S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1618
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2015
                                      ___________
       Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
         tee on Education
       AN ACT to amend the education law, in relation to charter schools
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Legislative  intent.  New  York's  charter school law was
    2  enacted 14 years ago in an effort to create new  learning  opportunities
    3  for all students, to encourage different and innovative teaching methods
    4  and  to  provide  parents  and  students with expanded choice within the
    5  public schools. Fourteen years provides the state with  enough  informa-
    6  tion  to  make  judgments  about  changes  that are needed in the law to
    7  ensure the public knows how their tax dollars are  being  spent  and  to
    8  ensure  public  schools  serving  the  majority  of  students  have  the
    9  resources needed to provide a quality education to  all  students.  This
   10  legislation  is  intended to clarify the transparency and accountability
   11  of charter schools and provide fiscal relief  to  the  school  districts
   12  where charter schools are located.
   13    S 2. Subdivision 1 of section 2851 of the education law, as amended by
   14  chapter 101 of the laws of 2010, is amended to read as follows:
   15    1.  An  application  to establish a charter school may be submitted by
   16  teachers, parents, school administrators,  community  residents  or  any
   17  combination  thereof.  Such application may be filed in conjunction with
   18  a college, university, museum, educational  institution,  not-for-profit
   19  corporation  exempt from taxation under paragraph 3 of subsection (c) of
   20  section 501 of the internal revenue  code  [or  for-profit  business  or
   21  corporate  entity  authorized to do business in New York state. Provided
   22  however, for-profit business or corporate entities shall not be eligible
   23  to submit an application to  establish  a  charter  school  pursuant  to
   24  subdivision  nine-a  of  section  twenty-eight hundred fifty-two of this
   25  article, or operate or manage a charter  school  for  a  charter  issued
   26  pursuant to subdivision nine-a of section twenty-eight hundred fifty-two
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05241-01-5
       A. 1618                             2
    1  of  this  article. For charter schools established in conjunction with a
    2  for-profit business or corporate entity, the charter shall  specify  the
    3  extent  of the entity's participation in the management and operation of
    4  the  school], AND PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL AN APPLICA-
    5  TION TO ESTABLISH A CHARTER SCHOOL OR  APPROVAL  TO  OPERATE  A  CHARTER
    6  SCHOOL  BE  GRANTED TO A FOR-PROFIT BUSINESS OR CORPORATE ENTITY AUTHOR-
    7  IZED TO DO BUSINESS IN THIS STATE NOR IN  ANY  MANNER  WHATSOEVER  SHALL
    8  THEY  HAVE  AN  INVOLVEMENT IN THE MANAGEMENT AND OPERATION OF A CHARTER
    9  SCHOOL. THE APPLICATION SHALL INCLUDE THE AMOUNT OF ANY  MANAGEMENT  FEE
   10  TO BE PAID TO ANY NOT-FOR-PROFIT CORPORATION WORKING IN CONJUNCTION WITH
   11  THE APPLICANTS.  SALARIES OF THE EMPLOYEES OF SUCH NOT-FOR-PROFIT CORPO-
   12  RATION  MAY  NOT  EXCEED  THE  SALARIES  FOR COMPARABLE POSITIONS IN THE
   13  SCHOOL DISTRICT OF LOCATION.
   14    S 3. Paragraphs (d), (h), (p) and (v) of subdivision 2 of section 2851
   15  of the education law, paragraphs (d) and (h) as added by  chapter  4  of
   16  the laws of 1998 and paragraphs (p) and (v) as amended by chapter 101 of
   17  the laws of 2010, are amended to read as follows:
   18    (d)  Admission  policies and procedures for the school, which shall be
   19  consistent with the requirements of subdivision two of  section  twenty-
   20  eight  hundred  fifty-four  of this article.  FOR CHARTER RENEWALS, SUCH
   21  POLICIES AND PROCEDURES SHALL INCLUDE PLANS  FOR  ENSURING  THE  STUDENT
   22  ENROLLMENT  OF  THE  CHARTER  SCHOOL INCLUDES A COMPARABLE PERCENTAGE OF
   23  STUDENTS ON FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH  LANGUAGE
   24  LEARNERS AS THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED.
   25    (h)  The  rules  and  procedures by which students may be disciplined,
   26  including but not limited to expulsion or suspension  from  the  school,
   27  which  shall be consistent with the requirements of due process and with
   28  federal laws and regulations governing the placement  of  students  with
   29  disabilities.  SUCH  RULES AND PROCEDURES SHALL INCLUDE THE PROVISION OF
   30  EDUCATIONAL SERVICES TO ANY STUDENT ON LONG TERM  SUSPENSION  OR  EXPUL-
   31  SION.
   32    (p)  The  term  of  the  proposed charter, which shall not exceed five
   33  years DURING WHICH INSTRUCTION IS PROVIDED TO PUPILS; provided  however,
   34  in the case of charters issued pursuant to subdivision nine-a of section
   35  twenty-eight hundred fifty-two of this article the term of such proposed
   36  charter  shall not exceed five years in which instruction is provided to
   37  pupils plus the period commencing with the effective date of the charter
   38  and ending with the opening of the school for instruction.
