S T A T E   O F   N E W   Y O R K
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                                  5257

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 14, 2011
                               ___________

Introduced by M. of A. HOOPER -- Multi-Sponsored by -- M. of A. SWEENEY,
  ZEBROWSKI -- read once and referred to the Committee on Education

AN  ACT  to  amend the education law, the state finance law and the real
  property tax law, in relation to charter schools; and to repeal  para-
  graph  (b-1)  of  subdivision  3 of section 2854 of the education law,
  relating to collective bargaining

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. 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 three new paragraphs (e), (f) and (g) are added to read as follows:
  (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[.];
  (E) THE APPLICANT HAS PRESENTED  AN  ECONOMIC  IMPACT  STUDY  FOR  THE
SCHOOL DISTRICT AFFECTED;
  (F)  THE  APPLICANT  HAS PRESENTED A FINANCIAL IMPACT STATEMENT ON HOW
THE LOCAL SCHOOL DISTRICT WILL BE IMPACTED; AND
  (G) THE APPLICANT HAS CONDUCTED NO LESS  THAN  THREE  PUBLIC  HEARINGS
PRIOR TO APPROVAL.
  S  2.  The  education law is amended by adding a new section 2852-a to
read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06872-02-1

              

A. 5257                             2

  S 2852-A. PROCEDURES FOR LOCAL APPROVAL OF CHARTER SCHOOLS IN  CERTAIN
SCHOOL DISTRICTS. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE TO
THE CONTRARY, PRIOR TO THE ESTABLISHMENT OF A CHARTER SCHOOL PROPOSED IN
A  SCHOOL  DISTRICT THAT IS SUBJECT TO SECTION NINETEEN HUNDRED SIX, TWO
THOUSAND TWENTY-TWO OR TWENTY-SIX HUNDRED ONE-A OF THIS TITLE, A CHARTER
ENTITY  SHALL  SUBMIT  TO  THE  BOARD  OF  EDUCATION OF SUCH DISTRICT AN
APPROVED CHARTER APPLICATION. SUCH CHARTER APPLICATION SHALL  BE  PLACED
BEFORE  THE  VOTERS OF THE SCHOOL DISTRICT, FOR THEIR APPROVAL OR DISAP-
PROVAL, PURSUANT TO THE PROVISIONS OF SECTION NINETEEN HUNDRED SIX,  TWO
THOUSAND  TWENTY-TWO  OR  TWENTY-SIX  HUNDRED  ONE-A OF THIS TITLE. SUCH
CHARTER APPLICATION, IF PROPOSED FOR THE FOLLOWING  SCHOOL  YEAR,  SHALL
INCLUDE  A PROPOSED CHARTER SCHOOL BUDGET, AS DEFINED IN SECTION TWENTY-
EIGHT HUNDRED FIFTY-TWO-B OF THIS ARTICLE. IF SUCH CHARTER SCHOOL APPLI-
CATION IS NOT APPROVED BY A MAJORITY OF THE VOTERS IN A SCHOOL DISTRICT,
THAT CHARTER APPLICATION  SHALL  BE  DEEMED  DISAPPROVED  AND  SHALL  BE
RETURNED  TO  THE CHARTER ENTITY THAT APPROVED SUCH APPLICATION; IF SUCH
CHARTER ENTITY APPROVES THE APPLICATION FOR A SECOND TIME, SUCH APPLICA-
TION SHALL NOT BE RESUBMITTED TO THE VOTERS UNTIL THE  FOLLOWING  SCHOOL
YEAR.  IF  SUCH  CHARTER  APPLICATION IS APPROVED BY THE SCHOOL DISTRICT
VOTERS AND IS ESTABLISHED BY THE APPLICANT, THE CHARTER SCHOOL SHALL  BE
SUBJECT TO ANNUAL SCHOOL BUDGET VOTES AS DEFINED IN SECTION TWENTY-EIGHT
HUNDRED FIFTY-TWO-B OF THIS ARTICLE.
  S  3.  The  education law is amended by adding a new section 2852-b to
read as follows:
  S 2852-B. PROCEDURES FOR ADOPTION OF CHARTER SCHOOL BUDGETS IN CERTAIN
SCHOOL DISTRICTS. 1. A CHARTER  SCHOOL  THAT  IS  LOCATED  IN  A  SCHOOL
DISTRICT  SUBJECT TO SECTIONS NINETEEN HUNDRED SIX, TWO THOUSAND TWENTY-
TWO OR TWENTY-SIX HUNDRED ONE-A OF THIS TITLE,  SHALL  PROVIDE  FOR  THE
SUBMISSION  OF  A  BUDGET  FOR  APPROVAL  OF  THE VOTERS PURSUANT TO THE
PROVISIONS OF THIS SECTION.
  2. THE BOARD OF EDUCATION SHALL CONDUCT ALL ANNUAL AND SPECIAL  SCHOOL
DISTRICT MEETINGS FOR THE PURPOSE OF ADOPTING A CHARTER SCHOOL BUDGET IN
THE  SAME  MANNER AS A UNION FREE SCHOOL DISTRICT IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE FORTY-ONE  OF  THIS  TITLE,  EXCEPT  AS  OTHERWISE
PROVIDED  BY  THIS SECTION. THE ANNUAL MEETING AND ELECTION OF EACH SUCH
SCHOOL DISTRICT FOR THE PURPOSE OF  ADOPTING  A  CHARTER  SCHOOL  BUDGET
SHALL BE HELD ON THE THIRD TUESDAY OF MAY IN EACH YEAR, PROVIDED, HOWEV-
ER,  THAT  SUCH  ANNUAL MEETING AND ELECTION SHALL BE HELD ON THE SECOND
TUESDAY IN MAY IF THE COMMISSIONER AT THE  REQUEST  OF  A  LOCAL  SCHOOL
BOARD  CERTIFIES  NO  LATER  THAN  MARCH  FIRST THAT SUCH ELECTION WOULD
CONFLICT WITH RELIGIOUS OBSERVANCES. THE PROVISIONS OF THIS ARTICLE, AND
WHERE APPLICABLE SUBDIVISIONS NINE AND  NINE-A  OF  SECTION  TWENTY-FIVE
HUNDRED  TWO OF THIS TITLE, GOVERNING THE QUALIFICATION AND REGISTRATION
OF VOTERS, AND PROCEDURES FOR THE NOMINATION AND ELECTION OF MEMBERS  OF
THE  BOARD  OF  EDUCATION  SHALL CONTINUE TO APPLY, AND SHALL GOVERN THE
QUALIFICATION AND REGISTRATION OF  VOTERS  AND  VOTING  PROCEDURES  WITH
RESPECT TO THE ADOPTION OF A CHARTER SCHOOL BUDGET.
  3.  THE  CHARTER SCHOOL SHALL PREPARE A PROPOSED CHARTER SCHOOL BUDGET
FOR THE ENSUING YEAR IN ACCORDANCE WITH THE PROVISIONS OF SECTION SEVEN-
TEEN HUNDRED SIXTEEN OF THIS TITLE, INCLUDING ALL PROVISIONS RELATING TO
REQUIRED NOTICES AND APPENDICES TO THE  STATEMENT  OF  EXPENDITURES.  NO
CHARTER  SCHOOL  SHALL  INCUR  A  LIABILITY  EXCEPT AS AUTHORIZED BY THE
PROVISIONS OF SECTION SEVENTEEN HUNDRED EIGHTEEN  OF  THIS  TITLE.  SUCH
PROPOSED BUDGET SHALL BE PRESENTED IN THREE COMPONENTS: A PROGRAM COMPO-
NENT, A CAPITAL COMPONENT AND AN ADMINISTRATIVE COMPONENT WHICH SHALL BE
SEPARATELY DELINEATED IN ACCORDANCE WITH REGULATIONS OF THE COMMISSIONER

