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A07257 Summary:

BILL NOA07257
 
SAME ASNo Same As
 
SPONSORPretlow
 
COSPNSR
 
MLTSPNSR
 
Amd Ed L, generally
 
Relates to charter schools; clarifies the transparency and accountability of charter schools and provides fiscal relief to the school districts where charter schools are located.
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A07257 Actions:

BILL NOA07257
 
03/21/2025referred to education
01/07/2026referred to education
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A07257 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7257
 
SPONSOR: Pretlow
  TITLE OF BILL: An act to amend the education law, in relation to charter schools   PURPOSE OR GENERAL IDEA OF BILL: To clarify the transparency and accountability of charter schools and provide fiscal relief to the school districts where charter schools are located.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 describes the legislative intent behind this law to increase the transparency and accountability of charter schools and to provide fiscal relief to local school districts. Sections 2 Amends Paragraph 1 of Subdivision 1 of Section 2851 of the education law to remove for profit operators from the law and limits salaries of not for profit management companies to the comparable sala- ries of the school district. Section 3 Amends Paragraphs (d), (h), (a), and (v) of subdivision 2. of section 2851 of the education law to require that charter schools up for renewal include a plan on how they will ensure student enrollment reflects local school district enrollment. Requires-charter schools to show how they intend to provide services to students on longterm suspen- sion or expulsion. Allows charter schools to provide instruction for 5 years before renewal of the charter. Requires the board to adopt a code of ethics in compliance with the general municipal law. Section 4 Amends Paragraph (a) of subdivision 4 of Section 2851 of the education law to re-quire a charter school applying for renewal to include disaggregated student performance data in the progress report. Section 5 Amends Subdivision 2 of Section 2852 of the education law by adding paragraphs (e) and (f) to, require the approval of the applica- tion by the board of education. Section 6 Amends Subdivision 5-b of Section 2852 of the education law to require SUNY to provide an explanation why they are not making modifica- tions in a charter suggested by the Regents and removes the automatic approval of second submissions by SUNY. Section 7 Amends Subdivision 7 of Section 2852 by adding a .new para- graph (c) of the education law that requires charter entities to deny a charter revision that would increase charter school enrollment above 5 percent of the enrollment of the School district where the charter school is located and defines the school district of location as the community school district for New York City. Section 8 Amends Subdivision 10 of Section 2852 of the education law to change the approval date from march 15 to January 15 in order for a school to open the following September. This provision gives school district more ability to plan in their budget process. Section 9 Amends Subdivision 2 of Section 2853 of the education law to require State Education Department to include chatter schools in any review or audit of state test administration and scoring. Section 10 Amends Paragraph (a) of Subdivision 3 of Section 2853 of the education law to set limits on shared space when a school district is not meeting class size targets. Section 11 Amends Subdivision 3 of Section 2853 by adding Paragraphs (e) and (f) of the education law to require charter school facility projects to follow the prevailing wage statutes and to require schools to make equitable improvements in shared facilities. Section 12 Amends Paragraphs (c) and (e) of Subdivision 1 of Section 2854 of the education law to clarify that charter school boards must have a code of ethics in conformance with the general municipal law and that charter schools are subject to audits by the charter entity. Section 13 Amends Subdivision 1 of Section 2854 of the education law by adding Paragraph (g) to require charter schools to have a code of ethics. Section 14 Amends Subdivision 2 Section 2854 of the education law and paragraphs (a) and (b) as amended by section 5 Part -D2 of chapter 57 of laws of 2007 to require the charter school to develop a plan for enroll- ing students with disabilities and limited English proficient students at the same levels as the local school district. It requires Charter schools to give a preference to students on free and reduced price lunch, students with disabilities and students with limited English proficiency when conducting a lottery. It requires charter schools to provide a report to the chartering entity indicating the number students leaving the school, why they left and when they left. It requires the charter entity to ensure the random selection process of the lottery is conducted properly. Section 15 Amends Paragraphs (b-1), (c) and (c-1) of Subdivision 3 of Section 2854 of the education law to clarify that charter schools employees are members of the local-collective bargaining unit and that charter school teachers are members of the retirement system. Section 16 Amends Subdivision 1 of section 2855 of the education law to clarify that a charter shall be revoked if a school would be subject, to registration revocation and had not met AYP in the last three years. The previous language only required growth rather than meeting AYP. It allows for revocation when the school does not meet performance targets contained in the charter and student demographics of the district of location for 2 years. Section 17 Amends Subdivision 1 of Section 2856 of the education law to require the state to reimburse school districts for the local share of charter school tuition in the June State aid payment. This provision removes charter school funding from local school districts. School districts already receive state aid for these students so the only portion not paid by the state is the local share. We may have to phase in this change due to the state fiscal crisis but I think this is a good starting point. It leaves room for compromise. It also requires charter schools to provide actual enrollment counts after the initial payment each year. Section 18 Amends Subdivisions 2 and 3 of Section 2857 of the education law to require that Charter school annual reports he placed on school district web sites. It requires the report to include disaggregated student performance data and additional financial information. It requires SED to do an annual report by December first of each year to include information on best practices. Section 19 Amends Paragraph (a) of. Subdivision 7 of Section 1608 of the education law to require that school districts include charter school payments in the property tax report card. Section 20 Amends Paragraph (a) of Subdivision 7 of Section 1716 of the education law to require school districts to include charter school payments in the property tax report card. Section 21 Amends Paragraph (t) of subdivision 1 of Section 3602 of the education law to adjust the formula used to compute approved operating expenses (A0E). When the state aid formula was revised in 2007-08, cate- gorical grant programs were merged into a new Foundation Aid formula which has had the unintended consequence of artificially inflating AOE. Section 22 is the effective date.   JUSTIFICATION: New York's charter school law was enacted 14 years ago in an effort to create new learning opportunities for all students, to encourage differ- ent and innovative teaching methods and to provide parents and students with expanded choice within the public schools. Eleven years provides the state with enough information to make judgments about changes that are needed in the law to ensure the public knows how their tax dollars are being spent and to ensure public schools serving the majority of students have the resources needed to provide a quality education to all students. This legislation will clarify the transparency and account- ability of charter schools and provide fiscal relief to the school districts where charter schools are located.   PRIOR LEGISLATIVE HISTORY: 2024 01/03/24 A3681 referred to education 2023 02/03/23 A3681 referred to education 2022 01/05/22 A3231 referred to education 2019-2020 A4124 referred to education 2017-2018 A781 referred to education 2015-2016 A1618 referred to education 2013-14 A3033 referred to education 2009/2010 A10040a referred to education   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately. Provided, however, that the amendments to subdivision 1 of section 2856 of the education law, made by section seventeen of this act shall not affect the expiration of 2 such subdivision and shall expire therewith.
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A07257 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7257
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 21, 2025
                                       ___________
 
