S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6604
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 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, subparagraph (viii) of paragraph (a)  as
 amended  and  subparagraphs  (ix)  and  (x) of paragraph (a) as added by
 section 26-a of part A of chapter 56 of the laws of 2020, 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10501-01-1

 A. 6604                             2
 
   (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
 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

 A. 6604                             3
 
 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  and  two
 thousand  twenty-one--two  thousand twenty-two school years, 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 finish-
 ing 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 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 multiplied by, for the two
 thousand twenty--two thousand twenty-one school year  only,  (iii)  nine
 hundred  forty-five  one-thousandths  (0.945) 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 compli-
 ance with paragraph 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.
   (ix)  for  the  two  thousand  twenty-two--two  thousand  twenty-three
 through two thousand twenty-four--two thousand twenty-five school  years
 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 four years prior to  the  base  year
 and  finishing  with  the year prior to the base year, excluding the two
 thousand twenty--two thousand  twenty-one  school  year,  of  the  total
 approved  operating expense for such school district calculated pursuant
 to paragraph 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 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  paragraph  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.
   (x) for the two thousand twenty-five--two thousand  twenty-six  school
 year and thereafter 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 paragraph t of subdivision one of  section  thir-

 A. 6604                             4
 
 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
 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

 A. 6604                             5
 
 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,  subparagraph
 (viii)  of  paragraph  (a)  as amended and subparagraphs (ix) and (x) of
 paragraph (a) as added by section 26-b of part A of chapter  56  of  the
 laws of 2020, 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]
 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;

 A. 6604                             6
 
   (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
 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

 A. 6604                             7
 
 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  and  two
 thousand  twenty-one--two  thousand twenty-two school years, 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 finish-
 ing 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 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 multiplied by, for the two
 thousand twenty--two thousand twenty-one school year  only,  (iii)  nine
 hundred  forty-five  one-thousandths  (0.945) 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 compli-
 ance with paragraph 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.
   (ix)  for  the  two  thousand  twenty-two--two  thousand  twenty-three
 through two thousand twenty-four--two thousand twenty-five school  years
 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 four years prior to  the  base  year
 and  finishing  with  the year prior to the base year, excluding the two
 thousand twenty--two thousand  twenty-one  school  year,  of  the  total
 approved  operating expense for such school district calculated pursuant
 to paragraph 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 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  paragraph  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.
   (x) for the two thousand twenty-five--two thousand  twenty-six  school
 year and thereafter 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 paragraph t of subdivision one of  section  thir-

 A. 6604                             8
 
 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 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,

 A. 6604                             9
 
 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.