Qualified School Construction Bonds (QSCB) and Qualified Zone Academy Bonds (QZAB)
NY-ADR
3/30/11 N.Y. St. Reg. EDU-35-10-00019-A
NEW YORK STATE REGISTER
VOLUME XXXIII, ISSUE 13
March 30, 2011
RULE MAKING ACTIVITIES
EDUCATION DEPARTMENT
NOTICE OF ADOPTION
I.D No. EDU-35-10-00019-A
Filing No. 269
Filing Date. Mar. 15, 2011
Effective Date. Mar. 30, 2011
Qualified School Construction Bonds (QSCB) and Qualified Zone Academy Bonds (QZAB)
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of section 155.22 of Title 8 NYCRR.
Statutory authority:
Education Law, sections 101(not subdivided), 207(not subdivided), 305(1) and (2); and 26 USC sections 54E and 54F
Subject:
Qualified School Construction Bonds (QSCB) and Qualified Zone Academy Bonds (QZAB).
Purpose:
To establish requirements for QSCB and to update QZAB provisions.
Text or summary was published
in the September 1, 2010 issue of the Register, I.D. No. EDU-35-10-00019-P.
Final rule as compared with last published rule:
No changes.
Text of rule and any required statements and analyses may be obtained from:
Chris Moore, State Education Department, Office of Counsel, State Education Building Room 148, 89 Washington Avenue, Albany, NY 12234, (518) 473-8296, email: [email protected]
Assessment of Public Comment
Since publication of a Notice of Revised Rule Making in the State Register January 19, 2011, the State Education Department received the following comment:
COMMENT:
Revise the proposed rule to allow Qualified School Construction Bond (QSCB) allocations to be made on the basis of partnerships between school districts and businesses that specialize in the growth of the "green" economy. These types of school/business partnerships can help districts reduce school utility costs (for ex. through solar and wind performance contracts), enhance school safety (for ex. cloud computer 911 security systems) and help grow the electric car economy and reduce unemployment. In addition, they would by their nature limit the number of times a school district could apply for QSCB funds and therefore enable more school districts in the long term to apply for and receive QSCB funding.
DEPARTMENT RESPONSE:
The Department believes it would be inappropriate to revise the proposed rule as suggested. Unlike the Qualified Zone Academy Bond (QZAB) program under 26 USC sections 1397E and 54E, there is no mandate in the federal authorizing statute for the QSCB program (26 USC section 54F) requiring that QSCB funds be awarded in cooperation with a business entity. Furthermore, the purpose of the QSCB funding program is specifically to assist school districts with grant funds to construct, rehabilitate or repair school facilities in order to advance educational achievement. It is inappropriate to attempt to tie the funding to specific industries, such as the solar, wind, other "green" industries, or cloud computing. This would limit the ability of local boards of education to apply for and utilize the funding to best suit the instructional needs of their particular district.
Nevertheless, while the Department declines to revise the proposed rule to provide for QSCB allocations on the basis of partnerships between school districts and "green" industries, there is nothing in the proposed rule that would prevent an applicant from using the allocated funding for improvements that included green concepts in the construction, rehabilitation or repair of a public school facility.
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