   39    (v) A code of ethics for the charter school,  setting  forth  for  the
   40  guidance  of  its  trustees,  officers  and  employees  the standards of
   41  conduct expected of them including standards with respect to  disclosure
   42  of  conflicts  of interest regarding any matter brought before the board
   43  of trustees.  SUCH CODE OF ETHICS SHALL BE IN  COMPLIANCE  WITH  SECTION
   44  EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
   45    S  4.  Paragraph (a) of subdivision 4 of section 2851 of the education
   46  law, as added by chapter 4 of the laws of 1998, is amended  to  read  as
   47  follows:
   48    (a)  A  report  of the progress of the charter school in achieving the
   49  educational objectives set forth  in  the  charter.  SUCH  REPORT  SHALL
   50  INCLUDE   DISAGGREGATED   STUDENT   PERFORMANCE  DATA  FOR  ALL  STUDENT
   51  SUBGROUPS.
   52    S 5. Paragraphs (c) and (d) of subdivision 2 of section  2852  of  the
   53  education  law,  paragraph  (c) as amended and paragraph (d) as added by
   54  section 2 of part D-2 of chapter 57 of the laws of 2007, are amended and
   55  two new paragraphs (e) and (f) are added to read as follows:
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    1    (c) granting the application is likely to improve student learning and
    2  achievement and materially further the purposes set out  in  subdivision
    3  two of section twenty-eight hundred fifty of this article; [and]
    4    (d)  in  a  school  district  where  the  total enrollment of resident
    5  students attending charter schools in the base year is greater than five
    6  percent of the total public school enrollment of the school district  in
    7  the  base  year  [(i)] granting the application would have a significant
    8  educational benefit to the students  expected  to  attend  the  proposed
    9  charter  school [or (ii) the school district in which the charter school
   10  will be located consents to such  application].  FOR  PURPOSES  OF  THIS
   11  PARAGRAPH,  IN  A  CITY  HAVING A POPULATION OF ONE MILLION OR MORE, THE
   12  SCHOOL DISTRICT SHALL BE THE COMMUNITY SCHOOL DISTRICT;
   13    (E) THE APPLICATION FOR THE CHARTER SCHOOL IS APPROVED BY THE BOARD OF
   14  EDUCATION OF THE SCHOOL DISTRICT WHERE  THE  CHARTER  SCHOOL  IS  TO  BE
   15  LOCATED; AND
   16    (F)  THE  CHARTER  ENTITY  SHALL NOT APPROVE AN APPLICATION THAT WOULD
   17  HAVE THE EFFECT OF INCREASING THE RACIAL ISOLATION OF A SCHOOL DISTRICT.
   18    S 6. Subdivision 5-b of section 2852 of the education law, as added by
   19  chapter 4 of the laws of 1998, is amended to read as follows:
   20    5-b. If the board of regents returns a proposed charter to the charter
   21  entity pursuant to the provisions of subdivision five-a of this section,
   22  such charter entity shall reconsider the proposed charter,  taking  into
   23  consideration  the  comments and recommendation of the board of regents.
   24  Thereafter, the charter entity shall resubmit the  proposed  charter  to
   25  the  board  of  regents  with modifications, provided that the applicant
   26  consents in writing to such modifications, resubmit the proposed charter
   27  to the board of regents without modifications WITH  AN  EXPLANATION  WHY
   28  THE  MODIFICATIONS  ARE NOT BEING MADE, or abandon the proposed charter.
   29  The board of regents shall review each such resubmitted proposed charter
   30  in  accordance  with  the  provisions  of  subdivision  five-a  of  this
   31  section[;  provided,  however, that it shall be the duty of the board of
   32  regents to approve and issue a proposed charter resubmitted by the char-
   33  ter entity described in paragraph (b) of subdivision  three  of  section
   34  twenty-eight hundred fifty-one of this article within thirty days of the
   35  resubmission  of such proposed charter or such proposed charter shall be
   36  deemed approved and issued at the expiration of such period].
