BRISPORT, CLEARE, GONZALEZ, HARCKHAM, MAY, MAYER, RAMOS, SALAZAR
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.
STATE OF NEW YORK
________________________________________________________________________
7462
2025-2026 Regular Sessions
IN SENATE
April 17, 2025
___________
Introduced by Sens. HOYLMAN-SIGAL, BRISPORT, CLEARE, GONZALEZ, HARCKHAM,
MAY, MAYER, RAMOS, SALAZAR -- read twice and ordered printed, and when
printed to be committed 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,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07994-01-5
S. 7462 2
1 which shall be consistent with the requirements of due process and with
2 federal laws and regulations governing the placement of students with
3 disabilities] shall be in accordance with the provisions of subdivisions
4 two-a, three and three-a of section thirty-two hundred fourteen of this
5 chapter. The charters of all charter schools that were issued on or
6 before July first, two thousand twenty-five shall be deemed amended to
7 require compliance with the procedures set forth in subdivisions two-a,
8 three and three-a of section thirty-two hundred fourteen of this
9 chapter.
10 § 3. Paragraph (e) of subdivision 4 of section 2851 of the education
11 law, as added by chapter 101 of the laws of 2010, is amended to read as
12 follows:
13 (e) The means by which the charter school will meet or exceed the
14 enrollment [and retention targets as prescribed by the board of regents
15 or the board of trustees of the state university of New York, as appli-
16 cable, of students with disabilities, English language learners, and
17 students who are eligible applicants for the free and reduced price
18 lunch program which shall be considered by the charter entity prior to
19 approving such charter school's application for renewal. When developing
20 such targets, the board of regents and the board of trustees of the
21 state university of New York shall ensure (1) that such enrollment
22 targets are comparable to the enrollment figures of such categories of
23 students attending the public schools within the school district, or in
24 a city school district in a city having a population of one million or
25 more inhabitants, the community school district, in which the charter
26 school is located; and (2) that such retention targets are comparable to
27 the rate of retention of such categories of students attending the
28 public schools within the school district, or in a city school district
29 in a city having a population of one million or more inhabitants, the
30 community school district, in which the proposed charter school would be
31 located] requirements of subparagraph (ii) of paragraph (b) of subdivi-
32 sion two of section twenty-eight hundred fifty-four of this article.
33 § 4. Subdivision 2 of section 2852 of the education law, as amended by
34 section 4-a of part A of chapter 56 of the laws of 2023, and the clos-
35 ing paragraph as amended by section 2 of part D-2 of chapter 57 of the
36 laws of 2007, is amended to read as follows:
37 2. An application for a charter school shall not be approved unless
38 the charter entity finds in writing that:
39 (a) the charter school described in the application meets the require-
40 ments set out in this article and all other applicable laws, rules and
41 regulations;
42 (b) the applicant can demonstrate the ability to operate the school in
43 an educationally and fiscally sound manner;
44 (c) granting the application is likely to improve student learning and
45 achievement and materially further the purposes set out in subdivision
46 two of section twenty-eight hundred fifty of this article;
47 (d) in a school district where the total enrollment of resident
48 students attending charter schools in the base year is greater than five
49 percent of the total public school enrollment of the school district in
50 the base year (i) granting the application would have a significant
51 educational benefit to the students expected to attend the proposed
52 charter school [or] and (ii) the school district in which the charter
53 school will be located consents to such application; and
54 (e) for applicants for an initial charter pursuant to paragraph (b-1)
55 of subdivision nine of this section in a school district located in a
56 city with a population of one million or more, the total enrollment of
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1 students attending charter schools within the community district in
2 which the charter school will be located in the base year is less than
3 or equal to fifty-five percent of the total public school enrollment
4 attending within such community district in the base year.
5 In reviewing applications, the charter entity is encouraged to give
6 preference to applications that demonstrate the capability to provide
7 comprehensive learning experiences to students identified by the appli-
8 cants as at risk of academic failure. Upon making a determination of
9 whether an application for a charter school shall be approved, the char-
10 ter entity shall provide detailed written findings related to each of
11 the requirements in this subdivision, which shall be made available to
12 the charter school applicant, board of regents and the school district
13 in which the proposed charter school would be located.
14 § 5. Subdivision 5 of section 2852 of the education law, as amended by
15 chapter 101 of the laws of 2010, is amended to read as follows:
16 5. (a) Upon approval of an application by a charter entity, the appli-
17 cant and charter entity shall enter into a proposed agreement allowing
18 the applicants to organize and operate a charter school. Such written
19 agreement, known as the charter, shall include [(a)] (i) the information
20 required by subdivision two of section twenty-eight hundred fifty-one of
21 this article, as modified or supplemented during the approval process,
22 [(b)] (ii) in the case of charters to be issued pursuant to subdivision
23 nine-a of this section, information required by such subdivision, [(c)]
24 (iii) a provision prohibiting the charter school from entering into,
25 renewing or extending any agreement with a for-profit or not-for-profit
26 corporate or other business entity for the administration, management or
27 operation of the charter school unless the agreement requires such enti-
28 ty to provide state and local officers having the power to audit the
29 charter school pursuant to this article with access to the entity's
30 records relating to the costs of, and fees for, providing such services
31 to the school, (iv) any other terms or conditions required by applicable
32 laws, rules and regulations, and [(d)] (v) any other terms or condi-
33 tions, not inconsistent with law, agreed upon by the applicant and the
34 charter entity. In addition, the charter shall include the specific
35 commitments of the charter entity relating to its obligations to oversee
36 and supervise the charter school. Within five days after entering into a
37 proposed charter, the charter entity other than the board of regents
38 shall submit to the board of regents a copy of the charter, the applica-
39 tion and supporting documentation for final approval and issuance by the
40 board of regents in accordance with subdivisions five-a and five-b of
41 this section.
42 (b) No charter school having a charter that was issued and approved on
43 or before the effective date of this paragraph shall enter into, renew
44 or extend the duration of any agreement with a for-profit or not-for-
45 profit corporate or other business entity for the administration,
46 management or operation of the charter school unless the agreement
47 requires such entity to provide state and local officers having the
48 power to audit the charter school pursuant to this article with access
49 to the entity's records relating to the costs of, and fees for, provid-
50 ing such services to the school. Any agreement entered into, renewed or
51 extended in violation of this section shall be null, void and wholly
52 unenforceable, and a violation of this section shall be grounds for
53 revocation or termination of a charter pursuant to section twenty-eight
54 hundred fifty-five of this article.
