S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10431--A
 
                           I N  A S S E M B L Y
 
                               May 19, 2022
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Ashby, McDo-
   nald)  --  read once and referred to the Committee on Higher Education
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT  to amend chapter 566 of the laws of 1967, relating to providing
   for  the  apportionment  of  funds  to  certain  special  act   school
   districts,  in  relation to eliminating reference to union free school
   district number eight of the  town  of  Canaan,  Columbia  county;  to
   provide  for the payment of the debts and obligations and the handling
   of records of the union free school district number eight in the  town
   of  Canaan,  Columbia County; and to repeal chapter 486 of the laws of
   1964, relating to establishing union free school district number eight
   of the town of Canaan in the county of Columbia
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Chapter  486 of the laws of 1964 relating to establishing
 union free school district number eight in the town  of  Canaan  in  the
 county of Columbia is REPEALED.
   § 2. Section 1 of chapter 566 of the laws of 1967, relating to provid-
 ing  for the apportionment of funds to certain special school districts,
 as amended by section 6 of chapter 446 of the laws of 2014,  is  amended
 to read as follows:
   Section  1.  Notwithstanding the provisions of section 3602 and 3602-b
 of the education law, and in lieu of any apportionments  to  which  such
 school  districts  might  otherwise  be  entitled under such sections or
 under any other provisions of law,  the  commissioner  of  education  is
 hereby authorized to include the following school districts in the annu-
 al  apportionment  of  public  moneys  and  such  apportionment shall be
 computed in accordance with the provisions of sections  two,  three  and
 four  of this act: union free school district number twenty-seven of the
 town of Dryden, Tompkins county;  [union  free  school  district  number
 eight  of  the  town  of  Canaan,  Columbia  county;]  union free school
 districts numbers ten, eleven and twelve  of  the  town  of  Greenburgh,
 Westchester  county;  union free school districts numbers three and four
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13075-02-2
 A. 10431--A                         2
 
 of the town of Mount Pleasant, Westchester  county;  union  free  school
 district  number  six,  Blythedale,  town of Mount Pleasant, Westchester
 county; and Randolph Children's Home union free school district  of  the
 town  of  Randolph,  Cattaraugus  county;  West  Park  union free school
 district number two,  town  of  Esopus,  Ulster  county;  common  school
 district  number  seven  of  the  town of Oyster Bay, Nassau county; the
 Hopevale union free school district, town of Hamburg, Erie  county;  and
 union  free  school  district  number  three, town of Riverhead, Suffolk
 county.
   § 3. Section 1 of chapter 566 of the laws of 1967, relating to provid-
 ing for the apportionment of funds to certain special school  districts,
 as  amended  by section 7 of chapter 446 of the laws of 2014, is amended
 to read as follows:
   Section 1. Notwithstanding the provisions of section 3602  and  3602-b
 of  the  education  law, and in lieu of any apportionments to which such
 school districts might otherwise be  entitled  under  such  sections  or
 under  any  other  provisions  of  law, the commissioner of education is
 hereby authorized to include the following school districts in the annu-
 al apportionment of  public  moneys  and  such  apportionment  shall  be
 computed  in  accordance  with the provisions of sections two, three and
 four of this act: union free school district number twenty-seven of  the
 town  of  Dryden,  Tompkins  county;  [union free school district number
 eight of the  town  of  Canaan,  Columbia  county;]  union  free  school
 districts  numbers  ten,  eleven  and  twelve of the town of Greenburgh,
 Westchester county; union free school districts numbers three  and  four
 of  the  town  of  Mount Pleasant, Westchester county; union free school
 district number six, Blythedale, town  of  Mount  Pleasant,  Westchester
 county;  and  Randolph Children's Home union free school district of the
 town of Randolph,  Cattaraugus  county;  West  Park  union  free  school
 district  number  two,  town  of  Esopus,  Ulster  county; common school
 district number seven of the town of  Oyster  Bay,  Nassau  county;  and
 union  free  school  district  number  three, town of Riverhead, Suffolk
 county.
   § 4. Any funds remaining in the possession of the  union  free  school
 district  number  eight in the town of Canaan in the county of Columbia,
 after all of its debts and obligations have been  paid,  shall  be  paid
 over  to  each social services district and school district having resi-
 dent children served by the union free school district number  eight  in
 the  town  of  Canaan  in the county of Columbia in the 2019-2020 school
 year in the same proportion as the number of  students  placed  by  each
 such social services district or school district and served by the union
 free school district number eight in the town of Canaan in the county of
 Columbia  in  the  2019-2020  school  year  bears to the total number of
 students served by the union free school district number  eight  in  the
 town  of  Canaan in the county of Columbia in the 2019-2020 school year.
 Though the union free school district number eight in the town of Canaan
 in the county of Columbia be dissolved, the board of cooperative  educa-
 tional  services  of the sole supervisory district of Rensselaer, Colum-
 bia, Greene Counties (Questar III BOCES) shall be authorized to  act  on
 behalf of the school district pursuant to section five of this act.
   §  5.  Notwithstanding  any  other  provision  of law to the contrary,
 during any period in which there is no duly constituted board of  educa-
 tion  of  the  union  free  school  district number eight of the town of
 Canaan, Columbia County, Questar III BOCES shall be authorized  to  take
 any  actions  on  behalf  of the school district that are reasonable and
 necessary to complete the closedown and dissolution of the district that
 A. 10431--A                         3
 
