Establishes various requirements for charter schools, charter school board of trustees members, and charter management organizations.

A2323

ASSEMBLY, No. 2323

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman LUANNE M. PETERPAUL

District 11 (Monmouth)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblyman Verrelli

SYNOPSIS

���� Establishes various requirements for charter schools,
charter school board of trustees members, and charter management organizations.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning charter schools, amending various parts of
the statutory law, and supplementing P.L.1995, c.426 (C.18A:36A-1 et seq.) and
chapter 12 of Title 18A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� As used
in P.L.��� , c.���� (C.������� ) (pending before the Legislature as this bill):

���� �Charter management
organization� means a nonprofit organization that is exempt from federal
taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, 26
U.S.C. s.501(c)(3), which operates or manages one or more charter schools
linked by centralized support and operations.

���� �Compensation study� means a
review by a board of trustees of a charter school, or a third-party
organization contracted by the board of trustees to conduct the review, of the proposed
total remuneration for the top three salaried employees of the charter school compared
to compensation for similar positions in school districts in the State and any
other information the Commissioner of Education deems necessary.�

���� 2.��� Section 4 of P.L.1995,
c.426 (C.18A:36A-4) is amended to read as follows:

���� 4. a. A charter school may be
established by teaching staff members, parents with children attending the
schools of the district, or a combination of teaching staff members and
parents.� A charter school may also be established by an institution of higher
education or a private entity located within the State in conjunction with
teaching staff members and parents of children attending the schools of the
district.� If the charter school is established by a private entity,
representatives of the private entity shall not constitute a majority of the
trustees of the school, and the charter shall specify the extent to which the
private entity shall be involved in the operation of the school.� The name of
the charter school shall not include the name or identification of the private
entity, and the private entity shall not realize a net profit from its
operation of a charter school.

���� b.��� A currently existing
public school is eligible to become a charter school if the following criteria
are met:

���� (1)�� At least
[
51%
]

51 percent

of the teaching staff in the school shall have signed a petition in support of
the school becoming a charter school; and

���� (2)�� At least
[
51%
]

51 percent

of the parents or guardians of pupils attending that public school shall have
signed a petition in support of the school becoming a charter school.

���� c.���� An application to
establish a charter school shall be submitted to the commissioner and the local
board of education or State district superintendent, in the case of a school
district under full State intervention, in the school year preceding the school
year in which the charter school will be established. �Notice of the filing of
the application shall be sent immediately by the commissioner to
:
the
members of the State Legislature
[
,
]
;

school superintendents
[
,
]
;
and
mayors and governing bodies of all legislative districts, school districts, or
municipalities in which there are students who will be eligible for enrollment
in the charter school.�
The commissioner shall post the notice of the filing,
along with instructions and a link for the public to submit comments concerning
the application, on the department�s Internet website where the notice shall
remain until the commissioner makes a final decision on the application. Any
other agency or governing body that receives notice of the filing pursuant to
this subsection may post the notice on the agency�s or governing body�s
Internet website.

����
The commissioner shall
cause notice of the filing to be published in the county or counties where the
charter school is to be located on three occasions.� The notices shall be
published in accordance with R.S.35:1-2.2 or any other requirements for issuing
or publishing a public notice.

����
Each notice provided to the
public, a school district, and a municipality pursuant to this section shall
include instructions for the public to submit comments on the application to
the commissioner within 30 days of the date of the first notice.

���� The board of education or
State district superintendent shall review the application and forward a
recommendation to the commissioner within 60 days of receipt of the
application.� The commissioner shall have final authority to grant or reject a
charter application.

���� d.��� The local board of
education or a charter school applicant may appeal the decision of the
commissioner to the Appellate Division of the Superior Court.

���� e.���� A charter school
established during the 48 months following the effective date of
[
this act
]

P.L.1995,
c.426 (C.18A:36A-1 et seq.)
, other than a currently existing public school
which becomes a charter school pursuant to the provisions of subsection b. of
[
section 4 of
this act
]

this section
, shall not have an enrollment in excess of 500 students or
greater than
[
25%
]

25 percent

of the student body of the school district in which the charter school is
established, whichever is less.