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1 § 6. Subparagraph (i) of paragraph (b) of subdivision 9-a of section
2 2852 of the education law, as amended by section 2 of subpart A of part
3 B of chapter 20 of the laws of 2015, is amended to read as follows:
4 (i) that the proposed charter school would meet or exceed the enroll-
5 ment [and retention targets, as prescribed by the board of regents or
6 the board of trustees of the state university of New York, as applica-
7 ble, of students with disabilities, English language learners, and
8 students who are eligible applicants for the free and reduced price
9 lunch program. When developing such targets, the board of regents and
10 the board of trustees of the state university of New York, shall ensure
11 (1) that such enrollment targets are comparable to the enrollment
12 figures of such categories of students attending the public schools
13 within the school district, or in a city school district in a city
14 having a population of one million or more inhabitants, the community
15 school district, in which the proposed charter school would be located;
16 and (2) that such retention targets are comparable to the rate of
17 retention of such categories of students attending the public schools
18 within the school district, or in a city school district in a city
19 having a population of one million or more inhabitants, the community
20 school district, in which the proposed charter school would be located]
21 requirements of subparagraph (ii) of paragraph (b) of subdivision two of
22 section twenty-eight hundred fifty-four of this article; and
23 § 7. Section 2853 of the education law is amended by adding a new
24 subdivision 2-b to read as follows:
25 2-b. In any case where a charter school enters into, renews or extends
26 any agreement with a for-profit or not-for-profit business or corporate
27 entity for the administration, management or operation of a charter
28 school, the charter school is required to have a formal contract with
29 such entity. Any such contract shall be reviewed and approved by the
30 charter entity.
31 § 8. Paragraph (a) of subdivision 3 of section 2853 of the education
32 law, as amended by chapter 101 of the laws of 2010, is amended to read
33 as follows:
34 (a) A charter school may be located in part of an existing public
35 school building, in space provided on a private work site, in a public
36 building or in any other suitable location. Provided, however, before a
37 charter school may be located in part of an existing public school
38 building, the charter entity shall provide notice to the parents or
39 guardians of the students then enrolled in the existing school building
40 and shall hold a public hearing for purposes of discussing the location
41 of the charter school. All contracts entered into by such charter
42 school, or any education corporation organized to operate a charter
43 school, or any other public entity, including the state, a public bene-
44 fit corporation, municipal corporation, or any private entity acting on
45 behalf of any of these entities, involving the construction, recon-
46 struction, demolition, excavation, rehabilitation, repair, renovation,
47 or alteration of any charter school facility shall be subject to the
48 requirements of section one hundred three of the general municipal law
49 and articles eight and nine of the labor law. A charter school may own,
50 lease or rent its space.
51 § 9. The opening paragraph and subparagraph 1 of paragraph (e) of
52 subdivision 3 of section 2853 of the education law, as added by section
53 5 of part BB of chapter 56 of the laws of 2014, are amended to read as
54 follows:
55 [In] Except as provided in subparagraph seven of this paragraph, a
56 city school district in a city having a population of one million or
S. 7462 5
1 more inhabitants, charter schools that first commence instruction or
2 that require additional space due to an expansion of grade level, pursu-
3 ant to this article, approved by their charter entity for the two thou-
4 sand fourteen--two thousand fifteen school year or thereafter and
5 request co-location in a public school building and demonstrates to the
6 city school district that the charter school does not have the financial
7 capacity to procure adequate facilities shall be provided access to
8 facilities pursuant to this paragraph for such charter schools that
9 first commence instruction or that require additional space due to an
10 expansion of grade level, pursuant to this article, approved by their
11 charter entity for those grades newly provided.
12 (1) Notwithstanding any other provision of law to the contrary, within
13 the later of (i) five months after a charter school's written request
14 for co-location and (ii) provided that a charter school demonstrates
15 that it lacks the financial capacity to procure adequate facilities,
16 thirty days after the charter school's charter is approved by its char-
17 ter entity, the city school district shall either: (A) offer at no cost
18 to the charter school a co-location site in a public school building
19 approved by the board of education as provided by law, or (B) offer the
20 charter school space in a privately owned or other publicly owned facil-
21 ity at the expense of the city school district and at no cost to the
22 charter school for three years. The space must be reasonable, appropri-
23 ate and comparable and in the community school district to be served by
24 the charter school and otherwise in reasonable proximity.
25 § 10. Paragraph (e) of subdivision 3 of section 2853 of the education
26 law is amended by adding a new subparagraph 7 to read as follows:
27 (7)(A) No charter school that, either alone or in combination with any
28 charter affiliate, has any direct or indirect interest in, or may be
29 entitled to receive any beneficial interest from, any asset or assets of
30 any kind or nature that alone or combined have a value exceeding one
31 million dollars, shall be offered or entitled to receive: (i) a co-lo-
32 cation site in a public school building at no cost; or (ii) a space in a
33 privately or publicly owned facility at the expense of the city school
34 district.
35 (B) Nothing in this subparagraph shall prohibit a charter school from
36 receiving a co-location in a public building at fair market value unless
37 doing so would negatively impact the size of classes in any other school
38 in the building.
39 (C) As used in this subparagraph the term "charter affiliate" means:
40 (i) any entity that is directly or indirectly controlled by, in control
41 of, or under common control with, the charter school or (ii) any entity
42 that provides management, fundraising or other administrative support
43 services to the charter school.
44 § 11. Paragraph (c) of subdivision 4 of section 2853 of the education
45 law, as amended by section 1 of part BB of chapter 56 of the laws of
46 2014, is amended to read as follows:
47 (c) A charter school may contract with the governing body of a public
48 college or university for the use of a school building and grounds, the
49 operation and maintenance thereof. Any such contract shall provide such
50 services or facilities at [cost] fair market value. [A school district
51 shall permit any charter school granted approval to co-locate, to use
52 such services and facilities without cost.]
53 § 12. Section 2853 of the education law is amended by adding three new
54 subdivisions 5, 6 and 7 to read as follows:
55 5. Disclosure. (a) A charter school shall report:
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1 (i) by the fifteenth day of February of each calendar year, the name,
2 address and total compensation paid to each person serving as a charter
3 executive in the previous calendar year; and
4 (ii) within thirty days of receipt, the name and address of any indi-
5 vidual, corporation, association, or entity providing a contribution,
6 gift, loan, advance or deposit of one thousand dollars or more to the
7 charter school or charter affiliate and the amount of each such contrib-
8 ution, gift, loan, advance or deposit.
9 (b) If a charter school either alone or together with any charter
10 affiliate has any direct or indirect interest in, or may be entitled to
11 receive any beneficial interest in, any asset or assets of any kind or
12 nature, alone or together, with a value in excess of one million
13 dollars, the charter school shall:
14 (i) ensure that the financial statements of the charter school and
15 each charter affiliate conform to and are reported according to general-
16 ly accepted accounting principles; and
17 (ii) ensure that the financial statements of the charter school and
18 any charter affiliate are audited in accordance with generally accepted
19 auditing standards by an independent certified public accountant or an
20 independent public accountant, that such audit receives an "unqualified"
21 opinion as to, among other things, compliance with generally accepted
22 accounting principles and that such audit is completed within nine
23 months of the conclusion of the fiscal year.
