S 7462: Provides additional requirements for approval of charter school applications; applies additional prohibitions to charter schools; requires certain financial disclosures by charter schools; requires charter schools to comply with provisions relating to construction, repair or demolition of school facilities; relates to admission of students.

  
  STATE OF NEW YORK ________________________________________________________________________ 7462 2025-2026 Regular Sessions  IN SENATE April 17, 2025 ___________ Introduced by Sens. HOYLMAN-SIGAL, BRISPORT, CLEARE, GONZALEZ, HARCKHAM, MAY, MAYER, RAMOS, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Education 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, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07994-01-5 
 S. 7462 2 1 which shall be consistent with the requirements of due process and with 2 federal laws and regulations governing the placement of students with 3 disabilities] shall be in accordance with the provisions of subdivisions 4 two-a, three and three-a of section thirty-two hundred fourteen of this 5 chapter. The charters of all charter schools that were issued on or 6 before July first, two thousand twenty-five shall be deemed amended to 7 require compliance with the procedures set forth in subdivisions two-a, 8 three and three-a of section thirty-two hundred fourteen of this 9 chapter. 10 § 3. Paragraph (e) of subdivision 4 of section 2851 of the education 11 law, as added by chapter 101 of the laws of 2010, is amended to read as 12 follows: 13 (e) The means by which the charter school will meet or exceed the 14 enrollment [and retention targets as prescribed by the board of regents 15 or the board of trustees of the state university of New York, as appli- 16 cable, of students with disabilities, English language learners, and 17 students who are eligible applicants for the free and reduced price 18 lunch program which shall be considered by the charter entity prior to 19 approving such charter school's application for renewal. When developing 20 such targets, the board of regents and the board of trustees of the 21 state university of New York shall ensure (1) that such enrollment 22 targets are comparable to the enrollment figures of such categories of 23 students attending the public schools within the school district, or in 24 a city school district in a city having a population of one million or 25 more inhabitants, the community school district, in which the charter 26 school is located; and (2) that such retention targets are comparable to 27 the rate of retention of such categories of students attending the 28 public schools within the school district, or in a city school district 29 in a city having a population of one million or more inhabitants, the 30 community school district, in which the proposed charter school would be 31 located] requirements of subparagraph (ii) of paragraph (b) of subdivi- 32 sion two of section twenty-eight hundred fifty-four of this article. 33 § 4. Subdivision 2 of section 2852 of the education law, as amended by 34 section 4-a of part A of chapter 56 of the laws of 2023, and the clos- 35 ing paragraph as amended by section 2 of part D-2 of chapter 57 of the 36 laws of 2007, is amended to read as follows: 37 2. An application for a charter school shall not be approved unless 38 the charter entity finds in writing that: 39 (a) the charter school described in the application meets the require- 40 ments set out in this article and all other applicable laws, rules and 41 regulations; 42 (b) the applicant can demonstrate the ability to operate the school in 43 an educationally and fiscally sound manner; 44 (c) granting the application is likely to improve student learning and 45 achievement and materially further the purposes set out in subdivision 46 two of section twenty-eight hundred fifty of this article; 47 (d) in a school district where the total enrollment of resident 48 students attending charter schools in the base year is greater than five 49 percent of the total public school enrollment of the school district in 50 the base year (i) granting the application would have a significant 51 educational benefit to the students expected to attend the proposed 52 charter school [or] and (ii) the school district in which the charter 53 school will be located consents to such application; and 54 (e) for applicants for an initial charter pursuant to paragraph (b-1) 55 of subdivision nine of this section in a school district located in a 56 city with a population of one million or more, the total enrollment of 
 S. 7462 3 1 students attending charter schools within the community district in 2 which the charter school will be located in the base year is less than 3 or equal to fifty-five percent of the total public school enrollment 4 attending within such community district in the base year. 5 In reviewing applications, the charter entity is encouraged to give 6 preference to applications that demonstrate the capability to provide 7 comprehensive learning experiences to students identified by the appli- 8 cants as at risk of academic failure. Upon making a determination of 9 whether an application for a charter school shall be approved, the char- 10 ter entity shall provide detailed written findings related to each of 11 the requirements in this subdivision, which shall be made available to 12 the charter school applicant, board of regents and the school district 13 in which the proposed charter school would be located. 14 § 5. Subdivision 5 of section 2852 of the education law, as amended by 15 chapter 101 of the laws of 2010, is amended to read as follows: 16 5. (a) Upon approval of an application by a charter entity, the appli- 17 cant and charter entity shall enter into a proposed agreement allowing 18 the applicants to organize and operate a charter school. Such written 19 agreement, known as the charter, shall include [(a)] (i) the information 20 required by subdivision two of section twenty-eight hundred fifty-one of 21 this article, as modified or supplemented during the approval process, 22 [(b)] (ii) in the case of charters to be issued pursuant to subdivision 23 nine-a of this section, information required by such subdivision, [(c)] 24 (iii) a provision prohibiting the charter school from entering into, 25 renewing or extending any agreement with a for-profit or not-for-profit 26 corporate or other business entity for the administration, management or 27 operation of the charter school unless the agreement requires such enti- 28 ty to provide state and local officers having the power to audit the 29 charter school pursuant to this article with access to the entity's 30 records relating to the costs of, and fees for, providing such services 31 to the school, (iv) any other terms or conditions required by applicable 32 laws, rules and regulations, and [(d)] (v) any other terms or condi- 33 tions, not inconsistent with law, agreed upon by the applicant and the 34 charter entity. In addition, the charter shall include the specific 35 commitments of the charter entity relating to its obligations to oversee 36 and supervise the charter school. Within five days after entering into a 37 proposed charter, the charter entity other than the board of regents 38 shall submit to the board of regents a copy of the charter, the applica- 39 tion and supporting documentation for final approval and issuance by the 40 board of regents in accordance with subdivisions five-a and five-b of 41 this section. 42 (b) No charter school having a charter that was issued and approved on 43 or before the effective date of this paragraph shall enter into, renew 44 or extend the duration of any agreement with a for-profit or not-for- 45 profit corporate or other business entity for the administration, 46 management or operation of the charter school unless the agreement 47 requires such entity to provide state and local officers having the 48 power to audit the charter school pursuant to this article with access 49 to the entity's records relating to the costs of, and fees for, provid- 50 ing such services to the school. Any agreement entered into, renewed or 51 extended in violation of this section shall be null, void and wholly 52 unenforceable, and a violation of this section shall be grounds for 53 revocation or termination of a charter pursuant to section twenty-eight 54 hundred fifty-five of this article. 
