An Act concerning the authorization, regulation, and monitoring of charter schools, revising various parts of the statutory law, supplementing P.L.1995, c.426 (C.18A:36A-1 et seq.) and P.L.2000, c.72 (C.18A:7G-1 et al.), and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. There is established the charter school authorizing board. The board shall consist of nine members, no more than five of whom shall be members of the same political party. Three members of the board shall be appointed by the Governor, two members of the board shall be appointed by the President of the Senate, two members of the board shall be appointed by the Speaker of the General Assembly, one member of the board shall be appointed by the Minority Leader of the Senate, and one member of the board shall be appointed by the Minority Leader of the General Assembly. Collectively, the members of the board shall have experience in public and nonprofit governance, management, finance, public school leadership, assessment, curriculum, instruction, and public school law. Each member shall have a demonstrated understanding of and commitment to the use of charter schools as a strategy for strengthening public education. The appointments to the board shall be made no later than 90 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. The term of the first members appointed by the Governor shall be four years, and the term for members subsequently appointed or reappointed by the Governor shall be three years. The term of a member of the board appointed by the President of the Senate or the Speaker of the General Assembly shall be three years. The term of a member of the board appointed by the Minority Leader of the Senate or the Minority Leader of the General Assembly shall be two years. No member of the board shall serve for more than seven consecutive years. A vacancy on the board shall be filled by the original appointment authority for the remainder of the term.

c. The members of the board shall serve without compensation, but may be reimbursed for any necessary expenses incurred in the performance of their duties.

2. (New section) a. The Commissioner of Education shall be responsible for the ongoing oversight of the performance and effectiveness of the charter school authorizing board. The commissioner may, at any time, take corrective action against the charter school authorizing board, including suspending the charter school authorizing board's authority, for a period not to exceed three school years, for:

(1) failure to adequately discharge the responsibilities established pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) failure to provide adequate oversight of one or more charter schools;

(3) persistent unsatisfactory performance of charter schools; or

(4) any other good cause as determined by the commissioner.

b. In the event that the commissioner suspends the charter school authorizing board's authority, the oversight of charter schools shall transfer to the commissioner.

3. (New section) An employee, agent, or representative of a charter school authorizing board shall not serve as an employee, agent, representative, vendor, contractor, or board of trustee member of a charter school.

4. (New section) No later than August 1 of each year, the commissioner shall issue a request for proposals for prospective charter school applicants. The information included in the request for proposal shall include, but need not be limited to, the following:

a. The specific school district or community to be served by any charter school that is to be granted a charter by the charter school authorizer;

b. The criteria that the commissioner will use to approve or reject a charter school application submitted in response to the request for proposal. The criteria shall include a scoring rubric that details the factors on which a charter school application will be assessed, and the weight that will be given to each factor. One factor shall be the recommendation of the board of education of the district of residence, or the State district superintendent, that the charter application be approved pursuant to subsection c. of section 4 of P.L.1995, c.426 (C.18A:36A-4). This factor shall account for 30% in the scoring rubric;

c. The performance framework that the charter school authorizing board has developed for the oversight and evaluation of a charter school pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

d. Any preference that the commissioner may have for an applicant that demonstrates the capacity to serve a specific disadvantaged population of students.

5. (New section) a. When reviewing a charter school application, the commissioner shall employ procedures, practices, and criteria that are consistent with nationally recognized principles and standards for charter school authorization, and ensure that the application review procedures are transparent. In evaluating charter school applications, the commissioner shall avoid any real or perceived conflicts of interest. The charter school application review process shall include, but not be limited to, the following:

(1) an in-person interview with each charter school applicant; and

(2) at least two public hearings at which each charter school application is discussed, and the residents of the school district that would be served by the charter school would have an opportunity to provide input on the application. A charter school authorizer shall make a copy of a charter school application available upon request prior to the public hearing at which it will be discussed.

b. (1) The commissioner shall only approve a charter school application if the applicant demonstrates competence in each element of the commissioner's published approval criteria, and if the commissioner determines that the applicant is likely to open and operate a successful charter school.

(2) When evaluating a charter school application, the commissioner shall assess the demonstrated need of the charter school proposed by the applicant and community support for the proposed charter school, as demonstrated in the public hearings conducted pursuant to subsection a. of this section, and through letters of support for, or opposition to, the charter school application, and any petitions submitted to the commissioner.

(3) The commissioner shall consider a charter school applicant's potential to enroll a student population that is demographically similar to the proposed charter school's district of residence. If the proposed charter school would give enrollment preference to students who reside in a specific geographic area within the district of residence, then the commissioner shall consider the potential to enroll a student population that is demographically similar to that geographic area. When determining whether to provide an initial charter approval, the commissioner shall grant a preference to a charter school applicant that has developed a written plan in the application to enroll a student population that is demographically similar to the proposed charter school's district of residence or the student population in a specific geographic area within the district of residence to which the proposed charter school would give an enrollment preference.

(4) The commissioner may, when appropriate, establish reasonable conditions that an approved charter school applicant shall meet prior to the charter school executing a charter contract with the charter school authorizing board pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

The commissioner's decision shall be based on information collected during the application process.

c. No later than 30 days after providing the initial approval or rejection of a charter school application, the commissioner shall publish a report detailing the reasons for approving or rejecting the charter school application. Each report shall be posted on the Department of Education's website.

6. (New section) a. Within 60 days of the final granting of a charter, the charter school authorizing board and the applicant shall enter into a charter contract that details the performance framework by which the charter school's performance will be assessed. The charter contract shall also outline the administrative relationship between the charter school authorizing board and the charter school, including each party's rights and responsibilities. The performance framework included in the charter contract shall include, but need not be limited to, annual performance targets for the following:

(1) absolute measures of student academic proficiency;

(2) student academic growth over time;

(3) academic achievement gaps between student subgroups;

(4) student attendance rates;

(5) student attrition rates;

(6) in the case of a charter school that enrolls students in grades 9 through 12, measures of students' readiness for college and career;

(7) financial viability and sustainability;

(8) performance of the school's board of trustees, including compliance with applicable laws, rules, regulations, and provisions of the charter contract; and

(9) any additional indicators proposed by the charter school and approved by the charter school authorizing board to account for the charter school's specific mission. The charter school authorizing board shall only approve additional indicators that are rigorous and valid.

b. The charter contract shall require that any information included in the performance framework that relates to students be disaggregated by student subgroups, including racial and ethnic classifications, gender, income groups, students with disabilities, students who are English language learners, and students who are gifted and talented.

c. The annual performance targets included in the performance framework shall be agreed to by the charter school authorizing board and the charter school, and shall be designed to ensure that the charter school meets applicable federal and State expectations for student academic performance.

d. The charter contract shall be signed by the authorized representative of the charter school authorizing board and the president of the board of trustees of the charter school. Within 30 days of entering into a charter contract, each charter contract, including any attachments, shall be posted on the charter school authorizing board's website.

e. An approved charter school shall not begin operations prior to entering into a charter contract with the charter school authorizing board. Neither party may delegate or reassign any of the rights or responsibilities included in the charter contract.

f. Notwithstanding the provisions of subsection a. of this section to the contrary, the applicant may elect to use one year as a planning year prior to entering into a charter contract. The applicant shall be required to obtain the consent of the charter school authorizing board to use any additional years as planning years.