A. 5257                             3

AFTER  CONSULTATION  WITH LOCAL SCHOOL DISTRICT OFFICIALS.  THE ADMINIS-
TRATIVE COMPONENT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, OFFICE  AND
ADMINISTRATIVE EXPENSES, TRAVELING EXPENSES AND SALARIES AND BENEFITS OF
ALL  CHARTER  SCHOOL ADMINISTRATORS AND SUPERVISORS WHO SPEND A MAJORITY
OF THEIR TIME PERFORMING ADMINISTRATIVE OR SUPERVISORY DUTIES,  ANY  AND
ALL  EXPENDITURES  ASSOCIATED  WITH  THE OPERATION OF THE CHARTER SCHOOL
INCLUDING THE COSTS RELATED TO GENERAL ADMINISTRATION, THE SCHOOL  BUSI-
NESS  OFFICE,  CONSULTING  COSTS  NOT DIRECTLY RELATED TO DIRECT STUDENT
SERVICES AND PROGRAMS, PLANNING AND ALL OTHER ADMINISTRATIVE ACTIVITIES;
AND SHALL INCLUDE AN ACCOUNTING OF THE NET REVENUES OR PROFITS THAT HAVE
BEEN REALIZED BY THE CHARTER SCHOOL, OR ITS PARENT  CORPORATION,  DURING
ITS  OPERATION IN THE DISTRICT. THE PROGRAM COMPONENT SHALL INCLUDE, BUT
NEED NOT BE LIMITED TO, ALL PROGRAM EXPENDITURES OF THE CHARTER  SCHOOL,
INCLUDING  THE SALARIES AND BENEFITS OF TEACHERS AND ANY SCHOOL ADMINIS-
TRATORS OR SUPERVISORS WHO SPEND A MAJORITY  OF  THEIR  TIME  PERFORMING
TEACHING  DUTIES,  AND  ALL  TRANSPORTATION  AND OPERATING EXPENSES. THE
CAPITAL COMPONENT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, ALL  TRANS-
PORTATION CAPITAL, DEBT SERVICE, AND LEASE EXPENDITURES; COSTS RESULTING
FROM  JUDGMENTS  IN  TAX CERTIORARI PROCEEDINGS OR THE PAYMENT OF AWARDS
FROM COURT JUDGMENTS, ADMINISTRATIVE ORDERS OR  SETTLED  OR  COMPROMISED
CLAIMS.
  4. IN THE EVENT THE QUALIFIED VOTERS OF THE DISTRICT REJECT THE BUDGET
PROPOSED  PURSUANT  TO  SUBDIVISION  THREE  OF THIS SECTION, THE CHARTER
SCHOOL MAY PROPOSE TO THE VOTERS A REVISED BUDGET OR MAY ADOPT A CONTIN-
GENCY BUDGET PURSUANT TO SUBDIVISION FIVE OF THIS SECTION  AND  SUBDIVI-
SION  FIVE OF SECTION TWO THOUSAND TWENTY-TWO OF THIS TITLE. THE CHARTER
SCHOOL BUDGET FOR ANY SCHOOL YEAR, OR ANY PART OF  SUCH  BUDGET  OR  ANY
PROPOSITIONS  INVOLVING  THE  EXPENDITURE  OF MONEY FOR SUCH SCHOOL YEAR
SHALL NOT BE SUBMITTED FOR A VOTE OF  THE  QUALIFIED  VOTERS  MORE  THAN
TWICE.  IN THE EVENT THE QUALIFIED VOTERS REJECT THE RESUBMITTED BUDGET,
THE BOARD SHALL ADOPT A CONTINGENCY BUDGET IN ACCORDANCE  WITH  SUBDIVI-
SION  FIVE  OF THIS SECTION AND SUBDIVISION FIVE OF SECTION TWO THOUSAND
TWENTY-TWO OF THIS TITLE.
  5. IF THE QUALIFIED VOTERS FAIL OR REFUSE TO VOTE THE SUM ESTIMATED TO
BE NECESSARY  FOR  TEACHERS'  SALARIES  AND  OTHER  ORDINARY  CONTINGENT
EXPENSES, THE CHARTER SCHOOL SHALL ADOPT A CONTINGENCY BUDGET IN ACCORD-
ANCE  WITH  THIS  SUBDIVISION. SUCH CONTINGENCY BUDGET SHALL INCLUDE THE
SUM DETERMINED BY THE BOARD TO BE NECESSARY FOR:
  (A) TEACHERS' SALARIES;
  (B) ITEMS OF EXPENSE NECESSARY TO MAINTAIN THE CHARTER SCHOOL'S EDUCA-
TIONAL PROGRAMS, PRESERVE THE PROPERTY OF THE DISTRICT  OR  PROTECT  THE
HEALTH  AND SAFETY OF STUDENTS AND STAFF, INCLUDING, BUT NOT LIMITED TO,
SUPPORT SERVICES, PUPIL PERSONNEL SERVICES, THE NECESSARY  SALARIES  FOR
THE   NECESSARY   NUMBER  OF  NON-TEACHING  EMPLOYEES,  NECESSARY  LEGAL
EXPENSES, WATER AND UTILITY CHARGES, INSTRUCTIONAL SUPPLIES  FOR  TEACH-