 the board of education would have, including but  not  limited  to,  the
 power  to  enter  into contracts, pay outstanding debts for reimbursable
 costs incurred for closedown of the school district under  this  section
 and  subparagraph (i) of paragraph j of subdivision 4 of section 4405 of
 the education law, provided however that the Questar III BOCES shall not
 pay for outstanding debts using its own funds and shall  not  be  liable
 for  any  outstanding  debt  or claims incurred by the union free school
 district number eight of the town of Canaan, Columbia County. The  Ques-
 tar  III  BOCES may sell school district property, if any, with approval
 of the commissioner, and bill for and receive any reimbursement due  and
 owing  for  tuition  pursuant  to article 81 of the education law or any
 other provision of law for services rendered to students  on  or  before
 the  school district ceased operation on June 30, 2020 and reimbursement
 for closedown costs determined pursuant to this section and subparagraph
 (i) of paragraph j of subdivision 4 of section  4405  of  the  education
 law.  The closedown rate shall reimburse Questar III BOCES for the actu-
 al  documented  cost to the Questar III BOCES of carrying out its duties
 under the provisions of this section and subparagraph (i) of paragraph j
 of subdivision 4 of section 4405 of the education law to  closedown  the
 school district. The Questar III BOCES shall review the business records
 of the school district, including any claims, invoices and bills submit-
 ted  to the school district during any period in which there was no duly
 constituted board of education and shall audit any expenses  or  claims,
 based  on invoices, bills or other documentation, that were not included
 in an audited financial statement or financial reports submitted to  the
 department  by  the  school  district,  to determine if such expenses or
 claims are duplicative of claims previously submitted for  reimbursement
 and,  if  not,  whether  they  are supported by documentation that would
 substantiate a claim  that  the  expense  was  incurred  by  the  school
 district  or  is  otherwise  an outstanding debt of the school district.
 Such audit may be conducted by the claims auditor of the BOCES or,  with
 the  approval of the commissioner, by an independent auditor retained by
 the BOCES. The BOCES shall report to the department any  audited  claims
 that  were  not  included in an audited financial statement or financial
 report,  together  with  the  documentation  supporting   such   claims.
 Reimbursement  for  costs  incurred for closedown of the school district
 shall include only: (i) any allowable costs approved by the commissioner
 that were included in the  audited  financial  statement  and  financial
 reports  submitted  by the school district in conformity with the finan-
 cial reporting requirements; (ii) additional allowable costs incurred in
 the 2019-2020 school year or subsequently during  the  closedown  period
 that  are approved by the commissioner in accordance with the reimbursa-
 ble cost manual in effect for the 2019-2020 school year  and  relate  to
 claims  that  were  audited  by  the  Questar III BOCES pursuant to this
 section and subparagraph (i) of paragraph j of subdivision 4 of  section
 4405 of the education law and are based on supporting documentation that
 would  substantiate  a claim that the expense was incurred by the school
 district and not duplicative of claims previously reimbursed; and  (iii)
 the  actual documented cost to the Questar III BOCES of carrying out its
 duties under the provisions of this  section  and  subparagraph  (i)  of
 paragraph  j  of  subdivision  4 of section 4405 of the education law to
 closedown the school district, as approved by the commissioner based  on
 documentation  that  such costs were necessary to carry out such duties,
 shall be included in a closedown rate payable by each school district or
 social services district responsible for tuition for students  attending
 the  special  act school district in the 2019-2020 school year. Notwith-
 A. 10431--A                         4
 
 standing any other provision of law, rule or regulation to the contrary,
 such closedown rate may be payable in three installments which shall  be
 as  equal  as practicable, over three consecutive years after the close-
 down  rate is established; provided that any reimbursement costs remain-
 ing due to Questar III BOCES for carrying out its administrative  duties
 under  this  act and subparagraph (i) of paragraph j of subdivision 4 of
 section 4405 of the education law may be paid in the first  installment.
 In such capacity, such board of cooperative educational services and its
 officers  and employees shall be entitled to defense and indemnification
 by the state pursuant to section 18 of the public officers law. Services
 provided by the Questar III BOCES under this act and subparagraph (i) of
 paragraph j of subdivision 4 of section 4405 of the education law  shall
 not  result  in  any  additional costs being imposed on component school
 districts, except those costs imposed on  a  component  school  district
 pursuant to a closedown rate calculated under this section.
   §  6.  The  records  of union free school district number eight of the
 town of Canaan in the county of Columbia,  shall  be  forwarded  to  the
 district  superintendent  of schools for the board of cooperative educa-
 tional services for the sole supervisory district of Rensselaer,  Colum-
 bia,   Greene  Counties  for  preservation.  Notwithstanding  any  other
 provision of law to the contrary, such records shall  be  deemed  to  be
 records of the sole supervisory district of Rensselaer, Columbia, Greene
 Counties  for purposes of the management and disposition of such records
 and any local government management grants issued  pursuant  to  section
 57.35 of the arts and cultural affairs law.
   §  7.   The territory comprising the union free school district number
 eight of the town of Canaan, county of Columbia,  shall  revert  to  and
 become  part of the New Lebanon central school district in the county of
 Columbia.
   § 8. This act shall take effect immediately; provided,  however,  that
 the  amendments to section 1 of chapter 566 of the laws of 1967, made by
 section three of this act, shall take effect on the same date and in the
 same manner as section 5 of chapter 213 of the laws of 2011, as amended,
 takes effect.