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Education
 
        AN ACT to amend the education law, in relation to charter schools
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Legislative  intent.  New  York's  charter school law was
     2  enacted 14 years ago in an effort to create new  learning  opportunities
     3  for all students, to encourage different and innovative teaching methods
     4  and  to  provide  parents  and  students with expanded choice within the
     5  public schools. Fourteen years provides the state with  enough  informa-
     6  tion  to  make  judgments  about  changes  that are needed in the law to
     7  ensure the public knows how their tax dollars are  being  spent  and  to
     8  ensure  public  schools  serving  the  majority  of  students  have  the
     9  resources needed to provide a quality education to  all  students.  This
    10  legislation  is  intended to clarify the transparency and accountability
    11  of charter schools and provide fiscal relief  to  the  school  districts
    12  where charter schools are located.
    13    § 2. Subdivision 1 of section 2851 of the education law, as amended by
    14  chapter 101 of the laws of 2010, is amended to read as follows:
    15    1.  An  application  to establish a charter school may be submitted by
    16  teachers, parents, school administrators,  community  residents  or  any
    17  combination  thereof.  Such application may be filed in conjunction with
    18  a college, university, museum, educational  institution,  not-for-profit
    19  corporation  exempt from taxation under paragraph 3 of subsection (c) of
    20  section 501 of the internal revenue  code  [or  for-profit  business  or
    21  corporate  entity  authorized to do business in New York state. Provided
    22  however, for-profit business or corporate entities shall not be eligible
    23  to submit an application to  establish  a  charter  school  pursuant  to
    24  subdivision  nine-a  of  section  twenty-eight hundred fifty-two of this
    25  article, or operate or manage a charter  school  for  a  charter  issued
    26  pursuant to subdivision nine-a of section twenty-eight hundred fifty-two