ERS'  USE,  EMERGENCY  REPAIRS,  TEMPORARY RENTAL OF ESSENTIAL CLASSROOM
FACILITIES, AND EXPENDITURES NECESSARY TO ADVISE SCHOOL DISTRICT  VOTERS
CONCERNING SCHOOL MATTERS;
  (C) EXPENSES INCURRED FOR INTERSCHOOL ATHLETICS, FIELD TRIPS AND OTHER
EXTRACURRICULAR ACTIVITIES; AND
  (D)  ANY OTHER ITEM OF EXPENSE DETERMINED BY THE COMMISSIONER TO BE AN
ORDINARY CONTINGENT EXPENSE IN ANY SCHOOL DISTRICT.
  6. THE COMMISSIONER SHALL DETERMINE APPEALS RAISING  QUESTIONS  AS  TO
WHAT  ITEMS  OF  EXPENDITURE OR ORDINARY CONTINGENT EXPENSES PURSUANT TO
SUBDIVISION FIVE OF THIS SECTION IN ACCORDANCE WITH SECTIONS  TWO  THOU-
SAND TWENTY-FOUR AND THREE HUNDRED TEN OF THIS CHAPTER.

A. 5257                             4

  S 4. Paragraph (a) of subdivision 2 and paragraph (b) of subdivision 3
of  section 2854 of the education law, paragraph (a) of subdivision 2 as
amended by chapter 101 of the laws of 2010 and paragraph (b) of subdivi-
sion 3 as added by chapter 4 of the laws of 1998, are amended to read as
follows:
  (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, however, 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  demonstrate  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. A charter shall not be issued to any school that would be whol-
ly  or  in  part under the control or direction of any religious denomi-
nation, or in which  any  denominational  tenet  or  doctrine  would  be
taught;  PROVIDED FURTHER, HOWEVER, THAT IN NO CASE SHALL THE ENROLLMENT
IN CHARTER SCHOOLS EXCEED MORE THAN FIVE PERCENT  OF  THE  TOTAL  PUBLIC
SCHOOL  ENROLLMENT  OF SUCH SCHOOL DISTRICT UNLESS THE CHARTERS FOR SUCH
CHARTER SCHOOLS ARE APPROVED BY THE BOARD OF EDUCATION  OF  SUCH  SCHOOL
DISTRICT.
  (b)  The school employees of a charter school [that has been converted
from an existing public school]  who  are  eligible  for  representation
under  article  fourteen  of the civil service law shall be deemed to be
included within the negotiating unit containing  like  titles  or  posi-
tions,  if  any, for the school district in which such charter school is
located and shall be subject  to  the  collective  bargaining  agreement
covering  that school district negotiating unit; provided, however, that
a majority of the members of a negotiating unit within a charter  school
may  modify,  in  writing,  a  collective  bargaining  agreement for the
purposes of employment in the charter school with the  approval  of  the
board of trustees of the charter school.
  S 5. Paragraph (b-1) of subdivision 3 of section 2854 of the education
law is REPEALED.
  S  6.  Section 2856 of the education law, as added by chapter 4 of the
laws of 1998, and subdivision 1 as amended by chapter 378 of the laws of
2007, paragraph (a) of subdivision 1 as amended by section 12 of part  A
of chapter 57 of the laws of 2009, is amended to read as follows:
  S  2856.  Financing  of  charter schools.   1.   (a) The enrollment of
students attending charter schools shall NOT be included in the  enroll-
ment,  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] DEPARTMENT in a timely manner. [Each  school  district  shall

