A. 5709 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 SECTION 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. 5709 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. 5709 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, subdivision 1 as amended by chapter 378 of the laws of
2007 and paragraph (a) of subdivision 1 as amended and paragraph (d) as
added by section 3 of part BB of chapter 56 of the laws of 2014, 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
A. 5709 5
residence] DEPARTMENT in a timely manner. [Each school district shall
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:
(i) for school years prior to the two thousand nine--two thousand ten
school year and for school years following the two thousand sixteen--two
thousand seventeen school year, 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
[(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 thirteen--two thousand fourteen 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;
(iv) for the two thousand fourteen--two thousand fifteen, two thousand
fifteen--two thousand sixteen and two thousand sixteen--two thousand
seventeen school years, the charter school basic tuition shall be the
sum of the lesser of the charter school basic tuition computed for the
two thousand ten--two thousand eleven school year pursuant to the
provisions of subparagraph (i) of this paragraph or the charter school
basic tuition computed for the current year pursuant to the provisions
of subparagraph (i) of this paragraph plus the supplemental basic
tuition.
For the purposes of this subdivision, the "supplemental basic tuition"
shall be (A) for a school district for which the charter school basic
tuition computed for the current year is greater than or equal to the
charter school basic tuition for the two thousand ten--two thousand
eleven school year pursuant to the provisions of subparagraph (i) of
this paragraph, (1) for the two thousand fourteen--two thousand fifteen
school year two hundred and fifty dollars, and (2) for the two thousand
fifteen--two thousand sixteen school year three hundred and fifty
dollars, and (3) for the two thousand sixteen--two thousand seventeen
school year five hundred dollars, and (B) for a school district for
which the charter school basic tuition for the two thousand ten--two
thousand eleven school year is greater than the charter school basic
tuition for the current year pursuant to the provisions of subparagraph
(i) of this paragraph, the positive difference of the charter school
basic tuition for the two thousand ten--two thousand eleven school year
minus the charter school basic tuition for the current year pursuant to
the provisions of subparagraph (i) of this paragraph].
(B) PROVIDED, HOWEVER, THAT DURING THE FIRST THREE YEARS OF OPERATION
OF A CHARTER SCHOOL, THE AMOUNT PAID BY THE SCHOOL DISTRICT OR RESIDENCE
A. 5709 6
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.
[(b)] (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.
[(d) School districts shall be eligible for an annual apportionment
equal to the amount of the supplemental basic tuition paid to the char-
ter school in the base year for the expenses incurred in the two thou-
sand fourteen--two thousand fifteen, two thousand fifteen--two thousand
sixteen, and two thousand sixteen--two thousand seventeen school years.]
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
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
A. 5709 7
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-LLLL 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-LLLL 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-LLLL 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;
(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-LLLL 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
A. 5709 8
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 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
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
A. 5709 9
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
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
A. 5709 10
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-llll and 97-qqqq to read as follows:
S 97-LLLL. 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-QQQQ. DISTRESSED SCHOOL DISTRICT GRANT FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND
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
A. 5709 11
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 section 1 of part W of chapter 56 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.