Bill Text: NJ A1952 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides procedure for municipality acquiring school property from non-operating school district following merger to extinguish restrictive deed covenant.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly State and Local Government Committee [A1952 Detail]
Download: New_Jersey-2014-A1952-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblywoman CELESTE M. RILEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Provides procedure for municipality acquiring school property from non-operating school district following merger to extinguish restrictive deed covenant.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the liquidation of certain assets of a non-operating school district and amending P.L.2009, c.78.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.2009, c.78 (C.18A:8-49) is amended to read as follows:
7. a. The board of education of the district with which the non-operating district is merged shall cause a final audit of the non-operating district's accounts and financial transactions to be made by a public school accountant pursuant to N.J.S.18A:23-1 et seq., and shall provide for the liquidation of the assets of the non-operating district. The non-operating district shall be responsible for the costs of the final audit which shall be payable from the district's accounts prior to the liquidation of the assets. Upon completion of the liquidation, any cash balances, including any remaining reserve balances, shall be paid to the municipal governing body of the municipality in which the former non-operating district is located, and any indebtedness shall be the responsibility of that municipal governing body.
b. Upon the elimination of a non-operating district pursuant to section 2 of [this act] P.L.2009, c.78 (C.18A:8-44), the books, documents, and records of that district shall be turned over to the board of education of the new district.
c. Upon the elimination of a non-operating district pursuant to section 2 of [this act] P.L.2009, c.78 (C.18A:8-44), the municipal governing body of the municipality in which the former non-operating district is located shall take title to and control of all school grounds and buildings, unless the deed on the school grounds and building directs otherwise, and the furnishings and equipment therein, situated in the municipality; provided, however, that in the case of a grantor's deed restriction that limits the use of the school grounds for school or educational purposes, the municipality may file an action in the Superior Court for a judgment to quiet title and extinguish the deed restriction on the basis that there is no longer a school operating within the municipality.
(cf: P.L.2009, c.78, s.7)
2. This act shall take effect immediately.
STATEMENT
This bill is intended to address the situation where the real property of a non-operating school district is transferred to a municipality following the legislatively required merger of that school district with an operating school district. When a school building and grounds is encumbered by a deed restriction that requires the property be used for school or educational purposes only, the municipality is presented with a hardship in appropriating funds to maintain a property for which it has no use. Since the municipality cannot easily sell or transfer the property with the deed restriction, it is appropriate to permit the municipality to file an action with the Superior Court in order quiet title and extinguish the restriction so that the former school property can be sold and used for other purposes.