7. (New section) A charter school shall annually remit an administrative fee to the charter school authorizing board. The administrative fee shall equal 1.5% of the total revenue that a charter school receives pursuant to the provisions of section 12 of P.L.1995, c.426 (C.18A:36A-12). A charter school that has been granted a charter prior to the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) shall begin to remit the administrative fee to the charter school authorizing board in the first school year after its charter is renewed pursuant to section 17 of P.L.1995, c.426 (C.18A:36A-17). The charter school authorizing board shall not use any revenue received from a charter school pursuant to this section for any purpose other than monitoring charter schools.

8. (New section) In the event that a student withdraws from a charter school and enrolls in another public school located in the State, the new school shall accept all credits earned by the student and determine the student's grade level placement in a uniform and consistent manner, and using the same criteria applied to accept credits from other public schools.

9. (New section) a. Except as otherwise provided pursuant to section 14 of P.L.2007, c.137 (C.18A:7G-45), a charter school shall have the right of first refusal to purchase or lease any surplus real property, at or below market value, of a school district that is the charter school's district of residence. In the event that the school district is the district of residence for more than one charter school, then the order in which the charter schools shall be granted the right of first refusal shall be determined by a lottery. The right of first refusal shall not be negotiable. A charter school that is currently on probationary status pursuant to section 17 of P.L.1995, c.426 (C.18A:36A-17) shall not be granted the right of first refusal.

b. Each school district that is the district of residence of at least one charter school shall, no later than January 1 and July 1 of each school year, provide the department with a list of all surplus real property in the school district in a format determined by the commissioner. The list of surplus real property shall include the name and address of the property, whether the property will be available for sale, lease, or co-location, the sale price, if the district plans to sell the surplus property, and any other information that the commissioner may require. The department shall publish the list of surplus real property on its website no later than February 1 and August 1 of each school year.

c. The commissioner shall notify a charter school if it has been granted the right of first refusal for any property included on the list of surplus real property.

(1) If a charter school that has been granted the right of first refusal elects to purchase a property that is being sold by a school district, then the charter school shall send a letter of intent to the commissioner and the board of education of the school district.

(2) If a charter school that has been granted the right of first refusal elects to lease a property that is being leased by a school district, then the charter school shall send a letter of intent to the commissioner and the board of education of the school district. The school district shall lease the property to the charter school at or below market value, with the term of the lease not exceeding the lesser of 10 years or the number of years remaining on the charter school's charter at the time the parties enter into the lease agreement. The charter school shall be responsible for expenses relating to the daily operation of the property including, but not limited to, maintenance, utilities, repairs, and alterations. The school district shall be responsible for principal and interest payments and payment of any outstanding liens.

A lease agreement entered into by a charter school and board of education shall automatically be renewed upon the renewal of the school's charter, unless there has been a material breach of the lease agreement or if the board of education requires the facility to accommodate an increase in the district's enrollment. A board of education shall notify a charter school that a lease agreement will not be renewed no less than six months prior to the expiration of the current lease agreement.

(3) If a charter school that has been granted the right of first refusal elects to co-locate at a property of the school district, then the charter school shall send a letter of intent to the commissioner and the board of education of the school district. The school district shall lease the available space to the charter school at or below market value, with the term of the lease being no less than one year and not exceeding the lesser of three years or the number of years remaining on the charter school's charter at the time the parties enter into the lease agreement.

d. As used in this section, "surplus real property" means any school building, previously used for instructional purposes, that has not been used for instructional purposes for at least three consecutive school years, any facility that has been unoccupied for at least three consecutive school years, any school building in which the instructional areas are used at a rate no greater than 50% of its capacity for at least three consecutive school years, or any real property that a school district elects to lease or sell pursuant to the provisions of N.J.S.18A:20-2.

10. (New section) Each member of a charter school board of trustees shall complete a training program regarding the skills and knowledge necessary to serve as a member of a charter school board of trustees. A member may satisfy this requirement by completing the training program offered by the New Jersey School Boards Association or an alternative program approved by the Commissioner of Education.

11. (New section) Notwithstanding the provisions of the "Public School Contracts Law," N.J.S.18A:18A-1 et seq., or any other law or regulation to the contrary, a charter school shall not be subject to public bidding for goods and services, and any contracts entered into by a charter school shall not be deemed public contracts or public works; except that any contract entered into by a charter school shall be deemed a public work for the purposes of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), and subject to the applicable provisions of that act.

12. (New section) a. There is established in the Department of Education a non-lapsing revolving fund to be known as the "Charter School Facility Loan Fund." The fund shall be credited, consistent with federal law, with any federal funds provided to the State for the purpose of constructing charter school facilities, any appropriations made to the fund, any interest earned on the monies deposited in the fund, and any principal and interest payments made by a charter school that received a loan under the "Charter School Facility Loan Program" established pursuant to subsection b. of this section.

b. The State Board of Education shall establish the "Charter School Facility Loan Program." Under the program, the State board shall use monies on deposit in the Charter School Facility Loan Fund to provide loans to charter schools for the construction, purchase, or renovation of a charter school facility. A charter school may have more than one outstanding loan under the program. The State board shall determine:

1) the interest rate to be applied to each loan, not to exceed an annual rate of 1%;

2) the maximum amount of any individual loan that will be awarded to any charter school; and

3) the maximum outstanding principal that may be allowed for any charter school that has received more than one loan under the program.

c. The State board shall establish a procedure for receiving and evaluating loan applications under the program. Upon reviewing an application, the State board shall consider, at a minimum, the following factors when determining if a loan should be made to a charter school:

(1) the charter school's financial viability, including the charter school's ability to provide instructional and student support services while making timely payments on the loan;

(2) alternative funding sources that may be available to the charter school to construct, purchase, or renovate a facility;

(3) the geographic distribution of loans made under the program;

(4) the effect that the loan may have on the charter school's ability to obtain other public and private financing;

(5) any plan to leverage the funds through a loan guarantee or similar program; and

(6) the charter school's financial needs.

13. (New section) A charter school shall be considered a local education agency for the purpose of applying for federal entitlement and discretionary funds.

14. (New section) Notwithstanding the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.) to the contrary, the development authority may undertake, and the financing authority may finance, a school facilities project of a charter school located in an SDA district. The State share of such a school facilities project shall equal 100% of the final eligible costs. The State share of such a school facilities project shall be financed from the aggregate principal amounts of the bonds, notes, and other obligations authorized for school facilities projects in SDA districts pursuant to section 14 of P.L.2000, c.72 (C.18A:7G-14).

