judgment  of  the  commissioner,

 19  have not been adequately maintained and have not reached their projected

 20  useful  life  shall  be reduced by the commissioner by an amount propor-

 21  tional to the remaining unused portion of the useful life of the  exist-

 22  ing  buildings,  provided  however  that the commissioner may waive such

 23  requirement upon a finding that replacement of the existing building  is

 24  necessary  to  protect  the health and safety of students or staff, that

 25  reconstruction and modernization of  the  existing  building  would  not

 26  adequately address such health and safety problems, and that the need to

 27  replace  the  building  was not caused by failure to adequately maintain

 28  the building. If the commissioner of labor resets  the  statewide  index

                                        18                         12332-02-0

  1  reflecting changes in the costs of labor and materials since July first,

  2  nineteen hundred ninety-two, the commissioner shall adopt regulations to

  3  supersede  the  basic  per  pupil  allowance of up to six thousand three

  4  hundred  seventy-five dollars to the imputed allowance in effect at that

  5  time.

  6    (2) Where a school district has expenditures for site purchase,  grad-

  7  ing or improvement of the site, original furnishings, equipment, machin-

  8  ery  or  apparatus, or professional fees, or other incidental costs, the

  9  cost allowances for new construction and the purchase of existing struc-

 10  tures may be increased by the actual expenditures for such purposes  but

 11  by not more than:

 12    (i)  for  projects  approved  prior to July first, two thousand by the

 13  voters of the school district or by the board of  education  of  a  city

 14  school  district  in a city with more than one hundred twenty-five thou-

 15  sand inhabitants, and/or the chancellor in a city school district  in  a

 16  city  having a population of one million or more, an amount equal to the

 17  product of the applicable Õcounty or multi-county index of labor  market

 18  composite  wage  rateså  cost allowance established pursuant to subpara-

 19  graph one of this paragraph and twenty per centum for  school  buildings

 20  or  additions housing grades prekindergarten through six and by not more

 21  than the product of such Õindexå  cost  allowance  and  twenty-five  per

 22  centum  for  school  buildings or additions housing grades seven through

 23  twelve and by not more than the product of such Õindexå  cost  allowance

 24  and  twenty-five  per  centum  for school buildings or additions housing

 25  special education programs as approved by the commissioner.

 26    (ii) for projects approved on or after July first, two thousand by the

 27  voters of the school district or by the board of  education  of  a  city

 28  school  district  in a city with more than one hundred twenty-five thou-

                                        19                         12332-02-0

  1  sand inhabitants, and/or the chancellor in a city school district  in  a

  2  city  having a population of one million or more, an amount equal to the

  3  product of the lesser of the cost allowance computed pursuant to subpar-

  4  agraph  one  of  this  paragraph  or  the  actual  costs relating to the

  5  construction, acquisition, reconstruction, rehabilitation or improvement

  6  of a school building and twenty per centum for school buildings or addi-

  7  tions housing grades prekindergarten through six and by  not  more  than

  8  the  product of such lesser amount and twenty-five per centum for school

  9  buildings or additions housing grades seven through twelve  and  by  not

 10  more  than  the product of such lesser amount and twenty-five per centum

 11  for school buildings or additions housing special education programs  as

 12  approved by the commissioner.

 13    (3) Cost allowances for reconstructing or modernizing structures shall

 14  not  exceed one hundred per centum of the cost allowances for the equiv-

 15  alent new construction over the projected useful life of  the  building,

 16  to be determined in accordance with the regulations of the commissioner.

 17  Reconstruction  projects  shall reasonably meet the criteria established

 18  for new  construction,  including  but  not  limited  to  energy,  fire,

 19  personal safety and space per pupil standards.

 20    §  12. Clause (i) of subparagraph 2 of paragraph b of subdivision 6 of

 21  section 3602 of the education law, as amended by section 12 of Part L of

 22  chapter 405 of the laws of 1999, is amended to read as follows:

 23    (i) Eligibility. All school building  projects  (a)  approved  by  the

 24  voters  of the school district or (b) approved by the board of education

 25  of a city school district in a city with more than one  hundred  twenty-

 26  five  thousand  inhabitants,  and/or  the  chancellor  in  a city school

 27  district in a city having a population of one million or more or (c)  in

 28  the  case  of a construction emergency project, approved by the board of

                                        20                         12332-02-0

  1  education of any school district or by the chancellor in a  city  school

  2  district  in  a  city  having  a  population of one million or more, for

  3  projects approved on or after July first, nineteen hundred ninety-eight,

  4  shall  be  eligible  for  an  additional  apportionment pursuant to this

  5  subparagraph to the extent  that  expenditures  for  such  projects  are

  6  otherwise  aidable  pursuant to this subdivision, provided that, for all

  7  such projects so approved on or after July  first,  two  thousand,  only

  8  those  expenditures  directly  related  to  instructional space within a

  9  school building as defined by the commissioner shall be eligible for  an

 10  additional apportionment pursuant to this subparagraph.  For purposes of

 11  this  clause,  (A)  expenditures directly related to instructional space

 12  within a school building shall not include swimming  pools,  transporta-

 13  tion  facilities  and  other  noninstructional  space  as defined by the

 14  commissioner, and (B) a construction  emergency  project  shall  mean  a

 15  school  construction  project approved on or after July Õ1, 2000å first,

 16  two thousand, to remediate emergency situations which  arise  in  public

 17  school buildings and threaten the health and/or safety of building occu-

 18  pants,  as  a result of the unanticipated discovery of asbestos or other

 19  hazardous substances during construction work on a school or significant

 20  damage caused by a fire, snow storm, ice  storm,  excessive  rain,  high

 21  wind, flood or similar catastrophic event which results in the necessity

 22  for immediate repair.

 23    §  13.  Paragraph  f of subdivision 6 of section 3602 of the education

 24  law, as amended by chapter 474 of the laws of 1996, is amended  to  read

 25  as follows:

 26    f.  ÕNotwithstandingå (1) (i) For aids payable in the nineteen hundred

 27  ninety-six--ninety-seven through the nineteen  hundred  ninety-nine--two

 28  thousand  school  year,  notwithstanding  any inconsistent provisions of

                                        21                         12332-02-0

  1  this subdivision, the amount of current year  approved  expenditure  for

  2  debt service for bond anticipation notes and for bonds and capital notes

  3  issued  during the current year for school building purposes pursuant to

  4  paragraph  b  of this subdivision shall not be greater than the estimate

  5  of such expenditures as reported  to  the  commissioner  by  the  school

  6  district  on  or  before November fifteenth of the current year. For aid

  7  payable in the nineteen  hundred  ninety-six--ninety-seven  through  the

  8  nineteen  hundred  ninety-nine--two thousand school year and thereafter,

  9  any excess of actual expenditures for such debt service for bond  antic-

 10  ipation notes and such bonds or capital notes incurred in the base year,

 11  within  the limitations imposed pursuant to paragraph i of this subdivi-

 12  sion, over such estimate of base year expenditures as  reported  to  the

 13  commissioner  by  the school district on or before November fifteenth of

 14  the base year shall be  considered  approved  expenditures  for  capital

 15  outlay for school building purposes.

 16    (ii)  For  aids  payable  in the two thousand--two thousand one school

 17  year and thereafter, notwithstanding any inconsistent provisions of this

 18  subdivision, the amount of current year approved  expenditure  for  debt

 19  service  for  bond  anticipation notes issued to refinance the remaining

 20  principal of bond anticipation notes issued  during  an  earlier  school

 21  year,  shall  not  be  greater than the estimate of such expenditures as

 22  reported to the commissioner by the school district on or before  Novem-

 23  ber  fifteenth  of  the current year.   For aid payable in the two thou-

 24  sand--two thousand one school year and thereafter, any excess of  actual

 25  expenditures  for such debt service for bond anticipation notes incurred

 26  in the base year, within the limitations imposed pursuant to paragraph i

 27  of this subdivision, over such estimate of  base  year  expenditures  as

 28  reported  to the commissioner by the school district on or before Novem-

                                        22                         12332-02-0

  1  ber fifteenth of the base year shall be considered approved expenditures

  2  for capital outlay for school building purposes.

