senate Bill S1540

Relates to charter schools

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 09 / Jan / 2013
    • REFERRED TO EDUCATION
  • 08 / Jan / 2014
    • REFERRED TO EDUCATION

Summary

Relates to charter schools; clarifies the transparency and accountability of charter schools and provides fiscal relief to the school districts where charter schools are located.

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Bill Details

See Assembly Version of this Bill:
A3033
Versions:
S1540
Legislative Cycle:
2013-2014
Current Committee:
Senate Education
Law Section:
Education Law
Laws Affected:
Amd Ed L, generally
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2415B, A3797A
2009-2010: S6469A, A10040A

Sponsor Memo

BILL NUMBER:S1540

TITLE OF BILL: An act to amend the education law, in relation to
charter schools

PURPOSE OR GENERAL IDEA OF BILL: To clarify the transparency and
accountability of charter schools and provide fiscal relief to the
school districts where charter schools are located.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 describes the legislative intent behind this law to increase
the transparency and accountability of charter schools and to provide
fiscal relief to local school districts.

Sections 2 Amends paragraph 1 of subdivision 1 of section 2851 of the
education law to remove fox profit operators from the law and limits
salaries of not for profit management companies to the comparable
salaries of the school district.

Section 3 Amends paragraphs (d), (h), (p), and (v) of subdivision 2 of
section 2851 of the education law to require that charter schools up
for renewal include a plan on how they will ensure student enrollment
reflects local school district enrollment. Requires charter schools to
show how they intend to provide services to students on long term
suspension or expulsion. Allows charter schools to provide instruction
for 5 years before renewal of the charter. Requires the board to adopt
a code of ethics in compliance with the general municipal law.

Section 4 Amends paragraph (a) of subdivision 4 of Section 2851 of the
education law to require a charter school applying for renewal to
include disaggregated student performance data in the progress report.

Section 5 Amends subdivision 2 of section 2852 of the education law by
adding paragraphs (e) and (f) to require the approval of the
application by the board of education.

Section 6 Amends Subdivision 5-b of section 2852 of the education law
to require SUNY to provide an explanation why they are not making
modifications in a charter suggested by the Regents and removes the
automatic approval of second submissions by SUNY.

Section 7 Amends Subdivision 7 of Section 2852 by adding a new
paragraph (c) of the education law that requires charter entities to
deny a charter revision that would increase charter school enrollment
above 5 percent of the enrollment of the school district where the
charter school is located and defines the school district of location
as the community school district for New York city.

Section 8 Amends Subdivision 10 of Section 2852 of the education law
to change the approval date from March 15 to January 15 in order for a
school to open the following September. This provision gives school
district more ability to plan in their budget process.

Section 9 Amends Subdivision 2 of Section 2853 of the education law to
require State Education Department to include charter schools in any
review or audit of state test administration and scoring.


Section 10 Amends paragraph (a) of Subdivision 3 of Section 2853 of
the education law to set limits on shared space when a school district
is not meeting class size targets.

Section 11 Amends Subdivision 3 of Section 2853 by adding paragraphs
(d) and (e) of the education law to require charter school facility
projects to follow the prevailing wage statutes and to require schools
to make equitable improvements in shared facilities.

Section 12 Amends Paragraphs (c) and (e) of Subdivision 1 of Section
2854 of the education law to clarify that charter school boards must
have a code of ethics in conformance with the general municipal law
and that charter schools are subject to audits by the charter entity.

Section 13 Amends Subdivision 1 of Section 2854 of the education law
by adding paragraph (f) to require charter schools to have a code of
ethics.

Section 14 Amends Subdivision 2 Section 2854 of the education law and
paragraphs (a) and (b)as amended by section 5 of Part-D2 of chapter 57
of laws of 2007 to require the charter school to develop a plan for
enrolling students with disabilities and limited English proficient
students at the same levels as the local school district. It requires
Charter schools to give a preference to students on free and reduced
price lunch, students with disabilities and. students with limited
English proficiency when conducting a lottery. It requires charter
schools to provide a report to the chartering entity indicating the
number students leaving the school, why they left and when they left.
It requires the charter entity to ensure the random selection process
of the lottery is conducted properly.

Section 15 Amends paragraphs (b-1), (c) and (c-1) of Subdivision 3 of
Section 2854 of the education law to clarify that charter schools
employees are members of the local collective bargaining unit and that
charter school teachers are members of the retirement system.

Section 16 Amends Subdivision 1 of Section 2855 of the education law
to clarify that a charter shall be revoked if a school would be
subject to registration revocation and had not met AYP in the last
three years. The previous language only required growth rather than
meeting AYP. It allows for revocation when the school does not meet
performance targets contained in the charter and student demographics
of the district of location for 2 years.

Section 17 Amends subdivision 1 of Section 2856 of the education law
to require the state to reimburse school districts for the local share
of charter school tuition in the June State aid payment. This
provision removes charter school funding from local school districts.
School districts already receive state aid for these students so the
only portion not paid by the state is the local share. We may have to
phase in this change due to the state fiscal crisis but I think this
is a good starting point. It leaves room for compromise. It also
requires charter schools to provide actual enrollment counts after the
initial payment each year.

Section 18 Amends subdivisions 2 and 3 of Section 2857 of the
education law to require that Charter school annual reports be placed


on school district web sites. It requires the report to include
disaggregated student performance data and additional financial
information. It requires SED to do an annual report by December first
of each year to include information on best practices.

