Bill S7129B-2009

Authorizes Greenburgh North Castle Union free school district to lease certain real property

Authorizes Greenburgh North Castle Union free school district to lease certain real property and establishes that the Greenburgh North Castle Union Free School District 12 and St. Christopher's Inc. are "private not-for-profit schools".

Details

Actions

  • Jul 16, 2010: SIGNED CHAP.226
  • Jul 13, 2010: DELIVERED TO GOVERNOR
  • Jun 15, 2010: returned to senate
  • Jun 15, 2010: passed assembly
  • Jun 15, 2010: ordered to third reading rules cal.149
  • Jun 15, 2010: substituted for a10272b
  • May 3, 2010: referred to education
  • May 3, 2010: DELIVERED TO ASSEMBLY
  • May 3, 2010: PASSED SENATE
  • Apr 26, 2010: AMENDED ON THIRD READING (T) 7129B
  • Apr 19, 2010: AMENDED ON THIRD READING 7129A
  • Mar 26, 2010: ADVANCED TO THIRD READING
  • Mar 25, 2010: 2ND REPORT CAL.
  • Mar 24, 2010: 1ST REPORT CAL.315
  • Mar 15, 2010: REFERRED TO LOCAL GOVERNMENT

Votes

Memo

BILL NUMBER:S7129B

TITLE OF BILL:

An act to amend chapter 118 of the laws of 1969, relating to a separate union free school district in the town of Greenburgh in the county of Westchester, in relation to clarifying the authority of the Greenburgh North Castle Union Free School District to lease certain properties located outside of its boundaries and to establish that the Greenburgh North Castle Union free school district number twelve and St. Christopher's Inc. are "private not-for-profit schools"

PURPOSE OR GENERAL IDEA OF BILL:

To authorize Greenburgh-North Castle Union Free School District Number Twelve of the Towns of Greenburgh and North Castle ("Greenburgh-North Castle") and St. Christopher's Inc. (together with Greenburgh-North Castle the "Institutions") to constitute a "private not-for-profit school" (as defined below) solely for purposes of assuming the obligations of The McQuade Foundation ("McQuade") relating to the Dormitory Authority of the State of New York (the "Authority") The McQuade Foundation Insured Revenue Bonds, Series 2005 (the "Bonds").

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill, subject to the approval of the State Education Department, authorizes the board of education to lease properties located at 623 Blooming Grove Turnpike, in the town of New Windsor, county of Orange for the purposes of providing instruction to students enrolled in the school district.

Section 2(a) of the bill provides that the Institutions shall constitute a "private not-for-profit school" within the meaning of title 4 of article eight of the public authorities law, Chapter 698 of the Laws of 1991 and Chapter 294 of the Laws of 1998 solely for purposes of assuming the obligations of McQuade in connection with the Bonds but not for the purpose of any other law, rule, regulation or statute. Section 2(a) further provides that, notwithstanding the assumption of the Bond obligations by the Institutions, they shall be permitted to operate the Bond-financed facilities as a "special act school district," providing services pursuant to contracts with other public school districts or social services districts for the education of children with handicapping conditions pursuant to article eighty-one or eighty-nine of the education law.

Section 2(b) of the bill authorizes the Authority and the Institutions to enter into such agreements as the Authority deems reasonable or necessary to provide for the assumption of the obligations relating to the Bonds by the Institutions in accordance with applicable law and the Authority's contract with its bondholders. Those agreements would provide for, among other things, (i) the payment of debt service on the

Bonds and other amounts due to the Authority, and (ii) the pledge to the Authority of certain tuition payments payable by public school districts and social service providers for services rendered by the Institutions as determined by the Commissioner of Education pursuant to section 4004 of the Education Law.

Section 2(c) of the bill provides that upon the assumption of the obligations by the Institutions, all amounts currently or hereafter held by the State Comptroller in the private not-for-profit school capital facilities financing reserve account established for McQuade will continue to be held and applied for the payment of the Bonds in accordance with applicable law. In addition, every public school district and social services district that receives certain services from the Institutions in connection with that assumption shall make tuition payments to the Comptroller for deposit into the financing reserve fund account.