  3    (2)  For  aids  payable  in  the two thousand--two thousand one school

  4  year, notwithstanding any inconsistent provisions of  this  subdivision,

  5  the  amount  of approved expenditures incurred during the two thousand--

  6  two thousand one school year for  debt  service  for  bond  anticipation

  7  notes,  bonds  and  capital notes issued before July first, two thousand

  8  for school building purposes pursuant to paragraph b of this subdivision

  9  shall not be greater than the estimate of such expenditures as  reported

 10  to  the  commissioner  by  the  school  district  on  or before November

 11  fifteenth, nineteen hundred ninety-nine. For  aid  payable  in  the  two

 12  thousand one--two thousand two school year, any excess of actual expend-

 13  itures  for such debt service for such bond anticipation notes, bonds or

 14  capital notes incurred in the  two  thousand--two  thousand  one  school

 15  year,  within  the  limitations  imposed pursuant to paragraph i of this

 16  subdivision, over such estimate as reported to the commissioner  by  the

 17  school  district on or before November fifteenth, nineteen hundred nine-

 18  ty-nine shall be considered approved expenditures for capital outlay for

 19  school building purposes.

 20    (3) For aids payable in the two thousand--two thousand one school year

 21  and thereafter, notwithstanding  any  inconsistent  provisions  of  this

 22  subdivision,  the  amount  of  approved expenditures incurred during the

 23  current school year for debt service for bond anticipation notes,  bonds

 24  and  capital  notes  issued  during the current school year for purposes

 25  other than to refinance the remaining  principal  of  bond  anticipation

 26  notes,  bonds,  or  capital  notes issued during an earlier school year,

 27  within the limitations imposed pursuant to paragraph i of this  subdivi-

                                        23                         12332-02-0

  1  sion,  shall  be considered approved expenditures for capital outlay for

  2  school building purposes.

  3    (4)  For  aids  payable  in  the two thousand--two thousand one school

  4  year, and thereafter, notwithstanding  any  inconsistent  provisions  of

  5  this  subdivision,  the  amount of approved expenditures incurred during

  6  the current school year for debt service for  bonds  and  capital  notes

  7  issued  on or after July first, two thousand, shall equal the product of

  8  the actual expenditures incurred during the current school year for debt

  9  service for each such bond or capital note, less any accrued interest or

 10  premiums received by the district, and the applicable bond percent.  The

 11  applicable bond percent shall equal the product of:

 12    (i)  one  minus  the  quotient  of  the number of whole months elapsed

 13  between the date of issue of the bond or capital note and  the  date  of

 14  the   initial   payment   related   to  a  contract  for  the  erection,

 15  construction, reconstruction, alteration or purchase of  a  building  by

 16  the  school district relating to approved projects funded with the prin-

 17  cipal divided by the number of whole months within the term of the  bond

 18  or capital note; and

 19    (ii)  the  quotient  of  the  approved  project costs of such approved

 20  projects divided by the total principal borrowed.  The  applicable  bond

 21  percent shall be expressed as a decimal to five places without rounding.

 22  Notwithstanding  any  other provisions of this subparagraph, upon review

 23  and approval of documentation submitted by a school district that it was

 24  necessary to issue bonds and or capital notes  more  than  three  months

 25  prior  to  the  initial  payment related to a contract for the erection,

 26  construction, reconstruction, alteration or purchase of  a  building  by

 27  the  school  district  relating to approved projects funded, the commis-

 28  sioner may compute an applicable bond percent for the purposes  of  this

                                        24                         12332-02-0

  1  subparagraph that shall be equal to the quotient of the approved project

  2  costs  of  approved  projects  funded  with the principal divided by the

  3  total principal borrowed, or if such bonds or capital notes  are  issued

  4  no  more  than  three  months  prior to the initial payment related to a

  5  contract for the erection, construction, reconstruction,  alteration  or

  6  purchase  of  a  building  by  the  school district relating to approved

  7  projects funded, the  commissioner  shall  compute  an  applicable  bond

  8  percent  for  the  purposes  of this subparagraph that shall be equal to

  9  such quotient of the approved project costs of approved projects  funded

 10  divided by the total principal borrowed.

 11    § 14. Subdivision 6 of section 3602 of the education law is amended by

 12  adding a new paragraph j to read as follows:

 13    j.  Notwithstanding  any  other  provision  of  this  subdivision, the

 14  approved expenditures used to compute an apportionment pursuant to  this

 15  subdivision in the current school year shall be reduced by the amount of

 16  any  revenues  received  by  the  school  district in the base year from

 17  interest and dividends earned from investment of available cash balances

 18  of principal amounts borrowed in  support  of  school  construction  for

 19  which  an  apportionment  based on debt service expenditures has been or

 20  will be payable pursuant to this subdivision.

 21    § 15. Subdivision 6-c of section 3602 of the education law,  as  added

 22  by chapter 170 of the laws of 1994, is amended to read as follows:

 23    6-c.  Building  aid for metal detectors. In addition to the apportion-

 24  ments payable to a school district pursuant to subdivision six  of  this

 25  section,  the  commissioner  is  hereby  authorized  to apportion to any

 26  school district additional building aid pursuant to this subdivision for

 27  its approved expenditures in the base year for the purchase of  station-

 28  ary  metal  detectors,  portable  or hand held metal detectors, security

                                        25                         12332-02-0

  1  cameras, or other security devices approved  by  the  commissioner  that

  2  increase the safety of students and school personnel, provided, however,

  3  that  funds  apportioned  to  school  districts pursuant to this section

  4  shall  not  supplant  funds  for  existing  district expenditures or for

  5  existing contractual obligations of the district  for  stationary  metal

  6  detectors,  portable  or  hand held metal detectors, security cameras or

  7  security devices. ÕPortable or hand held metal detectors  shall  not  be

  8  eligible  for  aid  pursuant  to  this subdivision.å Such additional aid

  9  shall be computed in the manner prescribed in subdivision  six  of  this

 10  section  using  the district's current year building aid ratio, provided

 11  that the limitations on cost allowances prescribed  by  paragraph  a  of

 12  subdivision  six of this section shall not apply. The commissioner shall

 13  annually prescribe a special cost allowance for metal  detectors,  port-

 14  able or hand held metal detectors and security cameras, and the approved

 15  expenditures shall not exceed such cost allowance.

 16    §  16.  Paragraph  c of subdivision 7 of section 3602 of the education

 17  law, as amended by chapter 474 of the laws of 1996, is amended  to  read

 18  as follows:

 19    c.  For  the  purposes  of this apportionment, approved transportation

 20  capital, debt service, and lease expense shall be the actual expenditure

 21  incurred by a school and approved by the commissioner for those items of

 22  transportation capital, debt service and lease expense  allowable  under

 23  subdivision  two  of  section  thirty-six hundred twenty-three-a of this

 24  article for: (i) the regular aidable transportation of pupils,  as  such

 25  terms  are defined in sections thirty-six hundred twenty-one and thirty-

 26  six hundred twenty-two-a of this article,  (ii)  the  transportation  of

 27  children with disabilities pursuant to article eighty-nine of this chap-

 28  ter, and (iii) the transportation of homeless children pursuant to para-

                                        26                         12332-02-0

  1  graph  c  of subdivision four of section thirty-two hundred nine of this

  2  chapter, provided that the total approved cost  of  such  transportation

  3  shall not exceed the amount of the total cost of the most cost-effective

  4  mode  of  transportation. Approvable expenses for the purchase of school

  5  buses shall be limited to the actual purchase price, or Õthe expense  as

  6  if the bus were purchased under state contractå an amount established by

  7  the  commissioner  for the model year, bus type, engine class, fuel type

  8  and passenger capacity of each bus so purchased, whichever is less.  ÕIf

  9  theå  The  commissioner  Õdetermines  that  no comparable bus waså shall

 10  annually establish such amount based on an analysis of the cost of buses

 11  of similar model year, bus type, engine class, fuel type  and  passenger

 12  capacity  available  under  state contract Õat the time of purchase, the

 13  approvable expenses shall be the actual purchase price or the state wide

 14  median price of such bus in the most recent base year in which such  bus

 15  was  sold,  whichever  is  less.  Such  median  shall be computed by the

 16  commissioner for the purposes of this subdivisionå.  Commencing with aid

 17  payable in the nineteen hundred ninety-six--ninety-seven school year, no

 18  aid shall be payable in the current year  for  costs  incurred  for  the

 19  purchase or lease of a school bus in the base year unless (i) such costs

 20  were budgeted by the school district and so reported to the commissioner

 21  by  November fifteenth of the base year or (ii) such costs were incurred

 22  on an emergency basis to replace a school bus  that  has  been  rendered

 23  unusable  due  to accident, fire or other similar circumstance, and such

 24  emergency and the cost of such replacement were reported to the  commis-

 25  sioner  within  sixty  days of such replacement; provided, however, that

 26  nothing herein shall prohibit the district from claiming  aid  for  such

 27  purchase  or  lease  of  a  school bus in the year following the current

 28  school year as  if  such  costs  were  approved  transportation  expense

                                        27                         12332-02-0

  1  incurred during the current year for the purposes of paragraph a of this

  2  subdivision  and  to  the  extent  that such costs are identified to the

  3  commissioner by November first of the current year.