���� Any two charter schools within
the same public school district
[
that
are not operating the same grade levels
]

or within contiguous public school districts that demonstrate a need to
consolidate
may petition the commissioner to amend their charters and
consolidate into one school
[
.�
The commissioner may approve an amendment to consolidate, provided that the
basis for consolidation is to accommodate the transfer of students who would
otherwise be subject to the random selection process pursuant to section 8 of
P.L.1995, c.426 (C.18A:36A-8)
]

pursuant to a process that shall be determined by the commissioner
.

(cf: P.L.2011, c.140, s.2)

���� 3.��� Section 5 of P.L.1995,
c.426 (C.18A:36A-5) is amended to read as follows:

���� 5.���
The commissioner
shall develop an application for the establishment of a charter school.
� The
application
[
for
a charter school
]

shall include the following information:

���� a.���� The identification of
the charter applicant;

���� b.��� The name of the proposed
charter school;

���� c.���� The proposed governance
structure of the charter school including a list of the proposed members of the
board of trustees of the charter school or a description of the qualifications
and method for the appointment or election of members of the board of trustees;

���� d.��� The educational goals of
the charter school, the curriculum to be offered, and the methods of assessing
whether students are meeting educational goals. Charter school students shall
be required to meet the same testing and academic performance standards as
established by law and regulation for public school students.� Charter school
students shall also meet any additional assessment indicators which are
included within the charter approved by the commissioner;

���� e.���� The admission policy
and criteria for evaluating the admission of students which shall comply with
the requirements of section 8 of
[
this
act
]

P.L.1995,
c.426 (C.18A:36A-8)
;

���� f.���� The age or grade range
of students to be enrolled;

���� g.��� The school calendar and
school day schedule;

���� h.��� A description of the
charter school staff responsibilities and the proposed qualifications of
teaching staff;

���� i.���� A description of the
procedures to be implemented to ensure significant parental involvement in the
operation of the school;

���� j.���� A description of, and
address for, the physical facility in
this State in
which the charter
school will be located;

���� k.��� Information on the
manner in which community groups will be involved in the charter school
planning process;

���� l.���� The financial plan for
the charter school
, including the anticipated administrative costs of the
charter school,
and the provisions which will be made for auditing the
school pursuant to the provisions of N.J.S.18A:23-1
.� As used in this
subsection, �administrative costs� means administrative costs as defined by
State Board of Education regulations adopted under chapter 23A of Title 6A of
the New Jersey Administrative Code
;

���� m.�� A description of and
justification for any waivers of regulations which the charter school will
request;
[
and
]

���� n.���
[
Such
]

Any

other information as the commissioner may require
; and

����
o.��� A demonstration of
need and an explanation of how the need is not currently being met by existing
public schools.� Unaudited waitlist data shall not qualify as a demonstration
of need
.

(cf: P.L.1995, c.426, s.5)

���� 4.��� Section 10 of P.L.1995,
c.426 (C.18A:36A-10) is amended to read as follows:

���� 10.�
a.
� A charter
school
[
may
]

shall

be
physically
located
, and provide all instruction,
in part of an
existing public school building, in space provided on a public work site, in a
public building, or any other suitable location
in the school district in the
State in which the charter school has been authorized to operate
.� In the
case of a nonpublic school that converts to a charter school pursuant to the
provisions of section 1 of P.L.2011, c.140 (C.18A:36A-4.1), the charter school
may be located in the same school building in which the nonpublic school was
located
in the State
.� The facility shall be exempt from public school
facility regulations except those pertaining to the health or safety of the
pupils.� A charter school shall not construct a facility with public funds
other than federal funds.

����
b.��� The Commissioner of
Education shall deny a charter school application that proposes to operate a
charter school, or provide instruction, in a physical location outside of the
State.

����
c.���� The commissioner
shall deny a charter school application submitted after the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill) that
proposes to operate or provide instruction primarily online.

