Bill Text: NY S04182 | 2013-2014 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reforms aspects of local government and school accountability; requires notice of reserve funds; requires resolution for reserve.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-06-04 - PRINT NUMBER 4182B [S04182 Detail]
Download: New_York-2013-S04182-Amended.html
Bill Title: Reforms aspects of local government and school accountability; requires notice of reserve funds; requires resolution for reserve.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-06-04 - PRINT NUMBER 4182B [S04182 Detail]
Download: New_York-2013-S04182-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4182--A
2013-2014 Regular Sessions
I N S E N A T E
March 13, 2013
___________
Introduced by Sen. FLANAGAN -- (at request of the State Comptroller) --
read twice and ordered printed, and when printed to be committed to
the Committee on Education -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the education law, in relation to requiring notice of
reserve funds; and in relation to reserves funded by resolution; and
to amend the general municipal law, in relation to tax stabilization
reserves, reserves for bonded indebtedness, and authorizing school
districts and boards of cooperative educational services to establish
retirement contribution reserve funds for the purposes of the New York
state teachers' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 5 of section 1608 of the education law, as
2 amended by section 5 of part A of chapter 436 of the laws of 1997, is
3 amended to read as follows:
4 5. The trustee or board of trustees shall append to the statement of
5 estimated expenditures a detailed statement of the total compensation to
6 be paid to the superintendent of schools, and any assistant or associate
7 superintendents of schools in the ensuing school year, including a
8 delineation of the salary, annualized cost of benefits and any in-kind
9 or other form of remuneration, AND A SCHEDULE OF RESERVE FUNDS, SETTING
10 FORTH THE NAME OF EACH RESERVE FUND, A DESCRIPTION OF ITS PURPOSE, THE
11 BALANCE AS OF THE CLOSE OF THIRD QUARTER OF THE CURRENT SCHOOL DISTRICT
12 FISCAL YEAR AND A BRIEF STATEMENT EXPLAINING ANY PLANS FOR THE USE OF
13 EACH SUCH RESERVE FUND FOR THE ENSUING FISCAL YEAR. The trustees shall
14 also append a list of all other school administrators and supervisors,
15 if any, whose annual salary will be eighty-five thousand dollars or more
16 in the ensuing school year, with the title of their positions and annual
17 salary identified; provided however, that the commissioner may adjust
18 such salary level to reflect increases in administrative salaries after
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03379-03-3
S. 4182--A 2
1 June thirtieth, nineteen hundred ninety-eight. The trustees shall submit
2 a copy of such list and statement, in a form prescribed by the commis-
3 sioner, of compensation to the commissioner within five days after their
4 preparation. The commissioner shall compile such data, together with the
5 data submitted pursuant to subdivision three of section seventeen
6 hundred sixteen of this chapter, into a single statewide compilation,
7 which shall be made available to the governor, the legislature, and
8 other interested parties upon request.
9 S 2. Subdivision 5 of section 1716 of the education law, as amended by
10 section 7 of part A of chapter 436 of the laws of 1997, is amended to
11 read as follows:
12 5. The board of education shall append to the statement of estimated
13 expenditures a detailed statement of the total compensation to be paid
14 to the superintendent of schools, and any assistant or associate super-
15 intendents of schools in the ensuing school year, including a deline-
16 ation of the salary, annualized cost of benefits and any in-kind or
17 other form of remuneration, AND A SCHEDULE OF RESERVE FUNDS, SETTING
18 FORTH THE NAME OF EACH RESERVE FUND, A DESCRIPTION OF ITS PURPOSE, THE
19 BALANCE AS OF THE CLOSE OF THIRD QUARTER OF THE CURRENT SCHOOL DISTRICT
20 FISCAL YEAR AND A BRIEF STATEMENT EXPLAINING ANY PLANS FOR THE USE OF
21 EACH SUCH RESERVE FUND FOR THE ENSUING FISCAL YEAR. The board shall
22 also append a list of all other school administrators and supervisors,
23 if any, whose annual salary will be eighty-five thousand dollars or more
24 in the ensuing school year, with the title of their positions and annual
25 salary identified; provided however, that the commissioner may adjust
26 such salary level to reflect increases in administrative salaries after
27 June thirtieth, nineteen hundred ninety-eight. The board of education
28 shall submit a copy of such list and statement, in a form prescribed by
29 the commissioner, of compensation to the commissioner within five days
30 after their preparation. The commissioner shall compile such data,
31 together with the data submitted pursuant to subdivision four of section
32 sixteen hundred eight of this chapter, into a single statewide compila-
33 tion, which shall be made available to the governor, the legislature,
34 and other interested parties upon request.