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10426-01-5

        A. 7257                             2

     1  of  this  article. For charter schools established in conjunction with a
     2  for-profit business or corporate entity, the charter shall  specify  the
     3  extent  of the entity's participation in the management and operation of
     4  the  school], and provided that under no circumstances shall an applica-
     5  tion to establish a charter school or  approval  to  operate  a  charter
     6  school  be  granted to a for-profit business or corporate entity author-
     7  ized to do business in this state nor in  any  manner  whatsoever  shall
     8  they  have  an  involvement in the management and operation of a charter
     9  school. The application shall include the amount of any  management  fee
    10  to be paid to any not-for-profit corporation working in conjunction with
    11  the applicants.  Salaries of the employees of such not-for-profit corpo-
    12  ration  may  not  exceed  the  salaries  for comparable positions in the
    13  school district of location.
    14    § 3. Paragraphs (d), (h), (p) and (v) of subdivision 2 of section 2851
    15  of the education law, paragraphs (d) and (h) as added by  chapter  4  of
    16  the laws of 1998 and paragraphs (p) and (v) as amended by chapter 101 of
    17  the laws of 2010, are amended to read as follows:
    18    (d)  Admission  policies and procedures for the school, which shall be
    19  consistent with the requirements of subdivision two of  section  twenty-
    20  eight  hundred  fifty-four  of this article.  For charter renewals, such
    21  policies and procedures shall include plans  for  ensuring  the  student
    22  enrollment  of  the  charter  school includes a comparable percentage of
    23  students on free lunch, students with disabilities and English  language
    24  learners as the school district in which the charter school is located.
    25    (h)  The  rules  and  procedures by which students may be disciplined,
    26  including but not limited to expulsion or suspension  from  the  school,
    27  which  shall be consistent with the requirements of due process and with
    28  federal laws and regulations governing the placement  of  students  with
    29  disabilities.  Such  rules and procedures shall include the provision of
    30  educational services to any student on long term  suspension  or  expul-
    31  sion.
    32    (p)  The  term  of  the  proposed charter, which shall not exceed five
    33  years during which instruction is provided to pupils; provided  however,
    34  in the case of charters issued pursuant to subdivision nine-a of section
    35  twenty-eight hundred fifty-two of this article the term of such proposed
    36  charter  shall not exceed five years in which instruction is provided to
    37  pupils plus the period commencing with the effective date of the charter
    38  and ending with the opening of the school for instruction.
    39    (v) A code of ethics for the charter school,  setting  forth  for  the
    40  guidance  of  its  trustees,  officers  and  employees  the standards of
    41  conduct expected of them including standards with respect to  disclosure
    42  of  conflicts  of interest regarding any matter brought before the board
    43  of trustees.  Such code of ethics shall be in  compliance  with  section
    44  eight hundred six of the general municipal law.
    45    §  4.  Paragraph (a) of subdivision 4 of section 2851 of the education
    46  law, as added by chapter 4 of the laws of 1998, is amended  to  read  as
    47  follows:
    48    (a)  A  report  of the progress of the charter school in achieving the
    49  educational objectives set forth  in  the  charter.  Such  report  shall
    50  include   disaggregated   student   performance  data  for  all  student
    51  subgroups.
    52    § 5. Paragraphs (d) and (e) of subdivision 2 of section  2852  of  the
    53  education  law, as amended by section 4-a of part A of chapter 56 of the
    54  laws of 2023, are amended and two new paragraphs (f) and (g)  are  added
    55  to read as follows:

        A. 7257                             3
 
     1    (d)  in  a  school  district  where  the  total enrollment of resident
     2  students attending charter schools in the base year is greater than five
     3  percent of the total public school enrollment of the school district  in
     4  the  base  year  [(i)] granting the application would have a significant
     5  educational  benefit  to  the  students  expected to attend the proposed
     6  charter school [or (ii) the school district in which the charter  school
     7  will  be  located  consents  to  such application]. For purposes of this
     8  paragraph, in a city having a population of one  million  or  more,  the
     9  school district shall be the community school district; [and]
    10    (e)  for applicants for an initial charter pursuant to paragraph (b-1)
    11  of subdivision nine of this section in a school district  located  in  a
    12  city  with  a population of one million or more, the total enrollment of
    13  students attending charter schools  within  the  community  district  in
    14  which  the  charter school will be located in the base year is less than
    15  or equal to fifty-five percent of the  total  public  school  enrollment
    16  attending within such community district in the base year[.];
    17    (f) the application for the charter school is approved by the board of
    18  education  of  the  school  district  where  the charter school is to be
    19  located; and
    20    (g) the charter entity shall not approve  an  application  that  would
    21  have the effect of increasing the racial isolation of a school district.
    22    § 6. Subdivision 5-b of section 2852 of the education law, as added by
    23  chapter 4 of the laws of 1998, is amended to read as follows:
    24    5-b. If the board of regents returns a proposed charter to the charter
    25  entity pursuant to the provisions of subdivision five-a of this section,
    26  such  charter  entity shall reconsider the proposed charter, taking into
    27  consideration the comments and recommendation of the board  of  regents.
    28  Thereafter,  the  charter  entity shall resubmit the proposed charter to
    29  the board of regents with modifications,  provided  that  the  applicant
    30  consents in writing to such modifications, resubmit the proposed charter
    31  to  the  board  of regents without modifications with an explanation why
    32  the modifications are not being made, or abandon the  proposed  charter.
    33  The board of regents shall review each such resubmitted proposed charter
    34  in  accordance  with  the  provisions  of  subdivision  five-a  of  this
    35  section[; provided, however, that it shall be the duty of the  board  of
    36  regents to approve and issue a proposed charter resubmitted by the char-
    37  ter  entity  described  in paragraph (b) of subdivision three of section
    38  twenty-eight hundred fifty-one of this article within thirty days of the
    39  resubmission of such proposed charter or such proposed charter shall  be
    40  deemed approved and issued at the expiration of such period].
    41    §  7. Subdivision 7 of section 2852 of the education law is amended by
    42  adding a new paragraph (c) to read as follows:
    43    (c) When a revision of a charter involves an  increase  in  enrollment
    44  which  brings total enrollment in charter schools in the school district
    45  of location above five percent the revision shall be denied  unless  the
    46  school  district  of  location approves the revision or the residents of
    47  the school district approve the revision through  a  referendum  of  the
    48  eligible  voters  to be held in conjunction with the annual budget vote.
    49  For purposes of this paragraph in a city  having  a  population  of  one
    50  million  or  more the school district of location shall be the community
    51  school district where the charter school is located.
    52    § 8. Subdivision 10 of section 2852 of the education law, as added  by
    53  section  3  of part D-2 of chapter 57 of the laws of 2007, is amended to
    54  read as follows:
    55    10. Except in the case of a charter school formed by a school district
    56  as a charter entity pursuant to paragraph (a) of  subdivision  three  of

