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A06884 Summary:

BILL NOA06884
 
SAME ASSAME AS S07462
 
SPONSORBenedetto
 
COSPNSRGriffin, Otis, Romero, Simon
 
MLTSPNSR
 
Amd Ed L, generally; amd §179-q, St Fin L
 
Provides additional requirements for approval of charter school applications; applies additional prohibitions to charter schools; requires certain financial disclosures by charter schools; requires charter schools to comply with provisions relating to construction, repair or demolition of school facilities; relates to admission of students.
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A06884 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6884
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 18, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
          Committee on Education
 
        AN ACT to amend the education law and the state finance 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.  Subdivision  1  of  section 2851 of the education law, as
     2  amended by chapter 101 of the laws  of  2010,  is  amended  to  read  as
     3  follows:
     4    1.  An  application  to establish a charter school may be submitted by
     5  teachers, parents, school administrators,  community  residents  or  any
     6  combination  thereof.  Such application may be filed in conjunction with
     7  a college, university, museum, educational  institution,  not-for-profit
     8  corporation  exempt from taxation under paragraph 3 of subsection (c) of
     9  section 501 of the internal  revenue  code  or  for-profit  business  or
    10  corporate  entity  authorized to do business in New York state. Provided
    11  however, for-profit business or corporate entities shall not be eligible
    12  to submit an application to  establish  a  charter  school  pursuant  to
    13  subdivision  nine-a  of  section  twenty-eight hundred fifty-two of this
    14  article, or operate or manage a charter  school  for  a  charter  issued
    15  pursuant to subdivision nine-a of section twenty-eight hundred fifty-two
    16  of  this  article. For charter schools established in conjunction with a
    17  for-profit or not-for-profit business or corporate entity,  the  charter
    18  shall specify the extent of the entity's participation in the management
    19  and operation of the school.
    20    §  2.  Paragraph (h) of subdivision 2 of section 2851 of the education
    21  law, as added by chapter 4 of the laws of 1998, is amended  to  read  as
    22  follows:
    23    (h)  The  rules  and procedures by which students may be disciplined[,
    24  including but not limited to expulsion or suspension  from  the  school,
    25  which  shall be consistent with the requirements of due process and with

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07994-01-5

        A. 6884                             2

     1  federal laws and regulations governing the placement  of  students  with
     2  disabilities] shall be in accordance with the provisions of subdivisions
     3  two-a,  three and three-a of section thirty-two hundred fourteen of this
     4  chapter.  The  charters  of  all  charter schools that were issued on or
     5  before July first, two thousand twenty-five shall be deemed  amended  to
     6  require  compliance with the procedures set forth in subdivisions two-a,
     7  three and  three-a  of  section  thirty-two  hundred  fourteen  of  this
     8  chapter.
     9    §  3.  Paragraph (e) of subdivision 4 of section 2851 of the education
    10  law, as added by chapter 101 of the laws of 2010, is amended to read  as
    11  follows:
    12    (e)  The  means  by  which  the charter school will meet or exceed the
    13  enrollment [and retention targets as prescribed by the board of  regents
    14  or  the board of trustees of the state university of New York, as appli-
    15  cable, of students with disabilities,  English  language  learners,  and
    16  students  who  are  eligible  applicants  for the free and reduced price
    17  lunch program which shall be considered by the charter entity  prior  to
    18  approving such charter school's application for renewal. When developing
    19  such  targets,  the  board  of  regents and the board of trustees of the
    20  state university of New York  shall  ensure  (1)  that  such  enrollment
    21  targets  are  comparable to the enrollment figures of such categories of
    22  students attending the public schools within the school district, or  in
    23  a  city  school district in a city having a population of one million or
    24  more inhabitants, the community school district, in  which  the  charter
    25  school is located; and (2) that such retention targets are comparable to
    26  the  rate  of  retention  of  such  categories of students attending the
    27  public schools within the school district, or in a city school  district
    28  in  a  city  having a population of one million or more inhabitants, the
    29  community school district, in which the proposed charter school would be
    30  located] requirements of subparagraph (ii) of paragraph (b) of  subdivi-
    31  sion two of section twenty-eight hundred fifty-four of this article.
    32    § 4. Subdivision 2 of section 2852 of the education law, as amended by
    33  section  4-a of part A of chapter 56 of the laws of  2023, and the clos-
    34  ing paragraph as amended by section 2 of part D-2 of chapter 57  of  the
    35  laws of 2007, is amended to read as follows:
    36    2.  An  application  for a charter school shall not be approved unless
    37  the charter entity finds in writing that:
    38    (a) the charter school described in the application meets the require-
    39  ments set out in this article and all other applicable laws,  rules  and
    40  regulations;
    41    (b) the applicant can demonstrate the ability to operate the school in
    42  an educationally and fiscally sound manner;
    43    (c) granting the application is likely to improve student learning and
    44  achievement  and  materially further the purposes set out in subdivision
    45  two of section twenty-eight hundred fifty of this article;
    46    (d) in a school  district  where  the  total  enrollment  of  resident
    47  students attending charter schools in the base year is greater than five
    48  percent  of the total public school enrollment of the school district in
    49  the base year (i) granting the  application  would  have  a  significant
    50  educational  benefit  to  the  students  expected to attend the proposed
    51  charter school [or] and (ii) the school district in  which  the  charter
    52  school will be located consents to such application; and
    53    (e)  for applicants for an initial charter pursuant to paragraph (b-1)
    54  of subdivision nine of this section in a school district  located  in  a
    55  city  with  a population of one million or more, the total enrollment of
    56  students attending charter schools  within  the  community  district  in

        A. 6884                             3
 
     1  which  the  charter school will be located in the base year is less than
     2  or equal to fifty-five percent of the  total  public  school  enrollment
     3  attending within such community district in the base year.
     4    In  reviewing  applications,  the charter entity is encouraged to give
     5  preference to applications that demonstrate the  capability  to  provide
     6  comprehensive  learning experiences to students identified by the appli-
     7  cants as at risk of academic failure.  Upon making a   determination  of
     8  whether an application for a charter school shall be approved, the char-
     9  ter  entity  shall  provide detailed written findings related to each of
    10  the requirements in this subdivision, which shall be made  available  to
    11  the  charter  school applicant, board of regents and the school district
    12  in which the proposed charter school would be located.
    13    § 5. Subdivision 5 of section 2852 of the education law, as amended by
    14  chapter 101 of the laws of 2010, is amended to read as follows:
    15    5. (a) Upon approval of an application by a charter entity, the appli-
    16  cant and charter entity shall enter into a proposed  agreement  allowing
    17  the  applicants  to  organize and operate a charter school. Such written
    18  agreement, known as the charter, shall include [(a)] (i) the information
    19  required by subdivision two of section twenty-eight hundred fifty-one of
    20  this article, as modified or supplemented during the  approval  process,
    21  [(b)]  (ii) in the case of charters to be issued pursuant to subdivision
    22  nine-a of this section, information required by such subdivision,  [(c)]
    23  (iii)  a  provision  prohibiting  the charter school from entering into,
    24  renewing or extending any agreement with a for-profit or  not-for-profit
    25  corporate or other business entity for the administration, management or
    26  operation of the charter school unless the agreement requires such enti-
    27  ty  to  provide  state  and local officers having the power to audit the
    28  charter school pursuant to this article  with  access  to  the  entity's
    29  records  relating to the costs of, and fees for, providing such services
    30  to the school, (iv) any other terms or conditions required by applicable
    31  laws, rules and regulations, and [(d)] (v) any  other  terms  or  condi-
    32  tions,  not  inconsistent with law, agreed upon by the applicant and the
    33  charter entity. In addition, the  charter  shall  include  the  specific
    34  commitments of the charter entity relating to its obligations to oversee
    35  and supervise the charter school. Within five days after entering into a
    36  proposed  charter,  the  charter  entity other than the board of regents
    37  shall submit to the board of regents a copy of the charter, the applica-
    38  tion and supporting documentation for final approval and issuance by the
    39  board of regents in accordance with subdivisions five-a  and  five-b  of
    40  this section.
    41    (b) No charter school having a charter that was issued and approved on
    42  or  before  the effective date of this paragraph shall enter into, renew
    43  or extend the duration of any agreement with a  for-profit  or  not-for-
    44  profit  corporate  or  other  business  entity  for  the administration,
    45  management or operation of  the  charter  school  unless  the  agreement
    46  requires  such  entity  to  provide  state and local officers having the
    47  power to audit the charter school pursuant to this article  with  access
    48  to  the entity's records relating to the costs of, and fees for, provid-
    49  ing such services to the school. Any agreement entered into, renewed  or
    50  extended  in  violation  of  this section shall be null, void and wholly
    51  unenforceable, and a violation of this  section  shall  be  grounds  for
    52  revocation  or termination of a charter pursuant to section twenty-eight
    53  hundred fifty-five of this article.
    54    § 6. Subparagraph (i) of paragraph (b) of subdivision 9-a  of  section
    55  2852  of the education law, as amended by section 2 of subpart A of part
    56  B of chapter 20 of the laws of 2015, is amended to read as follows:

