S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3681
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Education
 
 AN ACT to amend the education law, in relation to charter schools
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

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

              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08350-01-3
 A. 3681                             2

 the school], AND PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL AN  APPLICA-
 TION  TO  ESTABLISH  A  CHARTER  SCHOOL OR APPROVAL TO OPERATE A CHARTER
 SCHOOL BE GRANTED TO A FOR-PROFIT BUSINESS OR CORPORATE  ENTITY  AUTHOR-
 IZED  TO  DO  BUSINESS  IN THIS STATE NOR IN ANY MANNER WHATSOEVER SHALL
 THEY HAVE AN INVOLVEMENT IN THE MANAGEMENT AND OPERATION  OF  A  CHARTER
 SCHOOL.  THE  APPLICATION SHALL INCLUDE THE AMOUNT OF ANY MANAGEMENT FEE
 TO BE PAID TO ANY NOT-FOR-PROFIT CORPORATION WORKING IN CONJUNCTION WITH
 THE APPLICANTS.  SALARIES OF THE EMPLOYEES OF SUCH NOT-FOR-PROFIT CORPO-
 RATION MAY NOT EXCEED THE  SALARIES  FOR  COMPARABLE  POSITIONS  IN  THE
 SCHOOL DISTRICT OF LOCATION.
   § 3. Paragraphs (d), (h), (p) and (v) of subdivision 2 of section 2851
 of  the  education  law, paragraphs (d) and (h) as added by chapter 4 of
 the laws of 1998 and paragraphs (p) and (v) as amended by chapter 101 of
 the laws of 2010, are amended to read as follows:
   (d) Admission policies and procedures for the school, which  shall  be
 consistent  with  the requirements of subdivision two of section twenty-
 eight hundred fifty-four of this article.   FOR CHARTER  RENEWALS,  SUCH
 POLICIES  AND  PROCEDURES  SHALL  INCLUDE PLANS FOR ENSURING THE STUDENT
 ENROLLMENT OF THE CHARTER SCHOOL INCLUDES  A  COMPARABLE  PERCENTAGE  OF
 STUDENTS  ON FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE
 LEARNERS AS THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED.
   (h) The rules and procedures by which  students  may  be  disciplined,
 including  but  not  limited to expulsion or suspension from the school,
 which shall be consistent with the requirements of due process and  with
 federal  laws  and  regulations governing the placement of students with
 disabilities. SUCH RULES AND PROCEDURES SHALL INCLUDE THE  PROVISION  OF
 EDUCATIONAL  SERVICES  TO  ANY STUDENT ON LONG TERM SUSPENSION OR EXPUL-
 SION.
   (p) The term of the proposed charter,  which  shall  not  exceed  five
 years  DURING WHICH INSTRUCTION IS PROVIDED TO PUPILS; provided however,
 in the case of charters issued pursuant to subdivision nine-a of section
 twenty-eight hundred fifty-two of this article the term of such proposed
 charter shall not exceed five years in which instruction is provided  to
 pupils plus the period commencing with the effective date of the charter
 and ending with the opening of the school for instruction.
   (v)  A  code  of  ethics for the charter school, setting forth for the
 guidance of its  trustees,  officers  and  employees  the  standards  of
 conduct  expected of them including standards with respect to disclosure
 of conflicts of interest regarding any matter brought before  the  board
 of  trustees.    SUCH CODE OF ETHICS SHALL BE IN COMPLIANCE WITH SECTION
 EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
   § 4. Paragraph (a) of subdivision 4 of section 2851 of  the  education
 law,  as  added  by chapter 4 of the laws of 1998, is amended to read as
 follows:
   (a) A report of the progress of the charter school  in  achieving  the
 educational  objectives  set  forth  in  the  charter. SUCH REPORT SHALL
 INCLUDE  DISAGGREGATED  STUDENT  PERFORMANCE  DATA   FOR   ALL   STUDENT
 SUBGROUPS.
