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A 10673

Relates to certain lease terms for BOCES properties

2025 Regular Session Introduced by Carrie Woerner

Allows BOCES and certain public entities to enter leases up to 20 years with strict cost-effectiveness, FMV no overpayment, and commissioner approvals.

REPORTED REFERRED TO WAYS AND MEANS
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Bill Summary · A 10673

Overview

  • Bill: A 10673 (2025-2026 Session, New York)
  • Introduced by: Assembly Member Woerner
  • Committee: Education (initial referral)
  • Purpose: Amend education law and general municipal law to modify lease terms for BOCES (Boards of Cooperative Educational Services) properties

Main purpose and intent

The bill broadens and clarifies the maximum lease terms for BOCES facilities and related land, classrooms, offices, or buildings. It also aligns certain lease terms with requirements for commissioner approval and cost-effectiveness, and it clarifies when longer leases may occur with or without voter approval or executive consent.

Key provisions and changes

Education Law changes (section 1)

  • Increases the maximum lease duration for BOCES facilities from 10 years to 20 years for leases entered into with public entities, while maintaining 10-year limits for many other leases.
  • Before executing a lease, the BOCES board must:
    • Adopt a resolution stating the lease is in the best financial interest of the supervisory district and explain the basis.
    • Ensure rental payments do not exceed fair market value as determined by the board and provided to the commissioner.
    • Disclose conflicts of interest (and any potential or perceived conflicts) to the commissioner, with detailed documentation showing lease costs do not exceed fair market value when conflicts exist.
    • Obtain the commissioner’s consent for renewal for up to an additional 10 years.
  • Leases longer than ten years require the commissioner’s written approval, which must include a finding that the lease complies with requirements and would be more cost-effective than a ten-year lease.

Education Law, subparagraphs related to lease terms (section 2)

  • General rule: Leases shall not exceed ten years unless established under the section 1950 process (the BOCES provision), in which case they may extend up to 20 years.
  • School districts may lease for up to ten years to providers offering the most benefit, with renewal up to ten years upon commissioner consent. Longer leases may occur under the BOCES provision.
  • Authorization for leases to exceed ten years remains subject to voter approval by referendum, except leases established under the BOCES provision may exceed ten years without referendum, but not beyond twenty years.

General Municipal Law changes (section 3)

  • Section 72-h, subdivision (a): Municipal entities (counties, towns, villages, fire districts, cities, etc.) may lease real property to various government or educational bodies without consideration or under favorable terms, subject to officer or body approval.
  • Term for such leases generally shall not exceed ten years, unless established under the BOCES provision, in which case it may extend to twenty years. Renewals remain permitted.

Effective date (section 4)

  • Immediate effective date for the act.
  • The amendments to the education law related to the BOCES provision would apply without affecting the expiration of the current subparagraph.

Who and what would be affected

  • BOCES districts and their governing boards would have extended authority to enter into leases of up to 20 years for public entity leases, with enhanced requirements for cost-effectiveness, fair market value, and conflict disclosures.
  • School districts, counties, towns, villages, fire districts, and cities involved in leasing property to government or educational entities could see changes in lease durations and approval processes when using the BOCES section framework.
  • The New York State Education Department (commissioner) would retain oversight, including written approval for long-term leases and verification of cost-effectiveness and FMV.

Procedural and timeline aspects

  • Leases longer than ten years require commissioner approval; for ten-to-twenty-year leases, explicit cost-effectiveness findings and FMV determinations must be documented.
  • Renewal provisions: Commissioner consent required for renewals up to ten years; longer leases under the BOCES process may not require referendum.
  • Disclosure: Boards must disclose conflicts of interest and provide documentation to support FMV.
  • Effective date: Act takes effect immediately upon enactment.

Practical impact considerations

  • May provide financial flexibility for BOCES and collaborating districts by enabling longer lease terms (up to 20 years) with formalized cost controls.
  • Increases the role of the commissioner in approving longer or more complex lease arrangements.
  • Balances potential long-term facilities needs with safeguards against conflicts of interest and overpayment relative to fair market value.

Compiled from official sources — confirm details with the bill’s official record.

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