24 (c) If a charter school either alone or together with any charter
25 affiliate has any direct or indirect interest in, or may be entitled to
26 receive any beneficial interest in, any asset or assets of any kind or
27 nature, alone or together, with a value in excess of one million
28 dollars, it shall also report by the fifteenth day of February of each
29 ensuing calendar year the following:
30 (i) the most recent audited financial statements of the charter school
31 and any charter affiliate which shall conform to and be reported accord-
32 ing to generally accepted accounting principles;
33 (ii) the most recent auditor's report on the financial statements of
34 the charter school and any charter affiliate;
35 (iii) the "unqualified" opinion received from the auditor of the most
36 recent financial statements as to, among other things, compliance with
37 generally accepted accounting principles; and
38 (iv) any compensation or remuneration, whether paid or given, includ-
39 ing but not limited to salary, bonus, and deferred compensation and any
40 benefit having monetary value, including but not limited to, perqui-
41 sites, fringe benefits, employer contributions to defined contribution
42 retirement plans and other retirement or severance benefits received by
43 a charter executive from any source.
44 (d) (i) Each report required by this subdivision shall be accompanied
45 by a statement, under oath, by the chairperson of the school's board of
46 trustees or other appropriate member of the board of trustees, that,
47 after the due inquiry, the reports are true and correct to the best of
48 such person's knowledge and have been provided to each member of the
49 school's board of trustees.
50 (ii) A charter school to which paragraphs (b) and (c) of this subdivi-
51 sion do not apply shall, by the fifteenth day of February of each calen-
52 dar year, submit a statement as part of its report pursuant to subpara-
53 graph (ii) of paragraph (a) of this subdivision, under oath, by the
54 chairperson of the school's board of trustees or other appropriate
55 member of the board of trustees, that, after the due inquiry, the char-
56 ter school either alone or together with any charter affiliate does not
S. 7462 7
1 have any direct or indirect interest in or may be entitled to receive
2 any beneficial interest in any asset or assets of any kind or nature,
3 alone or together, with a value in excess of one million dollars.
4 (e) Any report required pursuant to this subdivision shall be made to
5 the board of regents, the school's charter entity, and the comptroller
6 of the city of New York for charter schools located in New York city and
7 the comptroller of the state of New York for charter schools located
8 outside of the city of New York. The commissioner shall ensure that such
9 report is made publicly available via the department's official internet
10 website within five days of its receipt.
11 (f) A charter school's failure to comply with the provisions of this
12 subdivision shall be a very significant factor in determining whether
13 the charter entity or the board of regents terminates the school's char-
14 ter.
15 (g) As used in this subdivision:
16 (i) "total compensation" shall include: (A) any compensation or remun-
17 eration, whether paid or given, by or on behalf of the charter school or
18 any charter affiliate, for services rendered to, on behalf of, or at the
19 request of the charter school, including but not limited to salary,
20 bonus, and deferred compensation and (B) any benefit having monetary
21 value provided by or on behalf of the charter school or any charter
22 affiliate, including but not limited to, perquisites, fringe benefits,
23 employer contributions to defined contribution retirement plans and
24 other retirement or severance benefits.
25 (ii) "charter affiliate" means: (A) any entity that is, directly or
26 indirectly, controlled by, in control of, or under common control with
27 the charter school or (B) any entity or affiliate thereof that provides
28 management, fundraising, or other administrative support services to the
29 charter school.
30 (iii) "charter executive" means: (A) an officer, director, trustee,
31 consultant, supervisory employee of a charter school or charter affil-
32 iate or (B) anyone who exerts operational or managerial influence or
33 control over the school including, but not limited to, influence or
34 control over the school through a charter management company.
35 6. Executive compensation. (a) No charter school shall provide any
36 compensation to any individual who is also an officer, director, trus-
37 tee, consultant, or employee of a charter affiliate or to any individual
38 who exerts operational or managerial influence or control over the
39 school through a charter affiliate.
40 (b)(i) No charter school or charter affiliate shall permit the total
41 compensation received by a charter executive to be greater than one
42 hundred ninety-nine thousand dollars per annum, including not only state
43 funds and state-authorized payments but also any other sources of fund-
44 ing, and greater than the seventy-fifth percentile of that compensation
45 provided to charter executives of other charter schools and charter
46 affiliates within the same or comparable geographic area as established
47 by a compensation survey identified, provided, or recognized by the
48 department and the director of the division of the budget.
49 (ii) If the department and the director of the division of the budget
50 find good cause after considering the factors set forth in subparagraph
51 (iv) of this paragraph, a waiver of the limit on total compensation that
52 a charter executive may receive may be granted, provided, however, that
53 in no event shall the total compensation exceed one hundred fifty
54 percent of Level I of the federal government's Rates of Basic Pay for
55 the Executive Schedule promulgated by the United States Office of
56 Personnel Management.
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1 (iii) The application for a waiver must be filed no later than the
2 fifteenth day of February of the year for which the waiver is sought.
3 The application shall be transmitted in the manner and form specified by
4 the department and the director of the division of the budget. A waiver
5 may be only for the single calendar year in which it is granted.
6 (iv) The following factors, in addition to any other deemed relevant
7 by the department and the director of the division of the budget, shall
8 be considered in the determination of whether good cause exists to grant
9 a waiver:
10 (A) the extent to which the executive compensation that is the subject
11 of the waiver request is comparable to that given to comparable charter
12 executives of charter schools or charter affiliates of the same size and
13 within the same or comparable geographic area;
14 (B) the extent to which the charter school would be unable to provide
15 educational services at the same levels of quality and availability
16 without a waiver of the limit on total compensation that a charter exec-
17 utive may receive;
18 (C) the nature, size, and complexity of the charter school or charter
19 affiliate's operations;
20 (D) the charter school or charter affiliate's review and approval
21 process for the total compensation that is the subject of the waiver,
22 including whether such process involved a review and approval by the
23 board of trustees of the school, whether such review was conducted by at
24 least two independent directors or independent members of the board of
25 trustees, whether such review included an assessment of comparability
26 data including a compensation survey, and a contemporaneous substanti-
27 ation of the deliberation and decision to approve the total compen-
28 sation;
29 (E) the qualifications and experience possessed by or required for the
30 charter executive's position; and
31 (F) the charter school or charter affiliate's efforts, if any, to
32 secure a charter executive with the same levels of experience, exper-
33 tise, and skills for the position of the charter executive at lower
34 levels of compensation.
35 (v) To be considered, an application for such a waiver shall comply
36 with this paragraph in its entirety.
37 (vi) Unless additional information has been requested but not received
38 from the charter school or charter affiliate, a decision on a timely
39 submitted waiver application shall be provided no later than sixty
40 calendar days after submission of the application.