35 S 3. The education law is amended by adding a new section 3653 to read
36 as follows:
37 S 3653. RESERVES FUNDED BY RESOLUTION. IN ADDITION TO ANY OTHER
38 REQUIREMENTS, NO MONIES SHALL BE PAID OR TRANSFERRED INTO ANY RESERVE
39 FUND, ESTABLISHED PURSUANT TO THIS CHAPTER OR ANY OTHER CHAPTER OF LAW,
40 FOR THE PURPOSE OF INCREASING THE FUNDING OF SUCH RESERVE FUND, UNLESS
41 EXPRESSLY AUTHORIZED BY A RESOLUTION OF THE BOARD OF EDUCATION OR TRUS-
42 TEES OF A SCHOOL DISTRICT.
43 S 4. Section 6-e of the general municipal law, as added by chapter 655
44 of the laws of 1992, paragraph m of subdivision 1 as added, paragraph n
45 of subdivision 1 as relettered, subdivision 3 and paragraph d of subdi-
46 vision 4 as amended by chapter 528 of the laws of 2000, and subdivision
47 5 as amended by chapter 140 of the laws of 1996, is amended to read as
48 follows:
49 S 6-e. Contingency and tax stabilization reserve fund for municipal
50 corporations. 1. As used in this section:
51 a. "Annual budget" means the annual budget or estimate, as finally
52 adopted, of a municipal corporation which is required by law to adopt an
53 annual budget or estimate of the expenditures to be made for a fiscal
54 year for the general support or for the expenses of the government of
55 such municipal corporation during such fiscal year.
S. 4182--A 3
1 b. "Base year" means the most recent fiscal year for which an annual
2 report has been filed with the state comptroller pursuant to section
3 thirty of this chapter.
4 c. "Chief executive officer" means a chief executive officer as
5 defined in paragraph five-a of section 2.00 of the local finance law.
6 d. "Chief fiscal officer" means a chief fiscal officer as defined in
7 paragraph five of section 2.00 of the local finance law.
8 e. "Eligible portion of the annual budget" means:
9 (1) in the case of a contingency and tax stabilization reserve fund
10 established for a county, city, village, SCHOOL DISTRICT or fire
11 district, the general fund portion of the annual budget;
12 (2) in the case of a contingency and tax stabilization reserve fund
13 established for a town, the town-wide general fund and highway fund
14 portions of the annual budget; and
15 (3) in the case of a contingency and tax stabilization reserve fund
16 established for the part of a town outside any villages, the general
17 fund and highway fund portions of the annual budget for such part of the
18 town.
19 f. "Estimated revenue" means revenue from a specific source which is
20 expected to be received during a fiscal year and which is included in
21 the annual budget as finally adopted for that fiscal year.