Section 19 Amends Paragraph (a) of Subdivision 7 of Section 1608 of
the education law to require that school districts include charter
school payments in the property tax report card. section 20 Amends
Paragraph (a) of Subdivision 7 of section 1716 of the education law to
require school districts to include charter school payments in the
property tax report card.

Section 21 Amends Paragraph (t) of subdivision 1 of Section 3602 of
the education law to adjust the formula used to compute approved
operating expenses (AGE). When the state aid formula was revised in
2007-08, categorical grant programs were merged into a new Foundation
Aid formula which has had the unintended consequence of artificially
inflating AGE.

Section 22 is the effective date.

JUSTIFICATION: New York's charter school law was enacted 11 years ago
in an effort to create new learning opportunities for all students, to
encourage different and innovative teaching methods and to provide
parents and students with expanded choice within the public schools.
Eleven years provides the state with enough information to make
judgments about changes that are needed in the law to ensure the
public knows how their tax dollars are being spent and to ensure
public schools serving the majority of students have the resources
needed to provide a quality education to all students. This
legislation will clarify the transparency and accountability of
charter schools and provide fiscal relief to the school districts
where charter schools are located.

This bill would provide fiscal relief to local property taxpayers by
reimbursing the local share of the charter school tuition payment
going forward. The savings to property taxpayers and the cost to the
State would be approximately $163 million. This bill would ensure
fairness in funding, so that both charter schools and regular schools
can provide a quality education for all students. Fairness in
resources means charter school funding cannot come at the expense of
neighborhood public schools.

Just as the deregulation of Wall street led to the economic and
subprime mortgage crisis, the Medoff scandal and excessive executive
bonuses, deregulating public education and turning over taxpayers'
dollars to Private operators without sufficient accountability and
transparency has created opportunities for mismanagement and abuses.

Many charter schools send 30 percent of this money to management
companies, both for-profit and not-for-profit - money that never makes
it into the classroom. Charter school board members and employees
should be subject to the exact same financial disclosure requirements
and conflict-of-interest prohibitions as other public officials and
employees. For-profit operators should be banned from owning or
operating charter schools, and management fees and charter operator
salaries should be publicly disclosed.


Charter operators are currently exempt from having to issue property
tax report cards; do not hold public votes on their school budgets or
elect independent school board members in a public vote. This bill
would include charter school payments in the property tax report card.

Charter operators, who receive more than 95 percent of their revenue
from public funds, currently are also exempt from audits by the Office
of the State Comptroller, which recently completed audits of all other
regular public schools. This bill would allow the state and City
comptroller to conduct audits.

PRIOR LEGISLATIVE HISTORY: 2011-12 Referred to Education 2009-10
Referred to Education

FISCAL IMPLICATIONS: In New York state, we currently have 140 charter
schools operating in 2009-10, serving about 44,000 kids. Traditional
public schools sent $530 million this year to charter schools via
their tuition payments.

Tuition payments come from a combination of state and local dollars.
In the 2009-10 school year, almost 50 percent or $263 million came
from local revenue or property taxes.

If the state legislature raises the charter cap to 460 we will more
than triple the number of schools, students and costs. If school sizes
remain consistent - New York will have 145,000 kids in charter schools
and taxpayers will be sending $2 billion to charter schools.

If the new charter schools. are similarly distributed around the state
this would add an additional $1 billion cost to property taxpayers.
This is an overall increase in costs which is more than twice the
value of Race to the Top, a one-time grant.

EFFECTIVE DATE: This act shall take effect immediately, with
provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1540

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERKINS -- read twice and ordered printed, and when
  printed to be committed to the Committee 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:

