STATE OF NEW YORK ________________________________________________________________________ 6578 2017-2018 Regular Sessions IN SENATE June 5, 2017 ___________ Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the education law and the state finance law, in relation to charter schools The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 2851 of the education law, as 2 amended by chapter 101 of the laws of 2010, is amended to read as 3 follows: 4 1. An application to establish a charter school may be submitted by 5 teachers, parents, school administrators, community residents or any 6 combination thereof. Such application may be filed in conjunction with 7 a college, university, museum, educational institution, not-for-profit 8 corporation exempt from taxation under paragraph 3 of subsection (c) of 9 section 501 of the internal revenue code or for-profit business or 10 corporate entity authorized to do business in New York state. Provided 11 however, for-profit business or corporate entities shall not be eligible 12 to submit an application to establish a charter school pursuant to 13 subdivision nine-a of section twenty-eight hundred fifty-two of this 14 article, or operate or manage a charter school for a charter issued 15 pursuant to subdivision nine-a of section twenty-eight hundred fifty-two 16 of this article. For charter schools established in conjunction with a 17 for-profit or not-for-profit business or corporate entity, the charter 18 shall specify the extent of the entity's participation in the management 19 and operation of the school. 20 § 2. Paragraph (h) of subdivision 2 of section 2851 of the education 21 law, as added by chapter 4 of the laws of 1998, is amended to read as 22 follows: 23 (h) The rules and procedures by which students may be disciplined[, 24 ~~including but not limited to expulsion or suspension from the school,~~ 25 ~~which shall be consistent with the requirements of due process and with~~ EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11858-01-7

S. 6578 2 1 ~~federal laws and regulations governing the placement of students with~~ 2 ~~disabilities~~] shall be in accordance with the provisions of subdivisions 3 two-a, three and three-a of section thirty-two hundred fourteen of this 4 chapter. The charters of all charter schools that were issued on or 5 before July first, two thousand seventeen shall be deemed amended to 6 require compliance with the procedures set forth in subdivisions two-a, 7 three and three-a of section thirty-two hundred fourteen of this 8 chapter. 9 § 3. Paragraph (e) of subdivision 4 of section 2851 of the education 10 law, as added by chapter 101 of the laws of 2010, is amended to read as 11 follows: 12 (e) The means by which the charter school will meet or exceed the 13 enrollment [~~and retention targets as prescribed by the board of regents~~ 14 ~~or the board of trustees of the state university of New York, as appli-~~ 15 ~~cable, of students with disabilities, English language learners, and~~ 16 ~~students who are eligible applicants for the free and reduced price~~ 17 ~~lunch program which shall be considered by the charter entity prior to~~ 18 ~~approving such charter school's application for renewal. When developing~~ 19 ~~such targets, the board of regents and the board of trustees of the~~ 20 ~~state university of New York shall ensure (1) that such enrollment~~ 21 ~~targets are comparable to the enrollment figures of such categories of~~ 22 ~~students attending the public schools within the school district, or in~~ 23 ~~a city school district in a city having a population of one million or~~ 24 ~~more inhabitants, the community school district, in which the charter~~ 25 ~~school is located; and (2) that such retention targets are comparable to~~ 26 ~~the rate of retention of such categories of students attending the~~ 27 ~~public schools within the school district, or in a city school district~~ 28 ~~in a city having a population of one million or more inhabitants, the~~ 29 ~~community school district, in which the proposed charter school would be~~ 30 ~~located~~] requirements of subparagraph (ii) of paragraph (b) of subdivi- 31 sion two of section two thousand eight hundred fifty-four of this arti- 32 cle. 33 § 4. Subdivision 2 of section 2852 of the education law, as amended by 34 section 2 of part D-2 of chapter 57 of the laws of 2007, is amended to 35 read as follows: 36 2. An application for a charter school shall not be approved unless 37 the charter entity finds in writing that: 38 (a) the charter school described in the application meets the require- 39 ments set out in this article and all other applicable laws, rules and 40 regulations; 41 (b) the applicant can demonstrate the ability to operate the school in 42 an educationally and fiscally sound manner; 43 (c) granting the application is likely to improve student learning and 44 achievement and materially further the purposes set out in subdivision 45 two of section twenty-eight hundred fifty of this article; and 46 (d) in a school district where the total enrollment of resident 47 students attending charter schools in the base year is greater than five 48 percent of the total public school enrollment of the school district in 49 the base year (i) granting the application would have a significant 50 educational benefit to the students expected to attend the proposed 51 charter school [or] and (ii) the school district in which the charter 52 school will be located consents to such application. 53 In reviewing applications, the charter entity is encouraged to give 54 preference to applications that demonstrate the capability to provide 55 comprehensive learning experiences to students identified by the appli- 56 cants as at risk of academic failure. Upon making a determination of

S. 6578 3 1 whether an application for a charter school shall be approved, the char- 2 ter entity shall provide detailed written findings related to each of 3 the requirements in this subdivision, which shall be made available to 4 the charter school applicant, board of regents and the school district 5 in which the proposed charter school would be located. 6 § 5. Subdivision 5 of section 2852 of the education law, as amended by 7 chapter 101 of the laws of 2010, is amended to read as follows: 8 5. (a) Upon approval of an application by a charter entity, the appli- 9 cant and charter entity shall enter into a proposed agreement allowing 10 the applicants to organize and operate a charter school. Such written 11 agreement, known as the charter, shall include [~~(a)~~] (i) the information 12 required by subdivision two of section twenty-eight hundred fifty-one of 13 this article, as modified or supplemented during the approval process, 14 [~~(b)~~] (ii) in the case of charters to be issued pursuant to subdivision 15 nine-a of this section, information required by such subdivision, [~~(c)~~] 16 (iii) a provision prohibiting the charter school from entering into, 17 renewing or extending any agreement with a for-profit or not-for-profit 18 corporate or other business entity for the administration, management or 19 operation of the charter school unless the agreement requires such enti- 20 ty to provide state and local officers having the power to audit the 21 charter school pursuant to this article with access to the entity's 22 records relating to the costs of, and fees for, providing such services 23 to the school, (iv) any other terms or conditions required by applicable 24 laws, rules and regulations, and [~~(d)~~] any other terms or conditions, 25 not inconsistent with law, agreed upon by the applicant and the charter 26 entity. In addition, the charter shall include the specific commitments 27 of the charter entity relating to its obligations to oversee and super- 28 vise the charter school. Within five days after entering into a proposed 29 charter, the charter entity other than the board of regents shall submit 30 to the board of regents a copy of the charter, the application and 31 supporting documentation for final approval and issuance by the board of 32 regents in accordance with subdivisions five-a and five-b of this 33 section. 34 (b) No charter school having a charter that was issued and approved on 35 or before the effective date of this paragraph shall enter into, renew 36 or extend the duration of any agreement with a for-profit or not-for- 37 profit corporate or other business entity for the administration, 38 management or operation of the charter school unless the agreement 39 requires such entity to provide state and local officers having the 40 power to audit the charter school pursuant to this article with access 41 to the entity's records relating to the costs of, and fees for, provid- 42 ing such services to the school. Any agreement entered into, renewed or 43 extended in violation of this section shall be null, void and wholly 44 unenforceable, and a violation of this section shall be grounds for 45 revocation or termination of a charter pursuant to section twenty-eight 46 hundred fifty-five of this article. 47 § 6. Subparagraph (i) of paragraph (b) of subdivision 9-a of section 48 2852 of the education law, as amended by section 2 of subpart A of part 49 B of chapter 20 of the laws of 2015, is amended to read as follows: 50 (i) that the proposed charter school would meet or exceed the enroll- 51 ment [~~and retention targets, as prescribed by the board of regents or~~ 52 ~~the board of trustees of the state university of New York, as applica-~~ 53 ~~ble, of students with disabilities, English language learners, and~~ 54 ~~students who are eligible applicants for the free and reduced price~~ 55 ~~lunch program. When developing such targets, the board of regents and~~ 56 ~~the board of trustees of the state university of New York, shall ensure~~