        A. 7257                             4
 
     1  section twenty-eight hundred fifty-one of this article, a charter school
     2  formed  by  approval  of  the regents or by operation of law on or after
     3  [March] January fifteenth in any school year shall not commence instruc-
     4  tion until July of the second school year next following.
     5    §  9.  Subdivision 2 of section 2853 of the education law, as added by
     6  chapter 4 of the laws of 1998, is amended to read as follows:
     7    2. The board of regents and charter entity shall oversee  each  school
     8  approved  by  such  entity,  and may visit, examine into and inspect any
     9  charter school, including the records of such school,  under  its  over-
    10  sight.  Oversight  by a charter entity and the board of regents shall be
    11  sufficient to ensure that the charter school is in compliance  with  all
    12  applicable  laws,  regulations  and charter provisions.   The department
    13  shall include charter schools in any review or audit of state assessment
    14  administration or scoring.
    15    § 10. Paragraph (a) of subdivision 3 of section 2853 of the  education
    16  law,  as  amended by chapter 101 of the laws of 2010, is amended to read
    17  as follows:
    18    (a) A charter school may be located in  part  of  an  existing  public
    19  school  building,  in space provided on a private work site, in a public
    20  building or in any other suitable location, provided, however, a charter
    21  school shall not be located in any part of an existing  school  building
    22  when  such  sharing would impact the public school's ability to meet the
    23  class size targets established pursuant to section two hundred  eleven-d
    24  of  this  chapter.    Provided,  however, before a charter school may be
    25  located in part of an existing public school building, the charter enti-
    26  ty shall provide notice to the parents or guardians of the students then
    27  enrolled in the existing school building and shall hold a public hearing
    28  for purposes of discussing the location of the charter school. A charter
    29  school may own, lease or rent its space.
    30    § 11. Subdivision 3 of section 2853 of the education law is amended by
    31  adding two new paragraphs (f) and (g) to read as follows:
    32    (f) Notwithstanding any law to the contrary, any capital facility,  or
    33  other  improvements  made in public school buildings or equipment with a
    34  period of probable usefulness of five or  more  years,  with  public  or
    35  private funds, to accommodate charter schools, shall require matching or
    36  comparable  improvements  be  made for other district schools located in
    37  the same building.
    38    (g) Notwithstanding any law to the contrary, any construction or capi-
    39  tal improvement made in accordance with this article shall  be  made  in
    40  accordance with and subject to the provisions of articles eight and nine
    41  of the labor law.
    42    §  12.  Paragraphs (c) and (e) of subdivision 1 of section 2854 of the
    43  education law, paragraph (c) as amended by section 10-b  of  part  A  of
    44  chapter  56  of the laws of 2014 and paragraph (e) as added by chapter 4
    45  of the laws of 1998, are amended to read as follows:
    46    (c) A charter school shall be subject to  the  financial  audits,  the
    47  audit  procedures,  and the audit requirements set forth in the charter,
    48  and [shall] may be subject to audits of  the  comptroller  of  the  city
    49  school  district  of the city of New York for charter schools located in
    50  New York city, [and] to the audits of the comptroller of  the  state  of
    51  New  York  for charter schools located in the rest of the state, [at his
    52  or her discretion] or the charter entity, with respect to  the  school's
    53  financial  operations. Such procedures and standards shall be consistent
    54  with generally accepted  accounting  and  audit  standards.  Independent
    55  fiscal audits shall be required at least once annually.