A. 5257                             5

report  such enrollment, attendance and count of students with disabili-
ties to the department.] The [school district of  residence]  DEPARTMENT
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 an amount equal to one hundred] FOR
GRADES  KINDERGARTEN  THROUGH  FOUR,  AN  AMOUNT  EQUAL  TO  EIGHTY-FIVE
PERCENT,  FOR  GRADES FIVE THROUGH EIGHT, AN AMOUNT EQUAL TO NINETY-FIVE
PERCENT AND FOR GRADES NINE  THROUGH  TWELVE  AN  AMOUNT  EQUAL  TO  ONE
HUNDRED FIVE percent of the amount calculated pursuant to paragraph f of
subdivision  one  of  section thirty-six hundred two of this chapter for
the STUDENT'S 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; provided, however,  that  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.
  (b)  PROVIDED, HOWEVER, THAT DURING THE FIRST THREE YEARS OF OPERATION
OF A CHARTER SCHOOL, THE AMOUNT PAID BY THE SCHOOL DISTRICT OF RESIDENCE
DIRECTLY TO THE CHARTER SCHOOL FOR PUPILS WHO ATTENDED PUBLIC SCHOOL  IN
THE  SCHOOL  DISTRICT OF RESIDENCE IN THE YEAR PRIOR TO ENROLLING IN THE
CHARTER SCHOOL SHALL BE REDUCED BY THE AMOUNT PROVIDED PURSUANT  TO  THE
PROVISIONS OF SUBDIVISION ONE-A OF THIS SECTION.
  (C)  The  [school  district] DEPARTMENT shall also pay directly to the
charter school any federal or state aid attributable to a student with a
disability attending THE 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  DEPARTMENT,  THE CHARTER school and the charter entity set
forth in the charter. Payments made pursuant to this  subdivision  shall
be  made  by the [school district] DEPARTMENT 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-
ment data is reported to the school district by the charter school. 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  result-
ing from such final report shall be made to payments during the school's
following year of operation.
  [(c)]  (D)  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.
  1-A.  (A)  NOTWITHSTANDING  THE  PROVISIONS OF SUBDIVISION ONE OF THIS
SECTION, FOR THE FIRST THREE YEARS OF OPERATION  OF  A  CHARTER  SCHOOL,
EACH  PUPIL  SO  RECEIVED  INTO ANY OF SUCH CHARTER SCHOOLS WHO ATTENDED
PUBLIC SCHOOL IN THE SCHOOL DISTRICT OF RESIDENCE IN  THE  PRIOR  SCHOOL