S. 6578 4 1 ~~(1) that such enrollment targets are comparable to the enrollment~~ 2 ~~figures of such categories of students attending the public schools~~ 3 ~~within the school district, or in a city school district in a city~~ 4 ~~having a population of one million or more inhabitants, the community~~ 5 ~~school district, in which the proposed charter school would be located;~~ 6 ~~and (2) that such retention targets are comparable to the rate of~~ 7 ~~retention of such categories of students attending the public schools~~ 8 ~~within the school district, or in a city school district in a city~~ 9 ~~having a population of one million or more inhabitants, the community~~ 10 ~~school district, in which the proposed charter school would be located~~] 11 requirements of subparagraph (ii) of paragraph (b) of subdivision two of 12 section two thousand eight hundred fifty-four of this article; and 13 § 7. Section 2853 of the education law is amended by adding a new 14 subdivision 2-b to read as follows: 15 2-b. In any case where a charter school enters into, renews or extends 16 any agreement with a for-profit or not-for-profit business or corporate 17 entity for the administration, management or operation of a charter 18 school, the charter school is required to have a formal contract with 19 such entity. Any such contract shall be reviewed and approved by the 20 charter entity. 21 § 8. Paragraph (a) of subdivision 3 of section 2853 of the education 22 law, as amended by chapter 101 of the laws of 2010, is amended to read 23 as follows: 24 (a) A charter school may be located in part of an existing public 25 school building, in space provided on a private work site, in a public 26 building or in any other suitable location. Provided, however, before a 27 charter school may be located in part of an existing public school 28 building, the charter entity shall provide notice to the parents or 29 guardians of the students then enrolled in the existing school building 30 and shall hold a public hearing for purposes of discussing the location 31 of the charter school. All contracts entered into by such charter 32 school, or any education corporation organized to operate a charter 33 school, or any other public entity, including the state, a public bene- 34 fit corporation, municipal corporation, or any private entity acting on 35 behalf of any of these entities, involving the construction, recon- 36 struction, demolition, excavation, rehabilitation, repair, renovation, 37 or alteration of any charter school facility shall be subject to the 38 requirements of section one hundred three of the general municipal law 39 and articles eight and nine of the labor law. A charter school may own, 40 lease or rent its space. 41 § 9. The opening paragraph and subparagraph 1 of paragraph (e) of 42 subdivision 3 of section 2853 of the education law, as added by section 43 5 of part BB of chapter 56 of the laws of 2014, are amended to read as 44 follows: 45 [In] Except as provided in subparagraph seven of this paragraph, a 46 city school district in a city having a population of one million or 47 more inhabitants, charter schools that first commence instruction or 48 that require additional space due to an expansion of grade level, pursu- 49 ant to this article, approved by their charter entity for the two thou- 50 sand fourteen--two thousand fifteen school year or thereafter and 51 request co-location in a public school building and demonstrates to the 52 city school district that the charter school does not have the financial 53 capacity to procure adequate facilities shall be provided access to 54 facilities pursuant to this paragraph for such charter schools that 55 first commence instruction or that require additional space due to an

S. 6578 5 1 expansion of grade level, pursuant to this article, approved by their 2 charter entity for those grades newly provided. 3 (1) Notwithstanding any other provision of law to the contrary, within 4 the later of (i) five months after a charter school's written request 5 for co-location and (ii) provided that a charter school demonstrates 6 that it lacks the financial capacity to procure adequate facilities, 7 thirty days after the charter school's charter is approved by its char- 8 ter entity, the city school district shall either: (A) offer at no cost 9 to the charter school a co-location site in a public school building 10 approved by the board of education as provided by law, or (B) offer the 11 charter school space in a privately owned or other publicly owned facil- 12 ity at the expense of the city school district and at no cost to the 13 charter school for three years. The space must be reasonable, appropri- 14 ate and comparable and in the community school district to be served by 15 the charter school and otherwise in reasonable proximity. 16 § 10. Paragraph (e) of subdivision 3 of section 2853 of the education 17 law is amended by adding a new subparagraph 7 to read as follows: 18 (7)(A) No charter school that, either alone or in combination with any 19 charter affiliate, has any direct or indirect interest in, or may be 20 entitled to receive any beneficial interest from, any asset or assets of 21 any kind or nature that alone or combined have a value exceeding one 22 million dollars, shall be offered or entitled to receive: (i) a co-lo- 23 cation site in a public school building at no cost; or (ii) a space in a 24 privately or publicly owned facility at the expense of the city school 25 district. 26 (B) Nothing in this subparagraph shall prohibit a charter school from 27 receiving a co-location in a public building at fair market value unless 28 doing so would negatively impact the size of classes in any other school 29 in the building. 30 (C) As used in this subparagraph the term "charter affiliate" means: 31 (i) any entity that is directly or indirectly controlled by, in control 32 of, or under common control with, the charter school or (ii) any entity 33 that provides management, fundraising or other administrative support 34 services to the charter school. 35 § 11. Paragraph (c) of subdivision 4 of section 2853 of the education 36 law, as amended by section 1 of part BB of chapter 56 of the laws of 37 2014, is amended to read as follows: 38 (c) A charter school may contract with the governing body of a public 39 college or university for the use of a school building and grounds, the 40 operation and maintenance thereof. Any such contract shall provide such 41 services or facilities at [~~cost~~] fair market value. [~~A school district~~ 42 ~~shall permit any charter school granted approval to co-locate, to use~~ 43 ~~such services and facilities without cost.~~] 44 § 12. Section 2853 of the education law is amended by adding a new 45 subdivision 5 to read as follows: 46 5. Disclosure. (a) A charter school shall report: 47 (i) by the fifteenth day of February of each calendar year, the name, 48 address and total compensation paid to each person serving as a charter 49 executive in the previous calendar year; and 50 (ii) within thirty days of receipt, the name and address of any indi- 51 vidual, corporation, association, or entity providing a contribution, 52 gift, loan, advance or deposit of one thousand dollars or more to the 53 charter school or charter affiliate and the amount of each such contrib- 54 ution, gift, loan, advance or deposit. 55 (b) If a charter school either alone or together with any charter 56 affiliate has any direct or indirect interest in, or may be entitled to