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04145-01-3

S. 1540                             2

pursuant to subdivision nine-a of section twenty-eight hundred fifty-two
of  this  article. For charter schools established in conjunction with a
for-profit business or corporate entity, the charter shall  specify  the
extent  of the entity's participation in the management and operation of
the school], AND PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL AN  APPLICA-
TION  TO  ESTABLISH  A  CHARTER  SCHOOL OR APPROVAL TO OPERATE A CHARTER
SCHOOL BE GRANTED TO A FOR-PROFIT BUSINESS OR CORPORATE  ENTITY  AUTHOR-
IZED  TO  DO  BUSINESS  IN THIS STATE NOR IN ANY MANNER WHATSOEVER SHALL
THEY HAVE AN INVOLVEMENT IN THE MANAGEMENT AND OPERATION  OF  A  CHARTER
SCHOOL.  THE  APPLICATION SHALL INCLUDE THE AMOUNT OF ANY MANAGEMENT FEE
TO BE PAID TO ANY NOT-FOR-PROFIT CORPORATION WORKING IN CONJUNCTION WITH
THE APPLICANTS.  SALARIES OF THE EMPLOYEES OF SUCH NOT-FOR-PROFIT CORPO-
RATION MAY NOT EXCEED THE  SALARIES  FOR  COMPARABLE  POSITIONS  IN  THE
SCHOOL DISTRICT OF LOCATION.
  S 3. Paragraphs (d), (h), (p) and (v) of subdivision 2 of section 2851
of  the  education  law, paragraphs (d) and (h) as added by chapter 4 of
the laws of 1998 and paragraphs (p) and (v) as amended by chapter 101 of
the laws of 2010, are amended to read as follows:
  (d) Admission policies and procedures for the school, which  shall  be
consistent  with  the requirements of subdivision two of section twenty-
eight hundred fifty-four of this article.   FOR CHARTER  RENEWALS,  SUCH
POLICIES  AND  PROCEDURES  SHALL  INCLUDE PLANS FOR ENSURING THE STUDENT
ENROLLMENT OF THE CHARTER SCHOOL INCLUDES  A  COMPARABLE  PERCENTAGE  OF
STUDENTS  ON FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE
LEARNERS AS THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED.
  (h) The rules and procedures by which  students  may  be  disciplined,
including  but  not  limited to expulsion or suspension from the school,
which shall be consistent with the requirements of due process and  with
federal  laws  and  regulations governing the placement of students with
disabilities. SUCH RULES AND PROCEDURES SHALL INCLUDE THE  PROVISION  OF
EDUCATIONAL  SERVICES  TO  ANY STUDENT ON LONG TERM SUSPENSION OR EXPUL-
SION.
  (p) The term of the proposed charter,  which  shall  not  exceed  five
years  DURING WHICH INSTRUCTION IS PROVIDED TO PUPILS; provided however,
in the case of charters issued pursuant to subdivision nine-a of section
twenty-eight hundred fifty-two of this article the term of such proposed
charter shall not exceed five years in which instruction is provided  to
pupils plus the period commencing with the effective date of the charter
and ending with the opening of the school for instruction.
  (v)  A  code  of  ethics for the charter school, setting forth for the
guidance of its  trustees,  officers  and  employees  the  standards  of
conduct  expected of them including standards with respect to disclosure
of conflicts of interest regarding any matter brought before  the  board
of  trustees.    SUCH CODE OF ETHICS SHALL BE IN COMPLIANCE WITH SECTION
EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
  S 4. Paragraph (a) of subdivision 4 of section 2851 of  the  education
law,  as  added  by chapter 4 of the laws of 1998, is amended to read as
follows:
  (a) A report of the progress of the charter school  in  achieving  the
educational  objectives  set  forth  in  the  charter. SUCH REPORT SHALL
INCLUDE  DISAGGREGATED  STUDENT  PERFORMANCE  DATA   FOR   ALL   STUDENT
SUBGROUPS.
  S  5.  Paragraphs  (c) and (d) of subdivision 2 of section 2852 of the
education law, paragraph (c) as amended and paragraph (d)  as  added  by
section 2 of part D-2 of chapter 57 of the laws of 2007, are amended and
two new paragraphs (e) and (f) are added to read as follows:

S. 1540                             3

  (c) granting the application is likely to improve student learning and
achievement  and  materially further the purposes set out in subdivision
two of section twenty-eight hundred fifty of this article; [and]
  (d)  in  a  school  district  where  the  total enrollment of resident
students attending charter schools in the base year is greater than five
percent of the total public school enrollment of the school district  in
the  base  year  [(i)] granting the application would have a significant
educational benefit to the students  expected  to  attend  the  proposed
charter  school [or (ii) the school district in which the charter school
will be located consents to such  application].  FOR  PURPOSES  OF  THIS
PARAGRAPH,  IN  A  CITY  HAVING A POPULATION OF ONE MILLION OR MORE, THE
SCHOOL DISTRICT SHALL BE THE COMMUNITY SCHOOL DISTRICT;
  (E) THE APPLICATION FOR THE CHARTER SCHOOL IS APPROVED BY THE BOARD OF
EDUCATION OF THE SCHOOL DISTRICT WHERE  THE  CHARTER  SCHOOL  IS  TO  BE
LOCATED; AND
  (F)  THE  CHARTER  ENTITY  SHALL NOT APPROVE AN APPLICATION THAT WOULD
HAVE THE EFFECT OF INCREASING THE RACIAL ISOLATION OF A SCHOOL DISTRICT.
  S 6. Subdivision 5-b of section 2852 of the education law, as added by
chapter 4 of the laws of 1998, is amended to read as follows:
  5-b. If the board of regents returns a proposed charter to the charter
entity pursuant to the provisions of subdivision five-a of this section,
such charter entity shall reconsider the proposed charter,  taking  into
consideration  the  comments and recommendation of the board of regents.
Thereafter, the charter entity shall resubmit the  proposed  charter  to
the  board  of  regents  with modifications, provided that the applicant
consents in writing to such modifications, resubmit the proposed charter
to the board of regents without modifications WITH  AN  EXPLANATION  WHY
THE  MODIFICATIONS  ARE NOT BEING MADE, or abandon the proposed charter.
The board of regents shall review each such resubmitted proposed charter
in  accordance  with  the  provisions  of  subdivision  five-a  of  this
section[;  provided,  however, that it shall be the duty of the board of
regents to approve and issue a proposed charter resubmitted by the char-
ter entity described in paragraph (b) of subdivision  three  of  section
twenty-eight hundred fifty-one of this article within thirty days of the
resubmission  of such proposed charter or such proposed charter shall be
deemed approved and issued at the expiration of such period].
  S 7. Subdivision 7 of section 2852 of the education law is amended  by
adding a new paragraph (c) to read as follows:
  (C)  WHEN  A  REVISION OF A CHARTER INVOLVES AN INCREASE IN ENROLLMENT
WHICH BRINGS TOTAL ENROLLMENT IN CHARTER SCHOOLS IN THE SCHOOL  DISTRICT
OF  LOCATION  ABOVE FIVE PERCENT THE REVISION SHALL BE DENIED UNLESS THE
SCHOOL DISTRICT OF LOCATION APPROVES THE REVISION OR  THE  RESIDENTS  OF
THE  SCHOOL  DISTRICT  APPROVE  THE REVISION THROUGH A REFERENDUM OF THE
ELIGIBLE VOTERS TO BE HELD IN CONJUNCTION WITH THE ANNUAL  BUDGET  VOTE.
FOR  PURPOSES  OF  THIS  PARAGRAPH  IN A CITY HAVING A POPULATION OF ONE
MILLION OR MORE THE SCHOOL DISTRICT OF LOCATION SHALL BE  THE  COMMUNITY
SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED.
  S  8. Subdivision 10 of section 2852 of the education law, as added by
section 3 of part D-2 of chapter 57 of the laws of 2007, is  amended  to
read as follows:
  10. Except in the case of a charter school formed by a school district
as  a  charter  entity pursuant to paragraph (a) of subdivision three of
section twenty-eight hundred fifty-one of this article, a charter school
formed by approval of the regents or by operation of  law  on  or  after
[March] JANUARY fifteenth in any school year shall not commence instruc-
tion until July of the second school year next following.

