Bill Text: NY A09080 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes the appointment of a monitor to oversee the Wyandanch union free school district, authorizes deficit financing and an advance of aid payments for such district.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-02-03 - SIGNED CHAP.18 [A09080 Detail]

Download: New_York-2019-A09080-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9080

                   IN ASSEMBLY

                                    January 16, 2020
                                       ___________

        Introduced  by  M.  of  A.  JEAN-PIERRE -- read once and referred to the
          Committee on Education

        AN ACT to repeal a chapter of the laws of 2019, authorizing the  commis-
          sioner of education, in consultation with the comptroller to appoint a
          monitor to oversee the Wyandanch union free school district and estab-
          lishing  the powers and duties of the monitor, as proposed in legisla-
          tive bills numbers S.6588-A and A.8422-A; authorizing the commissioner
          of education to appoint a monitor to oversee the Wyandanch union  free
          school  district  and establishing the powers and duties of such moni-
          tor; authorizing deficit financing and an advance of aid payments  for
          the Wyandanch union free school district; and providing for the repeal
          of certain provisions upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. A chapter of the laws of 2019, authorizing the commissioner
     2  of education, in consultation with the comptroller to appoint a  monitor
     3  to oversee the Wyandanch union free school district and establishing the
     4  powers  and  duties  of  the  monitor,  as proposed in legislative bills
     5  numbers S.6588-A and A.8422-A is REPEALED.
     6    § 2. Definitions. As used in this act:
     7    (a) "Commissioner" shall mean the commissioner of education;
     8    (b) "Department" shall mean the state education department;
     9    (c) "Board of education" or "board" shall mean the board of  education
    10  of the Wyandanch union free school district;
    11    (d)  "School  district"  or  "district" shall mean the Wyandanch union
    12  free school district;
    13    (e) "Superintendent" shall mean the superintendent  of  the  Wyandanch
    14  union free school district; and
    15    (f)  "Relatives"  shall  mean  a  Wyandanch union free school district
    16  board member's spouse, domestic partner, child,  stepchild,  stepparent,
    17  or  any  person  who  is  a  direct  descendant of the grandparents of a
    18  current board member or a board member's spouse or domestic partner.
    19    § 3. Appointment of a monitor.  The  commissioner  shall  appoint  one
    20  monitor  to provide oversight, guidance and technical assistance related

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11225-12-0

        A. 9080                             2

     1  to the fiscal policies, practices, programs and decisions of the  school
     2  district, the board of education and the superintendent.
     3    1.  The  monitor,  to the extent practicable, shall have experience in
     4  school district finances and one or more of the following areas:
     5    (a) elementary and secondary education;
     6    (b) the operation of school districts in New York;
     7    (c) educating students with disabilities; and
     8    (d) educating English language learners.
     9    2. The monitor shall be a non-voting ex-officio member of the board of
    10  education. The monitor shall be an individual who  is  not  a  resident,
    11  employee  of  the  school  district or relative of a board member of the
    12  school district at the time of his or her appointment.
    13    3. The reasonable and necessary expenses incurred by the monitor while
    14  performing his or her official  duties  shall  be  paid  by  the  school
    15  district.  Notwithstanding any other provision of law, the monitor shall
    16  be entitled to defense and indemnification by the school district to the
    17  same extent as a school district employee.
    18    § 4. Meetings. 1. The monitor shall be entitled to attend all meetings
    19  of the board, including executive sessions; provided however, such moni-
    20  tor shall not be considered for purposes of establishing a quorum of the
    21  board. The school  district  shall  fully  cooperate  with  the  monitor
    22  including, but not limited to, providing such monitor with access to any
    23  necessary  documents  and  records  of  the district including access to
    24  electronic  information  systems,  databases  and  planning   documents,
    25  consistent with all applicable state and federal statutes including, but
    26  not  limited  to,  Family  Education  Rights and Privacy Act (FERPA) (20
    27  U.S.C. §1232g) and section 2-d of the education law.
    28    2. The board, in consultation with the monitor, shall adopt a conflict
    29  of interest policy that complies  with  all  existing  applicable  laws,
    30  rules  and regulations that ensures its board members and administration
    31  act in the school district's best interest and  comply  with  applicable
    32  legal  requirements.  The conflict of interest policy shall include, but
    33  not be limited to:
    34    (a) a definition of the circumstances that constitute  a  conflict  of
    35  interest;
    36    (b) procedures for disclosing a conflict of interest to the board;
    37    (c) a requirement that the person with the conflict of interest not be
    38  present  at or participate in board deliberations or votes on the matter
    39  giving rise to such conflict, provided that nothing in this  subdivision
    40  shall  prohibit  the  board  from  requesting  that  the person with the
    41  conflict of interest present information as background or  answer  ques-
    42  tions  at  a board meeting prior to the commencement of deliberations or
    43  voting relating thereto;
    44    (d) a prohibition against any attempt by the person with the  conflict
    45  to  influence improperly the deliberation or voting on the matter giving
    46  rise to such conflict; and
    47    (e) a requirement that the existence and resolution of the conflict be
    48  documented in the board's records, including in the minutes of any meet-
    49  ing at which the conflict was discussed or voted upon.
    50    § 5. Public hearings. 1. The monitor shall schedule two  public  hear-
    51  ings to be held within sixty days of his or her appointment, which shall
    52  allow public comment from the district's residents, students, employees,
    53  parents, board members and administration.
    54    (a)  The first hearing shall take public comment on existing statutory
    55  and regulatory authority of the commissioner,  the  department  and  the
    56  board  of  regents regarding school district governance and intervention