����
d.��� This section shall
not be construed to limit the ability or discretion of a teaching staff member
to utilize technological tools as an aide to in-person instruction.
Technological tools shall include, but not be limited to: online learning
applications; educational software; third party websites; Internet-based
educational resources; online data and assessment platforms; and any other
software program or application used to assist with curricular or education
specific needs.

����
e.���� This section shall
not be construed to limit the ability of a charter school to utilize virtual or
remote instruction as permitted pursuant to Title 18A of the New Jersey
Statutes or State Board of Education regulations.

����
f.���� The Department of
Education, in consultation with school districts throughout the State, shall
maintain and publish on its Internet website a searchable list of all public
school facilities that have been closed, are unused, unoccupied, or advertised
for sale or for lease.

(cf: P.L.2011, c.140, s.3)

���� 5.��� Section 14 of P.L.1995,
c.426 (C.18A:36A-14) is amended to read as follows:

���� 14.� a.� The board of trustees
of a charter school shall have the authority to decide matters related to the
operations of the school including budgeting, curriculum, and operating
procedures, subject to the school's charter.�
The board shall not contract
with a for-profit entity to operate or manage the charter school.� The board
may contract with a charter management organization for these services.
�

���� The board shall provide for
appropriate insurance against any loss or damage to its property or any
liability resulting from the use of its property or from the acts or omissions
of its officers and employees.

���� b. �� In the case of a
currently existing public school which becomes a charter school pursuant to the
provisions of subsection b. of section 4 of
[
this
act
]

P.L.1995,
c.426 (C.18A:36A-4)
, all school employees of the charter school shall be
deemed to be members of the bargaining unit defined in the applicable agreement
and shall be represented by the same majority representative organization as
the employees covered by that agreement.� In the case of other charter schools,
the board of trustees of a charter school shall have the authority to employ,
discharge
,
and contract with necessary teachers and nonlicensed
employees subject to the school's charter.� The board of trustees may choose
whether or not to offer the terms of any collective bargaining agreement
already established by the school district for its employees, but the board
shall adopt any health and safety provisions of the agreement.� The charter
school and its employees shall be subject to the provisions of the "New
Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et
seq.)
and the "Conscientious Employee Protection Act," P.L.1986,
c.105 (C.34:19-1 et seq.)
.� A charter school shall not set a teacher salary
lower than the minimum teacher salary specified pursuant to section 7 of
P.L.1985, c.321 (C.18A:29-5.6) nor higher than the highest step in the salary
guide in the collective bargaining agreement which is in effect in the district
in which the charter school is located.

���� c. �� All classroom teachers
and professional support staff shall hold appropriate New Jersey
certification.� The commissioner shall make appropriate adjustments in the
alternate route program in order to expedite the certification of persons who
are qualified by education and experience.

���� d. �� A public school
employee, tenured or non-tenured, may request a leave of absence of up to three
years from the local board of education or State district superintendent in
order to work in a charter school.� Approval for a leave of absence shall not
be unreasonably withheld.� Employees on a leave of absence as provided herein
shall remain in, and continue to make contributions to, their retirement plan
during the time of the leave and shall be enrolled in the health benefits plan
of the district in which the charter school is located.� The charter school
shall make any required employer's contribution to the district's health
benefits plan.

���� e. �� Public school employees
on a leave shall not accrue tenure in the public school system but shall retain
tenure, if so applicable, and shall continue to accrue seniority, if so
applicable, in the public school system if they return to their non-charter
school when the leave ends.� An employee of a charter school shall not accrue
tenure pursuant to N.J.S.18A:17-2, N.J.S.18A:17-3, or N.J.S.18A:28-5, but shall
acquire streamline tenure pursuant to guidelines promulgated by the
commissioner, and the charter shall specify the security and protection to be
afforded to the employee in accordance with the guidelines.

���� f. ��� Any public school
employee who leaves or is dismissed from employment at a charter school within
three years shall have the right to return to the employee's former position in
the public school district which granted the leave of absence, provided the employee
is otherwise eligible for employment in the public school.

