NY State Senate Bill 2021-S7338

Senate Bill S7338

2021-2022 Legislative Session

Provides for the dissolution of union free school district number eight of the town of Canaan in the county of Columbia, makes technical corrections; repealer

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 23, 2022	referred to higher education delivered to assembly passed senate
May 16, 2022	advanced to third reading
May 11, 2022	2nd report cal.
May 10, 2022	1st report cal.1169
Jan 05, 2022	referred to education
Aug 20, 2021	referred to rules

Votes

- May 23, 2022 - Floor Vote
  S7338
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 23, 2022
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      excused (2)
      
      Brouk
      
      Sanders Jr.
  May 3, 2022 - Education Committee Vote
  S7338
  
  13
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Education Committee Vote: May 3, 2022
      
      aye (13)
      
      Addabbo Jr.
      
      Brooks
      
      Griffo
      
      Jackson
      
      Liu
      
      Mannion
      
      Mayer
      
      Reichlin-Melnick
      
      Ryan
      
      Stavisky
      
      Stec
      
      Tedisco
      
      Weik
      
      aye wr (1)
      
      Oberacker
      
      excused (1)
      
      Brouk

2021-S7338 (ACTIVE) - Details

Current Committee:: Assembly Higher Education
Law Section:: Education
Laws Affected:: Rpld Chap 486 of 1964; amd §1, Chap 566 of 1967

2021-S7338 (ACTIVE) - Summary

Provides for the dissolution of union free school district number eight of the town of Canaan in the county of Columbia; makes technical corrections relating thereto; provides for the payment of the debts and obligations and the handling of records of such union free school district.

2021-S7338 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7338

SPONSOR: JORDAN
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to dissolve union free school district
number 8, a special act school district known as the Berkshire Union
Free School District in the town of Canaan in Columbia County (the
school district). It provides direction for the orderly payment of debts
and winding down of district business, and for the transfer of all

records of the school district to the sole supervisory district of Rens-
selaer, Columbia, Greene counties.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill repeals Chapter 486 of the laws of 1964, as
amended, relating to establishing union free school district number 8 in
the town of Canaan in the county of Columbia.

Sections 2 and 3 amend Section 1 of Chapter 566 of the laws of 1967, as
amended by Chapter 446 of the laws of 2014 relating to providing for the
apportionment of funds to certain special school districts, eliminating
the school district from the list of school districts entitled to the
apportionment of public moneys.

Sections 4 and 5 provide for the payment of outstanding debts and claims
for the closedown and dissolution of the district. During the period in
which there is no duly constituted board of education for the school
district, the board of cooperative educational services of the sole
supervisory district of Rensselaer, Columbia, Greene Counties (Questar
III BOCES) is authorized to take actions necessary to complete the
closedown and dissolution of the district provided, however, that the
BOCES shall not use any of its own funds to pay any debts, claims and
liabilities of such union free school district.  Acting in its capacity
of assisting the special act district to close, the BOCES and its offi-
cers and employees shall be entitled to defense and indemnification of
the state pursuant to section 18 of the Public Officers Law.

Section 6 directs that the records of the school district shall be
deemed to be records of the sole supervisory district of Rensselaer,
Columbia, Greene Counties for purposes of their management and disposi-
tion and for local government records management grants in accordance
with the Arts and Cultural Affairs Law.

Section 7 of the bill sets forth the effective date.

 
JUSTIFICATION:
The union free school district number 8 in the town of Canaan, County of
Columbia, a special act district, ceased its operations as of June 30,
2020. The district has had no students since that time. Prior to
closure, the district submitted a closure plan to the Commissioner of
Education pursuant to Education Law section 4405(4)(j).

While Education Law section 4405(4)(j) provides for submission of a plan
to wind up district business, it does not dissolve the legal entity
created by special act of the legislature. Further, it does not provide
direction on disposition of district records or provide any guidance in
the event that the special act district board of education disbands
before all actions to wind up business, such as identifying and paying
outstanding debts, are completed. Unlike other special act districts
that have ceased operations and sought special legislation to dissolve
the districts, before disbanding, the school district leadership adopted
a closure plan that was approved by the State Education Department and
created a closure committee to work diligently and closely with the
BOCES and the State Education Department to wind up the district's busi-
ness by identifying accounts receivable and district debts, and paying
debts as allowed by remaining district funds. Costs incurred by the
BOCES in carrying out this work have been and would continue to be reim-
bursed by the special act district and the counties and districts that
placed students at the special act district prior to its closure. Such
costs would not be passed on to other component districts within the
BOCES. Final payments have been made to the NYSLRS and the TRS for the
district. Records of the special act district have been transferred to
the BOCES for maintenance and disposition, in accordance with the
closure plan.

The committee's work is now substantially completed. As the special act
district was created by act of the New York State Legislature, legisla-
tive action is required to dissolve it and delete references to it as a
recipient of state funding. This act would properly complete the
"closure" of the district, removing any uncertainty as to its status for
counties and school districts that may have placed students at the
district, and as to the State Education Department's oversight role.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPACT:

Minimal to none. The district has already identified and paid out possi-
ble debts.

 
EFFECTIVE DATE:
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.

2021-S7338 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7338
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              August 20, 2021
                                ___________
 
 Introduced  by  Sen.  JORDAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13075-01-1

 S. 7338                             2
 
 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;  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

 S. 7338                             3

 necessary to complete the closedown and dissolution of the district that
 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  close  down  costs determined pursuant to this section and subpara-
 graph (i) of paragraph j of subdivision 4 of section 4405 of the  educa-
 tion  law.    The Questar III BOCES shall be reimbursed the actual docu-
 mented 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  close  down  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
 close down 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

 S. 7338                             4
 
 the special act school district in the 2019-2020 school  year.  Notwith-
 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. 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.

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