41 (vii) If granted, a waiver to a charter executive shall remain in
42 effect for the calendar year it is issued in, but shall be deemed
43 revoked if:
44 (A) the total compensation that is the subject of the waiver
45 increases; or
46 (B) notice of revocation is provided to the charter executive at the
47 discretion of the department as a result of additional relevant circum-
48 stances.
49 (viii) Information provided in connection with a waiver application
50 shall be subject to public disclosure pursuant to article six of the
51 public officers law.
52 (ix) Where a waiver is granted, the department shall make it publicly
53 available via the department's official internet website within five
54 days.
55 (c) No charter school shall use funds received pursuant to section
56 twenty-eight hundred fifty-six of this article or allow a charter affil-
S. 7462 9
1 iate to use funds received from the charter school to provide a total
2 compensation to a charter executive greater than one hundred ninety-nine
3 thousand dollars per annum.
4 (d) Failure to comply with the provisions of this subdivision shall
5 result in the assessment of a penalty against the payor in an amount
6 equal to the amount of compensation paid or provided in violation of
7 this subdivision.
8 (e) 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 (f) 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 is not limited to, influence or
31 control over the school through a charter management company.
32 7. Notification of disenrollment. Within five business days of a
33 student who was enrolled by the charter school ceasing to be enrolled, a
34 charter school shall notify the superintendent of the district in which
35 the charter school is located or, for charter schools located within the
36 geographic area served by the city school district of the city of New
37 York, the chancellor of the city school district of the city of New
38 York, of the name of such student.
39 § 13. Subparagraph 5 of paragraph (e) of subdivision 3 of section 2853
40 of the education law, as amended by section 11 of part A of chapter 54
41 of the laws of 2016, clause (B) as amended by section 5 of part YYY of
42 chapter 59 of the laws of 2017, is amended to read as follows:
43 (5) For a new charter school whose charter is granted or for an exist-
44 ing charter school whose expansion of grade level, pursuant to this
45 article, is approved by their charter entity, if the appeal results in a
46 determination in favor of the charter school, for six years the city
47 school district shall pay the charter school (A) for the initial three
48 years in which aid is payable, an amount attributable to the grade level
49 expansion or the formation of the new charter school that is equal to
50 the lesser of:
51 [(A)] (i) the actual rental cost of an alternative privately owned
52 site selected by the charter school or
53 [(B)] (ii) thirty percent of the product of the charter school's basic
54 tuition for the current school year and [(i)] (I) for a new charter
55 school that first commences instruction on or after July first, two
56 thousand fourteen, the charter school's current year enrollment; or
S. 7462 10
1 [(ii)] (II) for a charter school which expands its grade level, pursuant
2 to this article, the positive difference of the charter school's enroll-
3 ment in the current school year minus the charter school's enrollment in
4 the school year prior to the first year of the expansion; and
5 (B) in the fourth year, the city school district shall pay ninety
6 percent multiplied by the amount calculated pursuant to clause (A) of
7 this subparagraph; and
8 (C) in the fifth year, the city school district shall pay sixty
9 percent multiplied by the amount calculated pursuant to clause (A) of
10 this subparagraph; and
11 (D) in the sixth year, the city school district shall pay thirty
12 percent multiplied by the amount calculated pursuant to clause (A) of
13 this subparagraph.
14 § 14. Paragraph (b) of subdivision 1 of section 2854 of the education
15 law, as amended by section 10-b of part A of chapter 56 of the laws of
16 2014, is amended to read as follows:
17 (b) A charter school shall meet the same health and safety, civil
18 rights, and student assessment requirements applicable to other public
19 schools, except as otherwise specifically provided in this article. A
20 charter school shall be exempt from all other state and local laws,
21 rules, regulations or policies governing public or private schools,
22 boards of education, school districts and political subdivisions,
23 including those relating to school personnel and students, except as
24 specifically provided in the school's charter or in this article. Noth-
25 ing in this subdivision shall affect the requirements of compulsory
26 education of minors established by part one of article sixty-five of
27 this chapter, nor shall anything in this subdivision affect the require-
28 ments of the charter school to comply with section one hundred three of
29 the general municipal law and articles eight and nine of the labor law
30 with respect to the construction, reconstruction, demolition, exca-
31 vation, rehabilitation, repair, renovation, or alteration of any charter
32 school facility.
33 § 15. Subdivision 2 of section 2854 of the education law, as added by
34 chapter 4 of the laws of 1998, paragraph (a) as amended by chapter 101
35 of the laws of 2010, and paragraph (b) as amended by section 3 of
36 subpart A of part B of chapter 20 of the laws of 2015, is amended to
37 read as follows:
38 2. Admissions; enrollment; students. (a) A charter school shall be
39 nonsectarian in its programs, admission policies, employment practices,
40 and all other operations and shall not charge tuition or fees; provided
41 that a charter school may require the payment of fees on the same basis
42 and to the same extent as other public schools. A charter school shall
43 not discriminate against any student, employee or any other person on
44 the basis of ethnicity, national origin, gender, or disability or any
45 other ground that would be unlawful if done by a school. Admission of
46 students shall not be limited on the basis of intellectual ability,
47 measures of achievement or aptitude, athletic ability, disability, race,
48 creed, gender, national origin, religion, or ancestry; provided, howev-
49 er, that nothing in this article shall be construed to prevent the
50 establishment of a single-sex charter school or a charter school
51 designed to provide expanded learning opportunities for students at-risk
52 of academic failure or students with disabilities and English language
53 learners; and provided, further, that the charter school shall demon-
54 strate good faith efforts to attract and retain [a comparable] an equal
55 or greater enrollment of students with disabilities, English language
56 learners, and students who are eligible applicants for the free and
S. 7462 11
1 reduced price lunch program when compared to the enrollment figures for
2 such students in the school district in which the charter school is
3 located. A charter shall not be issued to any school that would be whol-
4 ly or in part under the control or direction of any religious denomi-
5 nation, or in which any denominational tenet or doctrine would be
6 taught.
7 (b) (i) Any child who is qualified under the laws of this state for
8 admission to a public school is qualified for admission to a charter
9 school. Applications for admission to a charter school shall be submit-
10 ted on a uniform application form created by the department and shall be
11 made available by a charter school in languages predominately spoken in
12 the community in which such charter school is located. [The]
13 (ii) A charter school shall enroll and continually keep enrolled the
14 minimum number of students in each of the following categories: (A)
15 students who are English language learners as defined in regulations of
16 the commissioner, (B) students who receive or are mandated to receive
17 any special education service, (C) students who have individual educa-
18 tion plans that mandate they receive services for at least sixty percent
19 of the school day outside the general education setting, (D) students
20 who are eligible to receive free lunch in accordance with title I of the
21 elementary and secondary education act, and (E) students who reside in
22 temporary or transitional housing. The minimum number of students a
23 charter school must enroll and continually keep enrolled in each such
24 category shall be the number of students that, as a percentage of the
25 students authorized to be served by the charter school in its charter,
26 is equal to the percentage of students in each category that non-charter
27 public schools in the district where the charter school is located
28 enrolled in the preceding June in all of the grades combined which are
29 served by the charter school. For purposes of this subparagraph, for the
30 city school district of the city of New York, district shall mean the
31 community school district and shall include all non-charter public
32 schools, except those in district seventy-five, geographically located
33 in the community school district.