 S. 7462 4 1 § 6. Subparagraph (i) of paragraph (b) of subdivision 9-a of section 2 2852 of the education law, as amended by section 2 of subpart A of part 3 B of chapter 20 of the laws of 2015, is amended to read as follows: 4 (i) that the proposed charter school would meet or exceed the enroll- 5 ment [and retention targets, as prescribed by the board of regents or 6 the board of trustees of the state university of New York, as applica- 7 ble, of students with disabilities, English language learners, and 8 students who are eligible applicants for the free and reduced price 9 lunch program. When developing such targets, the board of regents and 10 the board of trustees of the state university of New York, shall ensure 11 (1) that such enrollment targets are comparable to the enrollment 12 figures of such categories of students attending the public schools 13 within the school district, or in a city school district in a city 14 having a population of one million or more inhabitants, the community 15 school district, in which the proposed charter school would be located; 16 and (2) that such retention targets are comparable to the rate of 17 retention of such categories of students attending the public schools 18 within the school district, or in a city school district in a city 19 having a population of one million or more inhabitants, the community 20 school district, in which the proposed charter school would be located] 21 requirements of subparagraph (ii) of paragraph (b) of subdivision two of 22 section twenty-eight hundred fifty-four of this article; and 23 § 7. Section 2853 of the education law is amended by adding a new 24 subdivision 2-b to read as follows: 25 2-b. In any case where a charter school enters into, renews or extends 26 any agreement with a for-profit or not-for-profit business or corporate 27 entity for the administration, management or operation of a charter 28 school, the charter school is required to have a formal contract with 29 such entity. Any such contract shall be reviewed and approved by the 30 charter entity. 31 § 8. Paragraph (a) of subdivision 3 of section 2853 of the education 32 law, as amended by chapter 101 of the laws of 2010, is amended to read 33 as follows: 34 (a) A charter school may be located in part of an existing public 35 school building, in space provided on a private work site, in a public 36 building or in any other suitable location. Provided, however, before a 37 charter school may be located in part of an existing public school 38 building, the charter entity shall provide notice to the parents or 39 guardians of the students then enrolled in the existing school building 40 and shall hold a public hearing for purposes of discussing the location 41 of the charter school. All contracts entered into by such charter 42 school, or any education corporation organized to operate a charter 43 school, or any other public entity, including the state, a public bene- 44 fit corporation, municipal corporation, or any private entity acting on 45 behalf of any of these entities, involving the construction, recon- 46 struction, demolition, excavation, rehabilitation, repair, renovation, 47 or alteration of any charter school facility shall be subject to the 48 requirements of section one hundred three of the general municipal law 49 and articles eight and nine of the labor law. A charter school may own, 50 lease or rent its space. 51 § 9. The opening paragraph and subparagraph 1 of paragraph (e) of 52 subdivision 3 of section 2853 of the education law, as added by section 53 5 of part BB of chapter 56 of the laws of 2014, are amended to read as 54 follows: 55 [In] Except as provided in subparagraph seven of this paragraph, a 56 city school district in a city having a population of one million or 
 S. 7462 5 1 more inhabitants, charter schools that first commence instruction or 2 that require additional space due to an expansion of grade level, pursu- 3 ant to this article, approved by their charter entity for the two thou- 4 sand fourteen--two thousand fifteen school year or thereafter and 5 request co-location in a public school building and demonstrates to the 6 city school district that the charter school does not have the financial 7 capacity to procure adequate facilities shall be provided access to 8 facilities pursuant to this paragraph for such charter schools that 9 first commence instruction or that require additional space due to an 10 expansion of grade level, pursuant to this article, approved by their 11 charter entity for those grades newly provided. 12 (1) Notwithstanding any other provision of law to the contrary, within 13 the later of (i) five months after a charter school's written request 14 for co-location and (ii) provided that a charter school demonstrates 15 that it lacks the financial capacity to procure adequate facilities, 16 thirty days after the charter school's charter is approved by its char- 17 ter entity, the city school district shall either: (A) offer at no cost 18 to the charter school a co-location site in a public school building 19 approved by the board of education as provided by law, or (B) offer the 20 charter school space in a privately owned or other publicly owned facil- 21 ity at the expense of the city school district and at no cost to the 22 charter school for three years. The space must be reasonable, appropri- 23 ate and comparable and in the community school district to be served by 24 the charter school and otherwise in reasonable proximity. 25 § 10. Paragraph (e) of subdivision 3 of section 2853 of the education 26 law is amended by adding a new subparagraph 7 to read as follows: 27 (7)(A) No charter school that, either alone or in combination with any 28 charter affiliate, has any direct or indirect interest in, or may be 29 entitled to receive any beneficial interest from, any asset or assets of 30 any kind or nature that alone or combined have a value exceeding one 31 million dollars, shall be offered or entitled to receive: (i) a co-lo- 32 cation site in a public school building at no cost; or (ii) a space in a 33 privately or publicly owned facility at the expense of the city school 34 district. 35 (B) Nothing in this subparagraph shall prohibit a charter school from 36 receiving a co-location in a public building at fair market value unless 37 doing so would negatively impact the size of classes in any other school 38 in the building. 39 (C) As used in this subparagraph the term "charter affiliate" means: 40 (i) any entity that is directly or indirectly controlled by, in control 41 of, or under common control with, the charter school or (ii) any entity 42 that provides management, fundraising or other administrative support 43 services to the charter school. 44 § 11. Paragraph (c) of subdivision 4 of section 2853 of the education 45 law, as amended by section 1 of part BB of chapter 56 of the laws of 46 2014, is amended to read as follows: 47 (c) A charter school may contract with the governing body of a public 48 college or university for the use of a school building and grounds, the 49 operation and maintenance thereof. Any such contract shall provide such 50 services or facilities at [cost] fair market value. [A school district 51 shall permit any charter school granted approval to co-locate, to use 52 such services and facilities without cost.] 53 § 12. Section 2853 of the education law is amended by adding three new 54 subdivisions 5, 6 and 7 to read as follows: 55 5. Disclosure. (a) A charter school shall report: 