(cf: P.L.1995, c.426, s.14)

���� 6.��� Section 16 of P.L.1995,
c.426 (C.18A:36A-16) is amended to read as follows:

���� 16.� a. The commissioner shall
annually assess whether each charter school is meeting the goals of its charter
[
, and
]
�
.� The
commissioner
shall
also
conduct a comprehensive review prior to
granting a renewal of the
school�s
charter.�
Notice of a charter
school�s renewal application shall be provided in accordance with the
provisions of subsection c. of section 4 of P.L.1995, c.426 (C.18A:36A-4).

���� The
executive
county
superintendent of schools of the county in which the charter school is located
shall have on-going access to the records and facilities of the charter school
to ensure that the charter school is in compliance with its charter and that
State board regulations concerning assessment, testing, civil rights, and
student health and safety are being met.

���� b.��� In order to facilitate
the commissioner's review, each charter school shall submit an annual report to
the local board of education, the
executive
county superintendent of
schools, and the commissioner in the form prescribed by the commissioner.� The
report shall be received annually by the local board, the
executive

county superintendent, and the commissioner no later than August 1.

���� The report shall also be made
available
on the charter school�s Internet website and
to the parent or
guardian of a student enrolled in the charter school
, and shall be presented
to the public at a regularly scheduled board of trustees meeting
.

���� c.���� By April 1, 2001, the
commissioner shall hold public hearings in the north, central, and southern
regions of the State to receive input from members of the educational community
and the public on the charter school program.

���� d.��� The commissioner shall
commission an independent study of the charter school program.� The study shall
be conducted by an individual or entity identified with expertise in the field
of education and the selection shall be approved by the Joint Committee on the
Public Schools.� The individual or entity shall design a comprehensive study of
the charter school program.

���� e.���� The commissioner shall
submit to the Governor, the Legislature, and the State Board of Education by
October 1, 2001 an evaluation of the charter school program based upon the
public input required pursuant to subsection c. of this section and the
independent study required pursuant to subsection d. of this section.� The
evaluation shall include, but not be limited to, consideration of the following
elements:

���� (1)�� the impact of the
charter school program on resident districts' students, staff, parents,
educational programs, and finances;

���� (2)�� the impact of the
charter school program and the increased number of schools on the economics of
educational services on a Statewide basis;

���� (3)�� the fairness and the
impact of the reduction of available resources on the ability of resident
districts to promote competitive educational offerings;

���� (4)�� the impact of the shift
of pupils from nonpublic schools to charter schools;

���� (5)�� the comparative
demographics of student enrollments in school districts of residence and the
charter schools located within those districts. The comparison shall include,
but not be limited to, race, gender, socioeconomic status, enrollment of
special education students, enrollment of students of limited English
proficiency, and student progress toward meeting the core curriculum content
standards as measured by student results on Statewide assessment tests;

���� (6)�� the degree of
involvement of private entities in the operation and financial support of
charter schools, and their participation as members of charter school boards of
trustees;

���� (7)�� verification of the
compliance of charter schools with applicable laws and regulations;

���� (8)�� student progress toward
meeting the goals of the charter schools;

���� (9)�� parent, community and
student satisfaction with charter schools;

���� (10) the extent to which
waiting lists exist for admission to charter schools and the length of those
lists;

���� (11)� the extent of any
attrition among student and faculty members in charter schools; and

���� (12)� the results of the
independent study required pursuant to subsection d. of this section.

���� The evaluation shall include a
recommendation on the advisability of the continuation, modification,
expansion, or termination of the program.� If the evaluation does not recommend
termination, then it shall include recommendations for changes in the structure
of the program which the commissioner deems advisable.� The commissioner may
not implement any recommended expansion, modification, or termination of the
program until the Legislature acts on that recommendation.

����
f.���� Every five years the
commissioner shall publicly report on the state of charter schools in New
Jersey based on measures contained in the Performance Framework developed by
the State Board of Education pursuant to regulations adopted under chapter 11
of Title 6A of the New Jersey Administrative Code to evaluate the academic,
financial, and organizational performance of charter schools.