S. 1540                             4

  S  9.  Subdivision 2 of section 2853 of the education law, as added by
chapter 4 of the laws of 1998, is amended to read as follows:
  2.  The  board of regents and charter entity shall oversee each school
approved by such entity, and may visit, examine  into  and  inspect  any
charter  school,  including  the records of such school, under its over-
sight. Oversight by a charter entity and the board of regents  shall  be
sufficient  to  ensure that the charter school is in compliance with all
applicable laws, regulations and charter  provisions.    THE  DEPARTMENT
SHALL INCLUDE CHARTER SCHOOLS IN ANY REVIEW OR AUDIT OF STATE ASSESSMENT
ADMINISTRATION OR SCORING.
  S  10. Paragraph (a) of subdivision 3 of section 2853 of the education
law, as amended by chapter 101 of the laws of 2010, is amended  to  read
as follows:
  (a)  A  charter  school  may  be located in part of an existing public
school building, in space provided on a private work site, in  a  public
building or in any other suitable location, PROVIDED, HOWEVER, A CHARTER
SCHOOL  SHALL  NOT BE LOCATED IN ANY PART OF AN EXISTING SCHOOL BUILDING
WHEN SUCH SHARING WOULD IMPACT THE PUBLIC SCHOOL'S ABILITY TO  MEET  THE
CLASS  SIZE TARGETS ESTABLISHED PURSUANT TO SECTION TWO HUNDRED ELEVEN-D
OF THIS CHAPTER.   Provided, however, before a  charter  school  may  be
located in part of an existing public school building, the charter enti-
ty shall provide notice to the parents or guardians of the students then
enrolled in the existing school building and shall hold a public hearing
for purposes of discussing the location of the charter school. A charter
school may own, lease or rent its space.
  S 11. Subdivision 3 of section 2853 of the education law is amended by
adding two new paragraphs (e) and (f) to read as follows:
  (E)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CAPITAL FACILITY, OR
OTHER IMPROVEMENTS MADE IN PUBLIC SCHOOL BUILDINGS OR EQUIPMENT  WITH  A
PERIOD  OF  PROBABLE  USEFULNESS  OF  FIVE OR MORE YEARS, WITH PUBLIC OR
PRIVATE FUNDS, TO ACCOMMODATE CHARTER SCHOOLS, SHALL REQUIRE MATCHING OR
COMPARABLE IMPROVEMENTS BE MADE FOR OTHER DISTRICT  SCHOOLS  LOCATED  IN
THE SAME BUILDING.
  (F) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CONSTRUCTION OR CAPI-
TAL  IMPROVEMENT  MADE  IN ACCORDANCE WITH THIS ARTICLE SHALL BE MADE IN
ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT AND NINE
OF THE LABOR LAW.
  S 12. Paragraphs (c) and (e) of subdivision 1 of section 2854  of  the
education  law,  paragraph  (c) as amended by chapter 101 of the laws of
2010, and paragraph (e) as added by chapter 4 of the laws of  1998,  are
amended to read as follows:
  (c)  A  charter  school  shall be subject to the financial audits, the
audit procedures, and the audit requirements set forth  in  the  charter
and  [shall  be subject to audits of the comptroller of the state of New
York at his or her discretion] MAY BE SUBJECT TO  AUDITS  BY  THE  STATE
COMPTROLLER  OR  BY  THE CHARTER ENTITY.   Such procedures and standards
shall be consistent with generally accepted accounting and audit  stand-
ards.  Independent fiscal audits shall be required at least once annual-
ly.
  (e)  A  charter  school shall be subject to the provisions of articles
six and seven of the public officers law IN THE SAME  MANNER  AS  PUBLIC
SCHOOL DISTRICTS.
  S 13. Subdivision 1 of section 2854 of the education law is amended by
adding a new paragraph (g) to read as follows:
  (G)  A  CHARTER  SCHOOL  SHALL BE SUBJECT TO THE PROVISIONS OF SECTION
EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.