  4    §  17.  Paragraphs f, g and h of subdivision 12 of section 3602 of the

  5  education law are REPEALED and a new paragraph f is  added  to  read  as

  6  follows:

  7    f.  (1) Notwithstanding any provisions of law to the contrary, for the

  8  two thousand--two thousand one school year and  thereafter,  any  school

  9  district  which  meets the higher learning standards set-aside threshold

 10  criteria shall set aside a portion of the sum of its aid payable  pursu-

 11  ant  to  clause  (i) of paragraph a of this subdivision and subdivisions

 12  fifteen, sixteen and eighteen  of  this  section  for  the  purposes  of

 13  academic  intervention  services  pursuant  to  the  plan filed with the

 14  commissioner pursuant to regulations.

 15    (2) The higher learning standards set-aside threshold  criteria  shall

 16  mean  (i)  more  than  fifty percent of the students who took the fourth

 17  grade English language arts assessment in the year  prior  to  the  base

 18  year  received  scores classified as either level one or level two, (ii)

 19  five percent or more of the students who took the fourth  grade  English

 20  language  arts  assessment  in  the year prior to the base year received

 21  scores classified as level one, and (iii) five or more of  the  students

 22  who  took  the fourth grade English language arts assessment in the year

 23  prior to the base year received scores classified as level one.

 24    (3) For districts which meet the higher learning  standards  threshold

 25  criteria,the  portion  of the sum of the aids payable pursuant to clause

 26  (i) of paragraph a of this subdivision and subdivisions fifteen, sixteen

 27  and eighteen of this section to be set aside  shall  equal  ten  percent

 28  where more than twenty percent of the students who took the fourth grade

                                        28                         12332-02-0

  1  English  language  arts  assessment  in  the year prior to the base year

  2  received scores classified as level one, five percent  where  more  than

  3  fifteen  percent  of  the  students  who  took  the fourth grade English

  4  language  arts  assessment  in  the year prior to the base year received

  5  scores classified as level  one,  three  percent  where  more  than  ten

  6  percent  of the students who took the fourth grade English language arts

  7  assessment in the year prior to the base year received scores classified

  8  as level one provided, however, that the portion shall not be less  than

  9  one percent.

 10    §  18.  Paragraph d of subdivision 15 of section 3602 of the education

 11  law, as amended by section 23 of part L of chapter 405 of  the  laws  of

 12  1999, is amended to read as follows:

 13    d.  Notwithstanding  any  inconsistent  provisions of this article, if

 14  such city school district elected to receive operating  aid  payable  in

 15  the  nineteen hundred Õninety-eight--ninety-nineå ninety-nine--two thou-

 16  sand school year under the  provisions  of  this  subdivision,  approved

 17  transportation expense for public service transportation for transporta-

 18  tion aid payable in the nineteen hundred Õninety-nine--two thousandå two

 19  thousand--two  thousand  one  school year shall not include any expendi-

 20  tures to the New York City  Metropolitan  Transportation  Authority  for

 21  public service transportation during the nineteen hundred Õninety-eight-

 22  -ninety-nineå  ninety-nine--two  thousand  school  year  nor  shall such

 23  expense be included in approved operating expense.

 24    § 19. Subparagraph 1 of paragraph a and paragraphs b and c of subdivi-

 25  sion 16 of section 3602 of the education law, subparagraph  1  of  para-

 26  graph  a  as  amended by chapter 260 of the laws of 1993, paragraph b as

 27  added by chapter 57 of the laws of 1993 and paragraph c  as  amended  by

 28  chapter 170 of the laws of 1994, are amended to read as follows:

                                        29                         12332-02-0

  1    (1)  "Tax  effort ratio" shall mean the quotient of (i) the district's

  2  residential real property tax levy less any amounts received pursuant to

  3  section thirty-six hundred nine-e of this article in the year  following

  4  the  year  for  which the residential real property tax levy was imposed

  5  divided  by  (ii)  the district's adjusted gross income computed to five

  6  decimals without rounding.

  7    b. Tax equalization aid. In addition to any other apportionment pursu-

  8  ant to this chapter, a school district shall be eligible for  an  appor-

  9  tionment  for  tax  equalization under the provisions of this paragraph.

 10  Such apportionment shall equal the product of the  total  aidable  pupil

 11  units  for  tax aid and the positive remainder of the district's expense

 12  per pupil in excess of operating and growth aid minus the district's tax

 13  yield per pupil, provided, however, that aid payable  pursuant  to  this

 14  paragraph  in  the  current year does not exceed aid payable pursuant to

 15  this paragraph in the base year.

 16    c. Tax effort aid. In addition to any other apportionment pursuant  to

 17  this chapter, a school district with a pupil wealth ratio, as defined in

 18  subdivision  one  of  this section, below two and a tax effort ratio, as

 19  defined in paragraph a of this  subdivision,  greater  than  thirty-nine

 20  thousandths  shall be eligible for an apportionment for tax effort under

 21  the provisions of this paragraph.   Such apportionment shall  equal  the

 22  product  of  the  total aidable pupil units for tax aid and nine hundred

 23  twelve dollars and forty-eight cents and the tax effort factor.

 24    § 20. The subdivision heading of subdivision 19 of section 3602 of the

 25  education law, as added by chapter 57 of the laws of 1993, is amended to

 26  read as follows:

 27    Excess cost aid for pupils with handicapping  conditions  payable  for

 28  the two thousand--two thousand one and prior school years.

                                        30                         12332-02-0

  1    §  21.  Clause 1 of subparagraph b of paragraph 1 of subdivision 19 of

  2  section 3602 of the education law, as amended by section 51-g of part  L

  3  of chapter 405 of the laws of 1999, is amended to read as follows:

  4    (1)  The  attendance of pupils who have been determined by a committee

  5  on special education either to require placement for sixty per centum or

  6  more of the school day in a special class, or to require home or  hospi-

  7  tal  instruction  for  a  period  of more than sixty days, or to require

  8  special services or programs for more  than  sixty  per  centum  of  the

  9  school  day  shall  be  multiplied  by a special services weighting. The

 10  special services weighting shall  be  one  and  seven-tenths,  provided,

 11  however, that solely for the purposes of calculation of an apportionment

 12  pursuant to this subdivision, such special services weighting shall be:

 13    (i)  for aid payable in the nineteen hundred ninety-nine--two thousand

 14  school year, one and seven-tenths;

 15    (ii) for aid payable in the  two  thousand--two  thousand  one  school

 16  year, one and sixty-eight hundredths;

 17    Õ(iii)  for  aid  payable  in  the  two thousand one--two thousand two

 18  school year, one and sixty-five hundredths;å

 19    § 22. Subparagraph c of paragraph 1 of subdivision 19 of section  3602

 20  of  the education law, as amended by chapter 474 of the laws of 1996, is

 21  amended to read as follows:

 22    c. (1) Expense per pupil for the purposes of computing the  apportion-

 23  ment payable pursuant to this subdivision for the nineteen hundred nine-

 24  ty-nine--two  thousand  and  earlier school years shall be not less than

 25  two thousand dollars and not more than the greater of seven thousand one

 26  hundred ten dollars or the statewide average of such expense per  pupil.

 27  Such  statewide  average expense per pupil shall be computed and rounded

 28  to the nearest fifty dollars by the commissioner using the  expense  and

                                        31                         12332-02-0

  1  pupils  as estimated by school districts or as determined by the commis-

  2  sioner for use in determining the expense  per  pupil  of  the  district

  3  pursuant  to  subdivision one of this section for all districts eligible

  4  for  aid  pursuant to this section. For the purposes of calculating such

  5  statewide expense per pupil, the data for the city  school  district  of

  6  the city of New York shall be city-wide data.

  7    (2)  Expense per pupil for the purposes of computing the apportionment

  8  payable pursuant to this subdivision for the two thousand--two  thousand

  9  one school year and the apportionment payable pursuant to paragraph four

 10  of  subdivision nineteen-a of this section for the two thousand one--two

 11  thousand two school year and thereafter shall  mean  approved  operating

 12  expense  for  two years prior to the base year divided by the sum of the

 13  total aidable pupil units plus weighted pupils with handicapping  condi-

 14  tions  computed using pupil counts for two years prior to the base year,

 15  and shall be limited to not less than two thousand dollars and not  more

 16  than the greater of seven thousand one hundred ten dollars or the state-

 17  wide  average  of such expense per pupil. Such statewide average expense

 18  per pupil shall be computed and rounded to the nearest fifty dollars  by

 19  the  commissioner  using  the  expense and pupils as estimated by school

 20  districts or as determined by the commissioner for  use  in  determining

 21  the  expense per pupil of the district, without limits, pursuant to this

 22  clause for all districts eligible for aid pursuant to this section.  For

 23  the  purposes  of calculating such statewide expense per pupil, the data

 24  for the city school district of the city of New York shall be  city-wide

 25  data.

