December 17, 1998

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read

twice and ordered printed, and when printed to be committed to the

Committee on Rules

AN ACT to amend the education law, in relation to establishing a charter

school program and to amend the state finance law, in relation to the

establishment of the charter schools stimulus fund

The People of the State of New York, represented in Senate and Assem-

bly, do enact as follows:

1 Section 1. The education law is amended by adding a new article 56 to

2 read as follows:

3 ARTICLE 56

4 CHARTER SCHOOLS

5 Section 2850. Short title; purpose.

6 2851. Eligible applicants; applications; submission.

7 2852. Issuance of charter.

8 2853. Charter school organization; oversight; facilities.

9 2854. General requirements.

10 2855. Causes for revocation or termination.

11 2856. Financing of charter schools.

12 2857. Notice; review and assessment.

13 § 2850. Short title; purpose. 1. This article shall be known and may

14 be cited as the "New York charter schools act of nineteen hundred nine-

15 ty-eight".

16 2. The purpose of this article is to authorize a system of charter

17 schools to provide opportunities for teachers, parents, and community

18 members to establish and maintain schools that operate independently of

19 existing schools and school districts in order to accomplish the follow-

20 ing objectives:

21 (a) Improve student learning and achievement;

22 (b) Increase learning opportunities for all students, with special

23 emphasis on expanded learning experiences for students who are at-risk

24 of academic failure;

25 (c) Encourage the use of different and innovative teaching methods;

26 (d) Create new professional opportunities for teachers, school admin-

27 istrators and other school personnel;

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

S LBD15889-01-8

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1 (e) Provide parents and students with expanded choices in the types of

2 educational opportunities that are available within the public school

3 system; and

4 (f) Provide schools with a method to change from rule-based to perfor-

5 mance-based accountability systems by holding the schools established

6 under this article accountable for meeting measurable student achieve-

7 ment results.

8 § 2851. Eligible applicants; applications; submission. 1. An appli-

9 cation to establish a charter school may be submitted by teachers,

10 parents, school administrators, community residents or any combination

11 thereof. Such application may be filed in conjunction with a college,

12 university, museum, educational institution, not-for-profit corporation

13 exempt from taxation under paragraph 3 of subsection (c) of section 501

14 of the internal revenue code or for-profit business or corporate entity

15 authorized to do business in New York state. For charter schools estab-

16 lished in conjunction with a for-profit business or corporate entity,

17 the charter shall specify the extent of the entity's participation in

18 the management and operation of the school.

19 2. The information provided on the application shall be consistent

20 with the provisions of this article and other applicable laws, rules and

21 regulations. Such information shall include:

22 (a) A mission statement for the school and a description of an educa-

23 tional program that implements one or more of the purposes described in

24 subdivision two of section twenty-eight hundred fifty of this article.

25 (b) A description of student achievement goals for the school's educa-

26 tional program and the chosen methods of evaluating that students have

27 attained the skills and knowledge specified for those goals. Such

28 educational program shall meet or exceed the student performance stand-

29 ards adopted by the board of regents for other public schools.

30 (c) The proposed governance structure of the school, including a list

31 of members of the initial board of trustees, a description of the quali-

32 fications, terms and method of appointment or election of trustees, the

33 organizational structure of the school, and the processes to be followed

34 by the school to promote parental and staff involvement in school gover-

35 nance.

36 (d) Admission policies and procedures for the school, which shall be

37 consistent with the requirements of subdivision two of section twenty-

38 eight hundred fifty-four of this article.

39 (e) A proposed budget and fiscal plan for the school, including

40 supporting evidence that the fiscal plan is sound and that sufficient

41 start-up funds will be available to the charter school.

42 (f) Requirements and procedures for programmatic and independent

43 fiscal audits at least once annually, with such audits being comparable

44 in scope to those required of other public schools.

45 (g) The hiring and personnel policies and procedures of the school,

46 including the qualifications to be used in the hiring of teachers,

47 school administrators and other school employees, and a description of

48 staff responsibilities.

49 (h) The rules and procedures by which students may be disciplined,

50 including but not limited to expulsion or suspension from the school,

51 which shall be consistent with the requirements of due process and with

52 federal laws and regulations governing the placement of students with

53 disabilities.

54 (i) The number of students to be served by the school, which number

55 shall be at least fifty at a single site and the minimum number of

56 teachers to be employed at the school, which shall be at least three.

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1 Provided, however, that a charter school may serve fewer than fifty

2 students or employ fewer than three teachers in the school's first year

3 of operation or if the applicant presents a compelling justification,

4 such as the school would serve a geographically remote region.

5 (j) Information regarding the facilities to be used by the school,

6 including the location of the school, if known, and the means by which

7 pupils will be transported to and from the school. If the facilities to

8 be used by the proposed school are not known at the time the application

9 is submitted, the applicant shall notify the charter entity and, if

10 applicable, the board of regents within ten business days of acquiring

11 facilities for such school; provided, however, that the charter school

12 must obtain a certificate of occupancy for such facilities prior to the

13 date on which instruction is to commence at the school.

14 (k) The name of the proposed charter school, which shall include the

15 words "charter school" and which shall not include the name or identifi-

16 cation of a for-profit business or corporate entity.

17 (l) A description of the ages and grade levels to be served by the

18 school.