S. 1540                             5

  S 14. Subdivision 2 of section 2854 of the education law, as added  by
chapter  4  of  the  laws  of 1998, paragraphs (a) and (b) as amended by
chapter 101 of the laws of 2010, is amended to read as follows:
  2.  Admissions;  enrollment; students.   (a) A charter school shall be
nonsectarian in its programs, admission policies, employment  practices,
and  all other operations and shall not charge tuition or fees; provided
that a charter school may require the payment of fees on the same  basis
and  to  the same extent as other public schools. A charter school shall
not discriminate against any student, employee or any  other  person  on
the  basis  of  ethnicity, national origin, gender, or disability or any
other ground that would be unlawful if done by a  school.  Admission  of
students  shall  not  be  limited  on the basis of intellectual ability,
measures of achievement or aptitude, athletic ability, disability, race,
creed, gender, national origin, religion, or ancestry; provided,  howev-
er,  that  nothing  in  this  article  shall be construed to prevent the
establishment of  a  single-sex  charter  school  or  a  charter  school
designed to provide expanded learning opportunities for students at-risk
of  academic  failure or students with disabilities and English language
learners; and provided, further, that the charter school  shall  [demon-
strate good faith efforts to] attract and retain a comparable or greater
enrollment of students with disabilities, English language learners, and
students  who  are  eligible  applicants  for the free and reduced price
lunch program when compared to the enrollment figures for such  students
in  the  school  district  in which the charter school is located.  IF A
CHARTER SCHOOL IS NOT SUCCESSFUL IN ATTRACTING A COMPARABLE  OR  GREATER
ENROLLMENT  OF STUDENTS WITH DISABILITIES AND LIMITED ENGLISH PROFICIENT
STUDENTS AS COMPARED TO THE ENROLLMENT FIGURES FOR SUCH STUDENTS IN  THE
SCHOOL  DISTRICT  IN  WHICH  THE  CHARTER SCHOOL IS LOCATED SUCH CHARTER
SCHOOL SHALL PROVIDE THE CHARTERING ENTITY WITH A PLAN FOR IMPROVING THE
ENROLLMENT OF SUCH STUDENTS IN THE FOLLOWING  YEAR.  FAILURE  TO  COMPLY
WITH  THIS  REQUIREMENT  FOR  TWO  CONSECUTIVE YEARS SHALL BE SUBJECT TO
REVOCATION IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION  TWENTY-EIGHT
HUNDRED FIFTY-FIVE OF THIS ARTICLE. A charter shall not be issued to any
school that would be wholly or in part under the control or direction of
any  religious  denomination,  or  in  which any denominational tenet or
doctrine would be taught.
  (b) Any child who is qualified under the laws of this state for admis-
sion to a public school is qualified for admission to a charter  school.
Applications  for  admission to a charter school shall be submitted on a
uniform application form created by the department  and  shall  be  made
available  by  a charter school in languages predominately spoken in the
community in which such charter school  is  located.  The  school  shall
enroll  each  eligible  student  who submits a timely application by the
first day of April each year, unless the number of applications  exceeds
the  capacity  of  the  grade level or building. In such cases, students
shall be accepted from among applicants by a random  selection  process,
provided,  however,  that  an enrollment preference shall be provided to
pupils WHEN THE CHARTER SCHOOL IS LOCATED WITHIN ONE MILE OF THE PUPILS'
RESIDENCE, PUPILS returning to the charter school in the second  or  any
subsequent  year of operation and pupils residing in the school district
in which the charter school is located, and siblings of  pupils  already
enrolled  in the charter school AND STUDENTS ON FREE LUNCH, AND STUDENTS
WITH DISABILITIES, AND STUDENTS WITH LIMITED ENGLISH PROFICIENCY.    The
commissioner  shall  establish  regulations  to  require that the random
selection process conducted pursuant to this paragraph be performed in a
transparent and equitable manner and to require that the time and  place

S. 1540                             6

of  the  random  selection  process be publicized in a manner consistent
with the requirements of section one hundred four of the public officers
law and be open to the public. For the purposes of  this  paragraph  and
paragraph  (a)  of  this  subdivision,  the school district in which the
charter school is located shall mean, for the city  school  district  of
the city of New York, the community district in which the charter school
is  located.    THE  CHARTER  ENTITY  IS  RESPONSIBLE  FOR  ENSURING THE
SELECTION PROCESS IS CONDUCTED IN ACCORDANCE WITH THIS PARAGRAPH. IF THE
CHARTER ENTITY DETERMINES THE PROCESS IS NOT  IN  COMPLIANCE  WITH  THIS
PARAGRAPH, THE CHARTER ENTITY SHALL CONDUCT THE PROCESS.
  (c) A charter school shall serve one or more of the grades one through
twelve,  and  shall  limit  admission  to pupils within the grade levels
served. Nothing herein shall prohibit a charter school from establishing
a kindergarten program.
  (d) A student may withdraw from a  charter  school  at  any  time  and
enroll in a public school. A CHARTER SCHOOL MUST PROVIDE A REPORT TO THE
CHARTERING  ENTITY  EACH  YEAR INDICATING THE NUMBER OF STUDENTS LEAVING
THE CHARTER SCHOOL, THE MONTHS IN WHICH THE STUDENTS LEAVE  THE  SCHOOL,
THE  REASON  THE STUDENTS LEAVE THE SCHOOL AND THE SCHOOL THE STUDENT IS
CURRENTLY ATTENDING. A  charter  school  may  refuse  admission  to  any
student  who  has  been expelled or suspended from a public school until
the period of  suspension  or  expulsion  from  the  public  school  has
expired, consistent with the requirements of due process.
  S 15. Paragraphs (b-1), (c) and (c-1) of subdivision 3 of section 2854
of  the  education  law, paragraph (b-1) as amended by section 6 of part
D-2 of chapter 57 of the laws of 2007, and paragraphs (c) and  (c-1)  as
added by chapter 4 of the laws of 1998, are amended to read as follows:
  (b-1) The employees of a charter school [that is not a conversion from
an  existing  public  school] shall [not] be deemed members of [any] THE
existing collective bargaining unit representing employees of the school
district in which the charter school is located, and the charter  school
and  its  employees  shall  [not]  be subject to any existing collective
bargaining agreement between the  school  district  and  its  employees.
[Provided,  however,  that  (i) if the student enrollment of the charter
school on the first day on which the charter  school  commences  student
instruction  exceeds  two  hundred fifty or if the average daily student
enrollment of such school exceeds two  hundred  fifty  students  at  any
point  during  the  first  two  years after the charter school commences
student instruction, all employees of the school who  are  eligible  for
representation  under article fourteen of the civil service law shall be
deemed to be represented in a separate negotiating unit at  the  charter
school  by  the same employee organization, if any, that represents like
employees in the  school  district  in  which  such  charter  school  is
located;  (ii)  the provisions of subparagraph (i) of this paragraph may
be waived in up to ten charters issued  on  the  recommendation  of  the
charter  entity  set  forth  in  paragraph  (b)  of subdivision three of
section twenty-eight  hundred  fifty-one  of  this  article;  (iii)  the
provisions of subparagraph (i) of this paragraph shall not be applicable
to  the  renewal  or  extension  of  a charter; and (iv) nothing in this
sentence shall be construed to subject a charter school subject  to  the
provisions of this paragraph or its employees to any collective bargain-
ing agreement between any public school district and its employees or to
make  the  employees of such charter school part of any negotiating unit
at such school district. The charter school may, in its sole discretion,
choose whether or not to offer the  terms  of  any  existing  collective
bargaining  to  school employees.] PROVIDED, HOWEVER, THAT A MAJORITY OF