15. (New section) a. A student enrolled in a charter school shall be eligible to participate in any extracurricular activity at another public school if the extracurricular activity is not offered at the charter school. The student enrolled in the charter school may participate in the extracurricular activity at the school of the student's district of residence that operates the grade level in which the student is enrolled and serves the attendance area in which the student resides, or the school from which the student withdrew in order to attend the charter school.

b. In the event that a student enrolled in a charter school wishes to participate in an extracurricular activity at another public school pursuant to subsection a. of this section, the school may apply only those eligibility requirements that are applicable to a student who is enrolled in that school. If participation in an extracurricular activity is determined on a competitive basis, then a student who is enrolled in a charter school and is eligible to participate pursuant to subsection a. of this section shall be allowed to compete on the same basis as a student who is enrolled in the school.

c. In the event that a student enrolled in a charter school participates in an extracurricular activity at another public school pursuant to subsection a. of this section, the school may assess any fee that the school charges a student who is enrolled in the school, and shall waive any fee for a student enrolled in a charter school on the same basis as a student who is enrolled in that school.

d. A charter school shall reimburse a school district for each student who is enrolled in that charter school and participates in an extracurricular activity in a public school of that district. The amount to be reimbursed shall not exceed the actual cost per pupil, exclusive of any capital expenditures, less any fee collected from the student pursuant to subsection c. of this section.

e. A student enrolled in a public school that is not a charter school shall be eligible to participate in any extracurricular activity at a charter school located in the student's district of residence if the extracurricular activity is not offered at the school in which the student is enrolled. The student enrolled in the public school that is not a charter school may participate in the extracurricular activity at a charter school that operates the grade level in which the student is enrolled.

f. In the event that a student enrolled in a public school that is not a charter school wishes to participate in an extracurricular activity at a charter school pursuant to subsection e. of this section, the charter school may apply only those eligibility requirements that are applicable to a student who is enrolled in that charter school. If participation in an extracurricular activity is determined on a competitive basis, then a student who is enrolled in a public school that is not a charter school and is eligible to participate pursuant to subsection e. of this section shall be allowed to compete on the same basis as a student who is enrolled in the charter school.

g. In the event that a student enrolled in a public school that is not a charter school participates in an extracurricular activity at a charter school pursuant to subsection e. of this section, the charter school may assess any fee that the school charges a student who is enrolled in the charter school, and shall waive any fee for a student enrolled in a public school that is not a charter school on the same basis as a student who is enrolled in that charter school.

h. A school district shall reimburse a charter school for each student who is enrolled in that school district and participates in an extracurricular activity in a charter school. The amount to be reimbursed shall not exceed the actual cost per pupil, exclusive of any capital expenditures, less any fee collected from the student pursuant to subsection g. of this section.

16. (New section) The charter school authorizing board shall submit an annual report documenting its operations to the commissioner no later than October 31 each school year. The commissioner shall forward a copy of the annual report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than November 30 of each school year. The charter school authorizing board's annual report shall include, but need not be limited to, the following:

a. the performance of each charter school, as measured by the performance framework developed by the charter school authorizing board;

b. a listing of charter schools that:

(1) have been approved by the commissioner, but have not yet opened;

(2) are currently operating under an initial charter;

(3) are currently operating under a renewed charter;

(4) did not have its charter renewed;

(5) had its charter revoked; and

(6) voluntarily relinquished its charter; and

c. a summary of the expenses incurred by the charter school authorizing board in performing its responsibilities.

17. (New section) a. The executive county superintendent of schools of a county in which at least one charter school is located shall annually organize a conference, to be attended by representatives of public schools located in the county, to provide attendees the opportunity to exchange information regarding practices that have contributed to improving student outcomes.

b. Within 90 days of the conclusion of the conference, the executive county superintendent of schools shall submit a report to the Governor, the President of the Senate, and the Speaker of the General Assembly, detailing the conference's proceedings. Each report shall be made available on the Department of Education's website.

18. Section 13 of P.L.2007, c.260 (C.18A:7F-55) is amended to read as follows:

13. a. Special education categorical aid for each school district and county vocational school district shall be calculated as follows:

SE = (RE x SEACR x AEC x 1/3) x GCA

where

RE is the resident enrollment of the school district or county vocational school district;

SEACR is the State average classification rate for general special education services pupils;

AEC is the excess cost for general special education services pupils; and

GCA is the geographic cost adjustment as developed by the commissioner.

For the 2008-2009 school year the excess cost shall be $10,898 for general special education services pupils. The excess cost amount shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the excess cost amount shall be established in the Educational Adequacy Report, with the amount adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.

b. Extraordinary special education aid for an individual classified pupil shall be available when the student is educated in a general education classroom, special education program, including but not limited to a resource program or special class program, or any combination of general education and special education programs and services, subject to the requirements and thresholds set forth in this section.

(1) In those instances in which a pupil is educated in an in-district public school program with non-disabled peers, whether run by a public school or by a private school for the disabled, and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 90% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.

(2) In those instances in which a pupil is educated in a separate public school program for students with disabilities and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.

(3) In those instances in which a pupil is educated in a separate private school for students with disabilities and the tuition for an individual classified pupil exceeds $55,000, for tuition costs in excess of $55,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.

(4) Extraordinary special education State aid for an individual classified pupil shall be calculated as follows:

EA = ((ADC-$40,000) x .90) + (((AIC - $40,000) + (ASC - $55,000)) x .75)

where

ADC equals the district's actual cost for the direct instructional and support services in an in-district public school program as set forth in paragraph (1) of this subsection;

AIC equals the district's actual cost for direct instructional and support services in a separate public school program as set forth in paragraph (2) of this subsection; and

ASC equals the district's actual cost for tuition paid to a separate private school as set forth in paragraph (3) of this subsection.

(5) The receipt of extraordinary special education State aid for an individual classified pupil shall be conditioned upon a demonstration by the district or charter school that the pupil's Individualized Education Plan requires the provision of intensive services, pursuant to factors determined by the commissioner.

c. In order to receive funding pursuant to this section, a district or charter school shall file an application with the department that details the expenses incurred on behalf of the particular classified pupil for which the district or charter school is seeking reimbursement. Additional State aid awarded for extraordinary special education costs shall be recorded by the district or charter school as revenue in the current school year and paid to the district in the subsequent school year.

d. A school district or charter school may apply to the commissioner to receive emergency special education aid for any classified pupil who enrolls in the district prior to March of the budget year and who is in a placement with a cost in excess of $40,000 or $55,000, as applicable. The commissioner may debit from the student's former district of residence any special education aid which was paid to that district on behalf of the student.

e. The department shall review expenditures of federal and State special education aid by a district or charter school in every instance in which special education monitoring identifies a failure on the part of the district to provide services consistent with a pupil's Individualized Education Plan.

f. The commissioner shall commission an independent study of the special education census funding methodology to determine if adjustments in the special education funding formulas are needed in future years to address the variations in incidence of students with severe disabilities requiring high cost programs and to make recommendations for any such adjustments. The study and recommendations shall be completed by June 30, 2010.

g. A school district may apply to the commissioner to receive additional special education categorical aid if the district has an unusually high rate of low-incidence disabilities, such as autism, deaf/blindness, severe cognitive impairment, and medically fragile. In applying for the aid the district shall: demonstrate the impact of the unusually high rate of low-incidence disabilities on the school district budget and the extent to which the costs to the district are not sufficiently addressed through special education aid and extraordinary special education aid; and provide details of all special education expenditures, including details on the use of
federal funds to support those expenditures.