        A. 6884                             4
 
     1    (i) that the proposed charter school would meet or exceed the  enroll-
     2  ment  [and  retention  targets, as prescribed by the board of regents or
     3  the board of trustees of the state university of New York,  as  applica-
     4  ble,  of  students  with  disabilities,  English  language learners, and
     5  students  who  are  eligible  applicants  for the free and reduced price
     6  lunch program. When developing such targets, the board  of  regents  and
     7  the  board of trustees of the state university of New York, shall ensure
     8  (1) that such  enrollment  targets  are  comparable  to  the  enrollment
     9  figures  of  such  categories  of  students attending the public schools
    10  within the school district, or in a  city  school  district  in  a  city
    11  having  a  population  of one million or more inhabitants, the community
    12  school district, in which the proposed charter school would be  located;
    13  and  (2)  that  such  retention  targets  are  comparable to the rate of
    14  retention of such categories of students attending  the  public  schools
    15  within  the  school  district,  or  in  a city school district in a city
    16  having a population of one million or more  inhabitants,  the  community
    17  school  district, in which the proposed charter school would be located]
    18  requirements of subparagraph (ii) of paragraph (b) of subdivision two of
    19  section twenty-eight hundred fifty-four of this article; and
    20    § 7. Section 2853 of the education law is  amended  by  adding  a  new
    21  subdivision 2-b to read as follows:
    22    2-b. In any case where a charter school enters into, renews or extends
    23  any  agreement with a for-profit or not-for-profit business or corporate
    24  entity for the administration, management  or  operation  of  a  charter
    25  school,  the  charter  school is required to have a formal contract with
    26  such entity. Any such contract shall be reviewed  and  approved  by  the
    27  charter entity.
    28    §  8.  Paragraph (a) of subdivision 3 of section 2853 of the education
    29  law, as amended by chapter 101 of the laws of 2010, is amended  to  read
    30  as follows:
    31    (a)  A  charter  school  may  be located in part of an existing public
    32  school building, in space provided on a private work site, in  a  public
    33  building  or in any other suitable location. Provided, however, before a
    34  charter school may be located in  part  of  an  existing  public  school
    35  building,  the  charter  entity  shall  provide notice to the parents or
    36  guardians of the students then enrolled in the existing school  building
    37  and  shall hold a public hearing for purposes of discussing the location
    38  of the charter school.  All  contracts  entered  into  by  such  charter
    39  school,  or  any  education  corporation  organized to operate a charter
    40  school, or any other public entity, including the state, a public  bene-
    41  fit  corporation, municipal corporation, or any private entity acting on
    42  behalf of any of these  entities,  involving  the  construction,  recon-
    43  struction,  demolition,  excavation, rehabilitation, repair, renovation,
    44  or alteration of any charter school facility shall  be  subject  to  the
    45  requirements  of  section one hundred three of the general municipal law
    46  and articles eight and nine of the labor law. A charter school may  own,
    47  lease or rent its space.
    48    §  9.  The  opening  paragraph  and subparagraph 1 of paragraph (e) of
    49  subdivision 3 of section 2853 of the education law, as added by  section
    50  5  of  part BB of chapter 56 of the laws of 2014, are amended to read as
    51  follows:
    52    [In] Except as provided in subparagraph seven  of  this  paragraph,  a
    53  city  school  district  in  a city having a population of one million or
    54  more inhabitants, charter schools that  first  commence  instruction  or
    55  that require additional space due to an expansion of grade level, pursu-
    56  ant  to this article, approved by their charter entity for the two thou-

        A. 6884                             5
 
     1  sand fourteen--two  thousand  fifteen  school  year  or  thereafter  and
     2  request  co-location in a public school building and demonstrates to the
     3  city school district that the charter school does not have the financial
     4  capacity  to  procure  adequate  facilities  shall be provided access to
     5  facilities pursuant to this paragraph  for  such  charter  schools  that
     6  first  commence  instruction  or that require additional space due to an
     7  expansion of grade level, pursuant to this article,  approved  by  their
     8  charter entity for those grades newly provided.
     9    (1) Notwithstanding any other provision of law to the contrary, within
    10  the  later  of  (i) five months after a charter school's written request
    11  for co-location and (ii) provided that  a  charter  school  demonstrates
    12  that  it  lacks  the  financial capacity to procure adequate facilities,
    13  thirty days after the charter school's charter is approved by its  char-
    14  ter  entity, the city school district shall either: (A) offer at no cost
    15  to the charter school a co-location site in  a  public  school  building
    16  approved  by the board of education as provided by law, or (B) offer the
    17  charter school space in a privately owned or other publicly owned facil-
    18  ity at the expense of the city school district and at  no  cost  to  the
    19  charter school for three years.  The space must be reasonable, appropri-
    20  ate  and comparable and in the community school district to be served by
    21  the charter school and otherwise in reasonable proximity.
    22    § 10. Paragraph (e) of subdivision 3 of section 2853 of the  education
    23  law is amended by adding a new subparagraph 7 to read as follows:
    24    (7)(A) No charter school that, either alone or in combination with any
    25  charter  affiliate,  has  any  direct or indirect interest in, or may be
    26  entitled to receive any beneficial interest from, any asset or assets of
    27  any kind or nature that alone or combined have  a  value  exceeding  one
    28  million  dollars, shall be offered or entitled to receive:  (i) a co-lo-
    29  cation site in a public school building at no cost; or (ii) a space in a
    30  privately or publicly owned facility at the expense of the  city  school
    31  district.
    32    (B)  Nothing in this subparagraph shall prohibit a charter school from
    33  receiving a co-location in a public building at fair market value unless
    34  doing so would negatively impact the size of classes in any other school
    35  in the building.
    36    (C) As used in this subparagraph the term "charter  affiliate"  means:
    37  (i)  any entity that is directly or indirectly controlled by, in control
    38  of, or under common control with, the charter school or (ii) any  entity
    39  that  provides  management,  fundraising or other administrative support
    40  services to the charter school.
    41    § 11. Paragraph (c) of subdivision 4 of section 2853 of the  education
    42  law,  as  amended  by  section 1 of part BB of chapter 56 of the laws of
    43  2014, is amended to read as follows:
    44    (c) A charter school may contract with the governing body of a  public
    45  college  or university for the use of a school building and grounds, the
    46  operation and maintenance thereof. Any such contract shall provide  such
    47  services  or facilities at [cost] fair market value.  [A school district
    48  shall permit any charter school granted approval to  co-locate,  to  use
    49  such services and facilities without cost.]
    50    § 12. Section 2853 of the education law is amended by adding three new
    51  subdivisions 5, 6 and 7 to read as follows:
    52    5. Disclosure. (a) A charter school shall report:
    53    (i)  by the fifteenth day of February of each calendar year, the name,
    54  address and total compensation paid to each person serving as a  charter
    55  executive in the previous calendar year; and