19 (m) Identification and background information on all applicants and

20 proposed members of the board of trustees.

21 (n) The school calendar and school day schedule, which shall provide

22 at least as much instruction time during a school year as required of

23 other public schools.

24 (o) Types and amounts of insurance coverage to be obtained by the

25 school, which shall include adequate insurance for liability, property

26 loss and the personal injury of students. The commissioner and the

27 superintendent of insurance may jointly promulgate regulations to imple-

28 ment the provisions of this paragraph.

29 (p) The term of the proposed charter, which shall not exceed five

30 years.

31 (q) Evidence of adequate community support for and interest in the

32 charter school sufficient to allow the school to reach its anticipated

33 enrollment, and an assessment of the projected programmatic and fiscal

34 impact of the school on other public and nonpublic schools in the area.

35 (r) A description of the health and food services to be provided to

36 students attending the school.

37 (s) Methods and strategies for serving students with disabilities in

38 compliance with all federal laws and regulations relating thereto.

39 (t) Procedures to be followed in the case of the closure or dissol-

40 ution of the charter school, including provisions for the transfer of

41 students and student records to the school district in which the charter

42 school is located and for the disposition of the school's assets to the

43 school district in which the charter school is located or another char-

44 ter school located within the school district.

45 (u) Requirements for the grant of a diploma, if the school serves the

46 twelfth grade.

47 (v) A code of ethics for the charter school, setting forth for the

48 guidance of its trustees, officers and employees the standards of

49 conduct expected of them.

50 (w) A description of the residential facilities, if any, provided by

51 the charter school.

52 (x) Any other information relevant to the issuance of a charter

53 required by the charter entity.

54 3. An applicant shall submit the application to a charter entity for

55 approval. For purposes of this article, a charter entity shall be:

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1 (a) The board of education of a school district eligible for an appor-

2 tionment of aid under subdivision twelve of section thirty-six hundred

3 two of this chapter, provided that a board of education shall not

4 approve an application for a school to be operated outside the school

5 district's geographic boundaries and further provided that in a city

6 having a population of one million or more, the chancellor of any such

7 city school district shall be the charter entity established by this

8 paragraph;

9 (b) The board of trustees of the state university of New York; or

10 (c) The board of regents.

11 The board of regents shall be the only entity authorized to issue a

12 charter pursuant to this article. Notwithstanding any provision of this

13 subdivision to the contrary, an application for the conversion of an

14 existing public school to a charter school shall be submitted to, and

15 may only be approved by, the charter entity set forth in paragraph (a)

16 of this subdivision. Any such application for conversion shall be

17 consistent with this section, and the charter entity shall require that

18 the parents or guardians of a majority of the students then enrolled in

19 the existing public school vote in favor of converting the school to a

20 charter school.

21 4. Charters may be renewed, upon application, for a term of up to

22 five years in accordance with the provisions of this article for the

23 issuance of such charters pursuant to section twenty-eight hundred

24 fifty-two of this article; provided, however, that a renewal application

25 shall include:

26 (a) A report of the progress of the charter school in achieving the

27 educational objectives set forth in the charter.

28 (b) A detailed financial statement that discloses the cost of adminis-

29 tration, instruction and other spending categories for the charter

30 school that will allow a comparison of such costs to other schools, both

31 public and private. Such statement shall be in a form prescribed by the

32 board of regents.

33 (c) Copies of each of the annual reports of the charter school

34 required by subdivision two of section twenty-eight hundred fifty-seven

35 of this article, including the charter school report cards and the

36 certified financial statements.

37 (d) Indications of parent and student satisfaction.

38 Such renewal application shall be submitted to the charter entity no

39 later than six months prior to the expiration of the charter; provided,

40 however, that the charter entity may waive such deadline for good cause

41 shown.

42 § 2852. Issuance of charter. 1. A charter entity that receives an

43 application for approval of a charter school shall act on each request

44 received prior to October first of a calendar year on or before January

45 first of the succeeding calendar year, and a proposed charter between

46 the applicant and the charter entity resulting from such application

47 shall be executed on or before February first of such succeeding year.

48 Nothing in this subdivision shall be construed to prevent a charter

49 entity from receiving or acting upon an application at any time.

50 2. An application for a charter school shall not be approved unless

51 the charter entity finds that:

52 (a) the charter school described in the application meets the require-

53 ments set out in this article and all other applicable laws, rules and

54 regulations;

55 (b) the applicant can demonstrate the ability to operate the school in

56 an educationally and fiscally sound manner; and

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1 (c) granting the application is likely to improve student learning and

2 achievement and materially further the purposes set out in subdivision

3 two of section twenty-eight hundred fifty of this article.

4 In reviewing applications, the charter entity is encouraged to give

5 preference to applications that demonstrate the capability to provide

6 comprehensive learning experiences to students identified by the appli-

7 cants as at risk of academic failure.

