S 8255: Renames the New York state musical instrument revolving fund as the New York state music grant fund; broadens the use of such funds to be available as grants to not-for-profit symphony orchestras and/or other not-for-profit musical entities incorporated in the state and organized for the purpose of the presentation of performing arts and education in the performing arts for the benefit of the public and which have been approved pursuant to guidelines established by the council.

  
  STATE OF NEW YORK ________________________________________________________________________ 8255 2025-2026 Regular Sessions  IN SENATE May 27, 2025 ___________ Introduced by Sen. SERRANO -- (at request of the NYS Council on The Arts) -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to the New York state musical instrument revolving fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 97-v of the state finance law, as added by chapter 2 851 of the laws of 1983, subdivision 3 as amended by chapter 83 of the 3 laws of 1995, is amended to read as follows: 4 § 97-v. New York state [musical instrument revolving] music grant 5 fund. 1. There is hereby established in the custody of the state comp- 6 troller, a special fund to be known as the "New York state [musical 7 instrument revolving] music grant fund". 8 2. The fund shall consist of all monies appropriated for its purpose, 9 all monies transferred to such fund pursuant to law and all monies 10 required by the provisions of this section or any other law to be paid 11 into or credited to this fund, including all monies received by the fund 12 or donated to it. The total of monies deposited as a result of appropri- 13 ations from state funds into this fund shall not exceed the sum of five 14 hundred thousand dollars. Monies in the fund shall be kept separate and 15 shall not be commingled with any other monies otherwise appropriated or 16 received except as hereby provided. 17 3. Monies of the fund, when allocated, shall be available to the New 18 York state council on the arts for the purpose of providing assistance, 19 excluding administrative costs, for [the loan, lease and purchase of 20 musical instruments and other related property and equipment, as herein 21 provided, by] grants to not-for-profit symphony orchestras and/or other 22 not-for-profit musical entities incorporated in the state and organized 23 for the purpose of the presentation of performing arts for the benefit 24 of the public and which have been approved pursuant to guidelines estab- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09945-01-5 
 S. 8255 2 1 lished by the council. Such monies shall also be available for adminis- 2 trative costs of the council pursuant to approval by the director of the 3 budget. [Notwithstanding any other inconsistent provisions of this chap- 4 ter, should the council determine that there is a compelling need for 5 the loan, lease or purchase of property or equipment other than musical 6 instruments by not-for-profit symphony orchestras and/or other not-for- 7 profit musical entities incorporated in the state and organized for the 8 purpose of the presentation of performing arts for the benefit of the 9 public, and upon approval of the director of the budget, the council may 10 assist such organization in acquiring such equipment in accordance with 11 guidelines established by the council. The council shall contract with 12 one or more not-for-profit entities which shall distribute such monies, 13 however, in no case shall monies of the fund be distributed nor shall a 14 contract to distribute such monies be approved unless the fund shall 15 have sufficient monies to effectuate all such approved distributions and 16 contracts. 17 Purchases, leases and loans of musical instruments and other equipment 18 shall not be approved or effected if such purchases, leases or loans are 19 eligible for financing from any other state assistance program.] 20 4. [The state council on the arts shall establish guidelines necessary 21 to administer the fund. Guidelines shall include, but not be limited to: 22 qualifications and conditions for assistance, which may require public 23 service performances, terms of lease or installment sale payments and 24 finance charges on installment sales at rates of interest which, 25 notwithstanding any other provision of law, shall not be less than three 26 per cent per annum nor more than ten per cent per annum, provisions for 27 insurance of the instrument or other equipment, provisions for necessary 28 security agreement arrangements, and any other terms and conditions the 29 council may require as necessary to properly effectuate the provisions 30 of this section. 31 5. The not-for-profit entity of entities with whom the state council 32 on the arts has contracted pursuant to subdivision three of this section 33 shall enter into contractual arrangements with applicants approved by 34 the council. All contracts must be approved by the state council on the 35 arts and the comptroller prior to the distribution of any monies there- 36 under. Such contracts shall assure that the not-for-profit entity or 37 entities retain title to the instrument or equipment until the 38 provisions and intent of this section are satisfied. 39 6. Notwithstanding any other provisions of law, should a default in 40 payment of monies for the purchase or lease of an instrument or other 41 equipment occur, the council shall so notify the comptroller and the 42 attorney general who shall take such steps as may be necessary. The 43 not-for-profit entity or entities, after such notification is made, 44 shall take steps to effect repossession regardless of whether any note, 45 memorandum, instrument or other writing has been recorded or regardless 46 of whether any other person has notice of such possessory rights to the 47 instrument or equipment. Any contract between the not-for-profit agency 48 or agencies and a not-for-profit symphony orchestra or other musical 49 entity authorized by this article, shall assure the right and provide 50 guarantees for such repossession. Subsequent to the taking of possession 51 of the instrument or equipment, the comptroller or not-for-profit agency 52 or agencies may offer the same for sale at public auction to the highest 53 bidder pursuant to guidelines established by the comptroller. 54 7. The comptroller is authorized to deduct the difference between the 55 purchaser's or lessee's outstanding obligation at the time of the 56 auction provided for in subdivision five of this section, and the amount 
 S. 8255 3 1 realized from that auction, after deductions for all necessary and prop- 2 er costs of the auction are made, from any other grant or other assist- 3 ance approved by the council on the arts for that purchaser. The differ- 4 ence deducted by the comptroller and the net amount realized from the 5 auction shall be deposited in the New York state musical instrument 6 revolving fund. 7 8.] Nothing contained herein shall prevent the council from receiving 8 grants, gifts or bequests for the purposes of the fund as defined in 9 this section and depositing them into the fund according to law. 10 [9. The state council on the arts shall provide by September first of 11 each year, to the governor, the temporary president of the senate, the 12 speaker of the assembly, the chairman of the senate finance committee 13 and the chairman of the assembly ways and means committee, a report 14 containing guidelines and amendments established by the state council on 15 the arts and a complete financial statement including, but not limited 16 to, monies allocated, collected, transferred or otherwise paid or cred- 17 ited to the fund. A projected schedule of disbursements, receipts and 18 needs of the fund for the next fiscal year shall be included in each 19 report. In addition, any amendments to the guidelines shall be provided 20 to the above listed individuals within thirty days of their establish- 21 ment by the state council on the arts. 22 10.] 5. No monies shall be payable from this fund, except on the audit 23 and warrant of the comptroller on vouchers certified and submitted by 24 the [chairman of the] state council on the arts. 25 § 2. This act shall take effect immediately.