 26    §  23.  Subdivision 19 of section 3602 of the education law is amended

 27  by adding a new paragraph 9 to read as follows:

                                        32                         12332-02-0

  1    9. Excess cost aid for pupils with handicapping conditions payable for

  2  the two thousand--two thousand one  and  prior  school  years  shall  be

  3  computed pursuant to the provisions of this subdivision. Excess cost aid

  4  for  pupils  with  handicapping  conditions payable for the two thousand

  5  one--two  thousand  two  school  year  and  thereafter shall be computed

  6  pursuant to the provisions of subdivision nineteen-a of this section.

  7    § 24. Section 3602 of the education law is amended  by  adding  a  new

  8  subdivision 19-a to read as follows:

  9    19-a. Excess cost aid for pupils with disabilities payable for the two

 10  thousand  one--two  thousand  two  school year and thereafter. 1.  Defi-

 11  nitions.  For the purposes of this subdivision:

 12    a. "District enrollment growth factor" shall mean the greater  of  one

 13  or the quotient, expressed as a decimal to four places without rounding,

 14  of  the  sum  of  the resident public school district enrollment and the

 15  resident nonpublic school district enrollment of the school district for

 16  the base year divided by the sum of the resident public school  district

 17  enrollment  and the resident nonpublic school district enrollment of the

 18  school district  for  the  nineteen  hundred  ninety-nine--two  thousand

 19  school  year  as computed based on data on file with the commissioner as

 20  of February first of the base year.

 21    b. "District apportionment" shall mean the  product  of  the  district

 22  enrollment  growth factor and the aid selected pursuant to paragraph six

 23  of subdivision nineteen of this section in the two  thousand--two  thou-

 24  sand one school year.

 25    2.  In  addition to any other apportionment under this section, school

 26  districts shall be eligible for an excess cost  apportionment  equal  to

 27  the district apportionment as defined in subparagraph b of paragraph one

 28  of this subdivision.

                                        33                         12332-02-0

  1    3.  a. Additional incentive aid for providing programs and services to

  2  pupils with disabilities in the least restrictive  environment  and  for

  3  preventing  unnecessary referrals to special education. School districts

  4  demonstrating significant improvement  or  satisfactory  performance  in

  5  providing programs and services to pupils with disabilities in the least

  6  restrictive  environment and preventing unnecessary referrals to special

  7  education shall qualify for aid pursuant to this  paragraph.  The  total

  8  amount  of  aid to be provided pursuant to this paragraph during the two

  9  thousand one--two thousand two school  year  and  thereafter  shall  not

 10  exceed   fifty  million  dollars  ($50,000,000),  or  the  appropriation

 11  provided therefore, and such aid shall be provided based  on  a  formula

 12  developed  by the commissioner and approved by the director of the divi-

 13  sion of the budget and the chair of the senate finance committee and the

 14  chair of the assembly ways and means committee.

 15    b. Such formula shall include, but not be limited to, consideration of

 16  each school district's relative performance on the following criteria in

 17  determining the eligibility of school districts for aid pursuant to this

 18  paragraph:

 19    (1) the percentage of pupils with disabilities who are declassified by

 20  the school district's committee  on  special  education  each  year  and

 21  receive  declassification support services in a full-time regular educa-

 22  tion program;

 23    (2) the number of pupils with disabilities who have been classified by

 24  the school district's committee on  special  education  expressed  as  a

 25  percent  of  the district's public and nonpublic enrollment and compared

 26  to the percentage of the total public and nonpublic  enrollment  of  the

 27  state  that  represents  pupils  so  classified  by  all  public  school

 28  districts; and

                                        34                         12332-02-0

  1    (3) the annual increase or decrease in the number  and  percentage  of

  2  the  school  district's classified pupils, who have been determined by a

  3  committee on special education to require special services  or  programs

  4  for sixty per centum or more of the school day, and who receive substan-

  5  tially all prescribed special education programs and services in general

  6  education classrooms with non-disabled students.

  7    c.  Such  formula shall also include, but not be limited to, consider-

  8  ation of the following factors in  determining  each  school  district's

  9  share of the statewide apportionment:

 10    (1) the combined wealth ratio of the district;

 11    (2)  the percent of eligible applicants for the free and reduced price

 12  lunch program in the district;

 13    (3) the public school enrollment of the district; and

 14    (4) a factor to be determined by the commissioner to insure  that  the

 15  total of all apportionments calculated pursuant to this paragraph do not

 16  exceed that appropriation available in that year.

 17    d.  Apportionments  calculated  pursuant  to  this  paragraph shall be

 18  deemed final upon a date to be determined by the commissioner.

 19    4. High excess cost aid for newly enrolled pupils  with  disabilities.

 20  a. Any school district having a pupil with a disability who was enrolled

 21  in  the  school  district  during  the base year but was not so enrolled

 22  during the year prior to the  base  year  and  for  whom  the  cost,  as

 23  approved  by  the  commissioner,  of  appropriate  special  services  or

 24  programs provided during the base year exceeds three times  the  expense

 25  per  pupil,  without limits, of the school district shall be entitled to

 26  an additional apportionment pursuant to this paragraph. Such  additional

 27  apportionment  shall  be computed for each such child by multiplying the

 28  district's high excess cost aid  ratio  by  the  amount  by  which  such

                                        35                         12332-02-0

  1  pupil's  approved  cost  of  appropriate  special  services  or programs

  2  provided during the base year exceeds three times the district's expense

  3  per pupil.

  4    b. For the purposes of this subdivision the high excess cost aid ratio

  5  shall  equal  the  greater of the difference of one minus the product of

  6  fifty-one one hundredths and the combined wealth ratio,  or  twenty-five

  7  one  hundredths,  and  shall  be expressed as a decimal carried to three

  8  places without rounding.

  9    c. In the event the appropriation for purposes of  this  paragraph  in

 10  any  year is insufficient to pay all claims received pursuant this para-

 11  graph, the commissioner shall determine  the  percentage  of  the  total

 12  claims  submitted  that  is represented by each district's claim on file

 13  with the commissioner at the time of  creation  of  each  data  file  or

 14  fiscal  report  required  by  subdivision  twenty-one  of  section three

 15  hundred five of this chapter and shall pay such  claims  based  on  such

 16  prorated  basis  among all districts filing such claims until the appro-

 17  priation  is  exhausted,  provided  that  such  prorated   apportionment

 18  computed and payable as of September first of the school year immediate-

 19  ly  following  the  school  year  for which such aid is claimed shall be

 20  deemed final and not subject to change. For aid payable in the two thou-

 21  sand one--two thousand two school year, the aid payable pursuant to this

 22  paragraph shall not exceed five million dollars ($5,000,000).

 23    § 25. Paragraph e of subdivision 24 of section 3602 of  the  education

 24  law,  as  amended by chapter 474 of the laws of 1996, is amended to read

 25  as follows:

 26    e. Employment preparation education apportionment. In addition to  any

 27  other aid payable under this section, the apportionment pursuant to this

 28  subdivision  shall  be the product obtained when the employment prepara-

                                        36                         12332-02-0

  1  tion education hours are multiplied by the aid per  contact  hour  which

  2  shall  equal the product of the employment preparation program aid ceil-

  3  ing and the employment preparation education aid ratio computed  to  two

  4  decimals,  rounded. Notwithstanding the provisions of section thirty-six

  5  hundred nine-a of this article, the payment of such apportionment  shall

  6  be  based  upon  reports  required  by  the commissioner for the periods

  7  ending December thirty-first, and June thirtieth of  each  school  year;

  8  payments for the first reporting period shall be made after April first,

  9  based  on  claims on file by March first, provided that the total of all

 10  such payments shall not exceed twenty-five percent  of  the  amount  for

 11  such  school  year, with the approved amount of such claims reduced on a

 12  pro rata basis if necessary; the remainder of any payments due  for  the

 13  first period plus any payments due for the rest of the school year shall

 14  be  paid  after  October  first,  based  on  claims on file by September

 15  fifteenth, provided that the total of such payments shall not exceed the

 16  total amount of ninety-six million one hundred eighty  thousand  dollars

 17  ($96,180,000)  for  such  school  year, with the approved amount of such

 18  claims reduced on a pro rata basis if necessary, provided, however, that

 19  for the Õnineteen  hundred  ninety-five--ninety-sixå  two  thousand--two

 20  thousand  one  school  year  and thereafter, such total amount shall not

 21  exceed Õninety-fourå ninety million one hundred eighty thousand  dollars

 22  Õ($94,180,000)å  ($90,180,000);  and aid paid pursuant to this paragraph

 23  shall not be included in the computation  of  the  district  expenditure

 24  need  as defined in such section thirty-six hundred nine-a of this arti-

 25  cle. The employment preparation education  apportionment  for  the  city

 26  school  district  of the city of New York shall be computed only for the

 27  city as a whole.