8 3. A charter entity is not required to approve a charter and may

9 require an applicant to modify or supplement an application as a condi-

10 tion of approval. An existing private school shall not be eligible to

11 convert to a charter school. In determining whether an application

12 involves the conversion of an existing private school, the charter enti-

13 ty and the board of regents shall consider such factors as: (a) whether

14 the charter school would have the same or substantially the same board

15 of trustees and/or officers as an existing private school; (b) whether a

16 substantial proportion of employees of the charter school would be drawn

17 from such existing private school; (c) whether a substantial portion of

18 the assets and property of such existing private school would be trans-

19 ferred to the charter school; (d) whether the charter school would be

20 located at the same site as such existing private school; (e) upon

21 renewal only, whether such private school closed within one year of

22 establishment of the charter school; and (f) upon renewal only, whether

23 a substantial portion of the charter school's students were drawn from

24 such existing private school.

25 4. Each individual applicant seeking to establish a charter school

26 shall submit a full set of fingerprints to the charter entity for the

27 purpose of obtaining a state and federal criminal records check. The

28 division of criminal justice services is authorized to provide this

29 information to the federal bureau of investigation and to perform a

30 state and federal criminal records check on each applicant and report

31 the results to the charter entity and the board of regents. The crimi-

32 nal records check shall be completed to the satisfaction of the charter

33 entity prior to approval of the application. The department and the

34 division of criminal justice services shall enter into any memoranda of

35 agreement necessary to implement the requirements of this subdivision.

36 5. Upon approval of an application by a charter entity, the applicant

37 and charter entity shall enter into a proposed agreement allowing the

38 applicants to organize and operate a charter school. Such written agree-

39 ment, known as the charter, shall include (a) the information required

40 by subdivision two of section twenty-eight hundred fifty-one of this

41 article, as modified or supplemented during the approval process, (b)

42 any other terms or conditions required by applicable laws, rules and

43 regulations, and (c) any other terms or conditions, not inconsistent

44 with law, agreed upon by the applicant and the charter entity. In addi-

45 tion, the charter shall include the specific commitments of the charter

46 entity relating to its obligations to oversee and supervise the charter

47 school. Within five days after entering into a proposed charter, the

48 charter entity other than the board of regents shall submit to the board

49 of regents a copy of the charter, the application and supporting

50 documentation for final approval and issuance by the board of regents in

51 accordance with subdivisions five-a and five-b of this section.

52 5-a. Upon receipt of a proposed charter submitted by a charter entity,

53 the board of regents shall review such proposed charter in accordance

54 with the standards set forth in subdivision two of this section. The

55 board of regents shall either (a) approve and issue the charter as

56 proposed by the charter entity or (b) return the proposed charter to the

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1 charter entity for reconsideration with the written comments and recom-

2 mendations of the board of regents. If the board of regents fails to act

3 on such proposed charter within sixty days of its submission to the

4 board of regents in accordance with the previous sentence, the proposed

5 charter shall be deemed to have been approved and issued by the board of

6 regents at the expiration of such period.

7 5-b. If the board of regents returns a proposed charter to the charter

8 entity pursuant to the provisions of subdivision five-a of this section,

9 such charter entity shall reconsider the proposed charter, taking into

10 consideration the comments and recommendation of the board of regents.

11 Thereafter, the charter entity shall resubmit the proposed charter to

12 the board of regents with modifications, provided that the applicant

13 consents in writing to such modifications, resubmit the proposed charter

14 to the board of regents without modifications, or abandon the proposed

15 charter. The board of regents shall review each such resubmitted

16 proposed charter in accordance with the provisions of subdivision five-a

17 of this section; provided, however, that it shall be the duty of the

18 board of regents to approve and issue a proposed charter resubmitted by

19 the charter entity described in paragraph (b) of subdivision three of

20 section twenty-eight hundred fifty-one of this article within thirty

21 days of the resubmission of such proposed charter or such proposed char-

22 ter shall be deemed approved and issued at the expiration of such peri-

23 od.

24 6. The denial of an application for a charter school by a charter

25 entity shall be in writing and shall state the reasons for the denial.

26 Notwithstanding any provision of law to the contrary, such denial is

27 final and shall not be reviewable in any court or by any administrative

28 body.

29 7. A revision of a charter shall be made only upon the approval of the

30 charter entity and the board of regents in accordance with the

31 provisions of subdivisions five-a and five-b of this section.

32 8. A charter entity shall not charge a fee or require reimbursement of

33 expenses for considering a charter application, for approving a charter

34 application or for providing oversight of a charter school.

35 9. The total number of charters issued pursuant to this article shall

36 not exceed one hundred. Fifty of such charters shall be issued on the

37 recommendation of the charter entity described in paragraph (b) of

38 subdivision three of section twenty-eight hundred fifty-one of this

39 article, and fifty of such charters shall be issued on the recommenda-

40 tion of the other charter entities set forth in subdivision three of

41 section twenty-eight hundred fifty-one of this article. The failure of

42 any body to issue the regulations authorized pursuant to this article

43 shall not effect the authority of a charter entity to propose a charter

44 to the board of regents or the board of regents' authority to grant such

45 charter. A conversion of an existing public school to a charter school

46 or the renewal or extension of a charter shall not be counted toward the

47 numerical limits established by this subdivision.

48 § 2853. Charter school organization; oversight; facilities. 1. Organ-

49 ization and legal status. (a) Upon the approval of a charter by the

50 board of regents, the board of regents shall incorporate the charter

51 school as an education corporation for a term not to exceed five years.

