S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4124
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Education
 
 AN ACT to amend the education law, in relation to charter schools
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04340-01-9

 A. 4124                             2

 of  this  article. For charter schools established in conjunction with a
 for-profit business or corporate entity, the charter shall  specify  the
 extent  of the entity's participation in the management and operation of
 the  school], AND PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL AN APPLICA-
 TION TO ESTABLISH A CHARTER SCHOOL OR  APPROVAL  TO  OPERATE  A  CHARTER
 SCHOOL  BE  GRANTED TO A FOR-PROFIT BUSINESS OR CORPORATE ENTITY AUTHOR-
 IZED TO DO BUSINESS IN THIS STATE NOR IN  ANY  MANNER  WHATSOEVER  SHALL
 THEY  HAVE  AN  INVOLVEMENT IN THE MANAGEMENT AND OPERATION OF A CHARTER
 SCHOOL. THE APPLICATION SHALL INCLUDE THE AMOUNT OF ANY  MANAGEMENT  FEE
 TO BE PAID TO ANY NOT-FOR-PROFIT CORPORATION WORKING IN CONJUNCTION WITH
 THE APPLICANTS.  SALARIES OF THE EMPLOYEES OF SUCH NOT-FOR-PROFIT CORPO-
 RATION  MAY  NOT  EXCEED  THE  SALARIES  FOR COMPARABLE POSITIONS IN THE
 SCHOOL DISTRICT OF LOCATION.
   § 3. Paragraphs (d), (h), (p) and (v) of subdivision 2 of section 2851
 of the education law, paragraphs (d) and (h) as added by  chapter  4  of
 the laws of 1998 and paragraphs (p) and (v) as amended by chapter 101 of
 the laws of 2010, are amended to read as follows:
   (d)  Admission  policies and procedures for the school, which shall be
 consistent with the requirements of subdivision two of  section  twenty-
 eight  hundred  fifty-four  of this article.  FOR CHARTER RENEWALS, SUCH
 POLICIES AND PROCEDURES SHALL INCLUDE PLANS  FOR  ENSURING  THE  STUDENT
 ENROLLMENT  OF  THE  CHARTER  SCHOOL INCLUDES A COMPARABLE PERCENTAGE OF
 STUDENTS ON FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH  LANGUAGE
 LEARNERS AS THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED.
   (h)  The  rules  and  procedures by which students may be disciplined,
 including but not limited to expulsion or suspension  from  the  school,
 which  shall be consistent with the requirements of due process and with
 federal laws and regulations governing the placement  of  students  with
 disabilities.  SUCH  RULES AND PROCEDURES SHALL INCLUDE THE PROVISION OF
 EDUCATIONAL SERVICES TO ANY STUDENT ON LONG TERM  SUSPENSION  OR  EXPUL-
 SION.
   (p)  The  term  of  the  proposed charter, which shall not exceed five
 years DURING WHICH INSTRUCTION IS PROVIDED TO PUPILS; provided  however,
 in the case of charters issued pursuant to subdivision nine-a of section
 twenty-eight hundred fifty-two of this article the term of such proposed
 charter  shall not exceed five years in which instruction is provided to
 pupils plus the period commencing with the effective date of the charter
 and ending with the opening of the school for instruction.
   (v) A code of ethics for the charter school,  setting  forth  for  the
 guidance  of  its  trustees,  officers  and  employees  the standards of
 conduct expected of them including standards with respect to  disclosure
 of  conflicts  of interest regarding any matter brought before the board
 of trustees.  SUCH CODE OF ETHICS SHALL BE IN  COMPLIANCE  WITH  SECTION
 EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
   §  4.  Paragraph (a) of subdivision 4 of section 2851 of the education
 law, as added by chapter 4 of the laws of 1998, is amended  to  read  as
 follows:
   (a)  A  report  of the progress of the charter school in achieving the
 educational objectives set forth  in  the  charter.  SUCH  REPORT  SHALL
 INCLUDE   DISAGGREGATED   STUDENT   PERFORMANCE  DATA  FOR  ALL  STUDENT
 SUBGROUPS.
   § 5. Paragraphs (c) and (d) of subdivision 2 of section  2852  of  the
 education  law,  paragraph  (c) as amended and paragraph (d) as added by
 section 2 of part D-2 of chapter 57 of the laws of 2007, are amended and
 two new paragraphs (e) and (f) are added to read as follows:

 A. 4124                             3
 
   (c) granting the application is likely to improve student learning and
 achievement and materially further the purposes set out  in  subdivision
 two of section twenty-eight hundred fifty of this article; [and]
   (d)  in  a  school  district  where  the  total enrollment of resident
 students attending charter schools in the base year is greater than five
 percent of the total public school enrollment of the school district  in
 the  base  year  [(i)] granting the application would have a significant
 educational benefit to the students  expected  to  attend  the  proposed
 charter  school [or (ii) the school district in which the charter school
 will be located consents to such  application].  FOR  PURPOSES  OF  THIS
 PARAGRAPH,  IN  A  CITY  HAVING A POPULATION OF ONE MILLION OR MORE, THE
 SCHOOL DISTRICT SHALL BE THE COMMUNITY SCHOOL DISTRICT;
   (E) THE APPLICATION FOR THE CHARTER SCHOOL IS APPROVED BY THE BOARD OF
 EDUCATION OF THE SCHOOL DISTRICT WHERE  THE  CHARTER  SCHOOL  IS  TO  BE
 LOCATED; AND
   (F)  THE  CHARTER  ENTITY  SHALL NOT APPROVE AN APPLICATION THAT WOULD
 HAVE THE EFFECT OF INCREASING THE RACIAL ISOLATION OF A SCHOOL DISTRICT.
   § 6. Subdivision 5-b of section 2852 of the education law, as added by
 chapter 4 of the laws of 1998, is amended to read as follows:
   5-b. If the board of regents returns a proposed charter to the charter
 entity pursuant to the provisions of subdivision five-a of this section,
 such charter entity shall reconsider the proposed charter,  taking  into
 consideration  the  comments and recommendation of the board of regents.
 Thereafter, the charter entity shall resubmit the  proposed  charter  to
 the  board  of  regents  with modifications, provided that the applicant
 consents in writing to such modifications, resubmit the proposed charter
 to the board of regents without modifications WITH  AN  EXPLANATION  WHY
 THE  MODIFICATIONS  ARE NOT BEING MADE, or abandon the proposed charter.
 The board of regents shall review each such resubmitted proposed charter
 in  accordance  with  the  provisions  of  subdivision  five-a  of  this
 section[;  provided,  however, that it shall be the duty of the board of
 regents to approve and issue a proposed charter resubmitted by the char-
 ter entity described in paragraph (b) of subdivision  three  of  section
 twenty-eight hundred fifty-one of this article within thirty days of the
 resubmission  of such proposed charter or such proposed charter shall be
 deemed approved and issued at the expiration of such period].
   § 7. Subdivision 7 of section 2852 of the education law is amended  by
 adding a new paragraph (c) to read as follows:
   (C)  WHEN  A  REVISION OF A CHARTER INVOLVES AN INCREASE IN ENROLLMENT
 WHICH BRINGS TOTAL ENROLLMENT IN CHARTER SCHOOLS IN THE SCHOOL  DISTRICT
 OF  LOCATION  ABOVE FIVE PERCENT THE REVISION SHALL BE DENIED UNLESS THE
 SCHOOL DISTRICT OF LOCATION APPROVES THE REVISION OR  THE  RESIDENTS  OF
 THE  SCHOOL  DISTRICT  APPROVE  THE REVISION THROUGH A REFERENDUM OF THE
 ELIGIBLE VOTERS TO BE HELD IN CONJUNCTION WITH THE ANNUAL  BUDGET  VOTE.
 FOR  PURPOSES  OF  THIS  PARAGRAPH  IN A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE THE SCHOOL DISTRICT OF LOCATION SHALL BE  THE  COMMUNITY
 SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS LOCATED.
   §  8. Subdivision 10 of section 2852 of the education law, as added by
 section 3 of part D-2 of chapter 57 of the laws of 2007, is  amended  to
 read as follows:
   10. Except in the case of a charter school formed by a school district
 as  a  charter  entity pursuant to paragraph (a) of subdivision three of
 section twenty-eight hundred fifty-one of this article, a charter school
 formed by approval of the regents or by operation of  law  on  or  after
 [March] JANUARY fifteenth in any school year shall not commence instruc-
 tion until July of the second school year next following.