        A. 6884                             6
 
     1    (ii)  within thirty days of receipt, the name and address of any indi-
     2  vidual, corporation, association, or entity  providing  a  contribution,
     3  gift,  loan,  advance  or deposit of one thousand dollars or more to the
     4  charter school or charter affiliate and the amount of each such contrib-
     5  ution, gift, loan, advance or deposit.
     6    (b)  If  a  charter  school  either alone or together with any charter
     7  affiliate has any direct or indirect interest in, or may be entitled  to
     8  receive  any  beneficial interest in, any asset or assets of any kind or
     9  nature, alone or together,  with  a  value  in  excess  of  one  million
    10  dollars, the charter school shall:
    11    (i)  ensure  that  the  financial statements of the charter school and
    12  each charter affiliate conform to and are reported according to general-
    13  ly accepted accounting principles; and
    14    (ii) ensure that the financial statements of the  charter  school  and
    15  any  charter affiliate are audited in accordance with generally accepted
    16  auditing standards by an independent certified public accountant  or  an
    17  independent public accountant, that such audit receives an "unqualified"
    18  opinion  as  to,  among other things, compliance with generally accepted
    19  accounting principles and that  such  audit  is  completed  within  nine
    20  months of the conclusion of the fiscal year.
    21    (c)  If  a  charter  school  either alone or together with any charter
    22  affiliate has any direct or indirect interest in, or may be entitled  to
    23  receive  any  beneficial interest in, any asset or assets of any kind or
    24  nature, alone or together,  with  a  value  in  excess  of  one  million
    25  dollars,  it  shall also report by the fifteenth day of February of each
    26  ensuing calendar year the following:
    27    (i) the most recent audited financial statements of the charter school
    28  and any charter affiliate which shall conform to and be reported accord-
    29  ing to generally accepted accounting principles;
    30    (ii) the most recent auditor's report on the financial  statements  of
    31  the charter school and any charter affiliate;
    32    (iii)  the "unqualified" opinion received from the auditor of the most
    33  recent financial statements as to, among other things,  compliance  with
    34  generally accepted accounting principles; and
    35    (iv)  any compensation or remuneration, whether paid or given, includ-
    36  ing but not limited to salary, bonus, and deferred compensation and  any
    37  benefit  having  monetary  value,  including but not limited to, perqui-
    38  sites, fringe benefits, employer contributions to  defined  contribution
    39  retirement  plans and other retirement or severance benefits received by
    40  a charter executive from any source.
    41    (d) (i) Each report required by this subdivision shall be  accompanied
    42  by  a statement, under oath, by the chairperson of the school's board of
    43  trustees or other appropriate member of the  board  of  trustees,  that,
    44  after  the  due inquiry, the reports are true and correct to the best of
    45  such person's knowledge and have been provided to  each  member  of  the
    46  school's board of trustees.
    47    (ii) A charter school to which paragraphs (b) and (c) of this subdivi-
    48  sion do not apply shall, by the fifteenth day of February of each calen-
    49  dar  year, submit a statement as part of its report pursuant to subpara-
    50  graph (ii) of paragraph (a) of this  subdivision,  under  oath,  by  the
    51  chairperson  of  the  school's  board  of  trustees or other appropriate
    52  member of the board of trustees, that, after the due inquiry, the  char-
    53  ter  school either alone or together with any charter affiliate does not
    54  have any direct or indirect interest in or may be  entitled  to  receive
    55  any  beneficial  interest  in any asset or assets of any kind or nature,
    56  alone or together, with a value in excess of one million dollars.

        A. 6884                             7
 
     1    (e) Any report required pursuant to this subdivision shall be made  to
     2  the  board  of regents, the school's charter entity, and the comptroller
     3  of the city of New York for charter schools located in New York city and
     4  the comptroller of the state of New York  for  charter  schools  located
     5  outside of the city of New York. The commissioner shall ensure that such
     6  report is made publicly available via the department's official internet
     7  website within five days of its receipt.
     8    (f)  A  charter school's failure to comply with the provisions of this
     9  subdivision shall be a very significant factor  in  determining  whether
    10  the charter entity or the board of regents terminates the school's char-
    11  ter.
    12    (g) As used in this subdivision:
    13    (i) "total compensation" shall include: (A) any compensation or remun-
    14  eration, whether paid or given, by or on behalf of the charter school or
    15  any charter affiliate, for services rendered to, on behalf of, or at the
    16  request  of  the  charter  school,  including but not limited to salary,
    17  bonus, and deferred compensation and (B)  any  benefit  having  monetary
    18  value  provided  by  or  on  behalf of the charter school or any charter
    19  affiliate, including but not limited to, perquisites,  fringe  benefits,
    20  employer  contributions  to  defined  contribution  retirement plans and
    21  other retirement or severance benefits.
    22    (ii) "charter affiliate" means: (A) any entity that  is,  directly  or
    23  indirectly,  controlled  by, in control of, or under common control with
    24  the charter school or (B) any entity or affiliate thereof that  provides
    25  management, fundraising, or other administrative support services to the
    26  charter school.
    27    (iii)  "charter  executive"  means: (A) an officer, director, trustee,
    28  consultant, supervisory employee of a charter school or  charter  affil-
    29  iate  or  (B)  anyone  who exerts operational or managerial influence or
    30  control over the school including, but  not  limited  to,  influence  or
    31  control over the school through a charter management company.
    32    6.  Executive  compensation.  (a)  No charter school shall provide any
    33  compensation to any individual who is also an officer,  director,  trus-
    34  tee, consultant, or employee of a charter affiliate or to any individual
    35  who  exerts  operational  or  managerial  influence  or control over the
    36  school through a charter affiliate.
    37    (b)(i) No charter school or charter affiliate shall permit  the  total
    38  compensation  received  by  a  charter  executive to be greater than one
    39  hundred ninety-nine thousand dollars per annum, including not only state
    40  funds and state-authorized payments but also any other sources of  fund-
    41  ing,  and greater than the seventy-fifth percentile of that compensation
    42  provided to charter executives of  other  charter  schools  and  charter
    43  affiliates  within the same or comparable geographic area as established
    44  by a compensation survey identified,  provided,  or  recognized  by  the
    45  department and the director of the division of the budget.
    46    (ii)  If the department and the director of the division of the budget
    47  find good cause after considering the factors set forth in  subparagraph
    48  (iv) of this paragraph, a waiver of the limit on total compensation that
    49  a  charter executive may receive may be granted, provided, however, that
    50  in no event shall  the  total  compensation  exceed  one  hundred  fifty
    51  percent  of  Level  I of the federal government's Rates of Basic Pay for
    52  the Executive Schedule  promulgated  by  the  United  States  Office  of
    53  Personnel Management.
    54    (iii)  The  application  for  a waiver must be filed no later than the
    55  fifteenth day of February of the year for which the  waiver  is  sought.
    56  The application shall be transmitted in the manner and form specified by

        A. 6884                             8
 
     1  the  department and the director of the division of the budget. A waiver
     2  may be only for the single calendar year in which it is granted.
     3    (iv)  The  following factors, in addition to any other deemed relevant
     4  by the department and the director of the division of the budget,  shall
     5  be considered in the determination of whether good cause exists to grant
     6  a waiver:
     7    (A) the extent to which the executive compensation that is the subject
     8  of  the waiver request is comparable to that given to comparable charter
     9  executives of charter schools or charter affiliates of the same size and
    10  within the same or comparable geographic area;
    11    (B) the extent to which the charter school would be unable to  provide
    12  educational  services  at  the  same  levels of quality and availability
    13  without a waiver of the limit on total compensation that a charter exec-
    14  utive may receive;
    15    (C) the nature, size, and complexity of the charter school or  charter
    16  affiliate's operations;
    17    (D)  the  charter  school  or  charter affiliate's review and approval
    18  process for the total compensation that is the subject  of  the  waiver,
    19  including  whether  such  process  involved a review and approval by the
    20  board of trustees of the school, whether such review was conducted by at
    21  least two independent directors or independent members of the  board  of
    22  trustees,  whether  such  review included an assessment of comparability
    23  data including a compensation survey, and a  contemporaneous  substanti-
    24  ation  of  the  deliberation  and  decision to approve the total compen-
    25  sation;
    26    (E) the qualifications and experience possessed by or required for the
    27  charter executive's position; and
    28    (F) the charter school or charter  affiliate's  efforts,  if  any,  to
    29  secure  a  charter  executive with the same levels of experience, exper-
    30  tise, and skills for the position of  the  charter  executive  at  lower
    31  levels of compensation.
    32    (v)  To  be  considered, an application for such a waiver shall comply
    33  with this paragraph in its entirety.
    34    (vi) Unless additional information has been requested but not received
    35  from the charter school or charter affiliate, a  decision  on  a  timely
    36  submitted  waiver  application  shall  be  provided  no later than sixty
    37  calendar days after submission of the application.
    38    (vii) If granted, a waiver to a  charter  executive  shall  remain  in
    39  effect  for  the  calendar  year  it  is  issued in, but shall be deemed
    40  revoked if:
    41    (A)  the  total  compensation  that  is  the  subject  of  the  waiver
    42  increases; or
    43    (B)  notice  of revocation is provided to the charter executive at the
    44  discretion of the department as a result of additional relevant  circum-
    45  stances.
    46    (viii)  Information  provided  in connection with a waiver application
    47  shall be subject to public disclosure pursuant to  article  six  of  the
    48  public officers law.
    49    (ix)  Where a waiver is granted, the department shall make it publicly
    50  available via the department's official  internet  website  within  five
    51  days.
    52    (c)  No  charter  school  shall use funds received pursuant to section
    53  twenty-eight hundred fifty-six of this article or allow a charter affil-
    54  iate to use funds received from the charter school to  provide  a  total
    55  compensation to a charter executive greater than one hundred ninety-nine
    56  thousand dollars per annum.

