Business & Facilities

Housing For School Faculty Subject To Non-Profit Tax Exemption.

Over the past 25 years, Rye Country Day School, a nonprofit college preparatory school in New York, has used several tax-exempt, single-family residential properties to provide housing for faculty and administrators. On December 14, 2015, the School purchased a parcel of property containing six townhouses within the City of Rye. On May 1, 2018, when full-time faculty occupied all six townhouses, the School applied to the city assessor for a tax exemption. The assessor denied the application on the ground that the School did not sufficiently establish that the property is an integral part of the education process. The School filed a complaint with the City’s Board of Assessment Review, arguing that the property was exempt under the law, and the School used the property as a recruitment tool by providing short-term housing for desired faculty from outside the area. The Board agreed with the assessor and denied the application for a tax exemption.

The School filed a claim arguing that denying the tax exemption was improper. Under New York’s property laws, there is a mandatory tax exemption for real property of non-profit corporations. The burden for establishing that a property is entitled to a tax exemption rests with the taxpayer. For a non-profit to qualify for the tax exemption, the owner must show that: (1) the owner of the property is organized or conducted exclusively, or primarily, for an exempt purpose; and (2) the property itself primarily used for an exempt purpose.

The Court found that the School is organized and conducted primarily for exempt purposes, as it is a school, and so organized for educational purposes. The Court also found that the School demonstrated that the primary use of the townhouses furthered its primary purpose of operating as a school. The Court noted that New York has long recognized that residential property used for housing a school’s faculty and staff is entitled to a tax exemption, and the School had other properties that were long recognized as tax exempt. The townhouses were used to attract talented faculty and staff, which is necessary and incidental to the School’s primary educational purpose. The Court overturned the tax exemption denial.

Rye Country Day School v. Whitty (N.Y. App. Div. 2023) 212 A.D.3d 819.

Note: This case is an important reminder that school-provided housing must tie to a school’s tax-exempt purposes in order for the school to receive the tax benefit.

Should Your School Have Medication To Reverse Opioid Overdoses On Campus?

Opioid related overdoses remain an epidemic in the United States, and of particular concern is the impact the epidemic continues to have on children and adolescents. In response, California legislators have introduced legislation, Assembly Bill 19, to require public middle and high schools to maintain overdose reversal medications on campus.

If passed, Assembly Bill 19 would require public schools to maintain two doses of naloxone hydrochloride or another opioid antagonist (Naloxone) on schools’ campuses at all times. While this law would not apply to private schools, it presents a good opportunity for private schools to consider maintaining doses on their campus and the obligations associated with doing so.

Currently, Education Code section 49414.3 permits private elementary and secondary schools to make Naloxone available for administration, subject to certain requirements. The law states that schools should consider whether initiating emergency medical services in response to an overdose is a reasonable alternative to maintaining Naloxone on campus and implies that schools in difficult to reach or remote locations should make Naloxone available. Emergency response time is a significant consideration as the timely administration of Naloxone can be the difference between life and death.

Below are some additional requirements and considerations for schools to be aware of with regard to making Naloxone available on campus.

Standing Orders

In 2017, the California Department of Public Health (CDPH) issued a statewide standing order to help reduce mortality associated with opioid overdoses. The standing order permits certain entities, including private schools, to obtain and distribute Naloxone without working with a physician. (Civ. Code § 1714.22) Qualified entities, broadly defined as those in a position to administer Naloxone to those in need, must apply to use the standing order and obtain Naloxone. The application can be found here. Once an entity submits an application, CDPH will immediately generate a standing order. Once the entity has a standing order issued, it may obtain dosages of Naloxone for emergency administration.

Certain entities, including private schools, may also apply for free doses of the medication through the California Department of Health Care Services’ Naloxone Distribution Project. The application for the free doses can be found here.

Trained Personnel & Immunity

If a private school elects to make Naloxone available, a school nurse may administer the medication to students. If the school does not have a nurse or the nurse is unavailable, a volunteer may administer the Naloxone after meeting certain criteria. (Ed. Code §49414.3 subd. (h)(1).)

The Education Code prohibits a school from bestowing a benefit to a person that volunteers for this responsibility. (Ed. Code §49414.3 subd. (c).) It also prohibits any retaliation against an individual if they rescind an offer to volunteer for this responsibility. (Ed. Code §49414.3 subd. (d)(1).) The volunteer may also rescind their offer to administer the medication at any time, even after receiving training. (Ed. Code §49414.3 subd. (d)(1).)

Individuals who administer Naloxone, in good faith and without compensation, to an individual who appears to be experiencing an overdose, are immune from civil action, criminal prosecution, and cannot be subject to professional review. (Ed. Code §49414.3 subd. (j).)

Training Requirements (Ed. Code §49414.3 subd. (e)(2).)

Individuals that volunteer to administer an opioid antagonist must first undergo training. Training must be completed initially and then annually and must include:

1. Techniques for recognizing symptoms of an opioid overdose;

2. Standards and procedures for the storage, restocking, and emergency use of Naloxone;

3. Basic emergency follow up responses, such as an administrator calling 911 and contacting the student’s parents; and

4. Cardiopulmonary resuscitation (CPR) certification.

5. The school must also maintain written materials covering each of the above-specified items. The training must also be consistent with the most recent guidelines for medication administration issued by the Department of Education.

Additional Considerations

Schools that elect to maintain Naloxone on campus must follow the legal requirements set forth in the Education Code. Schools should also consider implementing a policy that educates its staff on how to manage emergency overdose situations that may occur on campus and who will be involved in the administration and follow up. Even if schools elect to not make Naloxone available on campus, they should review their policies to ensure that a timely response can be taken to address an overdose on campus.

Assembly Bill 19 will not require California private schools to maintain Naloxone on campus. However, it highlights the importance of making sure that schools have the resources available to protect their students.