   37    S 7. Subdivision 7 of section 2852 of the education law is amended  by
   38  adding a new paragraph (c) to read as follows:
   39    (C)  WHEN  A  REVISION OF A CHARTER INVOLVES AN INCREASE IN ENROLLMENT
   40  WHICH BRINGS TOTAL ENROLLMENT IN CHARTER SCHOOLS IN THE SCHOOL  DISTRICT
   41  OF  LOCATION  ABOVE FIVE PERCENT THE REVISION SHALL BE DENIED UNLESS THE
   42  SCHOOL DISTRICT OF LOCATION APPROVES THE REVISION OR  THE  RESIDENTS  OF
   43  THE  SCHOOL  DISTRICT  APPROVE  THE REVISION THROUGH A REFERENDUM OF THE
   44  ELIGIBLE VOTERS TO BE HELD IN CONJUNCTION WITH THE ANNUAL  BUDGET  VOTE.
   45  FOR  PURPOSES  OF  THIS  PARAGRAPH  IN A CITY HAVING A POPULATION OF ONE
   46  MILLION OR MORE THE SCHOOL DISTRICT OF LOCATION SHALL BE  THE  COMMUNITY
   47  SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED.
   48    S  8. Subdivision 10 of section 2852 of the education law, as added by
   49  section 3 of part D-2 of chapter 57 of the laws of 2007, is  amended  to
   50  read as follows:
   51    10. Except in the case of a charter school formed by a school district
   52  as  a  charter  entity pursuant to paragraph (a) of subdivision three of
   53  section twenty-eight hundred fifty-one of this article, a charter school
   54  formed by approval of the regents or by operation of  law  on  or  after
   55  [March] JANUARY fifteenth in any school year shall not commence instruc-
   56  tion until July of the second school year next following.
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    1    S  9.  Subdivision 2 of section 2853 of the education law, as added by
    2  chapter 4 of the laws of 1998, is amended to read as follows:
    3    2.  The  board of regents and charter entity shall oversee each school
    4  approved by such entity, and may visit, examine  into  and  inspect  any
    5  charter  school,  including  the records of such school, under its over-
    6  sight. Oversight by a charter entity and the board of regents  shall  be
    7  sufficient  to  ensure that the charter school is in compliance with all
    8  applicable laws, regulations and charter  provisions.    THE  DEPARTMENT
    9  SHALL INCLUDE CHARTER SCHOOLS IN ANY REVIEW OR AUDIT OF STATE ASSESSMENT
   10  ADMINISTRATION OR SCORING.
   11    S  10. Paragraph (a) of subdivision 3 of section 2853 of the education
   12  law, as amended by chapter 101 of the laws of 2010, is amended  to  read
   13  as follows:
   14    (a)  A  charter  school  may  be located in part of an existing public
   15  school building, in space provided on a private work site, in  a  public
   16  building or in any other suitable location, PROVIDED, HOWEVER, A CHARTER
   17  SCHOOL  SHALL  NOT BE LOCATED IN ANY PART OF AN EXISTING SCHOOL BUILDING
   18  WHEN SUCH SHARING WOULD IMPACT THE PUBLIC SCHOOL'S ABILITY TO  MEET  THE
   19  CLASS  SIZE TARGETS ESTABLISHED PURSUANT TO SECTION TWO HUNDRED ELEVEN-D
   20  OF THIS CHAPTER.   Provided, however, before a  charter  school  may  be
   21  located in part of an existing public school building, the charter enti-
   22  ty shall provide notice to the parents or guardians of the students then
   23  enrolled in the existing school building and shall hold a public hearing
   24  for purposes of discussing the location of the charter school. A charter
   25  school may own, lease or rent its space.
   26    S 11. Subdivision 3 of section 2853 of the education law is amended by
   27  adding two new paragraphs (f) and (g) to read as follows:
   28    (F)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CAPITAL FACILITY, OR
   29  OTHER IMPROVEMENTS MADE IN PUBLIC SCHOOL BUILDINGS OR EQUIPMENT  WITH  A
   30  PERIOD  OF  PROBABLE  USEFULNESS  OF  FIVE OR MORE YEARS, WITH PUBLIC OR
   31  PRIVATE FUNDS, TO ACCOMMODATE CHARTER SCHOOLS, SHALL REQUIRE MATCHING OR
   32  COMPARABLE IMPROVEMENTS BE MADE FOR OTHER DISTRICT  SCHOOLS  LOCATED  IN
   33  THE SAME BUILDING.
   34    (G) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CONSTRUCTION OR CAPI-
   35  TAL  IMPROVEMENT  MADE  IN ACCORDANCE WITH THIS ARTICLE SHALL BE MADE IN
   36  ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT AND NINE
   37  OF THE LABOR LAW.
   38    S 12. Paragraphs (c) and (e) of subdivision 1 of section 2854  of  the
   39  education  law,  paragraph  (c)  as amended by section 10-b of part A of
   40  chapter 56 of the laws of 2014 and paragraph (e) as added by  chapter  4
   41  of the laws of 1998, are amended to read as follows:
   42    (c)  A  charter  school  shall be subject to the financial audits, the
   43  audit procedures, and the audit requirements set forth in  the  charter,
   44  and  [shall]  MAY  be  subject  to audits of the comptroller of the city
   45  school district of the city of New York for charter schools  located  in
   46  New  York  city,  [and] to the audits of the comptroller of the state of
   47  New York for charter schools located in the rest of the state,  [at  his
   48  or  her  discretion] OR THE CHARTER ENTITY, with respect to the school's
   49  financial operations. Such procedures and standards shall be  consistent
   50  with  generally  accepted  accounting  and  audit standards. Independent
   51  fiscal audits shall be required at least once annually.