(cf: P.L.207, c.260, s.13)

19. N.J.S.18A:23-1 is amended to read as follow:

18A:23-1. The board of education of every school district and the board of trustees of every charter school shall cause an annual audit of the district's or charter school's accounts and financial transactions to be made by a public school accountant employed by it, which audit shall be completed not later than 5 months after the end of the school fiscal year.

(cf: P.L.2010, c.49, s.1)

20. Section 2 of P.L.1995, c.426 (C.18A:36A-2) is amended to read as follows:

2. The Legislature finds and declares that the establishment of charter schools as part of this State's program of public education can assist in promoting comprehensive educational reform by providing a mechanism for the implementation of a variety of educational approaches which may not be available in the traditional public school classroom. Charter schools serve a distinct purpose in supporting innovations and best practices that can be adopted by other public schools to strengthen the performance of all students. Specifically, charter schools offer the potential to improve pupil learning; increase for students and parents the educational choices available when selecting the learning environment which they feel may be the most appropriate; encourage the use of different and innovative learning methods; establish a new form of accountability for schools; require the measurement of learning outcomes; make the school the unit for educational improvement; and establish new professional opportunities for teachers.

The Legislature further finds that the establishment of a charter school program is in the best interests of the students of this State and it is therefore the public policy of the State to encourage and facilitate the development of charter schools.

(cf: P.L.1995, c.426, s.2)

21. Section 3 of P.L.1995, c.426 (C.18A:36A-3) is amended to read as follows:

3. a. The Commissioner of Education shall establish a charter school program which shall provide for the approval and granting of charters to charter schools pursuant to the provisions of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.). A charter school shall be a public school operated under a charter granted by the commissioner, which is operated independently of a local board of education and is managed by a board of trustees. The board of trustees, upon receiving a charter from the commissioner and entering into a charter contract with the charter school authorizing board, shall be deemed to be public agents authorized by the State Board of Education to supervise and control the charter school.

b. The program shall authorize the establishment of not more than 135 charter schools during the 48 months following the effective date of this act. A minimum of three charter schools shall be allocated to each county. The commissioner shall actively encourage the establishment of charter schools in urban school districts with the participation of institutions of higher education.

(cf: P.L.1995, c.426, s.3)

22. Section 4 of P.L.1995, c.426 (C.18A:36A-4) is amended to read as follows:

4. a. A charter school may be established by :

(1) teaching staff members, parents with children attending the schools of the district, or a combination of teaching staff members and parents [. A charter school may also be established by] ;

(2) an institution of higher education or a private entity located within the State in conjunction with teaching staff members and parents of children attending the schools of the district ;

(3) a teachers' union;

(4) a parent-teacher organization;

(5) a nonprofit community-based organization;

(6) a nonprofit business or corporate entity;

(7) a nonprofit charter school operator;

(8) a nonprofit educational management organization;

(9) a nonprofit educational collaborative;

(10) a consortia of entities listed in paragraphs (1) through (9) of this subsection; and

(11) any other nonprofit entity authorized by the commissioner. If the charter school is established by a private entity, representatives of the private entity shall not constitute a majority of the trustees of the school, and the charter shall specify the extent to which the private entity shall be involved in the operation of the school. The [name of the charter school shall not include the name or identification of the private entity, and the] private entity shall not realize a net profit from its operation of a charter school.

b. A currently existing public school is eligible to become a charter school if the following criteria are met:

(1) At least 51% of the teaching staff in the school shall have signed a petition in support of the school becoming a charter school; and

(2) At least 51% of the parents or guardians of pupils attending that public school shall have signed a petition in support of the school becoming a charter school.

c. An application to establish a charter school shall be submitted to the commissioner , the charter school authorizing board, and the local board of education or State district superintendent, in the case of a school district under full State intervention, no later than January 1 in the [school] year preceding the school year in which the charter school will be established. Notice of the filing of the application shall be sent immediately by the commissioner to the members of the State Legislature, school superintendents, and mayors and governing bodies of all legislative districts, school districts, or municipalities in which there are students who will be eligible for enrollment in the charter school. The charter school authorizing board and board of education or State district superintendent shall review the application and forward a recommendation to the commissioner within 60 days of receipt of the application. The commissioner shall have final authority to grant or reject a charter application. The commissioner shall notify a charter school applicant of the initial approval or rejection of the charter school application no later than September 1 after the submission of the charter school application. The commissioner shall provide for the final granting of a charter, no later than February 1, after:

(1) receiving and approving documentation, as required by the commissioner, that is not available at the time of the application's submission;

(2) assessing the student composition of the charter school and the potential effects that the loss of the students may have on the school district in which the potential charter school students reside; and

(3) conducting a preparedness visit to the prospective charter school.

d. The local board of education or a charter school applicant may appeal the decision of the commissioner to the Appellate Division of the Superior Court.

e. A charter school established during the 48 months following the effective date of this act, other than a currently existing public school which becomes a charter school pursuant to the provisions of subsection b. of section 4 of this act, shall not have an enrollment in excess of 500 students or greater than 25% of the student body of the school district in which the charter school is established, whichever is less.

Any two charter schools within the same public school district [that are not operating the same grade levels] may petition the [commissioner] charter school authorizing board to amend their charters and consolidate into one school. The [commissioner] charter school authorizing board may approve an amendment to consolidate, provided that the basis for consolidation is to accommodate the transfer of students who would otherwise be subject to the [random selection process] lottery pursuant to section 8 of P.L.1995, c.426 (C.18A:36A-8).

(cf: P.L.2011, c.140, s.2)