A. 5257                             6

YEAR  SHALL BE PROVIDED WITH AN AMOUNT EQUAL TO THAT CALCULATED PURSUANT
TO THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION; AND  THE  DIREC-
TORS OF THE CHARTER SCHOOL SHALL RECEIVE AN ALLOCATION FOR EACH PUPIL SO
PROVIDED  FOR,  TO  BE PAID BY THE COMMISSIONER OF TAXATION AND FINANCE,
OUT OF THE CHARTER SCHOOLS STIMULUS  FUND,  AS  ESTABLISHED  IN  SECTION
NINETY-SEVEN-SSS  OF  THE STATE FINANCE LAW, ON THE WARRANT OF THE COMP-
TROLLER, TO THE TREASURER OF SUCH  CHARTER  SCHOOL;  PROVIDED,  HOWEVER,
THAT  ONE-SIXTH  OF  SUCH  PAYMENT  SHALL BE MADE BEGINNING ON THE FIRST
BUSINESS DAY OF JULY AND EVERY TWO MONTHS THEREAFTER.
  (B) (I) DURING THE FIRST YEAR OF OPERATION OF A CHARTER SCHOOL  ESTAB-
LISHED  PURSUANT  TO THE PROVISIONS OF THIS ARTICLE, THE STATE SHALL PAY
TO EACH CHARTER SCHOOL FROM THE CHARTER SCHOOLS STIMULUS FUND AN  AMOUNT
EQUAL  TO  FIFTY  PERCENT  OF  THE  AMOUNT  CALCULATED  PURSUANT  TO THE
PROVISIONS OF SUBDIVISION ONE OF THIS SECTION FOR  EACH  PUPIL  ENROLLED
WHO  ATTENDED  PUBLIC  SCHOOL IN THE SCHOOL DISTRICT OF RESIDENCE IN THE
PRIOR SCHOOL YEAR;
  (II) DURING THE SECOND YEAR OF OPERATION OF A  CHARTER  SCHOOL  ESTAB-
LISHED  PURSUANT  TO THE PROVISIONS OF THIS ARTICLE, THE STATE SHALL PAY
TO EACH CHARTER SCHOOL FROM THE CHARTER SCHOOLS STIMULUS FUND AN  AMOUNT
EQUAL  TO  THIRTY  PERCENT  OF  THE  AMOUNT  CALCULATED  PURSUANT TO THE
PROVISIONS OF SUBDIVISION ONE OF THIS SECTION FOR  EACH  PUPIL  ENROLLED
WHO  ATTENDED  PUBLIC  SCHOOL IN THE SCHOOL DISTRICT OF RESIDENCE IN THE
PRIOR SCHOOL YEAR;
  (III) DURING THE THIRD YEAR OF OPERATION OF A  CHARTER  SCHOOL  ESTAB-
LISHED  PURSUANT  TO THE PROVISIONS OF THIS ARTICLE, THE STATE SHALL PAY
TO EACH CHARTER SCHOOL FROM THE CHARTER SCHOOLS STIMULUS FUND AN  AMOUNT
EQUAL TO TEN PERCENT OF THE AMOUNT CALCULATED PURSUANT TO THE PROVISIONS
OF  SUBDIVISION ONE OF THIS SECTION FOR EACH PUPIL ENROLLED WHO ATTENDED
PUBLIC SCHOOL IN THE SCHOOL DISTRICT OF RESIDENCE IN  THE  PRIOR  SCHOOL
YEAR.
  1-B.  (A)  PURSUANT  TO  PARAGRAPH (B) OF THIS SUBDIVISION, THE SCHOOL
DISTRICT SHALL RECEIVE AN ALLOCATION FOR EACH RESIDENT PUPIL ATTENDING A
CHARTER SCHOOL TO BE PAID BY THE COMMISSIONER OF TAXATION  AND  FINANCE,
OUT  OF  THE  CHARTER SCHOOLS TRANSITION FUND, AS ESTABLISHED IN SECTION
NINETY-SEVEN-KKKK OF THE STATE FINANCE LAW, ON THE AUDIT AND WARRANT  OF
THE  COMPTROLLER;  PROVIDED,  HOWEVER, THAT ONE-SIXTH OF SUCH ALLOCATION
SHALL BE MADE BEGINNING ON THE FIRST BUSINESS DAY OF JULY AND EVERY  TWO
MONTHS THEREAFTER.
  (B)  (I) DURING THE FIRST YEAR OF OPERATION OF A CHARTER SCHOOL ESTAB-
LISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE, THE STATE  SHALL  PAY
TO  THE SCHOOL DISTRICT OF RESIDENCE FROM THE CHARTER SCHOOLS TRANSITION
FUND, PURSUANT TO SECTION NINETY-SEVEN-KKKK OF THE STATE FINANCE LAW, AN
AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT CALCULATED PURSUANT  TO  THE
PROVISIONS  OF  SUBDIVISION  ONE OF THIS SECTION FOR EACH RESIDENT PUPIL
ENROLLED IN A CHARTER SCHOOL WHO  WAS  ENROLLED  IN  THE  PUBLIC  SCHOOL
DISTRICT  OF  RESIDENCE  IN  THE  YEAR  PRIOR  TO ENROLLING IN A CHARTER
SCHOOL;
  (II) DURING THE SECOND YEAR OF OPERATION OF A  CHARTER  SCHOOL  ESTAB-
LISHED  PURSUANT  TO THE PROVISIONS OF THIS ARTICLE, THE STATE SHALL PAY
TO THE SCHOOL DISTRICT OF RESIDENCE FROM THE CHARTER SCHOOLS  TRANSITION
FUND, PURSUANT TO SECTION NINETY-SEVEN-KKKK OF THE STATE FINANCE LAW, AN
AMOUNT  EQUAL TO THIRTY PERCENT OF THE AMOUNT CALCULATED PURSUANT TO THE
PROVISIONS OF SUBDIVISION ONE OF THIS SECTION FOR  EACH  RESIDENT  PUPIL
ENROLLED  IN  A  CHARTER  SCHOOL  WHO  WAS ENROLLED IN THE PUBLIC SCHOOL
DISTRICT OF RESIDENCE IN THE  YEAR  PRIOR  TO  ENROLLING  IN  A  CHARTER
SCHOOL;