        A. 7257                             5
 
     1    (e)  A  charter  school shall be subject to the provisions of articles
     2  six and seven of the public officers law in the same  manner  as  public
     3  school districts.
     4    § 13. Subdivision 1 of section 2854 of the education law is amended by
     5  adding a new paragraph (g) to read as follows:
     6    (g)  A  charter  school  shall be subject to the provisions of section
     7  eight hundred six of the general municipal law.
     8    § 14. Subdivision 2 of section 2854 of the education law, as added  by
     9  chapter  4  of the laws of 1998, paragraph (a) as amended by chapter 101
    10  of the laws of 2010, and paragraph  (b)  as  amended  by  section  3  of
    11  subpart  A  of  part  B of chapter 20 of the laws of 2015, is amended to
    12  read as follows:
    13    2. Admissions; enrollment; students.  (a) A charter  school  shall  be
    14  nonsectarian  in its programs, admission policies, employment practices,
    15  and all other operations and shall not charge tuition or fees;  provided
    16  that  a charter school may require the payment of fees on the same basis
    17  and to the same extent as other public schools. A charter  school  shall
    18  not  discriminate  against  any student, employee or any other person on
    19  the basis of ethnicity, national origin, gender, or  disability  or  any
    20  other  ground  that  would be unlawful if done by a school. Admission of
    21  students shall not be limited on  the  basis  of  intellectual  ability,
    22  measures of achievement or aptitude, athletic ability, disability, race,
    23  creed,  gender, national origin, religion, or ancestry; provided, howev-
    24  er, that nothing in this article  shall  be  construed  to  prevent  the
    25  establishment  of  a  single-sex  charter  school  or  a  charter school
    26  designed to provide expanded learning opportunities for students at-risk
    27  of academic failure or students with disabilities and  English  language
    28  learners;  and  provided, further, that the charter school shall [demon-
    29  strate good faith efforts to] attract and retain a comparable or greater
    30  enrollment of students with disabilities, English language learners, and
    31  students who are eligible applicants for  the  free  and  reduced  price
    32  lunch  program when compared to the enrollment figures for such students
    33  in the school district in which the charter school is  located.    If  a
    34  charter  school  is not successful in attracting a comparable or greater
    35  enrollment of students with disabilities and limited English  proficient
    36  students  as compared to the enrollment figures for such students in the
    37  school district in which the charter  school  is  located  such  charter
    38  school shall provide the chartering entity with a plan for improving the
    39  enrollment  of  such  students  in the following year. Failure to comply
    40  with this requirement for two consecutive  years  shall  be  subject  to
    41  revocation  in  accordance  with subdivision one of section twenty-eight
    42  hundred fifty-five of this article. A charter shall not be issued to any
    43  school that would be wholly or in part under the control or direction of
    44  any religious denomination, or in  which  any  denominational  tenet  or
    45  doctrine would be taught.
    46    (b) Any child who is qualified under the laws of this state for admis-
    47  sion  to a public school is qualified for admission to a charter school.
    48  Applications for admission to a charter school shall be submitted  on  a
    49  uniform  application  form  created  by the department and shall be made
    50  available by a charter school in languages predominately spoken  in  the
    51  community  in  which  such  charter  school is located. The school shall
    52  enroll each eligible student who submits a  timely  application  by  the
    53  first  day of April each year, unless the number of applications exceeds
    54  the capacity of the grade level or building.  In  such  cases,  students
    55  shall  be  accepted from among applicants by a random selection process,
    56  provided, however, that an enrollment preference shall  be  provided  to

        A. 7257                             6
 
     1  pupils when the charter school is located within one mile of the pupils'
     2  residence,  pupils  returning to the charter school in the second or any
     3  subsequent year of operation and pupils residing in the school  district
     4  in  which  the charter school is located, and siblings of pupils already
     5  enrolled in the charter school and students on free lunch, and  students
     6  with  disabilities, and students with limited English proficiency. Pref-
     7  erence may also be provided to children  of  employees  of  the  charter
     8  school  or  charter management organization, provided that such children
     9  of employees may constitute no more than fifteen percent of the  charter
    10  school's  total enrollment. The commissioner shall establish regulations
    11  to require that the random selection process conducted pursuant to  this
    12  paragraph  be  performed  in  a  transparent and equitable manner and to
    13  require that the time and place  of  the  random  selection  process  be
    14  publicized  in  a manner consistent with the requirements of section one
    15  hundred four of the public officers law and be open to the  public.  For
    16  the  purposes  of  this paragraph and paragraph (a) of this subdivision,
    17  the school district in which the charter school is located  shall  mean,
    18  for  the  city  school  district  of the city of New York, the community
    19  district in which the charter school is located.  The charter entity  is
    20  responsible  for  ensuring the selection process is conducted in accord-
    21  ance with this paragraph. If the charter entity determines  the  process
    22  is  not  in  compliance  with  this  paragraph, the charter entity shall
    23  conduct the process.
    24    (c) A charter school shall serve one or more of the grades one through
    25  twelve, and shall limit admission to  pupils  within  the  grade  levels
    26  served. Nothing herein shall prohibit a charter school from establishing
    27  a kindergarten program.
    28    (d)  A  student  may  withdraw  from  a charter school at any time and
    29  enroll in a public school. A charter school must provide a report to the
    30  chartering entity each year indicating the number  of  students  leaving
    31  the  charter  school, the months in which the students leave the school,
    32  the reason the students leave the school and the school the  student  is
    33  currently  attending.  A  charter  school  may  refuse  admission to any
    34  student who has been expelled or suspended from a  public  school  until
    35  the  period  of  suspension  or  expulsion  from  the  public school has
    36  expired, consistent with the requirements of due process.
    37    § 15. Paragraphs (b-1), (c) and (c-1) of subdivision 3 of section 2854
    38  of the education law, paragraph (b-1) as amended by section  6  of  part
    39  D-2  of  chapter 57 of the laws of 2007, and paragraphs (c) and (c-1) as
    40  added by chapter 4 of the laws of 1998, are amended to read as follows:
    41    (b-1) The employees of a charter school [that is not a conversion from
    42  an existing public school] shall [not] be deemed members  of  [any]  the
    43  existing collective bargaining unit representing employees of the school
    44  district  in which the charter school is located, and the charter school
    45  and its employees shall [not] be  subject  to  any  existing  collective
    46  bargaining  agreement  between  the  school  district and its employees.
    47  [Provided, however, that (i) if the student enrollment  of  the  charter
    48  school  on  the  first day on which the charter school commences student
    49  instruction exceeds two hundred fifty or if the  average  daily  student
    50  enrollment  of  such  school  exceeds  two hundred fifty students at any
    51  point during the first two years  after  the  charter  school  commences
    52  student  instruction,  all  employees of the school who are eligible for
    53  representation under article fourteen of the civil service law shall  be
    54  deemed  to  be represented in a separate negotiating unit at the charter
    55  school by the same employee organization, if any, that  represents  like
    56  employees  in  the  school  district  in  which  such  charter school is