        A. 9080                             3

     1  under applicable state law and regulations, including  but  not  limited
     2  to, section 306 of the education law.
     3    (b)  The  second  hearing  shall  take  public  comment  on the fiscal
     4  performance of the district.
     5    2. The board of education and the monitor shall consider these  public
     6  comments when developing the financial plan under this act.
     7    §  6.  Financial  plan.  1. No later than November first, two thousand
     8  twenty, the board of education and the monitor shall develop a  proposed
     9  financial  plan  for  the  two  thousand twenty--two thousand twenty-one
    10  school year and the four subsequent school years.   The  financial  plan
    11  shall  ensure  that annual aggregate operating expenses shall not exceed
    12  annual aggregate operating revenues for such school year  and  that  the
    13  major  operating  funds  of  the district be balanced in accordance with
    14  generally accepted  accounting  principles.  The  financial  plan  shall
    15  include  statements  of  all  estimated revenues, expenditures, and cash
    16  flow projections of the district.
    17    2. If the board of education and the monitor agree on all the elements
    18  of the proposed financial plan, the board of education shall  conduct  a
    19  public  hearing on the plan and consider the input of the community. The
    20  proposed financial plan shall be made public on the  district's  website
    21  at  least  three  business  days  before  such  public hearing. Once the
    22  proposed financial plan has been approved by  the  board  of  education,
    23  such  plan  shall  be  submitted  by the monitor to the commissioner for
    24  approval and shall be deemed approved for the purposes of this act.
    25    3. If the board of education and the monitor do not agree on  all  the
    26  elements  of  the  proposed financial plan, the board of education shall
    27  conduct a public hearing on the proposed plan that details the  elements
    28  of  disagreement between the monitor and the board, including documented
    29  justification for such disagreements and any requested  amendments  from
    30  the monitor.  The proposed financial plan, elements of disagreement, and
    31  requested  amendments  shall be made public on the district's website at
    32  least three business days before such public hearing. After  considering
    33  the  input  of the community, the board may alter the proposed financial
    34  plan and the monitor may alter his or her requested amendments, and  the
    35  monitor  shall submit the proposed financial plan, his or her amendments
    36  to the plan, and documentation providing justification  for  such  disa-
    37  greements  and  amendments  to  the  commissioner no later than December
    38  first, two thousand twenty.  By January fifteenth, two thousand  twenty-
    39  one,  the  commissioner  shall approve the proposed plan with any of the
    40  monitor's proposed amendments, or make other modifications,  he  or  she
    41  deems appropriate. The board of education shall provide the commissioner
    42  with  any  information  he  or  she requests to approve such plan within
    43  three business days of such request. Upon the approval  of  the  commis-
    44  sioner, the financial plan shall be deemed approved for purposes of this
    45  act.
    46    § 7. Fiscal and operational oversight. 1. The board of education shall
    47  annually  submit  the  school  district's  proposed  budget for the next
    48  succeeding school year to the monitor no later than March first prior to
    49  the school district's annual budget vote. The monitor shall  review  the
    50  proposed  budget  to  ensure  that  it is balanced within the context of
    51  revenue and expenditure estimates and  mandated  programs.  The  monitor
    52  shall also review the proposed budget to ensure that it, to the greatest
    53  extent  possible,  is consistent with the district financial plan devel-
    54  oped and approved pursuant to this act. The monitor shall present his or
    55  her findings to the board of education and  the  commissioner  no  later
    56  than  forty-five  days  prior  to    the  date  scheduled for the school