                                        37                         12332-02-0

  1    § 26. Subparagraph (i) of paragraph c of subdivision 26-a  of  section

  2  3602 of the education law, as amended by section 30 of part C of chapter

  3  58 of the laws of 1998, is amended to read as follows:

  4    (i)  the district's building aid ratio selected for use in the current

  5  year pursuant to clause b of subparagraph two of paragraph c of subdivi-

  6  sion six of this section; or

  7    § 27. Section 3602 of the education law is amended  by  adding  a  new

  8  subdivision 39 to read as follows:

  9    39.  Cooperative  services  aid. In addition to any other aid computed

 10  under the provisions of this section, any school district  eligible  for

 11  comprehensive  operating  aid pursuant to this section which is a compo-

 12  nent school district, or was formerly a component school district, of  a

 13  board  of  cooperative  educational  services  shall  be eligible for an

 14  apportionment  computed  under  this  subdivision  for  approved  shared

 15  services provided pursuant to an agreement with one or more other school

 16  districts to provide a joint service for reasons of efficiency and econ-

 17  omy  pursuant to article five-g of the general municipal law which would

 18  be approvable for aid in accordance with the provisions of section nine-

 19  teen hundred fifty of this chapter. Such apportionment shall be computed

 20  by multiplying approved shared services expenses by the shared  services

 21  aid  ratio.  The  shared  services aid ratio shall be equal to the ratio

 22  used to compute aid under paragraph a of  subdivision  five  of  section

 23  nineteen  hundred fifty of this chapter. Any expenditures aided pursuant

 24  to this subdivision shall not be aidable pursuant to subdivisions  twen-

 25  ty-six or twenty-six-a of this section or section nineteen hundred fifty

 26  of this chapter.

                                        38                         12332-02-0

  1    § 28. Paragraph i of subdivision 12 of section 3602-e of the education

  2  law,  as  amended  by section 38 of part L of chapter 405 of the laws of

  3  1999, is amended to read as follows:

  4    i.  commencing July first, nineteen hundred ninety-nine, Õand continu-

  5  ing until June thirtieth, two thousand  one,å  a  requirement  that  the

  6  district  give  preference  to serving eligible children who are econom-

  7  ically disadvantaged, as defined by the commissioner;

  8    § 29. Subdivision 8 of section 3604 of the education law,  as  amended

  9  by  section  44 of part L of chapter 405 of the laws of 1999, is amended

 10  to read as follows:

 11    8. No school shall be in session on a Saturday  or  a  legal  holiday,

 12  except  general election day, Washington's birthday and Lincoln's birth-

 13  day, and except that driver education classes  may  be  conducted  on  a

 14  Saturday.   A deficiency not exceeding three days during any school year

 15  caused by teachers' attendance upon conferences held by  superintendents

 16  of  schools of city school districts or other school districts employing

 17  superintendents  of  schools  shall  be  excused  by  the  commissioner,

 18  provided  however,  notwithstanding  any  other  provision  of law, that

 19  during the nineteen hundred ninety-two--ninety-three through the  Õnine-

 20  teen  hundred  ninety-nine--two thousandå two thousand--two thousand one

 21  school years, the commissioner shall excuse a deficiency  not  exceeding

 22  four  days  during  such school year caused by teachers' attendance upon

 23  conferences held by such superintendents, provided  that  at  least  two

 24  such conference days during such school year shall be dedicated to staff

 25  attendance  upon  conferences  providing  staff  development relating to

 26  implementation of the new high learning standards  and  assessments,  as

 27  adopted by the board of regents.  Notwithstanding any other provision of

 28  law,  rule  or regulation to the contrary, school districts may elect to

                                        39                         12332-02-0

  1  use one or more of such allowable conference days in units of  not  less

  2  than  one  hour each to provide staff development activities relating to

  3  implementation of the new high learning  standards  and  assessments.  A

  4  district  making such election may provide such staff development during

  5  the regularly scheduled daily session and apply such units to satisfy  a

  6  deficiency  in  the  length of one or more daily sessions of instruction

  7  for pupils as specified in regulations of the commissioner.

  8    § 30. The opening paragraph of section 3609-a of the education law, as

  9  amended by section 45 of part L of chapter 405 of the laws of  1999,  is

 10  amended to read as follows:

 11    For  aid  payable  in  the  nineteen  hundred ninety-six--ninety-seven

 12  school year and thereafter, "moneys apportioned" shall mean  the  lesser

 13  of (i) the sum of one hundred percent of the respective amount set forth

 14  for  each  school  district  as  payable pursuant to this section in the

 15  school aid computer listing for the current year produced by the commis-

 16  sioner in support of the budget which includes the appropriation for the

 17  general support for public schools for the prescribed payments and indi-

 18  vidualized payments due prior to April first for the current  year  plus

 19  the  miscellaneous  general  aid  apportionments  which  shall  include:

 20  apportionments payable during the current school year pursuant to  para-

 21  graph  g of subdivision two, subdivision five and subdivision thirty-six

 22  of section thirty-six hundred two of this article minus  any  reductions

 23  to current year aids pursuant to subdivision seven of section thirty-six

 24  hundred four of this article or any deduction from apportionment payable

 25  pursuant  to  this  chapter  for  collection  of a school district basic

 26  contribution as defined  in  subdivision  eight  of  section  forty-four

 27  hundred one of this chapter, or (ii) the apportionment calculated by the

 28  commissioner  based on data on file at the time the payment is processed

                                        40                         12332-02-0

  1  provided however, that for the purposes of any payments made pursuant to

  2  this section prior to the first business day  of  June  of  the  current

  3  year,  moneys apportioned shall not include any aids payable pursuant to

  4  subdivisions  six  and  fourteen,  if  applicable, of section thirty-six

  5  hundred two of this article as current year aid for debt service on bond

  6  anticipation notes and/or bonds first issued in the current year or  any

  7  aids  payable as growth aid for the current year pursuant to subdivision

  8  thirteen of section thirty-six hundred two of this article or  any  aids

  9  payable  for  full-day  kindergarten  for  the  current year pursuant to

 10  subdivision twelve-a of section thirty-six hundred two of this  article.

 11  The definitions of "base year" and "current year" as set forth in subdi-

 12  vision one of section thirty-six hundred two of this article shall apply

 13  to  this section. For aid payable in the Õnineteen hundred ninety-nine--

 14  two thousandå two thousand--two thousand one school year,  reference  to

 15  such  "school  aid computer listing for the current year" shall mean the

 16  printouts entitled Õ"SA9900"å "BT008-1".

 17    § 31. Subdivision 2 of section 3609-e of the education law is  amended

 18  by adding a new paragraph h to read as follows:

 19    h.  On or before March thirty-first a portion of the school tax relief

 20  aid payable to the school district for the current year  shall  be  paid

 21  equal  to one hundred percent of any increase in such aid over the total

 22  of such aids paid through the first business day of January,  as  certi-

 23  fied  to  the commissioner by the office of real property services on or

 24  before March first.

 25    § 32. Subdivision 10 of  section  3635-b  of  the  education  law,  as

 26  amended  by  chapter  403  of  the  laws  of 1992, is amended to read as

 27  follows:

                                        41                         12332-02-0

  1    10. The cost of providing transportation, pursuant to  the  provisions

  2  of  this  section, shall not be an ordinary contingent expense and shall

  3  not be included as an item of expense for purposes  of  determining  the

  4  transportation  quota of such district. ÕFurthermore, no change shall be

  5  made  for  transportation  aid  for such district due to the addition or

  6  subtraction of non-quota pupils required for the elimination of hazard.å

  7    § 33. Section 3641 of the education law is amended  by  adding  a  new

  8  subdivision 11 to read as follows:

  9    11. Reading for Results Grants. a. Definitions. As used in this subdi-

 10  vision:

 11    (1)  "Base  year" shall mean the school year immediately preceding the

 12  school year for which a grant is awarded pursuant to this subdivision.