   §  5.  Paragraphs  (c) and (d) of subdivision 2 of section 2852 of the
 education law, paragraph (c) as amended and paragraph (d)  as  added  by
 section 2 of part D-2 of chapter 57 of the laws of 2007, are amended and
 two new paragraphs (e) and (f) are added to read as follows:
   (c) granting the application is likely to improve student learning and
 achievement  and  materially further the purposes set out in subdivision
 two of section twenty-eight hundred fifty of this article; [and]
 A. 3681                             3
 
   (d) in a school  district  where  the  total  enrollment  of  resident
 students attending charter schools in the base year is greater than five
 percent  of the total public school enrollment of the school district in
 the base year [(i)] granting the application would  have  a  significant
 educational  benefit  to  the  students  expected to attend the proposed
 charter school [or (ii) the school district in which the charter  school
 will  be  located  consents  to  such application]. FOR PURPOSES OF THIS
 PARAGRAPH, IN A CITY HAVING A POPULATION OF ONE  MILLION  OR  MORE,  THE
 SCHOOL DISTRICT SHALL BE THE COMMUNITY SCHOOL DISTRICT;
   (E) THE APPLICATION FOR THE CHARTER SCHOOL IS APPROVED BY THE BOARD OF
 EDUCATION  OF  THE  SCHOOL  DISTRICT  WHERE  THE CHARTER SCHOOL IS TO BE
 LOCATED; AND
   (F) THE CHARTER ENTITY SHALL NOT APPROVE  AN  APPLICATION  THAT  WOULD
 HAVE THE EFFECT OF INCREASING THE RACIAL ISOLATION OF A SCHOOL DISTRICT.
   § 6. Subdivision 5-b of section 2852 of the education law, as added by
 chapter 4 of the laws of 1998, is amended to read as follows:
   5-b. If the board of regents returns a proposed charter to the charter
 entity pursuant to the provisions of subdivision five-a of this section,
 such  charter  entity shall reconsider the proposed charter, taking into
 consideration the comments and recommendation of the board  of  regents.
 Thereafter,  the  charter  entity shall resubmit the proposed charter to
 the board of regents with modifications,  provided  that  the  applicant
 consents in writing to such modifications, resubmit the proposed charter
 to  the  board  of regents without modifications WITH AN EXPLANATION WHY
 THE MODIFICATIONS ARE NOT BEING MADE, or abandon the  proposed  charter.
 The board of regents shall review each such resubmitted proposed charter
 in  accordance  with  the  provisions  of  subdivision  five-a  of  this
 section[; provided, however, that it shall be the duty of the  board  of
 regents to approve and issue a proposed charter resubmitted by the char-
 ter  entity  described  in paragraph (b) of subdivision three of section
 twenty-eight hundred fifty-one of this article within thirty days of the
 resubmission of such proposed charter or such proposed charter shall  be
 deemed approved and issued at the expiration of such period].
   §  7. Subdivision 7 of section 2852 of the education law is amended by
 adding a new paragraph (c) to read as follows:
   (C) WHEN A REVISION OF A CHARTER INVOLVES AN  INCREASE  IN  ENROLLMENT
 WHICH  BRINGS TOTAL ENROLLMENT IN CHARTER SCHOOLS IN THE SCHOOL DISTRICT
 OF LOCATION ABOVE FIVE PERCENT THE REVISION SHALL BE DENIED  UNLESS  THE
 SCHOOL  DISTRICT  OF  LOCATION APPROVES THE REVISION OR THE RESIDENTS OF
 THE SCHOOL DISTRICT APPROVE THE REVISION THROUGH  A  REFERENDUM  OF  THE
 ELIGIBLE  VOTERS  TO BE HELD IN CONJUNCTION WITH THE ANNUAL BUDGET VOTE.
 FOR PURPOSES OF THIS PARAGRAPH IN A CITY  HAVING  A  POPULATION  OF  ONE
 MILLION  OR  MORE THE SCHOOL DISTRICT OF LOCATION SHALL BE THE COMMUNITY
 SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED.
   § 8. Subdivision 10 of section 2852 of the education law, as added  by
 section  3  of part D-2 of chapter 57 of the laws of 2007, is amended to
 read as follows:
   10. Except in the case of a charter school formed by a school district
 as a charter entity pursuant to paragraph (a) of  subdivision  three  of
 section twenty-eight hundred fifty-one of this article, a charter school
 formed  by  approval  of  the regents or by operation of law on or after
 [March] JANUARY fifteenth in any school year shall not commence instruc-
 tion until July of the second school year next following.
   § 9. Subdivision 2 of section 2853 of the education law, as  added  by
 chapter 4 of the laws of 1998, is amended to read as follows:
 A. 3681                             4
 
   2.  The  board of regents and charter entity shall oversee each school
 approved by such entity, and may visit, examine  into  and  inspect  any
 charter  school,  including  the records of such school, under its over-
 sight. Oversight by a charter entity and the board of regents  shall  be
 sufficient  to  ensure that the charter school is in compliance with all
 applicable laws, regulations and charter  provisions.    THE  DEPARTMENT
 SHALL INCLUDE CHARTER SCHOOLS IN ANY REVIEW OR AUDIT OF STATE ASSESSMENT
 ADMINISTRATION OR SCORING.