 A. 4124                             4
 
   §  9.  Subdivision 2 of section 2853 of the education law, as added by
 chapter 4 of the laws of 1998, is amended to read as follows:
   2.  The  board of regents and charter entity shall oversee each school
 approved by such entity, and may visit, examine  into  and  inspect  any
 charter  school,  including  the records of such school, under its over-
 sight. Oversight by a charter entity and the board of regents  shall  be
 sufficient  to  ensure that the charter school is in compliance with all
 applicable laws, regulations and charter  provisions.    THE  DEPARTMENT
 SHALL INCLUDE CHARTER SCHOOLS IN ANY REVIEW OR AUDIT OF STATE ASSESSMENT
 ADMINISTRATION OR SCORING.
   §  10. Paragraph (a) of subdivision 3 of section 2853 of the education
 law, as amended by chapter 101 of the laws of 2010, is amended  to  read
 as follows:
   (a)  A  charter  school  may  be located in part of an existing public
 school building, in space provided on a private work site, in  a  public
 building or in any other suitable location, PROVIDED, HOWEVER, A CHARTER
 SCHOOL  SHALL  NOT BE LOCATED IN ANY PART OF AN EXISTING SCHOOL BUILDING
 WHEN SUCH SHARING WOULD IMPACT THE PUBLIC SCHOOL'S ABILITY TO  MEET  THE
 CLASS  SIZE TARGETS ESTABLISHED PURSUANT TO SECTION TWO HUNDRED ELEVEN-D
 OF THIS CHAPTER.   Provided, however, before a  charter  school  may  be
 located in part of an existing public school building, the charter enti-
 ty shall provide notice to the parents or guardians of the students then
 enrolled in the existing school building and shall hold a public hearing
 for purposes of discussing the location of the charter school. A charter
 school may own, lease or rent its space.
   § 11. Subdivision 3 of section 2853 of the education law is amended by
 adding two new paragraphs (f) and (g) to read as follows:
   (F)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CAPITAL FACILITY, OR
 OTHER IMPROVEMENTS MADE IN PUBLIC SCHOOL BUILDINGS OR EQUIPMENT  WITH  A
 PERIOD  OF  PROBABLE  USEFULNESS  OF  FIVE OR MORE YEARS, WITH PUBLIC OR
 PRIVATE FUNDS, TO ACCOMMODATE CHARTER SCHOOLS, SHALL REQUIRE MATCHING OR
 COMPARABLE IMPROVEMENTS BE MADE FOR OTHER DISTRICT  SCHOOLS  LOCATED  IN
 THE SAME BUILDING.
   (G) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY CONSTRUCTION OR CAPI-
 TAL  IMPROVEMENT  MADE  IN ACCORDANCE WITH THIS ARTICLE SHALL BE MADE IN
 ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF ARTICLES EIGHT AND NINE
 OF THE LABOR LAW.
   § 12. Paragraphs (c) and (e) of subdivision 1 of section 2854  of  the
 education  law,  paragraph  (c)  as amended by section 10-b of part A of
 chapter 56 of the laws of 2014 and paragraph (e) as added by  chapter  4
 of the laws of 1998, are amended to read as follows:
   (c)  A  charter  school  shall be subject to the financial audits, the
 audit procedures, and the audit requirements set forth in  the  charter,
 and  [shall]  MAY  be  subject  to audits of the comptroller of the city
 school district of the city of New York for charter schools  located  in
 New  York  city,  [and] to the audits of the comptroller of the state of
 New York for charter schools located in the rest of the state,  [at  his
 or  her  discretion] OR THE CHARTER ENTITY, with respect to the school's
 financial operations. Such procedures and standards shall be  consistent
 with  generally  accepted  accounting  and  audit standards. Independent
 fiscal audits shall be required at least once annually.
   (e) A charter school shall be subject to the  provisions  of  articles
 six  and  seven  of the public officers law IN THE SAME MANNER AS PUBLIC
 SCHOOL DISTRICTS.
   § 13. Subdivision 1 of section 2854 of the education law is amended by
 adding a new paragraph (g) to read as follows:

 A. 4124                             5
 
   (G) A CHARTER SCHOOL SHALL BE SUBJECT TO  THE  PROVISIONS  OF  SECTION
 EIGHT HUNDRED SIX OF THE GENERAL MUNICIPAL LAW.
   §  14. Subdivision 2 of section 2854 of the education law, as added by
 chapter 4 of the laws of 1998, paragraph (a) as amended by  chapter  101
 of  the  laws  of  2010,  and  paragraph  (b) as amended by section 3 of
 subpart A of part B of chapter 20 of the laws of  2015,  is  amended  to
 read as follows:
   2.  Admissions;  enrollment; students.   (a) A charter school shall be
 nonsectarian in its programs, admission policies, employment  practices,
 and  all other operations and shall not charge tuition or fees; provided
 that a charter school may require the payment of fees on the same  basis
 and  to  the same extent as other public schools. A charter school shall
 not discriminate against any student, employee or any  other  person  on
 the  basis  of  ethnicity, national origin, gender, or disability or any
 other ground that would be unlawful if done by a  school.  Admission  of
 students  shall  not  be  limited  on the basis of intellectual ability,
 measures of achievement or aptitude, athletic ability, disability, race,
 creed, gender, national origin, religion, or ancestry; provided,  howev-
 er,  that  nothing  in  this  article  shall be construed to prevent the
 establishment of  a  single-sex  charter  school  or  a  charter  school
 designed to provide expanded learning opportunities for students at-risk
 of  academic  failure or students with disabilities and English language
 learners; and provided, further, that the charter school  shall  [demon-
 strate good faith efforts to] attract and retain a comparable or greater
 enrollment of students with disabilities, English language learners, and
 students  who  are  eligible  applicants  for the free and reduced price
 lunch program when compared to the enrollment figures for such  students
 in  the  school  district  in which the charter school is located.  IF A
 CHARTER SCHOOL IS NOT SUCCESSFUL IN ATTRACTING A COMPARABLE  OR  GREATER
 ENROLLMENT  OF STUDENTS WITH DISABILITIES AND LIMITED ENGLISH PROFICIENT
 STUDENTS AS COMPARED TO THE ENROLLMENT FIGURES FOR SUCH STUDENTS IN  THE
 SCHOOL  DISTRICT  IN  WHICH  THE  CHARTER SCHOOL IS LOCATED SUCH CHARTER
 SCHOOL SHALL PROVIDE THE CHARTERING ENTITY WITH A PLAN FOR IMPROVING THE
 ENROLLMENT OF SUCH STUDENTS IN THE FOLLOWING  YEAR.  FAILURE  TO  COMPLY
 WITH  THIS  REQUIREMENT  FOR  TWO  CONSECUTIVE YEARS SHALL BE SUBJECT TO
 REVOCATION IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION  TWENTY-EIGHT
 HUNDRED FIFTY-FIVE OF THIS ARTICLE. A charter shall not be issued to any
 school that would be wholly or in part under the control or direction of
 any  religious  denomination,  or  in  which any denominational tenet or
 doctrine would be taught.
   (b) Any child who is qualified under the laws of this state for admis-
 sion to a public school is qualified for admission to a charter  school.
 Applications  for  admission to a charter school shall be submitted on a
 uniform application form created by the department  and  shall  be  made
 available  by  a charter school in languages predominately spoken in the
 community in which such charter school  is  located.  The  school  shall
 enroll  each  eligible  student  who submits a timely application by the
 first day of April each year, unless the number of applications  exceeds
 the  capacity  of  the  grade level or building. In such cases, students
 shall be accepted from among applicants by a random  selection  process,
 provided,  however,  that  an enrollment preference shall be provided to
 pupils WHEN THE CHARTER SCHOOL IS LOCATED WITHIN ONE MILE OF THE PUPILS'
 RESIDENCE, PUPILS returning to the charter school in the second  or  any
 subsequent  year of operation and pupils residing in the school district
 in which the charter school is located, and siblings of  pupils  already
 enrolled  in the charter school AND STUDENTS ON FREE LUNCH, AND STUDENTS