34 (iii) Prior to a charter school selecting or enrolling students for
35 the next school year, the commissioner shall provide the charter school
36 with the minimum number of students it must enroll and continually keep
37 enrolled in each category pursuant to subparagraph (ii) of this para-
38 graph. The minimum number of students each charter school must enroll
39 and continually keep enrolled in each category pursuant to subparagraph
40 (ii) of this paragraph shall be made public by the commissioner no later
41 than five business days after it has been provided to the charter
42 school.
43 (iv) A charter school shall enroll each eligible student who submits a
44 timely application by the first day of April each year[,] unless the
45 number of applications exceeds the capacity of the grade level or build-
46 ing or would cause the charter school to be below the minimum number of
47 students it must enroll and continually keep enrolled in each category
48 pursuant to subparagraph (ii) of this paragraph. In such cases, students
49 shall be accepted from among applicants by a random selection process,
50 provided[, however,] that separate random selection processes shall be
51 conducted for students that are not in any category set forth in subpar-
52 agraph (ii) of this paragraph and for students in each category set
53 forth in subparagraph (ii) of this paragraph such that a charter school
54 enrolls at least the minimum number of students required pursuant to
55 subparagraph (ii) of this paragraph.
S. 7462 12
1 (v) Where a charter school does not enroll the minimum number of
2 students it must enroll and continually keep enrolled in each category
3 set forth in subparagraph (ii) of this paragraph, the charter school
4 shall hold open a sufficient number of enrollment spaces such that it is
5 possible for the charter school, consistent with its charter, to subse-
6 quently enroll the number of students required by subparagraph (ii) of
7 this paragraph.
8 (vi) A charter school may provide an enrollment preference [shall be
9 provided] to pupils returning to the charter school in the second or any
10 subsequent year of operation and pupils residing in the school district
11 in which the charter school is located, and siblings of pupils already
12 enrolled in the charter school provided that the charter school enrolls
13 and continually keeps enrolled the minimum number of students required
14 in each category pursuant to subparagraph (ii) of this paragraph and
15 holds open the number of enrollment spaces as required by subparagraph
16 (v) of this paragraph. Preference may also be provided to children of
17 employees of the charter school or charter management organization,
18 provided that the charter school enrolls and continually keeps enrolled
19 the minimum number of students required in each category pursuant to
20 subparagraph (ii) of this paragraph and holds open the number of enroll-
21 ment spaces as required by subparagraph (v) of this paragraph and
22 provided further that such children of employees may constitute no more
23 than fifteen percent of the charter school's total enrollment.
24 (vii) For purposes of this paragraph, if a student withdraws from a
25 charter school as a result of a voluntary decision of the student's
26 parent or guardian and, as a direct result, the charter school no longer
27 has the minimum number of students in each category required pursuant to
28 subparagraph (ii) of this paragraph, the charter school shall neverthe-
29 less be considered to have continually kept enrolled the minimum number
30 of students required by subparagraph (ii) of this paragraph if, within
31 thirty days of the student being withdrawn, the charter school replaces
32 the student that was withdrawn with a different student such that the
33 charter school has the minimum number of students in each category
34 required pursuant to subparagraph (ii) of this paragraph, provided
35 however, that this subparagraph shall not apply (A) if the charter
36 school was already in violation of the requirements of subparagraph (ii)
37 of this paragraph at the time the student was withdrawn or (B) if the
38 decision of the student's parent or guardian was substantially motivated
39 by any action or inaction of the charter school, or any of its agents or
40 employees, that was in violation of any law, rule, or regulation.
41 (viii) (A) A charter school shall report the names of any parents or
42 guardians of students who are on a waitlist for enrollment in the char-
43 ter school to the superintendent of the district in which the charter
44 school is located or, for charter schools located within the geographic
45 area served by the city school district of the city of New York, the
46 chancellor of the city school district of the city of New York, whether
47 each such student is in one of the categories set forth in subparagraph
48 (ii) of this paragraph and, if so, which one.
49 (B) A charter school that, at any time, does not have enrolled the
50 minimum number of students required in each category pursuant to subpar-
51 agraph (ii) of this paragraph shall notify the superintendent of the
52 district in which the charter school is located or, for charter schools
53 located within the geographic area served by the city school district of
54 the city of New York, the chancellor of the city school district of the
55 city of New York, within five days of the date of the school being below
56 the minimum number of students. A separate notification shall be
S. 7462 13
1 provided each time a charter school's enrollment falls below the minimum
2 in any category pursuant to subparagraph (ii) of this paragraph.
3 (C) Where the superintendent of the district or the chancellor of the
4 city school district of the city of New York receives notification
5 pursuant to clause (B) of this subparagraph, the superintendent shall
6 first offer the enrollment spaces to any parents or guardians of
7 students who are in a category in which the charter school is below the
8 minimum set forth in subparagraph (ii) of this paragraph who are on the
9 school's waitlist, then to any parents or guardians of students who are
10 in a category in which the charter school is below the minimum set forth
11 in subparagraph (ii) of this paragraph who are on the waitlist of anoth-
12 er charter school in the district in which the charter school is located
13 or, for charter schools located within the geographic area served by the
14 city school district of the city of New York geographically located in
15 the community school district, and then to any other parents or guardi-
16 ans of students who are in a category in which the charter school is
17 below the minimum set forth in subparagraph (ii) of this paragraph who
18 reside in the district; such process of enrollment offers shall continue
19 until the charter school is no longer below such minimum in any category
20 or such superintendent or chancellor certifies there are no such
21 students seeking enrollment.
22 (D) Offers made pursuant to this subparagraph shall be made in writing
23 in the parent or guardian's primary language. Where an offer is made
24 pursuant to this subparagraph and the parent or guardian accepts, the
25 charter school shall enroll the student within five calendar days of the
26 offer being accepted.
27 (ix) (A) For each month during the school year, a charter school shall
28 report the number of students then enrolled, as of the first day of the
29 month, in each category set forth in subparagraph (ii) of this paragraph
30 and the number of students then enrolled, as of the first day of the
31 month, that are in none of the categories set forth in subparagraph (ii)
32 of this paragraph.
33 (B) Reports pursuant to this subparagraph shall be made to the board
34 of regents, the school's charter entity, the comptroller of the city of
35 New York for charter schools located in New York city and the comp-
36 troller of the state of New York for charter schools located outside of
37 the city of New York, and the superintendent of the district in which
38 the charter school is located or, for charter schools located within the
39 geographic area served by the city school district of the city of New
40 York, the chancellor of the city school district of the city of New
41 York. The commissioner shall ensure that such report is made publicly
42 available via such department's official internet website within five
43 days of its receipt.