23. Section 5 of P.L.1995, c.426 (C.18A:36A-5) is amended to read as follows:

5. The application for a charter school shall include the following information:

a. The identification of the charter applicant;

b. The name of the proposed charter school;

c. The proposed governance structure of the charter school including a list of the proposed members of the board of trustees of the charter school, including background information, or a description of the qualifications and method for the appointment or election of members of the board of trustees;

d. The educational goals of the charter school, the curriculum to be offered, and the methods of assessing whether students are meeting educational goals. Charter school students shall be required to meet the same testing and academic performance standards as established by law and regulation for public school students. Charter school students shall also meet any additional assessment indicators which are included within the charter approved by the commissioner;

e. The admission policy and criteria for evaluating the admission of students which shall comply with the requirements of section 8 of [this act] P.L.1995, c.426 (C.18A:36A-8), including a detailed plan and timeline for student recruitment and the procedure for conducting a public lottery if the number of students seeking admission exceeds the capacity;

f. The age or grade range of students to be enrolled;

g. The [school] school's proposed calendar and [school day] a sample daily schedule;

h. A description of the charter school staff responsibilities and the proposed qualifications of teaching staff;

i. A description of the [procedures to be implemented to ensure] opportunities for and expectations of significant parental involvement in the operation of the school;

j. A description of, and address for, the physical facility in which the charter school will be located, and plan for identifying an alternative facility if the need arises;

k. Information on the manner in which community groups will be involved in the charter school planning process;

l. The financial plan for the charter school and the provisions which will be made for auditing the school pursuant to the provisions of N.J.S.18A:23-1;

m. A description of and justification for any waivers of regulations which the charter school will request; [and]

n. The mission and vision of the proposed charter school, including any specific student population that the charter school would serve;

o. For each grade level and for each year for the term of the charter, the projected student enrollment, the minimum number of students that the charter school may serve while remaining financially viable, and the maximum number of students that the charter school could feasibly serve;

p. An explanation of how the proposed charter school's academic programs will align with standards adopted by the State Board of Education;

q. A description of the proposed charter school's instructional design, including information on the type of learning environment that would be used, class size and structure, and teaching methods that will be employed;

r. The proposed charter school's plan for using assessments to measure and report student progress on the performance framework developed by the charter school authorizing board pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill);

s. The proposed charter school's plan for identifying and successfully serving students with disabilities, English language learners, students who are currently not performing on grade level in one or more academic areas, and students who are gifted and talented;

t. A description of extracurricular and co-curricular activities that will be offered at the school, including the method by which the costs of such programs will be supported;

u. The proposed charter school's policy on student discipline;

v. An organization chart that clearly presents the proposed charter school's organizational structure, including lines of authority among the board of trustees, staff, and any other related entities;

w. A clear description of the roles and responsibilities of the board of trustees, the school's leadership and management team, and any other entities included in the organization chart;

x. A detailed plan for recruiting and developing the proposed charter school's leadership and management team and staff;

y. The school's proposed employment policy, including the plan for conducting performance evaluations, provided, however, that the proposed employment policy shall not conflict with any existing collective bargaining agreement;

z. The board of trustee's proposed bylaws;

aa. A description or explanation of any partnerships or contractual arrangements that will be a significant component of the school's operations or mission;

bb. The plan for providing food services and other operational services;

cc. A detailed start-up plan that includes tasks to be completed, a timeline during which the identified tasks will be completed, and a list of individuals who will be responsible for completing the tasks;

dd. A description of the insurance coverage the school will obtain;

ee. Projected budgets for any start-up period and the first five years of the school's operations, including a description of relevant assumptions used in developing the budget;

ff. A cash flow analysis for any start-up period and the first year of the school's operation, including a description of relevant assumptions used in developing the cash flow analysis;

gg. An explanation of any anticipated revenues from fundraising that are included in the projected budgets;

hh. If applicable, the geographic area within the proposed charter school's district of residence from which applicants to the charter school would be granted enrollment preference; and

ii. Such other information as the commissioner may require.

(cf: P.L.1995, c.426, s.5)

24. Section 6 of P.L.1995, c.426 (C.18A:36A-6) is amended to read as follows:

6. A charter school established pursuant to the provisions of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.) shall be a body corporate and politic with all powers necessary or desirable for carrying out its charter program, including, but not limited to, the power to:

a. Adopt a name and corporate seal; however, any name selected shall include the words "charter school;"

b. Sue and be sued, but only to the same extent and upon the same conditions that a public entity can be sued;

c. Acquire real property from public or private sources, by purchase, lease, lease with an option to purchase, or by gift, for use as a school facility;

d. Receive and disburse funds for school purposes;

e. Make contracts and leases for the procurement of services, equipment and supplies;

f. Incur temporary debts in anticipation of the receipt of funds;

g. Solicit and accept any gifts or grants for school purposes; [and]

h. Purchase appropriate insurance;

i. Pledge, assign, or encumber its assets to be used as collateral for the purpose of securing a loan or an extension of credit; and

j. Have such other powers as are necessary to fulfill its charter contract and which are not inconsistent with [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.), or the requirements of the [commissioner] charter school authorizing board .

The board of trustees of a charter school shall comply with the provisions of the "Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.).

(cf: P.L.1995, c.426, s.6)

25. Section 8 of P.L.1995, c.426 (C.18A:36A-8) is amended to read as follows:

8. a. Preference for enrollment in a charter school shall be given to students who reside in the [school] charter school's district [in which the charter school is located] of residence. A charter school may give enrollment preference to students who reside in the geographic area within the charter school's district of residence as specified in the approved charter school application pursuant to subsection hh. of section 5 of P.L.1995, c.426 (C.18A:36A-5) . If there are more applications to enroll in the charter school than there are spaces available, the charter school shall select students to attend using a [random selection process] lottery.

(1) In the event that the demographics of the charter school applicants are not similar to those of the students enrolled in the district of residence, or to those of the students who reside in the geographic area within the charter school's district of residence as specified in the approved charter school application pursuant to subsection hh. of section 5 of P.L.1995, c.426 (C.18A:36A-5), the charter school shall modify the lottery such that the probability of selection of each student is consistent with the demographics of the students enrolled in the district of residence or the geographic area within the charter school's district of residence as specified in the approved charter school application pursuant to subsection hh. of section 5 of P.L.1995, c.426 (C.18A:36A-5).

(2) At least 30 days prior to conducting a lottery, a charter school shall provide public notice of the date, time, and location of the lottery, and note that the lottery is open to the public. The Department of Education shall post a schedule of each charter school lottery on its website, and each executive county superintendent of schools shall post a schedule of each charter school lottery occurring in the county on the website of the county office.

(3) A charter school shall conduct the lottery in a place that is open and accessible to the public, and is capable of accommodating the expected number of attendees. To ensure that the space can accommodate the expected number of attendees, a charter school may conduct separate lotteries for each grade level, or for groups of grade levels. Each such lottery shall be subject to the public notice provisions of paragraph (2) of this subsection. Nothing in this paragraph shall be construed to require that a parent or student attend the lottery as a prerequisite to being admitted to the charter school.

(4) An individual conducting a lottery or serving as an independent observer shall not be an employee or member of the board of trustees of the charter school, or a relative of an applicant included in the lottery.

(5) A representative from the charter school authorizing board shall be present to observe charter school lottery proceedings, and shall determine if the lottery was conducted in a fair and transparent manner consistent with the provisions of the charter contract.

(6) A charter school shall maintain records of any lottery that it conducts, and shall provide the records to its charter school authorizing board upon request. The records shall be sufficient to allow the charter school authorizing board to determine the process used to select students, compare the process that was used to the procedures outlined in the school's charter contract, and determine if the procedures were consistent with the provisions of the school's charter contract.