 A. 4124                             6
 
 WITH DISABILITIES, AND STUDENTS WITH LIMITED ENGLISH PROFICIENCY.  Pref-
 erence  may  also  be  provided  to children of employees of the charter
 school or charter management organization, provided that  such  children
 of  employees may constitute no more than fifteen percent of the charter
 school's total enrollment. The commissioner shall establish  regulations
 to  require that the random selection process conducted pursuant to this
 paragraph be performed in a transparent  and  equitable  manner  and  to
 require  that  the  time  and  place  of the random selection process be
 publicized in a manner consistent with the requirements of  section  one
 hundred  four  of the public officers law and be open to the public. For
 the purposes of this paragraph and paragraph (a)  of  this  subdivision,
 the  school  district in which the charter school is located shall mean,
 for the city school district of the city  of  New  York,  the  community
 district  in which the charter school is located.  THE CHARTER ENTITY IS
 RESPONSIBLE FOR ENSURING THE SELECTION PROCESS IS CONDUCTED  IN  ACCORD-
 ANCE  WITH  THIS PARAGRAPH. IF THE CHARTER ENTITY DETERMINES THE PROCESS
 IS NOT IN COMPLIANCE WITH  THIS  PARAGRAPH,  THE  CHARTER  ENTITY  SHALL
 CONDUCT THE PROCESS.
   (c) A charter school shall serve one or more of the grades one through
 twelve,  and  shall  limit  admission  to pupils within the grade levels
 served. Nothing herein shall prohibit a charter school from establishing
 a kindergarten program.
   (d) A student may withdraw from a  charter  school  at  any  time  and
 enroll in a public school. A CHARTER SCHOOL MUST PROVIDE A REPORT TO THE
 CHARTERING  ENTITY  EACH  YEAR INDICATING THE NUMBER OF STUDENTS LEAVING
 THE CHARTER SCHOOL, THE MONTHS IN WHICH THE STUDENTS LEAVE  THE  SCHOOL,
 THE  REASON  THE STUDENTS LEAVE THE SCHOOL AND THE SCHOOL THE STUDENT IS
 CURRENTLY ATTENDING. A  charter  school  may  refuse  admission  to  any
 student  who  has  been expelled or suspended from a public school until
 the period of  suspension  or  expulsion  from  the  public  school  has
 expired, consistent with the requirements of due process.
   § 15. Paragraphs (b-1), (c) and (c-1) of subdivision 3 of section 2854
 of  the  education  law, paragraph (b-1) as amended by section 6 of part
 D-2 of chapter 57 of the laws of 2007, and paragraphs (c) and  (c-1)  as
 added by chapter 4 of the laws of 1998, are amended to read as follows:
   (b-1) The employees of a charter school [that is not a conversion from
 an  existing  public  school] shall [not] be deemed members of [any] THE
 existing collective bargaining unit representing employees of the school
 district in which the charter school is located, and the charter  school
 and  its  employees  shall  [not]  be subject to any existing collective
 bargaining agreement between the  school  district  and  its  employees.
 [Provided,  however,  that  (i) if the student enrollment of the charter
 school on the first day on which the charter  school  commences  student
 instruction  exceeds  two  hundred fifty or if the average daily student
 enrollment of such school exceeds two  hundred  fifty  students  at  any
 point  during  the  first  two  years after the charter school commences
 student instruction, all employees of the school who  are  eligible  for
 representation  under article fourteen of the civil service law shall be
 deemed to be represented in a separate negotiating unit at  the  charter
 school  by  the same employee organization, if any, that represents like
 employees in the  school  district  in  which  such  charter  school  is
 located;  (ii)  the provisions of subparagraph (i) of this paragraph may
 be waived in up to ten charters issued  on  the  recommendation  of  the
 charter  entity  set  forth  in  paragraph  (b)  of subdivision three of
 section twenty-eight  hundred  fifty-one  of  this  article;  (iii)  the
 provisions of subparagraph (i) of this paragraph shall not be applicable

 A. 4124                             7

 to  the  renewal  or  extension  of  a charter; and (iv) nothing in this
 sentence shall be construed to subject a charter school subject  to  the
 provisions of this paragraph or its employees to any collective bargain-
 ing agreement between any public school district and its employees or to
 make  the  employees of such charter school part of any negotiating unit
 at such school district. The charter school may, in its sole discretion,
 choose whether or not to offer the  terms  of  any  existing  collective
 bargaining  to  school employees.] PROVIDED, HOWEVER, THAT A MAJORITY OF
 THE MEMBERS OF A NEGOTIATING UNIT WITHIN A CHARTER SCHOOL MAY MODIFY, IN
 WRITING, A COLLECTIVE BARGAINING AGREEMENT FOR THE PURPOSES  OF  EMPLOY-
 MENT IN THE CHARTER SCHOOL WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF
 THE CHARTER SCHOOL.
   (c)  The employees of the charter school [may] SHALL be deemed employ-
 ees of the local school district for the purpose of providing retirement
 benefits, including membership in the teachers'  retirement  system  and
 other retirement systems open to employees of public schools. The finan-
 cial  contributions for such benefits shall be the responsibility of the
 charter school and the school's employees. The commissioner, in  consul-
 tation  with the comptroller, shall develop regulations to implement the
 provisions of this paragraph in a manner that allows charter schools  to
 provide retirement benefits to its employees in the same manner as other
 public school employees.
   (c-1)  Reasonable  access.  (i) If employees of the charter school are
 not represented, any charter school chartered pursuant to  this  article
 must  afford  reasonable  access to any employee organization during the
 reasonable proximate period before any representation question is raised
 IN THE SAME MANNER AS ANY PUBLIC EMPLOYER; or
   (ii) If the  employee  organization  is  a  challenging  organization,
 reasonable access must be provided to any organization seeking to repre-
 sent employees beginning with a date reasonably proximate to a challenge
 period. Reasonableness is defined, at a minimum, as access equal to that
 provided to the incumbent organization.
   §  16.  Subdivision 1 of section 2855 of the education law, as amended
 by chapter 101 of the laws of 2010, is amended to read as follows:
   1. The charter entity, or the board of regents, [may] SHALL  terminate
 a charter upon any of the following grounds:
   (a)  When  a  charter  school's outcome on student assessment measures
 adopted by the board of regents falls below the level that  would  allow
 the  commissioner  to  revoke the registration of another public school,
 and student achievement on such measures [has not shown improvement] HAS
 NOT MET ANNUAL YEARLY PROGRESS over the preceding three school years;
   (b) Serious violations of law;
   (c) Material and  substantial  violation  of  the  charter,  including
 fiscal mismanagement AND FAILURE TO MEET STUDENT PERFORMANCE TARGETS;
   (d)  When  the public employment relations board makes a determination
 that the charter school demonstrates a practice and pattern of egregious
 and intentional violations of subdivision one  of  section  two  hundred
 nine-a of the civil service law involving interference with or discrimi-
 nation  against  employee  rights  under  article  fourteen of the civil
 service law; [or]
   (e) Repeated failure to comply with the requirement to meet or  exceed
 enrollment  and retention targets of students with disabilities, English
 language learners, and students who are eligible applicants for the free
 and reduced price lunch program pursuant to targets established  by  the
 board of regents or the board of trustees of the state university of New
 York,  as applicable. Provided, however, if no grounds for terminating a