S. 6578 6 1 receive any beneficial interest in, any asset or assets of any kind or 2 nature, alone or together, with a value in excess of one million 3 dollars, the charter school shall: 4 (i) ensure that the financial statements of the charter school and 5 each charter affiliate conform to and are reported according to general- 6 ly accepted accounting principles; and 7 (ii) ensure that the financial statements of the charter school and 8 any charter affiliate are audited in accordance with generally accepted 9 auditing standards by an independent certified public accountant or an 10 independent public accountant, that such audit receives an "unqualified" 11 opinion as to, among other things, compliance with generally accepted 12 accounting principles and that such audit is completed within nine 13 months of the conclusion of the fiscal year. 14 (c) If a charter school either alone or together with any charter 15 affiliate has any direct or indirect interest in, or may be entitled to 16 receive any beneficial interest in, any asset or assets of any kind or 17 nature, alone or together, with a value in excess of one million 18 dollars, it shall also report by the fifteenth day of February of each 19 ensuing calendar year the following: 20 (i) the most recent audited financial statements of the charter school 21 and any charter affiliate which shall conform to and be reported accord- 22 ing to generally accepted accounting principles; 23 (ii) the most recent auditor's report on the financial statements of 24 the charter school and any charter affiliate; 25 (iii) the "unqualified" opinion received from the auditor of the most 26 recent financial statements as to, among other things, compliance with 27 generally accepted accounting principles; and 28 (iv) any compensation or remuneration, whether paid or given, includ- 29 ing but not limited to salary, bonus, and deferred compensation and any 30 benefit having monetary value, including but not limited to, perqui- 31 sites, fringe benefits, employer contributions to defined contribution 32 retirement plans and other retirement or severance benefits received by 33 a charter executive from any source. 34 (d)(i) Each report required by this subdivision shall be accompanied 35 by a statement, under oath, by the chairperson of the school's board of 36 trustees or other appropriate member of the board of trustees, that, 37 after the due inquiry, the reports are true and correct to the best of 38 his or her knowledge and have been provided to each member of the 39 school's board of trustees. 40 (ii) A charter school to which paragraphs (b) and (c) of this subdivi- 41 sion do not apply shall, by the fifteenth day of February of each calen- 42 dar year, submit a statement as part of its report pursuant to subpara- 43 graph (ii) of paragraph (a) of this subdivision, under oath, by the 44 chairperson of the school's board of trustees or other appropriate 45 member of the board of trustees, that, after the due inquiry, the char- 46 ter school either alone or together with any charter affiliate does not 47 have any direct or indirect interest in or may be entitled to receive 48 any beneficial interest in any asset or assets of any kind or nature, 49 alone or together, with a value in excess of one million dollars. 50 (e) Any report required pursuant to this subdivision shall be made to 51 the board of regents, the school's charter entity, and the comptroller 52 of the city of New York for charter schools located in New York city and 53 the comptroller of the state of New York for charter schools located 54 outside of the city of New York. The commissioner shall ensure that such 55 report is made publicly available via the department's official internet 56 website within five days of its receipt.

S. 6578 7 1 (f) A charter school's failure to comply with the provisions of this 2 subdivision shall be a very significant factor in determining whether 3 the charter entity or the board of regents terminates the school's char- 4 ter. 5 (g) As used in this subdivision: 6 (i) "total compensation" shall include: (A) any compensation or remun- 7 eration, whether paid or given, by or on behalf of the charter school or 8 any charter affiliate, for services rendered to, on behalf of, or at the 9 request of the charter school, including but not limited to salary, 10 bonus, and deferred compensation and (B) any benefit having monetary 11 value provided by or on behalf of the charter school or any charter 12 affiliate, including but not limited to, perquisites, fringe benefits, 13 employer contributions to defined contribution retirement plans and 14 other retirement or severance benefits. 15 (ii) "charter affiliate" means: (A) any entity that is, directly or 16 indirectly, controlled by, in control of, or under common control with 17 the charter school or (B) any entity or affiliate thereof that provides 18 management, fundraising, or other administrative support services to the 19 charter school. 20 (iii) "charter executive" means: (A) an officer, director, trustee, 21 consultant, supervisory employee of a charter school or charter affil- 22 iate or (B) anyone who exerts operational or managerial influence or 23 control over the school including, but not limited to, influence or 24 control over the school through a charter management company. 25 § 13. Section 2853 of the education law is amended by adding a new 26 subdivision 6 to read as follows: 27 6. Executive compensation. (a) No charter school shall provide any 28 compensation to any individual who is also an officer, director, trus- 29 tee, consultant, or employee of a charter affiliate or to any individual 30 who exerts operational or managerial influence or control over the 31 school through a charter affiliate. 32 (b)(i) No charter school or charter affiliate shall permit the total 33 compensation received by a charter executive to be greater than one 34 hundred ninety-nine thousand dollars per annum, including not only state 35 funds and state-authorized payments but also any other sources of fund- 36 ing, and greater than the seventy-fifth percentile of that compensation 37 provided to charter executives of other charter schools and charter 38 affiliates within the same or comparable geographic area as established 39 by a compensation survey identified, provided, or recognized by the 40 department and the director of the division of the budget. 41 (ii) If the department and the director of the division of the budget 42 find good cause after considering the factors set forth in subparagraph 43 (iv) of this paragraph, a waiver of the limit on total compensation that 44 a charter executive may receive may be granted, provided, however, that 45 in no event shall the total compensation exceed one hundred and fifty 46 percent of Level I of the federal government's Rates of Basic Pay for 47 the Executive Schedule promulgated by the United States Office of 48 Personnel Management. 49 (iii) The application for a waiver must be filed no later than the 50 fifteenth day of February of the year for which the waiver is sought. 51 The application shall be transmitted in the manner and form specified by 52 the department and the director of the division of the budget. A waiver 53 may be only for the single calendar year in which it is granted. 54 (iv) The following factors, in addition to any other deemed relevant 55 by the department and the director of the division of the budget, shall

S. 6578 8 1 be considered in the determination of whether good cause exists to grant 2 a waiver: 3 (A) the extent to which the executive compensation that is the subject 4 of the waiver request is comparable to that given to comparable charter 5 executives of charter schools or charter affiliates of the same size and 6 within the same or comparable geographic area; 7 (B) the extent to which the charter school would be unable to provide 8 educational services at the same levels of quality and availability 9 without a waiver of the limit on total compensation that a charter exec- 10 utive may receive; 11 (C) the nature, size, and complexity of the charter school or charter 12 affiliate's operations; 13 (D) the charter school or charter affiliate's review and approval 14 process for the total compensation that is the subject of the waiver, 15 including whether such process involved a review and approval by the 16 board of trustees of the school, whether such review was conducted by at 17 least two independent directors or independent members of the board of 18 trustees, whether such review included an assessment of comparability 19 data including a compensation survey, and a contemporaneous substanti- 20 ation of the deliberation and decision to approve the total compen- 21 sation; 22 (E) the qualifications and experience possessed by or required for the 23 charter executive's position; and 24 (F) the charter school or charter affiliate's efforts, if any, to 25 secure a charter executive with the same levels of experience, exper- 26 tise, and skills for the position of the charter executive at lower 27 levels of compensation. 28 (v) To be considered, an application for such a waiver shall comply 29 with this paragraph in its entirety. 30 (vi) Unless additional information has been requested but not received 31 from the charter school or charter affiliate, a decision on a timely 32 submitted waiver application shall be provided no later than sixty 33 calendar days after submission of the application. 34 (vii) If granted, a waiver to a charter executive shall remain in 35 effect for the calendar year it is issued in, but shall be deemed 36 revoked if: 37 (A) the total compensation that is the subject of the waiver 38 increases; or 39 (B) notice of revocation is provided to the charter executive at the 40 discretion of the department as a result of additional relevant circum- 41 stances. 42 (viii) Information provided in connection with a waiver application 43 shall be subject to public disclosure pursuant to article six of the 44 public officers law. 45 (ix) Where a waiver is granted, the department shall make it publicly 46 available via the department's official internet website within five 47 days. 48 (c) No charter school shall use funds received pursuant to section 49 twenty-eight hundred fifty-six of this article or allow a charter affil- 50 iate to use funds received from the charter school to provide a total 51 compensation to a charter executive greater than one hundred ninety-nine 52 thousand dollars per annum. 53 (d) Failure to comply with the provisions of this subdivision shall 54 result in the assessment of a penalty against the payor in an amount 55 equal to the amount of compensation paid or provided in violation of 56 this subdivision.