        A. 6884                             9

     1    (d)  Failure  to  comply with the provisions of this subdivision shall
     2  result in the assessment of a penalty against the  payor  in  an  amount
     3  equal  to  the  amount  of compensation paid or provided in violation of
     4  this subdivision.
     5    (e)  A  charter school's failure to comply with the provisions of this
     6  subdivision shall be a very significant factor  in  determining  whether
     7  the charter entity or the board of regents terminates the school's char-
     8  ter.
     9    (f) As used in this subdivision:
    10    (i) "total compensation" shall include: (A) any compensation or remun-
    11  eration, whether paid or given, by or on behalf of the charter school or
    12  any charter affiliate, for services rendered to, on behalf of, or at the
    13  request  of  the  charter  school,  including but not limited to salary,
    14  bonus, and deferred compensation and (B)  any  benefit  having  monetary
    15  value  provided  by  or  on  behalf of the charter school or any charter
    16  affiliate, including but not limited to, perquisites,  fringe  benefits,
    17  employer  contributions  to  defined  contribution  retirement plans and
    18  other retirement or severance benefits.
    19    (ii) "charter affiliate" means: (A) any entity that  is,  directly  or
    20  indirectly,  controlled  by, in control of, or under common control with
    21  the charter school or (B) any entity or affiliate thereof that  provides
    22  management, fundraising, or other administrative support services to the
    23  charter school.
    24    (iii)  "charter  executive"  means: (A) an officer, director, trustee,
    25  consultant, supervisory employee of a charter school or  charter  affil-
    26  iate  or  (B)  anyone  who exerts operational or managerial influence or
    27  control over the school including, but is not limited to,  influence  or
    28  control over the school through a charter management company.
    29    7.  Notification  of  disenrollment.    Within five business days of a
    30  student who was enrolled by the charter school ceasing to be enrolled, a
    31  charter school shall notify the superintendent of the district in  which
    32  the charter school is located or, for charter schools located within the
    33  geographic  area  served  by the city school district of the city of New
    34  York, the chancellor of the city school district  of  the  city  of  New
    35  York, of the name of such student.
    36    § 13. Subparagraph 5 of paragraph (e) of subdivision 3 of section 2853
    37  of  the  education law, as amended by section 11 of part A of chapter 54
    38  of the laws of 2016, clause (B) as amended by section 5 of part  YYY  of
    39  chapter 59 of the laws of 2017, is amended to read as follows:
    40    (5) For a new charter school whose charter is granted or for an exist-
    41  ing  charter  school  whose  expansion  of grade level, pursuant to this
    42  article, is approved by their charter entity, if the appeal results in a
    43  determination in favor of the charter school, for  six  years  the  city
    44  school  district  shall pay the charter school (A) for the initial three
    45  years in which aid is payable, an amount attributable to the grade level
    46  expansion or the formation of the new charter school that  is  equal  to
    47  the lesser of:
    48    [(A)]  (i)  the  actual  rental cost of an alternative privately owned
    49  site selected by the charter school or
    50    [(B)] (ii) thirty percent of the product of the charter school's basic
    51  tuition for the current school year and [(i)]  (I)  for  a  new  charter
    52  school  that  first  commences  instruction  on or after July first, two
    53  thousand fourteen, the charter  school's  current  year  enrollment;  or
    54  [(ii)] (II) for a charter school which expands its grade level, pursuant
    55  to this article, the positive difference of the charter school's enroll-

        A. 6884                            10
 
     1  ment in the current school year minus the charter school's enrollment in
     2  the school year prior to the first year of the expansion; and
     3    (B)  in  the  fourth  year,  the city school district shall pay ninety
     4  percent multiplied by the amount calculated pursuant to  clause  (A)  of
     5  this subparagraph; and
     6    (C)  in  the  fifth  year,  the  city  school district shall pay sixty
     7  percent multiplied by the amount calculated pursuant to  clause  (A)  of
     8  this subparagraph; and
     9    (D)  in  the  sixth  year,  the  city school district shall pay thirty
    10  percent multiplied by the amount calculated pursuant to  clause  (A)  of
    11  this subparagraph.
    12    §  14. Paragraph (b) of subdivision 1 of section 2854 of the education
    13  law, as amended by section 10-b of part A of chapter 56 of the  laws  of
    14  2014, is amended to read as follows:
    15    (b)  A  charter  school  shall  meet the same health and safety, civil
    16  rights, and student assessment requirements applicable to  other  public
    17  schools,  except  as  otherwise specifically provided in this article. A
    18  charter school shall be exempt from all  other  state  and  local  laws,
    19  rules,  regulations  or  policies  governing  public or private schools,
    20  boards  of  education,  school  districts  and  political  subdivisions,
    21  including  those  relating  to  school personnel and students, except as
    22  specifically provided in the school's charter or in this article.  Noth-
    23  ing in this subdivision shall  affect  the  requirements  of  compulsory
    24  education  of  minors  established  by part one of article sixty-five of
    25  this chapter, nor shall anything in this subdivision affect the require-
    26  ments of the charter school to comply with section one hundred three  of
    27  the  general  municipal law and articles eight and nine of the labor law
    28  with respect to  the  construction,  reconstruction,  demolition,  exca-
    29  vation, rehabilitation, repair, renovation, or alteration of any charter
    30  school facility.
    31    §  15. Subdivision 2 of section 2854 of the education law, as added by
    32  chapter 4 of the laws of 1998, paragraph (a) as amended by  chapter  101
    33  of  the  laws  of  2010,  and  paragraph  (b) as amended by section 3 of
    34  subpart A of part B of chapter 20 of the laws of  2015,  is  amended  to
    35  read as follows:
    36    2.  Admissions;  enrollment; students.   (a) A charter school shall be
    37  nonsectarian in its programs, admission policies, employment  practices,
    38  and  all other operations and shall not charge tuition or fees; provided
    39  that a charter school may require the payment of fees on the same  basis
    40  and  to  the same extent as other public schools. A charter school shall
    41  not discriminate against any student, employee or any  other  person  on
    42  the  basis  of  ethnicity, national origin, gender, or disability or any
    43  other ground that would be unlawful if done by a  school.  Admission  of
    44  students  shall  not  be  limited  on the basis of intellectual ability,
    45  measures of achievement or aptitude, athletic ability, disability, race,
    46  creed, gender, national origin, religion, or ancestry; provided,  howev-
    47  er,  that  nothing  in  this  article  shall be construed to prevent the
    48  establishment of  a  single-sex  charter  school  or  a  charter  school
    49  designed to provide expanded learning opportunities for students at-risk
    50  of  academic  failure or students with disabilities and English language
    51  learners; and provided, further, that the charter  school  shall  demon-
    52  strate  good faith efforts to attract and retain [a comparable] an equal
    53  or greater enrollment of students with  disabilities,  English  language
    54  learners,  and  students  who  are  eligible applicants for the free and
    55  reduced price lunch program when compared to the enrollment figures  for
    56  such  students  in  the  school  district in which the charter school is