   52    (e) A charter school shall be subject to the  provisions  of  articles
   53  six  and  seven  of the public officers law IN THE SAME MANNER AS PUBLIC
   54  SCHOOL DISTRICTS.
   55    S 13. Subdivision 1 of section 2854 of the education law is amended by
   56  adding a new paragraph (g) to read as follows:
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    1    (G) A CHARTER SCHOOL SHALL BE SUBJECT TO  THE  PROVISIONS  OF  SECTION
    2  EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
    3    S  14. Subdivision 2 of section 2854 of the education law, as added by
    4  chapter 4 of the laws of 1998, paragraphs (a)  and  (b)  as  amended  by
    5  chapter 101 of the laws of 2010, is amended to read as follows:
    6    2.  Admissions;  enrollment; students.   (a) A charter school shall be
    7  nonsectarian in its programs, admission policies, employment  practices,
    8  and  all other operations and shall not charge tuition or fees; provided
    9  that a charter school may require the payment of fees on the same  basis
   10  and  to  the same extent as other public schools. A charter school shall
   11  not discriminate against any student, employee or any  other  person  on
   12  the  basis  of  ethnicity, national origin, gender, or disability or any
   13  other ground that would be unlawful if done by a  school.  Admission  of
   14  students  shall  not  be  limited  on the basis of intellectual ability,
   15  measures of achievement or aptitude, athletic ability, disability, race,
   16  creed, gender, national origin, religion, or ancestry; provided,  howev-
   17  er,  that  nothing  in  this  article  shall be construed to prevent the
   18  establishment of  a  single-sex  charter  school  or  a  charter  school
   19  designed to provide expanded learning opportunities for students at-risk
   20  of  academic  failure or students with disabilities and English language
   21  learners; and provided, further, that the charter school  shall  [demon-
   22  strate good faith efforts to] attract and retain a comparable or greater
   23  enrollment of students with disabilities, English language learners, and
   24  students  who  are  eligible  applicants  for the free and reduced price
   25  lunch program when compared to the enrollment figures for such  students
   26  in  the  school  district  in which the charter school is located.  IF A
   27  CHARTER SCHOOL IS NOT SUCCESSFUL IN ATTRACTING A COMPARABLE  OR  GREATER
   28  ENROLLMENT  OF STUDENTS WITH DISABILITIES AND LIMITED ENGLISH PROFICIENT
   29  STUDENTS AS COMPARED TO THE ENROLLMENT FIGURES FOR SUCH STUDENTS IN  THE
   30  SCHOOL  DISTRICT  IN  WHICH  THE  CHARTER SCHOOL IS LOCATED SUCH CHARTER
   31  SCHOOL SHALL PROVIDE THE CHARTERING ENTITY WITH A PLAN FOR IMPROVING THE
   32  ENROLLMENT OF SUCH STUDENTS IN THE FOLLOWING  YEAR.  FAILURE  TO  COMPLY
   33  WITH  THIS  REQUIREMENT  FOR  TWO  CONSECUTIVE YEARS SHALL BE SUBJECT TO
   34  REVOCATION IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION  TWENTY-EIGHT
   35  HUNDRED FIFTY-FIVE OF THIS ARTICLE. A charter shall not be issued to any
   36  school that would be wholly or in part under the control or direction of
   37  any  religious  denomination,  or  in  which any denominational tenet or
   38  doctrine would be taught.
   39    (b) Any child who is qualified under the laws of this state for admis-
   40  sion to a public school is qualified for admission to a charter  school.
   41  Applications  for  admission to a charter school shall be submitted on a
   42  uniform application form created by the department  and  shall  be  made
   43  available  by  a charter school in languages predominately spoken in the
   44  community in which such charter school  is  located.  The  school  shall
   45  enroll  each  eligible  student  who submits a timely application by the
   46  first day of April each year, unless the number of applications  exceeds
   47  the  capacity  of  the  grade level or building. In such cases, students
   48  shall be accepted from among applicants by a random  selection  process,
   49  provided,  however,  that  an enrollment preference shall be provided to
   50  pupils WHEN THE CHARTER SCHOOL IS LOCATED WITHIN ONE MILE OF THE PUPILS'