52 Such certificate of incorporation shall not modify or limit any terms of

53 the charter approved by the board of regents. Upon approval of an appli-

54 cation to renew a charter, the board of regents shall extend the certif-

55 icate of incorporation for a term not to exceed five years. Upon termi-

56 nation or nonrenewal of the charter of a charter school pursuant to

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1 section twenty-eight hundred fifty-five of this article, the certificate

2 of incorporation of the charter school shall be revoked by the board of

3 regents pursuant to section two hundred nineteen of this chapter,

4 provided that compliance with the notice and hearing requirements of

5 such section twenty-eight hundred fifty-five of this article shall be

6 deemed to satisfy the notice and hearing requirements of such section

7 two hundred nineteen. It shall be the duty of the trustees of the char-

8 ter school to obtain federal tax-exempt status no later than one year

9 following approval of a charter school by the board of regents. For

10 purposes of this article, "certificate of incorporation" shall mean the

11 provisional charter issued by the board of regents to form the charter

12 school as an educational corporation pursuant to sections two hundred

13 sixteen and two hundred seventeen of this chapter.

14 (b) An education corporation organized to operate a charter school

15 shall have all corporate powers necessary and desirable for carrying out

16 a charter school program in accordance with the provisions of this arti-

17 cle, other applicable laws and regulations and the terms of the charter,

18 including all of the powers of an education corporation formed to oper-

19 ate an elementary or secondary school and those powers granted under the

20 provisions of the not-for-profit corporation law that are made applica-

21 ble to charter schools by section two hundred sixteen-a of this chapter.

22 The powers of the trustees of the charter school shall include those

23 powers specified in section two hundred twenty-six of this chapter.

24 (b-1) An education corporation operating a charter school shall not be

25 authorized to operate more than one school or house any grade at more

26 than one site, provided that:

27 (A) a charter school may operate in more than one building at a single

28 site; and

29 (B) a charter school which provides instruction to its students at

30 different locations for a portion of their school day shall be deemed to

31 be operating at a single site.

32 (c) A charter school shall be deemed an independent and autonomous

33 public school, except as otherwise provided in this article. The charter

34 entity and the board of regents shall be deemed to be the public agents

35 authorized to supervise and oversee the charter school.

36 (d) The powers granted to a charter school under this article consti-

37 tute the performance of essential public purposes and governmental

38 purposes of this state. A charter school shall be exempt to the same

39 extent as other public schools from all taxation, fees, assessments or

40 special ad valorem levies on its earnings and its property, including

41 property leased by the charter school. Instruments of conveyance to or

42 from a charter school and any bonds or notes issued by a charter school,

43 together with the income therefrom, shall at all times be exempt from

44 taxation.

45 (e) A charter school shall not have the power to levy taxes or to

46 acquire property by eminent domain.

47 (f) The board of trustees of the charter school shall have final

48 authority for policy and operational decisions of the school. Nothing

49 herein shall prohibit the board of trustees of a charter school from

50 delegating decision-making authority to officers and employees of the

51 school in accordance with the provisions of the charter.

52 (g) Notwithstanding any provision of law to the contrary, no civil

53 liability shall attach to any charter entity, the board of regents, or

54 to any of their members or employees, individually or collectively, for

55 any acts or omissions of the charter school. Neither the local school

56 district, the charter entity nor the state shall be liable for the debts

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1 or financial obligations of a charter school or any person or corporate

2 entity who operates a charter school.

3 2. The board of regents and charter entity shall oversee each school

4 approved by such entity, and may visit, examine into and inspect any

5 charter school, including the records of such school, under its over-

6 sight. Oversight by a charter entity and the board of regents shall be

7 sufficient to ensure that the charter school is in compliance with all

8 applicable laws, regulations and charter provisions.

9 2-a. For schools approved by an entity described in paragraph (b) or

10 (c) of subdivision three of section twenty-eight hundred fifty-one of

11 this article, the school district in which the charter school is located

12 shall have the right to visit, examine into, and inspect the charter

13 school for the purpose of ensuring that the school is in compliance with

14 all applicable laws, regulations and charter provisions. Any evidence of

15 non-compliance may be forwarded by such school district to the board of

16 regents and the charter entity for action pursuant to section twenty-

17 eight hundred fifty-five of this article.

18 3. Facilities. (a) A charter school may be located in part of an

19 existing public school building, in space provided on a private work

20 site, in a public building or in any other suitable location. A charter

21 school may own, lease or rent its space. For purposes of local zoning,

22 land use regulation and building code compliance, a charter school shall

23 be deemed a nonpublic school.

24 (b) A charter school may pledge, assign or encumber its assets to be

25 used as collateral for loans or extensions of credit; provided, however,

26 that a charter school shall not pledge or assign monies provided, or to

27 be provided, pursuant to subdivision one of section twenty-eight hundred

28 fifty-six of this article in connection with the purchase or

29 construction, acquisition, reconstruction, rehabilitation or improvement

30 of a school facility.

31 (c) The office of general services shall annually publish a list of

32 vacant and unused buildings and vacant and unused portions of buildings

33 that are owned by the state and that may be suitable for the operation

34 of a charter school. Such list shall be provided to applicants for

35 charter schools and to existing charter schools. At the request of a

36 charter school or a prospective applicant, a school district shall make

37 available a list of vacant and unused school buildings and vacant and

38 unused portions of school buildings, including private school buildings,

39 within the school district that may be suitable for the operation of a

40 charter school.