        A. 6884                            11
 
     1  located. A charter shall not be issued to any school that would be whol-
     2  ly or in part under the control or direction of  any  religious  denomi-
     3  nation,  or  in  which  any  denominational  tenet  or doctrine would be
     4  taught.
     5    (b)  (i)  Any  child who is qualified under the laws of this state for
     6  admission to a public school is qualified for  admission  to  a  charter
     7  school.  Applications for admission to a charter school shall be submit-
     8  ted on a uniform application form created by the department and shall be
     9  made available by a charter school in languages predominately spoken  in
    10  the community in which such charter school is located.  [The]
    11    (ii)  A  charter school shall enroll and continually keep enrolled the
    12  minimum number of students in each  of  the  following  categories:  (A)
    13  students  who are English language learners as defined in regulations of
    14  the commissioner, (B) students who receive or are  mandated  to  receive
    15  any  special  education service, (C) students who have individual educa-
    16  tion plans that mandate they receive services for at least sixty percent
    17  of the school day outside the general education  setting,  (D)  students
    18  who are eligible to receive free lunch in accordance with title I of the
    19  elementary  and  secondary education act, and (E) students who reside in
    20  temporary or transitional housing. The  minimum  number  of  students  a
    21  charter  school  must  enroll and continually keep enrolled in each such
    22  category shall be the number of students that, as a  percentage  of  the
    23  students  authorized  to be served by the charter school in its charter,
    24  is equal to the percentage of students in each category that non-charter
    25  public schools in the district  where  the  charter  school  is  located
    26  enrolled  in  the preceding June in all of the grades combined which are
    27  served by the charter school. For purposes of this subparagraph, for the
    28  city school district of the city of New York, district  shall  mean  the
    29  community  school  district  and  shall  include  all non-charter public
    30  schools, except those in district seventy-five,  geographically  located
    31  in the community school district.
    32    (iii)  Prior  to  a charter school selecting or enrolling students for
    33  the next school year, the commissioner shall provide the charter  school
    34  with  the minimum number of students it must enroll and continually keep
    35  enrolled in each category pursuant to subparagraph (ii)  of  this  para-
    36  graph.  The  minimum  number of students each charter school must enroll
    37  and continually keep enrolled in each category pursuant to  subparagraph
    38  (ii) of this paragraph shall be made public by the commissioner no later
    39  than  five  business  days  after  it  has  been provided to the charter
    40  school.
    41    (iv) A charter school shall enroll each eligible student who submits a
    42  timely application by the first day of April  each  year[,]  unless  the
    43  number of applications exceeds the capacity of the grade level or build-
    44  ing  or would cause the charter school to be below the minimum number of
    45  students it must enroll and continually keep enrolled in  each  category
    46  pursuant to subparagraph (ii) of this paragraph. In such cases, students
    47  shall  be  accepted from among applicants by a random selection process,
    48  provided[, however,] that separate random selection processes  shall  be
    49  conducted for students that are not in any category set forth in subpar-
    50  agraph  (ii)  of  this  paragraph  and for students in each category set
    51  forth in subparagraph (ii) of this paragraph such that a charter  school
    52  enrolls  at  least  the  minimum number of students required pursuant to
    53  subparagraph (ii) of this paragraph.
    54    (v) Where a charter school does  not  enroll  the  minimum  number  of
    55  students  it  must enroll and continually keep enrolled in each category
    56  set forth in subparagraph (ii) of this  paragraph,  the  charter  school

        A. 6884                            12

     1  shall hold open a sufficient number of enrollment spaces such that it is
     2  possible  for the charter school, consistent with its charter, to subse-
     3  quently enroll the number of students required by subparagraph  (ii)  of
     4  this paragraph.
     5    (vi)  A  charter school may provide an enrollment preference [shall be
     6  provided] to pupils returning to the charter school in the second or any
     7  subsequent year of operation and pupils residing in the school  district
     8  in  which  the charter school is located, and siblings of pupils already
     9  enrolled in the charter school provided that the charter school  enrolls
    10  and  continually  keeps enrolled the minimum number of students required
    11  in each category pursuant to subparagraph (ii)  of  this  paragraph  and
    12  holds  open  the number of enrollment spaces as required by subparagraph
    13  (v) of this paragraph.  Preference may also be provided to  children  of
    14  employees  of  the  charter  school  or charter management organization,
    15  provided that the charter school enrolls and continually keeps  enrolled
    16  the  minimum  number  of  students required in each category pursuant to
    17  subparagraph (ii) of this paragraph and holds open the number of enroll-
    18  ment spaces as required  by  subparagraph  (v)  of  this  paragraph  and
    19  provided  further that such children of employees may constitute no more
    20  than fifteen percent of the charter school's total enrollment.
    21    (vii) For purposes of this paragraph, if a student  withdraws  from  a
    22  charter  school  as  a  result  of a voluntary decision of the student's
    23  parent or guardian and, as a direct result, the charter school no longer
    24  has the minimum number of students in each category required pursuant to
    25  subparagraph (ii) of this paragraph, the charter school shall  neverthe-
    26  less  be considered to have continually kept enrolled the minimum number
    27  of students required by subparagraph (ii) of this paragraph  if,  within
    28  thirty  days of the student being withdrawn, the charter school replaces
    29  the student that was withdrawn with a different student  such  that  the
    30  charter  school  has  the  minimum  number  of students in each category
    31  required pursuant to  subparagraph  (ii)  of  this  paragraph,  provided
    32  however,  that  this  subparagraph  shall  not  apply (A) if the charter
    33  school was already in violation of the requirements of subparagraph (ii)
    34  of this paragraph at the time the student was withdrawn or  (B)  if  the
    35  decision of the student's parent or guardian was substantially motivated
    36  by any action or inaction of the charter school, or any of its agents or
    37  employees, that was in violation of any law, rule, or regulation.
    38    (viii)  (A)  A charter school shall report the names of any parents or
    39  guardians of students who are on a waitlist for enrollment in the  char-
    40  ter  school  to  the superintendent of the district in which the charter
    41  school is located or, for charter schools located within the  geographic
    42  area  served  by  the  city school district of the city of New York, the
    43  chancellor of the city school district of the city of New York,  whether
    44  each  such student is in one of the categories set forth in subparagraph
    45  (ii) of this paragraph and, if so, which one.
    46    (B) A charter school that, at any time, does  not  have  enrolled  the
    47  minimum number of students required in each category pursuant to subpar-
    48  agraph  (ii)  of  this  paragraph shall notify the superintendent of the
    49  district in which the charter school is located or, for charter  schools
    50  located within the geographic area served by the city school district of
    51  the  city of New York, the chancellor of the city school district of the
    52  city of New York, within five days of the date of the school being below
    53  the minimum  number  of  students.  A  separate  notification  shall  be
    54  provided each time a charter school's enrollment falls below the minimum
    55  in any category pursuant to subparagraph (ii) of this paragraph.