   §  10. Paragraph (a) of subdivision 3 of section 2853 of the education
 law, as amended by chapter 101 of the laws of 2010, is amended  to  read
 as follows:
   (a)  A  charter  school  may  be located in part of an existing public
 school building, in space provided on a private work site, in  a  public
 building or in any other suitable location, PROVIDED, HOWEVER, A CHARTER
 SCHOOL  SHALL  NOT BE LOCATED IN ANY PART OF AN EXISTING SCHOOL BUILDING
 WHEN SUCH SHARING WOULD IMPACT THE PUBLIC SCHOOL'S ABILITY TO  MEET  THE
 CLASS  SIZE TARGETS ESTABLISHED PURSUANT TO SECTION TWO HUNDRED ELEVEN-D
 OF THIS CHAPTER.   Provided, however, before a  charter  school  may  be
 located in part of an existing public school building, the charter enti-
 ty shall provide notice to the parents or guardians of the students then
 enrolled in the existing school building and shall hold a public hearing
 for purposes of discussing the location of the charter school. A charter
 school may own, lease or rent its space.
   § 11. Subdivision 3 of section 2853 of the education law is amended by
 adding two new paragraphs (f) and (g) to read as follows:
   (F)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CAPITAL FACILITY, OR
 OTHER IMPROVEMENTS MADE IN PUBLIC SCHOOL BUILDINGS OR EQUIPMENT  WITH  A
 PERIOD  OF  PROBABLE  USEFULNESS  OF  FIVE OR MORE YEARS, WITH PUBLIC OR
 PRIVATE FUNDS, TO ACCOMMODATE CHARTER SCHOOLS, SHALL REQUIRE MATCHING OR
 COMPARABLE IMPROVEMENTS BE MADE FOR OTHER DISTRICT  SCHOOLS  LOCATED  IN
 THE SAME BUILDING.
   (G) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CONSTRUCTION OR CAPI-
 TAL  IMPROVEMENT  MADE  IN ACCORDANCE WITH THIS ARTICLE SHALL BE MADE IN
 ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT AND NINE
 OF THE LABOR LAW.
   § 12. Paragraphs (c) and (e) of subdivision 1 of section 2854  of  the
 education  law,  paragraph  (c)  as amended by section 10-b of part A of
 chapter 56 of the laws of 2014 and paragraph (e) as added by  chapter  4
 of the laws of 1998, are amended to read as follows:
   (c)  A  charter  school  shall be subject to the financial audits, the
 audit procedures, and the audit requirements set forth in  the  charter,
 and  [shall]  MAY  be  subject  to audits of the comptroller of the city
 school district of the city of New York for charter schools  located  in
 New  York  city,  [and] to the audits of the comptroller of the state of
 New York for charter schools located in the rest of the state,  [at  his
 or  her  discretion] OR THE CHARTER ENTITY, with respect to the school's
 financial operations. Such procedures and standards shall be  consistent
 with  generally  accepted  accounting  and  audit standards. Independent
 fiscal audits shall be required at least once annually.
   (e) A charter school shall be subject to the  provisions  of  articles
 six  and  seven  of the public officers law IN THE SAME MANNER AS PUBLIC
 SCHOOL DISTRICTS.