A. 5257                             7

  (III)  DURING  THE  THIRD YEAR OF OPERATION OF A CHARTER SCHOOL ESTAB-
LISHED PURSUANT TO THE PROVISIONS OF THIS ARTICLE, THE STATE  SHALL  PAY
TO  THE SCHOOL DISTRICT OF RESIDENCE FROM THE CHARTER SCHOOLS TRANSITION
FUND, PURSUANT TO SECTION NINETY-SEVEN-KKKK OF THE STATE FINANCE LAW, AN
AMOUNT  EQUAL  TO  TEN  PERCENT OF THE AMOUNT CALCULATED PURSUANT TO THE
PROVISIONS OF SUBDIVISION ONE OF THIS SECTION FOR  EACH  RESIDENT  PUPIL
ENROLLED  IN  A  CHARTER  SCHOOL  WHO  WAS ENROLLED IN THE PUBLIC SCHOOL
DISTRICT OF RESIDENCE IN THE  YEAR  PRIOR  TO  ENROLLING  IN  A  CHARTER
SCHOOL;
  (IV)  THE  COMMISSIONER  OF  TAXATION AND FINANCE SHALL ALSO APPORTION
FUNDS FROM THE CHARTER SCHOOLS TRANSITION FUND TO THE SCHOOL DISTRICT OF
RESIDENCE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE AMOUNT CALCU-
LATED PURSUANT TO THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION  FOR
EACH  RESIDENT  PUPIL ENROLLED IN A CHARTER SCHOOL WHO WAS ENROLLED IN A
NONPUBLIC SCHOOL IN THE YEAR PRIOR TO ENROLLING IN A CHARTER SCHOOL, FOR
THE FIRST THREE YEARS OF SUCH PUPIL'S ENROLLMENT IN A CHARTER SCHOOL;
  (C) FOR THE PURPOSE OF PROVIDING PAYMENTS OF AMOUNTS CALCULATED PURSU-
ANT TO THIS SUBDIVISION TO A CHARTER SCHOOL IN EXISTENCE  PRIOR  TO  THE
EFFECTIVE DATE OF THIS SUBDIVISION, THE FIRST YEAR OF OPERATION FOR SUCH
CHARTER  SCHOOL  SHALL  BE DEEMED TO BE THE SCHOOL YEAR COMMENCING ON OR
AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
  2. [In the event of  the  failure  of  the  school  district  to  make
payments  required  by  this section, the state comptroller shall deduct
from any state funds which become due to such school district an  amount
equal  to the unpaid obligation. The comptroller shall pay over such sum
to the charter  school  upon  certification  of  the  commissioner.  The
commissioner shall promulgate regulations to implement the provisions of
this subdivision.
  3.]  Nothing in this article shall be construed to prohibit any person
or organization from providing funding or other assistance to the estab-
lishment or operation of a charter school. The board of  trustees  of  a
charter school is authorized to accept gifts, donations or grants of any
kind  made  to  the  charter  school  and  to  expend or use such gifts,
donations or grants in accordance with the conditions prescribed by  the
donor;  provided,  however,  that  no  gift,  donation  or  grant may be
accepted if subject to a condition that is contrary to any provision  of
law or term of the charter.
  3. A SCHOOL DISTRICT SHALL NOT BE REQUIRED TO MAKE ANY PAYMENTS PURSU-
ANT TO THIS SECTION UNLESS THE CHARTER SCHOOL HAS RECEIVED A CERTIFICATE
OF  OCCUPANCY  FOR  THE  FACILITIES  WHICH ARE TO BE USED BY THE CHARTER
SCHOOL AND THE FACILITIES MEET ALL LOCAL ZONING, LAND  USE  REGULATIONS,
AND BUILDING CODES WHICH APPLY TO NONPUBLIC SCHOOLS. ALL PAYMENTS SCHED-
ULED  TO BE MADE BY A SCHOOL DISTRICT PURSUANT TO THIS SECTION WHICH ARE
WITHHELD AS A RESULT OF A FAILURE OF THE CHARTER SCHOOL TO  COMPLY  WITH
THE PROVISIONS OF THIS SUBDIVISION SHALL BE DUE AND PAYABLE FIFTEEN DAYS
AFTER THE CHARTER SCHOOL MEETS THE REQUIREMENTS OF THIS SUBDIVISION.
  4.   WHEN   A  CHARTER  SCHOOL  IS  ESTABLISHED  PURSUANT  TO  SECTION
TWENTY-EIGHT HUNDRED FIFTY-TWO OF THIS  ARTICLE,  THE  STATE  SHALL  NOT
REFUSE  AID  TO  ANY SCHOOL DISTRICT LOCATED IN AN OFFICIALLY DESIGNATED
POVERTY AREA.
  S 7. Subdivisions 1-a and 2 of section  2857  of  the  education  law,
subdivision  1-a  as added by section 7 of part D-2 of chapter 57 of the
laws of 2007 and subdivision 2 as amended by section 23 of  chapter  101
of the laws of 2010, are amended to read as follows:
  1-a.  In the event the school district fails to conduct a public hear-
ing, the board of regents OR THE CHARTER ENTITY shall conduct  a  public

A. 5257                             8

hearing  to  solicit  comments from the community in connection with the
issuance, revision, or renewal of a charter.
  2.  Each  charter school shall submit to the charter entity, THE LOCAL
BOARD OF EDUCATION 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 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,  college  entry
rates,  total  spending per pupil and administrative 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 accessible to  the  community  including
making  it  publicly available by transmitting it to local newspapers of
general circulation and making it available for distribution at board of
trustee meetings.   THE CHARTER SCHOOL SHALL  MAKE  THE  CHARTER  SCHOOL
REPORT CARD PUBLICLY AVAILABLE BY APPENDING IT TO COPIES OF THE PROPOSED
BUDGET,  WHERE  APPLICABLE,  MADE PUBLICLY AVAILABLE AS REQUIRED BY LAW,
AND OTHERWISE DISSEMINATING IT AS REQUIRED  BY  THE  COMMISSIONER.  SUCH
REPORT  CARD  SHALL INCLUDE MEASURES OF THE ACADEMIC AND FISCAL PERFORM-
ANCE OF THE CHARTER SCHOOL, AS PRESCRIBED BY THE COMMISSIONER.  PURSUANT
TO  REGULATIONS  OF THE COMMISSIONER, THE REPORT CARD SHALL ALSO COMPARE
THESE MEASURES TO STATEWIDE AVERAGES FOR ALL PUBLIC AND CHARTER SCHOOLS,
AND STATEWIDE AVERAGES FOR PUBLIC SCHOOLS AND CHARTER SCHOOLS OF  COMPA-
RABLE  WEALTH  AND NEED, DEVELOPED BY THE COMMISSIONER. SUCH REPORT CARD
SHALL INCLUDE, AT A MINIMUM,  ANY  INFORMATION  ON  THE  CHARTER  SCHOOL
DISTRICT  REGARDING PUPIL PERFORMANCE AND EXPENDITURE PER PUPIL REQUIRED
TO BE INCLUDED IN THE ANNUAL REPORT BY THE REGENTS TO THE  GOVERNOR  AND
THE  LEGISLATURE PURSUANT TO SECTION TWO HUNDRED FIFTEEN-A OF THIS CHAP-
TER; AND ANY OTHER INFORMATION REQUIRED BY THE COMMISSIONER.
  (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, INCLUDING ANY PROFITS REALIZED BY THE  CHARTER
SCHOOL  OR  ITS  PARENT  CORPORATION  and expenditures 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
lunch  program established pursuant to paragraph (e) of subdivision four
of section twenty-eight hundred fifty-one of this article.
  S 8. Section 97-sss of the state finance law, as added by chapter 4 of
the laws of 1998, is amended to read as follows:
  S 97-sss. Charter schools stimulus fund.   1. There is  hereby  estab-
lished  in  the joint custody of the comptroller and the commissioner of
taxation and finance a fund to be known as the charter schools  stimulus