22 g. "Governing board" means a governing board as defined in section two
23 of this chapter and, in the case of a fire district, shall mean the
24 board of fire commissioners AND IN THE CASE OF A SCHOOL DISTRICT, SHALL
25 MEAN THE BOARD OF EDUCATION OR BOARD OF TRUSTEES, OR FOR A COMMON SCHOOL
26 DISTRICT HAVING ONE TRUSTEE, SUCH TRUSTEE.
27 h. "Municipal corporation" means a municipal corporation as defined in
28 section two of this chapter and shall also include a fire district AND
29 SCHOOL DISTRICT.
30 i. "Public emergency" means an epidemic, conflagration, riot, storm,
31 flood or other sudden, unforeseen or unexpected occurrence or condition
32 which requires the immediate expenditure of moneys to protect the public
33 health, safety or welfare of the inhabitants of the municipal corpo-
34 ration.
35 j. "Tentative budget" means the tentative budget prepared pursuant to
36 section three hundred fifty-four of the county law, section one hundred
37 six of the town law or section 5-504 of the village law, the [statement
38 of expenditures] PROPOSED BUDGET prepared pursuant to section one
39 hundred eighty-one of the town law, THE STATEMENT OF ESTIMATED EXPENDI-
40 TURES PREPARED PURSUANT TO SECTION SIXTEEN HUNDRED EIGHT OR SEVENTEEN
41 HUNDRED SIXTEEN OF THE EDUCATION LAW or similar document prepared pursu-
42 ant to general, special or local law.
43 k. "Unanticipated expenditure" means an expenditure for a specific
44 purpose for which there is no or insufficient appropriation or which
45 will cause an appropriation to be insufficient that is necessitated by a
46 change in federal or state laws, rules or regulations, a court order,
47 judgement or decree, a public emergency, or an industry-wide price, rate
48 or premium increase, which takes effect or occurs after final adoption
49 of the annual budget and which could not have been reasonably antic-
50 ipated prior to final adoption of the annual budget.
51 l. "Unanticipated revenue loss" means estimated revenue which is
52 rendered unreceivable because of a change in federal or state laws,
53 rules or regulations, a court order, judgement or decree, or other
54 circumstance, which takes effect or occurs after final adoption of the
55 annual budget and which could not have been reasonably anticipated prior
56 to final adoption of the annual budget.
S. 4182--A 4
1 m. "Unappropriated unreserved fund balance" means the difference
2 between the total assets for a fund and the total liabilities, deferred
3 revenues, encumbered appropriations, amounts appropriated for the ensu-
4 ing fiscal year's budget, and amounts reserved for stated purposes
5 pursuant to law, including reserve funds established pursuant to [the
6 general municipal law] THIS CHAPTER OR THE EDUCATION LAW for the fund,
7 as determined through application of the system of accounts prescribed
8 by the state comptroller pursuant to section thirty-six of this chapter.
9 n. "Voting strength" means the aggregate number of votes which all the
10 members of the governing board are entitled to cast.
11 2. The governing board of any municipal corporation OTHER THAN A
12 SCHOOL DISTRICT, by resolution subject to a permissive referendum, may
13 establish a contingency and tax stabilization reserve fund for the
14 municipal corporation and, in the case of a town, also for the part of
15 the town outside any villages. Such permissive referendum shall be
16 governed by:
17 a. in the case of a county, sections one hundred one through one
18 hundred three of the county law;
19 b. in the case of a city, sections twenty-four through twenty-six of
20 the municipal home rule law;
21 c. in the case of a town or the part of a town outside any villages,
22 article seven of the town law;
23 d. in the case of a village, article nine of the village law; and
24 e. in the case of a fire district, subdivision four of section six-g
25 of this article.
26 2-A. A SCHOOL DISTRICT MAY ESTABLISH A CONTINGENCY AND TAX STABILIZA-
27 TION RESERVE FUND BY A RESOLUTION OF ITS GOVERNING BOARD.
28 3. There may be paid into the contingency and tax stabilization
29 reserve fund such amounts as may be provided therefor by budgetary
30 appropriation, unappropriated unreserved fund balance in the eligible
31 portion of the annual budget, and such revenues as are not required by
32 law to be paid into any other fund or account; provided, however, that
33 no amount may be appropriated for payment into a contingency and tax
34 stabilization reserve fund which would cause the balance of the fund to
35 exceed ten percent of the eligible portion of the annual budget for the
36 fiscal year for which the appropriation would be made.
