Bill Text: NY S04933 | 2019-2020 | General Assembly | Introduced
Bill Title: Requires the appointment of an independent receiver upon the closing of a charter school to facilitate the transfer of public funds back to the appropriate school district.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO EDUCATION [S04933 Detail]
Download: New_York-2019-S04933-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4933 2019-2020 Regular Sessions IN SENATE March 29, 2019 ___________ Introduced by Sen. LIU -- 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 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: 1 Section 1. The education law is amended by adding a new section 2858 2 to read as follows: 3 § 2858. Appointment of independent receiver. 1. A school district, 4 upon receiving notice from a charter school within its district that 5 such charter school is dissolving, terminating, or closing, shall 6 appoint an independent receiver, subject to the approval of the commis- 7 sioner, to perform financial audits and facilitate the transfer of 8 public funds from such charter school to the school district. The 9 receiver may be a non-profit entity, another school district, or an 10 individual. If the school district fails to appoint an independent 11 receiver that meets the commissioner's approval within sixty days of 12 such determination, the commissioner shall appoint the receiver. 13 2. The receiver shall be authorized to manage and operate the charter 14 school and shall have the power to supersede any decision, policy or 15 regulation of the plans, co-location decisions and transportation of 16 students. A school under receivership shall operate in accordance with 17 laws regulating public schools, except as such provisions may conflict 18 with this section. 19 3. The commissioner shall contract with the receiver, and the compen- 20 sation and other costs of the receiver appointed by the commissioner 21 shall be paid from a state appropriation for such purpose, or by the 22 school district, as determined by the commissioner, provided that costs 23 shall be paid by the school district only if there is an open adminis- 24 trative staffing line available for the receiver, and the receiver will 25 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. LBD10811-01-9S. 4933 2 1 any other provision of law to the contrary, the receiver and any of its 2 employees providing services in the receivership shall be entitled to 3 defense and indemnification by the school district to the same extent as 4 a school district employee. The receiver's contract may be terminated by 5 the commissioner for a violation of law, the commissioner's regulations, 6 or for neglect of duty. 7 § 2. Subdivision 1 of section 2854 of the education law is amended by 8 adding a new paragraph (c-1) to read as follows: 9 (c-1) A charter school shall, within a reasonable time after learning 10 of its pending termination, dissolution, or closure, notify the school 11 district within which the charter school is located of such termination, 12 dissolution, or disclosure for purposes of complying with section twen- 13 ty-eight hundred fifty-eight of this article. 14 § 3. This act shall take effect on the sixtieth day after it shall 15 have become a law. Effective immediately, the addition, amendment and/or 16 repeal of any rule or regulation necessary for the implementation of 17 this act on its effective date are authorized to be made and completed 18 on or before such effective date.