41 4. Public and private assistance to charter schools. (a) For

42 purposes of sections seven hundred one, seven hundred eleven, seven

43 hundred fifty-one and nine hundred twelve of this chapter, a charter

44 school shall be deemed a nonpublic school in the school district within

45 which the charter school is located. Special education programs and

46 services shall be provided to students with a disability attending a

47 charter school in accordance with the individualized education program

48 recommended by the committee or subcommittee on special education of the

49 student's school district of residence. The charter school may arrange

50 to have such services provided by such school district of residence or

51 by the charter school directly or by contract with another provider.

52 (b) For purposes of section thirty-six hundred thirty-five of this

53 chapter, a charter school shall be deemed a nonpublic school. The char-

54 ter and application therefor shall set forth the manner in which

55 students ineligible for transportation pursuant to section thirty-six

56 hundred thirty-five of this chapter shall be transported to and from

Page 9

1 school. Any supplemental transportation provided by a charter school

2 shall comply with all transportation safety laws and regulations appli-

3 cable to other public schools. A school district may enter into a

4 contract for the provision of supplemental transportation services to a

5 charter school, and any such services shall be provided by the school

6 district at cost.

7 (c) A charter school may contract with a school district or the

8 governing body of a public college or university for the use of a school

9 building and grounds, the operation and maintenance thereof. Any such

10 contract shall provide such services or facilities at cost.

11 (d) Private persons and organizations are encouraged to provide fund-

12 ing and other assistance to the establishment or operation of charter

13 schools.

14 (e) The school district of residence of children attending a charter

15 school may, but is not required to, allow such children to participate

16 in athletic and extra-curricular activities of the district's schools.

17 § 2854. General requirements. 1. Applicability of other laws. (a)

18 Notwithstanding any provision of law to the contrary, to the extent that

19 any provision of this article is inconsistent with any other state or

20 local law, rule or regulation, the provisions of this article shall

21 govern and be controlling.

22 (b) A charter school shall meet the same health and safety, civil

23 rights, and student assessment requirements applicable to other public

24 schools, except as otherwise specifically provided in this article. A

25 charter school shall be exempt from all other state and local laws,

26 rules, regulations or policies governing public or private schools,

27 boards of education and school districts, including those relating to

28 school personnel and students, except as specifically provided in the

29 school's charter or in this article. Nothing in this subdivision shall

30 affect the requirements of compulsory education of minors established by

31 part one of article sixty-five of this chapter.

32 (c) A charter school shall be subject to the financial audits, the

33 audit procedures, and the audit requirements set forth in the charter.

34 Such procedures and standards shall be consistent with generally

35 accepted accounting and audit standards. Independent fiscal audits

36 shall be required at least once annually.

37 (d) A charter school shall design its educational programs to meet or

38 exceed the student performance standards adopted by the board of regents

39 and the student performance standards contained in the charter. Students

40 attending charter school shall be required to take regents examinations

41 to the same extent such examinations are required of other public school

42 students. A charter school offering instruction in the high school

43 grades may grant regents diplomas and local diplomas to the same extent

44 as other public schools, and such other certificates and honors as are

45 specifically authorized by their charter, and in testimony thereof give

46 suitable certificates, honors and diplomas under its seal; and every

47 certificate and diploma so granted shall entitle the conferee to all

48 privileges and immunities which by usage or statute are allowed for

49 similar diplomas of corresponding grade granted by any other public

50 school.

51 (e) A charter school shall be subject to the provisions of articles

52 six and seven of the public officers law.

53 2. Admissions; enrollment; students. (a) A charter school shall be

54 nonsectarian in its programs, admission policies, employment practices,

55 and all other operations and shall not charge tuition or fees; provided

56 that a charter school may require the payment of fees on the same basis

Page 10

1 and to the same extent as other public schools. A charter school shall

2 not discriminate against any student, employee or any other person on

3 the basis of ethnicity, national origin, gender, or disability or any

4 other ground that would be unlawful if done by a school. Admission of

5 students shall not be limited on the basis of intellectual ability,

6 measures of achievement or aptitude, athletic ability, disability, race,

7 creed, gender, national origin, religion, or ancestry; provided, howev-

8 er, that nothing in this article shall be construed to prevent the

9 establishment of a single-sex charter school or a charter school

10 designed to provide expanded learning opportunities for students at-risk

11 of academic failure. A charter shall not be issued to any school that

12 would be wholly or in part under the control or direction of any reli-

13 gious denomination, or in which any denominational tenet or doctrine

14 would be taught.

15 (b) Any child who is qualified under the laws of this state for admis-

16 sion to a public school is qualified for admission to a charter school.

17 The school shall enroll each eligible student who submits a timely

18 application, unless the number of applications exceeds the capacity of

19 the grade level or building. In such cases, students shall be accepted

20 from among applicants by a random selection process, provided, however,

21 that an enrollment preference shall be provided to pupils returning to

22 the charter school in the second or any subsequent year of operation and

23 pupils residing in the school district in which the charter school is

24 located, and siblings of pupils already enrolled in the charter school.