        A. 7257                             7

     1  located; (ii) the provisions of subparagraph (i) of this  paragraph  may
     2  be  waived  in  up  to  ten charters issued on the recommendation of the
     3  charter entity set forth  in  paragraph  (b)  of  subdivision  three  of
     4  section  twenty-eight  hundred  fifty-one  of  this  article;  (iii) the
     5  provisions of subparagraph (i) of this paragraph shall not be applicable
     6  to the renewal or extension of a  charter;  and  (iv)  nothing  in  this
     7  sentence  shall  be construed to subject a charter school subject to the
     8  provisions of this paragraph or its employees to any collective bargain-
     9  ing agreement between any public school district and its employees or to
    10  make the employees of such charter school part of any  negotiating  unit
    11  at such school district. The charter school may, in its sole discretion,
    12  choose  whether  or  not  to  offer the terms of any existing collective
    13  bargaining to school employees.] Provided, however, that a  majority  of
    14  the members of a negotiating unit within a charter school may modify, in
    15  writing,  a  collective bargaining agreement for the purposes of employ-
    16  ment in the charter school with the approval of the board of trustees of
    17  the charter school.
    18    (c) The employees of the charter school [may] shall be deemed  employ-
    19  ees of the local school district for the purpose of providing retirement
    20  benefits,  including  membership  in the teachers' retirement system and
    21  other retirement systems open to employees of public schools. The finan-
    22  cial contributions for such benefits shall be the responsibility of  the
    23  charter  school and the school's employees. The commissioner, in consul-
    24  tation with the comptroller, shall develop regulations to implement  the
    25  provisions  of this paragraph in a manner that allows charter schools to
    26  provide retirement benefits to its employees in the same manner as other
    27  public school employees.
    28    (c-1) Reasonable access. (i) If employees of the  charter  school  are
    29  not  represented,  any charter school chartered pursuant to this article
    30  must afford reasonable access to any employee  organization  during  the
    31  reasonable proximate period before any representation question is raised
    32  in the same manner as any public employer; or
    33    (ii)  If  the  employee  organization  is  a challenging organization,
    34  reasonable access must be provided to any organization seeking to repre-
    35  sent employees beginning with a date reasonably proximate to a challenge
    36  period. Reasonableness is defined, at a minimum, as access equal to that
    37  provided to the incumbent organization.
    38    § 16. Subdivision 1 of section 2855 of the education law,  as  amended
    39  by chapter 101 of the laws of 2010, is amended to read as follows:
    40    1.  The charter entity, or the board of regents, [may] shall terminate
    41  a charter upon any of the following grounds:
    42    (a) When a charter school's outcome  on  student  assessment  measures
    43  adopted  by  the board of regents falls below the level that would allow
    44  the commissioner to revoke the registration of  another  public  school,
    45  and student achievement on such measures [has not shown improvement] has
    46  not met annual yearly progress over the preceding three school years;
    47    (b) Serious violations of law;
    48    (c)  Material  and  substantial  violation  of  the charter, including
    49  fiscal mismanagement and failure to meet student performance targets;
    50    (d) When the public employment relations board makes  a  determination
    51  that the charter school demonstrates a practice and pattern of egregious
    52  and  intentional  violations  of  subdivision one of section two hundred
    53  nine-a of the civil service law involving interference with or discrimi-
    54  nation against employee rights  under  article  fourteen  of  the  civil
    55  service law; [or]