A charter school shall not charge tuition [to students who reside in the district] , and may only charge fees that may also be charged by other public schools in the State.

b. A charter school shall allow any student who was enrolled in the school in the immediately preceding school year to enroll in the charter school in the appropriate grade unless the appropriate grade is not offered at the charter school.

c. A charter school may give enrollment priority to a sibling of a student enrolled in the charter school.

d. If available space permits, a charter school may enroll non-resident students. The terms and condition of the enrollment shall be outlined in the school's charter contract and approved by the [commissioner] charter school authorizing board .

e. The admission policy of the charter school shall, to the maximum extent practicable, seek the enrollment of a cross section of the community's school age population including racial and academic factors.

(cf: P.L.1995, c.426, s.8)

26. Section 9 of P.L.1995, c.426 (C.18A:36A-9) is amended to read as follows:

9. A student may withdraw from a charter school at any time. A student may be expelled from a charter school based on criteria determined by the board of trustees, which are consistent with the provisions of N.J.S.18A:37-2, and approved by the [commissioner] charter school authorizing board as part of the school's charter contract. Any expulsion shall be made upon the recommendation of the charter school principal, in consultation with the student's teachers.

(cf: P.L.1995, c.426, s.9)

27. Section 10 of P.L.1995, c.426 (C.18A:36A-10) is amended to read as follows:

10. A charter school may be located in part of an existing public school building, in space provided on a public work site, in a public building, or any other suitable location. In the case of a nonpublic school that converts to a charter school pursuant to the provisions of section 1 of P.L.2011, c.140 (C.18A:36A-4.1), the charter school may be located in the same school building in which the nonpublic school was located. The facility shall be exempt from public school facility regulations except those pertaining to the health or safety of the pupils. [A charter school shall not construct a facility with public funds other than federal funds.]

(cf: P.L.2011, c.140, s.3)

28. Section 11 of P.L.1995, c.426 (C.18A:36A-11) is amended to read as follows:

11. a. A charter school shall operate in accordance with its charter contract and the provisions of law and regulation which govern other public schools; except that, upon the request of the board of trustees of a charter school, the commissioner may exempt the school from State regulations concerning public schools, except those pertaining to assessment and accountability, teacher evaluation, testing, civil rights and student health and safety, if the board of trustees satisfactorily demonstrates to the commissioner that the exemption will advance the educational goals and objectives of the school.

b. A charter school shall comply with the provisions of chapter 46 of Title 18A of the New Jersey Statutes concerning the provision of services to handicapped students; except that the fiscal responsibility for any student currently enrolled in or determined to require a private day or residential school shall remain with the district of residence.

Within 15 days of the signing of the individualized education plan, a charter school shall provide notice to the resident district of any individualized education plan which results in a private day or residential placement. The resident district may challenge the placement within 30 days in accordance with the procedures established by law.

c. A charter school shall comply with applicable State and federal anti-discrimination statutes.

(cf: P.L.2007, c.260, s.57)

29. Section 12 of P.L.1995, c.426 (C.18A:36A-12) is amended to read as follows:

12. a. (Deleted by amendment, P.L.2007, c.260).

b. The school district of residence shall pay directly to the charter school for each student enrolled in the charter school who resides in the district an amount equal to 90% of the sum of the budget year equalization aid per pupil and the prebudget year general fund tax levy per pupil inflated by the CPI rate most recent to the calculation. In addition, the school district of residence shall pay directly to the charter school the security categorical aid attributable to the student and a percentage of the district's special education categorical aid equal to the percentage of the district's special education students enrolled in the charter school and, if applicable, 100% of preschool education aid. The district of residence shall also pay directly to the charter school any federal funds attributable to the student.

c. (Deleted by amendment, P.L.2007, c.260).

d. Notwithstanding the provisions of subsection b. of this section, in the case of a student who was not included in the district's projected resident enrollment for the school year, the State shall pay 100% of the amount required pursuant to subsection b. of this section for the first year of the student's enrollment in the charter school.

e. The State shall make payments required pursuant to subsection d. of this section directly to the charter school.

f. In the case of a school district that, in the prior school year, was required to make a payment to a charter school pursuant to subsection a. of this section, no later than September 30 of each school year, the school district shall submit a notice to the charter school authorizing board certifying that all payments required pursuant to subsection a. of this section have been made to the charter school in the prior school year.

(cf: P.L. 2007, c.260, s.58)

30. Section 14 of P.L.1995, c.426 (C.18A:36A-14) is amended to read as follows:

14. a. The board of trustees of a charter school shall have the authority to decide matters related to the operations of the school including budgeting, curriculum, and operating procedures, subject to the school's charter. The board shall provide for appropriate insurance against any loss or damage to its property or any liability resulting from the use of its property or from the acts or omissions of its officers and employees.

b. In the case of a currently existing public school which becomes a charter school pursuant to the provisions of subsection b. of section 4 of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.), all school employees of the charter school shall be deemed to be members of the bargaining unit defined in the applicable agreement and shall be represented by the same majority representative organization as the employees covered by that agreement. In the case of other charter schools, the board of trustees of a charter school shall have the authority to employ, discharge and contract with necessary teachers and nonlicensed employees subject to the school's charter. The board of trustees may choose whether or not to offer the terms of any collective bargaining agreement already established by the school district for its employees, but the board shall adopt any health and safety provisions of the agreement. The charter school and its employees shall be subject to the provisions of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.). A charter school shall not set a teacher salary lower than the minimum teacher salary specified pursuant to section 7 of P.L.1985, c.321 (C.18A:29-5.6) nor higher than the highest step in the salary guide in the collective bargaining agreement which is in effect in the district in which the charter school is located.

c. [All] (1) Except as provided pursuant to paragraph (2) of this subsection, all classroom teachers and professional support staff shall hold appropriate New Jersey certification. The commissioner shall make appropriate adjustments in the alternate route program in order to expedite the certification of persons who are qualified by education and experience.

(2) In lieu of holding the appropriate New Jersey certification, an individual may be employed by a charter school as a school business administrator if the individual is a licensed certified public accountant or holds a Master of Business Administration from a regionally-accredited institution of higher education. Such an individual shall be required to annually complete a minimum of 10 hours of training and professional development offered by the New Jersey Association of School Business Officials.

d. A public school employee, tenured or non-tenured, may request a leave of absence of up to three years from the local board of education or State district superintendent in order to work in a charter school. Approval for a leave of absence shall not be unreasonably withheld. Employees on a leave of absence as provided herein shall remain in, and continue to make contributions to, their retirement plan during the time of the leave and shall be enrolled in the health benefits plan of the district in which the charter school is located. The charter school shall make any required employer's contribution to the district's health benefits plan.

e. Public school employees on a leave shall not accrue tenure in the public school system but shall retain tenure, if so applicable, and shall continue to accrue seniority, if so applicable, in the public school system if they return to their non-charter school when the leave ends. An employee of a charter school shall not accrue tenure pursuant to N.J.S.18A:17-2, N.J.S.18A:17-3, or N.J.S.18A:28-5, but shall acquire streamline tenure pursuant to guidelines promulgated by the commissioner, and the charter shall specify the security and protection to be afforded to the employee in accordance with the guidelines.

f. Any public school employee who leaves or is dismissed from employment at a charter school within three years shall have the right to return to the employee's former position in the public school district which granted the leave of absence, provided the employee is otherwise eligible for employment in the public school.