 A. 4124                             8
 
 charter are established pursuant to this section other than pursuant  to
 this  paragraph,  and  the  charter school demonstrates that it has made
 extensive  efforts  to  recruit  and  retain  such  students,  including
 outreach  to parents and families in the surrounding communities, widely
 publicizing the lottery for such school,  and  efforts  to  academically
 support such students in such charter school, then the charter entity or
 board of regents may retain such charter[.]; OR
   (F)  FAILURE  TO ENROLL A COMPARABLE PERCENTAGE OF STUDENTS QUALIFYING
 FOR FREE LUNCH, STUDENTS WITH DISABILITIES AND ENGLISH LANGUAGE LEARNERS
 FOR TWO CONSECUTIVE YEARS.
   § 17. Paragraph (b) of subdivision 1 of section 2856 of the  education
 law,  as  amended  by section 4 of part YYY of chapter 59 of the laws of
 2017, is amended and a new paragraph (a-1) is added to read as follows:
   (A-1) FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR
 AND  EACH  SCHOOL  YEAR  THEREAFTER  THE  STATE  SHALL  REIMBURSE SCHOOL
 DISTRICTS FOR THE LOCAL SHARE OF THE CHARTER SCHOOL TUITION  PAYMENT  OF
 ANY  STUDENTS ATTENDING A CHARTER SCHOOL IN THE JUNE PAYMENT REQUIRED BY
 SECTION THREE THOUSAND SIX HUNDRED NINE-A OF THIS  CHAPTER.  SUCH  LOCAL
 SHARE  SHALL  BE CALCULATED BY DEDUCTING FROM THE CHARTER SCHOOL TUITION
 PAYMENT THE PER PUPIL FOUNDATION AID AMOUNT ATTRIBUTABLE TO SUCH PUPIL.
   (b) The school district shall also pay directly to the charter  school
 any  federal  or  state  aid attributable to a student with a disability
 attending charter school in proportion to the level of services for such
 student with a disability that the charter school provides  directly  or
 indirectly.  Notwithstanding  anything  in this section to the contrary,
 amounts payable pursuant to this subdivision from state or  local  funds
 may be reduced pursuant to an agreement between the school and the char-
 ter  entity  set  forth  in  the charter. Payments made pursuant to this
 subdivision shall be made by the school district  in  six  substantially
 equal installments each year beginning on the first business day of July
 and  every two months thereafter. Amounts payable under this subdivision
 shall be determined by the commissioner. Amounts payable  to  a  charter
 school  in its first year of operation shall be based on the projections
 of initial-year enrollment set forth in the charter until actual enroll-
 ment data is reported to the school district by the charter school. SUCH
 ACTUAL ENROLLMENT SHALL BE REPORTED TO THE SCHOOL DISTRICT PRIOR TO EACH
 PAYMENT FOLLOWING THE INITIAL JULY  PAYMENT  WHICH  SHALL  BE  BASED  ON
 PROJECTED  ENROLLMENT.  Such  projections  shall  be reconciled with the
 actual enrollment as actual enrollment data is so reported  and  at  the
 end  of  the  school's  first year of operation and each subsequent year
 based on a final report of actual enrollment by the charter school,  and
 any necessary adjustments resulting from such final report shall be made
 to payments during the school's following year of operation.
   §  18.  Subdivisions  2  and  3  of section 2857 of the education law,
 subdivision 2 as amended and paragraph (a-1) of subdivision 3  as  added
 by  chapter  101  of  the  laws  of 2010 and subdivision 3 as amended by
 section 7 of part D-2 of chapter 57 of the laws of 2007, are amended  to
 read as follows:
   2.  Each  charter school shall submit to the charter entity and to the
 board of regents an annual report. Such report shall be issued no  later
 than  the first day of August of each year for the preceding school year
 AND PROVIDED TO THE SCHOOL DISTRICT WHERE THE CHARTER SCHOOL IS  LOCATED
 FOR  DISPLAY  ON THE SCHOOL DISTRICT WEBSITE, and shall be made publicly
 available by such date and shall  be  posted  on  the  charter  school's
 website.  The annual report shall be in such form as shall be prescribed
 by the commissioner and shall include at least the following components:

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   (a) a charter school report card, which shall include measures of  the
 comparative academic and fiscal performance of the school, as prescribed
 by  the commissioner in regulations adopted for such purpose. Such meas-
 ures shall include, but not be limited  to,  graduation  rates,  dropout
 rates,  performance  of students on standardized tests DISAGGREGATED FOR
 SUB-GROUPS, college entry rates, total spending per pupil  and  adminis-
 trative  spending  per  pupil.    Such  measures shall be presented in a
 format that is easily comparable to similar public schools. In addition,
 the charter school shall ensure that such information is easily accessi-
 ble to the community including making it publicly available by transmit-
 ting it to local newspapers of general circulation and making it  avail-
 able for distribution at board of trustee meetings.
   (b)  discussion  of the progress made towards achievement of the goals
 set forth in the charter.
   (c) a certified financial  statement  setting  forth,  by  appropriate
 categories, the revenues FROM ALL SOURCES and expenditures INCLUDING THE
 SALARY  OF  THE  SCHOOL  LEADER  AND ANY OTHER SALARIES IN EXCESS OF THE
 REPORTING REQUIREMENTS FOR PUBLIC SCHOOL DISTRICTS CONTAINED IN  SECTION
 SIXTEEN  HUNDRED  EIGHT OF THIS TITLE AND CONTRACTS WITH CONSULTANTS AND
 VENDORS for the preceding school year, including  a  copy  of  the  most
 recent independent fiscal audit of the school and any audit conducted by
 the comptroller of the state of New York.
   (d)  efforts  taken by the charter school in the existing school year,
 and a plan for efforts to be taken in the  succeeding  school  year,  to
 meet  or  exceed  enrollment  and  retention targets set by the board of
 regents or the board of trustees of the state university of New York, as
 applicable, of students with disabilities,  English  language  learners,
 and  students who are eligible applicants for the free and reduced price
 lunch program established pursuant to paragraph (e) of subdivision  four
 of section twenty-eight hundred fifty-one of this article.
   3. The board of regents shall report annually BY DECEMBER FIRST to the
 governor,  the temporary president of the senate, and the speaker of the
 assembly AND THE PUBLIC the following information:
   (a) The number, distribution, and a brief description of  new  charter
 schools established during the preceding year;
   (a-1) A list including the number of charter schools closed during the
 preceding  year, and a brief description of the reasons therefor includ-
 ing, but not limited to, non-renewal of the charter or revocation of the
 charter;
   (b) The department's assessment of the current and projected  program-
 matic  and  fiscal impact of charter schools on the delivery of services
 by school districts;
   (c) The academic progress of students attending  charter  schools,  as
 measured  against  comparable  public and nonpublic schools with similar
 student population characteristics [wherever practicable];
   (d) A list of all actions taken by a charter entity on charter  appli-
 cation  and the rationale for the renewal or revocation of any charters;
 and
   (e) Any other information regarding charter schools that the board  of
 regents deems necessary INCLUDING INFORMATION ON BEST PRACTICES OF CHAR-
 TER SCHOOLS THAT IMPROVE STUDENT PERFORMANCE.
   The  format  for this annual report shall be developed in consultation
 with representatives of school districts and charter school officials.
   § 19. Subparagraph (v) of paragraph a of subdivision 7 of section 1608
 of the education law, as amended by section 1 of chapter 514 of the laws