   § 13. Subdivision 1 of section 2854 of the education law is amended by
 adding a new paragraph (g) to read as follows:
   (G) A CHARTER SCHOOL SHALL BE SUBJECT TO  THE  PROVISIONS  OF  SECTION
 EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
 A. 3681                             5
 
   §  14. Subdivision 2 of section 2854 of the education law, as added by
 chapter 4 of the laws of 1998, paragraph (a) as amended by  chapter  101
 of  the  laws  of  2010,  and  paragraph  (b) as amended by section 3 of
 subpart A of part B of chapter 20 of the laws of  2015,  is  amended  to
 read as follows:
   2.  Admissions;  enrollment; students.   (a) A charter school shall be
 nonsectarian in its programs, admission policies, employment  practices,
 and  all other operations and shall not charge tuition or fees; provided
 that a charter school may require the payment of fees on the same  basis
 and  to  the same extent as other public schools. A charter school shall
 not discriminate against any student, employee or any  other  person  on
 the  basis  of  ethnicity, national origin, gender, or disability or any
 other ground that would be unlawful if done by a  school.  Admission  of
 students  shall  not  be  limited  on the basis of intellectual ability,
 measures of achievement or aptitude, athletic ability, disability, race,
 creed, gender, national origin, religion, or ancestry; provided,  howev-
 er,  that  nothing  in  this  article  shall be construed to prevent the
 establishment of  a  single-sex  charter  school  or  a  charter  school
 designed to provide expanded learning opportunities for students at-risk
 of  academic  failure or students with disabilities and English language
 learners; and provided, further, that the charter school  shall  [demon-
 strate good faith efforts to] attract and retain a comparable or greater
 enrollment of students with disabilities, English language learners, and
 students  who  are  eligible  applicants  for the free and reduced price
 lunch program when compared to the enrollment figures for such  students
 in  the  school  district  in which the charter school is located.  IF A
 CHARTER SCHOOL IS NOT SUCCESSFUL IN ATTRACTING A COMPARABLE  OR  GREATER
 ENROLLMENT  OF STUDENTS WITH DISABILITIES AND LIMITED ENGLISH PROFICIENT
 STUDENTS AS COMPARED TO THE ENROLLMENT FIGURES FOR SUCH STUDENTS IN  THE
 SCHOOL  DISTRICT  IN  WHICH  THE  CHARTER SCHOOL IS LOCATED SUCH CHARTER
 SCHOOL SHALL PROVIDE THE CHARTERING ENTITY WITH A PLAN FOR IMPROVING THE
 ENROLLMENT OF SUCH STUDENTS IN THE FOLLOWING  YEAR.  FAILURE  TO  COMPLY
 WITH  THIS  REQUIREMENT  FOR  TWO  CONSECUTIVE YEARS SHALL BE SUBJECT TO
 REVOCATION IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION  TWENTY-EIGHT
 HUNDRED FIFTY-FIVE OF THIS ARTICLE. A charter shall not be issued to any
 school that would be wholly or in part under the control or direction of
 any  religious  denomination,  or  in  which any denominational tenet or
 doctrine would be taught.
   (b) Any child who is qualified under the laws of this state for admis-
 sion to a public school is qualified for admission to a charter  school.
 Applications  for  admission to a charter school shall be submitted on a
 uniform application form created by the department  and  shall  be  made
 available  by  a charter school in languages predominately spoken in the
 community in which such charter school  is  located.  The  school  shall
 enroll  each  eligible  student  who submits a timely application by the
 first day of April each year, unless the number of applications  exceeds
 the  capacity  of  the  grade level or building. In such cases, students
 shall be accepted from among applicants by a random  selection  process,
 provided,  however,  that  an enrollment preference shall be provided to
 pupils WHEN THE CHARTER SCHOOL IS LOCATED WITHIN ONE MILE OF THE PUPILS'
 RESIDENCE, PUPILS returning to the charter school in the second  or  any
 subsequent  year of operation and pupils residing in the school district
 in which the charter school is located, and siblings of  pupils  already
 enrolled  in the charter school AND STUDENTS ON FREE LUNCH, AND STUDENTS
 WITH DISABILITIES, AND STUDENTS WITH LIMITED ENGLISH PROFICIENCY.  Pref-
 erence  may  also  be  provided  to children of employees of the charter
 A. 3681                             6
 
 school or charter management organization, provided that  such  children
 of  employees may constitute no more than fifteen percent of the charter
 school's total enrollment. The commissioner shall establish  regulations
 to  require that the random selection process conducted pursuant to this
 paragraph be performed in a transparent  and  equitable  manner  and  to
 require  that  the  time  and  place  of the random selection process be
 publicized in a manner consistent with the requirements of  section  one
 hundred  four  of the public officers law and be open to the public. For
 the purposes of this paragraph and paragraph (a)  of  this  subdivision,
 the  school  district in which the charter school is located shall mean,
 for the city school district of the city  of  New  York,  the  community
 district  in which the charter school is located.  THE CHARTER ENTITY IS
 RESPONSIBLE FOR ENSURING THE SELECTION PROCESS IS CONDUCTED  IN  ACCORD-
 ANCE  WITH  THIS PARAGRAPH. IF THE CHARTER ENTITY DETERMINES THE PROCESS
 IS NOT IN COMPLIANCE WITH  THIS  PARAGRAPH,  THE  CHARTER  ENTITY  SHALL
 CONDUCT THE PROCESS.
