S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8678
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                            September 25, 2017
                                ___________
 
 Introduced  by M. of A. GALEF -- read once and referred to the Committee
   on Education
 
 AN ACT to amend the education law, in relation to the financing of char-
   ter schools
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 2856 of the education law, as added by chapter 4 of
 the  laws  of 1998, subdivision 1 as amended by section 4 of part YYY of
 chapter 59 of the laws of 2017, is amended to read as follows:
   § 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
 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, an amount equal to one hundred percent of the amount calcu-
 lated  pursuant  to paragraph f of subdivision one of section thirty-six
 hundred two of this chapter for the STUDENT'S school district  OF  RESI-
 DENCE  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11594-01-7
              

 A. 8678                             2
 
 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;
   (v) for the two thousand seventeen--two thousand eighteen school year,
 the charter school basic tuition shall be the sum  of  (A)  the  charter
 school  basic  tuition for the two thousand sixteen--two thousand seven-
 teen school year plus (B) five hundred dollars;
   (vi) for the two thousand eighteen--two thousand nineteen school year,
 the charter school basic tuition shall be the lesser of (A) the  product
 of  (i)  the  charter  school basic tuition calculated for the base year
 multiplied by (ii) the average of the quotients for each school year  in
 the  period  commencing  with the year five years prior to the base year
 and finishing with the year prior to the base year of the total approved
 operating expense for such school district calculated pursuant to  para-
 graph  t  of  subdivision  one of section thirty-six hundred two of this
 chapter for each such year  divided  by  the  total  approved  operating
 expense  for  such district for the immediately preceding year, provided
 that the highest and lowest annual quotients shall be excluded from  the
 calculation  of  such  average  or (B) the quotient of the total general
 fund expenditures for the school  district  calculated  pursuant  to  an
 electronic  data  file  created for the purpose of compliance with para-
 graph b of subdivision twenty-one of section three hundred five of  this
 chapter  published  annually  on May fifteenth for the year prior to the
 base year divided by the  total  estimated  public  enrollment  for  the
 school  district  pursuant  to paragraph n of subdivision one of section
 thirty-six hundred two of this chapter for the year prior  to  the  base
 year.
   (vii)  for  the two thousand nineteen--two thousand twenty school year
 the charter school basic tuition shall be the lesser of (A) the  product
 of  (i)  the  charter  school basic tuition calculated for the base year
 multiplied by (ii) the average of the quotients for each school year  in
 the  period  commencing with the year three years prior to the base year
 and finishing with the year prior to the base year of the total approved
 operating expense for such school district calculated pursuant to  para-
 graph  t  of  subdivision  one of section thirty-six hundred two of this
 chapter for each such year  divided  by  the  total  approved  operating
 expense  for  such  district for the immediately preceding year provided
 that the highest annual quotient calculated pursuant  to  this  subpara-
 graph  shall  be replaced by the average quotient calculated pursuant to
 subparagraph (vi) of this paragraph or (B) the  quotient  of  the  total
 general fund expenditures for the school district calculated pursuant to
 an electronic data file created for the purpose of compliance with para-
 graph  b of subdivision twenty-one of section three hundred five of this

 A. 8678                             3
 
 chapter published annually on May fifteenth for the year  prior  to  the
 base  year  divided  by  the  total  estimated public enrollment for the
 school district pursuant to paragraph n of subdivision  one  of  section
 thirty-six  hundred  two  of this chapter for the year prior to the base
 year.
   (viii) for the two thousand  twenty--two  thousand  twenty-one  school
 year and thereafter, the charter school basic tuition shall be the less-
 er of (A) the product of (i) the charter school basic tuition calculated
 for  the  base  year multiplied by (ii) the average of the quotients for
 each school year in the period commencing  with  the  year  three  years
 prior  to  the  base  year and finishing with the year prior to the base
 year of the total approved operating expense for  such  school  district
 calculated  pursuant  to paragraph t of subdivision one of section thir-
 ty-six hundred two of this chapter for each such  year  divided  by  the
 total  approved  operating expense for such district for the immediately
 preceding year or (B) the quotient of the total  general  fund  expendi-
 tures  for the school district calculated pursuant to an electronic data
 file created for the purpose of compliance with paragraph b of  subdivi-
 sion  twenty-one of section three hundred five of this chapter published
 annually on May fifteenth for the year prior to the base year divided by
 the total estimated public enrollment for the school  district  pursuant
 to  paragraph  n of subdivision one of section thirty-six hundred two of
 this chapter for the year prior to the base year.
   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 (4) for the  two  thousand  seven-
 teen--two  thousand  eighteen school year and thereafter, the sum of (i)
 the supplemental basic tuition calculated for the two thousand  sixteen-
 -two  thousand seventeen school year plus (ii) five hundred dollars, and
 (B) for school years prior to the two thousand  seventeen--two  thousand
 eighteen school year, 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 subpar-
 agraph (i) of this paragraph and (C) for school years following the  two
 thousand  sixteen--two  thousand  seventeen  school  years, 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 subpar-
 agraph  (i)  of  this  paragraph,  the sum of (i) the supplemental basic
 tuition calculated for the two thousand sixteen--two thousand  seventeen
 school year plus (ii) five hundred dollars.
   (b)  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

 A. 8678                             4
 
 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)  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 for the charter
 school in the base year for the expenses incurred in  the  two  thousand
 fourteen--two  thousand  fifteen,  two  thousand  fifteen--two  thousand
 sixteen, two thousand sixteen--two thousand seventeen school  years  and
 thereafter.
   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.
   § 2. Subdivision 1 of section 2856 of the education law, as amended by
 section 4-a of part YYY of chapter 59 of the laws of 2017, is amended to
 read as follows:
   1. (a) The enrollment of students attending charter schools shall  NOT
 be  included  in the enrollment, attendance 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 report such enrollment, attendance and count of students
 with disabilities to the department.] The [school district of residence]

