S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4933
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              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:
 
   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

 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  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.