 13    (2) "Eligible school district" shall mean a school  district  eligible

 14  for  an  apportionment pursuant to subdivision eighteen of section thir-

 15  ty-six hundred two or section thirty-six hundred two-b of this  article,

 16  including the city school district of the city of New York on a citywide

 17  basis,  in  which  (i) five percent or more of the students who took the

 18  fourth grade English language arts assessment in the year prior  to  the

 19  base  year received scores classified as level one and (ii) five or more

 20  of the students who took the fourth grade English language arts  assess-

 21  ment  in  the  year prior to the base year received scores classified as

 22  level one.

 23    (3) "Eligible charter school" shall mean a school established pursuant

 24  to article fifty-six of this chapter that elects to provide  a  remedial

 25  summer school program pursuant to this subdivision.

 26    (4)  "Statewide  allocation"  for  grants  payable in the two thousand

 27  one--two thousand two school year,  shall  mean  forty  million  dollars

 28  ($40,000,000).

                                        42                         12332-02-0

  1    b.  Authorization  of  grants. In addition to apportionments otherwise

  2  provided pursuant to section thirty-six hundred two of this article,  in

  3  the  two  thousand one--two thousand two school year and thereafter, the

  4  commissioner is hereby authorized to award  grants  to  eligible  school

  5  districts  and eligible charter schools for services and expenses of the

  6  reading for results program, for the purpose of  providing  support  for

  7  early  grade  reading  programs in grades two through four or the summer

  8  following grade four, through programs that provide:

  9    (1) summer reading programs linked to ensuring that students  who  are

 10  promoted  to  the next grade level have mastered the skills necessary to

 11  learn the curriculum of the next grade;

 12    (2) summer reading programs for students who  took  the  fourth  grade

 13  English  language  arts  assessment in the base year and received scores

 14  classified as level one;

 15    (3) summer reading programs for children with limited  English  profi-

 16  ciency; or

 17    (4) intensive reading programs outside of the regular school calendar.

 18    c.  Grant  applications. Eligible school districts or eligible charter

 19  schools seeking a basic grant pursuant to this subdivision shall  submit

 20  an  application  and district plan or in the case of an eligible charter

 21  school, school plan for the approval  of  the  commissioner.  Such  plan

 22  shall be in a form prescribed by the commissioner and shall include, but

 23  not be limited to, a proposed budget, and a description of:

 24    (1) the anticipated number of students to be served;

 25    (2) criteria for student eligibility;

 26    (3) performance goals of the program, including test score improvement

 27  and program attendance;

 28    (4) how performance goals will be met;

                                        43                         12332-02-0

  1    (5) how performance goals will be measured; 

  2    (6)  a  program  calendar,  including  the days of instruction and the

  3  number of hours of instruction per day;

  4    (7) a plan for permitting participation of qualified  literacy  volun-

  5  teers; and

  6    (8) the extent, if any, to which the program will involve partnerships

  7  with private corporations and institutions of higher education.

  8    d.  Award of grants. Grants shall be awarded in accordance with proce-

  9  dures and criteria established in regulations of the commissioner.  Each

 10  eligible school district or eligible charter school approved for funding

 11  by the commissioner shall receive a grant award equal to the lesser of:

 12    (1) the product of approved program costs and eighty percent;

 13    (2)  the  product  of the statewide allocation and the result obtained

 14  when the number of students who took the fourth grade  English  language

 15  arts  assessment  in the year prior to the base year and received scores

 16  classified as level one in the district or eligible  charter  school  is

 17  divided by the sum of such students in all eligible districts and eligi-

 18  ble  charter  schools  that have elected to provide programs pursuant to

 19  this subdivision; or

 20    (3) the product of the statewide allocation and forty percent.

 21    Such grant awards shall become final upon a date to be  determined  by

 22  the  commissioner,  provided, however that, in the event that the amount

 23  appropriated for purposes of this subdivision in any year is  more  than

 24  the  sum of the grants payable to eligible school districts and eligible

 25  charter schools pursuant to this  subdivision,  the  commissioner  shall

 26  provide  for  allocation of the remaining apportionment, including grant

 27  awards to school  districts  and  charter  schools  that  did  not  have

 28  students in the fourth grade in the year prior to the base year.

                                        44                         12332-02-0

  1    e.  Payment  of  grants.  Notwithstanding  any provision of law to the

  2  contrary, fifty percent of such grant shall be payable upon approval  of

  3  the  commissioner.  The  remaining grant amount shall be payable to each

  4  eligible district or eligible charter school upon a demonstration to the

  5  satisfaction  of  the  commissioner that its performance goals have been

  6  met.

  7    f. Use of grant funds. Grant funds awarded pursuant to  this  subdivi-

  8  sion  shall  be used for the approved expenses of the program as defined

  9  by the commissioner.

 10    g. Notwithstanding any other provision of law  to  the  contrary,  the

 11  attendance  or  enrollment  of eligible students attending a reading for

 12  results program shall be excluded in determining aid pursuant to section

 13  thirty-six hundred two of this article.

 14    § 34. Section 3650-c of the education law, as amended by section 71 of

 15  part A of chapter 436 of the  laws  of  1997,  is  amended  to  read  as

 16  follows:

 17    § 3650-c. Accident report data base. The commissioner, in consultation

 18  with  the  commissioner of motor vehicles, shall establish an electronic

 19  data file containing accident reports relating to school buses and inci-

 20  dents of neglect relating to school bus drivers and  school  transporta-

 21  tion  officials  in dealing with students including, but not limited to,

 22  leaving students unattended on the bus, discharging students contrary to

 23  regulations and traffic infractions.

 24    § 35. Subdivision 6 of section 4402 of the education law,  as  amended

 25  by  section  52 of part L of chapter 405 of the laws of 1999, is amended

 26  to read as follows:

 27    6. Notwithstanding any other law, rule or regulation to the  contrary,

 28  the  board  of  education of a city school district with a population of

                                        45                         12332-02-0

  1  one hundred twenty-five thousand or more inhabitants shall be  permitted

  2  to  establish  maximum  class  sizes  for  special  classes  for certain

  3  students with disabilities in accordance with  the  provisions  of  this

  4  subdivision. For the purpose of obtaining relief from any adverse fiscal

  5  impact  from under-utilization of special education resources due to low

  6  student attendance in  special  education  classes  at  the  middle  and

  7  secondary level as determined by the commissioner, such boards of educa-

  8  tion  shall, during the school years nineteen hundred ninety-five--nine-

  9  ty-six through Õnineteen hundred ninety-nine--two thousandå two thousand

 10  one--two thousand two, be authorized to increase class sizes in  special

 11  classes  containing  students  with  disabilities  whose  age ranges are

 12  equivalent to those of students  in  middle  and  secondary  schools  as

 13  defined  by  the  commissioner for purposes of this section by up to but

 14  not to exceed one and two tenths times the applicable maximum class size

 15  specified in regulations of the commissioner rounded up to  the  nearest

 16  whole  number,  provided  that  in a city school district having a popu-

 17  lation of one million or more, classes that have a maximum class size of

 18  fifteen may be increased by no more than one student and  provided  that

 19  the  projected average class size shall not exceed the maximum specified

 20  in the applicable regulation, provided  that  such  authorization  shall

 21  terminate on June thirtieth, two thousand two.  Such authorization shall

 22  be granted upon filing of a notice by such a board of education with the

 23  commissioner  stating the board's intention to increase such class sizes

 24  and a certification that the board will conduct a  study  of  attendance

 25  problems  at  the secondary level and will implement a corrective action

 26  plan to increase the rate of attendance of students in such  classes  to

 27  at  least  the  rate for students attending regular education classes in

 28  secondary schools of the district. Such corrective action plan shall  be

                                        46                         12332-02-0

  1  submitted  for  approval by the commissioner by a date during the school

  2  year in which such board increases class sizes as provided  pursuant  to

  3  this  subdivision  to  be  prescribed by the commissioner. Upon at least

  4  thirty  days  notice  to the board of education, after conclusion of the

  5  school year in which such board increases class sizes as provided pursu-

  6  ant to this subdivision, the commissioner shall be authorized to  termi-

  7  nate  such  authorization  upon  a  finding that the board has failed to

  8  develop or implement an approved corrective action plan.

  9    § 36. Section 4406 of the education law is amended  by  adding  a  new

 10  subdivision 6 to read as follows:

 11    6.  Notwithstanding  any  other  provision  of law to the contrary, no

 12  payments shall be made by the commissioner pursuant to this  section  on

 13  or  after June thirtieth, two thousand one based on a claim for services

 14  rendered, provided however, that no payment shall be barred  or  reduced

 15  where  such payment is required as a result of a court order or judgment

 16  issued on or after July first, two thousand one or a final audit.

