senate Bill S7264A

Signed By Governor
2013-2014 Legislative Session

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

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Archive: Last Bill Status Via A6715 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Sep 23, 2014 signed chap.362
Sep 11, 2014 delivered to governor
Jun 18, 2014 returned to assembly
passed senate
3rd reading cal.1035
substituted for s7264a
Jun 18, 2014 substituted by a6715b
Jun 03, 2014 advanced to third reading
Jun 02, 2014 2nd report cal.
amended 7264a
May 29, 2014 1st report cal.1035
May 08, 2014 referred to education

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S7264 - Bill Details

See Assembly Version of this Bill:
A6715B
Law Section:
Education Law
Laws Affected:
Amd §§4405 & 4403, Ed L

S7264 - Bill Texts

view summary

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

view 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.

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                    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.

S7264A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6715B
Law Section:
Education Law
Laws Affected:
Amd §§4405 & 4403, Ed L

S7264A (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S7264A

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 full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7264--A
    Cal. No. 1035

                            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  --  reported
  favorably  from  said  committee,  ordered to first report, amended on
  first report, ordered  to  a  second  report  and  ordered  reprinted,
  retaining its place in the order of second report

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 21 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10183-06-4

S. 7264--A                          2

  21. (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,
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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