37 4. a. The moneys in a contingency and tax stabilization reserve fund
38 may be expended only pursuant to an appropriation for a purpose author-
39 ized by this subdivision. Except as provided in paragraph e of this
40 subdivision, such an appropriation shall be made only upon the recommen-
41 dation of the chief executive officer and the adoption of a resolution
42 appropriating the recommended amount by at least two-thirds of the
43 voting strength of the governing board.
44 b. The moneys in a contingency and tax stabilization reserve fund
45 ESTABLISHED BY A MUNICIPAL CORPORATION OTHER THAN A SCHOOL DISTRICT may
46 be used to finance an unanticipated revenue loss chargeable to the
47 eligible portion of the annual budget, subject to the following limita-
48 tions:
49 (1) the maximum amount of moneys in the fund that may be used to
50 finance an unanticipated revenue loss shall equal either the amount of
51 the revenue actually received for the base year or the amount of the
52 estimated revenue for the current fiscal year, whichever is less, minus
53 the amount of the revenue actually received for the current fiscal year;
54 and
S. 4182--A 5
1 (2) the moneys in the fund may be used only to finance that portion of
2 the unanticipated revenue loss which, as a matter of law, cannot be
3 financed with amounts available in any other account or fund.
4 c. The moneys in a contingency and tax stabilization reserve fund
5 ESTABLISHED BY A MUNICIPAL CORPORATION OTHER THAN A SCHOOL DISTRICT may
6 be used to finance an unanticipated expenditure chargeable to the eligi-
7 ble portion of the annual budget, subject to the following limitations:
8 (1) the maximum amount of moneys in the fund that may be used to
9 finance an unanticipated expenditure shall equal the sum of the amount
10 of the unanticipated expenditure and the amount appropriated for that
11 purpose for the current fiscal year minus either the amount appropriated
12 for that purpose for the current fiscal year or the actual expenditure
13 for the same purpose in the base year, whichever is greater; and
14 (2) the moneys in the fund may be used only to finance that portion of
15 an unanticipated expenditure which, as a matter of law, cannot be
16 financed with amounts available in any other account or fund.
17 d. The moneys in the contingency and tax stabilization reserve fund
18 may be used to lessen or prevent any projected increase in excess of two
19 and one-half percent in the amount of the real property tax levy needed
20 to finance the eligible portion of the annual budget for the next
21 succeeding fiscal year. The maximum amount of moneys in the fund that
22 may be used for this purpose shall equal the difference between the
23 projected amount of such real property tax levy and one hundred two and
24 one-half percent of the amount of the real property tax levy needed to
25 finance the eligible portion of the annual budget for the current fiscal
26 year.