   51  RESIDENCE, PUPILS returning to the charter school in the second  or  any
   52  subsequent  year of operation and pupils residing in the school district
   53  in which the charter school is located, and siblings of  pupils  already
   54  enrolled  in the charter school AND STUDENTS ON FREE LUNCH, AND STUDENTS
   55  WITH DISABILITIES, AND STUDENTS WITH LIMITED ENGLISH PROFICIENCY.    The
   56  commissioner  shall  establish  regulations  to  require that the random
       A. 1618                             6
    1  selection process conducted pursuant to this paragraph be performed in a
    2  transparent and equitable manner and to require that the time and  place
    3  of  the  random  selection  process be publicized in a manner consistent
    4  with the requirements of section one hundred four of the public officers
    5  law  and  be  open to the public. For the purposes of this paragraph and
    6  paragraph (a) of this subdivision, the  school  district  in  which  the
    7  charter  school  is  located shall mean, for the city school district of
    8  the city of New York, the community district in which the charter school
    9  is located.    THE  CHARTER  ENTITY  IS  RESPONSIBLE  FOR  ENSURING  THE
   10  SELECTION PROCESS IS CONDUCTED IN ACCORDANCE WITH THIS PARAGRAPH. IF THE
   11  CHARTER  ENTITY  DETERMINES  THE  PROCESS IS NOT IN COMPLIANCE WITH THIS
   12  PARAGRAPH, THE CHARTER ENTITY SHALL CONDUCT THE PROCESS.
   13    (c) A charter school shall serve one or more of the grades one through
   14  twelve, and shall limit admission to  pupils  within  the  grade  levels
   15  served. Nothing herein shall prohibit a charter school from establishing
   16  a kindergarten program.
   17    (d)  A  student  may  withdraw  from  a charter school at any time and
   18  enroll in a public school. A CHARTER SCHOOL MUST PROVIDE A REPORT TO THE
   19  CHARTERING ENTITY EACH YEAR INDICATING THE NUMBER  OF  STUDENTS  LEAVING
   20  THE  CHARTER  SCHOOL, THE MONTHS IN WHICH THE STUDENTS LEAVE THE SCHOOL,
   21  THE REASON THE STUDENTS LEAVE THE SCHOOL AND THE SCHOOL THE  STUDENT  IS
   22  CURRENTLY  ATTENDING.  A  charter  school  may  refuse  admission to any
   23  student who has been expelled or suspended from a  public  school  until
   24  the  period  of  suspension  or  expulsion  from  the  public school has
   25  expired, consistent with the requirements of due process.
   26    S 15. Paragraphs (b-1), (c) and (c-1) of subdivision 3 of section 2854
   27  of the education law, paragraph (b-1) as amended by section  6  of  part
   28  D-2  of  chapter 57 of the laws of 2007, and paragraphs (c) and (c-1) as
   29  added by chapter 4 of the laws of 1998, are amended to read as follows:
   30    (b-1) The employees of a charter school [that is not a conversion from
   31  an existing public school] shall [not] be deemed members  of  [any]  THE
   32  existing collective bargaining unit representing employees of the school
   33  district  in which the charter school is located, and the charter school
   34  and its employees shall [not] be  subject  to  any  existing  collective
   35  bargaining  agreement  between  the  school  district and its employees.
   36  [Provided, however, that (i) if the student enrollment  of  the  charter
   37  school  on  the  first day on which the charter school commences student
   38  instruction exceeds two hundred fifty or if the  average  daily  student
   39  enrollment  of  such  school  exceeds  two hundred fifty students at any
   40  point during the first two years  after  the  charter  school  commences
   41  student  instruction,  all  employees of the school who are eligible for
   42  representation under article fourteen of the civil service law shall  be
   43  deemed  to  be represented in a separate negotiating unit at the charter
   44  school by the same employee organization, if any, that  represents  like
   45  employees  in  the  school  district  in  which  such  charter school is
   46  located; (ii) the provisions of subparagraph (i) of this  paragraph  may
   47  be  waived  in  up  to  ten charters issued on the recommendation of the
   48  charter entity set forth  in  paragraph  (b)  of  subdivision  three  of
   49  section  twenty-eight  hundred  fifty-one  of  this  article;  (iii) the
   50  provisions of subparagraph (i) of this paragraph shall not be applicable
   51  to the renewal or extension of a  charter;  and  (iv)  nothing  in  this
   52  sentence  shall  be construed to subject a charter school subject to the
   53  provisions of this paragraph or its employees to any collective bargain-
   54  ing agreement between any public school district and its employees or to
   55  make the employees of such charter school part of any  negotiating  unit
   56  at such school district. The charter school may, in its sole discretion,
       A. 1618                             7
    1  choose  whether  or  not  to  offer the terms of any existing collective
    2  bargaining to school employees.] PROVIDED, HOWEVER, THAT A  MAJORITY  OF
    3  THE MEMBERS OF A NEGOTIATING UNIT WITHIN A CHARTER SCHOOL MAY MODIFY, IN
    4  WRITING,  A  COLLECTIVE BARGAINING AGREEMENT FOR THE PURPOSES OF EMPLOY-
    5  MENT IN THE CHARTER SCHOOL WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF
    6  THE CHARTER SCHOOL.
    7    (c) The employees of the charter school [may] SHALL be deemed  employ-
    8  ees of the local school district for the purpose of providing retirement
    9  benefits,  including  membership  in the teachers' retirement system and
   10  other retirement systems open to employees of public schools. The finan-
   11  cial contributions for such benefits shall be the responsibility of  the
   12  charter  school and the school's employees. The commissioner, in consul-
   13  tation with the comptroller, shall develop regulations to implement  the
   14  provisions  of this paragraph in a manner that allows charter schools to
   15  provide retirement benefits to its employees in the same manner as other
   16  public school employees.