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 of 2016, is amended and a new subparagraph (vi)  is  added  to  read  as
 follows:
   (v) the projected amount of the unappropriated unreserved fund balance
 that  will  be retained if the proposed budget is adopted, the projected
 amount of the reserved fund balance, the projected amount of the  appro-
 priated  fund  balance,  the  percentage of the proposed budget that the
 unappropriated unreserved fund balance represents, the  actual  unappro-
 priated  unreserved  fund balance retained in the school district budget
 for the preceding school year, and the percentage of the school district
 budget for the preceding school  year  that  the  actual  unappropriated
 unreserved  fund  balance  represents,  and a schedule of reserve funds,
 setting forth the name of  each  reserve  fund,  a  description  of  its
 purpose, the balance as of the close of the third quarter of the current
 school  district  fiscal year and a brief statement explaining any plans
 for the use of each such reserve fund for the  ensuing  fiscal  year[.];
 AND
   (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
 THE NEXT SCHOOL YEAR.
   § 20. Subparagraph (v) of paragraph a of subdivision 7 of section 1716
 of the education law, as amended by section 2 of chapter 514 of the laws
 of  2016,  is  amended  and  a new subparagraph (vi) is added to read as
 follows:
   (v) the projected amount of the unappropriated unreserved fund balance
 that will be retained if the proposed budget is adopted,  the  projected
 amount  of the reserved fund balance, the projected amount of the appro-
 priated fund balance, the percentage of the  proposed  budget  that  the
 unappropriated  unreserved  fund balance represents, the actual unappro-
 priated unreserved fund balance retained in the school  district  budget
 for  the  preceding  school  year,  a schedule of reserve funds, setting
 forth the name of each reserve fund, a description of its  purpose,  the
 balance  as  of  the  close  of  the third quarter of the current school
 district fiscal year and a brief statement explaining any plans for  the
 use  of  each  such  reserve  fund  for  the ensuing fiscal year and the
 percentage of the school district budget for the preceding  school  year
 that  the  actual  unappropriated unreserved fund balance represents[.];
 AND
   (VI) THE PROJECTED AMOUNT OF PAYMENTS TO BE MADE TO CHARTER SCHOOLS IN
 THE NEXT SCHOOL YEAR.
   § 21. Paragraph t of subdivision 1 of section 3602  of  the  education
 law is amended by adding a new closing paragraph to read as follows:
   NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  LAW  TO  THE CONTRARY, IN
 COMPUTING APPROVED OPERATING EXPENSE PURSUANT TO THIS PARAGRAPH FOR CITY
 SCHOOL DISTRICTS OF THOSE CITIES HAVING A POPULATION IN  EXCESS  OF  ONE
 HUNDRED  TWENTY-FIVE THOUSAND BUT LESS THAN ONE MILLION; AN AMOUNT EQUAL
 TO (I) THE AMOUNT COMPUTED FOR THE SCHOOL DISTRICT FOR THE TWO  THOUSAND
 SIX--TWO THOUSAND SEVEN SCHOOL YEAR PURSUANT TO FORMER SUBDIVISION THIR-
 TY-SEVEN  OF THIS SECTION AS THIS SECTION EXISTED ON JUNE THIRTIETH, TWO
 THOUSAND SEVEN, (II) THE STATE FUNDS WHICH SUCH DISTRICT RECEIVED IN THE
 TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR  MAGNET  SCHOOL
 GRANTS  TO PUBLIC SCHOOLS, AND (III) THE STATE FUNDS WHICH SUCH DISTRICT
 RECEIVED IN THE TWO THOUSAND SIX--TWO THOUSAND  SEVEN  SCHOOL  YEAR  FOR
 TEACHER  SUPPORT,  SHALL BE ACCOUNTED FOR IN THE SAME WAY AS STATE FUNDS
 RECEIVED FOR SUCH PURPOSE IN THE TWO THOUSAND  SIX--TWO  THOUSAND  SEVEN
 SCHOOL YEAR.
   §  22. This act shall take effect immediately; provided, however, that
 the amendments to subdivision 1 of section 2856  of  the  education  law

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 made by section seventeen of this act shall not affect the expiration of
 such  subdivision  and shall expire therewith; provided further that the
 amendments to paragraph a of subdivision 7 of section 1608 of the educa-
 tion law made by section nineteen of this act shall not affect the expi-
 ration  of  such  paragraph  and  shall  expire  therewith; and provided
 further that the amendments to paragraph a of subdivision 7  of  section
 1716  of  the education law made by section twenty of this act shall not
 affect the expiration of such paragraph and shall expire therewith.