BILL NUMBER: S523

SPONSOR: MAYER
 
PURPOSE:

This legislation provides that reorganization aid afforded to school
districts upon merger, consolidation, or annexation under Education Law
§ 3602(14) include reimbursement for expenses incurred on behalf of
districts relating to any study required by the State Education Depart-
ment for the purposes of approving a reorganization of the school
district.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 provides that districts be reimbursed for actual expenses
incurred relating to any study required by the department for purposes
of approving a reorganization, which is defined as "any merger, consol-
idation, or annexation eligible for aid" under Education Law § 3602(14)

Section 2 establishes the effective date.

 
JUSTIFICATION:
              

Currently, if two or more school district boards of education agree that
reorganization may have potential benefit for their respective
districts, a comprehensive feasibility study is undertaken to develop
information relating to how the reorganized district(s) would operate.
Such a study is often required by the State Education Department prior
to issuing formal orders which permit the districts to proceed legally
through the reorganization process.

Education Law § 3602(14) sets out the reorganization aid currently
provided by New York State to districts upon merger or consolidation,
but the law does not include language that would reimburse districts for
the cost of related feasibility studies that all or nearly all districts
would have required.

This legislation would ensure that school districts are not burdened by
the costs of these feasibility studies, nor deterred from pursuing merg-
er or consolidation due to the associated costs.

 
PRIOR LEGISLATIVE HISTORY:

2023/24: S2293 (Mayer)/ A1351: reported and committed to Finance;
referred to Education

2021/22: S547 (Mayer) / A2370 (Woerner): passed Senate; delivered to
Assembly

2019/20: S3875 (Mayer) / A1543 (Woerner): passed Senate (2019); reported
and committed to Finance (2020)

 
FISCAL IMPLICATIONS:

Unknown.

 
EFFECTIVE DATE:
This act shall take effect immediately; with exceptions. Provided,
however, that if upon such effective date, an appropriation to the
education department shall not have been made for reimbursement of
school districts and boards of cooperative educational services for the
purposes of implementing the provisions of subdivision 14-a of section
3602 of the education law, as added by section one of this act, then
this act shall take effect on the forty-fifth day after such an appro-
priation is made, and provided, further, that the division of the budget
shall notify the legislative bill drafting commission upon enactment
whether such an appropriation has been made, and if such appropriation
shall not have been made on or before such date, the division of the
budget shall notify the legislative bill drafting commission upon the
date such an appropriation shall have been made, in order that the
commission may maintain an accurate and timely effective data base of
the official text of the laws of the state of New York in furtherance of
effectuating the provisions of section 44 of the legislative law and
section 70-b of the public officers law.