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     1    (e)  Repeated failure to comply with the requirement to meet or exceed
     2  enrollment and retention targets of students with disabilities,  English
     3  language learners, and students who are eligible applicants for the free
     4  and  reduced  price lunch program pursuant to targets established by the
     5  board of regents or the board of trustees of the state university of New
     6  York,  as applicable. Provided, however, if no grounds for terminating a
     7  charter are established pursuant to this section other than pursuant  to
     8  this  paragraph,  and  the  charter school demonstrates that it has made
     9  extensive  efforts  to  recruit  and  retain  such  students,  including
    10  outreach  to parents and families in the surrounding communities, widely
    11  publicizing the lottery for such school,  and  efforts  to  academically
    12  support such students in such charter school, then the charter entity or
    13  board of regents may retain such charter[.]; or
    14    (f)  Failure  to enroll a comparable percentage of students qualifying
    15  for free lunch, students with disabilities and English language learners
    16  for two consecutive years.
    17    § 17. Paragraph (b) of subdivision 1 of section 2856 of the  education
    18  law,  as  amended  by section 4 of part YYY of chapter 59 of the laws of
    19  2017, is amended and a new paragraph (a-1) is added to read as follows:
    20    (a-1) For the two thousand twenty-five--two thousand twenty-six school
    21  year and each school year thereafter the state  shall  reimburse  school
    22  districts  for  the local share of the charter school tuition payment of
    23  any students attending a charter school in the June payment required  by
    24  section  three  thousand  six hundred nine-a of this chapter. Such local
    25  share shall be calculated by deducting from the charter  school  tuition
    26  payment the per pupil foundation aid amount attributable to such pupil.
    27    (b)  The school district shall also pay directly to the charter school
    28  any federal or state aid attributable to a  student  with  a  disability
    29  attending charter school in proportion to the level of services for such
    30  student  with  a disability that the charter school provides directly or
    31  indirectly. Notwithstanding anything in this section  to  the  contrary,
    32  amounts  payable  pursuant to this subdivision from state or local funds
    33  may be reduced pursuant to an agreement between the school and the char-
    34  ter entity set forth in the charter.  Payments  made  pursuant  to  this
    35  subdivision  shall  be  made by the school district in six substantially
    36  equal installments each year beginning on the first business day of July
    37  and every two months thereafter. Amounts payable under this  subdivision
    38  shall  be  determined  by the commissioner. Amounts payable to a charter
    39  school in its first year of operation shall be based on the  projections
    40  of initial-year enrollment set forth in the charter until actual enroll-
    41  ment data is reported to the school district by the charter school. Such
    42  actual enrollment shall be reported to the school district prior to each
    43  payment  following  the  initial  July  payment  which shall be based on
    44  projected enrollment. Such projections  shall  be  reconciled  with  the
    45  actual  enrollment  as  actual enrollment data is so reported and at the
    46  end of the school's first year of operation  and  each  subsequent  year
    47  based  on a final report of actual enrollment by the charter school, and
    48  any necessary adjustments resulting from such final report shall be made
    49  to payments during the school's following year of operation.
    50    § 18. Subdivisions 2 and 3 of  section  2857  of  the  education  law,
    51  subdivision  2  as amended and paragraph (a-1) of subdivision 3 as added
    52  by chapter 101 of the laws of 2010  and  subdivision  3  as  amended  by
    53  section  7 of part D-2 of chapter 57 of the laws of 2007, are amended to
    54  read as follows:
    55    2. Each charter school shall submit to the charter entity and  to  the
    56  board  of regents an annual report. Such report shall be issued no later

        A. 7257                             9
 
     1  than the first day of August of each year for the preceding school  year
     2  and  provided to the school district where the charter school is located
     3  for display on the school district website, and shall be  made  publicly
     4  available  by  such  date  and  shall  be posted on the charter school's
     5  website. The annual report shall be in such form as shall be  prescribed
     6  by the commissioner and shall include at least the following components:
     7    (a)  a charter school report card, which shall include measures of the
     8  comparative academic and fiscal performance of the school, as prescribed
     9  by the commissioner in regulations adopted for such purpose. Such  meas-
    10  ures  shall  include,  but  not be limited to, graduation rates, dropout
    11  rates, performance of students on standardized tests  disaggregated  for
    12  sub-groups,  college  entry rates, total spending per pupil and adminis-
    13  trative spending per pupil.   Such measures  shall  be  presented  in  a
    14  format that is easily comparable to similar public schools. In addition,
    15  the charter school shall ensure that such information is easily accessi-
    16  ble to the community including making it publicly available by transmit-
    17  ting  it to local newspapers of general circulation and making it avail-
    18  able for distribution at board of trustee meetings.
    19    (b) discussion of the progress made towards achievement of  the  goals
    20  set forth in the charter.
    21    (c)  a  certified  financial  statement  setting forth, by appropriate
    22  categories, the revenues from all sources and expenditures including the
    23  salary of the school leader and any other  salaries  in  excess  of  the
    24  reporting  requirements for public school districts contained in section
    25  sixteen hundred eight of this title and contracts with  consultants  and
    26  vendors  for  the  preceding  school  year, including a copy of the most
    27  recent independent fiscal audit of the school and any audit conducted by
    28  the comptroller of the state of New York.
    29    (d) efforts taken by the charter school in the existing  school  year,
    30  and  a  plan  for  efforts to be taken in the succeeding school year, to
    31  meet or exceed enrollment and retention targets  set  by  the  board  of
    32  regents or the board of trustees of the state university of New York, as
    33  applicable,  of  students  with disabilities, English language learners,
    34  and students who are eligible applicants for the free and reduced  price
    35  lunch  program established pursuant to paragraph (e) of subdivision four
    36  of section twenty-eight hundred fifty-one of this article.
    37    3. The board of regents shall report annually by December first to the
    38  governor, the temporary president of the senate, and the speaker of  the
    39  assembly and the public the following information:
    40    (a)  The  number, distribution, and a brief description of new charter
    41  schools established during the preceding year;
    42    (a-1) A list including the number of charter schools closed during the
    43  preceding year, and a brief description of the reasons therefor  includ-
    44  ing, but not limited to, non-renewal of the charter or revocation of the
    45  charter;
    46    (b)  The department's assessment of the current and projected program-
    47  matic and fiscal impact of charter schools on the delivery  of  services
    48  by school districts;
    49    (c)  The  academic  progress of students attending charter schools, as
    50  measured against comparable public and nonpublic  schools  with  similar
    51  student population characteristics [wherever practicable];
    52    (d)  A list of all actions taken by a charter entity on charter appli-
    53  cation and the rationale for the renewal or revocation of any  charters;
    54  and