 S. 7462 6 1 (i) by the fifteenth day of February of each calendar year, the name, 2 address and total compensation paid to each person serving as a charter 3 executive in the previous calendar year; and 4 (ii) within thirty days of receipt, the name and address of any indi- 5 vidual, corporation, association, or entity providing a contribution, 6 gift, loan, advance or deposit of one thousand dollars or more to the 7 charter school or charter affiliate and the amount of each such contrib- 8 ution, gift, loan, advance or deposit. 9 (b) If a charter school either alone or together with any charter 10 affiliate has any direct or indirect interest in, or may be entitled to 11 receive any beneficial interest in, any asset or assets of any kind or 12 nature, alone or together, with a value in excess of one million 13 dollars, the charter school shall: 14 (i) ensure that the financial statements of the charter school and 15 each charter affiliate conform to and are reported according to general- 16 ly accepted accounting principles; and 17 (ii) ensure that the financial statements of the charter school and 18 any charter affiliate are audited in accordance with generally accepted 19 auditing standards by an independent certified public accountant or an 20 independent public accountant, that such audit receives an "unqualified" 21 opinion as to, among other things, compliance with generally accepted 22 accounting principles and that such audit is completed within nine 23 months of the conclusion of the fiscal year. 24 (c) If a charter school either alone or together with any charter 25 affiliate has any direct or indirect interest in, or may be entitled to 26 receive any beneficial interest in, any asset or assets of any kind or 27 nature, alone or together, with a value in excess of one million 28 dollars, it shall also report by the fifteenth day of February of each 29 ensuing calendar year the following: 30 (i) the most recent audited financial statements of the charter school 31 and any charter affiliate which shall conform to and be reported accord- 32 ing to generally accepted accounting principles; 33 (ii) the most recent auditor's report on the financial statements of 34 the charter school and any charter affiliate; 35 (iii) the "unqualified" opinion received from the auditor of the most 36 recent financial statements as to, among other things, compliance with 37 generally accepted accounting principles; and 38 (iv) any compensation or remuneration, whether paid or given, includ- 39 ing but not limited to salary, bonus, and deferred compensation and any 40 benefit having monetary value, including but not limited to, perqui- 41 sites, fringe benefits, employer contributions to defined contribution 42 retirement plans and other retirement or severance benefits received by 43 a charter executive from any source. 44 (d) (i) Each report required by this subdivision shall be accompanied 45 by a statement, under oath, by the chairperson of the school's board of 46 trustees or other appropriate member of the board of trustees, that, 47 after the due inquiry, the reports are true and correct to the best of 48 such person's knowledge and have been provided to each member of the 49 school's board of trustees. 50 (ii) A charter school to which paragraphs (b) and (c) of this subdivi- 51 sion do not apply shall, by the fifteenth day of February of each calen- 52 dar year, submit a statement as part of its report pursuant to subpara- 53 graph (ii) of paragraph (a) of this subdivision, under oath, by the 54 chairperson of the school's board of trustees or other appropriate 55 member of the board of trustees, that, after the due inquiry, the char- 56 ter school either alone or together with any charter affiliate does not 
 S. 7462 7 1 have any direct or indirect interest in or may be entitled to receive 2 any beneficial interest in any asset or assets of any kind or nature, 3 alone or together, with a value in excess of one million dollars. 4 (e) Any report required pursuant to this subdivision shall be made to 5 the board of regents, the school's charter entity, and the comptroller 6 of the city of New York for charter schools located in New York city and 7 the comptroller of the state of New York for charter schools located 8 outside of the city of New York. The commissioner shall ensure that such 9 report is made publicly available via the department's official internet 10 website within five days of its receipt. 11 (f) A charter school's failure to comply with the provisions of this 12 subdivision shall be a very significant factor in determining whether 13 the charter entity or the board of regents terminates the school's char- 14 ter. 15 (g) As used in this subdivision: 16 (i) "total compensation" shall include: (A) any compensation or remun- 17 eration, whether paid or given, by or on behalf of the charter school or 18 any charter affiliate, for services rendered to, on behalf of, or at the 19 request of the charter school, including but not limited to salary, 20 bonus, and deferred compensation and (B) any benefit having monetary 21 value provided by or on behalf of the charter school or any charter 22 affiliate, including but not limited to, perquisites, fringe benefits, 23 employer contributions to defined contribution retirement plans and 24 other retirement or severance benefits. 25 (ii) "charter affiliate" means: (A) any entity that is, directly or 26 indirectly, controlled by, in control of, or under common control with 27 the charter school or (B) any entity or affiliate thereof that provides 28 management, fundraising, or other administrative support services to the 29 charter school. 30 (iii) "charter executive" means: (A) an officer, director, trustee, 31 consultant, supervisory employee of a charter school or charter affil- 32 iate or (B) anyone who exerts operational or managerial influence or 33 control over the school including, but not limited to, influence or 34 control over the school through a charter management company. 35 6. Executive compensation. (a) No charter school shall provide any 36 compensation to any individual who is also an officer, director, trus- 37 tee, consultant, or employee of a charter affiliate or to any individual 38 who exerts operational or managerial influence or control over the 39 school through a charter affiliate. 40 (b)(i) No charter school or charter affiliate shall permit the total 41 compensation received by a charter executive to be greater than one 42 hundred ninety-nine thousand dollars per annum, including not only state 43 funds and state-authorized payments but also any other sources of fund- 44 ing, and greater than the seventy-fifth percentile of that compensation 45 provided to charter executives of other charter schools and charter 46 affiliates within the same or comparable geographic area as established 47 by a compensation survey identified, provided, or recognized by the 48 department and the director of the division of the budget. 49 (ii) If the department and the director of the division of the budget 50 find good cause after considering the factors set forth in subparagraph 51 (iv) of this paragraph, a waiver of the limit on total compensation that 52 a charter executive may receive may be granted, provided, however, that 53 in no event shall the total compensation exceed one hundred fifty 54 percent of Level I of the federal government's Rates of Basic Pay for 55 the Executive Schedule promulgated by the United States Office of 56 Personnel Management. 
 S. 7462 8 1 (iii) The application for a waiver must be filed no later than the 2 fifteenth day of February of the year for which the waiver is sought. 3 The application shall be transmitted in the manner and form specified by 4 the department and the director of the division of the budget. A waiver 5 may be only for the single calendar year in which it is granted. 6 (iv) The following factors, in addition to any other deemed relevant 7 by the department and the director of the division of the budget, shall 8 be considered in the determination of whether good cause exists to grant 9 a waiver: 10 (A) the extent to which the executive compensation that is the subject 11 of the waiver request is comparable to that given to comparable charter 12 executives of charter schools or charter affiliates of the same size and 13 within the same or comparable geographic area; 14 (B) the extent to which the charter school would be unable to provide 15 educational services at the same levels of quality and availability 16 without a waiver of the limit on total compensation that a charter exec- 17 utive may receive; 18 (C) the nature, size, and complexity of the charter school or charter 19 affiliate's operations; 20 (D) the charter school or charter affiliate's review and approval 21 process for the total compensation that is the subject of the waiver, 22 including whether such process involved a review and approval by the 23 board of trustees of the school, whether such review was conducted by at 24 least two independent directors or independent members of the board of 25 trustees, whether such review included an assessment of comparability 26 data including a compensation survey, and a contemporaneous substanti- 27 ation of the deliberation and decision to approve the total compen- 28 sation; 29 (E) the qualifications and experience possessed by or required for the 30 charter executive's position; and 31 (F) the charter school or charter affiliate's efforts, if any, to 32 secure a charter executive with the same levels of experience, exper- 33 tise, and skills for the position of the charter executive at lower 34 levels of compensation. 35 (v) To be considered, an application for such a waiver shall comply 36 with this paragraph in its entirety. 37 (vi) Unless additional information has been requested but not received 38 from the charter school or charter affiliate, a decision on a timely 39 submitted waiver application shall be provided no later than sixty 40 calendar days after submission of the application. 41 (vii) If granted, a waiver to a charter executive shall remain in 42 effect for the calendar year it is issued in, but shall be deemed 43 revoked if: 44 (A) the total compensation that is the subject of the waiver 45 increases; or 46 (B) notice of revocation is provided to the charter executive at the 47 discretion of the department as a result of additional relevant circum- 48 stances. 49 (viii) Information provided in connection with a waiver application 50 shall be subject to public disclosure pursuant to article six of the 51 public officers law. 52 (ix) Where a waiver is granted, the department shall make it publicly 53 available via the department's official internet website within five 54 days. 55 (c) No charter school shall use funds received pursuant to section 56 twenty-eight hundred fifty-six of this article or allow a charter affil- 
