S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1420
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2025
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on New York City Education
 
 AN ACT to amend the education law, in relation to the reimbursement rate
   for charter school facilities expansion in a city school district in a
   city having a population of one million or more inhabitants

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph 5 of paragraph (e) of subdivision 3 of section
 2853 of the education law, as amended by section 11 of part A of chapter
 54  of  the laws of 2016, clause (B) as amended by section 5 of part YYY
 of chapter 59 of the laws of 2017, is amended to read as follows:
   (5) (A) For a new charter school whose charter is granted  or  for  an
 existing charter school whose expansion of grade level, pursuant to this
 article, is approved by their charter entity, if the appeal results in a
 determination  in  favor of the charter school, the city school district
 shall pay the charter school an amount attributable to the  grade  level
 expansion  or  the  formation of the new charter school that is equal to
 the lesser of:
   [(A)] (I) the  [actual]  REASONABLE  rental  cost  of  an  alternative
 privately owned site selected by the charter school or
   [(B)] (II) thirty percent of the product of the charter school's basic
 tuition  for  the  current  school  year and [(i)] (1) for a new charter
 school that first commences instruction on  or  after  July  first,  two
 thousand  fourteen,  the  charter  school's  current year enrollment; or
 [(ii)] (2) for a charter school which expands its grade level,  pursuant
 to this article, the positive difference of the charter school's enroll-
 ment in the current school year minus the charter school's enrollment in
 the school year prior to the first year of the expansion.
   (B)  FOR PURPOSES OF THIS SUBPARAGRAPH, THE "REASONABLE RENTAL COST OF
 AN ALTERNATIVE PRIVATELY OWNED SITE" SHALL MEAN A RENTAL  COST  THAT  IS
 REASONABLE,  APPROPRIATE,  AND COMPARABLE TO THE RENTAL COSTS OF FACILI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03870-01-5
              

 S. 1420                             2
 
 TIES AT A SIMILAR LOCATION, AND OF A COMPARABLE QUALITY,  CONDITION  AND
 SIZE,  NOT  TO  EXCEED  THE  ACTUAL  RENTAL COST INCURRED BY THE CHARTER
 SCHOOL.  REASONABLE RENTAL COSTS MAY ONLY BE APPLIED TO PHYSICAL FACILI-
 TIES THAT ARE OR WILL BE IN USE BY THE CHARTER SCHOOL AS A SCHOOL DURING
 THE  FULL  TERM  OF THE LEASE OR SUBLEASE. REASONABLE RENTAL COSTS SHALL
 NOT INCLUDE THE COST OF CONSTRUCTION OR RENOVATION.
   § 2. This act shall take effect immediately.