        A. 7257                            10
 
     1    (e)  Any other information regarding charter schools that the board of
     2  regents deems necessary including information on best practices of char-
     3  ter schools that improve student performance.
     4    The  format  for this annual report shall be developed in consultation
     5  with representatives of school districts and charter school officials.
     6    § 19. Subparagraph (v) of paragraph a of subdivision 7 of section 1608
     7  of the education law, as amended by chapter 514 of the laws of 2016,  is
     8  amended and a new subparagraph (vi) is added to read as follows:
     9    (v) the projected amount of the unappropriated unreserved fund balance
    10  that  will  be retained if the proposed budget is adopted, the projected
    11  amount of the reserved fund balance, the projected amount of the  appro-
    12  priated  fund  balance,  the  percentage of the proposed budget that the
    13  unappropriated unreserved fund balance represents, the  actual  unappro-
    14  priated  unreserved  fund balance retained in the school district budget
    15  for the preceding school year, and the percentage of the school district
    16  budget for the preceding school  year  that  the  actual  unappropriated
    17  unreserved  fund  balance  represents,  and a schedule of reserve funds,
    18  setting forth the name of  each  reserve  fund,  a  description  of  its
    19  purpose, the balance as of the close of the third quarter of the current
    20  school  district  fiscal year and a brief statement explaining any plans
    21  for the use of each such reserve fund for the  ensuing  fiscal  year[.];
    22  and
    23    (vi) the projected amount of payments to be made to charter schools in
    24  the next school year.
    25    § 20. Subparagraph (v) of paragraph a of subdivision 7 of section 1716
    26  of  the education law, as amended by chapter 514 of the laws of 2016, is
    27  amended and a new subparagraph (vi) is added to read as follows:
    28    (v) the projected amount of the unappropriated unreserved fund balance
    29  that will be retained if the proposed budget is adopted,  the  projected
    30  amount  of the reserved fund balance, the projected amount of the appro-
    31  priated fund balance, the percentage of the  proposed  budget  that  the
    32  unappropriated  unreserved  fund balance represents, the actual unappro-
    33  priated unreserved fund balance retained in the school  district  budget
    34  for  the  preceding  school  year,  a schedule of reserve funds, setting
    35  forth the name of each reserve fund, a description of its  purpose,  the
    36  balance  as  of  the  close  of  the third quarter of the current school
    37  district fiscal year and a brief statement explaining any plans for  the
    38  use  of  each  such  reserve  fund  for  the ensuing fiscal year and the
    39  percentage of the school district budget for the preceding  school  year
    40  that  the  actual  unappropriated unreserved fund balance represents[.];
    41  and (vi) the projected amount of payments to be made to charter  schools
    42  in the next school year.
    43    §  21.  Paragraph  t of subdivision 1 of section 3602 of the education
    44  law is amended by adding a new closing paragraph to read as follows:
    45    Notwithstanding any other  provisions  of  law  to  the  contrary,  in
    46  computing approved operating expense pursuant to this paragraph for city
    47  school  districts  of  those cities having a population in excess of one
    48  hundred twenty-five thousand but less than one million; an amount  equal
    49  to  (i) the amount computed for the school district for the two thousand
    50  six--two thousand seven school year pursuant to former subdivision thir-
    51  ty-seven of this section as this section existed on June thirtieth,  two
    52  thousand seven, (ii) the state funds which such district received in the
    53  two  thousand  six--two  thousand  seven  school  year for magnet school
    54  grants to public schools, and (iii) the state funds which such  district
    55  received  in  the  two  thousand six--two thousand seven school year for
    56  teacher support, shall be accounted for in the same way as  state  funds

        A. 7257                            11
 
     1  received  for  such  purpose in the two thousand six--two thousand seven
     2  school year.
     3    §  22. This act shall take effect immediately; provided, however, that
     4  the amendments to subdivision 1 of section 2856  of  the  education  law
     5  made by section seventeen of this act shall not affect the expiration of
     6  such subdivision and shall expire therewith.
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