S. 1540                             7

THE MEMBERS OF A NEGOTIATING UNIT WITHIN A CHARTER SCHOOL MAY MODIFY, IN
WRITING, A COLLECTIVE BARGAINING AGREEMENT FOR THE PURPOSES  OF  EMPLOY-
MENT IN THE CHARTER SCHOOL WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF
THE CHARTER SCHOOL.
  (c)  The employees of the charter school [may] SHALL be deemed employ-
ees of the local school district for the purpose of providing retirement
benefits, including membership in the teachers'  retirement  system  and
other retirement systems open to employees of public schools. The finan-
cial  contributions for such benefits shall be the responsibility of the
charter school and the school's employees. The commissioner, in  consul-
tation  with the comptroller, shall develop regulations to implement the
provisions of this paragraph in a manner that allows charter schools  to
provide retirement benefits to its employees in the same manner as other
public school employees.
  (c-1)  Reasonable  access.  (i) If employees of the charter school are
not represented, any charter school chartered pursuant to  this  article
must  afford  reasonable  access to any employee organization during the
reasonable proximate period before any representation question is raised
IN THE SAME MANNER AS ANY PUBLIC EMPLOYER; or
  (ii) If the  employee  organization  is  a  challenging  organization,
reasonable access must be provided to any organization seeking to repre-
sent employees beginning with a date reasonably proximate to a challenge
period. Reasonableness is defined, at a minimum, as access equal to that
provided to the incumbent organization.
  S  16.  Subdivision 1 of section 2855 of the education law, as amended
by chapter 101 of the laws of 2010, is amended to read as follows:
  1. The charter entity, or the board of regents, [may] SHALL  terminate
a charter upon any of the following grounds:
  (a)  When  a  charter  school's outcome on student assessment measures
adopted by the board of regents falls below the level that  would  allow
the  commissioner  to  revoke the registration of another public school,
and student achievement on such measures [has not shown improvement] HAS
NOT MET ANNUAL YEARLY PROGRESS over the preceding three school years;
  (b) Serious violations of law;
  (c) Material and  substantial  violation  of  the  charter,  including
fiscal mismanagement AND FAILURE TO MEET STUDENT PERFORMANCE TARGETS;
  (d)  When  the public employment relations board makes a determination
that the charter school demonstrates a practice and pattern of egregious
and intentional violations of subdivision one  of  section  two  hundred
nine-a of the civil service law involving interference with or discrimi-
nation  against  employee  rights  under  article  fourteen of the civil
service law; [or]
  (e) Repeated failure to comply with the requirement to meet or  exceed
enrollment  and retention targets of students with disabilities, English
language learners, and students who are eligible applicants for the free
and reduced price lunch program pursuant to targets established  by  the
board of regents or the board of trustees of the state university of New
York,  as applicable. Provided, however, if no grounds for terminating a
charter are established pursuant to this section other than pursuant  to
this  paragraph,  and  the  charter school demonstrates that it has made
extensive  efforts  to  recruit  and  retain  such  students,  including
outreach  to parents and families in the surrounding communities, widely
publicizing the lottery for such school,  and  efforts  to  academically
support such students in such charter school, then the charter entity or
board of regents may retain such charter[.]; OR