25 (c) A charter school shall serve one or more of the grades one through

26 twelve, and shall limit admission to pupils within the grade levels

27 served. Nothing herein shall prohibit a charter school from establish-

28 ing a kindergarten program.

29 (d) A student may withdraw from a charter school at any time and

30 enroll in a public school. A charter school may refuse admission to any

31 student who has been expelled or suspended from a public school until

32 the period of suspension or expulsion from the public school has

33 expired, consistent with the requirements of due process.

34 3. School personnel. (a) An employee of a charter school shall be an

35 employee of the education corporation formed to operate the charter

36 school and not an employee of the local school district in which the

37 charter school is located. An employee of a charter school shall be

38 deemed to be a public employee solely for purposes of article fourteen

39 of the civil service law, except for section two hundred twelve of such

40 law, and for no other purposes unless otherwise specified in this arti-

41 cle, the board of trustees of the charter school shall constitute a

42 board of education solely for purposes of article fourteen of the civil

43 service law, except for section two hundred twelve of such law, and for

44 no other purposes unless otherwise specified in this article, a charter

45 school shall be deemed to be a public employer solely for purposes of

46 article fourteen of the civil service law, except for section two

47 hundred twelve of such law, and for no other purposes unless otherwise

48 specified in this article, and the chief executive officer of the char-

49 ter school shall be the person designated as such by the board of trus-

50 tees of the charter school.

51 (a-1) The board of trustees of a charter school shall employ and

52 contract with necessary teachers, administrators and other school

53 personnel. Such teachers shall be certified in accordance with the

54 requirements applicable to other public schools; provided, however, that

55 a charter school may employ as teachers (i) uncertified teachers with at

56 least three years of elementary, middle or secondary classroom teaching

Page 11

1 experience; (ii) tenured or tenure track college faculty; (iii) individ-

2 uals with two years of satisfactory experience through the Teach for

3 America program; and (iv) individuals who possess exceptional business,

4 professional, artistic, athletic, or military experience, provided,

5 however, that such teachers described in clauses (i), (ii), (iii), and

6 (iv) of this paragraph shall not in total comprise more than thirty per

7 centum of the teaching staff of a charter school, or five teachers,

8 whichever is less. A teacher certified or otherwise approved by the

9 commissioner shall not be included in the numerical limits established

10 by the preceding sentence.

11 (b) The school employees of a charter school that has been converted

12 from an existing public school who are eligible for representation under

13 article fourteen of the civil service law shall be deemed to be included

14 within the negotiating unit containing like titles or positions, if any,

15 for the school district in which such charter school is located and

16 shall be subject to the collective bargaining agreement covering that

17 school district negotiating unit; provided, however, that a majority of

18 the members of a negotiating unit within a charter school may modify, in

19 writing, a collective bargaining agreement for the purposes of employ-

20 ment in the charter school with the approval of the board of trustees of

21 the charter school.

22 (b-1) The employees of a charter school that is not a conversion from

23 an existing public school shall not be deemed members of any existing

24 collective bargaining unit representing employees of the school district

25 in which the charter school is located, and the charter school and its

26 employees shall not be subject to any existing collective bargaining

27 agreement between the school district and its employees. Provided,

28 however, that (i) if the student enrollment of the charter school on the

29 first day on which the charter school commences student instruction

30 exceeds two hundred fifty or if the average daily student enrollment of

31 such school exceeds two hundred fifty students at any point during the

32 first year after the charter school commences student instruction, all

33 instructional employees of the school who are eligible for represen-

34 tation under article fourteen of the civil service law shall be deemed

35 to be represented in a separate negotiating unit at the charter school

36 by the same employee organization, if any, that represents like employ-

37 ees in the school district in which such charter school is located; (ii)

38 the provisions of subparagraph (i) of this paragraph may be waived in up

39 to ten charters issued on the recommendation of the charter entity set

40 forth in paragraph (b) of subdivision three of section twenty-eight

41 hundred fifty-one of this article; (iii) the provisions of subparagraph

42 (i) of this paragraph shall not be applicable to the renewal or exten-

43 sion of a charter; and (iv) nothing in this sentence shall be construed

44 to subject a charter school subject to the provisions of this paragraph

45 or its employees to any collective bargaining agreement between any

46 public school district and its employees or to make the employees of

47 such charter school part of any negotiating unit at such school

48 district. The charter school may, in its sole discretion, choose wheth-

49 er or not to offer the terms of any existing collective bargaining to

50 school employees.

51 (c) The employees of the charter school may be deemed employees of the

52 local school district for the purpose of providing retirement benefits,

53 including membership in the teachers' retirement system and other

54 retirement systems open to employees of public schools. The financial

55 contributions for such benefits shall be the responsibility of the char-

56 ter school and the school's employees. The commissioner, in consultation

Page 12

1 with the comptroller, shall develop regulations to implement the

2 provisions of this paragraph in a manner that allows charter schools to

3 provide retirement benefits to its employees in the same manner as other

4 public school employees.

5 (c-1) Reasonable access. (i) If employees of the charter school are

6 not represented, any charter school chartered pursuant to this article

7 must afford reasonable access to any employee organization during the

8 reasonable proximate period before any representation question is

9 raised; or

10 (ii) If the employee organization is a challenging organization,

11 reasonable access must be provided to any organization seeking to repre-

12 sent employees beginning with a date reasonably proximate to a challenge

13 period. Reasonableness is defined, at a minimum, as access equal to that

14 provided to the incumbent organization.