 S. 7462 9 1 iate to use funds received from the charter school to provide a total 2 compensation to a charter executive greater than one hundred ninety-nine 3 thousand dollars per annum. 4 (d) Failure to comply with the provisions of this subdivision shall 5 result in the assessment of a penalty against the payor in an amount 6 equal to the amount of compensation paid or provided in violation of 7 this subdivision. 8 (e) A charter school's failure to comply with the provisions of this 9 subdivision shall be a very significant factor in determining whether 10 the charter entity or the board of regents terminates the school's char- 11 ter. 12 (f) As used in this subdivision: 13 (i) "total compensation" shall include: (A) any compensation or remun- 14 eration, whether paid or given, by or on behalf of the charter school or 15 any charter affiliate, for services rendered to, on behalf of, or at the 16 request of the charter school, including but not limited to salary, 17 bonus, and deferred compensation and (B) any benefit having monetary 18 value provided by or on behalf of the charter school or any charter 19 affiliate, including but not limited to, perquisites, fringe benefits, 20 employer contributions to defined contribution retirement plans and 21 other retirement or severance benefits. 22 (ii) "charter affiliate" means: (A) any entity that is, directly or 23 indirectly, controlled by, in control of, or under common control with 24 the charter school or (B) any entity or affiliate thereof that provides 25 management, fundraising, or other administrative support services to the 26 charter school. 27 (iii) "charter executive" means: (A) an officer, director, trustee, 28 consultant, supervisory employee of a charter school or charter affil- 29 iate or (B) anyone who exerts operational or managerial influence or 30 control over the school including, but is not limited to, influence or 31 control over the school through a charter management company. 32 7. Notification of disenrollment. Within five business days of a 33 student who was enrolled by the charter school ceasing to be enrolled, a 34 charter school shall notify the superintendent of the district in which 35 the charter school is located or, for charter schools located within the 36 geographic area served by the city school district of the city of New 37 York, the chancellor of the city school district of the city of New 38 York, of the name of such student. 39 § 13. Subparagraph 5 of paragraph (e) of subdivision 3 of section 2853 40 of the education law, as amended by section 11 of part A of chapter 54 41 of the laws of 2016, clause (B) as amended by section 5 of part YYY of 42 chapter 59 of the laws of 2017, is amended to read as follows: 43 (5) For a new charter school whose charter is granted or for an exist- 44 ing charter school whose expansion of grade level, pursuant to this 45 article, is approved by their charter entity, if the appeal results in a 46 determination in favor of the charter school, for six years the city 47 school district shall pay the charter school (A) for the initial three 48 years in which aid is payable, an amount attributable to the grade level 49 expansion or the formation of the new charter school that is equal to 50 the lesser of: 51 [(A)] (i) the actual rental cost of an alternative privately owned 52 site selected by the charter school or 53 [(B)] (ii) thirty percent of the product of the charter school's basic 54 tuition for the current school year and [(i)] (I) for a new charter 55 school that first commences instruction on or after July first, two 56 thousand fourteen, the charter school's current year enrollment; or 
 S. 7462 10 1 [(ii)] (II) for a charter school which expands its grade level, pursuant 2 to this article, the positive difference of the charter school's enroll- 3 ment in the current school year minus the charter school's enrollment in 4 the school year prior to the first year of the expansion; and 5 (B) in the fourth year, the city school district shall pay ninety 6 percent multiplied by the amount calculated pursuant to clause (A) of 7 this subparagraph; and 8 (C) in the fifth year, the city school district shall pay sixty 9 percent multiplied by the amount calculated pursuant to clause (A) of 10 this subparagraph; and 11 (D) in the sixth year, the city school district shall pay thirty 12 percent multiplied by the amount calculated pursuant to clause (A) of 13 this subparagraph. 14 § 14. Paragraph (b) of subdivision 1 of section 2854 of the education 15 law, as amended by section 10-b of part A of chapter 56 of the laws of 16 2014, is amended to read as follows: 17 (b) A charter school shall meet the same health and safety, civil 18 rights, and student assessment requirements applicable to other public 19 schools, except as otherwise specifically provided in this article. A 20 charter school shall be exempt from all other state and local laws, 21 rules, regulations or policies governing public or private schools, 22 boards of education, school districts and political subdivisions, 23 including those relating to school personnel and students, except as 24 specifically provided in the school's charter or in this article. Noth- 25 ing in this subdivision shall affect the requirements of compulsory 26 education of minors established by part one of article sixty-five of 27 this chapter, nor shall anything in this subdivision affect the require- 28 ments of the charter school to comply with section one hundred three of 29 the general municipal law and articles eight and nine of the labor law 30 with respect to the construction, reconstruction, demolition, exca- 31 vation, rehabilitation, repair, renovation, or alteration of any charter 32 school facility. 33 § 15. Subdivision 2 of section 2854 of the education law, as added by 34 chapter 4 of the laws of 1998, paragraph (a) as amended by chapter 101 35 of the laws of 2010, and paragraph (b) as amended by section 3 of 36 subpart A of part B of chapter 20 of the laws of 2015, is amended to 37 read as follows: 38 2. Admissions; enrollment; students. (a) A charter school shall be 39 nonsectarian in its programs, admission policies, employment practices, 40 and all other operations and shall not charge tuition or fees; provided 41 that a charter school may require the payment of fees on the same basis 42 and to the same extent as other public schools. A charter school shall 43 not discriminate against any student, employee or any other person on 44 the basis of ethnicity, national origin, gender, or disability or any 45 other ground that would be unlawful if done by a school. Admission of 46 students shall not be limited on the basis of intellectual ability, 47 measures of achievement or aptitude, athletic ability, disability, race, 48 creed, gender, national origin, religion, or ancestry; provided, howev- 49 er, that nothing in this article shall be construed to prevent the 50 establishment of a single-sex charter school or a charter school 51 designed to provide expanded learning opportunities for students at-risk 52 of academic failure or students with disabilities and English language 53 learners; and provided, further, that the charter school shall demon- 54 strate good faith efforts to attract and retain [a comparable] an equal 55 or greater enrollment of students with disabilities, English language 56 learners, and students who are eligible applicants for the free and 