27 e. When preparing the tentative budget of a municipal corporation, if
28 the current balance of a contingency and tax stabilization reserve fund,
29 as shown by the statement of the chief fiscal officer required by subdi-
30 vision six of this section, exceeds ten percent of the eligible portion
31 of the annual budget for the current fiscal year, such excess shall be
32 used to reduce the amount of real property taxes needed to finance the
33 eligible portion of the annual budget for the next succeeding fiscal
34 year. IN ADDITION, IN THE CASE OF A SCHOOL DISTRICT, ANY MONIES DEPOSIT-
35 ED TO SUCH RESERVE FUND WHICH ARE NOT EXPENDED TO LESSEN OR PREVENT ANY
36 PROJECTED INCREASE IN EXCESS OF TWO AND ONE-HALF PERCENT IN THE AMOUNT
37 OF THE REAL PROPERTY TAX LEVY NEEDED TO FINANCE THE ELIGIBLE PORTION OF
38 THE ANNUAL BUDGET FOR ANY OF THE THREE FISCAL YEARS SUCCEEDING THE
39 FISCAL YEAR IN WHICH THE MONIES ARE SO DEPOSITED SHALL BE RETURNED TO
40 THE GENERAL FUND ON OR BEFORE THE FIRST DAY OF THE FOURTH FISCAL YEAR
41 FOLLOWING THE DEPOSIT OF SUCH MONIES TO SUCH RESERVE FUND.
42 5. The moneys in the contingency and tax stabilization reserve fund
43 shall be deposited in one or more of the banks or trust companies desig-
44 nated, in the manner provided by law, as depositories of the funds of
45 such municipal corporation. The governing board, or the chief fiscal
46 officer having custody of such money of such municipal corporation, if
47 the governing board shall delegate such duty to him, may invest the
48 moneys in such fund in obligations specified in section eleven of this
49 article. Any interest earned or capital gain realized on the money so
50 deposited or invested shall accrue to and become part of such fund.
51 6. The chief fiscal officer shall account for the contingency and tax
52 stabilization reserve fund separate and apart from all other funds of
53 the municipal corporation. Such accounting shall show: the source, date
54 and amount of each sum paid into the fund; the interest earned by such
55 fund; capital gains or losses resulting from the sale of investments of
56 the fund; the order, source thereof, date and amount of each appropri-
S. 4182--A 6
1 ation from this fund; the assets of the fund, indicating cash balance
2 and a schedule of investments. Not later than sixty days after the start
3 of each fiscal year and at such times as may be required by the govern-
4 ing board, the chief fiscal officer shall furnish to the governing board
5 a detailed report of the operation and condition of the fund during the
6 preceding fiscal year which shall include a statement of receipts and
7 disbursements, and a statement of the balance of the fund as of the last
8 day of such preceding fiscal year and such other dates as may be speci-
9 fied by the governing board. Not later than thirty days prior to the
10 last date provided by law for the filing of the tentative budget, the
11 chief fiscal officer shall furnish to the officer or body responsible
12 for preparing the tentative budget a statement of the current balance of
13 the fund.
14 7. The members of the governing board are hereby declared trustees of
15 the moneys in the contingency and tax stabilization reserve fund and
16 shall be subject to all duties and responsibilities imposed by law on
17 trustees, and such duties and responsibilities may be enforced by the
18 municipal corporation or by any board, commission, agency, officer or
19 taxpayer thereof.
20 8. Any officer of a municipal corporation shall be guilty of a misde-
21 meanor if he or she willfully and knowingly causes the municipal corpo-
22 ration to:
23 a. Appropriate moneys from the contingency and tax stabilization
24 reserve fund for any purpose not authorized by this section.
25 b. Expend any money from the contingency and tax stabilization reserve
26 fund for a purpose other than that for which it was appropriated.
27 The provisions of this subdivision shall be considered to be in addition
28 to any other penalties provided by law.
29 S 5. Section 6-h of the general municipal law, as added by chapter 742
30 of the laws of 1945, the section heading and subdivisions 2, 5, 6 and 8
31 as amended by chapter 592 of the laws of 1957, subdivision 1 as amended
32 by chapter 755 of the laws of 1965, subdivision 9 as amended by chapter
33 140 of the laws of 1996 and subdivision 11 as amended by chapter 424 of
34 the laws of 2001, is amended to read as follows:
35 S 6-h. Reserve fund for payment of bonded indebtedness in counties,
36 cities, villages, towns, SCHOOL DISTRICTS and fire districts. 1. As used
37 in this section, the term "governing board," in so far as it is used in
38 reference to a county, shall mean the board of supervisors thereof; in
39 so far as it is used in reference to a city, shall mean the "local
40 legislative body" thereof, as that term is defined in subdivision seven
41 of section two of the municipal home rule law, as amended from time to
42 time; in so far as it is used in reference to a village, shall mean the
43 board of trustees thereof; in so far as it is used in reference to a
44 town, shall mean the town board thereof; in so far as it is used in
45 reference to a fire district, shall mean the board of fire
46 commissioners; IN SO FAR AS IT IS USED IN REFERENCE TO A SCHOOL
47 DISTRICT, SHALL MEAN THE BOARD OF EDUCATION OR BOARD OF TRUSTEES, OR FOR
48 A COMMON SCHOOL DISTRICT HAVING ONE TRUSTEE, SUCH TRUSTEE.
49 2. The governing board of any county, city, village, town, SCHOOL
50 DISTRICT or fire district may by resolution adopted by a majority vote
51 of its governing body establish a reserve fund for the payment of its
52 bonded indebtedness as herein described, provided, however, that such
53 debt reserve fund shall not be established for, or moneys therein used
54 to pay, any obligations payable in the first instance from assessments,
55 or from taxes levied upon an area in such county, city, village, town,
S. 4182--A 7
1 SCHOOL DISTRICT or fire district smaller than the area of such county,
2 city, village, town, SCHOOL DISTRICT or fire district.
3 3. Such fund may be established for the payment of one or of several
4 issues of bonds of such [municipality] MUNICIPAL CORPORATION, SCHOOL
5 DISTRICT OR FIRE DISTRICT or the purchase of the same.
6 4. There may be paid into such fund:
7 a. Such an amount as may be provided therefor by budgetary appropri-
8 ation.
9 b. Such revenues as are not otherwise appropriated or required by law
10 to be paid into any other fund or account.
11 5. An expenditure from such a reserve fund may only be made by appro-
12 priation pursuant to a resolution of the governing board of the munici-
13 pal corporation, SCHOOL DISTRICT or fire district establishing the same
14 and only for the payment of the principal and interest on bonds issued
15 by such municipal corporation, SCHOOL DISTRICT or fire district and
16 forming a part of an issue having a maximum maturity of not less than
17 five years; or for the purchase of bonds of such municipal corporation,
18 SCHOOL DISTRICT or fire district forming a part of an issue having a
19 maximum maturity of not less than five years at a price not to exceed
20 the par value thereof and accrued interest to the date of delivery of
21 such bonds to such municipal corporation, SCHOOL DISTRICT or fire
22 district, provided, however, that if any such bonds were issued subject
23 to the right of such municipal corporation, SCHOOL DISTRICT or fire
24 district to redeem the same prior to the maturity date thereof then such
25 purchase may be made for the redemption of such bonds at the price and
26 on the terms stated in such bonds or in the proceeding authorizing the
27 same as the case may be.
28 Where provision has been made in the current budget from funds other
29 than a reserve fund for the payment of the principal and interest on
30 bonds or the purchase thereof, no expenditure may be made for the
31 purchase or payment of the same from such a reserve fund during the
32 current fiscal year for which such budget was adopted.
33 All expenditures from such fund as provided in this subdivision may
34 only be made by the chief fiscal officer of the municipal corporation,
35 SCHOOL DISTRICT or fire district establishing the same.
36 Any such bonds so paid, purchased or redeemed and any interest coupons
37 representing unmatured interest attached thereto shall be cancelled and
38 destroyed by the chief fiscal officer of such municipal corporation,
39 SCHOOL DISTRICT or fire district establishing such fund who shall make a
40 notation of such cancellation and destruction in the bond register of
41 such municipal corporation, SCHOOL DISTRICT or fire district. Such nota-
42 tion shall describe each such bond by title, date of issue, number,
43 denomination and date of maturity, and if coupons are attached thereto
44 by number, face value and date of maturity.
45 6. The governing board of a municipal corporation may, subject to a
46 permissive referendum, authorize the transfer of a portion or all of
47 such reserve to a capital reserve fund established pursuant to section
48 six-c of [the general municipal law] THIS ARTICLE.