   (c) A charter school shall serve one or more of the grades one through
 twelve,  and  shall  limit  admission  to pupils within the grade levels
 served. Nothing herein shall prohibit a charter school from establishing
 a kindergarten program.
   (d) A student may withdraw from a  charter  school  at  any  time  and
 enroll in a public school. A CHARTER SCHOOL MUST PROVIDE A REPORT TO THE
 CHARTERING  ENTITY  EACH  YEAR INDICATING THE NUMBER OF STUDENTS LEAVING
 THE CHARTER SCHOOL, THE MONTHS IN WHICH THE STUDENTS LEAVE  THE  SCHOOL,
 THE  REASON  THE STUDENTS LEAVE THE SCHOOL AND THE SCHOOL THE STUDENT IS
 CURRENTLY ATTENDING. A  charter  school  may  refuse  admission  to  any
 student  who  has  been expelled or suspended from a public school until
 the period of  suspension  or  expulsion  from  the  public  school  has
 expired, consistent with the requirements of due process.
   § 15. Paragraphs (b-1), (c) and (c-1) of subdivision 3 of section 2854
 of  the  education  law, paragraph (b-1) as amended by section 6 of part
 D-2 of chapter 57 of the laws of 2007, and paragraphs (c) and  (c-1)  as
 added by chapter 4 of the laws of 1998, are amended to read as follows:
   (b-1) The employees of a charter school [that is not a conversion from
 an  existing  public  school] shall [not] be deemed members of [any] THE
 existing collective bargaining unit representing employees of the school
 district in which the charter school is located, and the charter  school
 and  its  employees  shall  [not]  be subject to any existing collective
 bargaining agreement between the  school  district  and  its  employees.
 [Provided,  however,  that  (i) if the student enrollment of the charter
 school on the first day on which the charter  school  commences  student
 instruction  exceeds  two  hundred fifty or if the average daily student
 enrollment of such school exceeds two  hundred  fifty  students  at  any
 point  during  the  first  two  years after the charter school commences
 student instruction, all employees of the school who  are  eligible  for
 representation  under article fourteen of the civil service law shall be
 deemed to be represented in a separate negotiating unit at  the  charter
 school  by  the same employee organization, if any, that represents like
 employees in the  school  district  in  which  such  charter  school  is
 located;  (ii)  the provisions of subparagraph (i) of this paragraph may
 be waived in up to ten charters issued  on  the  recommendation  of  the
 charter  entity  set  forth  in  paragraph  (b)  of subdivision three of
 section twenty-eight  hundred  fifty-one  of  this  article;  (iii)  the
 provisions of subparagraph (i) of this paragraph shall not be applicable
 to  the  renewal  or  extension  of  a charter; and (iv) nothing in this
 sentence shall be construed to subject a charter school subject  to  the
 A. 3681                             7

 provisions of this paragraph or its employees to any collective bargain-
 ing agreement between any public school district and its employees or to
 make  the  employees of such charter school part of any negotiating unit
 at such school district. The charter school may, in its sole discretion,
 choose  whether  or  not  to  offer the terms of any existing collective
 bargaining to school employees.] PROVIDED, HOWEVER, THAT A  MAJORITY  OF
 THE MEMBERS OF A NEGOTIATING UNIT WITHIN A CHARTER SCHOOL MAY MODIFY, IN
 WRITING,  A  COLLECTIVE BARGAINING AGREEMENT FOR THE PURPOSES OF EMPLOY-
 MENT IN THE CHARTER SCHOOL WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF
 THE CHARTER SCHOOL.
   (c) The employees of the charter school [may] SHALL be deemed  employ-
 ees of the local school district for the purpose of providing retirement
 benefits,  including  membership  in the teachers' retirement system and
 other retirement systems open to employees of public schools. The finan-
 cial contributions for such benefits shall be the responsibility of  the
 charter  school and the school's employees. The commissioner, in consul-
 tation with the comptroller, shall develop regulations to implement  the
 provisions  of this paragraph in a manner that allows charter schools to
 provide retirement benefits to its employees in the same manner as other
 public school employees.