        A. 9080                             4

     1  district's annual budget vote. The commissioner shall require the  board
     2  of  education  to make amendments to the proposed budget consistent with
     3  any recommendations made by the monitor if the  commissioner  determines
     4  such  amendments  are  necessary to comply with the financial plan under
     5  this act. The school district shall make  available  on  the  district's
     6  website:  the  initial  proposed budget, the monitor's findings, and the
     7  final proposed budget at least seven days  prior  to  the  date  of  the
     8  school district's budget hearing. In the event of a revote, the board of
     9  education, in conjunction with the monitor, shall develop and submit the
    10  school district's proposed budget for the next succeeding school year to
    11  the  commissioner  no later than seven days prior to the budget hearing.
    12  The board of education shall provide the commissioner with any  informa-
    13  tion  he  or  she  requests in order to make a determination pursuant to
    14  this subdivision within three business days of such request.
    15    2. The district shall provide quarterly reports  to  the  monitor  and
    16  annual  reports  to  the commissioner and board of regents on the fiscal
    17  and operational status of the school district. In addition, the  monitor
    18  shall provide semi-annual reports to the commissioner, board of regents,
    19  the  governor, the temporary president of the senate, and the speaker of
    20  the assembly  on  the  fiscal  and  operational  status  of  the  school
    21  district.  Such  semi-annual report shall include all the contracts that
    22  the district entered into throughout the year.
    23    3. The monitor shall have the authority to disapprove  travel  outside
    24  the state paid for by the district.
    25    4.  The  monitor shall work with the district's shared decision-making
    26  committee as defined in 8 NYCRR Part 100.11 in developing the  financial
    27  plan,  district goals, implementation of district priorities and budget-
    28  ary recommendations.
    29    5. The monitor shall assist in resolving any disputes  and  conflicts,
    30  including  but  not limited to, those between the superintendent and the
    31  board of education and among the members of the board of education.
    32    6. The monitor may recommend, and the board shall consider by vote  of
    33  a  resolution  at  the  next scheduled meeting of the board, cost saving
    34  measures including, but not limited to, shared service agreements.
    35    § 8. The commissioner may overrule any decision of the monitor, except
    36  for collective bargaining agreements negotiated in accordance with arti-
    37  cle 14 of the civil service law, if he or  she  deems  that  it  is  not
    38  aligned with the financial plan or the school district's budget.
    39    §  9. The monitor may notify the board and the commissioner in writing
    40  when he or she deems the district is violating an element of the  finan-
    41  cial plan in this act. Within twenty days, the commissioner shall deter-
    42  mine  whether the district is in violation of any of the elements of the
    43  plan highlighted by the monitor and shall order the district  to  comply
    44  immediately  with  the  plan  and  remedy any such violation. The school
    45  district shall suspend all actions related to the potential violation of
    46  the financial plan until the commissioner issues a determination.
    47    § 10. Nothing herein shall be construed to  abrogate  the  duties  and
    48  responsibilities of the school district consistent with applicable state
    49  law and regulations.
    50    §  11. Deficit financing. (a) The school district is hereby authorized
    51  to issue serial bonds, subject to the provisions of section 10.10 of the
    52  local finance law, on or before June thirtieth, two thousand twenty,  in
    53  an  aggregate  principal  amount not to exceed three million one hundred
    54  thousand dollars ($3,100,000), for the specific  object  or  purpose  of
    55  liquidating  actual  deficits  in  its  general fund at the close of the
    56  fiscal year ending June thirtieth, two thousand nineteen as certified by