 S. 7462 11 1 reduced price lunch program when compared to the enrollment figures for 2 such students in the school district in which the charter school is 3 located. A charter shall not be issued to any school that would be whol- 4 ly or in part under the control or direction of any religious denomi- 5 nation, or in which any denominational tenet or doctrine would be 6 taught. 7 (b) (i) Any child who is qualified under the laws of this state for 8 admission to a public school is qualified for admission to a charter 9 school. Applications for admission to a charter school shall be submit- 10 ted on a uniform application form created by the department and shall be 11 made available by a charter school in languages predominately spoken in 12 the community in which such charter school is located. [The] 13 (ii) A charter school shall enroll and continually keep enrolled the 14 minimum number of students in each of the following categories: (A) 15 students who are English language learners as defined in regulations of 16 the commissioner, (B) students who receive or are mandated to receive 17 any special education service, (C) students who have individual educa- 18 tion plans that mandate they receive services for at least sixty percent 19 of the school day outside the general education setting, (D) students 20 who are eligible to receive free lunch in accordance with title I of the 21 elementary and secondary education act, and (E) students who reside in 22 temporary or transitional housing. The minimum number of students a 23 charter school must enroll and continually keep enrolled in each such 24 category shall be the number of students that, as a percentage of the 25 students authorized to be served by the charter school in its charter, 26 is equal to the percentage of students in each category that non-charter 27 public schools in the district where the charter school is located 28 enrolled in the preceding June in all of the grades combined which are 29 served by the charter school. For purposes of this subparagraph, for the 30 city school district of the city of New York, district shall mean the 31 community school district and shall include all non-charter public 32 schools, except those in district seventy-five, geographically located 33 in the community school district. 34 (iii) Prior to a charter school selecting or enrolling students for 35 the next school year, the commissioner shall provide the charter school 36 with the minimum number of students it must enroll and continually keep 37 enrolled in each category pursuant to subparagraph (ii) of this para- 38 graph. The minimum number of students each charter school must enroll 39 and continually keep enrolled in each category pursuant to subparagraph 40 (ii) of this paragraph shall be made public by the commissioner no later 41 than five business days after it has been provided to the charter 42 school. 43 (iv) A charter school shall enroll each eligible student who submits a 44 timely application by the first day of April each year[,] unless the 45 number of applications exceeds the capacity of the grade level or build- 46 ing or would cause the charter school to be below the minimum number of 47 students it must enroll and continually keep enrolled in each category 48 pursuant to subparagraph (ii) of this paragraph. In such cases, students 49 shall be accepted from among applicants by a random selection process, 50 provided[, however,] that separate random selection processes shall be 51 conducted for students that are not in any category set forth in subpar- 52 agraph (ii) of this paragraph and for students in each category set 53 forth in subparagraph (ii) of this paragraph such that a charter school 54 enrolls at least the minimum number of students required pursuant to 55 subparagraph (ii) of this paragraph. 
 S. 7462 12 1 (v) Where a charter school does not enroll the minimum number of 2 students it must enroll and continually keep enrolled in each category 3 set forth in subparagraph (ii) of this paragraph, the charter school 4 shall hold open a sufficient number of enrollment spaces such that it is 5 possible for the charter school, consistent with its charter, to subse- 6 quently enroll the number of students required by subparagraph (ii) of 7 this paragraph. 8 (vi) A charter school may provide an enrollment preference [shall be 9 provided] to pupils returning to the charter school in the second or any 10 subsequent year of operation and pupils residing in the school district 11 in which the charter school is located, and siblings of pupils already 12 enrolled in the charter school provided that the charter school enrolls 13 and continually keeps enrolled the minimum number of students required 14 in each category pursuant to subparagraph (ii) of this paragraph and 15 holds open the number of enrollment spaces as required by subparagraph 16 (v) of this paragraph. Preference may also be provided to children of 17 employees of the charter school or charter management organization, 18 provided that the charter school enrolls and continually keeps enrolled 19 the minimum number of students required in each category pursuant to 20 subparagraph (ii) of this paragraph and holds open the number of enroll- 21 ment spaces as required by subparagraph (v) of this paragraph and 22 provided further that such children of employees may constitute no more 23 than fifteen percent of the charter school's total enrollment. 24 (vii) For purposes of this paragraph, if a student withdraws from a 25 charter school as a result of a voluntary decision of the student's 26 parent or guardian and, as a direct result, the charter school no longer 27 has the minimum number of students in each category required pursuant to 28 subparagraph (ii) of this paragraph, the charter school shall neverthe- 29 less be considered to have continually kept enrolled the minimum number 30 of students required by subparagraph (ii) of this paragraph if, within 31 thirty days of the student being withdrawn, the charter school replaces 32 the student that was withdrawn with a different student such that the 33 charter school has the minimum number of students in each category 34 required pursuant to subparagraph (ii) of this paragraph, provided 35 however, that this subparagraph shall not apply (A) if the charter 36 school was already in violation of the requirements of subparagraph (ii) 37 of this paragraph at the time the student was withdrawn or (B) if the 38 decision of the student's parent or guardian was substantially motivated 39 by any action or inaction of the charter school, or any of its agents or 40 employees, that was in violation of any law, rule, or regulation. 41 (viii) (A) A charter school shall report the names of any parents or 42 guardians of students who are on a waitlist for enrollment in the char- 43 ter school to the superintendent of the district in which the charter 44 school is located or, for charter schools located within the geographic 45 area served by the city school district of the city of New York, the 46 chancellor of the city school district of the city of New York, whether 47 each such student is in one of the categories set forth in subparagraph 48 (ii) of this paragraph and, if so, which one. 49 (B) A charter school that, at any time, does not have enrolled the 50 minimum number of students required in each category pursuant to subpar- 51 agraph (ii) of this paragraph shall notify the superintendent of the 52 district in which the charter school is located or, for charter schools 53 located within the geographic area served by the city school district of 54 the city of New York, the chancellor of the city school district of the 55 city of New York, within five days of the date of the school being below 56 the minimum number of students. A separate notification shall be 
 S. 7462 13 1 provided each time a charter school's enrollment falls below the minimum 2 in any category pursuant to subparagraph (ii) of this paragraph. 3 (C) Where the superintendent of the district or the chancellor of the 4 city school district of the city of New York receives notification 5 pursuant to clause (B) of this subparagraph, the superintendent shall 6 first offer the enrollment spaces to any parents or guardians of 7 students who are in a category in which the charter school is below the 8 minimum set forth in subparagraph (ii) of this paragraph who are on the 9 school's waitlist, then to any parents or guardians of students who are 10 in a category in which the charter school is below the minimum set forth 11 in subparagraph (ii) of this paragraph who are on the waitlist of anoth- 12 er charter school in the district in which the charter school is located 13 or, for charter schools located within the geographic area served by the 14 city school district of the city of New York geographically located in 15 the community school district, and then to any other parents or guardi- 16 ans of students who are in a category in which the charter school is 17 below the minimum set forth in subparagraph (ii) of this paragraph who 18 reside in the district; such process of enrollment offers shall continue 19 until the charter school is no longer below such minimum in any category 20 or such superintendent or chancellor certifies there are no such 21 students seeking enrollment. 