   (c-1) Reasonable access. (i) If employees of the  charter  school  are
 not  represented,  any charter school chartered pursuant to this article
 must afford reasonable access to any employee  organization  during  the
 reasonable proximate period before any representation question is raised
 IN THE SAME MANNER AS ANY PUBLIC EMPLOYER; or
   (ii)  If  the  employee  organization  is  a challenging organization,
 reasonable access must be provided to any organization seeking to repre-
 sent employees beginning with a date reasonably proximate to a challenge
 period. Reasonableness is defined, at a minimum, as access equal to that
 provided to the incumbent organization.
   § 16. Subdivision 1 of section 2855 of the education law,  as  amended
 by chapter 101 of the laws of 2010, is amended to read as follows:
   1.  The charter entity, or the board of regents, [may] SHALL terminate
 a charter upon any of the following grounds:
   (a) When a charter school's outcome  on  student  assessment  measures
 adopted  by  the board of regents falls below the level that would allow
 the commissioner to revoke the registration of  another  public  school,
 and student achievement on such measures [has not shown improvement] HAS
 NOT MET ANNUAL YEARLY PROGRESS over the preceding three school years;
   (b) Serious violations of law;
   (c)  Material  and  substantial  violation  of  the charter, including
 fiscal mismanagement AND FAILURE TO MEET STUDENT PERFORMANCE TARGETS;
   (d) When the public employment relations board makes  a  determination
 that the charter school demonstrates a practice and pattern of egregious
 and  intentional  violations  of  subdivision one of section two hundred
 nine-a of the civil service law involving interference with or discrimi-
 nation against employee rights  under  article  fourteen  of  the  civil
 service law; [or]
   (e)  Repeated failure to comply with the requirement to meet or exceed
 enrollment and retention targets of students with disabilities,  English
 language learners, and students who are eligible applicants for the free
 and  reduced  price lunch program pursuant to targets established by the
 board of regents or the board of trustees of the state university of New
 York, as applicable. Provided, however, if no grounds for terminating  a
 charter  are established pursuant to this section other than pursuant to
 this paragraph, and the charter school demonstrates  that  it  has  made
 A. 3681                             8
 
 extensive  efforts  to  recruit  and  retain  such  students,  including
 outreach to parents and families in the surrounding communities,  widely
 publicizing  the  lottery  for  such school, and efforts to academically
 support such students in such charter school, then the charter entity or
 board of regents may retain such charter[.]; OR
   (F)  FAILURE  TO ENROLL A COMPARABLE PERCENTAGE OF STUDENTS QUALIFYING
 FOR FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE LEARNERS
 FOR TWO CONSECUTIVE YEARS.
   § 17. Paragraph (b) of subdivision 1 of section 2856 of the  education
 law,  as  amended  by section 4 of part YYY of chapter 59 of the laws of
 2017, is amended and a new paragraph (a-1) is added to read as follows:
   (A-1) FOR THE  TWO  THOUSAND  TWENTY-THREE--TWO  THOUSAND  TWENTY-FOUR
 SCHOOL  YEAR  AND  EACH SCHOOL YEAR THEREAFTER THE STATE SHALL REIMBURSE
 SCHOOL DISTRICTS FOR THE LOCAL  SHARE  OF  THE  CHARTER  SCHOOL  TUITION
 PAYMENT  OF  ANY STUDENTS ATTENDING A CHARTER SCHOOL IN THE JUNE PAYMENT
 REQUIRED BY SECTION THREE THOUSAND SIX HUNDRED NINE-A OF  THIS  CHAPTER.
 SUCH  LOCAL  SHARE  SHALL  BE  CALCULATED  BY DEDUCTING FROM THE CHARTER
 SCHOOL TUITION PAYMENT THE PER PUPIL FOUNDATION AID AMOUNT  ATTRIBUTABLE
 TO SUCH PUPIL.
   (b)  The school district shall also pay directly to the charter school
 any federal or state aid attributable to a  student  with  a  disability
 attending charter school in proportion to the level of services for such
 student  with  a disability that the charter school provides directly or
 indirectly. Notwithstanding anything in this section  to  the  contrary,
 amounts  payable  pursuant to this subdivision from state or local funds
 may be reduced pursuant to an agreement between the school and the char-
 ter entity set forth in the charter.  Payments  made  pursuant  to  this
 subdivision  shall  be  made by the school district in six substantially
 equal installments each year beginning on the first business day of July
 and every two months thereafter. Amounts payable under this  subdivision
 shall  be  determined  by the commissioner. Amounts payable to a charter
 school in its first year of operation shall be based on the  projections
 of initial-year enrollment set forth in the charter until actual enroll-
 ment data is reported to the school district by the charter school. SUCH
 ACTUAL ENROLLMENT SHALL BE REPORTED TO THE SCHOOL DISTRICT PRIOR TO EACH
 PAYMENT  FOLLOWING  THE  INITIAL  JULY  PAYMENT  WHICH SHALL BE BASED ON
 PROJECTED ENROLLMENT. Such projections  shall  be  reconciled  with  the
 actual  enrollment  as  actual enrollment data is so reported and at the
 end of the school's first year of operation  and  each  subsequent  year
 based  on a final report of actual enrollment by the charter school, and
 any necessary adjustments resulting from such final report shall be made
 to payments during the school's following year of operation.
