A 865: Requires the appointment of an independent fiduciary upon the closing of a charter school to develop and implement the dissolution plan of such charter school, including the distribution of assets.

  
  STATE OF NEW YORK ________________________________________________________________________ 865 2025-2026 Regular Sessions  IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. FORREST -- read once and referred to the Commit- tee on Education AN ACT to amend the education law, in relation to the appointment of an independent fiduciary upon the dissolution 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. Section 2855 of the education law is amended by adding 2 three new subdivisions 2-a, 2-b and 2-c to read as follows: 3 2-a. (a) Within thirty days of a final decision, or as soon as practi- 4 cable thereafter, by a charter entity to revoke, to not renew, or to 5 acknowledge the expiration or surrender of a charter, the commissioner 6 may appoint an independent fiduciary to implement the dissolution plan 7 of such charter school, including the distribution of assets pursuant to 8 paragraph (t) of subdivision two of section twenty-eight hundred fifty- 9 one of this article, and shall notify the closing charter school, the 10 school district of location for the charter school and the school 11 districts of residence for the charter school in writing of the 12 appointed independent fiduciary responsible for overseeing the school's 13 dissolution and closure process. 14 (b) The independent fiduciary may be a non-profit entity, board of 15 cooperative educational services (BOCES), a school district other than 16 the school district of location for the charter school or a school 17 district of residence for pupils of such charter school, or an individ- 18 ual. 19 (c) The independent fiduciary shall contract with the charter school 20 and shall be compensated, and shall be reimbursed for reasonable and 21 necessary expenses incurred as determined by the commissioner. Such 22 compensation and reimbursement shall be paid by the charter school. The 23 independent fiduciary shall be entitled to defense and indemnification 24 by the charter school to the same extent as a charter school employee. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02081-01-5 
 A. 865 2 1 The appointment of an independent fiduciary may be terminated by the 2 commissioner for a violation of law or the commissioner's regulations or 3 for breach of contract or neglect of duty as determined by the commis- 4 sioner. In the event that an independent fiduciary's appointment is 5 terminated by the commissioner, a replacement independent fiduciary 6 shall be appointed by the commissioner as soon as practicable following 7 the effective date of such termination. 8 2-b. Notwithstanding any other provision of law to the contrary, the 9 independent fiduciary shall have the power to review all existing 10 disbursements and to review, disallow, modify or approve all new 11 contracts and disbursements of the charter school subsequent to the date 12 of the fiduciary's appointment, the authority to prepare and file a 13 petition regarding the disposition of assets and/or a petition for 14 dissolution on behalf of the charter school's board of trustees, and may 15 supersede any decision or policy of the charter school that in the sole 16 judgment of the independent fiduciary conflicts with the school dissol- 17 ution plan. The independent fiduciary shall, within sixty days follow- 18 ing the formal dissolution of the charter school, submit a comprehensive 19 report to the commissioner including information pertaining to the 20 disposition of assets pursuant to section twenty-eight hundred fifty-one 21 of this article. 22 2-c. It shall be the duty of the charter school trustees and manage- 23 ment to fully cooperate with the independent fiduciary. The independent 24 fiduciary may visit, examine into and inspect any records of such school 25 under its oversight. 26 § 2. Paragraph h of subdivision 4 of section 1950 of the education law 27 is amended by adding a new subparagraph 14 to read as follows: 28 (14) To enter into contracts with individual charter schools to serve 29 as an independent fiduciary pursuant to section twenty-eight hundred 30 fifty-five of this chapter. 31 § 3. This act shall take effect on the sixtieth day after it shall 32 have become a law. Effective immediately, the addition, amendment and/or 33 repeal of any rule or regulation necessary for the implementation of 34 this act on its effective date are authorized to be made and completed 35 on or before such effective date.