15 (c-2) Employer neutrality. It shall be an improper practice for a

16 charter school board of directors, chief administrative officer and

17 their agents to commit any of the acts set forth in subdivision one of

18 section two hundred nine-a of the civil service law and could in accord-

19 ance with section twenty-eight hundred fifty-five of this article,

20 result in the revocation of the charter.

21 (d) A teacher employed by a school district may make a written request

22 to the board of education for an extended leave of absence to teach at a

23 charter school. Approval for such a leave of absence for a period of two

24 years or less shall not be unreasonably withheld. If such approval is

25 granted to a teacher by the school district, the teacher may return to

26 teach in the school district during such period of leave without the

27 loss of any right of certification, retirement, seniority, salary status

28 or any other benefit provided by law or by collective bargaining agree-

29 ment. If an appropriate position is unavailable, the teacher's name

30 shall be placed on a preferred eligible list of candidates for appoint-

31 ment to a vacancy that may thereafter occur in an office or position

32 similar to the one such teacher filled in such school district imme-

33 diately prior to the leave of service.

34 § 2855. Causes for revocation or termination. 1. The charter entity,

35 or the board of regents, may terminate a charter upon any of the follow-

36 ing grounds:

37 (a) When a charter school's outcome on student assessment measures

38 adopted by the board of regents falls below the level that would allow

39 the commissioner to revoke the registration of another public school,

40 and student achievement on such measures has not shown improvement over

41 the preceding three school years:

42 (b) Serious violations of law;

43 (c) Material and substantial violation of the charter, including

44 fiscal mismanagement; or

45 (d) When the public employment relations board makes a determination

46 that the charter school demonstrates a practice and pattern of egregious

47 and intentional violations of subdivision one of section two hundred

48 nine-a of the civil service law involving interference with or discrimi-

49 nation against employee rights under article fourteen of the civil

50 service law.

51 2. Notice of intent to revoke a charter shall be provided to the

52 board of trustees of a charter school at least thirty days prior to the

53 effective date of the proposed revocation. Such notice shall include a

54 statement of reasons for the proposed revocation. The charter school

55 shall be allowed at least thirty days to correct the problems associated

56 with the proposed revocation. Prior to revocation of the charter, a

Page 13

1 charter school shall be provided an opportunity to be heard, consistent

2 with the requirements of due process. Upon the termination of a charter,

3 the charter school shall proceed with dissolution pursuant to the proce-

4 dures of the charter and direction of the charter entity and the board

5 of regents.

6 3. In addition to the provisions of subdivision two of this section,

7 the charter entity or the board of regents may place a charter school

8 falling within the provisions of subdivision one of this section on

9 probationary status to allow the implementation of a remedial action

10 plan. The failure of a charter school to comply with the terms and

11 conditions of a remedial action plan may result in summary revocation of

12 the school's charter.

13 4. Any individual or group may bring a complaint to the board of

14 trustees of a charter school alleging a violation of the provisions of

15 this article, the charter, or any other provision of law relating to the

16 management or operation of the charter school. If, after presentation

17 of the complaint to the board of trustees of a charter school, the indi-

18 vidual or group determines that such board has not adequately addressed

19 the complaint, they may present that complaint to the charter entity,

20 which shall investigate and respond. If, after presentation of the

21 complaint to the charter entity, the individual or group determines that

22 the charter entity has not adequately addressed the complaint, they may

23 present that complaint to the board of regents, which shall investigate

24 and respond. The charter entity and the board of regents shall have the

25 power and the duty to issue appropriate remedial orders to charter

26 schools under their jurisdiction to effectuate the provisions of this

27 section.

28 5. The regulatory power of the board of regents and the commissioner

29 shall not extend to charter schools except as otherwise specifically

30 provided in this article.

31 § 2856. Financing of charter schools. 1. The enrollment of students

32 attending charter schools shall be included in the enrollment, attend-

33 ance and, if applicable, count of students with disabilities of the

34 school district in which the pupil resides. The charter school shall

35 report all such data to the school districts of residence in a timely

36 manner. Each school district shall report such enrollment, attendance

37 and count of students with disabilities to the department. The school

38 district of residence shall pay directly to the charter school for each

39 student enrolled in the charter school who resides in the school

40 district an amount equal to one hundred percent of the amount calculated

41 pursuant to paragraph f of subdivision one of section thirty six hundred

42 two of this chapter for the school district for the year prior to the

43 base year increased by the percentage change in the state total approved

44 operating expense calculated pursuant to subdivision eleven of section

45 thirty six hundred two of this chapter from two years prior to the base

46 year to the base year. The school district shall also pay directly to

47 the charter school any federal or state aid attributable to a student

48 with a disability attending charter school in proportion to the level of

49 services for such student with a disability that the charter school

50 provides directly or indirectly. Notwithstanding anything in this

51 section to the contrary, amounts payable pursuant to this subdivision

52 may be reduced pursuant to an agreement between the school and the char-

53 ter entity set forth in the charter. Payments made pursuant to this

54 subdivision shall be made by the school district in six substantially

55 equal installments each year beginning on the first business day of July

56 and every two months thereafter. Amounts payable under this subdivision

Page 14

1 shall be determined by the commissioner. Amounts payable to a charter

2 school in its first year of operation shall be based on the projections

3 of initial-year enrollment set forth in the charter. Such projections

4 shall be reconciled with the actual enrollment at the end of the

5 school's first year of operation, and any necessary adjustments shall be

6 made to payments during the school's second year of operation.