22 (D) Offers made pursuant to this subparagraph shall be made in writing 23 in the parent or guardian's primary language. Where an offer is made 24 pursuant to this subparagraph and the parent or guardian accepts, the 25 charter school shall enroll the student within five calendar days of the 26 offer being accepted. 27 (ix) (A) For each month during the school year, a charter school shall 28 report the number of students then enrolled, as of the first day of the 29 month, in each category set forth in subparagraph (ii) of this paragraph 30 and the number of students then enrolled, as of the first day of the 31 month, that are in none of the categories set forth in subparagraph (ii) 32 of this paragraph. 33 (B) Reports pursuant to this subparagraph shall be made to the board 34 of regents, the school's charter entity, the comptroller of the city of 35 New York for charter schools located in New York city and the comp- 36 troller of the state of New York for charter schools located outside of 37 the city of New York, and the superintendent of the district in which 38 the charter school is located or, for charter schools located within the 39 geographic area served by the city school district of the city of New 40 York, the chancellor of the city school district of the city of New 41 York. The commissioner shall ensure that such report is made publicly 42 available via such department's official internet website within five 43 days of its receipt. 44 (C) Reports pursuant to this subparagraph shall be made on the fifth 45 day of the ensuing month during the school year and shall be accompanied 46 by a statement, under oath, by the chairperson of the school's board of 47 trustees or other appropriate member of the board of trustees, that, 48 after the due inquiry, the reports are true and correct and have been 49 provided to each member of the school's board of trustees. 50 (x) The commissioner shall establish regulations to require that the 51 random selection [process] processes conducted pursuant to this para- 52 graph be performed in a transparent and equitable manner and to require 53 that the time and place of the random selection process be publicized in 54 a manner consistent with the requirements of section one hundred four of 55 the public officers law and be open to the public. [For] Except where 56 another definition is provided, for the purposes of this paragraph and 
 S. 7462 14 1 paragraph (a) of this subdivision, the school district in which the 2 charter school is located shall mean, for the city school district of 3 the city of New York, the community district in which the charter school 4 is located. 5 (xi) The commissioner may, by regulation, require the board of educa- 6 tion of each school district or the chancellor of the city school 7 district of the city of New York to provide such information as is 8 necessary to calculate the minimum number of students a charter school 9 must enroll and continually have enrolled pursuant to subparagraph (ii) 10 of this paragraph. Such information shall be made public by the commis- 11 sioner within five business days of receipt. 12 (xii)(A) If a charter school fails to enroll the number of students 13 required by subparagraph (ii) of this paragraph the appropriate school 14 district shall withhold from the charter school's funding an amount 15 equal to the additional per pupil funding the charter school would have 16 received had each student not enrolled as required by subparagraph (ii) 17 of this paragraph been enrolled. 18 (B) Money withheld by the school district in accordance with this 19 subparagraph shall be returned to the commissioner for distribution to 20 each of the school districts, using an equitable formula determined by 21 the commissioner, provided the charter school or schools from which the 22 monies are withheld shall not be entitled to the return of any money 23 withheld pursuant to this subparagraph or any additional monies as a 24 result of the commissioner's distribution of funds pursuant to this 25 subparagraph. 26 (xiii) (A) No charter school shall first commence instruction if it is 27 operated by, managed by, affiliated with, in the same chain as, shares 28 the same management company as, or has any common charter applicant as, 29 a school that has been in violation, within the last two years, of the 30 enrollment requirements of subparagraph (ii) of this paragraph. 31 (B) No charter school shall expand beyond the grades with enrolled 32 students, even if such expansion is authorized by its charter, if it has 33 been in violation, within the last two years, of the enrollment require- 34 ments of subparagraph (ii) of this paragraph. 35 (C) A charter school that does not have enrolled the minimum number of 36 students as required by subparagraph (ii) of this paragraph shall not be 37 offered or entitled pursuant to paragraph (e) of subdivision three of 38 section twenty-eight hundred fifty-three of this article (1) a co-loca- 39 tion site in a public school building at no cost or (2) space in a 40 privately owned or other publicly owned facility at the expense of the 41 city school district. A charter school that has already been co-located 42 in a public school building or given space in a privately owned or other 43 publicly owned facility pursuant to this paragraph and then fails to 44 continually have enrolled the required minimum number of students shall 45 be required to pay the fair market value of such space for such period 46 of time of non-compliance. 47 (xiv) The provisions of this paragraph shall be enforceable by the 48 commissioner or by a court of competent jurisdiction. Any employee of 49 the school district in which the charter school is located or the parent 50 or guardian of a student attending the district in which the charter 51 school is located shall have standing to enforce the provisions of this 52 paragraph. 53 (xv) A charter school's failure to comply with the provisions of this 54 paragraph shall be a very significant factor in determining whether the 55 charter entity or the board of regents terminates the school's charter. 
 S. 7462 15 1 (b-1) Prior to submission of enrollment counts to a school district 2 pursuant to subdivision one of section twenty-eight hundred fifty-six of 3 this article, on or after October first of the two thousand twenty-five- 4 -two thousand twenty-six school year and October first of each school 5 year thereafter, a charter school shall determine whether that school 6 district is the school district of residence of each student for whom 7 enrollment is claimed. Such residency determination shall be made in 8 accordance with the regulations of the commissioner and the residency 9 policy of the school district in which the charter school is located, 10 provided that the charter school may fulfill such requirement by requir- 11 ing that the parents or other persons in parental relation register 12 their child with the school district they have identified as their 13 school district of residence. Notwithstanding any other provision of 14 law to the contrary, the parents or other persons in parental relation 15 shall not be required to annually prove their continued residency, 16 provided that they either annually certify to the charter school and the 17 school district of residence that their residency has not changed or 18 notify the charter school and the school district that their residency 19 has changed and that a new school district of residence should be iden- 20 tified pursuant to this paragraph. Upon making a residency determi- 21 nation, a charter school making its own residency determination shall 22 promptly submit its proof of residence to the school district identified 23 as the district of residence for purposes of enrollment of the student 24 in such school district in accordance with subdivision one of section 25 twenty-eight hundred fifty-six of this article, and the provision of 26 services pursuant to subdivision four of section twenty-eight hundred 27 fifty-three of this article. In the event of a dispute over the residen- 28 cy of a student, the school district shall make its own residency deter- 29 mination pursuant to the regulations of the commissioner after consider- 30 ing the proof of residency submitted by the charter school, and such 31 determination may be appealed to the commissioner by the charter school 32 or by the parent or other person in parental relation or both pursuant 33 to section three hundred ten of this chapter. During the pendency of 34 such appeal, the student shall be deemed enrolled in the school 35 district, shall be entitled to services pursuant to subdivision four of 36 section twenty-eight hundred fifty-three of this article, and the school 37 district shall be liable for charter school tuition, provided that upon 38 a final determination in such appeal that the student is not a resident 39 of the school district, the school district may deduct the cost of such 40 tuition and services from future payments due the charter school. The 41 provisions of this paragraph shall not apply to charter schools located 42 in a city having a population of one million or more. 43 (c) A charter school shall serve one or more of the grades one through 44 twelve, and shall limit admission to pupils within the grade levels 45 served. Nothing herein shall prohibit a charter school from establishing 46 a kindergarten program. 