senate Bill S7264

Amended

Establishes procedures for the orderly closure of a special act school district

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / May / 2014
    • REFERRED TO EDUCATION
  • 29 / May / 2014
    • 1ST REPORT CAL.1035
  • 02 / Jun / 2014
    • AMENDED 7264A
  • 02 / Jun / 2014
    • 2ND REPORT CAL.
  • 03 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 18 / Jun / 2014
    • SUBSTITUTED BY A6715B

Summary

Establishes procedures for the orderly closure of a special act school district.

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Bill Details

Versions:
S7264
S7264A
Legislative Cycle:
2013-2014
Law Section:
Education Law
Laws Affected:
Amd ยงยง4405 & 4403, Ed L

Sponsor Memo

BILL NUMBER:S7264

TITLE OF BILL: An act to amend the education law, in relation to
special act school districts

PURPOSE OR GENERAL IDEA OF BILL: This bill establishes procedures to
close a special act school district.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 requires the board of
education of a special act school district to provide written notice
to the commissioner of education with a plan for closure of the school
and, until such school district meets all financial obligations,
submit financial reports and statements. Section 2 requires special
act school districts to submit as least annually enrollment reports,
budgets and financial statements to the commissioner.

JUSTIFICATION: This bill establishes procedures for the orderly
closure of a special act school district. In recent years two special
act school districts have closed leaving outstanding obligations which
have not and, now, cannot be met. This bill sets out steps that a
board of education of special act school district must follow to close
down its school district including: written notice to the commissioner
of education, a plan for closure including the transfer of students
and detailed list of revenues and expenses. In addition, until the
school district is closed, the board of education of the school
district shall submit to the commissioner financial reports and
statements about tuition, close-down costs and revenues.

This bill also requires a special act school district to provide
information about enrollments, budgets and finances to the State
Education Department. With this information, the commissioner can
monitor the fiscal stability of special act school districts,

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7264

                            I N  S E N A T E

                               May 8, 2014
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Education

AN ACT to amend the education law, in relation  to  special  act  school
  districts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 4 of section  4405  of  the  education  law  is
amended by adding a new paragraph j to read as follows:
  J.  (I)  IF  THE  BOARD  OF EDUCATION OF A SPECIAL ACT SCHOOL DISTRICT
LISTED IN CHAPTER FIVE HUNDRED SIXTY-SIX OF THE LAWS OF NINETEEN HUNDRED
SIXTY-SEVEN, AS AMENDED, SEEKS TO CLOSE A SPECIAL ACT  SCHOOL  DISTRICT,
THE  BOARD OF EDUCATION OF THE SPECIAL ACT SCHOOL DISTRICT SHALL PROVIDE
WRITTEN NOTICE TO THE COMMISSIONER WITH A PLAN FOR CLOSURE OF THE SCHOOL
AT LEAST NINETY DAYS PRIOR TO THE CLOSING DATE. SUCH PLAN SHALL  INCLUDE
PROVISION FOR THE SAFE AND ORDERLY TRANSFER OF EACH STUDENT WITH A DISA-
BILITY  WHO  WAS PUBLICLY PLACED IN THE PROGRAM AND A DETAILED AND ITEM-
IZED LIST OF ESTIMATED EXPENSES NECESSARY TO CLOSE  DOWN THE SCHOOL  AND
A DETAILED AND ITEMIZED LIST OF ANY ESTIMATED REVENUES TO BE RECEIVED.
  (II)  DURING  THE  CLOSE-DOWN PERIOD AND UNTIL ALL NECESSARY FINANCIAL
OBLIGATIONS OF THE SCHOOL DISTRICT HAVE BEEN MET PURSUANT TO THIS  PARA-
GRAPH,  THE  COMMISSIONER  SHALL  REQUIRE  THE BOARD OF EDUCATION OF THE
SCHOOL DISTRICT TO PERIODICALLY SUBMIT, AS REQUIRED BY THE COMMISSIONER,
FINANCIAL REPORTS  AND  FINANCIAL  STATEMENTS,  DETAILING  ANY  TUITION,
AND/OR  CLOSE-DOWN  COSTS  AND  ANY  REVENUES GENERATED. IN APPLYING THE
REIMBURSEMENT METHODOLOGY TO ANY REMAINING TUITION COSTS AND  ANY  OTHER
REASONABLE AND APPROPRIATE EXPENSES NEEDED TO CLOSE-DOWN THE SPECIAL ACT
SCHOOL DISTRICT, THE COMMISSIONER SHALL REJECT ANY CLOSE-DOWN COSTS THAT
ARE UNNECESSARY OR UNREASONABLE TO CLOSE-DOWN THE SCHOOL, WHETHER OR NOT
THE BOARD OF EDUCATION SUBMITS A CLOSE-DOWN PLAN.
  S  2.    Section  4403 of the education law is amended by adding a new
subdivision 20 to read as follows:
  20. (A) TO REQUIRE SPECIAL ACT SCHOOL DISTRICTS LISTED IN CHAPTER FIVE
HUNDRED SIXTY-SIX OF  THE  LAWS  OF  NINETEEN  HUNDRED  SIXTY-SEVEN,  AS
AMENDED,  TO  PROVIDE, ON AN ANNUAL BASIS OR MORE FREQUENTLY, AS NEEDED,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10183-04-4

S. 7264                             2

ENROLLMENT  REPORTS,  INCLUDING  CURRENT  AND   PROJECTED   ENROLLMENTS,
PROPOSED  BUDGETS  AND  ANY FINANCIAL INFORMATION THE COMMISSIONER DEEMS
APPROPRIATE, WHICH SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,  OUTSTANDING
REVENUE  ANTICIPATION  NOTES  AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION
ONE OF SECTION FIFTY-FIVE OF THE STATE  FINANCE  LAW,  BALANCE  OWED  TO
EMPLOYEE  BENEFIT SYSTEMS, OUTSTANDING BONDS, LEASE COSTS, AND ANY OTHER
DEBTS TO MONITOR THE FISCAL STABILITY OF SPECIAL ACT SCHOOL DISTRICTS.
  (B) UPON RECEIVING THE INFORMATION IDENTIFIED IN PARAGRAPH (A) OF THIS
SUBDIVISION, THE DEPARTMENT SHALL DETERMINE IF ANY SPECIAL ACT  DISTRICT
IS  IN  NEED  OF  FINANCIAL GUIDANCE AND ASSISTANCE UPON A COMPREHENSIVE
REVIEW OF SUCH INFORMATION PROVIDED. UPON A DETERMINATION THAT A SPECIAL
ACT DISTRICT IS IN  NEED  OF  FINANCIAL  GUIDANCE  AND  ASSISTANCE,  THE
DEPARTMENT  SHALL,  AS  SOON  AS  PRACTICABLE, PROVIDE THE DISTRICT WITH
SPECIFIC RECOMMENDATIONS TO IMPROVE THE SPECIAL ACT DISTRICT'S FINANCIAL
STANDING IN THE SHORT AND LONG-TERM.
  S 3. This act shall take effect immediately.

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