        A. 6884                            13
 
     1    (C)  Where the superintendent of the district or the chancellor of the
     2  city school district of the  city  of  New  York  receives  notification
     3  pursuant  to  clause  (B) of this subparagraph, the superintendent shall
     4  first offer the  enrollment  spaces  to  any  parents  or  guardians  of
     5  students  who are in a category in which the charter school is below the
     6  minimum set forth in subparagraph (ii) of this paragraph who are on  the
     7  school's  waitlist, then to any parents or guardians of students who are
     8  in a category in which the charter school is below the minimum set forth
     9  in subparagraph (ii) of this paragraph who are on the waitlist of anoth-
    10  er charter school in the district in which the charter school is located
    11  or, for charter schools located within the geographic area served by the
    12  city school district of the city of New York geographically  located  in
    13  the  community school district, and then to any other parents or guardi-
    14  ans of students who are in a category in which  the  charter  school  is
    15  below  the  minimum set forth in subparagraph (ii) of this paragraph who
    16  reside in the district; such process of enrollment offers shall continue
    17  until the charter school is no longer below such minimum in any category
    18  or such  superintendent  or  chancellor  certifies  there  are  no  such
    19  students seeking enrollment.
    20    (D) Offers made pursuant to this subparagraph shall be made in writing
    21  in  the  parent  or guardian's primary language.  Where an offer is made
    22  pursuant to this subparagraph and the parent or  guardian  accepts,  the
    23  charter school shall enroll the student within five calendar days of the
    24  offer being accepted.
    25    (ix) (A) For each month during the school year, a charter school shall
    26  report  the number of students then enrolled, as of the first day of the
    27  month, in each category set forth in subparagraph (ii) of this paragraph
    28  and the number of students then enrolled, as of the  first  day  of  the
    29  month, that are in none of the categories set forth in subparagraph (ii)
    30  of this paragraph.
    31    (B)  Reports  pursuant to this subparagraph shall be made to the board
    32  of regents, the school's charter entity, the comptroller of the city  of
    33  New  York  for  charter  schools  located in New York city and the comp-
    34  troller of the state of New York for charter schools located outside  of
    35  the  city  of  New York, and the superintendent of the district in which
    36  the charter school is located or, for charter schools located within the
    37  geographic area served by the city school district of the  city  of  New
    38  York,  the  chancellor  of  the  city school district of the city of New
    39  York. The commissioner shall ensure that such report  is  made  publicly
    40  available  via  such  department's official internet website within five
    41  days of its receipt.
    42    (C) Reports pursuant to this subparagraph shall be made on  the  fifth
    43  day of the ensuing month during the school year and shall be accompanied
    44  by  a statement, under oath, by the chairperson of the school's board of
    45  trustees or other appropriate member of the  board  of  trustees,  that,
    46  after  the  due  inquiry, the reports are true and correct and have been
    47  provided to each member of the school's board of trustees.
    48    (x) The commissioner shall establish regulations to require  that  the
    49  random  selection  [process]  processes conducted pursuant to this para-
    50  graph be performed in a transparent and equitable manner and to  require
    51  that the time and place of the random selection process be publicized in
    52  a manner consistent with the requirements of section one hundred four of
    53  the  public  officers  law and be open to the public. [For] Except where
    54  another definition is provided, for the purposes of this  paragraph  and
    55  paragraph  (a)  of  this  subdivision,  the school district in which the
    56  charter school is located shall mean, for the city  school  district  of

        A. 6884                            14
 
     1  the city of New York, the community district in which the charter school
     2  is located.
     3    (xi)  The commissioner may, by regulation, require the board of educa-
     4  tion of each school district  or  the  chancellor  of  the  city  school
     5  district  of  the  city  of  New  York to provide such information as is
     6  necessary to calculate the minimum number of students a  charter  school
     7  must  enroll and continually have enrolled pursuant to subparagraph (ii)
     8  of this paragraph. Such information shall be made public by the  commis-
     9  sioner within five business days of receipt.
    10    (xii)(A)  If  a  charter school fails to enroll the number of students
    11  required by subparagraph (ii) of this paragraph the  appropriate  school
    12  district  shall  withhold  from  the  charter school's funding an amount
    13  equal to the additional per pupil funding the charter school would  have
    14  received  had each student not enrolled as required by subparagraph (ii)
    15  of this paragraph been enrolled.
    16    (B) Money withheld by the school  district  in  accordance  with  this
    17  subparagraph  shall  be returned to the commissioner for distribution to
    18  each of the school districts, using an equitable formula  determined  by
    19  the  commissioner, provided the charter school or schools from which the
    20  monies are withheld shall not be entitled to the  return  of  any  money
    21  withheld  pursuant  to  this  subparagraph or any additional monies as a
    22  result of the commissioner's distribution  of  funds  pursuant  to  this
    23  subparagraph.
    24    (xiii) (A) No charter school shall first commence instruction if it is
    25  operated  by,  managed by, affiliated with, in the same chain as, shares
    26  the same management company as, or has any common charter applicant  as,
    27  a  school  that has been in violation, within the last two years, of the
    28  enrollment requirements of subparagraph (ii) of this paragraph.
    29    (B) No charter school shall expand beyond  the  grades  with  enrolled
    30  students, even if such expansion is authorized by its charter, if it has
    31  been in violation, within the last two years, of the enrollment require-
    32  ments of subparagraph (ii) of this paragraph.
    33    (C) A charter school that does not have enrolled the minimum number of
    34  students as required by subparagraph (ii) of this paragraph shall not be
    35  offered  or  entitled  pursuant to paragraph (e) of subdivision three of
    36  section twenty-eight hundred fifty-three of this article (1) a  co-loca-
    37  tion  site  in  a  public  school  building at no cost or (2) space in a
    38  privately owned or other publicly owned facility at the expense  of  the
    39  city  school district. A charter school that has already been co-located
    40  in a public school building or given space in a privately owned or other
    41  publicly owned facility pursuant to this paragraph  and  then  fails  to
    42  continually  have enrolled the required minimum number of students shall
    43  be required to pay the fair market value of such space for  such  period
    44  of time of non-compliance.
    45    (xiv)  The  provisions  of  this paragraph shall be enforceable by the
    46  commissioner or by a court of competent jurisdiction.  Any  employee  of
    47  the school district in which the charter school is located or the parent
    48  or  guardian  of  a  student attending the district in which the charter
    49  school is located shall have standing to enforce the provisions of  this
    50  paragraph.
    51    (xv)  A charter school's failure to comply with the provisions of this
    52  paragraph shall be a very significant factor in determining whether  the
    53  charter entity or the board of regents terminates the school's charter.
    54    (b-1)  Prior  to  submission of enrollment counts to a school district
    55  pursuant to subdivision one of section twenty-eight hundred fifty-six of
    56  this article, on or after October first of the two thousand twenty-five-

        A. 6884                            15
 
     1  -two thousand twenty-six school year and October first  of  each  school
     2  year  thereafter,  a  charter school shall determine whether that school
     3  district is the school district of residence of each  student  for  whom
     4  enrollment  is  claimed.  Such  residency determination shall be made in
     5  accordance with the regulations of the commissioner  and  the  residency
     6  policy  of  the  school district in which the charter school is located,
     7  provided that the charter school may fulfill such requirement by requir-
     8  ing that the parents or other  persons  in  parental  relation  register
     9  their  child  with  the  school  district  they have identified as their
    10  school district of residence.   Notwithstanding any other  provision  of
    11  law  to  the contrary, the parents or other persons in parental relation
    12  shall not be required  to  annually  prove  their  continued  residency,
    13  provided that they either annually certify to the charter school and the
    14  school  district  of  residence  that their residency has not changed or
    15  notify the charter school and the school district that  their  residency
    16  has  changed and that a new school district of residence should be iden-
    17  tified pursuant to this paragraph.  Upon  making  a  residency  determi-
    18  nation,  a  charter  school making its own residency determination shall
    19  promptly submit its proof of residence to the school district identified
    20  as the district of residence for purposes of enrollment of  the  student
    21  in  such  school  district in accordance with subdivision one of section
    22  twenty-eight hundred fifty-six of this article,  and  the  provision  of
    23  services  pursuant  to  subdivision four of section twenty-eight hundred
    24  fifty-three of this article. In the event of a dispute over the residen-
    25  cy of a student, the school district shall make its own residency deter-
    26  mination pursuant to the regulations of the commissioner after consider-
    27  ing the proof of residency submitted by the  charter  school,  and  such
    28  determination  may be appealed to the commissioner by the charter school
    29  or by the parent or other person in parental relation or  both  pursuant
    30  to  section  three  hundred  ten of this chapter. During the pendency of
    31  such appeal,  the  student  shall  be  deemed  enrolled  in  the  school
    32  district,  shall be entitled to services pursuant to subdivision four of
    33  section twenty-eight hundred fifty-three of this article, and the school
    34  district shall be liable for charter school tuition, provided that  upon
    35  a  final determination in such appeal that the student is not a resident
    36  of the school district, the school district may deduct the cost of  such
    37  tuition  and  services  from future payments due the charter school. The
    38  provisions of this paragraph shall not apply to charter schools  located
    39  in a city having a population of one million or more.
    40    (c) A charter school shall serve one or more of the grades one through
    41  twelve,  and  shall  limit  admission  to pupils within the grade levels
    42  served. Nothing herein shall prohibit a charter school from establishing
    43  a kindergarten program.
    44    (d) A student may withdraw from a  charter  school  at  any  time  and
    45  enroll in a public school. [A charter school may refuse admission to any
    46  student  who  has  been expelled or suspended from a public school until
    47  the period of  suspension  or  expulsion  from  the  public  school  has
    48  expired, consistent with the requirements of due process]
    49    (i)  A  student  may only be disciplined, suspended or expelled from a
    50  charter school in accordance with the applicable provisions of  subdivi-
    51  sions  two-a,  three, and three-a of section thirty-two hundred fourteen
    52  of this chapter. Every charter school shall develop a code of conduct in
    53  accordance with the provisions of section twenty-eight  hundred  one  of
    54  this title.
    55    (ii)  Every  charter  school  shall  submit  a  detailed annual report
    56  regarding disciplinary measures imposed on students. The report shall be