   17    (c-1) Reasonable access. (i) If employees of the  charter  school  are
   18  not  represented,  any charter school chartered pursuant to this article
   19  must afford reasonable access to any employee  organization  during  the
   20  reasonable proximate period before any representation question is raised
   21  IN THE SAME MANNER AS ANY PUBLIC EMPLOYER; or
   22    (ii)  If  the  employee  organization  is  a challenging organization,
   23  reasonable access must be provided to any organization seeking to repre-
   24  sent employees beginning with a date reasonably proximate to a challenge
   25  period. Reasonableness is defined, at a minimum, as access equal to that
   26  provided to the incumbent organization.
   27    S 16. Subdivision 1 of section 2855 of the education law,  as  amended
   28  by chapter 101 of the laws of 2010, is amended to read as follows:
   29    1.  The charter entity, or the board of regents, [may] SHALL terminate
   30  a charter upon any of the following grounds:
   31    (a) When a charter school's outcome  on  student  assessment  measures
   32  adopted  by  the board of regents falls below the level that would allow
   33  the commissioner to revoke the registration of  another  public  school,
   34  and student achievement on such measures [has not shown improvement] HAS
   35  NOT MET ANNUAL YEARLY PROGRESS over the preceding three school years;
   36    (b) Serious violations of law;
   37    (c)  Material  and  substantial  violation  of  the charter, including
   38  fiscal mismanagement AND FAILURE TO MEET STUDENT PERFORMANCE TARGETS;
   39    (d) When the public employment relations board makes  a  determination
   40  that the charter school demonstrates a practice and pattern of egregious
   41  and  intentional  violations  of  subdivision one of section two hundred
   42  nine-a of the civil service law involving interference with or discrimi-
   43  nation against employee rights  under  article  fourteen  of  the  civil
   44  service law; [or]
   45    (e)  Repeated failure to comply with the requirement to meet or exceed
   46  enrollment and retention targets of students with disabilities,  English
   47  language learners, and students who are eligible applicants for the free
   48  and  reduced  price lunch program pursuant to targets established by the
   49  board of regents or the board of trustees of the state university of New
   50  York, as applicable. Provided, however, if no grounds for terminating  a
   51  charter  are established pursuant to this section other than pursuant to
   52  this paragraph, and the charter school demonstrates  that  it  has  made
   53  extensive  efforts  to  recruit  and  retain  such  students,  including
   54  outreach to parents and families in the surrounding communities,  widely
   55  publicizing  the  lottery  for  such school, and efforts to academically
       A. 1618                             8
    1  support such students in such charter school, then the charter entity or
    2  board of regents may retain such charter[.]; OR
    3    (F)  FAILURE  TO ENROLL A COMPARABLE PERCENTAGE OF STUDENTS QUALIFYING
    4  FOR FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE LEARNERS
    5  FOR TWO CONSECUTIVE YEARS.
    6    S 17. Paragraph (b) of subdivision 1 of section 2856 of the  education
    7  law, as amended by chapter 378 of the laws of 2007, is amended and a new
    8  paragraph (a-1) is added to read as follows:
    9    (A-1)  FOR  THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR
   10  AND EACH  SCHOOL  YEAR  THEREAFTER  THE  STATE  SHALL  REIMBURSE  SCHOOL
   11  DISTRICTS  FOR  THE LOCAL SHARE OF THE CHARTER SCHOOL TUITION PAYMENT OF
   12  ANY STUDENTS ATTENDING A CHARTER SCHOOL IN THE JUNE PAYMENT REQUIRED  BY
   13  SECTION  THREE  THOUSAND  SIX HUNDRED NINE-A OF THIS CHAPTER. SUCH LOCAL
   14  SHARE SHALL BE CALCULATED BY DEDUCTING FROM THE CHARTER  SCHOOL  TUITION
   15  PAYMENT THE PER PUPIL FOUNDATION AID AMOUNT ATTRIBUTABLE TO SUCH PUPIL.
   16    (b)  The school district shall also pay directly to the charter school
   17  any federal or state aid attributable to a  student  with  a  disability
   18  attending charter school in proportion to the level of services for such
   19  student  with  a disability that the charter school provides directly or
   20  indirectly. Notwithstanding anything in this section  to  the  contrary,
   21  amounts  payable  pursuant to this subdivision from state or local funds
   22  may be reduced pursuant to an agreement between the school and the char-
   23  ter entity set forth in the charter.  Payments  made  pursuant  to  this
   24  subdivision  shall  be  made by the school district in six substantially
   25  equal installments each year beginning on the first business day of July
   26  and every two months thereafter. Amounts payable under this  subdivision
   27  shall  be  determined  by the commissioner. Amounts payable to a charter
   28  school in its first year of operation shall be based on the  projections
   29  of initial-year enrollment set forth in the charter until actual enroll-
   30  ment data is reported to the school district by the charter school. SUCH
   31  ACTUAL ENROLLMENT SHALL BE REPORTED TO THE SCHOOL DISTRICT PRIOR TO EACH
   32  PAYMENT  FOLLOWING  THE  INITIAL  JULY  PAYMENT  WHICH SHALL BE BASED ON
   33  PROJECTED ENROLLMENT. Such projections  shall  be  reconciled  with  the
   34  actual  enrollment  as  actual enrollment data is so reported and at the
   35  end of the school's first year of operation  and  each  subsequent  year
   36  based  on a final report of actual enrollment by the charter school, and
   37  any necessary adjustments resulting from such final report shall be made
   38  to payments during the school's following year of operation.
   39    S 18. Subdivisions 2 and 3 of  section  2857  of  the  education  law,
   40  subdivision  2  as amended and paragraph (a-1) of subdivision 3 as added
   41  by chapter 101 of the laws of 2010  and  subdivision  3  as  amended  by
   42  section  7 of part D-2 of chapter 57 of the laws of 2007, are amended to
   43  read as follows:
   44    2. Each charter school shall submit to the charter entity and  to  the
   45  board  of regents an annual report. Such report shall be issued no later
   46  than the first day of August of each year for the preceding school  year
   47  AND  PROVIDED TO THE SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED
   48  FOR DISPLAY ON THE SCHOOL DISTRICT WEBSITE, and shall be  made  publicly
   49  available  by  such  date  and  shall  be posted on the charter school's
   50  website. The annual report shall be in such form as shall be  prescribed
   51  by the commissioner and shall include at least the following components:
   52    (a)  a charter school report card, which shall include measures of the
   53  comparative academic and fiscal performance of the school, as prescribed
   54  by the commissioner in regulations adopted for such purpose. Such  meas-
   55  ures  shall  include,  but  not be limited to, graduation rates, dropout
   56  rates, performance of students on standardized tests  DISAGGREGATED  FOR
       A. 1618                             9
    1  SUB-GROUPS,  college  entry rates, total spending per pupil and adminis-
    2  trative spending per pupil.   Such measures  shall  be  presented  in  a
    3  format that is easily comparable to similar public schools. In addition,
    4  the charter school shall ensure that such information is easily accessi-
    5  ble to the community including making it publicly available by transmit-
    6  ting  it to local newspapers of general circulation and making it avail-
    7  able for distribution at board of trustee meetings.
    8    (b) discussion of the progress made towards achievement of  the  goals
    9  set forth in the charter.
   10    (c)  a  certified  financial  statement  setting forth, by appropriate
   11  categories, the revenues FROM ALL SOURCES and expenditures INCLUDING THE
   12  SALARY OF THE SCHOOL LEADER AND ANY OTHER  SALARIES  IN  EXCESS  OF  THE
   13  REPORTING  REQUIREMENTS FOR PUBLIC SCHOOL DISTRICTS CONTAINED IN SECTION
   14  SIXTEEN HUNDRED EIGHT OF THIS TITLE AND CONTRACTS WITH  CONSULTANTS  AND
   15  VENDORS  for  the  preceding  school  year, including a copy of the most
   16  recent independent fiscal audit of the school and any audit conducted by
   17  the comptroller of the state of New York.
   18    (d) efforts taken by the charter school in the existing  school  year,
   19  and  a  plan  for  efforts to be taken in the succeeding school year, to
   20  meet or exceed enrollment and retention targets  set  by  the  board  of
   21  regents or the board of trustees of the state university of New York, as
   22  applicable,  of  students  with disabilities, English language learners,
   23  and students who are eligible applicants for the free and reduced  price
   24  lunch  program established pursuant to paragraph (e) of subdivision four
   25  of section twenty-eight hundred fifty-one of this article.
   26    3. The board of regents shall report annually BY DECEMBER FIRST to the
   27  governor, the temporary president of the senate, and the speaker of  the
   28  assembly AND THE PUBLIC the following information:
   29    (a)  The  number, distribution, and a brief description of new charter
   30  schools established during the preceding year;
   31    (a-1) A list including the number of charter schools closed during the
   32  preceding year, and a brief description of the reasons therefor  includ-
   33  ing, but not limited to, non-renewal of the charter or revocation of the
   34  charter;
   35    (b)  The department's assessment of the current and projected program-
   36  matic and fiscal impact of charter schools on the delivery  of  services
   37  by school districts;
   38    (c)  The  academic  progress of students attending charter schools, as
   39  measured against comparable public and nonpublic  schools  with  similar
   40  student population characteristics [wherever practicable];
   41    (d)  A list of all actions taken by a charter entity on charter appli-
   42  cation and the rationale for the renewal or revocation of any  charters;
   43  and
   44    (e)  Any other information regarding charter schools that the board of
   45  regents deems necessary INCLUDING INFORMATION ON BEST PRACTICES OF CHAR-
   46  TER SCHOOLS THAT IMPROVE STUDENT PERFORMANCE.
   47    The format for this annual report shall be developed  in  consultation
   48  with representatives of school districts and charter school officials.