S. 6578 9 1 (e) A charter school's failure to comply with the provisions of this 2 subdivision shall be a very significant factor in determining whether 3 the charter entity or the board of regents terminates the school's char- 4 ter. 5 (f) As used in this subdivision: 6 (i) "total compensation" shall include: (A) any compensation or remun- 7 eration, whether paid or given, by or on behalf of the charter school or 8 any charter affiliate, for services rendered to, on behalf of, or at the 9 request of the charter school, including but not limited to salary, 10 bonus, and deferred compensation and (B) any benefit having monetary 11 value provided by or on behalf of the charter school or any charter 12 affiliate, including but not limited to, perquisites, fringe benefits, 13 employer contributions to defined contribution retirement plans and 14 other retirement or severance benefits. 15 (ii) "charter affiliate" means: (A) any entity that is, directly or 16 indirectly, controlled by, in control of, or under common control with 17 the charter school or (B) any entity or affiliate thereof that provides 18 management, fundraising, or other administrative support services to the 19 charter school. 20 (iii) "charter executive" means: (A) an officer, director, trustee, 21 consultant, supervisory employee of a charter school or charter affil- 22 iate or (B) anyone who exerts operational or managerial influence or 23 control over the school including, but is not limited to, influence or 24 control over the school through a charter management company. 25 § 14. Section 2853 of the education law is amended by adding a new 26 subdivision 7 to read as follows: 27 7. Notification of disenrollment. Within five business days of a 28 student who was enrolled by the charter school ceasing to be enrolled, a 29 charter school shall notify the superintendent of the district in which 30 the charter school is located or, for charter schools located within the 31 geographic area served by the city school district of the city of New 32 York, the chancellor of the city school district of the city of New 33 York, of the name of such student. 34 § 15. Subparagraph 5 of paragraph (e) of subdivision 3 of section 2853 35 of the education law, as amended by section 11 of part A of chapter 54 36 of the laws of 2016, clause (B) as amended by section 5 of part YYY of 37 chapter 59 of the laws of 2017, is amended to read as follows: 38 (5) For a new charter school whose charter is granted or for an exist- 39 ing charter school whose expansion of grade level, pursuant to this 40 article, is approved by their charter entity, if the appeal results in a 41 determination in favor of the charter school, for six years the city 42 school district shall pay the charter school (A) for the initial three 43 years in which aid is payable, an amount attributable to the grade level 44 expansion or the formation of the new charter school that is equal to 45 the lesser of: 46 [~~(A)~~] (i) the actual rental cost of an alternative privately owned 47 site selected by the charter school or 48 [~~(B)~~] (ii) thirty percent of the product of the charter school's basic 49 tuition for the current school year and [~~(i)~~] (I) for a new charter 50 school that first commences instruction on or after July first, two 51 thousand fourteen, the charter school's current year enrollment; or 52 [~~(ii)~~] (II) for a charter school which expands its grade level, pursuant 53 to this article, the positive difference of the charter school's enroll- 54 ment in the current school year minus the charter school's enrollment in 55 the school year prior to the first year of the expansion; and

S. 6578 10 1 (B) in the fourth year, the city school district shall pay ninety 2 percent multiplied by the amount calculated pursuant to clause (A) of 3 this subparagraph; and 4 (C) in the fifth year, the city school district shall pay sixty 5 percent multiplied by the amount calculated pursuant to clause (A) of 6 this subparagraph; and 7 (D) in the sixth year, the city school district shall pay thirty 8 percent multiplied by the amount calculated pursuant to clause (A) of 9 this subparagraph. 10 § 16. Paragraph (b) of subdivision 1 of section 2854 of the education 11 law, as amended by section 10-b of part A of chapter 56 of the laws of 12 2014, is amended to read as follows: 13 (b) A charter school shall meet the same health and safety, civil 14 rights, and student assessment requirements applicable to other public 15 schools, except as otherwise specifically provided in this article. A 16 charter school shall be exempt from all other state and local laws, 17 rules, regulations or policies governing public or private schools, 18 boards of education, school districts and political subdivisions, 19 including those relating to school personnel and students, except as 20 specifically provided in the school's charter or in this article. Noth- 21 ing in this subdivision shall affect the requirements of compulsory 22 education of minors established by part one of article sixty-five of 23 this chapter, nor shall anything in this subdivision affect the require- 24 ments of the charter school to comply with section one hundred three of 25 the general municipal law and articles eight and nine of the labor law 26 with respect to the construction, reconstruction, demolition, exca- 27 vation, rehabilitation, repair, renovation, or alteration of any charter 28 school facility. 29 § 17. Subdivision 2 of section 2854 of the education law, as added by 30 chapter 4 of the laws of 1998, paragraph (a) as amended by chapter 101 31 of the laws of 2010, and paragraph (b) as amended by section 3 of 32 subpart A of part B of chapter 20 of the laws of 2015, is amended to 33 read as follows: 34 2. Admissions; enrollment; students. (a) A charter school shall be 35 nonsectarian in its programs, admission policies, employment practices, 36 and all other operations and shall not charge tuition or fees; provided 37 that a charter school may require the payment of fees on the same basis 38 and to the same extent as other public schools. A charter school shall 39 not discriminate against any student, employee or any other person on 40 the basis of ethnicity, national origin, gender, or disability or any 41 other ground that would be unlawful if done by a school. Admission of 42 students shall not be limited on the basis of intellectual ability, 43 measures of achievement or aptitude, athletic ability, disability, race, 44 creed, gender, national origin, religion, or ancestry; provided, howev- 45 er, that nothing in this article shall be construed to prevent the 46 establishment of a single-sex charter school or a charter school 47 designed to provide expanded learning opportunities for students at-risk 48 of academic failure or students with disabilities and English language 49 learners; and provided, further, that the charter school shall demon- 50 strate good faith efforts to attract and retain [~~a comparable~~] an equal 51 or greater enrollment of students with disabilities, English language 52 learners, and students who are eligible applicants for the free and 53 reduced price lunch program when compared to the enrollment figures for 54 such students in the school district in which the charter school is 55 located. A charter shall not be issued to any school that would be whol- 56 ly or in part under the control or direction of any religious denomi-