        A. 6884                            16
 
     1  submitted to the charter entity and the board of regents as part of  the
     2  annual  report  required  pursuant to subdivision two of section twenty-
     3  eight hundred fifty-seven of this article. The report shall be in a form
     4  prescribed  by  the  commissioner, and shall include, but not be limited
     5  to, number of  classroom  removals,  number  of  in-school  suspensions,
     6  number  of  out-of-school  suspensions,  number  of  expulsions, and the
     7  action the student took that led to each disciplinary  measure  imposed.
     8  Such  data shall be disaggregated by race/ethnicity, status as a student
     9  with a disability and status as an English language learner.  The report
    10  shall be posted on the department's website.
    11    (iii) For the purposes of this subdivision:
    12    (A) the term "superintendent," "superintendent of schools,"  "district
    13  superintendent  of  schools,"  or "community superintendent," as used in
    14  subdivision three of section thirty-two hundred fourteen of  this  chap-
    15  ter,  as such terms relate to charter schools shall mean the chairperson
    16  of the board of trustees of the charter school or the chief school offi-
    17  cer of the charter school; and
    18    (B) the term "board of education" or "board," as used  in  subdivision
    19  three  of  section  thirty-two hundred fourteen of this chapter, as such
    20  terms relate to charter schools shall mean the board of trustees of  the
    21  charter school.
    22    §  16.  Subdivision 1 of section 2855 of the education law, as amended
    23  by chapter 101 of the laws of 2010, is amended to read as follows:
    24    1. The charter entity, or the board of regents, may terminate a  char-
    25  ter upon any of the following grounds:
    26    (a)  When  a  charter  school's outcome on student assessment measures
    27  adopted by the board of regents falls below the level that  would  allow
    28  the  commissioner  to  revoke the registration of another public school,
    29  and student achievement on such measures has not shown improvement  over
    30  the preceding three school years;
    31    (b) [Serious violations] A violation of law;
    32    (c)  [Material and substantial] A violation of the charter[, including
    33  fiscal mismanagement];
    34    (d) When the public employment relations board makes  a  determination
    35  that  the  charter  school [demonstrates a practice and pattern of egre-
    36  gious and intentional violations of] has  violated  subdivision  one  of
    37  section  two hundred nine-a of the civil service law involving interfer-
    38  ence with or discrimination against employee rights under article  four-
    39  teen  of  the  civil  service law; or the national labor relations board
    40  created pursuant to subchapter II of chapter seven of title  twenty-nine
    41  of  the United States Code, or any person or entity to whom the national
    42  labor relations board has lawfully  delegated  its  authority,  makes  a
    43  determination  that  the  charter  school has violated section 158(a) of
    44  title twenty-nine of the United States Code; or
    45    (e) [Repeated failure to comply with the requirement to meet or exceed
    46  enrollment and retention targets of students with disabilities,  English
    47  language learners, and students who are eligible applicants for the free
    48  and  reduced  price lunch program pursuant to targets established by the
    49  board of regents or the board of trustees of the state university of New
    50  York, as applicable. Provided, however, if no grounds for terminating  a
    51  charter  are established pursuant to this section other than pursuant to
    52  this paragraph, and the charter school demonstrates  that  it  has  made
    53  extensive  efforts  to  recruit  and  retain  such  students,  including
    54  outreach to parents and families in the surrounding communities,  widely
    55  publicizing  the  lottery  for  such school, and efforts to academically
    56  support such students in such charter school, then the charter entity or

        A. 6884                            17

     1  board of regents may retain such charter.] Failure to  comply  with  the
     2  requirements of paragraph (b) of subdivision two of section twenty-eight
     3  hundred fifty-four of this article; or
     4    (f)  Failure to comply with the data reporting requirements prescribed
     5  in subdivisions two and two-a of section twenty-eight hundred fifty-sev-
     6  en of this article.
     7    § 17. Subdivision 3 of section 2855 of the education law, as added  by
     8  chapter 4 of the laws of 1998, is amended to read as follows:
     9    3.  (a)  In  addition  to  the  provisions  of subdivision two of this
    10  section, the charter entity or the board of regents may place a  charter
    11  school  falling within the provisions of subdivision one of this section
    12  on probationary status to allow the implementation of a remedial  action
    13  plan.    The  failure  of  a charter school to comply with the terms and
    14  conditions of a remedial action plan may result in summary revocation of
    15  the school's charter.
    16    (b) A charter school that is placed on probationary status shall annu-
    17  ally notify the parents or guardians of all students and  applicants  of
    18  the placement.  The initial notice shall be distributed within two weeks
    19  of being placed on probationary status. Such notice shall be written and
    20  delivered via mail. The department shall identify all charter schools on
    21  probationary  status on the department's website and shall also post the
    22  remedial action plan.
    23    § 18. Subdivision 4 of section 2855 of the education law, as added  by
    24  chapter 4 of the laws of 1998, is amended to read as follows:
    25    4.  (a)  Any individual or group may bring a complaint to the board of
    26  trustees of a charter school alleging a violation of the  provisions  of
    27  this article, the charter, or any other provision of law relating to the
    28  management or operation of the charter school. If, after presentation of
    29  the complaint to the board of trustees of a charter school, the individ-
    30  ual or group determines that such board has not adequately addressed the
    31  complaint,  they may present that complaint to the charter entity, which
    32  shall investigate and respond. If, after presentation of  the  complaint
    33  to the charter entity, the individual or group determines that the char-
    34  ter  entity has not adequately addressed the complaint, they may present
    35  that complaint to the board of  regents,  which  shall  investigate  and
    36  respond.  The  charter  entity  and  the board of regents shall have the
    37  power and the duty to  issue  appropriate  remedial  orders  to  charter
    38  schools  under  their  jurisdiction to effectuate the provisions of this
    39  section.
    40    (b) At the beginning of each  school  year,  a  charter  school  shall
    41  provide  the  parent or guardian of each student enrolled in the charter
    42  school information detailing the process by which  a  complaint  can  be
    43  brought  against  the  charter  school pursuant to paragraph (a) of this
    44  subdivision. In addition to detailing the process by which  a  complaint
    45  can  be  brought,  the  information  provided  shall include, but not be
    46  limited to the contact information for the  board  of  trustees  of  the
    47  charter school in which the student is enrolled, the contact information
    48  for  the  charter entity of the charter school, and the contact informa-
    49  tion for the board of regents, if the board of regents is not the  char-
    50  ter  entity.  Such information shall also be posted and updated annually
    51  on the charter school's website.
    52    § 19. Subdivisions 2 and 3 of section 2856 of the  education  law  are
    53  renumbered subdivisions 3 and 4 and a new subdivision 2 is added to read
    54  as follows:
    55    2.  In  the  event  that  in any school year a charter school receives
    56  combined payments from any local, state, or federal source  that  exceed