7 2. In the event of the failure of the school district to make

8 payments required by this section, the state comptroller shall deduct

9 from any state funds which become due to such school district an amount

10 equal to the unpaid obligation. The comptroller shall pay over such sum

11 to the charter school upon certification of the commissioner. The

12 commissioner shall promulgate regulations to implement the provisions of

13 this subdivision.

14 3. Nothing in this article shall be construed to prohibit any person

15 or organization from providing funding or other assistance to the estab-

16 lishment or operation of a charter school. The board of trustees of a

17 charter school is authorized to accept gifts, donations or grants of any

18 kind made to the charter school and to expend or use such gifts,

19 donations or grants in accordance with the conditions prescribed by the

20 donor; provided, however, that no gift, donation or grant may be

21 accepted if subject to a condition that is contrary to any provision of

22 law or term of the charter.

23 § 2857. Notice; review and assessment. 1. The board of regents shall

24 distribute information announcing the availability of the charter school

25 process described in this article to each local school district and

26 public postsecondary educational institution. At each significant stage

27 of the chartering process, the charter entity and the board of regents

28 shall provide appropriate notification to the school district in which

29 the charter school is located and to public and nonpublic schools in the

30 same geographic area as the proposed charter school. Prior to the issu-

31 ance or renewal of a charter, the school district in which the charter

32 school is located shall be given an opportunity to comment on the

33 proposed charter to the charter entity. In addition, such school

34 district may hold a public hearing to solicit comments from the communi-

35 ty in connection with the foregoing.

36 2. Each charter school shall submit to the charter entity and to the

37 board of regents an annual report. Such report shall be issued no later

38 than the first day of August of each year for the preceding school year.

39 The annual report shall be in such form as shall be prescribed by the

40 commissioner and shall include at least the following components:

41 (a) a charter school report card, which shall include measures of the

42 comparative academic and fiscal performance of the school, as prescribed

43 by the commissioner in regulations adopted for such purpose. Such meas-

44 ures shall include, but not be limited to, graduation rates, dropout

45 rates, performance of students on standardized tests, college entry

46 rates, total spending per pupil and administrative spending per pupil.

47 (b) discussion of the progress made towards achievement of the goals

48 set forth in the charter.

49 (c) a certified financial statement setting forth, by appropriate

50 categories, the revenues and expenditures for the preceding school year,

51 including a copy of the most recent independent fiscal audit of the

52 school.

53 3. The board of regents shall report annually to the governor, the

54 temporary president of the senate, and the speaker of the assembly the

55 following information:

Page 15

1 (a) The number, distribution, and a brief description of new charter

2 schools established during the preceding year;

3 (b) The current and projected programmatic and fiscal impact of char-

4 ter schools on the delivery of services by the public school system;

5 (c) The academic progress of students attending charter schools, as

6 measured against comparable public and nonpublic schools wherever prac-

7 ticable; and

8 (d) Any other information regarding charter schools that the board of

9 regents deems necessary.

10 4. The board of regents shall review the educational effectiveness of

11 the charter school approach authorized by this article and the effect of

12 charter schools on the public and nonpublic school systems. Not later

13 than December thirty-first, two thousand three, the board of regents

14 shall report to the governor, the temporary president of the senate, the

15 speaker of the assembly and the board of regents with recommendations to

16 modify, expand, or terminate that approach. Such report shall include,

17 for each charter school, a copy of the school's mission statement,

18 attendance statistics and dropout rates, student performance on stand-

19 ardized assessment tests, projections of financial stability, and, wher-

20 ever practicable, comparisons to other public schools.

21 § 2. The state finance law is amended by adding a new section 97-sss

22 to read as follows:

23 § 97-sss. Charter schools stimulus fund. There is hereby established

24 in the joint custody of the comptroller and the commissioner of taxation

25 and finance a fund to be known as the charter schools stimulus fund.

26 Such fund shall consist of all monies made available pursuant to appro-

27 priation for this purpose, all monies transferred to such fund pursuant

28 to law, and grants, gifts and devises and donations from any public or

29 private source. The purpose of such fund is to provide discretionary

30 financial support, including grants and loans to charter school appli-

31 cants and to charter schools for start-up costs and for costs associated

32 with the acquisition, renovation, or construction of school facilities.

33 § 3. The provisions of this act shall be severable, and if the appli-

34 cation of any clause, sentence, paragraph, subdivision, section or part

35 of this act to any person or circumstance shall be adjudged by a court

36 of competent jurisdiction to be invalid, such judgment shall not neces-

37 sarily affect, impair or invalidate the application of such clause,

38 sentence, paragraph, subdivision, section or part of this act or remain-

39 der thereof, as the case may be, to any other person or circumstance,

40 but shall be confined in its operation to the clause, sentence, para-

41 graph, subdivision, section or part thereof directly involved in the

42 controversy in which such judgment shall be rendered.

43 § 4. This act shall take effect immediately.

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