S. 6578 11 1 nation, or in which any denominational tenet or doctrine would be 2 taught. 3 (b) (i) Any child who is qualified under the laws of this state for 4 admission to a public school is qualified for admission to a charter 5 school. Applications for admission to a charter school shall be submit- 6 ted on a uniform application form created by the department and shall be 7 made available by a charter school in languages predominately spoken in 8 the community in which such charter school is located. [~~The~~] 9 (ii) A charter school shall enroll and continually keep enrolled the 10 minimum number of students in each of the following categories: (A) 11 students who are English language learners as defined in regulations of 12 the commissioner, (B) students who receive or are mandated to receive 13 any special education service, (C) students who have individual educa- 14 tion plans that mandate they receive services for at least sixty percent 15 of the school day outside the general education setting, (D) students 16 who are eligible to receive free lunch in accordance with title I of the 17 elementary and secondary education act, and (E) students who reside in 18 temporary or transitional housing. The minimum number of students a 19 charter school must enroll and continually keep enrolled in each such 20 category shall be the number of students that, as a percentage of the 21 students authorized to be served by the charter school in its charter, 22 is equal to the percentage of students in each category that non-charter 23 public schools in the district where the charter school is located 24 enrolled in the preceding June in all of the grades combined which are 25 served by the charter school. For purposes of this subparagraph, for the 26 city school district of the city of New York, district shall mean the 27 community school district and shall include all non-charter public 28 schools, except those in district seventy-five, geographically located 29 in the community school district. 30 (iii) Prior to a charter school selecting or enrolling students for 31 the next school year, the commissioner shall provide the charter school 32 with the minimum number of students it must enroll and continually keep 33 enrolled in each category pursuant to subparagraph (ii) of this para- 34 graph. The minimum number of students each charter school must enroll 35 and continually keep enrolled in each category pursuant to subparagraph 36 (ii) of this paragraph shall be made public by the commissioner no later 37 than five business days after it has been provided to the charter 38 school. 39 (iv) A charter school shall enroll each eligible student who submits a 40 timely application by the first day of April each year[,] unless the 41 number of applications exceeds the capacity of the grade level or build- 42 ing or would cause the charter school to be below the minimum number of 43 students it must enroll and continually keep enrolled in each category 44 pursuant to subparagraph (ii) of this paragraph. In such cases, students 45 shall be accepted from among applicants by a random selection process, 46 provided[~~, however,~~] that separate random selection processes shall be 47 conducted for students that are not in any category set forth in subpar- 48 agraph (ii) of this paragraph and for students in each category set 49 forth in subparagraph (ii) of this paragraph such that a charter school 50 enrolls at least the minimum number of students required pursuant to 51 subparagraph (ii) of this paragraph. 52 (v) Where a charter school does not enroll the minimum number of 53 students it must enroll and continually keep enrolled in each category 54 set forth in subparagraph (ii) of this paragraph, the charter school 55 shall hold open a sufficient number of enrollment spaces such that it is 56 possible for the charter school, consistent with its charter, to subse-

S. 6578 12 1 quently enroll the number of students required by subparagraph (ii) of 2 this paragraph. 3 (vi) A charter school may provide an enrollment preference [~~shall be~~ 4 ~~provided~~] to pupils returning to the charter school in the second or any 5 subsequent year of operation and pupils residing in the school district 6 in which the charter school is located, and siblings of pupils already 7 enrolled in the charter school provided that the charter school enrolls 8 and continually keeps enrolled the minimum number of students required 9 in each category pursuant to subparagraph (ii) of this paragraph and 10 holds open the number of enrollment spaces as required by subparagraph 11 (v) of this paragraph. Preference may also be provided to children of 12 employees of the charter school or charter management organization, 13 provided that the charter school enrolls and continually keeps enrolled 14 the minimum number of students required in each category pursuant to 15 subparagraph (ii) of this paragraph and holds open the number of enroll- 16 ment spaces as required by subparagraph (v) of this paragraph and 17 provided further that such children of employees may constitute no more 18 than fifteen percent of the charter school's total enrollment. 19 (vii) For purposes of this paragraph, if a student withdraws from a 20 charter school as a result of a voluntary decision of the student's 21 parent or guardian and, as a direct result, the charter school no longer 22 has the minimum number of students in each category required pursuant to 23 subparagraph (ii) of this paragraph, the charter school shall neverthe- 24 less be considered to have continually kept enrolled the minimum number 25 of students required by subparagraph (ii) of this paragraph if, within 26 thirty days of the student being withdrawn, the charter school replaces 27 the student that was withdrawn with a different student such that the 28 charter school has the minimum number of students in each category 29 required pursuant to subparagraph (ii) of this paragraph, provided 30 however, that this subparagraph shall not apply (A) if the charter 31 school was already in violation of the requirements of subparagraph (ii) 32 of this paragraph at the time the student was withdrawn or (B) if the 33 decision of the student's parent or guardian was substantially motivated 34 by any action or inaction of the charter school, or any of its agents or 35 employees, that was in violation of any law, rule, or regulation. 36 (viii) (A) A charter school shall report the names of any parents or 37 guardians of students who are on a waitlist for enrollment in the char- 38 ter school to the superintendent of the district in which the charter 39 school is located or, for charter schools located within the geographic 40 area served by the city school district of the city of New York, the 41 chancellor of the city school district of the city of New York, whether 42 each such student is in one of the categories set forth in subparagraph 43 (ii) of this paragraph and, if so, which one. 44 (B) A charter school that, at any time, does not have enrolled the 45 minimum number of students required in each category pursuant to subpar- 46 agraph (ii) of this paragraph shall notify the superintendent of the 47 district in which the charter school is located or, for charter schools 48 located within the geographic area served by the city school district of 49 the city of New York, the chancellor of the city school district of the 50 city of New York, within five days of the date of the school being below 51 the minimum number of students. A separate notification shall be 52 provided each time a charter school's enrollment falls below the minimum 53 in any category pursuant to subparagraph (ii) of this paragraph. 54 (C) Where the superintendent of the district or the chancellor of the 55 city school district of the city of New York receives notification 56 pursuant to clause (B) of this subparagraph, he or she shall first offer