   49    S 19. Subparagraph (v) of paragraph a of subdivision 7 of section 1608
   50  of the education law, as amended by section 4 of part A of chapter 97 of
   51  the  laws  of  2011,  is amended and a new subparagraph (vi) is added to
   52  read as follows:
   53    (v) the projected amount of the unappropriated unreserved fund balance
   54  that will be retained if the proposed budget is adopted,  the  projected
   55  amount  of the reserved fund balance, the projected amount of the appro-
   56  priated fund balance, the percentage of the  proposed  budget  that  the
       A. 1618                            10
    1  unappropriated  unreserved  fund balance represents, the actual unappro-
    2  priated unreserved fund balance retained in the school  district  budget
    3  for the preceding school year, and the percentage of the school district
    4  budget  for  the  preceding  school  year that the actual unappropriated
    5  unreserved fund balance represents[.]; AND
    6    (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
    7  THE NEXT SCHOOL YEAR.
    8    S 20. Subparagraph (v) of paragraph a of subdivision 7 of section 1716
    9  of the education law, as amended by section 5 of part A of chapter 97 of
   10  the laws of 2011, is amended and a new subparagraph  (vi)  is  added  to
   11  read as follows:
   12    (v) the projected amount of the unappropriated unreserved fund balance
   13  that  will  be retained if the proposed budget is adopted, the projected
   14  amount of the reserved fund balance, the projected amount of the  appro-
   15  priated  fund  balance,  the  percentage of the proposed budget that the
   16  unappropriated unreserved fund balance represents, the  actual  unappro-
   17  priated  unreserved  fund balance retained in the school district budget
   18  for the preceding school year, and the percentage of the school district
   19  budget for the preceding school  year  that  the  actual  unappropriated
   20  unreserved fund balance represents[.]; AND
   21    (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
   22  THE NEXT SCHOOL YEAR.
   23    S  21.  Paragraph  t of subdivision 1 of section 3602 of the education
   24  law is amended by adding a new closing paragraph to read as follows:
   25    NOTWITHSTANDING ANY OTHER  PROVISIONS  OF  LAW  TO  THE  CONTRARY,  IN
   26  COMPUTING APPROVED OPERATING EXPENSE PURSUANT TO THIS PARAGRAPH FOR CITY
   27  SCHOOL  DISTRICTS  OF  THOSE CITIES HAVING A POPULATION IN EXCESS OF ONE
   28  HUNDRED TWENTY-FIVE THOUSAND BUT LESS THAN ONE MILLION; AN AMOUNT  EQUAL
   29  TO  (I) THE AMOUNT COMPUTED FOR THE SCHOOL DISTRICT FOR THE TWO THOUSAND
   30  SIX--TWO THOUSAND SEVEN SCHOOL YEAR PURSUANT TO FORMER SUBDIVISION THIR-
   31  TY-SEVEN OF THIS SECTION AS THIS SECTION EXISTED ON JUNE THIRTIETH,  TWO
   32  THOUSAND SEVEN, (II) THE STATE FUNDS WHICH SUCH DISTRICT RECEIVED IN THE
   33  TWO  THOUSAND  SIX--TWO  THOUSAND  SEVEN  SCHOOL  YEAR FOR MAGNET SCHOOL
   34  GRANTS TO PUBLIC SCHOOLS, AND (III) THE STATE FUNDS WHICH SUCH  DISTRICT
   35  RECEIVED  IN  THE  TWO  THOUSAND SIX--TWO THOUSAND SEVEN SCHOOL YEAR FOR
   36  TEACHER SUPPORT, SHALL BE ACCOUNTED FOR IN THE SAME WAY AS  STATE  FUNDS
   37  RECEIVED  FOR  SUCH  PURPOSE IN THE TWO THOUSAND SIX--TWO THOUSAND SEVEN
   38  SCHOOL YEAR.
   39    S 22. This act shall take effect immediately; provided, however,  that
   40  the  amendments  to  subdivision  1 of section 2856 of the education law
   41  made by section seventeen of this act shall not affect the expiration of
   42  such subdivision and shall expire therewith; provided further  that  the
   43  amendments to paragraph a of subdivision 7 of section 1608 of the educa-
   44  tion law made by section nineteen of this act shall not affect the expi-
   45  ration  of  such  paragraph  and  shall  expire  therewith; and provided
   46  further that the amendments to paragraph a of subdivision 7  of  section
   47  1716  of  the education law made by section twenty of this act shall not
   48  affect the expiration of such paragraph and shall expire therewith.