44 (C) Reports pursuant to this subparagraph shall be made on the fifth
45 day of the ensuing month during the school year and shall be accompanied
46 by a statement, under oath, by the chairperson of the school's board of
47 trustees or other appropriate member of the board of trustees, that,
48 after the due inquiry, the reports are true and correct and have been
49 provided to each member of the school's board of trustees.
50 (x) The commissioner shall establish regulations to require that the
51 random selection [process] processes conducted pursuant to this para-
52 graph be performed in a transparent and equitable manner and to require
53 that the time and place of the random selection process be publicized in
54 a manner consistent with the requirements of section one hundred four of
55 the public officers law and be open to the public. [For] Except where
56 another definition is provided, for the purposes of this paragraph and
S. 7462 14
1 paragraph (a) of this subdivision, the school district in which the
2 charter school is located shall mean, for the city school district of
3 the city of New York, the community district in which the charter school
4 is located.
5 (xi) The commissioner may, by regulation, require the board of educa-
6 tion of each school district or the chancellor of the city school
7 district of the city of New York to provide such information as is
8 necessary to calculate the minimum number of students a charter school
9 must enroll and continually have enrolled pursuant to subparagraph (ii)
10 of this paragraph. Such information shall be made public by the commis-
11 sioner within five business days of receipt.
12 (xii)(A) If a charter school fails to enroll the number of students
13 required by subparagraph (ii) of this paragraph the appropriate school
14 district shall withhold from the charter school's funding an amount
15 equal to the additional per pupil funding the charter school would have
16 received had each student not enrolled as required by subparagraph (ii)
17 of this paragraph been enrolled.
18 (B) Money withheld by the school district in accordance with this
19 subparagraph shall be returned to the commissioner for distribution to
20 each of the school districts, using an equitable formula determined by
21 the commissioner, provided the charter school or schools from which the
22 monies are withheld shall not be entitled to the return of any money
23 withheld pursuant to this subparagraph or any additional monies as a
24 result of the commissioner's distribution of funds pursuant to this
25 subparagraph.
26 (xiii) (A) No charter school shall first commence instruction if it is
27 operated by, managed by, affiliated with, in the same chain as, shares
28 the same management company as, or has any common charter applicant as,
29 a school that has been in violation, within the last two years, of the
30 enrollment requirements of subparagraph (ii) of this paragraph.
31 (B) No charter school shall expand beyond the grades with enrolled
32 students, even if such expansion is authorized by its charter, if it has
33 been in violation, within the last two years, of the enrollment require-
34 ments of subparagraph (ii) of this paragraph.
35 (C) A charter school that does not have enrolled the minimum number of
36 students as required by subparagraph (ii) of this paragraph shall not be
37 offered or entitled pursuant to paragraph (e) of subdivision three of
38 section twenty-eight hundred fifty-three of this article (1) a co-loca-
39 tion site in a public school building at no cost or (2) space in a
40 privately owned or other publicly owned facility at the expense of the
41 city school district. A charter school that has already been co-located
42 in a public school building or given space in a privately owned or other
43 publicly owned facility pursuant to this paragraph and then fails to
44 continually have enrolled the required minimum number of students shall
45 be required to pay the fair market value of such space for such period
46 of time of non-compliance.
47 (xiv) The provisions of this paragraph shall be enforceable by the
48 commissioner or by a court of competent jurisdiction. Any employee of
49 the school district in which the charter school is located or the parent
50 or guardian of a student attending the district in which the charter
51 school is located shall have standing to enforce the provisions of this
52 paragraph.
53 (xv) A charter school's failure to comply with the provisions of this
54 paragraph shall be a very significant factor in determining whether the
55 charter entity or the board of regents terminates the school's charter.
S. 7462 15
1 (b-1) Prior to submission of enrollment counts to a school district
2 pursuant to subdivision one of section twenty-eight hundred fifty-six of
3 this article, on or after October first of the two thousand twenty-five-
4 -two thousand twenty-six school year and October first of each school
5 year thereafter, a charter school shall determine whether that school
6 district is the school district of residence of each student for whom
7 enrollment is claimed. Such residency determination shall be made in
8 accordance with the regulations of the commissioner and the residency
9 policy of the school district in which the charter school is located,
10 provided that the charter school may fulfill such requirement by requir-
11 ing that the parents or other persons in parental relation register
12 their child with the school district they have identified as their
13 school district of residence. Notwithstanding any other provision of
14 law to the contrary, the parents or other persons in parental relation
15 shall not be required to annually prove their continued residency,
16 provided that they either annually certify to the charter school and the
17 school district of residence that their residency has not changed or
18 notify the charter school and the school district that their residency
19 has changed and that a new school district of residence should be iden-
20 tified pursuant to this paragraph. Upon making a residency determi-
21 nation, a charter school making its own residency determination shall
22 promptly submit its proof of residence to the school district identified
23 as the district of residence for purposes of enrollment of the student
24 in such school district in accordance with subdivision one of section
25 twenty-eight hundred fifty-six of this article, and the provision of
26 services pursuant to subdivision four of section twenty-eight hundred
27 fifty-three of this article. In the event of a dispute over the residen-
28 cy of a student, the school district shall make its own residency deter-
29 mination pursuant to the regulations of the commissioner after consider-
30 ing the proof of residency submitted by the charter school, and such
31 determination may be appealed to the commissioner by the charter school
32 or by the parent or other person in parental relation or both pursuant
33 to section three hundred ten of this chapter. During the pendency of
34 such appeal, the student shall be deemed enrolled in the school
35 district, shall be entitled to services pursuant to subdivision four of
36 section twenty-eight hundred fifty-three of this article, and the school
37 district shall be liable for charter school tuition, provided that upon
38 a final determination in such appeal that the student is not a resident
39 of the school district, the school district may deduct the cost of such
40 tuition and services from future payments due the charter school. The
41 provisions of this paragraph shall not apply to charter schools located
42 in a city having a population of one million or more.
43 (c) A charter school shall serve one or more of the grades one through
44 twelve, and shall limit admission to pupils within the grade levels
45 served. Nothing herein shall prohibit a charter school from establishing
46 a kindergarten program.
47 (d) A student may withdraw from a charter school at any time and
48 enroll in a public school. [A charter school may refuse admission to any
49 student who has been expelled or suspended from a public school until
50 the period of suspension or expulsion from the public school has
51 expired, consistent with the requirements of due process]
52 (i) A student may only be disciplined, suspended or expelled from a
53 charter school in accordance with the applicable provisions of subdivi-
54 sions two-a, three, and three-a of section thirty-two hundred fourteen
55 of this chapter. Every charter school shall develop a code of conduct in
S. 7462 16
1 accordance with the provisions of section twenty-eight hundred one of
2 this title.
