What's happening
This bill requires school districts to appoint independent receivers to manage and audit closing charter schools, ensuring proper fund transfers and oversight.
Why it matters
Ensures Independent Oversight. By requiring an independent receiver (not directly affiliated with the district or charter school) to manage the closure process, the bill aims to prevent conflicts of interest and promote transparency during the sensitive period when a charter school shuts down.
Protects Public Funds and Assets. The receiver’s responsibilities include conducting financial audits and ensuring public funds are properly transferred back to the school district, reducing the risk of mismanagement or loss of taxpayer money.
Provides Operational Continuity and Student Protections. The receiver is granted authority to manage operational decisions, including transportation and co-location, which helps minimize disruption for students and families during the transition period following a charter school closure.
Clarifies Accountability and Legal Protections. The bill specifies who pays for the receiver and establishes that the receiver will have the same legal indemnification as school district employees, clarifying financial and legal responsibilities for all parties involved.
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Who cares
Headline styles
Independent Receiver for Charter Closures
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Referred to education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
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 Assembly, 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 commissioner, 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 compensation 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 administrative 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
S. 4933 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 twenty-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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to the appointment of an independent receiver upon the closing of a charter school
Purpose or general idea of bill
This bill requires that, upon closure of a charter school, an independ- ent receiver be appointed to perform financial audits and to facilitate the return of public funds to the school district.
Justification
When a charter school closes, the charter school is supposed to use its assets to facilitate the closure of the school, and return the remainder back to its school district.
However, there is a lack of transparency in this process, leading to questions such as:
Were the remaining funds properly spent to facilitate the closure of the school? How much of the funding remains? Did the school district receive all of those funds?
This bill would provide transparency throughout the process by having a third party conduct a financial audit of the remaining assets and provide oversight for the closure of the charter school.
Legislative history
New Bill
Fiscal implications
EFFECTIVE DATE: Immediate
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.