(cf: P.L.1995, c.426, s.14)

31. Section 15 of P.L.1995, c.426 (C.18A:36A-15) is amended to read as follows:

15. Any individual or group may bring a complaint to the board of trustees of a charter school alleging a violation of the provisions of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.). If, after presenting the complaint to the board of trustees, the individual or group determines that the board of trustees has not adequately addressed the complaint, they may present that complaint to the commissioner who shall investigate and respond to the complaint. The board shall establish an advisory grievance committee consisting of both parents and teachers who are selected by the parents and teachers of the school to make nonbinding recommendations to the board concerning the disposition of a complaint.

(cf: P.L.1995, c.426, s.15)

32. Section 16 of P.L.1995, c.426 (C.18A:36A-16) is amended to read as follows:

16. a. The charter school authorizing board shall continually monitor the performance and legal compliance of each charter school. The charter school authorizing board shall have the authority to conduct any reasonable oversight activities necessary to fulfill its responsibilities that are consistent with the provisions of P.L.1995, c.426 (C.18A:36A-1 et seq.) and do not diminish the autonomy provided to the charter school. In the event that the charter school authorizing board determines that a charter school's performance is unsatisfactory or that the charter school is not in compliance with a legal requirement, the charter school authorizing board shall promptly notify the charter school of the deficiency and shall provide a reasonable opportunity for the charter school to address the deficiency. The charter school authorizing board may require that the charter school develop and implement a corrective action plan to address any deficiency.

The [commissioner] charter school authorizing board shall annually assess whether each charter school is meeting the goals of its charter contract, and shall conduct a comprehensive review prior to granting a renewal of the charter. The [county superintendent of schools of the county in which the charter school is located] charter school authorizing board shall have on-going access to the records and facilities of the charter school to ensure that the charter school is in compliance with its charter contract and that State board regulations concerning assessment and accountability, teacher evaluation, testing, civil rights, and student health and safety are being met.

b. In order to facilitate the [commissioner's] charter school authorizing board's review, each charter school shall submit an annual report to the [local board of education, the county superintendent of schools, and the commissioner in the form prescribed by the commissioner. The report shall be received annually by the local board, the county superintendent, and the commissioner] charter school authorizing board no later than August 1. The report shall include a detailed discussion of efforts taken by the charter school to ensure that the student population enrolled in the charter school is demographically similar to the student population of the charter school's district of residence or the student population in a specific geographic area within the district of residence to which the charter school gives an enrollment preference.

The report shall also be made available to the [parent or guardian of a student enrolled in the charter school] public .

c. By April 1, 2001, the commissioner shall hold public hearings in the north, central, and southern regions of the State to receive input from members of the educational community and the public on the charter school program.

d. The commissioner shall commission an independent study of the charter school program. The study shall be conducted by an individual or entity identified with expertise in the field of education and the selection shall be approved by the Joint Committee on the Public Schools. The individual or entity shall design a comprehensive study of the charter school program.

e. The commissioner shall submit to the Governor, the Legislature, and the State Board of Education by October 1, 2001 an evaluation of the charter school program based upon the public input required pursuant to subsection c. of this section and the independent study required pursuant to subsection d. of this section. The evaluation shall include, but not be limited to, consideration of the following elements:

(1) the impact of the charter school program on resident districts' students, staff, parents, educational programs, and finances;

(2) the impact of the charter school program and the increased number of schools on the economics of educational services on a Statewide basis;

(3) the fairness and the impact of the reduction of available resources on the ability of resident districts to promote competitive educational offerings;

(4) the impact of the shift of pupils from nonpublic schools to charter schools;

(5) the comparative demographics of student enrollments in school districts of residence and the charter schools located within those districts. The comparison shall include, but not be limited to, race, gender, socioeconomic status, enrollment of special education students, enrollment of students of limited English proficiency, and student progress toward meeting the core curriculum content standards as measured by student results on Statewide assessment tests;

(6) the degree of involvement of private entities in the operation and financial support of charter schools, and their participation as members of charter school boards of trustees;

(7) verification of the compliance of charter schools with applicable laws and regulations;

(8) student progress toward meeting the goals of the charter schools;

(9) parent, community and student satisfaction with charter schools;

(10) the extent to which waiting lists exist for admission to charter schools and the length of those lists;

(11) the extent of any attrition among student and faculty members in charter schools; and

(12) the results of the independent study required pursuant to subsection d. of this section.

The evaluation shall include a recommendation on the advisability of the continuation, modification, expansion, or termination of the program. If the evaluation does not recommend termination, then it shall include recommendations for changes in the structure of the program which the commissioner deems advisable. The commissioner may not implement any recommended expansion, modification, or termination of the program until the Legislature acts on that recommendation.

(cf: P.L.2000, c.142, s.3)

33. Section 17 of P.L.1995, c.426 (C.18A:36A-17) is amended to read as follows:

17. A charter granted by the commissioner pursuant to the provisions of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.) shall be granted for a [four-year] five-year period and may be renewed for up to a [five-year] ten-year period , as determined by the charter school authorizing board. The [commissioner] charter school authorizing board may revoke a school's charter if the school has not fulfilled [any condition imposed by the commissioner in connection with the granting of the charter or if the school has violated] any provision of its charter contract. The [commissioner] charter school authorizing board may place the charter school on probationary status to allow the implementation of a remedial plan after which, if the plan is unsuccessful, the charter may be summarily revoked. The [commissioner] charter school authorizing board shall develop procedures and guidelines, consistent with the provisions of this section, for the revocation and renewal of a school's charter.

a. No later than September 1 of each school year, the charter school authorizing board shall provide a charter renewal application and guidance to each charter school whose charter will expire at the end of that school year. The guidance shall include the criteria that the charter school authorizing board will use in determining whether to renew a charter, which shall be based on the charter contract entered into between the charter school authorizing board and the charter school.

b. In order to determine whether a charter should be renewed, no later than September 1 of each school year, the charter school authorizing board shall issue a charter school performance report for each charter school whose charter will expire at the end of the current school year. The charter school performance report shall provide a summary of the charter school's performance record, based on data required in the charter contract, and shall identify any matters that the charter school authorizing board believes may jeopardize the renewal of the charter. The charter school shall have 30 days to issue a response to the performance report. The response shall include, but need not be limited to:

(1) comments that relate to the annual reports that were issued by the charter school authorizing board;

(2) information not included in the performance report that may support the case for the charter's renewal;

(3) a description of improvements that are currently being undertaken or are planned to be implemented during the next term upon the charter's renewal; and

(4) if necessary, a discussion of any discrepancies that have been included in the performance report.

c. No later than October 15 of the school year in which its charter will expire, a charter school board of trustees shall submit a complete charter school renewal application to the charter school authorizing board. The charter school authorizing board shall not renew a charter if the renewal application is not received by this date.