 A. 8678                             5
 
 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, an amount equal to one hundred percent of the amount calcu-
 lated 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 subdi-
 vision 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 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;
   (v) for the two thousand seventeen--two thousand eighteen school year,
 the charter school basic tuition shall be the sum  of  (A)  the  charter
 school  basic  tuition for the two thousand sixteen--two thousand seven-
 teen school year plus (B) five hundred dollars;
   (vi) for the two thousand eighteen--two thousand nineteen school year,
 the charter school basic tuition shall be the lesser of (A) the  product
 of  (i)  the  charter  school basic tuition calculated for the base year
 multiplied by (ii) the average of the quotients for each school year  in
 the  period  commencing  with the year five years prior to the base year
 and finishing with the year prior to the base year of the total approved
 operating expense for such school district calculated pursuant to  para-
 graph  t  of  subdivision  one of section thirty-six hundred two of this
 chapter for each such year  divided  by  the  total  approved  operating
 expense  for  such district for the immediately preceding year, provided
 that the highest and lowest annual quotients shall be excluded from  the
 calculation  of  such  average  or (B) the quotient of the total general
 fund expenditures for the school  district  calculated  pursuant  to  an
 electronic  data  file  created for the purpose of compliance with para-
 graph b of subdivision twenty-one of section three hundred five of  this
 chapter  published  annually  on May fifteenth for the year prior to the
 base year divided by the  total  estimated  public  enrollment  for  the
 school  district  pursuant  to paragraph n of subdivision one of section
 thirty-six hundred two of this chapter for the year prior  to  the  base
 year.
   (vii)  for  the two thousand nineteen--two thousand twenty school year
 the charter school basic tuition shall be the lesser of (A) the  product
 of  (i)  the  charter  school basic tuition calculated for the base year

 A. 8678                             6
 
 multiplied by (ii) the average of the quotients for each school year  in
 the  period  commencing with the year three years prior to the base year
 and finishing with the year prior to the base year of the total approved
 operating  expense for such school district calculated pursuant to para-
 graph t of subdivision one of section thirty-six  hundred  two  of  this
 chapter  for  each  such  year  divided  by the total approved operating
 expense for such district for the immediately  preceding  year  provided
 that  the  highest  annual quotient calculated pursuant to this subpara-
 graph shall be replaced by the average quotient calculated  pursuant  to
 subparagraph  (vi)  of  this  paragraph or (B) the quotient of the total
 general fund expenditures for the school district calculated pursuant to
 an electronic data file created for the purpose of compliance with para-
 graph b of subdivision twenty-one of section three hundred five of  this
 chapter  published  annually  on May fifteenth for the year prior to the
 base year divided by the  total  estimated  public  enrollment  for  the
 school  district  pursuant  to paragraph n of subdivision one of section
 thirty-six hundred two of this chapter for the year prior  to  the  base
 year.
   (viii)  for  the  two  thousand twenty--two thousand twenty-one school
 year and thereafter, the charter school basic tuition shall be the less-
 er of (A) the product of (i) the charter school basic tuition calculated
 for the base year multiplied by (ii) the average of  the  quotients  for
 each  school  year  in  the  period commencing with the year three years
 prior to the base year and finishing with the year  prior  to  the  base
 year  of  the  total approved operating expense for such school district
 calculated pursuant to paragraph t of subdivision one of  section  thir-
 ty-six  hundred  two  of  this chapter for each such year divided by the
 total approved operating expense for such district for  the  immediately
 preceding  year  or  (B) the quotient of the total general fund expendi-
 tures for the school district calculated pursuant to an electronic  data
 file  created for the purpose of compliance with paragraph b of subdivi-
 sion twenty-one of section three hundred five of this chapter  published
 annually on May fifteenth for the year prior to the base year divided by
 the  total  estimated public enrollment for the school district pursuant
 to paragraph n of subdivision one of section thirty-six hundred  two  of
 this chapter for the year prior to the base year.
   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 (4) for the two thousand seven-
 teen--two thousand eighteen school year and thereafter, the sum  of  (i)
 the  supplemental basic tuition calculated for the two thousand sixteen-
 -two thousand seventeen school year plus (ii) five hundred dollars,  and
 (B)  for  school years prior to the two thousand seventeen--two thousand
 eighteen school year, 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

 A. 8678                             7
 
 basic tuition for the current year pursuant to the provisions of subpar-
 agraph  (i) of this paragraph and (C) for school years following the two
 thousand sixteen--two thousand seventeen  school  years,  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 subpar-
 agraph (i) of this paragraph, the sum  of  (i)  the  supplemental  basic
 tuition  calculated for the two thousand sixteen--two thousand seventeen
 school year plus (ii) five hundred dollars.
   (b) 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  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
 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. Such projections shall be reconciled with the
 actual enrollment at the end of the school's first  year  of  operation,
 and  any  necessary  adjustments  shall  be  made to payments during the
 school's second year of operation.
   (c) School districts shall be eligible  for  an  annual  apportionment
 equal  to  the  amount of the supplemental basic tuition for the charter
 school in the base year for the expenses incurred in  the  two  thousand
 fourteen--two  thousand  fifteen,  two  thousand  fifteen--two  thousand
 sixteen, two thousand sixteen--two thousand seventeen school  years  and
 thereafter.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision 1 of section 2856  of  the  education  law
 made  by  section  one  of  this act shall not affect the expiration and
 reversion of such subdivision pursuant to subdivision d of section 27 of
 chapter 378 of the laws of 2007, as amended  when  upon  such  date  the
 provisions of section two of this act shall take effect.