3 (ii) Every charter school shall submit a detailed annual report
4 regarding disciplinary measures imposed on students. The report shall be
5 submitted to the charter entity and the board of regents as part of the
6 annual report required pursuant to subdivision two of section twenty-
7 eight hundred fifty-seven of this article. The report shall be in a form
8 prescribed by the commissioner, and shall include, but not be limited
9 to, number of classroom removals, number of in-school suspensions,
10 number of out-of-school suspensions, number of expulsions, and the
11 action the student took that led to each disciplinary measure imposed.
12 Such data shall be disaggregated by race/ethnicity, status as a student
13 with a disability and status as an English language learner. The report
14 shall be posted on the department's website.
15 (iii) For the purposes of this subdivision:
16 (A) the term "superintendent," "superintendent of schools," "district
17 superintendent of schools," or "community superintendent," as used in
18 subdivision three of section thirty-two hundred fourteen of this chap-
19 ter, as such terms relate to charter schools shall mean the chairperson
20 of the board of trustees of the charter school or the chief school offi-
21 cer of the charter school; and
22 (B) the term "board of education" or "board," as used in subdivision
23 three of section thirty-two hundred fourteen of this chapter, as such
24 terms relate to charter schools shall mean the board of trustees of the
25 charter school.
26 § 16. Subdivision 1 of section 2855 of the education law, as amended
27 by chapter 101 of the laws of 2010, is amended to read as follows:
28 1. The charter entity, or the board of regents, may terminate a char-
29 ter upon any of the following grounds:
30 (a) When a charter school's outcome on student assessment measures
31 adopted by the board of regents falls below the level that would allow
32 the commissioner to revoke the registration of another public school,
33 and student achievement on such measures has not shown improvement over
34 the preceding three school years;
35 (b) [Serious violations] A violation of law;
36 (c) [Material and substantial] A violation of the charter[, including
37 fiscal mismanagement];
38 (d) When the public employment relations board makes a determination
39 that the charter school [demonstrates a practice and pattern of egre-
40 gious and intentional violations of] has violated subdivision one of
41 section two hundred nine-a of the civil service law involving interfer-
42 ence with or discrimination against employee rights under article four-
43 teen of the civil service law; or the national labor relations board
44 created pursuant to subchapter II of chapter seven of title twenty-nine
45 of the United States Code, or any person or entity to whom the national
46 labor relations board has lawfully delegated its authority, makes a
47 determination that the charter school has violated section 158(a) of
48 title twenty-nine of the United States Code; or
49 (e) [Repeated failure to comply with the requirement to meet or exceed
50 enrollment and retention targets of students with disabilities, English
51 language learners, and students who are eligible applicants for the free
52 and reduced price lunch program pursuant to targets established by the
53 board of regents or the board of trustees of the state university of New
54 York, as applicable. Provided, however, if no grounds for terminating a
55 charter are established pursuant to this section other than pursuant to
56 this paragraph, and the charter school demonstrates that it has made
S. 7462 17
1 extensive efforts to recruit and retain such students, including
2 outreach to parents and families in the surrounding communities, widely
3 publicizing the lottery for such school, and efforts to academically
4 support such students in such charter school, then the charter entity or
5 board of regents may retain such charter.] Failure to comply with the
6 requirements of paragraph (b) of subdivision two of section twenty-eight
7 hundred fifty-four of this article; or
8 (f) Failure to comply with the data reporting requirements prescribed
9 in subdivisions two and two-a of section twenty-eight hundred fifty-sev-
10 en of this article.
11 § 17. Subdivision 3 of section 2855 of the education law, as added by
12 chapter 4 of the laws of 1998, is amended to read as follows:
13 3. (a) In addition to the provisions of subdivision two of this
14 section, the charter entity or the board of regents may place a charter
15 school falling within the provisions of subdivision one of this section
16 on probationary status to allow the implementation of a remedial action
17 plan. The failure of a charter school to comply with the terms and
18 conditions of a remedial action plan may result in summary revocation of
19 the school's charter.
20 (b) A charter school that is placed on probationary status shall annu-
21 ally notify the parents or guardians of all students and applicants of
22 the placement. The initial notice shall be distributed within two weeks
23 of being placed on probationary status. Such notice shall be written and
24 delivered via mail. The department shall identify all charter schools on
25 probationary status on the department's website and shall also post the
26 remedial action plan.
27 § 18. Subdivision 4 of section 2855 of the education law, as added by
28 chapter 4 of the laws of 1998, is amended to read as follows:
29 4. (a) Any individual or group may bring a complaint to the board of
30 trustees of a charter school alleging a violation of the provisions of
31 this article, the charter, or any other provision of law relating to the
32 management or operation of the charter school. If, after presentation of
33 the complaint to the board of trustees of a charter school, the individ-
34 ual or group determines that such board has not adequately addressed the
35 complaint, they may present that complaint to the charter entity, which
36 shall investigate and respond. If, after presentation of the complaint
37 to the charter entity, the individual or group determines that the char-
38 ter entity has not adequately addressed the complaint, they may present
39 that complaint to the board of regents, which shall investigate and
40 respond. The charter entity and the board of regents shall have the
41 power and the duty to issue appropriate remedial orders to charter
42 schools under their jurisdiction to effectuate the provisions of this
43 section.
44 (b) At the beginning of each school year, a charter school shall
45 provide the parent or guardian of each student enrolled in the charter
46 school information detailing the process by which a complaint can be
47 brought against the charter school pursuant to paragraph (a) of this
48 subdivision. In addition to detailing the process by which a complaint
49 can be brought, the information provided shall include, but not be
50 limited to the contact information for the board of trustees of the
51 charter school in which the student is enrolled, the contact information
52 for the charter entity of the charter school, and the contact informa-
53 tion for the board of regents, if the board of regents is not the char-
54 ter entity. Such information shall also be posted and updated annually
55 on the charter school's website.
S. 7462 18
1 § 19. Subdivisions 2 and 3 of section 2856 of the education law are
2 renumbered subdivisions 3 and 4 and a new subdivision 2 is added to read
3 as follows:
4 2. In the event that in any school year a charter school receives
5 combined payments from any local, state, or federal source that exceed
6 expenditures for such school year related to the operation of such char-
7 ter school by seven percent, then any excess funds above such amount
8 shall be returned proportionately to all school districts that have paid
9 tuition to such charter school.
10 § 20. Subdivision 3 of section 2856 of the education law, as added by
11 chapter 4 of the laws of 1998 and as renumbered by section nineteen of
12 this act, is amended to read as follows:
13 3. (a) In the event of the failure of the school district to make
14 payments required by this section, the state comptroller shall deduct
15 from any state funds which become due to such school district an amount
16 equal to the unpaid obligation. The comptroller shall pay over such sum
17 to the charter school upon certification of the commissioner. The
18 commissioner shall promulgate regulations to implement the provisions of
19 this subdivision.