S. 1540                             8

  (F)  FAILURE  TO ENROLL A COMPARABLE PERCENTAGE OF STUDENTS QUALIFYING
FOR FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE LEARNERS
FOR TWO CONSECUTIVE YEARS.
  S  17.  Subdivision 1 of section 2856 of the education law, as amended
by chapter 378 of the laws of 2007, paragraph (a) as amended by  section
21  of  part  A of chapter 58 of the laws of 2011, is amended to read as
follows:
  1. (a) The enrollment of students attending charter schools  shall  be
included  in  the enrollment, attendance, membership and, if applicable,
count of students with disabilities of the school district in which  the
pupil  resides.  The  charter  school  shall report all such data to the
school districts of residence in a timely manner. Each  school  district
shall  report  such  enrollment,  attendance  and count of students with
disabilities to the department. The school district of  residence  shall
pay  directly  to  the  charter  school for each student enrolled in the
charter school who resides in the school  district  the  charter  school
basic tuition, which shall be:
  (i)  for school years prior to the two thousand nine--two thousand ten
school year and for school years following the two thousand  twelve--two
thousand thirteen school year, an amount equal to one hundred percent of
the  amount  calculated  pursuant  to  paragraph f of subdivision one of
section thirty-six hundred two of this chapter for the  school  district
for  the  year prior to the base year increased by the percentage change
in the state total approved operating  expense  calculated  pursuant  to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter from two years prior to the base year to the base year;
  (ii)  for  the  two  thousand  nine--two thousand ten school year, the
charter school basic  tuition  shall  be  the  amount  payable  by  such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;
  (iii)  for the two thousand ten--two thousand eleven through two thou-
sand twelve--two thousand thirteen  school  years,  the  charter  school
basic  tuition  shall be the basic tuition computed for the two thousand
ten--two thousand eleven school  year  pursuant  to  the  provisions  of
subparagraph (i) of this paragraph.
  (A-1) FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR
AND  EACH  SCHOOL  YEAR  THEREAFTER  THE  STATE  SHALL  REIMBURSE SCHOOL
DISTRICTS FOR THE LOCAL SHARE OF THE CHARTER SCHOOL TUITION  PAYMENT  OF
ANY  STUDENTS ATTENDING A CHARTER SCHOOL IN THE JUNE PAYMENT REQUIRED BY
SECTION THREE THOUSAND SIX HUNDRED NINE-A OF THIS  CHAPTER.  SUCH  LOCAL
SHARE  SHALL  BE CALCULATED BY DEDUCTING FROM THE CHARTER SCHOOL TUITION
PAYMENT THE PER PUPIL FOUNDATION AID AMOUNT ATTRIBUTABLE TO SUCH PUPIL.
  (b) The school district shall also pay directly to the charter  school
any  federal  or  state  aid attributable to a student with a disability
attending charter school in proportion to the level of services for such
student with a disability that the charter school provides  directly  or
indirectly.  Notwithstanding  anything  in this section to the contrary,
amounts payable pursuant to this subdivision from state or  local  funds
may be reduced pursuant to an agreement between the school and the char-
ter  entity  set  forth  in  the charter. Payments made pursuant to this
subdivision shall be made by the school district  in  six  substantially
equal installments each year beginning on the first business day of July
and  every two months thereafter. Amounts payable under this subdivision
shall be determined by the commissioner. Amounts payable  to  a  charter
school  in its first year of operation shall be based on the projections
of initial-year enrollment set forth in the charter until actual enroll-

S. 1540                             9

ment data is reported to the school district by the charter school. SUCH
ACTUAL ENROLLMENT SHALL BE REPORTED TO THE SCHOOL DISTRICT PRIOR TO EACH
PAYMENT FOLLOWING THE INITIAL JULY  PAYMENT  WHICH  SHALL  BE  BASED  ON
PROJECTED  ENROLLMENT.  Such  projections  shall  be reconciled with the
actual enrollment as actual enrollment data is so reported  and  at  the
end  of  the  school's  first year of operation and each subsequent year
based on a final report of actual enrollment by the charter school,  and
any necessary adjustments resulting from such final report shall be made
to payments during the school's following year of operation.
  (c)  Notwithstanding  any  other  provision of this subdivision to the
contrary, payment of the federal aid attributable to a  student  with  a
disability  attending  a charter school shall be made in accordance with
the requirements of section 8065-a of title twenty of the United  States
code  and sections 76.785-76.799 and 300.209 of title thirty-four of the
code of federal regulations.
  S 18. Subdivisions 2 and 3 of  section  2857  of  the  education  law,
subdivision  2  as amended and paragraph (a-1) of subdivision 3 as added
by chapter 101 of the laws of 2010  and  subdivision  3  as  amended  by
section  7 of part D-2 of chapter 57 of the laws of 2007, are amended to
read as follows:
  2. Each charter school shall submit to the charter entity and  to  the
board  of regents an annual report. Such report shall be issued no later
than the first day of August of each year for the preceding school  year
AND  PROVIDED TO THE SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED
FOR DISPLAY ON THE SCHOOL DISTRICT WEBSITE, and shall be  made  publicly
available  by  such  date  and  shall  be posted on the charter school's
website. The annual report shall be in such form as shall be  prescribed
by the commissioner and shall include at least the following components:
  (a)  a charter school report card, which shall include measures of the
comparative academic and fiscal performance of the school, as prescribed
by the commissioner in regulations adopted for such purpose. Such  meas-
ures  shall  include,  but  not be limited to, graduation rates, dropout
rates, performance of students on standardized tests  DISAGGREGATED  FOR
SUB-GROUPS,  college  entry rates, total spending per pupil and adminis-
trative spending per pupil.   Such measures  shall  be  presented  in  a
format that is easily comparable to similar public schools. In addition,
the charter school shall ensure that such information is easily accessi-
ble to the community including making it publicly available by transmit-
ting  it to local newspapers of general circulation and making it avail-
able for distribution at board of trustee meetings.
  (b) discussion of the progress made towards achievement of  the  goals
set forth in the charter.
  (c)  a  certified  financial  statement  setting forth, by appropriate
categories, the revenues FROM ALL SOURCES and expenditures INCLUDING THE
SALARY OF THE SCHOOL LEADER AND ANY OTHER  SALARIES  IN  EXCESS  OF  THE
REPORTING  REQUIREMENTS FOR PUBLIC SCHOOL DISTRICTS CONTAINED IN SECTION
SIXTEEN HUNDRED EIGHT OF THIS CHAPTER AND CONTRACTS WITH CONSULTANTS AND
VENDORS for the preceding school year, including  a  copy  of  the  most
recent independent fiscal audit of the school and any audit conducted by
the comptroller of the state of New York.
  (d)  efforts  taken by the charter school in the existing school year,
and a plan for efforts to be taken in the  succeeding  school  year,  to
meet  or  exceed  enrollment  and  retention targets set by the board of
regents or the board of trustees of the state university of New York, as
applicable, of students with disabilities,  English  language  learners,
and  students who are eligible applicants for the free and reduced price