d. No later than 90 days after the receipt of a complete charter school renewal application, the charter school authorizing board shall make a determination to renew or not to renew a charter. In making this determination, the charter school authorizing board shall ensure that the decision is based on evidence of the charter school's performance during the term of its charter in accordance with the charter contract, and that any data used in making the determination is available to the public.

e. No later than 30 days after a determination to renew or not to renew a charter, a charter school authorizing board shall publish a report detailing its reasons for the determination. Each report shall be posted on the charter school authorizing board's website.

f. The charter school authorizing board may, at any time, revoke a charter or place a charter school in probationary status if it determines that a charter school has:

(1) committed a material and substantial violation of any of the terms, conditions, or procedures required pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.) or included in the charter contract;

(2) failed to meet or make sufficient progress towards the performance expectations established in its charter contract;

(3) failed to meet generally accepted standards of fiscal management; or

(4) violated any material provision of a law, rule, or regulation from which a charter school is not exempt.

g. The charter school authorizing board shall develop a procedure for revoking a charter. At a minimum, the procedure shall include the following:

(1) the provision of timely notification to the charter school board of trustees, including the reasons why revocation is being considered;

(2) a reasonable amount of time for the charter school board of trustees to develop a response to the concerns raised by the charter school authorizing board; and

(3) an orderly proceeding, which may be recorded, at which the board of trustees may present information, through documents and testimony, challenging the stated rationale for the possible revocation of the charter. The board of trustees shall be allowed to have legal representation and call witnesses at the proceedings.

h. No later than 30 days after a determination to revoke or not to revoke a charter, the charter school authorizing board shall publish a report detailing the charter school authorizing board's reasons for the determination. Each report shall be posted on the charter school authorizing board's website.

(cf: P.L.1995, c.426, s.17)

34. Section 4 of P.L.2000, c.142 (C.18A:36A-17.1) is amended to read as follows:

4. a. If at any time [the commissioner] the charter school authorizing board determines that a board of trustees is in jeopardy of losing its charter , or the commissioner determines that an applicant is in jeopardy of not being granted a charter, the charter school authorizing board or the commissioner , as applicable, shall so notify the board of trustees or the applicant. The board of trustees or the applicant shall, within 48 hours of receipt of such notification, provide to the charter school authorizing board or commissioner, in writing, a complete list of the names and addresses of all students and staff currently enrolled and working in the school, or in the case of an applicant, a complete list of the names and addresses of all students and staff intending to enroll or work at the school, so the charter school authorizing board or commissioner may send the appropriate notice to the parents or guardians and staff.

b. In the event of the closing a charter school by the charter school authorizing board, either through non-renewal or revocation of the charter, the commissioner shall develop a protocol to ensure the orderly transition of students and their records to the new school of attendance, and the proper disposition of school funds, property, and assets. The protocol shall establish specific tasks to be performed, the timeframe in which the tasks shall be performed, and the individuals responsible for performing the tasks. In the event that a charter school closes for any reason, the commissioner shall manage the closure to ensure an orderly transition for students and parents.

(cf: P.L.2000, c.142, s.4)

35. There is appropriated from the General Fund to the Department of Education the sum of $250,000 for the purpose of supporting the operations of the charter school authorizing board.

36. This act shall take effect immediately, except that section 7 shall take effect one year following the date of enactment of this act.

STATEMENT

This bill makes various changes to the State's charter school program. First, the bill establishes the charter school authorizing board that will provide general oversight of all charter schools, including decisions regarding the renewal or revocation of a charter, as well as placing a charter school on probation. Additionally, the board would provide a recommendation to the Commissioner of Education with respect to a charter school application. The board would include nine members, including three members who will be appointed by the Governor, and six members, with two each being appointed by the President of the Senate and the Speaker of the General Assembly, and one each appointed by the Minority Leader of the Senate and the Minority Leader of the General Assembly. The first gubernatorial appointees will serve a term of four years, while subsequent gubernatorial appointees, and members appointed by the President of the Senate and the Speaker of the General Assembly will serve three-year terms. Members appointed by the Minority Leaders of the Senate and General Assembly will serve two-year terms. No member may serve on the board for more than seven consecutive years. A charter school would be required to pay the charter school authorizing board an administrative fee equal to 1.5 percent of the total funding that it receives under the charter school law; however, this provision does not become effective until one year after enactment. In the case of a charter school that was authorized prior to the bill's enactment, the school would not be required to pay the administrative fee until its charter is renewed. The bill appropriates $250,000 for the board's initial expenses.

Second, the bill modifies the process by which charter school applications are approved. The commissioner would annually issue a request for proposal that would detail, among other things, the school districts or communities in which a new charter school would be approved, the criteria that the commissioner will use when evaluating applications, and any preference the commissioner may have for an applicant that demonstrates the capacity to serve a specific disadvantaged population of students. The criteria will detail the factors to be included in the scoring rubric, and one factor, accounting for 30 percent of the overall score, will be whether the board of education, or State district superintendent, has recommended that the charter school application be approved.

Third, the bill requires that the charter school authorizing board and each charter school enter into a charter contract. The charter contract will specify the performance framework on which the authorizer will evaluate a charter school's performance.

Fourth, the bill revises current law to allow a charter school to use public funds to construct a facility, and provides multiple methods by which a charter school may acquire a facility. These methods include:

� establishing a charter school facility loan program to be administered by the State Board of Education;

� granting a charter school right of first refusal to purchase or lease any school facility that is to be sold or leased by a school district that is included in the charter school's district of residence; and

� allowing a charter school located in an SDA district (former Abbott district) to have a school facilities project financed and constructed in the same manner as a school facilities project in an SDA district.

The bill makes a number of other statutory changes, including:

� lengthening the term of an initial charter, from four years to five years, and a renewed charter from five years to, at the discretion of the charter school authorizer, up to 10 years;

� requiring that a charter school makes admission decisions through a public lottery if the number of students seeking admission exceeds the number of available spaces;

� stipulating that a charter school in which the applicants' demographics differ from those of the district of residence, must modify the public lottery such that the applicants' probability of selection is consistent with the demographics of students enrolled in the district of residence;

� requiring that when a student withdraws from a charter school and enrolls in another public school, the new school accepts any credits earned by the student when the student was enrolled in the charter school;

� exempting charter schools from the "Public School Contracts Law";

� authorizing an individual who, in lieu of holding the appropriate New Jersey certification, is a licensed certified public accountant or holds a Master of Business Administration from a regionally-accredited institution of higher education to be employed as a school business administrator in a charter school, provided that the individual annually completes a training and professional development requirement;

� allowing a member of a charter school board of trustees to complete the required training through the training offered by the New Jersey School Boards Association or one approved by the commissioner;

� allowing charter schools to apply directly to the Department of Education for extraordinary special education aid; and

� allowing a student enrolled in a charter school to participate in an extracurricular activity at another public school if that activity is not offered at the charter school, and allowing a student enrolled in a public school other than a charter school to participate in an extracurricular activity offered at a charter school.