20 (b) At least thirty days prior to submission of a request for an
21 intercept of state funds pursuant to paragraph (a) of this subdivision,
22 the charter school shall provide the school district of residence with a
23 list of students whose tuition is proposed to be included in the inter-
24 cept and documentation of any special education services provided by the
25 charter school, the cost of which would be included in the intercept.
26 If the school district objects to inclusion of the tuition or cost of
27 services in the intercept, the school district shall provide the charter
28 school with a written statement of its reasons for objecting to the
29 intercept that identifies the students whose costs are in dispute and
30 the charter school shall schedule a resolution session for the purpose
31 of resolving the dispute, which shall be held within five business days
32 of receipt of the school district's objection. Each party shall ensure
33 that their representatives who attend the resolution are fully author-
34 ized to bind the school district or charter school, and any agreement
35 reached at the resolution session shall be final and binding upon both
36 parties. In the event the school district does not notify the charter
37 school of its objections within ten days of its receipt of the list of
38 students or fails to participate in a resolution session, the school
39 district shall be deemed to have waived its objections to the intercept
40 and the charter school shall not be required to offer a resolution
41 session. If the parties are unable to reach agreement at a resolution
42 session, they may agree to schedule additional resolution sessions or,
43 if one of the parties informs the other that agreement is not possible,
44 the dispute may be raised by the district as a charter school complaint
45 pursuant to subdivision four of section twenty-eight hundred fifty-five
46 of this article, or, if the dispute concerns the residency of a student,
47 an appeal may be brought pursuant to paragraph (c) of this subdivision.
48 The department shall not process an intercept for tuition or the cost of
49 services of a student whose costs are in dispute until the charter
50 school notifies the department that a resolution session has been held
51 and no agreement has been reached, or that no resolution session is
52 required because the school district failed to provide timely notice or
53 failed to participate in a scheduled resolution session.
54 (c) In the event of a dispute over the residency of a student, the
55 school district shall make its own residency determination pursuant to
56 the regulations of the commissioner after considering the proof of resi-
S. 7462 19
1 dency submitted by the charter school, and such determination may be
2 appealed to the commissioner by the charter school or by the parent or
3 other person in parental relation or both pursuant to section three
4 hundred ten of this chapter. During the pendency of such appeal, the
5 student shall be deemed enrolled in the school district, shall be enti-
6 tled to services pursuant to subdivision four of section twenty-eight
7 hundred fifty-three of this article, and the school district shall be
8 liable for charter school tuition, provided that upon a final determi-
9 nation in such appeal that the student is not a resident of the school
10 district, the school district may deduct the cost of such tuition and
11 services from future payments due the charter school.
12 § 21. Subdivision 2 of section 2857 of the education law, as amended
13 by chapter 101 of the laws of 2010, is amended and a new subdivision 2-a
14 is added to read as follows:
15 2. Each charter school shall submit to the charter entity and to the
16 board of regents an annual report. Such report shall be issued no later
17 than the first day of August of each year for the preceding school year
18 and shall be made publicly available by such date and shall be posted on
19 both the charter school's [website] and the department's websites. The
20 annual report shall be in such form as shall be prescribed by the
21 commissioner and shall include at least the following components:
22 (a) a charter school report card, which shall include measures of the
23 comparative academic and fiscal performance of the school, as prescribed
24 by the commissioner in regulations adopted for such purpose. Such meas-
25 ures shall include, but not be limited to, graduation rates, dropout
26 rates, performance of students on standardized tests, college entry
27 rates, total spending per pupil and administrative spending per pupil.
28 Such measures shall be presented in a format that is easily comparable
29 to similar public schools. In addition, the charter school shall ensure
30 that such information is easily accessible to the community including
31 making it publicly available by transmitting it to local newspapers of
32 general circulation and making it available for distribution at board of
33 trustee meetings[.];
34 (b) discussion of the progress made towards achievement of the goals
35 set forth in the charter[.];
36 (c) a certified financial statement setting forth, by appropriate
37 categories, the revenues and expenditures for the preceding school year,
38 including a copy of the most recent independent fiscal audit of the
39 school and any audit conducted by the comptroller of the state of New
40 York[.];
41 (d) efforts taken by the charter school in the existing school year,
42 and a plan for efforts to be taken in the succeeding school year, to
43 meet or exceed the enrollment [and retention targets set by the board of
44 regents or the board of trustees of the state university of New York, as
45 applicable, of students with disabilities, English language learners,
46 and students who are eligible applicants for the free and reduced price
47 lunch program established pursuant to paragraph (e) of subdivision four
48 of section twenty-eight hundred fifty-one of this article.] requirements
49 of subparagraph (ii) of paragraph (b) of subdivision two of section
50 twenty-eight hundred fifty-four of this article;
51 (e) for any charter school that contracts with a management company or
52 any other entity that provides services to the charter school, a
53 detailed statement of services provided to the charter school by the
54 management company and/or any other entity and the amount the charter
55 school pays for such services. The department shall post the annual
56 reports submitted by charter schools on the department's website; and
S. 7462 20
1 (f) a notice of any relationship that may exist between any member of
2 a charter school's board of trustees or charter school staff and any
3 for-profit or not-for-profit corporate or other business entity that is
4 responsible for the administration, management or operation of such
5 charter school or related vendor.
6 2-a. Each charter school shall post contact information for the
7 school's board of trustees as well as the name and contact information
8 of the school's charter entity on the website of the charter school.
9 § 22. Subdivision 7 of section 179-q of the state finance law, as
10 added by chapter 166 of the laws of 1991, is amended to read as follows:
11 7. "Not-for-profit organization" or "organization" means a domestic
12 corporation incorporated pursuant to or otherwise subject to the not-
13 for-profit corporation law, a charitable organization registered with
14 the secretary of state, a special act corporation created pursuant to
15 chapter four hundred sixty-eight of the laws of eighteen hundred nine-
16 ty-nine, as amended, a special act corporation formed pursuant to chap-
17 ter two hundred fifty-six of the laws of nineteen hundred seventeen, as
18 amended, a corporation authorized pursuant to an act of congress
19 approved January fifth, nineteen hundred five, (33 stat. 599), as
20 amended, a corporation established by merger of charitable organizations
21 pursuant to an order of the supreme court, New York county dated July
22 twenty-first, nineteen hundred eighty-six and filed in the department of
23 state on July twenty-ninth, nineteen hundred eighty-six, or a corpo-
24 ration having tax exempt status under section 501(c)(3) of the United
25 States Internal revenue code, and shall further be deemed to mean and
26 include any federation of charitable organizations. Provided, however,
27 that a public educational entity within the meaning of section seventy-
28 one of part C of chapter fifty-seven of the laws of two thousand four
29 shall not be deemed a "not-for-profit organization" or "organization"
30 for purposes of this article.
31 § 23. This act shall take effect immediately.