        A. 6884                            18
 
     1  expenditures for such school year related to the operation of such char-
     2  ter  school  by  seven  percent, then any excess funds above such amount
     3  shall be returned proportionately to all school districts that have paid
     4  tuition to such charter school.
     5    §  20. Subdivision 3 of section 2856 of the education law, as added by
     6  chapter 4 of the laws of 1998 and as renumbered by section  nineteen  of
     7  this act, is amended to read as follows:
     8    3.  (a)  In  the  event  of the failure of the school district to make
     9  payments required by this section, the state  comptroller  shall  deduct
    10  from  any state funds which become due to such school district an amount
    11  equal to the unpaid obligation. The comptroller shall pay over such  sum
    12  to  the  charter  school  upon  certification  of  the commissioner. The
    13  commissioner shall promulgate regulations to implement the provisions of
    14  this subdivision.
    15    (b) At least thirty days prior to  submission  of  a  request  for  an
    16  intercept  of state funds pursuant to paragraph (a) of this subdivision,
    17  the charter school shall provide the school district of residence with a
    18  list of students whose tuition is proposed to be included in the  inter-
    19  cept and documentation of any special education services provided by the
    20  charter  school,  the  cost of which would be included in the intercept.
    21  If the school district objects to inclusion of the tuition  or  cost  of
    22  services in the intercept, the school district shall provide the charter
    23  school  with  a  written  statement  of its reasons for objecting to the
    24  intercept that identifies the students whose costs are  in  dispute  and
    25  the  charter  school shall schedule a resolution session for the purpose
    26  of resolving the dispute, which shall be held within five business  days
    27  of  receipt  of the school district's objection. Each party shall ensure
    28  that their representatives who attend the resolution are  fully  author-
    29  ized  to  bind  the school district or charter school, and any agreement
    30  reached at the resolution session shall be final and binding  upon  both
    31  parties.  In  the  event the school district does not notify the charter
    32  school of its objections within ten days of its receipt of the  list  of
    33  students  or  fails  to  participate in a resolution session, the school
    34  district shall be deemed to have waived its objections to the  intercept
    35  and  the  charter  school  shall  not  be required to offer a resolution
    36  session. If the parties are unable to reach agreement  at  a  resolution
    37  session,  they  may agree to schedule additional resolution sessions or,
    38  if one of the parties informs the other that agreement is not  possible,
    39  the  dispute may be raised by the district as a charter school complaint
    40  pursuant to subdivision four of section twenty-eight hundred  fifty-five
    41  of this article, or, if the dispute concerns the residency of a student,
    42  an  appeal may be brought pursuant to paragraph (c) of this subdivision.
    43  The department shall not process an intercept for tuition or the cost of
    44  services of a student whose costs  are  in  dispute  until  the  charter
    45  school  notifies  the department that a resolution session has been held
    46  and no agreement has been reached, or  that  no  resolution  session  is
    47  required  because the school district failed to provide timely notice or
    48  failed to participate in a scheduled resolution session.
    49    (c) In the event of a dispute over the residency  of  a  student,  the
    50  school  district  shall make its own residency determination pursuant to
    51  the regulations of the commissioner after considering the proof of resi-
    52  dency submitted by the charter school, and  such  determination  may  be
    53  appealed  to  the commissioner by the charter school or by the parent or
    54  other person in parental relation or  both  pursuant  to  section  three
    55  hundred  ten  of  this  chapter. During the pendency of such appeal, the
    56  student shall be deemed enrolled in the school district, shall be  enti-

        A. 6884                            19
 
     1  tled  to  services  pursuant to subdivision four of section twenty-eight
     2  hundred fifty-three of this article, and the school  district  shall  be
     3  liable  for  charter school tuition, provided that upon a final determi-
     4  nation  in  such appeal that the student is not a resident of the school
     5  district, the school district may deduct the cost of  such  tuition  and
     6  services from future payments due the charter school.
     7    §  21.  Subdivision 2 of section 2857 of the education law, as amended
     8  by chapter 101 of the laws of 2010, is amended and a new subdivision 2-a
     9  is added to read as follows:
    10    2. Each charter school shall submit to the charter entity and  to  the
    11  board  of regents an annual report. Such report shall be issued no later
    12  than the first day of August of each year for the preceding school  year
    13  and shall be made publicly available by such date and shall be posted on
    14  both  the  charter school's [website] and the department's websites. The
    15  annual report shall be in such  form  as  shall  be  prescribed  by  the
    16  commissioner and shall include at least the following components:
    17    (a)  a charter school report card, which shall include measures of the
    18  comparative academic and fiscal performance of the school, as prescribed
    19  by the commissioner in regulations adopted for such purpose. Such  meas-
    20  ures  shall  include,  but  not be limited to, graduation rates, dropout
    21  rates, performance of students  on  standardized  tests,  college  entry
    22  rates,  total  spending per pupil and administrative spending per pupil.
    23  Such measures shall be presented in a format that is  easily  comparable
    24  to  similar public schools. In addition, the charter school shall ensure
    25  that such information is easily accessible to  the  community  including
    26  making  it  publicly available by transmitting it to local newspapers of
    27  general circulation and making it available for distribution at board of
    28  trustee meetings[.];
    29    (b) discussion of the progress made towards achievement of  the  goals
    30  set forth in the charter[.];
    31    (c)  a  certified  financial  statement  setting forth, by appropriate
    32  categories, the revenues and expenditures for the preceding school year,
    33  including a copy of the most recent  independent  fiscal  audit  of  the
    34  school  and  any  audit conducted by the comptroller of the state of New
    35  York[.];
    36    (d) efforts taken by the charter school in the existing  school  year,
    37  and  a  plan  for  efforts to be taken in the succeeding school year, to
    38  meet or exceed the enrollment [and retention targets set by the board of
    39  regents or the board of trustees of the state university of New York, as
    40  applicable, of students with disabilities,  English  language  learners,
    41  and  students who are eligible applicants for the free and reduced price
    42  lunch program established pursuant to paragraph (e) of subdivision  four
    43  of section twenty-eight hundred fifty-one of this article.] requirements
    44  of  subparagraph  (ii)  of  paragraph  (b) of subdivision two of section
    45  twenty-eight hundred fifty-four of this article;
    46    (e) for any charter school that contracts with a management company or
    47  any other entity  that  provides  services  to  the  charter  school,  a
    48  detailed  statement  of  services  provided to the charter school by the
    49  management company and/or any other entity and the  amount  the  charter
    50  school  pays  for  such  services.  The department shall post the annual
    51  reports submitted by charter schools on the department's website; and
    52    (f) a notice of any relationship that may exist between any member  of
    53  a  charter  school's  board  of trustees or charter school staff and any
    54  for-profit or not-for-profit corporate or other business entity that  is
    55  responsible  for  the  administration,  management  or operation of such
    56  charter school or related vendor.

        A. 6884                            20
 
     1    2-a. Each charter  school  shall  post  contact  information  for  the
     2  school's  board  of trustees as well as the name and contact information
     3  of the school's charter entity on the website of the charter school.
     4    §  22.  Subdivision  7  of  section 179-q of the state finance law, as
     5  added by chapter 166 of the laws of 1991, is amended to read as follows:
     6    7. "Not-for-profit organization" or "organization"  means  a  domestic
     7  corporation  incorporated  pursuant  to or otherwise subject to the not-
     8  for-profit corporation law, a charitable  organization  registered  with
     9  the  secretary  of  state, a special act corporation created pursuant to
    10  chapter four hundred sixty-eight of the laws of eighteen  hundred  nine-
    11  ty-nine,  as amended, a special act corporation formed pursuant to chap-
    12  ter two hundred fifty-six of the laws of nineteen hundred seventeen,  as
    13  amended,  a  corporation  authorized  pursuant  to  an  act  of congress
    14  approved January fifth,  nineteen  hundred  five,  (33  stat.  599),  as
    15  amended, a corporation established by merger of charitable organizations
    16  pursuant  to  an  order of the supreme court, New York county dated July
    17  twenty-first, nineteen hundred eighty-six and filed in the department of
    18  state on July twenty-ninth, nineteen hundred  eighty-six,  or  a  corpo-
    19  ration  having  tax  exempt status under section 501(c)(3) of the United
    20  States Internal revenue code, and shall further be deemed  to  mean  and
    21  include  any  federation of charitable organizations. Provided, however,
    22  that a public educational entity within the meaning of section  seventy-
    23  one  of  part  C of chapter fifty-seven of the laws of two thousand four
    24  shall not be deemed a "not-for-profit  organization"  or  "organization"
    25  for purposes of this article.
    26    § 23. This act shall take effect immediately.
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