S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7237
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 18, 2019
                                ___________
 
 Introduced  by  M. of A. RYAN -- read once and referred to the Committee
   on Education
 
 AN ACT to amend the education law, in relation to the appointment of  an
   independent receiver upon the closing of a charter school
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The education law is amended by adding a new  section  2858
 to read as follows:
   §  2858.  APPOINTMENT  OF  INDEPENDENT RECEIVER. 1. A SCHOOL DISTRICT,
 UPON RECEIVING NOTICE FROM A CHARTER SCHOOL  WITHIN  ITS  DISTRICT  THAT
 SUCH  CHARTER  SCHOOL  IS  DISSOLVING,  TERMINATING,  OR  CLOSING, SHALL
 APPOINT AN INDEPENDENT RECEIVER, SUBJECT TO THE APPROVAL OF THE  COMMIS-
 SIONER,  TO  PERFORM  FINANCIAL  AUDITS  AND  FACILITATE THE TRANSFER OF
 PUBLIC FUNDS FROM SUCH  CHARTER  SCHOOL  TO  THE  SCHOOL  DISTRICT.  THE
 RECEIVER  MAY  BE  A  NON-PROFIT  ENTITY, ANOTHER SCHOOL DISTRICT, OR AN
 INDIVIDUAL. IF THE SCHOOL  DISTRICT  FAILS  TO  APPOINT  AN  INDEPENDENT
 RECEIVER  THAT  MEETS  THE  COMMISSIONER'S APPROVAL WITHIN SIXTY DAYS OF
 SUCH DETERMINATION, THE COMMISSIONER SHALL APPOINT THE RECEIVER.
   2. THE RECEIVER SHALL BE AUTHORIZED TO MANAGE AND OPERATE THE  CHARTER
 SCHOOL  AND  SHALL  HAVE  THE POWER TO SUPERSEDE ANY DECISION, POLICY OR
 REGULATION OF THE PLANS, CO-LOCATION  DECISIONS  AND  TRANSPORTATION  OF
 STUDENTS.  A  SCHOOL UNDER RECEIVERSHIP SHALL OPERATE IN ACCORDANCE WITH
 LAWS REGULATING PUBLIC SCHOOLS, EXCEPT AS SUCH PROVISIONS  MAY  CONFLICT
 WITH THIS SECTION.
   3.  THE COMMISSIONER SHALL CONTRACT WITH THE RECEIVER, AND THE COMPEN-
 SATION AND OTHER COSTS OF THE RECEIVER  APPOINTED  BY  THE  COMMISSIONER
 SHALL  BE  PAID  FROM  A STATE APPROPRIATION FOR SUCH PURPOSE, OR BY THE
 SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER, PROVIDED THAT  COSTS
 SHALL  BE  PAID BY THE SCHOOL DISTRICT ONLY IF THERE IS AN OPEN ADMINIS-
 TRATIVE STAFFING LINE AVAILABLE FOR THE RECEIVER, AND THE RECEIVER  WILL
 BE  TAKING  ON  THE RESPONSIBILITIES OF SUCH OPEN LINE.  NOTWITHSTANDING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10811-01-9

 A. 7237                             2
 
 ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE RECEIVER AND ANY OF  ITS
 EMPLOYEES  PROVIDING  SERVICES  IN THE RECEIVERSHIP SHALL BE ENTITLED TO
 DEFENSE AND INDEMNIFICATION BY THE SCHOOL DISTRICT TO THE SAME EXTENT AS
 A SCHOOL DISTRICT EMPLOYEE. THE RECEIVER'S CONTRACT MAY BE TERMINATED BY
 THE COMMISSIONER FOR A VIOLATION OF LAW, THE COMMISSIONER'S REGULATIONS,
 OR FOR NEGLECT OF DUTY.
   §  2. Subdivision 1 of section 2854 of the education law is amended by
 adding a new paragraph (c-1) to read as follows:
   (C-1) A CHARTER SCHOOL SHALL, WITHIN A REASONABLE TIME AFTER  LEARNING
 OF  ITS  PENDING TERMINATION, DISSOLUTION, OR CLOSURE, NOTIFY THE SCHOOL
 DISTRICT WITHIN WHICH THE CHARTER SCHOOL IS LOCATED OF SUCH TERMINATION,
 DISSOLUTION, OR DISCLOSURE FOR PURPOSES OF COMPLYING WITH SECTION  TWEN-
 TY-EIGHT HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7237--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 18, 2019
                                ___________
 