 17    § 37. Subdivision 3 of section 4408 of the education law,  as  amended

 18  by  section  53 of part L of chapter 405 of the laws of 1999, is amended

 19  to read as follows:

 20    3. Payment schedule.  ÕFor aid payable in the nineteen  hundred  nine-

 21  ty-nine--two  thousand school year, moneyså Moneys appropriated annually

 22  to the department from the general fund - local assistance account under

 23  the elementary, middle and secondary  education  program  for  July  and

 24  August  programs  for  students  with  disabilities,  shall  be  used as

 25  follows: (i) for remaining base year and prior school years obligations,

 26  (ii) for the purposes of subdivision four of this  section  for  schools

 27  operated  under  articles eighty-seven and eighty-eight of this chapter,

 28  and (iii) notwithstanding any inconsistent provisions of  this  chapter,

                                        47                         12332-02-0

  1  for payments made pursuant to this section for current school year obli-

  2  gations,  provided, however, that such payments shall not exceed seventy

  3  percent of the state aid due for the sum of  the  approved  tuition  and

  4  maintenance  rates  and  transportation  expense  provided  for  herein;

  5  provided, however, that payment of eligible claims shall be  payable  in

  6  the order that such claims have been approved for payment by the commis-

  7  sioner,  but  in no case shall a single payee draw down more than forty-

  8  five percent of the appropriation provided  for  the  purposes  of  this

  9  section,  and  provided  further  that  no  claim shall be set aside for

 10  insufficiency of funds to make a complete payment, but shall be eligible

 11  for a partial payment in one year and shall  retain  its  priority  date

 12  status for appropriations provided for this section in future years.

 13    §  38. Subdivision 6 of section 4408 of the education law, as added by

 14  chapter 82 of the laws of 1995, is amended to read as follows:

 15    6. Notwithstanding any other provision of law  to  the  contrary,  for

 16  aids  payable  pursuant to this section for the nineteen hundred ninety-

 17  eight--ninety-nine and earlier school years no payments shall be made by

 18  the commissioner pursuant to this section on or after July first,  nine-

 19  teen  hundred  ninety-six  based  on  a claim submitted later than three

 20  years after the end of the school year in which services  were  rendered

 21  and,  for aids payable pursuant to this section for the nineteen hundred

 22  ninety-nine--two thousand school year, no payment shall be made  by  the

 23  commissioner  pursuant to this section on or after July first, two thou-

 24  sand based on a claim submitted later than two years after  the  end  of

 25  the  school  year  in which services were rendered, and for aids payable

 26  pursuant to this section for the two thousand--two thousand  one  school

 27  year and thereafter, no payment shall be made by the commissioner pursu-

 28  ant  to  this  section  on  or after July first, two thousand based on a

                                        48                         12332-02-0

  1  claim submitted later than one year after the end of the school year  in

  2  which  services  were rendered provided however that no payment shall be

  3  barred or reduced where such payment is required as a result of a  court

  4  order or judgment or a final audit.

  5    §  39.  Subparagraph  (iii) of paragraph a of subdivision 9 of section

  6  4410 of the education law, as amended by section 53-a of part L of chap-

  7  ter 405 of the laws of 1999, is amended to read as follows:

  8    (iii) Commencing July first, nineteen hundred ninety-six, a moratorium

  9  on the approval of any  new  or  expanded  programs  in  settings  which

 10  include  only  preschool  children  with disabilities is established for

 11  five years. Exceptions shall be made for cases in which school districts

 12  document a critical need for a new or  expanded  program  in  a  setting

 13  which  includes  only  preschool children with disabilities, to meet the

 14  projected demand for  services  for  preschool  children  in  the  least

 15  restrictive  environment.  Applications for new or expanded programs may

 16  be made directly to the state  education  department.    Nothing  herein

 17  shall  prohibit  the  commissioner  from approving the modification of a

 18  full-day program into half-day sessions.

 19    Commencing July Õ1, 1999å  first,  nineteen  hundred  ninety-nine  the

 20  department  shall  only approve any new or expanded programs in settings

 21  which include only preschool children with disabilities, if  the  appli-

 22  cant  can  document  a  critical need for a new or expanded program in a

 23  setting which includes only preschool children with disabilities to meet

 24  the projected demand for services for preschool children  in  the  least

 25  restrictive environment. If the department determines that approval will

 26  not be granted, it must notify the applicant, in writing, of its reasons

 27  for  not  granting  such approval. The department shall establish guide-

 28  lines, within Õ90å ninety days of the effective  date  of  this  section

                                        49                         12332-02-0

  1  which  shall  state  the criteria used to determine if the applicant has

  2  demonstrated such a critical  need.  The  department  is  authorized  to

  3  consult  with  the  local school district and the municipality to verify

  4  any data submitted.

  5    On  or before December Õ1, 2000å first, two thousand, the commissioner

  6  Õof educationå shall submit a report to the board of regents, the major-

  7  ity leader of the senate, the speaker of the assembly and governor eval-

  8  uating the impact of such moratorium on the  availability  of  preschool

  9  special  education  services.  The report shall include: (i) information

 10  regarding the number of applications for new programs and program expan-

 11  sions and the disposition of those  applications  by  the  commissioner;

 12  (ii)  an assessment of the projected need for additional classes serving

 13  only disabled children and those serving disabled  children  with  their

 14  non-disabled  peers  and  in  other  less restrictive settings; (iii) an

 15  assessment of the projected need for additional programs due to  program

 16  closings  in the region, number of children receiving early intervention

 17  services and existing waiting lists; (iv) an assessment of the  distance

 18  that children must be transported to receive preschool special education

 19  services; (v) an evaluation of the programmatic performance and cost-ef-

 20  fectiveness of existing programs; (vi) recommendations regarding ways in

 21  which  improved quality and cost-effectiveness could be achieved through

 22  the selective expansion of effective programs and/or the curtailment  of

 23  less  effective  programs;  and Õ(vi)å (vii) an assessment of the avail-

 24  ability and effectiveness of approved  programs  providing  services  to

 25  preschool children with autism.

 26    §  40.  Subparagraph (iii) of paragraph d of subdivision 10 of section

 27  4410 of the education law, as amended by chapter  705  of  the  laws  of

 28  1992, is amended to read as follows:

                                        50                         12332-02-0

  1    (iii)  On  or  after July first, nineteen hundred ninety, and annually

  2  thereafter until June thirtieth, two thousand one, municipalities  shall

  3  be  eligible  for reimbursement for administrative costs incurred during

  4  the preceding year of fifty dollars for each  eligible  preschool  child

  5  served  in  such year pursuant to this section.  On or after July first,

  6  two thousand one,  and  annually  thereafter,  municipalities  shall  be

  7  eligible  for reimbursement for administrative costs incurred during the

  8  preceding year of seventy-five dollars for each eligible preschool child

  9  served in such year pursuant to this section.  Each  municipality  shall

 10  submit  a claim in a form prescribed by the commissioner. Upon approval,

 11  reimbursement shall be made  by  the  commissioner  from  appropriations

 12  available  therefor.  Such  reimbursement  shall  be  made  in the first

 13  instance from any federal funds designated under federal law  for  local

 14  use,  as determined by the commissioner, that are available after satis-

 15  fying the provisions of subparagraph  (i)  of  this  paragraph.  To  the

 16  extent  that such federal funds are not sufficient or available to reim-

 17  burse a municipality for such costs, reimbursement shall  be  made  with

 18  state funds.

 19    §  41.  Subdivision 11 of section 4410 of the education law is amended

 20  by adding a new paragraph d to read as follows:

 21    d. Except as otherwise provided in this paragraph, in the school  year

 22  two  thousand  two--two  thousand three and thereafter, school districts

 23  identified as having rates of declassification of preschool children  in

 24  the prior school year that are significantly below the statewide average

 25  shall be responsible for reimbursement of the state in the amount of ten

 26  percent  of  the  approved costs of each preschool child residing in the

 27  school district. Any school district having a declassification rate more

 28  than twenty-five percent below the  statewide  average  declassification

                                        51                         12332-02-0

  1  rate, as determined by the commissioner, shall be identified as having a

  2  declassification  rate significantly below the statewide average, except

  3  that any school district having less than ten preschool children  resid-

  4  ing  in  the  school  district shall be exempt from such identification.