S. 6578 13 1 the enrollment spaces to any parents or guardians of students who are in 2 a category in which the charter school is below the minimum set forth in 3 subparagraph (ii) of this paragraph who are on the school's waitlist, 4 then to any parents or guardians of students who are in a category in 5 which the charter school is below the minimum set forth in subparagraph 6 (ii) of this paragraph who are on the waitlist of another charter school 7 in the district in which the charter school is located or, for charter 8 schools located within the geographic area served by the city school 9 district of the city of New York geographically located in the community 10 school district, and then to any other parents or guardians of students 11 who are in a category in which the charter school is below the minimum 12 set forth in subparagraph (ii) of this paragraph who reside in the 13 district; such process of enrollment offers shall continue until the 14 charter school is no longer below such minimum in any category or such 15 superintendent or chancellor certifies there are no such students seek- 16 ing enrollment. 17 (D) Offers made pursuant to this subparagraph shall be made in writing 18 in the parent or guardian's primary language. Where an offer is made 19 pursuant to this subparagraph and the parent or guardian accepts, the 20 charter school shall enroll the student within five calendar days of the 21 offer being accepted. 22 (ix) (A) For each month during the school year, a charter school shall 23 report the number of students then enrolled, as of the first day of the 24 month, in each category set forth in subparagraph (ii) of this paragraph 25 and the number of students then enrolled, as of the first day of the 26 month, that are in none of the categories set forth in subparagraph (ii) 27 of this paragraph. 28 (B) Reports pursuant to this subparagraph shall be made to the board 29 of regents, the school's charter entity, the comptroller of the city of 30 New York for charter schools located in New York city and the comp- 31 troller of the state of New York for charter schools located outside of 32 the city of New York, and the superintendent of the district in which 33 the charter school is located or, for charter schools located within the 34 geographic area served by the city school district of the city of New 35 York, the chancellor of the city school district of the city of New 36 York. The commissioner shall ensure that such report is made publicly 37 available via such department's official internet website within five 38 days of its receipt. 39 (C) Reports pursuant to this subparagraph shall be made on the fifth 40 day of the ensuing month during the school year and shall be accompanied 41 by a statement, under oath, by the chairperson of the school's board of 42 trustees or other appropriate member of the board of trustees, that, 43 after the due inquiry, the reports are true and correct and have been 44 provided to each member of the school's board of trustees. 45 (x) The commissioner shall establish regulations to require that the 46 random selection [~~process~~] processes conducted pursuant to this para- 47 graph be performed in a transparent and equitable manner and to require 48 that the time and place of the random selection process be publicized in 49 a manner consistent with the requirements of section one hundred four of 50 the public officers law and be open to the public. [~~For~~] Except where 51 another definition is provided, for the purposes of this paragraph and 52 paragraph (a) of this subdivision, the school district in which the 53 charter school is located shall mean, for the city school district of 54 the city of New York, the community district in which the charter school 55 is located.

S. 6578 14 1 (xi) The commissioner may, by regulation, require the board of educa- 2 tion of each school district or the chancellor of the city school 3 district of the city of New York to provide to him or her such informa- 4 tion as is necessary to calculate the minimum number of students a char- 5 ter school must enroll and continually have enrolled pursuant to subpar- 6 agraph (ii) of this paragraph. Such information shall be made public by 7 the commissioner within five business days of receipt. 8 (xii)(A) If a charter school fails to enroll the number of students 9 required by subparagraph (ii) of this paragraph the appropriate school 10 district shall withhold from the charter school's funding an amount 11 equal to the additional per pupil funding the charter school would have 12 received had each student not enrolled as required by subparagraph (ii) 13 of this paragraph been enrolled. 14 (B) Money withheld by the school district in accordance with this 15 subparagraph shall be returned to the commissioner for distribution to 16 each of the school districts, using an equitable formula determined by 17 the commissioner, provided the charter school or schools from which the 18 monies are withheld shall not be entitled to the return of any money 19 withheld pursuant to this subparagraph or any additional monies as a 20 result of the commissioner's distribution of funds pursuant to this 21 subparagraph. 22 (xiii) (A) No charter school shall first commence instruction if it is 23 operated by, managed by, affiliated with, in the same chain as, shares 24 the same management company as, or has any common charter applicant as, 25 a school that has been in violation, within the last two years, of the 26 enrollment requirements of subparagraph (ii) of this paragraph. 27 (B) No charter school shall expand beyond the grades with enrolled 28 students, even if such expansion is authorized by its charter, if it has 29 been in violation, within the last two years, of the enrollment require- 30 ments of subparagraph (ii) of this paragraph. 31 (C) A charter school that does not have enrolled the minimum number of 32 students as required by subparagraph (ii) of this paragraph shall not be 33 offered or entitled pursuant to paragraph (e) of subdivision three of 34 section two thousand eight hundred fifty-three of this article (1) a 35 co-location site in a public school building at no cost or (2) space in 36 a privately owned or other publicly owned facility at the expense of the 37 city school district. A charter school that has already been co-located 38 in a public school building or given space in a privately owned or other 39 publicly owned facility pursuant to this paragraph and then fails to 40 continually have enrolled the required minimum number of students shall 41 be required to pay the fair market value of such space for such period 42 of time of non-compliance. 43 (xiv) The provisions of this paragraph shall be enforceable by the 44 commissioner or by a court of competent jurisdiction. Any employee of 45 the school district in which the charter school is located or the parent 46 or guardian of a student attending the district in which the charter 47 school is located shall have standing to enforce the provisions of this 48 paragraph. 49 (xv) A charter school's failure to comply with the provisions of this 50 paragraph shall be a very significant factor in determining whether the 51 charter entity or the board of regents terminates the school's charter. 52 (b-1) Prior to submission of enrollment counts to a school district 53 pursuant to subdivision one of section twenty-eight hundred fifty-six of 54 this article, on or after October first of the two thousand seventeen-- 55 two thousand eighteen school year and October first of each school year 56 thereafter, a charter school shall determine whether that school

S. 6578 15 1 district is the school district of residence of each student for whom 2 enrollment is claimed. Such residency determination shall be made in 3 accordance with the regulations of the commissioner and the residency 4 policy of the school district in which the charter school is located, 5 provided that the charter school may fulfill such requirement by requir- 6 ing that the parents or other persons in parental relation register 7 their child with the school district they have identified as their 8 school district of residence. Notwithstanding any other provision of 9 law to the contrary, the parents or other persons in parental relation 10 shall not be required to annually prove their continued residency, 11 provided that they either annually certify to the charter school and the 12 school district of residence that their residency has not changed or 13 notify the charter school and the school district that their residency 14 has changed and that a new school district of residence should be iden- 15 tified pursuant to this paragraph. Upon making a residency determi- 16 nation, a charter school making its own residency determination shall 17 promptly submit its proof of residence to the school district identified 18 as the district of residence for purposes of enrollment of the student 19 in such school district in accordance with subdivision one of section 20 twenty-eight hundred fifty-six of this article, and the provision of 21 services pursuant to subdivision four of section twenty-eight hundred 22 fifty-three of this article. In the event of a dispute over the residen- 23 cy of a student, the school district shall make its own residency deter- 24 mination pursuant to the regulations of the commissioner after consider- 25 ing the proof of residency submitted by the charter school, and such 26 determination may be appealed to the commissioner by the charter school 27 or by the parent or other person in parental relation or both pursuant 28 to section three hundred ten of this chapter. During the pendency of 29 such appeal, the student shall be deemed enrolled in the school 30 district, shall be entitled to services pursuant to subdivision four of 31 section twenty-eight hundred fifty-three of this article, and the school 32 district shall be liable for charter school tuition, provided that upon 33 a final determination in such appeal that the student is not a resident 34 of the school district, the school district may deduct the cost of such 35 tuition and services from future payments due the charter school. The 36 provisions of this paragraph shall not apply to charter schools located 37 in a city having a population of one million or more. 38 (c) A charter school shall serve one or more of the grades one through 39 twelve, and shall limit admission to pupils within the grade levels 40 served. Nothing herein shall prohibit a charter school from establishing 41 a kindergarten program. 42 (d) A student may withdraw from a charter school at any time and 43 enroll in a public school. [~~A charter school may refuse admission to any~~ 44 ~~student who has been expelled or suspended from a public school until~~ 45 ~~the period of suspension or expulsion from the public school has~~ 46 ~~expired, consistent with the requirements of due process~~] 47 (i) A student may only be disciplined, suspended or expelled from a 48 charter school in accordance with the applicable provisions of subdivi- 49 sions two-a, three, and three-a of section thirty-two hundred fourteen 50 of this chapter. Every charter school shall develop a code of conduct in 51 accordance with the provisions of section twenty-eight hundred one of 52 this title. 53 (ii) Every charter school shall submit a detailed annual report 54 regarding disciplinary measures imposed on students. The report shall be 55 submitted to the charter entity and the board of regents as part of the 56 annual report required pursuant to subdivision two of section twenty-