47 (d) A student may withdraw from a charter school at any time and 48 enroll in a public school. [A charter school may refuse admission to any 49 student who has been expelled or suspended from a public school until 50 the period of suspension or expulsion from the public school has 51 expired, consistent with the requirements of due process] 52 (i) A student may only be disciplined, suspended or expelled from a 53 charter school in accordance with the applicable provisions of subdivi- 54 sions two-a, three, and three-a of section thirty-two hundred fourteen 55 of this chapter. Every charter school shall develop a code of conduct in 
 S. 7462 16 1 accordance with the provisions of section twenty-eight hundred one of 2 this title. 3 (ii) Every charter school shall submit a detailed annual report 4 regarding disciplinary measures imposed on students. The report shall be 5 submitted to the charter entity and the board of regents as part of the 6 annual report required pursuant to subdivision two of section twenty- 7 eight hundred fifty-seven of this article. The report shall be in a form 8 prescribed by the commissioner, and shall include, but not be limited 9 to, number of classroom removals, number of in-school suspensions, 10 number of out-of-school suspensions, number of expulsions, and the 11 action the student took that led to each disciplinary measure imposed. 12 Such data shall be disaggregated by race/ethnicity, status as a student 13 with a disability and status as an English language learner. The report 14 shall be posted on the department's website. 15 (iii) For the purposes of this subdivision: 16 (A) the term "superintendent," "superintendent of schools," "district 17 superintendent of schools," or "community superintendent," as used in 18 subdivision three of section thirty-two hundred fourteen of this chap- 19 ter, as such terms relate to charter schools shall mean the chairperson 20 of the board of trustees of the charter school or the chief school offi- 21 cer of the charter school; and 22 (B) the term "board of education" or "board," as used in subdivision 23 three of section thirty-two hundred fourteen of this chapter, as such 24 terms relate to charter schools shall mean the board of trustees of the 25 charter school. 26 § 16. Subdivision 1 of section 2855 of the education law, as amended 27 by chapter 101 of the laws of 2010, is amended to read as follows: 28 1. The charter entity, or the board of regents, may terminate a char- 29 ter upon any of the following grounds: 30 (a) When a charter school's outcome on student assessment measures 31 adopted by the board of regents falls below the level that would allow 32 the commissioner to revoke the registration of another public school, 33 and student achievement on such measures has not shown improvement over 34 the preceding three school years; 35 (b) [Serious violations] A violation of law; 36 (c) [Material and substantial] A violation of the charter[, including 37 fiscal mismanagement]; 38 (d) When the public employment relations board makes a determination 39 that the charter school [demonstrates a practice and pattern of egre- 40 gious and intentional violations of] has violated subdivision one of 41 section two hundred nine-a of the civil service law involving interfer- 42 ence with or discrimination against employee rights under article four- 43 teen of the civil service law; or the national labor relations board 44 created pursuant to subchapter II of chapter seven of title twenty-nine 45 of the United States Code, or any person or entity to whom the national 46 labor relations board has lawfully delegated its authority, makes a 47 determination that the charter school has violated section 158(a) of 48 title twenty-nine of the United States Code; or 49 (e) [Repeated failure to comply with the requirement to meet or exceed 50 enrollment and retention targets of students with disabilities, English 51 language learners, and students who are eligible applicants for the free 52 and reduced price lunch program pursuant to targets established by the 53 board of regents or the board of trustees of the state university of New 54 York, as applicable. Provided, however, if no grounds for terminating a 55 charter are established pursuant to this section other than pursuant to 56 this paragraph, and the charter school demonstrates that it has made 
 S. 7462 17 1 extensive efforts to recruit and retain such students, including 2 outreach to parents and families in the surrounding communities, widely 3 publicizing the lottery for such school, and efforts to academically 4 support such students in such charter school, then the charter entity or 5 board of regents may retain such charter.] Failure to comply with the 6 requirements of paragraph (b) of subdivision two of section twenty-eight 7 hundred fifty-four of this article; or 8 (f) Failure to comply with the data reporting requirements prescribed 9 in subdivisions two and two-a of section twenty-eight hundred fifty-sev- 10 en of this article. 11 § 17. Subdivision 3 of section 2855 of the education law, as added by 12 chapter 4 of the laws of 1998, is amended to read as follows: 13 3. (a) In addition to the provisions of subdivision two of this 14 section, the charter entity or the board of regents may place a charter 15 school falling within the provisions of subdivision one of this section 16 on probationary status to allow the implementation of a remedial action 17 plan. The failure of a charter school to comply with the terms and 18 conditions of a remedial action plan may result in summary revocation of 19 the school's charter. 20 (b) A charter school that is placed on probationary status shall annu- 21 ally notify the parents or guardians of all students and applicants of 22 the placement. The initial notice shall be distributed within two weeks 23 of being placed on probationary status. Such notice shall be written and 24 delivered via mail. The department shall identify all charter schools on 25 probationary status on the department's website and shall also post the 26 remedial action plan. 27 § 18. Subdivision 4 of section 2855 of the education law, as added by 28 chapter 4 of the laws of 1998, is amended to read as follows: 29 4. (a) Any individual or group may bring a complaint to the board of 30 trustees of a charter school alleging a violation of the provisions of 31 this article, the charter, or any other provision of law relating to the 32 management or operation of the charter school. If, after presentation of 33 the complaint to the board of trustees of a charter school, the individ- 34 ual or group determines that such board has not adequately addressed the 35 complaint, they may present that complaint to the charter entity, which 36 shall investigate and respond. If, after presentation of the complaint 37 to the charter entity, the individual or group determines that the char- 38 ter entity has not adequately addressed the complaint, they may present 39 that complaint to the board of regents, which shall investigate and 40 respond. The charter entity and the board of regents shall have the 41 power and the duty to issue appropriate remedial orders to charter 42 schools under their jurisdiction to effectuate the provisions of this 43 section. 44 (b) At the beginning of each school year, a charter school shall 45 provide the parent or guardian of each student enrolled in the charter 46 school information detailing the process by which a complaint can be 47 brought against the charter school pursuant to paragraph (a) of this 48 subdivision. In addition to detailing the process by which a complaint 49 can be brought, the information provided shall include, but not be 50 limited to the contact information for the board of trustees of the 51 charter school in which the student is enrolled, the contact information 52 for the charter entity of the charter school, and the contact informa- 53 tion for the board of regents, if the board of regents is not the char- 54 ter entity. Such information shall also be posted and updated annually 55 on the charter school's website. 