   § 18. Subdivisions 2 and 3 of  section  2857  of  the  education  law,
 subdivision  2  as amended and paragraph (a-1) of subdivision 3 as added
 by chapter 101 of the laws of 2010  and  subdivision  3  as  amended  by
 section  7 of part D-2 of chapter 57 of the laws of 2007, are amended to
 read as follows:
   2. Each charter school shall submit to the charter entity and  to  the
 board  of regents an annual report. Such report shall be issued no later
 than the first day of August of each year for the preceding school  year
 AND  PROVIDED TO THE SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED
 FOR DISPLAY ON THE SCHOOL DISTRICT WEBSITE, and shall be  made  publicly
 available  by  such  date  and  shall  be posted on the charter school's
 website. The annual report shall be in such form as shall be  prescribed
 by the commissioner and shall include at least the following components:
 A. 3681                             9
 
   (a)  a charter school report card, which shall include measures of the
 comparative academic and fiscal performance of the school, as prescribed
 by the commissioner in regulations adopted for such purpose. Such  meas-
 ures  shall  include,  but  not be limited to, graduation rates, dropout
 rates,  performance  of students on standardized tests DISAGGREGATED FOR
 SUB-GROUPS, college entry rates, total spending per pupil  and  adminis-
 trative  spending  per  pupil.    Such  measures shall be presented in a
 format that is easily comparable to similar public schools. In addition,
 the charter school shall ensure that such information is easily accessi-
 ble to the community including making it publicly available by transmit-
 ting it to local newspapers of general circulation and making it  avail-
 able for distribution at board of trustee meetings.
   (b)  discussion  of the progress made towards achievement of the goals
 set forth in the charter.
   (c) a certified financial  statement  setting  forth,  by  appropriate
 categories, the revenues FROM ALL SOURCES and expenditures INCLUDING THE
 SALARY  OF  THE  SCHOOL  LEADER  AND ANY OTHER SALARIES IN EXCESS OF THE
 REPORTING REQUIREMENTS FOR PUBLIC SCHOOL DISTRICTS CONTAINED IN  SECTION
 SIXTEEN  HUNDRED  EIGHT OF THIS TITLE AND CONTRACTS WITH CONSULTANTS AND
 VENDORS for the preceding school year, including  a  copy  of  the  most
 recent independent fiscal audit of the school and any audit conducted by
 the comptroller of the state of New York.
   (d)  efforts  taken by the charter school in the existing school year,
 and a plan for efforts to be taken in the  succeeding  school  year,  to
 meet  or  exceed  enrollment  and  retention targets set by the board of
 regents or the board of trustees of the state university of New York, as
 applicable, of students with disabilities,  English  language  learners,
 and  students who are eligible applicants for the free and reduced price
 lunch program established pursuant to paragraph (e) of subdivision  four
 of section twenty-eight hundred fifty-one of this article.
   3. The board of regents shall report annually BY DECEMBER FIRST to the
 governor,  the temporary president of the senate, and the speaker of the
 assembly AND THE PUBLIC the following information:
   (a) The number, distribution, and a brief description of  new  charter
 schools established during the preceding year;
   (a-1) A list including the number of charter schools closed during the
 preceding  year, and a brief description of the reasons therefor includ-
 ing, but not limited to, non-renewal of the charter or revocation of the
 charter;
   (b) The department's assessment of the current and projected  program-
 matic  and  fiscal impact of charter schools on the delivery of services
 by school districts;
   (c) The academic progress of students attending  charter  schools,  as
 measured  against  comparable  public and nonpublic schools with similar
 student population characteristics [wherever practicable];
   (d) A list of all actions taken by a charter entity on charter  appli-
 cation  and the rationale for the renewal or revocation of any charters;
 and
   (e) Any other information regarding charter schools that the board  of
 regents deems necessary INCLUDING INFORMATION ON BEST PRACTICES OF CHAR-
 TER SCHOOLS THAT IMPROVE STUDENT PERFORMANCE.