49 The board of fire commissioners of a fire district may, subject to the
50 approval of the voters at a regular or special election in such
51 district, in the manner provided in section one hundred seventy-nine of
52 the town law, authorize the transfer of a portion or all of such reserve
53 to a capital reserve fund established pursuant to section six-g [hereof]
54 OF THIS ARTICLE.
S. 4182--A 8
1 THE GOVERNING BOARD OF A SCHOOL DISTRICT MAY AUTHORIZE THE TRANSFER OF
2 A PORTION OR ALL OF SUCH RESERVE TO A CAPITAL RESERVE FUND ESTABLISHED
3 PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW.
4 7. The chief fiscal officer shall keep a separate account for each
5 fund established. Such account shall show:
6 a. The date and amount of each sum paid into the fund.
7 b. The interest earned by such fund.
8 c. The capital gains or losses resulting from the sale of investments
9 of the fund.
10 d. The interest or capital gains which have accrued to the fund.
11 e. The amount and date of each withdrawal from the fund.
12 f. The assets of the fund, indicating the cash balance therein and a
13 schedule of the amounts invested. The chief fiscal officer at the termi-
14 nation of each fiscal year shall render a detailed report of the opera-
15 tion and condition of each of such funds to the governing board.
16 8. The members of the governing board are hereby declared trustees of
17 such funds and shall be subject to all the duties and responsibilities
18 imposed by law on trustees, and such duties and responsibilities may be
19 enforced by the county, city, village, town, SCHOOL DISTRICT or fire
20 district, as the case may be, or by any board, commission, agency, offi-
21 cer or taxpayer thereof.
22 9. The moneys in each such fund shall be deposited and secured in the
23 manner provided by section ten of this article. The governing board or
24 the chief fiscal officer of such municipal corporation, SCHOOL DISTRICT
25 or fire district, if the governing board shall delegate such duty to
26 him, may invest the moneys in each such fund in the manner provided in
27 section eleven of this article. Any interest earned or capital gains
28 realized on the moneys so deposited or invested shall accrue to and
29 become a part of each such fund. The separate identity of each such fund
30 shall be maintained whether its assets consist of cash, investments, or
31 both.
32 10. The members of the governing board shall be guilty of a misdemea-
33 nor if they:
34 a. Authorize a withdrawal from a fund for any other purpose except as
35 provided in this section.
36 b. Expend any money withdrawn from a fund for a purpose other than
37 that as provided in this section.
38 11. Notwithstanding the foregoing provisions of this section, in any
39 town which is located wholly or partly within the Adirondack park and
40 has within its boundaries state lands subject to taxation assessed at
41 more than thirty [percentum] PER CENTUM of the total taxable assessed
42 valuation of the town as determined from the assessment rolls of the
43 town, as completed from time to time, a reserve fund for the payment of
44 bonded indebtedness shall not be established on and after May first,
45 nineteen hundred forty-eight, unless the state comptroller, on behalf of
46 the state, shall consent thereto, and, on and after May first, nineteen
47 hundred forty-eight, in any such town no expenditure or transfer from
48 any such fund heretofore or hereafter established shall be made unless
49 the state comptroller, on behalf of the state, shall consent thereto.
50 S 6. Paragraphs b and c of subdivision 1 of section 6-r of the general
51 municipal law, as added by chapter 260 of the laws of 2004, are amended
52 to read as follows:
53 b. "Participating employer" means: (I) a participating employer as
54 defined in subdivision twenty of section two of the retirement and
55 social security law or in subdivision twenty of section three hundred
S. 4182--A 9
1 two of such law, OR (II) AN EMPLOYER AS DEFINED IN SUBDIVISION THREE OF
2 SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW.
3 c. "Retirement contribution" shall mean all or any portion of the
4 amount payable by a municipal corporation to: (I) either the New York
5 state and local employees' retirement system or the New York state and
6 local police and fire retirement system pursuant to section seventeen or
7 three hundred seventeen of the retirement and social security law; OR
8 (II) THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION
9 FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW.
10 S 7. This act shall take effect on the first of July next succeeding
11 the date on which it shall have become a law.