  5  Upon certification by the commissioner  that  a  school  district  is  a

  6  school  district  having a declassification rate significantly below the

  7  statewide average, the comptroller shall be  authorized  to  deduct  the

  8  amount  of reimbursement from any state funds due the school district on

  9  or after April first of the school year in which such approved costs are

 10  paid by the municipality in the first  instance.    Notwithstanding  any

 11  other  provision  of  law to the contrary, the commissioner shall adjust

 12  the state reimbursement payable to the municipality by an  amount  equal

 13  to  forty  and  five-tenths percent of the reimbursement received from a

 14  school district having a rate of  declassification  significantly  below

 15  the  statewide average, provided, however, that such adjustment shall be

 16  reduced by an amount equal to the product  of  four  and  five  one-hun-

 17  dredths  percent and any federal participation, pursuant to title XIX of

 18  the social security act, in special education programs provided pursuant

 19  to this section.

 20    § 42. Subdivision 13 of section 4410 of the education law  is  amended

 21  by adding a new paragraph d to read as follows:

 22    d.  The  commissioner  shall  collect  data on the number of preschool

 23  students with disabilities served by classification or category of disa-

 24  bility in the prior school year and the declassification  rate  of  each

 25  school  district  in  the prior school year, and shall annually submit a

 26  report of such data to the director of the budget, and the chairs of the

 27  assembly ways and means and senate finance committees by March fifteenth

 28  of each year, commencing March fifteenth, two thousand one.

                                        52                         12332-02-0

  1    § 43. The education law is amended by adding a new section  4410-b  to

  2  read as follows:

  3    §  4410-b. Use of certain federal funds. 1. Definitions.  For purposes

  4  of this section:

  5    a. "Approved preschool special education program" shall mean a  public

  6  or  private  agency  which  has  been  approved by the commissioner as a

  7  provider of special education programs or services to preschool students

  8  with disabilities pursuant to subdivision  nine  of  section  forty-four

  9  hundred  ten  of this article or pursuant to article eighty-five of this

 10  chapter.

 11    b. "Base year" shall mean the school year next  preceding  the  school

 12  year in which funds are sub-allocated pursuant to this section.

 13    c.  "IEP  team" means a committee on special education, a subcommittee

 14  on special education, a committee on preschool special  education  or  a

 15  subcommittee on preschool special education.

 16    d. "Public or private agency" shall mean an approved preschool special

 17  education  program,  or  a  state-supported school operating pursuant to

 18  article eighty-five of this chapter, or an approved private non-residen-

 19  tial or residential school that provides special  services  or  programs

 20  pursuant  to  subdivision  two of section forty-four hundred one of this

 21  article.  Such term shall not include an  individual  providing  related

 22  services  only  to  preschool  students  with  disabilities  pursuant to

 23  section forty-four hundred ten of this article. Such term shall  include

 24  a  board of cooperative educational services only to the extent it is an

 25  approved  preschool  special  education  program,  and  only  for  those

 26  students  provided  special  education  programs or services pursuant to

 27  section forty-four hundred ten of this article.

                                        53                         12332-02-0

  1    2. Preschool  grants  for  children  with  disabilities.  Each  school

  2  district  receiving  an  allocation  of  funds  pursuant  to section six

  3  hundred nineteen of the individuals with disabilities education act  for

  4  the nineteen hundred ninety-nine--two thousand school year or any subse-

  5  quent  school year shall sub-allocate such funds in accordance with this

  6  subdivision to other  public  and  private  agencies  providing  special

  7  education  services  to  students  ages three to five who were placed in

  8  such agency by the school district's IEP  team.    Such  sub-allocations

  9  shall  be  made on a per capita basis, based upon the number of students

 10  three to five years of age who were placed in such agency by the  school

 11  district's IEP team and are served by the public or private agency as of

 12  December  first  of  the  base  year,  as  reported to the commissioner.

 13  Payments of such sub-allocation shall be made in the same proportion  as

 14  such  funds  are paid to the school district by the state, within thirty

 15  days after:

 16    (i) the school district receives any  portion  of  its  allocation  of

 17  funds  for  the current year pursuant to section six hundred nineteen of

 18  the individuals with disabilities education act; or

 19    (ii) the school district receives an application for a  sub-allocation

 20  by a public or private agency, or, for the nineteen hundred ninety-nine-

 21  -two thousand school year only, the school district receives notice from

 22  the  commissioner that such an application for a sub-allocation has been

 23  filed with the commissioner; whichever occurs later.

 24    3. Federal flow-through funds. Each school district receiving an allo-

 25  cation of funds pursuant to section six hundred eleven of  the  individ-

 26  uals  with  disabilities  education act for the nineteen hundred ninety-

 27  nine--two thousand school year  or  any  subsequent  school  year  shall

 28  sub-allocate  such  funds  in  accordance with this subdivision to other

                                        54                         12332-02-0

  1  public and private agencies  providing  special  education  services  to

  2  students  ages three to twenty-one who were placed in such agency by the

  3  school district's IEP team. Such sub-allocations shall be made on a  per

  4  capita  basis,  based  upon  the  number of students three to twenty-one

  5  years of age who were placed in such agency by the school district's IEP

  6  team and were served by the public or  private  agency  as  of  December

  7  first  of  the  base year, as reported to the commissioner.  Payments of

  8  such sub-allocation shall be made in the same proportion as  such  funds

  9  are paid to the school district by the state within thirty days after:

 10    (i)  the  school  district  receives  any portion of its allocation of

 11  funds for the current year pursuant to section six hundred eleven of the

 12  individuals with disabilities education act; or

 13    (ii) the school district receives an application for a  sub-allocation

 14  by a public or private agency, or, for the nineteen hundred ninety-nine-

 15  -two thousand school year only, the school district receives notice from

 16  the  commissioner that such an application for a sub-allocation has been

 17  filed with the commissioner; whichever occurs later.

 18    4. Charter schools. Notwithstanding the provisions of subdivisions two

 19  and three of this section, any sub-allocation of funds received pursuant

 20  to sections six hundred eleven and six hundred nineteen of the  individ-

 21  uals  with  disabilities  education act shall be made in accordance with

 22  section twenty-eight hundred fifty-six of this  chapter  and  the  regu-

 23  lations of the commissioner implementing such section.

 24    §  44. Paragraph (a) of subdivision 7 of section 6206 of the education

 25  law, as amended by chapter 344 of the laws of 1995, is amended  to  read

 26  as follows:

 27    (a)  The  board  of  trustees  shall establish positions, departments,

 28  divisions and faculties; appoint and in accordance with  the  provisions

                                        55                         12332-02-0

  1  of  law  fix  salaries  of instructional and non-instructional employees

  2  therein; establish and conduct courses and curricula;  prescribe  condi-

  3  tions of student admission, attendance and discharge; and shall have the

  4  power  to  determine  in its discretion whether tuition shall be charged

  5  and to regulate tuition charges, and  other  instructional  and  non-in-

  6  structional  fees and other fees and charges at the educational units of

  7  the city university.  The  trustees  shall  not  impose  a  differential

  8  tuition  charge  based  upon  need  or  income. All students enrolled in

  9  undergraduate programs leading to like degrees at  the  senior  colleges

 10  shall  be  charged  a  uniform  rate of tuition, except for differential

 11  tuition rates based on state residency. The  trustees  shall  not  adopt

 12  changes  in tuition charges prior to the enactment of the annual budget.

 13  The board of trustees may accept as partial reimbursement for the educa-

 14  tion of veterans of the armed forces of the United States who are other-

 15  wise qualified such sums as may be authorized by federal legislation  to

 16  be  paid  for such education. The board of trustees may conduct on a fee

 17  basis extension courses and courses for adult education  appropriate  to

 18  the  field  of  higher education. In all courses and courses of study it

 19  may, in its discretion, require students  to  pay  library,  laboratory,

 20  locker,  breakage and other instructional and non-instructional fees and

 21  meet the cost of books and consumable supplies. In addition to the fore-

 22  going fees and charges, the board of trustees  may  impose  and  collect

 23  fees and charges for student government and other student activities and

 24  receive and expend them as agent or trustee.

 25    §  45.  The vehicle and traffic law is amended by adding a new section

 26  1229-e to read as follows:

 27    § 1229-e. Exiting of school bus by driver. (1) No person  operating  a

 28  school  bus,  as  defined in paragraph (a) of subdivision one of section

                                        56                         12332-02-0

  1  five hundred nine-a of this chapter, shall exit or be  absent  from  the

  2  interior of the school bus while any passengers remain on the bus unless

  3  extenuating circumstances occur. Prior to exiting the interior of such a

  4  bus,  every  such driver shall examine the entire interior of the bus to

  5  determine whether any passengers remain thereon.

  6    (2) If after an examination conducted pursuant to subdivision  one  of

  7  this se