 S. 7462 18 1 § 19. Subdivisions 2 and 3 of section 2856 of the education law are 2 renumbered subdivisions 3 and 4 and a new subdivision 2 is added to read 3 as follows: 4 2. In the event that in any school year a charter school receives 5 combined payments from any local, state, or federal source that exceed 6 expenditures for such school year related to the operation of such char- 7 ter school by seven percent, then any excess funds above such amount 8 shall be returned proportionately to all school districts that have paid 9 tuition to such charter school. 10 § 20. Subdivision 3 of section 2856 of the education law, as added by 11 chapter 4 of the laws of 1998 and as renumbered by section nineteen of 12 this act, is amended to read as follows: 13 3. (a) In the event of the failure of the school district to make 14 payments required by this section, the state comptroller shall deduct 15 from any state funds which become due to such school district an amount 16 equal to the unpaid obligation. The comptroller shall pay over such sum 17 to the charter school upon certification of the commissioner. The 18 commissioner shall promulgate regulations to implement the provisions of 19 this subdivision. 20 (b) At least thirty days prior to submission of a request for an 21 intercept of state funds pursuant to paragraph (a) of this subdivision, 22 the charter school shall provide the school district of residence with a 23 list of students whose tuition is proposed to be included in the inter- 24 cept and documentation of any special education services provided by the 25 charter school, the cost of which would be included in the intercept. 26 If the school district objects to inclusion of the tuition or cost of 27 services in the intercept, the school district shall provide the charter 28 school with a written statement of its reasons for objecting to the 29 intercept that identifies the students whose costs are in dispute and 30 the charter school shall schedule a resolution session for the purpose 31 of resolving the dispute, which shall be held within five business days 32 of receipt of the school district's objection. Each party shall ensure 33 that their representatives who attend the resolution are fully author- 34 ized to bind the school district or charter school, and any agreement 35 reached at the resolution session shall be final and binding upon both 36 parties. In the event the school district does not notify the charter 37 school of its objections within ten days of its receipt of the list of 38 students or fails to participate in a resolution session, the school 39 district shall be deemed to have waived its objections to the intercept 40 and the charter school shall not be required to offer a resolution 41 session. If the parties are unable to reach agreement at a resolution 42 session, they may agree to schedule additional resolution sessions or, 43 if one of the parties informs the other that agreement is not possible, 44 the dispute may be raised by the district as a charter school complaint 45 pursuant to subdivision four of section twenty-eight hundred fifty-five 46 of this article, or, if the dispute concerns the residency of a student, 47 an appeal may be brought pursuant to paragraph (c) of this subdivision. 48 The department shall not process an intercept for tuition or the cost of 49 services of a student whose costs are in dispute until the charter 50 school notifies the department that a resolution session has been held 51 and no agreement has been reached, or that no resolution session is 52 required because the school district failed to provide timely notice or 53 failed to participate in a scheduled resolution session. 54 (c) In the event of a dispute over the residency of a student, the 55 school district shall make its own residency determination pursuant to 56 the regulations of the commissioner after considering the proof of resi- 
 S. 7462 19 1 dency submitted by the charter school, and such determination may be 2 appealed to the commissioner by the charter school or by the parent or 3 other person in parental relation or both pursuant to section three 4 hundred ten of this chapter. During the pendency of such appeal, the 5 student shall be deemed enrolled in the school district, shall be enti- 6 tled to services pursuant to subdivision four of section twenty-eight 7 hundred fifty-three of this article, and the school district shall be 8 liable for charter school tuition, provided that upon a final determi- 9 nation in such appeal that the student is not a resident of the school 10 district, the school district may deduct the cost of such tuition and 11 services from future payments due the charter school. 12 § 21. Subdivision 2 of section 2857 of the education law, as amended 13 by chapter 101 of the laws of 2010, is amended and a new subdivision 2-a 14 is added to read as follows: 15 2. Each charter school shall submit to the charter entity and to the 16 board of regents an annual report. Such report shall be issued no later 17 than the first day of August of each year for the preceding school year 18 and shall be made publicly available by such date and shall be posted on 19 both the charter school's [website] and the department's websites. The 20 annual report shall be in such form as shall be prescribed by the 21 commissioner and shall include at least the following components: 22 (a) a charter school report card, which shall include measures of the 23 comparative academic and fiscal performance of the school, as prescribed 24 by the commissioner in regulations adopted for such purpose. Such meas- 25 ures shall include, but not be limited to, graduation rates, dropout 26 rates, performance of students on standardized tests, college entry 27 rates, total spending per pupil and administrative spending per pupil. 28 Such measures shall be presented in a format that is easily comparable 29 to similar public schools. In addition, the charter school shall ensure 30 that such information is easily accessible to the community including 31 making it publicly available by transmitting it to local newspapers of 32 general circulation and making it available for distribution at board of 33 trustee meetings[.]; 34 (b) discussion of the progress made towards achievement of the goals 35 set forth in the charter[.]; 36 (c) a certified financial statement setting forth, by appropriate 37 categories, the revenues and expenditures for the preceding school year, 38 including a copy of the most recent independent fiscal audit of the 39 school and any audit conducted by the comptroller of the state of New 40 York[.]; 41 (d) efforts taken by the charter school in the existing school year, 42 and a plan for efforts to be taken in the succeeding school year, to 43 meet or exceed the enrollment [and retention targets set by the board of 44 regents or the board of trustees of the state university of New York, as 45 applicable, of students with disabilities, English language learners, 46 and students who are eligible applicants for the free and reduced price 47 lunch program established pursuant to paragraph (e) of subdivision four 48 of section twenty-eight hundred fifty-one of this article.] requirements 49 of subparagraph (ii) of paragraph (b) of subdivision two of section 50 twenty-eight hundred fifty-four of this article; 51 (e) for any charter school that contracts with a management company or 52 any other entity that provides services to the charter school, a 53 detailed statement of services provided to the charter school by the 54 management company and/or any other entity and the amount the charter 55 school pays for such services. The department shall post the annual 56 reports submitted by charter schools on the department's website; and 
 S. 7462 20 1 (f) a notice of any relationship that may exist between any member of 2 a charter school's board of trustees or charter school staff and any 3 for-profit or not-for-profit corporate or other business entity that is 4 responsible for the administration, management or operation of such 5 charter school or related vendor. 6 2-a. Each charter school shall post contact information for the 7 school's board of trustees as well as the name and contact information 8 of the school's charter entity on the website of the charter school. 9 § 22. Subdivision 7 of section 179-q of the state finance law, as 10 added by chapter 166 of the laws of 1991, is amended to read as follows: 11 7. "Not-for-profit organization" or "organization" means a domestic 12 corporation incorporated pursuant to or otherwise subject to the not- 13 for-profit corporation law, a charitable organization registered with 14 the secretary of state, a special act corporation created pursuant to 15 chapter four hundred sixty-eight of the laws of eighteen hundred nine- 16 ty-nine, as amended, a special act corporation formed pursuant to chap- 17 ter two hundred fifty-six of the laws of nineteen hundred seventeen, as 18 amended, a corporation authorized pursuant to an act of congress 19 approved January fifth, nineteen hundred five, (33 stat. 599), as 20 amended, a corporation established by merger of charitable organizations 21 pursuant to an order of the supreme court, New York county dated July 22 twenty-first, nineteen hundred eighty-six and filed in the department of 23 state on July twenty-ninth, nineteen hundred eighty-six, or a corpo- 24 ration having tax exempt status under section 501(c)(3) of the United 25 States Internal revenue code, and shall further be deemed to mean and 26 include any federation of charitable organizations. Provided, however, 27 that a public educational entity within the meaning of section seventy- 28 one of part C of chapter fifty-seven of the laws of two thousand four 29 shall not be deemed a "not-for-profit organization" or "organization" 30 for purposes of this article. 31 § 23. This act shall take effect immediately.