 Introduced  by  M. of A. RYAN -- read once and referred to the Committee
   on Education -- recommitted to the Committee on Education  in  accord-
   ance  with  Assembly  Rule  3,  sec.  2  -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT to amend the education law, in relation to the appointment of an
   independent fiduciary upon the dissolution of a charter school
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  2855 of the education law is amended by adding
 three new subdivisions 2-a, 2-b and 2-c to read as follows:
   2-A. (A) WITHIN THIRTY DAYS OF A FINAL DECISION BY   A CHARTER  ENTITY
 TO  REVOKE,  TO NOT RENEW, OR TO ACKNOWLEDGE THE EXPIRATION OR SURRENDER
 OF A CHARTER, THE COMMISSIONER SHALL APPOINT AN INDEPENDENT FIDUCIARY TO
 DEVELOP AND IMPLEMENT THE  DISSOLUTION  PLAN  OF  SUCH  CHARTER  SCHOOL,
 INCLUDING THE DISTRIBUTION OF ASSETS PURSUANT TO PARAGRAPH (T) OF SUBDI-
 VISION  TWO  OF  SECTION TWENTY-EIGHT HUNDRED FIFTY-ONE OF THIS ARTICLE,
 AND SHALL NOTIFY THE CLOSING CHARTER SCHOOL AND THE SCHOOL  DISTRICT  OF
 LOCATION  FOR THE CHARTER SCHOOL IN WRITING OF THE APPOINTED INDEPENDENT
 FIDUCIARY  RESPONSIBLE  FOR  OVERSEEING  THE  SCHOOL'S  DISSOLUTION  AND
 CLOSURE PROCESS.
   (B)  THE  INDEPENDENT  FIDUCIARY  MAY BE A NON-PROFIT ENTITY, BOARD OF
 COOPERATIVE EDUCATIONAL SERVICES (BOCES), A SCHOOL DISTRICT  OTHER  THAN
 THE  SCHOOL  DISTRICT  OF  LOCATION  FOR  THE  CHARTER  SCHOOL, A SCHOOL
 DISTRICT OF RESIDENCE FOR PUPILS OF SUCH CHARTER SCHOOL, OR AN  INDIVID-
 UAL.
   (C)  THE INDEPENDENT FIDUCIARY SHALL BE COMPENSATED AND REIMBURSED FOR
 REASONABLE AND NECESSARY EXPENSES INCURRED AS DETERMINED BY THE  COMMIS-
 SIONER. SUCH COMPENSATION AND REIMBURSEMENT SHALL BE PAID BY THE CHARTER
 SCHOOL. THE APPOINTMENT OF AN INDEPENDENT FIDUCIARY MAY BE TERMINATED BY
 THE  COMMISSIONER  FOR  A  VIOLATION  OF LAW OR THE COMMISSIONER'S REGU-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10811-04-0

 A. 7237--A                          2
 
 LATIONS OR FOR BREACH OF CONTRACT OR NEGLECT OF DUTY.  IN THE EVENT THAT
 AN INDEPENDENT FIDUCIARY'S APPOINTMENT IS TERMINATED BY THE  COMMISSION-
 ER,  A  REPLACEMENT  INDEPENDENT  FIDUCIARY  SHALL  BE  APPOINTED BY THE
 COMMISSIONER AS SOON AS PRACTICABLE FOLLOWING THE EFFECTIVE DATE OF SUCH
 TERMINATION.
   2-B.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
 INDEPENDENT FIDUCIARY SHALL  HAVE  THE  POWER  TO  REVIEW  ALL  EXISTING
 DISBURSEMENTS  AND  TO  REVIEW, RECOMMEND, AND APPROVE ALL NEW CONTRACTS
 AND DISBURSEMENTS OF THE CHARTER SCHOOL SUBSEQUENT TO THE  DATE  OF  THE
 FIDUCIARY'S  APPOINTMENT,  THE  AUTHORITY TO PREPARE AND FILE A PETITION
 FOR DISSOLUTION ON BEHALF OF THE CHARTER SCHOOL'S BOARD OF TRUSTEES, AND
 MAY SUPERSEDE ANY DECISION, POLICY OR REGULATION OF THE  CHARTER  SCHOOL
 THAT  IN  THE  SOLE JUDGMENT OF THE INDEPENDENT FIDUCIARY CONFLICTS WITH
 THE SCHOOL DISSOLUTION PLAN OR IS NOT IN THE BEST  FISCAL  INTERESTS  OF
 THE  SCHOOL DISTRICTS TO WHICH THE REMAINING FUNDS WILL BE PAID PURSUANT
 TO PARAGRAPH (T) OF SUBDIVISION  TWO  OF  SECTION  TWENTY-EIGHT  HUNDRED
 FIFTY-ONE  OF  THIS  ARTICLE.    THE INDEPENDENT FIDUCIARY SHALL, WITHIN
 SIXTY DAYS FOLLOWING THE  FORMAL  DISSOLUTION  OF  THE  CHARTER  SCHOOL,
 SUBMIT  A COMPREHENSIVE REPORT TO THE COMMISSIONER INCLUDING INFORMATION
 PERTAINING TO THE DISPOSITION OF ASSETS PURSUANT TO SECTION TWENTY-EIGHT
 HUNDRED FIFTY-ONE OF THIS ARTICLE.
   2-C. IT SHALL BE THE DUTY OF THE CHARTER SCHOOL TRUSTEES  AND  MANAGE-
 MENT TO FULLY COOPERATE WITH THE INDEPENDENT FIDUCIARY.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.