A. 5257                             9

fund.   Such fund shall consist of all monies made available pursuant to
appropriation for this purpose, all  monies  transferred  to  such  fund
pursuant  to  law,  and grants, gifts and devises and donations from any
public or private source. The purpose of such fund is to provide discre-
tionary  financial support, including grants and loans to charter school
applicants and to charter schools for start-up costs and for costs asso-
ciated with the  acquisition,  renovation,  or  construction  of  school
facilities OR GENERAL OPERATING EXPENSES.
  2. (A) IN ADDITION TO THE APPORTIONMENTS AUTHORIZED IN SUBDIVISION ONE
OF THIS SECTION, WHEN THE COMMISSIONER OF EDUCATION, UPON APPLICATION OF
AN  AFFECTED  DISTRICT,  CERTIFIES THAT SUCH SCHOOL DISTRICT'S FINANCIAL
SITUATION HAS BECOME DISTRESSED AS A RESULT OF THE OPERATION OF A  CHAR-
TER  SCHOOL  LOCATED  WITHIN  SUCH DISTRICT, THE COMPTROLLER SHALL AWARD
GRANTS FROM THE CHARTER SCHOOLS STIMULUS FUND TO A CHARTER SCHOOL  OR  A
DISTRESSED  DISTRICT IN AN AMOUNT TO MITIGATE SUCH FINANCIAL DISTRESS OF
THE AFFECTED SCHOOL DISTRICT.
  (B) EACH SCHOOL DISTRICT WHICH  SEEKS  A  DISTRESSED  SCHOOL  DISTRICT
GRANT SHALL SUBMIT A GRANT APPLICATION TO THE COMMISSIONER OF EDUCATION,
PURSUANT  TO  GUIDELINES TO BE ESTABLISHED BY THE COMMISSIONER OF EDUCA-
TION.
  (C) THE COMMISSIONER OF EDUCATION SHALL EVALUATE EACH  GRANT  APPLICA-
TION  ON  THE  BASIS  OF  CRITERIA,  INCLUDING,  BUT NOT LIMITED TO: THE
PERCENTAGE OF A SCHOOL DISTRICT'S PUPILS ENROLLED IN A  CHARTER  SCHOOL;
THE  IMPACT  OF CHARTER SCHOOL FUNDING ON DISTRICT GENERAL FUND EXPENSE;
AND THE RESULTANT LOCAL TAX IMPACT.
  3.  THE COMMISSIONER OF TAXATION AND  FINANCE  SHALL  APPORTION  FUNDS
FROM  THE CHARTER SCHOOLS STIMULUS FUND TO A CHARTER SCHOOL IN AN AMOUNT
PER PUPIL EQUAL TO THE AMOUNT CALCULATED PURSUANT TO  PARAGRAPH  (A)  OF
SUBDIVISION  ONE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-SIX OF THE EDUCA-
TION LAW FOR EACH RESIDENT PUPIL ENROLLED IN A CHARTER  SCHOOL  WHO  WAS
ENROLLED  IN  A  NON-PUBLIC SCHOOL IN THE YEAR PRIOR TO ENROLLING IN THE
CHARTER SCHOOL FOR THE FIRST THREE YEARS OF SUCH PUPIL'S  ENROLLMENT  IN
SUCH CHARTER SCHOOL.
  S  9.  The  state  finance  law  is amended by adding two new sections
97-kkkk and 97-llll to read as follows:
  S 97-KKKK. CHARTER SCHOOLS TRANSITION FUND. 1. THERE IS HEREBY  ESTAB-
LISHED  IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE
AND THE COMPTROLLER, A FUND TO BE KNOWN AS THE "CHARTER SCHOOLS  TRANSI-
TION FUND".
  2.  SUCH  FUND  SHALL CONSIST OF ALL MONIES MADE AVAILABLE PURSUANT TO
APPROPRIATION FOR THIS PURPOSE, ALL  MONEYS  TRANSFERRED  TO  SUCH  FUND
PURSUANT  TO  LAW,  AND GRANTS, GIFTS AND DEVISES AND DONATIONS FROM ANY
PUBLIC OR PRIVATE SOURCE. THE PURPOSE OF THE FUND IS TO PROVIDE  TRANSI-
TION  AID  OVER  A  THREE-YEAR  PERIOD,  AS  CALCULATED  PURSUANT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION ONE OF  SECTION  TWENTY-EIGHT
HUNDRED  FIFTY-SIX OF THE EDUCATION LAW, TO LOCAL SCHOOL DISTRICTS WHICH
HAVE RESIDENT PUPILS ATTENDING CHARTER SCHOOLS TO LESSEN  THE  FINANCIAL
IMPACT ON THE LOCAL SCHOOL DISTRICT.
  3.  MONIES  OF THE FUND SHALL BE EXPENDED ONLY FOR SUCH TRANSITION AID
TO LOCAL SCHOOL DISTRICTS WHICH HAVE RESIDENT PUPILS ENROLLED IN A CHAR-
TER SCHOOL.
  4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF TAXATION AND FINANCE.
  S 97-LLLL. DISTRESSED SCHOOL DISTRICT GRANT FUND. 1. THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY OF THE COMMISSIONER OF TAXATION AND