Section 2(d) requires that the Institutions obtain all governmental approvals, consents, licenses, permits and accreditation otherwise required under law, including the programmatic approval of the commissioner of education prior to assuming the McQuade obligations.

Section 2(e) provides that nothing in the proposed bill shall be construed to impair the validity of Bonds, which will, in all respects, continue to be valid and binding obligations of the Authority authorized under and governed by the provisions of law under which they were issued as described below.

JUSTIFICATION:

The Authority issued $9,620,000 of tax-exempt Bonds on behalf of McQuade to finance the cost of renovating and constructing an addition to McQuade's Kaplan School. By letter dated December 8, 2009, McQuade was informed by the State Education Department that McQuade would be removed from the State's list of approved private schools due to clear and present dangers to the health and safety of students attending the Kaplan School. Subsequent to such letter, all students were removed from McQuade and McQuade is currently closed.

Following the closure of the McQuade Kaplan School in December 2009, the Authority was advised that the Institutions were interested in acquiring substantially all of McQuade's capital facilities located at 623 Blooming Grove Turnpike in the town of New Windsor, county of Orange (the "New Windsor Campus"), which includes those capital facilities financed with the proceeds of the Bonds. S.7129A. A.10272-A would allow Greenburgh-North Castle to lease the New Windsor Campus for the purpose of providing instruction to students enrolled in the school district.

This legislation is also necessary to allow the Institutions to undertake activities at the New Windsor Campus on which the Authority currently holds a mortgage to secure the obligations of McQuade with respect to outstanding Bonds. Specifically, this legislation would authorize the Institutions' assumption of McQuade's obligations relating

to the Bonds and would authorize the Institutions and the Authority to take other actions as are necessary to keep the Bonds outstanding and to preserve the tax exempt status of the Bonds.

LEGISLATIVE HISTORY:

