New York Codes, Rules and Regulations › Title 8 - EDUCATION DEPARTMENT › Chapter II - Regulations of the Commissioner › Subchapter J - Buildings And Transportation › Part 155 - Educational Facilities › Section 155.22 - Qualified zone academy bonds and qualified school construction bonds

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Qualified zone academy bonds (QZAB).
(1) Purpose. The purpose of this subdivision is to establish procedures, consistent with State and Federal law, for the allocation and issuance of qualified zone academy bonds as authorized by 26 USC sections 1397 E and 54E (26 USC section 1397 E: United States Code, 2006 edition, volume 17; Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402-9328; 2008; 26 USC section 54 E: Public Law 110-343, div. C, title III, section 313[a], 122 Stat. 3765, 3869-3872; Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402-9328; 2008; - available at the Office of Facilities Planning, Education Building Annex, Room 1060, State Education Department, Albany, New York 12234).
(2) Definitions. As used in this subdivision:
(i) Qualified zone academy bond (or QZAB) means a bond, as defined in 26 USC section 1397 E(d) or 54E(a), the proceeds of which can be used for rehabilitating or repairing the public school facility in which a qualified zone academy is established, providing equipment for use at such academy, developing course materials for education to be provided at such academy and/or training teachers and other school personnel in such academy.
(ii) Qualified zone academy means a public school, or academic program within a public school, which is established by and operated under the supervision of an eligible school district and which meets the requirements of 26 USC section 1397 E(d)(4) or 54E(d)(1).
(iii) Qualified contribution means a contribution as defined in 26 USC section 1397 E(d)(2)(B) or 54E(d)(4), made by a private entity to a qualified zone academy.
(iv) Eligible school district means an eligible local education agency, as defined in 26 USC section 1397 E(d)(4)(B) or 54E(d)(2), which meets the requirements of subdivision (d) of this section.
(v) Project or capital construction project means a project:
(a) for a qualified purpose, as defined in 26 USC section 1397 E(d)(5) or 54E(d)(3);
(b) that is financed through qualified zone academy bonds issued pursuant to 26 USC section 1397 E or 54E; and
(c) that has voter authorization or board authorization, as required.
(vi) State limitation amount allocation means the amount of the qualified zone academy bond limitation allocated to the State pursuant to 26 USC section 1397 E(e)(2) or 54E(c)(2).
(3) State responsibilities.
(i) Allocation. The commissioner shall determine annually the respective amounts of the State limitation amount allocation to be allocated to approved qualified zone academies within eligible school districts.
(a) Fifty percent of the State limitation amount allocation shall be allocated to approved qualified zone academies located within the City School District of the City of New York in accordance with the procedures set forth in clause (d) of this subparagraph.
(b) Charter school allocation. Charter schools shall be eligible to receive from the State limitation amount a total allocation amount that is proportionate to the percentage of students enrolled in charter schools, as determined by dividing the total number of students enrolled in charter schools by the total number of students enrolled in grades K-12 in the public schools, and expressing the resulting decimal number as a percentage rounded up to the next whole number, provided that such amount shall not be less than $2 million. Such total allocation amount shall be allocated to approved qualified zone academies located within charter schools in accordance with the procedures set forth in clause (d) of this subparagraph.
(c) The remaining State limitation amount allocation, after allocation of the amounts specified in clauses (a) and (b) of this subparagraph, shall be allocated to approved qualified zone academies located within the remaining school districts in the State in accordance with the procedures set forth in clause (d) of this subparagraph.
(d) Procedures for allocation of State limitation amount.
(1) All applications received from eligible school districts by the date prescribed pursuant to paragraph (4) of this subdivision shall be ranked in order of highest to lowest percentage of students attending the respective qualified zone academy schools or participating in the respective qualified zone academy programs, who are eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act. Charter school applications shall be separately ranked.
(2) Subject to the provisions of clauses (a), (b) and (c) of this subparagraph, the available State limitation amount allocation shall be allocated to approved qualified zone academies in the order of rank, from highest to lowest, as established in subclause (1) of this clause, in an amount equal to the amount to be financed by the QZABs to be issued for each respective project, until such allocation is exhausted.
(3) Eligible school districts that timely apply for but do not receive an allocation for qualified zone academies within their districts because the number of applicants exceeds the amount available from the State limitation amount allocation shall receive priority, in the order in which they are ranked, pursuant to subclause (1) of this clause, with respect to the next available allocation.
(4) Notwithstanding any other provision of this subdivision to the contrary, in the event the commissioner determines that the State limitation amount allocation for any year will not be exhausted because of the failure of eligible school districts receiving an allocation to spend their allocation, the commissioner may adjust the percentages specified in clauses (a), (b) and (c) of this subparagraph as needed to assure that such State allocation is exhausted; provided that school districts whose allocation for the prior year was reallocated pursuant to this clause shall be given priority in the order in which they are ranked pursuant to subclause (1) of this clause in the allocation of any allocated but unspent funds in the current year.
(ii) Capital construction projects involving the repair, renovation or alteration of public school facilities that are approved by the commissioner, and established as qualified zone academies pursuant to the provisions of paragraph (4) of this subdivision, shall be eligible to receive building aid pursuant to the provisions of Education Law section 3602(6).
(iii) The commissioner shall establish annually the database to be used to determine whether a school district qualifies pursuant to 26 USC section 1397 E(d)(4)(A)(iv)(II) or 54E(d)(1)(D)(ii) as meeting the student eligibility rate in school lunch programs established under the National School Lunch Act.
(4) School district responsibilities.
(i) Eligible school districts, in which a qualified zone academy or academies are located, may apply, in a form prescribed and by a date established by the commissioner, for approval to receive an allocation for such qualified zone academy or academies from the State limitation amount allocation. Such application shall include, but is not limited to:
(a) a certification by the school district within which the qualified zone academy or academies are located that the school(s) or academic program(s) meet the requirements for a qualified zone academy pursuant to 26 USC section 1397 E(d)(4) or 54E(d)(1);
(b) a certification by the school district that the bonds to be issued meet the requirements for a qualified zone academy bond pursuant to 26 USC section 1397 E(d)(1) or 54E(a);
(c) a description of the capital construction project(s) to be financed through the issuance of qualified zone academy bonds;
(d) copies of written commitments from private entities to make qualified contributions, as described in 26 USC section 1397 E(d)(2)(B) or 54E, having a present value, as of the date of the issuance of the bond issue, of not less than 10 percent of the proceeds of the issue; and
(e) the written approval of the superintendent of schools and the Board of Education for such bond issuance or, in the case of charter schools, from the chief school officer and the board of trustees.
(ii) Any capital construction project to be financed through the issuance of qualified zone academy bonds shall be submitted for review to the Office of Facilities Planning in the State Education Department.
(iii) Nothing in this regulation shall prevent the use of qualified zone academy bonds for projects that are not capital construction projects, provided that such projects meet all the other requirements of this section, including voter or board authorization, as may be required.