S. 6578 16 1 eight hundred fifty-seven of this article. The report shall be in a form 2 prescribed by the commissioner, and shall include, but not be limited 3 to, number of classroom removals, number of in-school suspensions, 4 number of out-of-school suspensions, number of expulsions, and the 5 action the student took that led to each disciplinary measure imposed. 6 Such data shall be disaggregated by race/ethnicity, status as a student 7 with a disability and status as an English language learner. The report 8 shall be posted on the department's website. 9 (iii) For the purposes of this subdivision: 10 (A) the term "superintendent," "superintendent of schools," "district 11 superintendent of schools," or "community superintendent," as used in 12 subdivision three of section thirty-two hundred fourteen of this chap- 13 ter, as such terms relate to charter schools shall mean the chairperson 14 of the board of trustees of the charter school or the chief school offi- 15 cer of the charter school; and 16 (B) the term "board of education" or "board," as used in subdivision 17 three of section thirty-two hundred fourteen of this chapter, as such 18 terms relate to charter schools shall mean the board of trustees of the 19 charter school. 20 § 18. Subdivision 1 of section 2855 of the education law, as amended 21 by chapter 101 of the laws of 2010, is amended to read as follows: 22 1. The charter entity, or the board of regents, may terminate a char- 23 ter upon any of the following grounds: 24 (a) When a charter school's outcome on student assessment measures 25 adopted by the board of regents falls below the level that would allow 26 the commissioner to revoke the registration of another public school, 27 and student achievement on such measures has not shown improvement over 28 the preceding three school years; 29 (b) [~~Serious violations~~] A violation of law; 30 (c) [~~Material and substantial~~] A violation of the charter[~~, including~~ 31 ~~fiscal mismanagement~~]; 32 (d) When the public employment relations board makes a determination 33 that the charter school [~~demonstrates a practice and pattern of egre-~~ 34 ~~gious and intentional violations of~~] has violated subdivision one of 35 section two hundred nine-a of the civil service law involving interfer- 36 ence with or discrimination against employee rights under article four- 37 teen of the civil service law; or the national labor relations board 38 created pursuant to subchapter II of chapter seven of title twenty-nine 39 of the United States Code, or any person or entity to whom the national 40 labor relations board has lawfully delegated its authority, makes a 41 determination that the charter school has violated section 158(a) of 42 title twenty-nine of the United States Code; or 43 (e) [~~Repeated failure to comply with the requirement to meet or exceed~~ 44 ~~enrollment and retention targets of students with disabilities, English~~ 45 ~~language learners, and students who are eligible applicants for the free~~ 46 ~~and reduced price lunch program pursuant to targets established by the~~ 47 ~~board of regents or the board of trustees of the state university of New~~ 48 ~~York, as applicable. Provided, however, if no grounds for terminating a~~ 49 ~~charter are established pursuant to this section other than pursuant to~~ 50 ~~this paragraph, and the charter school demonstrates that it has made~~ 51 ~~extensive efforts to recruit and retain such students, including~~ 52 ~~outreach to parents and families in the surrounding communities, widely~~ 53 ~~publicizing the lottery for such school, and efforts to academically~~ 54 ~~support such students in such charter school, then the charter entity or~~ 55 ~~board of regents may retain such charter.~~] Failure to comply with the

S. 6578 17 1 requirements of paragraph (b) of subdivision two of section two thousand 2 eight hundred fifty-four of this article; or 3 (f) Failure to comply with the data reporting requirements prescribed 4 in subdivisions two and two-a of section twenty-eight hundred fifty-sev- 5 en of this article. 6 § 19. Subdivision 3 of section 2855 of the education law, as added by 7 chapter 4 of the laws of 1998, is amended to read as follows: 8 3. (a) In addition to the provisions of subdivision two of this 9 section, the charter entity or the board of regents may place a charter 10 school falling within the provisions of subdivision one of this section 11 on probationary status to allow the implementation of a remedial action 12 plan. The failure of a charter school to comply with the terms and 13 conditions of a remedial action plan may result in summary revocation of 14 the school's charter. 15 (b) A charter school that is placed on probationary status shall annu- 16 ally notify the parents or guardians of all students and applicants of 17 the placement. The initial notice shall be distributed within two weeks 18 of being placed on probationary status. Such notice shall be written and 19 delivered via mail. The department shall identify all charter schools on 20 probationary status on the department's website and shall also post the 21 remedial action plan. 22 § 20. Subdivision 4 of section 2855 of the education law, as added by 23 chapter 4 of the laws of 1998, is amended to read as follows: 24 4. (a) Any individual or group may bring a complaint to the board of 25 trustees of a charter school alleging a violation of the provisions of 26 this article, the charter, or any other provision of law relating to the 27 management or operation of the charter school. If, after presentation of 28 the complaint to the board of trustees of a charter school, the individ- 29 ual or group determines that such board has not adequately addressed the 30 complaint, they may present that complaint to the charter entity, which 31 shall investigate and respond. If, after presentation of the complaint 32 to the charter entity, the individual or group determines that the char- 33 ter entity has not adequately addressed the complaint, they may present 34 that complaint to the board of regents, which shall investigate and 35 respond. The charter entity and the board of regents shall have the 36 power and the duty to issue appropriate remedial orders to charter 37 schools under their jurisdiction to effectuate the provisions of this 38 section. 39 (b) At the beginning of each school year, a charter school shall 40 provide the parent or guardian of each student enrolled in the charter 41 school information detailing the process by which a complaint can be 42 brought against the charter school pursuant to paragraph (a) of this 43 subdivision. In addition to detailing the process by which a complaint 44 can be brought, the information provided shall include, but not be 45 limited to the contact information for the board of trustees of the 46 charter school in which the student is enrolled, the contact information 47 for the charter entity of the charter school, and the contact informa- 48 tion for the board of regents, if the board of regents is not the char- 49 ter entity. Such information shall also be posted and updated annually 50 on the charter school's website. 51 § 21. Subdivisions 2 and 3 of section 2856 of the education law are 52 renumbered subdivisions 3 and 4 and a new subdivision 2 is added to read 53 as follows: 54 2. In the event that in any school year a charter school receives 55 combined payments from any local, state, or federal source that exceed 56 expenditures for such school year related to the operation of such char-