        A. 9080                             5

     1  the state comptroller. In anticipation of the issuance and sale of  such
     2  serial  bonds,  bond  anticipation  notes  are  hereby  authorized to be
     3  issued.
     4    (b) The specific object or purpose of this issuance is hereby declared
     5  to be a public purpose which the school district is hereby authorized to
     6  accomplish  and  the  period  of  probable  usefulness thereof is hereby
     7  authorized to be ten years.
     8    (c) Notwithstanding the provisions of any other law, general,  special
     9  or  local,  the board of education is hereby authorized to levy a tax to
    10  be collected in annual installments sufficient to pay the  principal  of
    11  and  interest  on  said bonds and bond anticipation notes and to adopt a
    12  bond resolution authorizing the serial bonds  authorized  to  be  issued
    13  pursuant to this section.
    14    (d)  Amounts provided from the proceeds of obligations issued pursuant
    15  to this section in excess of the amount of the deficit as  confirmed  by
    16  the  state  comptroller  shall  be  accounted  for in the same manner as
    17  prescribed by the state comptroller pursuant to section 36 of the gener-
    18  al municipal law for real property taxes levied for  a  planned  balance
    19  pursuant to subdivision 21 of section 2021 of the education law.
    20    §  12.  Lottery  advance.  (a) Notwithstanding any other provisions of
    21  law, for aid payable in the  school  years  two  thousand  nineteen--two
    22  thousand  twenty  through  two thousand forty-eight--two thousand forty-
    23  nine upon application to the commissioner submitted not sooner than  the
    24  second  Monday  in  June of the school year in which such aid is payable
    25  and not later than the Friday following the third Monday in June of  the
    26  school  year  in which such aid is payable, or ten days after the effec-
    27  tive date of this act, whichever shall be  later,  the  school  district
    28  shall be eligible to receive an apportionment pursuant to this act in an
    29  amount  equal  to  the product of up to one million dollars ($1,000,000)
    30  and the quotient of the positive difference of thirty minus  the  number
    31  of  school  years  elapsed since the two thousand nineteen--two thousand
    32  twenty school year divided by thirty. Funds apportioned pursuant to this
    33  subdivision shall be used  for  services  and  expenses  of  the  school
    34  district and shall be applied to support of its educational programs and
    35  any liability incurred by such school district in carrying out its func-
    36  tions and responsibilities under the education law.
    37    (b)  The  claim for an apportionment to be paid to the school district
    38  pursuant to subdivision (a) of this section shall be  submitted  to  the
    39  commissioner on a form prescribed for such purpose, and shall be payable
    40  upon determination by such commissioner that the form has been submitted
    41  as prescribed and that the school district has complied with the report-
    42  ing  requirements of this act. For each school year in which application
    43  is made pursuant to subdivision  (a)  of  this  section,  such  approved
    44  amount  shall be payable on or before June thirtieth of such school year
    45  upon the audit and warrant of the state comptroller on  vouchers  certi-
    46  fied  or  approved  by  the commissioner in the manner prescribed by law
    47  from moneys in the state lottery fund appropriated for  general  support
    48  of  public  schools  and  from  the  general fund to the extent that the
    49  amount paid to the school district  pursuant  to  this  subdivision  and
    50  subdivision (a) of this section exceeds the amount of the lottery appor-
    51  tionment,  if any, due such school district pursuant to subparagraph (2)
    52  of paragraph a of subdivision 1 of section 3609-a of the  education  law
    53  on or before September first of such school year.
    54    (c)  Notwithstanding the provisions of section 3609-a of the education
    55  law, an amount equal to the amount paid to the  school  district  during
    56  the base year pursuant to subdivisions (a) and (b) of this section shall

        A. 9080                             6

     1  first  be  deducted  from  payments  due  during the current school year
     2  pursuant to subparagraphs (1), (2), (3), (4) and (5) of paragraph  a  of
     3  subdivision  1  of  section 3609-a of the education law in the following
     4  order: the lottery apportionment payable pursuant to subparagraph (2) of
     5  such  paragraph  followed by the fixed fall payments payable pursuant to
     6  subparagraph (4) of such paragraph, and any  remainder  to  be  deducted
     7  from  the  individualized payments due to the district pursuant to para-
     8  graph b of such subdivision shall be deducted on a  chronological  basis
     9  starting with the earliest payment due to the district.
    10    (d)  Notwithstanding  any other provisions of law, the sum of payments
    11  made to the school district during the base year  pursuant  to  subdivi-
    12  sions  (a)  and  (b)  of  this section plus payments made to such school
    13  district during the current year  pursuant  to  section  3609-a  of  the
    14  education  law  shall be deemed to truly represent all aids paid to such
    15  school district during the current school year pursuant to such  section
    16  3609-a  for  the purposes of computing any adjustments to such aids that
    17  may occur in a subsequent school year.
    18    § 13. This act shall take effect immediately, provided however:
    19    Section one of this act shall take effect on the same date as a  chap-
    20  ter  of  the laws of 2019, authorizing the commissioner of education, in
    21  consultation with the comptroller to appoint a monitor  to  oversee  the
    22  Wyandanch  union  free  school  district and establishing the powers and
    23  duties of the monitor, as proposed in legislative bills numbers S.6588-A
    24  and A.8422-A, takes effect.
    25    Sections three through ten of this act  shall  expire  and  be  deemed
    26  repealed June 30, 2025.
    27    Section eleven shall expire and be deemed repealed June 30 of the last
    28  fiscal  year  during  which  serial bonds or bonds issued to refund such
    29  serial bonds that are outstanding pursuant to such section of this  act,
    30  provided  that  the  superintendent  of  the Wyandanch union free school
    31  district shall notify the legislative bill drafting commission upon such
    32  occurrence in order that the commission may  maintain  an  accurate  and
    33  timely effective data base of the official text of the laws of the state
    34  of  New York in furtherance of effectuating the provisions of section 44
    35  of the legislative law and section 70-b of the public officers law.
    36    Sections two and twelve  of  this  act  shall  expire  and  be  deemed
    37  repealed June 30, 2049.
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