   The  format  for this annual report shall be developed in consultation
 with representatives of school districts and charter school officials.
   § 19. Subparagraph (v) of paragraph a of subdivision 7 of section 1608
 of the education law, as amended by chapter 514 of the laws of 2016,  is
 amended and a new subparagraph (vi) is added to read as follows:
 A. 3681                            10
 
   (v) the projected amount of the unappropriated unreserved fund balance
 that  will  be retained if the proposed budget is adopted, the projected
 amount of the reserved fund balance, the projected amount of the  appro-
 priated  fund  balance,  the  percentage of the proposed budget that the
 unappropriated  unreserved  fund balance represents, the actual unappro-
 priated unreserved fund balance retained in the school  district  budget
 for the preceding school year, and the percentage of the school district
 budget  for  the  preceding  school  year that the actual unappropriated
 unreserved fund balance represents, and a  schedule  of  reserve  funds,
 setting  forth  the  name  of  each  reserve  fund, a description of its
 purpose, the balance as of the close of the third quarter of the current
 school district fiscal year and a brief statement explaining  any  plans
 for  the  use  of each such reserve fund for the ensuing fiscal year[.];
 AND
   (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
 THE NEXT SCHOOL YEAR.
   § 20. Subparagraph (v) of paragraph a of subdivision 7 of section 1716
 of the education law, as amended by chapter 514 of the laws of 2016,  is
 amended and a new subparagraph (vi) is added to read as follows:
   (v) the projected amount of the unappropriated unreserved fund balance
 that  will  be retained if the proposed budget is adopted, the projected
 amount of the reserved fund balance, the projected amount of the  appro-
 priated  fund  balance,  the  percentage of the proposed budget that the
 unappropriated unreserved fund balance represents, the  actual  unappro-
 priated  unreserved  fund balance retained in the school district budget
 for the preceding school year, a  schedule  of  reserve  funds,  setting
 forth  the  name of each reserve fund, a description of its purpose, the
 balance as of the close of the  third  quarter  of  the  current  school
 district  fiscal year and a brief statement explaining any plans for the
 use of each such reserve fund  for  the  ensuing  fiscal  year  and  the
 percentage  of  the school district budget for the preceding school year
 that the actual unappropriated unreserved  fund  balance  represents[.];
 AND  (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS
 IN THE NEXT SCHOOL YEAR.
   § 21. Paragraph t of subdivision 1 of section 3602  of  the  education
 law is amended by adding a new closing paragraph to read as follows:
   NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  LAW  TO  THE CONTRARY, IN
 COMPUTING APPROVED OPERATING EXPENSE PURSUANT TO THIS PARAGRAPH FOR CITY
 SCHOOL DISTRICTS OF THOSE CITIES HAVING A POPULATION IN  EXCESS  OF  ONE
 HUNDRED  TWENTY-FIVE THOUSAND BUT LESS THAN ONE MILLION; AN AMOUNT EQUAL
 TO (I) THE AMOUNT COMPUTED FOR THE SCHOOL DISTRICT FOR THE TWO  THOUSAND
 SIX--TWO THOUSAND SEVEN SCHOOL YEAR PURSUANT TO FORMER SUBDIVISION THIR-
 TY-SEVEN  OF THIS SECTION AS THIS SECTION EXISTED ON JUNE THIRTIETH, TWO
 THOUSAND SEVEN, (II) THE STATE FUNDS WHICH SUCH DISTRICT RECEIVED IN THE
 TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR  MAGNET  SCHOOL
 GRANTS  TO PUBLIC SCHOOLS, AND (III) THE STATE FUNDS WHICH SUCH DISTRICT
 RECEIVED IN THE TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR
 TEACHER  SUPPORT,  SHALL BE ACCOUNTED FOR IN THE SAME WAY AS STATE FUNDS
 RECEIVED FOR SUCH PURPOSE IN THE TWO THOUSAND  SIX--TWO  THOUSAND  SEVEN
 SCHOOL YEAR.
   §  22. This act shall take effect immediately; provided, however, that
 the amendments to subdivision 1 of section 2856  of  the  education  law
 made by section seventeen of this act shall not affect the expiration of
 such subdivision and shall expire therewith.