S. 6578 18 1 ter school by seven percent, then any excess funds above such amount 2 shall be returned proportionately to all school districts that have paid 3 tuition to such charter school. 4 § 22. Subdivision 3 of section 2856 of the education law, as added by 5 chapter 4 of the laws of 1998 and as renumbered by section twenty-one of 6 this act, is amended to read as follows: 7 3. (a) In the event of the failure of the school district to make 8 payments required by this section, the state comptroller shall deduct 9 from any state funds which become due to such school district an amount 10 equal to the unpaid obligation. The comptroller shall pay over such sum 11 to the charter school upon certification of the commissioner. The 12 commissioner shall promulgate regulations to implement the provisions of 13 this subdivision. 14 (b) At least thirty days prior to submission of a request for an 15 intercept of state funds pursuant to paragraph (a) of this subdivision, 16 the charter school shall provide the school district of residence with a 17 list of students whose tuition is proposed to be included in the inter- 18 cept and documentation of any special education services provided by the 19 charter school, the cost of which would be included in the intercept. 20 If the school district objects to inclusion of the tuition or cost of 21 services in the intercept, the school district shall provide the charter 22 school with a written statement of its reasons for objecting to the 23 intercept that identifies the students whose costs are in dispute and 24 the charter school shall schedule a resolution session for the purpose 25 of resolving the dispute, which shall be held within five business days 26 of receipt of the school district's objection. Each party shall ensure 27 that their representatives who attend the resolution are fully author- 28 ized to bind the school district or charter school, and any agreement 29 reached at the resolution session shall be final and binding upon both 30 parties. In the event the school district does not notify the charter 31 school of its objections within ten days of its receipt of the list of 32 students or fails to participate in a resolution session, the school 33 district shall be deemed to have waived its objections to the intercept 34 and the charter school shall not be required to offer a resolution 35 session. If the parties are unable to reach agreement at a resolution 36 session, they may agree to schedule additional resolution sessions or, 37 if one of the parties informs the other that agreement is not possible, 38 the dispute may be raised by the district as a charter school complaint 39 pursuant to subdivision four of section twenty-eight hundred fifty-five 40 of this article, or, if the dispute concerns the residency of a student, 41 an appeal may be brought pursuant to paragraph (c) of this subdivision. 42 The department shall not process an intercept for tuition or the cost of 43 services of a student whose costs are in dispute until the charter 44 school notifies the department that a resolution session has been held 45 and no agreement has been reached, or that no resolution session is 46 required because the school district failed to provide timely notice or 47 failed to participate in a scheduled resolution session. 48 (c) In the event of a dispute over the residency of a student, the 49 school district shall make its own residency determination pursuant to 50 the regulations of the commissioner after considering the proof of resi- 51 dency submitted by the charter school, and such determination may be 52 appealed to the commissioner by the charter school or by the parent or 53 other person in parental relation or both pursuant to section three 54 hundred ten of this chapter. During the pendency of such appeal, the 55 student shall be deemed enrolled in the school district, shall be enti- 56 tled to services pursuant to subdivision four of section twenty-eight

S. 6578 19 1 hundred fifty-three of this article, and the school district shall be 2 liable for charter school tuition, provided that upon a final determi- 3 nation in such appeal that the student is not a resident of the school 4 district, the school district may deduct the cost of such tuition and 5 services from future payments due the charter school. 6 § 23. Subdivision 2 of section 2857 of the education law, as amended 7 by chapter 101 of the laws of 2010, is amended and a new subdivision 2-a 8 is added to read as follows: 9 2. Each charter school shall submit to the charter entity and to the 10 board of regents an annual report. Such report shall be issued no later 11 than the first day of August of each year for the preceding school year 12 and shall be made publicly available by such date and shall be posted on 13 both the charter school's [~~website~~] and the department's websites. The 14 annual report shall be in such form as shall be prescribed by the 15 commissioner and shall include at least the following components: 16 (a) a charter school report card, which shall include measures of the 17 comparative academic and fiscal performance of the school, as prescribed 18 by the commissioner in regulations adopted for such purpose. Such meas- 19 ures shall include, but not be limited to, graduation rates, dropout 20 rates, performance of students on standardized tests, college entry 21 rates, total spending per pupil and administrative spending per pupil. 22 Such measures shall be presented in a format that is easily comparable 23 to similar public schools. In addition, the charter school shall ensure 24 that such information is easily accessible to the community including 25 making it publicly available by transmitting it to local newspapers of 26 general circulation and making it available for distribution at board of 27 trustee meetings[.]; 28 (b) discussion of the progress made towards achievement of the goals 29 set forth in the charter[.]; 30 (c) a certified financial statement setting forth, by appropriate 31 categories, the revenues and expenditures for the preceding school year, 32 including a copy of the most recent independent fiscal audit of the 33 school and any audit conducted by the comptroller of the state of New 34 York[.]; 35 (d) efforts taken by the charter school in the existing school year, 36 and a plan for efforts to be taken in the succeeding school year, to 37 meet or exceed the enrollment [~~and retention targets set by the board of~~ 38 ~~regents or the board of trustees of the state university of New York, as~~ 39 ~~applicable, of students with disabilities, English language learners,~~ 40 ~~and students who are eligible applicants for the free and reduced price~~ 41 ~~lunch program established pursuant to paragraph (e) of subdivision four~~ 42 ~~of section twenty-eight hundred fifty-one of this article.~~] requirements 43 of subparagraph (ii) of paragraph (b) of subdivision two of section two 44 thousand eight hundred fifty-four of this article; 45 (e) for any charter school that contracts with a management company or 46 any other entity that provides services to the charter school, a 47 detailed statement of services provided to the charter school by the 48 management company and/or any other entity and the amount the charter 49 school pays for such services. The department shall post the annual 50 reports submitted by charter schools on the department's website; and 51 (f) a notice of any relationship that may exist between any member of 52 a charter school's board of trustees or charter school staff and any 53 for-profit or not-for-profit corporate or other business entity that is 54 responsible for the administration, management or operation of such 55 charter school or related vendor.

S. 6578 20 1 2-a. Each charter school shall post contact information for the 2 school's board of trustees as well as the name and contact information 3 of the school's charter entity on the website of the charter school. 4 § 24. Subdivision 7 of section 179-q of the state finance law, as 5 added by chapter 166 of the laws of 1991, is amended to read as follows: 6 7. "Not-for-profit organization" or "organization" means a domestic 7 corporation incorporated pursuant to or otherwise subject to the not- 8 for-profit corporation law, a charitable organization registered with 9 the secretary of state, a special act corporation created pursuant to 10 chapter four hundred sixty-eight of the laws of eighteen hundred nine- 11 ty-nine, as amended, a special act corporation formed pursuant to chap- 12 ter two hundred fifty-six of the laws of nineteen hundred seventeen, as 13 amended, a corporation authorized pursuant to an act of congress 14 approved January fifth, nineteen hundred five, (33 stat. 599), as 15 amended, a corporation established by merger of charitable organizations 16 pursuant to an order of the supreme court, New York county dated July 17 twenty-first, nineteen hundred eighty-six and filed in the department of 18 state on July twenty-ninth, nineteen hundred eighty-six, or a corpo- 19 ration having tax exempt status under section 501(c)(3) of the United 20 States Internal revenue code, and shall further be deemed to mean and 21 include any federation of charitable organizations. Provided, however, 22 that a public educational entity within the meaning of section seventy- 23 one of part C of chapter fifty-seven of the laws of two thousand four 24 shall not be deemed a "not-for-profit organization" or "organization" 25 for purposes of this article. 26 § 25. This act shall take effect immediately; provided, however, that 27 the amendments to clause (B) of subparagraph 5 of paragraph (e) of 28 subdivision 3 of section 2853 of the education law made by section 29 fifteen of this act shall take effect on the same date and in the same 30 manner as subdivision 1 of section 63 of part YYY of chapter 59 of the 31 laws of 2017, takes effect.

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