S. 1540                            10

lunch program established pursuant to paragraph (e) of subdivision  four
of section twenty-eight hundred fifty-one of this article.
  3. The board of regents shall report annually BY DECEMBER FIRST to the
governor,  the temporary president of the senate, and the speaker of the
assembly AND THE PUBLIC the following information:
  (a) The number, distribution, and a brief description of  new  charter
schools established during the preceding year;
  (a-1) A list including the number of charter schools closed during the
preceding  year, and a brief description of the reasons therefor includ-
ing, but not limited to, non-renewal of the charter or revocation of the
charter;
  (b) The department's assessment of the current and projected  program-
matic  and  fiscal impact of charter schools on the delivery of services
by school districts;
  (c) The academic progress of students attending  charter  schools,  as
measured  against  comparable  public and nonpublic schools with similar
student population characteristics [wherever practicable];
  (d) A list of all actions taken by a charter entity on charter  appli-
cation  and the rationale for the renewal or revocation of any charters;
and
  (e) Any other information regarding charter schools that the board  of
regents deems necessary INCLUDING INFORMATION ON BEST PRACTICES OF CHAR-
TER SCHOOLS THAT IMPROVE STUDENT PERFORMANCE.
  The  format  for this annual report shall be developed in consultation
with representatives of school districts and charter school officials.
  S 19. Subparagraph (v) of paragraph a of subdivision 7 of section 1608
of the education law, as amended by section 4 of part A of chapter 97 of
the laws of 2011, is amended and a new subparagraph  (vi)  is  added  to
read as follows:
  (v) the projected amount of the unappropriated unreserved fund balance
that  will  be retained if the proposed budget is adopted, the projected
amount of the reserved fund balance, the projected amount of the  appro-
priated  fund  balance,  the  percentage of the proposed budget that the
unappropriated unreserved fund balance represents, the  actual  unappro-
priated  unreserved  fund balance retained in the school district budget
for the preceding school year, and the percentage of the school district
budget for the preceding school  year  that  the  actual  unappropriated
unreserved fund balance represents[.]; AND
  (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
THE NEXT SCHOOL YEAR.
  S 20. Subparagraph (v) of paragraph a of subdivision 7 of section 1716
of the education law, as amended by section 5 of part A of chapter 97 of
the  laws  of  2011,  is amended and a new subparagraph (vi) is added to
read as follows:
  (v) the projected amount of the unappropriated unreserved fund balance
that will be retained if the proposed budget is adopted,  the  projected
amount  of the reserved fund balance, the projected amount of the appro-
priated fund balance, the percentage of the  proposed  budget  that  the
unappropriated  unreserved  fund balance represents, the actual unappro-
priated unreserved fund balance retained in the school  district  budget
for the preceding school year, and the percentage of the school district
budget  for  the  preceding  school  year that the actual unappropriated
unreserved fund balance represents[.]; AND
  (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
THE NEXT SCHOOL YEAR.

S. 1540                            11

  S 21. Paragraph t of subdivision 1 of section 3602  of  the  education
law is amended by adding a new closing paragraph to read as follows:
  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  LAW  TO  THE CONTRARY, IN
COMPUTING APPROVED OPERATING EXPENSE PURSUANT TO THIS PARAGRAPH FOR CITY
SCHOOL DISTRICTS OF THOSE CITIES HAVING A POPULATION IN  EXCESS  OF  ONE
HUNDRED  TWENTY-FIVE THOUSAND BUT LESS THAN ONE MILLION; AN AMOUNT EQUAL
TO (I) THE AMOUNT COMPUTED FOR THE SCHOOL DISTRICT FOR THE TWO  THOUSAND
SIX--TWO THOUSAND SEVEN SCHOOL YEAR PURSUANT TO FORMER SUBDIVISION THIR-
TY-SEVEN  OF THIS SECTION AS THIS SECTION EXISTED ON JUNE THIRTIETH, TWO
THOUSAND SEVEN, (II) THE STATE FUNDS WHICH SUCH DISTRICT RECEIVED IN THE
TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR  MAGNET  SCHOOL
GRANTS  TO PUBLIC SCHOOLS, AND (III) THE STATE FUNDS WHICH SUCH DISTRICT
RECEIVED IN THE TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR
TEACHER  SUPPORT,  SHALL BE ACCOUNTED FOR IN THE SAME WAY AS STATE FUNDS
RECEIVED FOR SUCH PURPOSE IN THE TWO THOUSAND  SIX--TWO  THOUSAND  SEVEN
SCHOOL YEAR.
  S  22. This act shall take effect immediately; provided, however, that
the amendments to subdivision 1 of section 2856  of  the  education  law
made by section seventeen of this act shall not affect the expiration of
such  subdivision  and shall expire therewith; provided further that the
amendments to paragraph a of subdivision 7 of section 1608 of the educa-
tion law made by section nineteen of this act shall not affect the expi-
ration of such  paragraph  and  shall  expire  therewith;  and  provided
further  that  the amendments to paragraph a of subdivision 7 of section
1716 of the education law made by section twenty of this act  shall  not
affect the expiration of such paragraph and shall expire therewith.

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