AMENDMENT TO THE REGULATIONS OF THE COMMISSIONER OF EDUCATION

Pursuant to Education Law sections 101, 207, 305 and 26 USC

section 1397E.

155.22 Qualified Zone Academy Bonds.

(a) Purpose. The purpose of this section 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 section 1397E.

(b) Definitions. As used in this section:

 

(1) Qualified zone academy bond (or "QZAB") means a bond, as defined in 26 USC section 1397E(d)(4), the proceeds of which can be used for rehabilitating the public school facility in which a qualified zone 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.

(2) 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 districts and which meets the requirements of 26 USC section 1397ED(d)(4).

(3) Qualified contribution means a contribution as defined in 26 USC section 1397E(d)(2)(B), made by a private entity to a qualified zone academy.

(4) Eligible school district means an eligible local education agency, as defined in 26 USC section 1397E(d)(4)(B), which meets the requirements of subdivision (d) of this section.

(5) Transitioned project means a project:

(i) for a qualified purpose, as defined in 26 USC section 1397E(d)(5);

(ii) that is financed through qualified zone academy bonds issued pursuant to1 26 USC section 1397E;

(iii)that has voter authorization or board authorization, as required; and

(iv) that

(6) State limitation amount allocation means the amount of the qualified zone academy bond limitation allocated by the U.S. Secretary of Education to the State pursuant to 26 USC section 1397E(e)(2).

(c) State responsibilities.

(1) 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.

(i) The City School District of the City of New York shall be eligible, to be designated at the city level as custodian for qualified Zone Academy School Programs, to receive 50 percent of the QZAB State limitation amount allocation. Acceptance of these funds commits the New York Board of Education to administering these funds using the same guidelines utilized by the State Education Department or another method as approved by the commissioner.

(a) All applications received from eligible school districts by the date prescribed pursuant to subdivision (d) of this section 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.

(b) The available State limitation amount allocation shall be allocated in the same manner to approved qualified zone academies in the order of rank, from highest to lowest, as established in clause (a) of this subparagraph, until such allocation is exhausted.

(c) 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 with, pursuant to clause (a) of this subparagraph with respect to the next available allocation.

(d) 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 subparagraphs (i) and (ii) of this paragraph 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 clause (a) of this subparagraph in the allocation of any allocated but unspent funds in the current year.

(2) Transitioned projects involving the renovation or alteration of public school facilities that are approved by the commissioner, and established as qualified zone academies pursuant to the provisions of subdivision (d) of this section shall be eligible to receive building aid pursuant to the provisions of Education Law section 3602(6).

(3) The Commissioner shall establish annually the database to be used to determine whether a school district qualifies pursuant to 26 USC section 1397E(d)(4)(A)(iv)(II) as meeting the student eligibility rate in school lunch programs established under the National School Lunch Act.

(d) School district responsibilities.

(1) 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:

(i) 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 1397E(d)(4);

(ii) 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 1397E(d)(1);

(iii)A description of the transition project(s) to be financed through the issuance of qualified zone academy bonds.

(iv) Copies of written commitments from private entities to make qualified contributions, as described in 26 USC section 1397E(d)(2)(B), having a present value, as of the date of the issuance of the bond issue, of now less than 10 percent of the proceeds of the issue; and

(v) The written approval of the superintendent of schools and the Board of Education for such bond issuance.

(i) equipment, including state of the art technology and vocational equipment, for use in such academy;

(ii) technical assistance in developing curriculum or in training teachers to promote appropriate market-driven technology in the classroom;

(iii) services of employees as volunteer mentors;

(iv) internships, field trips or other educational opportunities outside the academy; or

(v) any other property (including cash) or service specified by the local education agency.

(3) Qualified zone academy contributions shall:

(i) be certified as to the 10% percent business

partnership;

(ii) be in compliance with Education Law and this section; and

(iii) have local funds that are required to successfully complete the project allocated in a timely manner or, where applicable, a proposition authorizing the expenditure of funds for such purpose approved by the voters or the board, as required of the school district.

(4) Any transitioned project to be financed through the issuance of qualified zone academy bonds which involve qualified contributions by private entities, other than those set forth in paragraph two of this subdivision, shall be submitted for review to the Office of Facilities Planning in the Education Department. The State Education Department shall be the sole authority regarding the acceptability of proposed contributions under the QZAB program

(5) Nothing in this regulation shall prevent the use of qualified zone academy bonds for projects that have not been contracted, and have been approved by the Commissioner, provided that such projects meet all the other requirements of this section and have voter or board authorization prior to approval.