New Bill- 2010

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7129--B Cal. No. 315 IN SENATE March 15, 2010 ___________
Introduced by Sens. STEWART-COUSINS, LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend chapter 118 of the laws of 1969, relating to a separate union free school district in the town of Greenburgh in the county of Westchester, in relation to clarifying the authority of the Greenburgh North Castle Union Free School District to lease certain properties located outside of its boundaries and to establish that the Greenburgh North Castle Union free school district number twelve and St. Christopher's Inc. are "private not-for-profit schools" THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Chapter 118 of the laws of 1969, relating to a separate union free school district in the town of Greenburgh in the county of Westchester is amended by adding a new section 2-a to read as follows: S 2-A. NOTWITHSTANDING ANY OTHER LAW, RULE, OR REGULATION TO THE CONTRARY, IN ADDITION TO THE POWERS GRANTED BY SECTION TWO OF THIS ACT, SUBJECT TO THE APPROVAL OF THE NEW YORK STATE EDUCATION DEPARTMENT, THE BOARD OF EDUCATION SHALL BE AUTHORIZED TO LEASE PROPERTIES LOCATED AT 623 BLOOMING GROVE TURNPIKE, IN THE TOWN OF NEW WINDSOR, COUNTY OF ORANGE FOR THE PURPOSE OF PROVIDING INSTRUCTION TO STUDENTS ENROLLED IN THE SCHOOL DISTRICT. S 2. The actions of the board of education of the Greenburgh North Castle Union Free School District in entering a lease of properties located at 623 Blooming Grove Turnpike, in the town of New Windsor, county of Orange prior to the effective date of this act are hereby ratified, validated and confirmed notwithstanding its location outside of the school district boundaries. S 3. (a) Notwithstanding any provision of law to the contrary, the Greenburgh North Castle union free school district number twelve, of the
towns of Greenburgh and North Castle, in the county of Westchester, created pursuant to chapter 118 of the laws of 1969, as amended and St. Christopher's Inc. shall each, to the extent necessary or applicable to effectuate the provisions of this section, be deemed to be a "private not-for-profit school" within the provisions of title four of article eight of the public authorities law, chapter 698 of the laws of 1991 and chapter 294 of the laws of 1998, solely for the purposes of assuming the obligations of the McQuade foundation in connection with the dormitory authority's "The McQuade foundation insured revenue bonds, series 2005", and not for the purposes of any other law, rule, regulation or statute. Provided further, that, notwithstanding the assumption of such obli- gations, the Greenburgh North Castle union free school district number twelve shall be permitted to operate the capital facilities financed by the proceeds of the McQuade foundation insured revenue bonds, series 2005 for the purposes of providing services pursuant to such school district's contracts with other public school districts or social services districts for the education of children with handicapping conditions pursuant to article eighty-one or eighty-nine of the educa- tion law. (b) Notwithstanding any provision of law to the contrary, the dormito- ry authority, St. Christopher's Inc. and the Greenburgh North Castle union free school district number twelve, of the towns of Greenburgh and North Castle, in the county of Westchester, are each hereby authorized to enter into such agreements as the dormitory authority deems reason- able or necessary to comply with the requirements of subdivision (a) of this section and to provide for the performance of the obligations of St. Christopher's Inc. and the Greenburgh North Castle union free school district number twelve, in accordance with the provisions of title four of article eight of the public authorities law, chapter 698 of the laws of 1991, chapter 294 of the laws of 1998 and the dormitory authority's contract with the holders of the McQuade foundation insured revenue bonds, series 2005. In furtherance thereof, the Greenburgh North Castle union free school district number twelve, St. Christopher's Inc. and the dormitory authority are hereby authorized to enter into one or more leases or other agreements pursuant to which the Greenburgh North Castle union free school district number twelve and St. Christopher's Inc., among other things, shall: (i) agree to pay annual rentals in an amount sufficient to pay the principal and interest due on the McQuade founda- tion insured revenue bonds, series 2005 as such annual rentals come due and any other amounts payable to the dormitory authority under such agreements; and (ii) pledge to the dormitory authority, as security for their respective obligations under such leases or other agreements, that part of the tuition payments payable by public school districts and social services districts for services rendered by the Greenburgh North Castle union free school district number twelve as determined by the commissioner of education pursuant to section four thousand four of the education law. (c) Upon the assumption of the aforesaid obligations of the McQuade foundation by the Greenburgh North Castle union free school district number twelve, of the towns of Greenburgh and North Castle, and St. Christopher's Inc., all amounts currently or hereafter held by the state comptroller in the private not-for-profit school capital facilities financing reserve account established for the McQuade foundation shall continue to be held to provide for the payment of such assumed obli- gations and applied in accordance with the provisions of paragraph f of subdivision thirty-one of section sixteen hundred eighty of the public
authorities law. In addition, every public school district and social services district shall make payment of the tuition payments referenced in subdivision (b) of this section to the state comptroller for deposit into the financing reserve fund account established pursuant to para- graph f of subdivision thirty-one of section sixteen hundred eighty of the public authorities law. (d) Nothing in this chapter shall authorize the Greenburgh North Castle union free school district number twelve, of the towns of Green- burgh and North Castle, and St. Christopher's Inc. from effectuating the transactions authorized under this act without first obtaining any governmental approvals, consents, licenses, permits and accreditation otherwise required under law, which shall include but not be limited to programmatic approval of the commissioner of education. (e) Nothing in this chapter shall be construed to impair the validity of the McQuade foundation insured revenue bonds, series 2005 and such bonds shall, in all respects, continue to be valid and binding obli- gations of the dormitory authority authorized under and governed by the provisions of title four of article eight of the public authorities law, chapter 698 of the laws of 1991 and chapter 294 of the laws of 1998, including, without limitation subdivision thirty-one of section sixteen hundred eighty of the public authorities law, except as is expressly provided in this section. S 4. This act shall take effect immediately.

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