A. 5257                            10

FINANCE AND THE COMPTROLLER, A FUND  TO  BE  KNOWN  AS  THE  "DISTRESSED
SCHOOL DISTRICT GRANT FUND".
  2.  SUCH  FUND  SHALL CONSIST OF ALL MONIES MADE AVAILABLE PURSUANT TO
APPROPRIATION FOR THIS PURPOSE, ALL  MONEYS  TRANSFERRED  TO  SUCH  FUND
PURSUANT  TO  LAW,  AND GRANTS, GIFTS AND DEVISES AND DONATIONS FROM ANY
PUBLIC OR PRIVATE SOURCE. THE PURPOSE OF THE FUND IS TO  PROVIDE  GRANTS
TO LOCAL SCHOOL DISTRICTS WHICH HAVE RESIDENT PUPILS ENROLLED IN CHARTER
SCHOOLS TO LESSEN THE FINANCIAL IMPACT ON THE LOCAL SCHOOL DISTRICT.
  3. EACH SCHOOL DISTRICT WHICH SEEKS A DISTRESSED SCHOOL DISTRICT GRANT
MAY  SUBMIT AN APPLICATION FOR FUNDS PURSUANT TO GUIDELINES TO BE ESTAB-
LISHED BY THE COMMISSIONER OF EDUCATION.
  4. THE COMMISSIONER OF EDUCATION SHALL EVALUATE EACH GRANT APPLICATION
ON THE BASIS OF CRITERIA, INCLUDING, BUT NOT LIMITED TO: THE  PERCENTAGE
OF  A  SCHOOL DISTRICT'S PUPILS ENROLLED IN A CHARTER SCHOOL; THE IMPACT
OF THE CHARTER SCHOOL FUNDING ON DISTRICT GENERAL FUND EXPENSE; AND  THE
RESULTANT LOCAL TAX IMPACT.
  5. THE COMMISSIONER OF EDUCATION, PURSUANT TO THE CRITERIA ESTABLISHED
IN  SUBDIVISION  FOUR  OF  THIS  SECTION,  MAY  CERTIFY THAT SUCH SCHOOL
DISTRICT'S FINANCIAL SITUATION HAS BECOME DISTRESSED AS  THE  RESULT  OF
THE  OPERATION  OF A CHARTER SCHOOL. UPON CERTIFICATION, THE COMPTROLLER
SHALL AWARD GRANTS TO THE DISTRESSED DISTRICT IN AN AMOUNT  TO  MITIGATE
SUCH  FINANCIAL  DISTRESS  OF  THE  AFFECTED SCHOOL DISTRICT ON VOUCHERS
APPROVED AND CERTIFIED BY THE COMMISSIONER OF TAXATION AND FINANCE.
  S 10. Subparagraphs (xiii) and (xiv) of paragraph (a) of subdivision 1
of section 922 of the real property tax law, as amended by section 5  of
part  B  of  chapter  389  of the laws of 1997 and subparagraph (xiv) as
further amended by subdivision (b) of section 1 of part W of chapter 389
of the laws of 2010, are amended and a new subparagraph (xv) is added to
read as follows:
  (xiii) such other information as may be prescribed by law; [and]
  (xiv) if, not later than ten days after the filing  of  the  preceding
tentative  assessment  roll,  the assessing unit mailed to each owner of
taxable real property a notice in a form prescribed by the  commissioner
containing the information described by subparagraphs (iii) and (xii) of
this  paragraph  (excluding the taxes due on the parcel and the tax rate
for each taxing purpose), the statement of taxes need  not  include  the
information prescribed by subparagraph (xii) of this paragraph[.]; AND
  (XV)  A  STATEMENT SETTING FORTH THE AMOUNT OF TAXES LEVIED THAT SHALL
BE APPLIED OR THAT ARE PROJECTED TO BE APPLIED TO THE PAYMENT OF CHARTER
SCHOOLS.
  S 11. Subdivision 1 of section 1338 of the real property tax  law,  as
added by chapter 953 of the laws of 1962, is amended to read as follows:
  1.  Upon  receipt  of the tax roll and warrant, the collecting officer
shall mail to each owner of property  listed  thereon,  a  statement  of
taxes  as  provided by law.  SUCH STATEMENT SHALL INCLUDE, BUT SHALL NOT
BE LIMITED TO, INFORMATION REQUIRED PURSUANT  TO  SUBPARAGRAPH  (XV)  OF
PARAGRAPH  (A)  OF SUBDIVISION ONE OF SECTION NINE HUNDRED TWENTY-TWO OF
THIS CHAPTER.
  S 12. This act shall take effect on the first of July next  succeeding
the  date  on which it shall have become a law, provided that the amend-
ments to subdivision 1 of section 2856 of  the  education  law  made  by
section six of this act shall not affect the expiration of such subdivi-
sion and shall expire therewith.