(cf: P.L.2000, c.142, s.3)

���� 7.��� Section 17 of P.L.1995,
c.426 (C.18A:36A-17) is amended to read as follows:

���� 17.�
a.
� A charter
granted by the commissioner pursuant to the provisions of
[
this act
]

P.L.1995,
c.426 (C.18A:36A-1 et seq.)
shall be granted for a four-year period and may
be renewed for a five-year period.�
The commissioner may review the charter
of a school that has been granted a renewal at any time during the renewal
period.� The commissioner shall provide the charter school with reasonable
notice of the commissioner�s intent to review the school�s charter.

����
b.� The commissioner may
place a charter school on probationary status to allow the implementation of a
remedial plan if, on two occasions, the school:

����
(1)�� has not fulfilled any
condition imposed by the commissioner in connection with granting the charter;

����
(2)�� violates any
provision of its charter;

����
(3)�� violates any of the
financial operations requirements established for the charter schools by the
State board;

����
(4)�� fails to make
reasonable and appropriate efforts to serve a cross section of the community�s
school age population;

����
(5)�� engages in a practice
and pattern of discrimination in violation of federal or State law; or

����
(6)�� violates any federal
or State law.

����
Upon notification by the
commissioner that the charter school has been placed on probationary status,
the board of trustees shall provide to the commissioner, in writing, a complete
list of the names and addresses of all students and staff currently enrolled
and working in the school so the commissioner may send the appropriate notice
to the parents or guardians and staff pursuant to the provisions of section 4
of P.L.2000, c.142 (C.18A:36A-17.1).

����
c.
� The commissioner
[
may
]

shall

revoke a school's charter if the school
[
has
not fulfilled any condition imposed by the commissioner in connection with the
granting of the charter or if the school has violated any provision of its
charter.� The commissioner may place the charter school on probationary status
to allow the implementation of a remedial plan after which, if the plan is
unsuccessful, the charter may be summarily revoked
]

is determined by the
commissioner, after notice and opportunity for a hearing in accordance with
N.J.S.18A:6-9 and the procedures set forth in State Board of Education
regulations, to have committed or engaged in any of the criteria listed in
paragraphs (1) through (6) of subsection b. of this section while on
probationary status
.

����
d.
��� The commissioner
shall develop procedures and guidelines for the revocation and renewal of a
school's charter.

(cf: P.L.1995, c.426, s.17)

���� 8.��� (New section)� a.� Prior
to approving a charter school application and granting a charter, the
Commissioner of Education shall review:

���� (1)�� the application material
submitted by the proposed charter school pursuant to section 5 of P.L.1995,
c.426 (C.18A:36A-5);

���� (2)�� the proposed charter
school�s anticipated financial impact on the school district in which the
charter school is to be located, including the impact to the bond ratings of
the school district; and

���� (3)�� any other information
the commissioner deems necessary.

���� b.��� The commissioner shall
give equal consideration to the information reviewed pursuant to the provisions
of subsection a. of this section when determining whether to grant or deny an
application for a charter school established after the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� 9.��� (New section)� The
Commissioner of Education shall consider the most recent compensation study
submitted by the charter school and the charter school�s administrative costs
over the past three years when reviewing an application to renew a charter
school and as part of the annual review conducted by the commissioner pursuant
to section 16 of P.L.1995, c.426 (C.18A:36A-16).

���� 10.� (New section)� a.� The
Department of Education shall maintain, in a manner that is consistent with
applicable federal law, a webpage on its Internet website for charter school
transparency.� The purpose of the webpage shall be to provide increased public
access to the operations and activities of charter schools in the State.

���� b.��� The following
information shall be posted on the webpage:

���� (1)�� a current list of each
charter management organization that operates or manages a charter school;

���� (2)�� each executed contract
between a charter school and charter management organization;

���� (3)�� each charter school�s
plain language budget summary submitted pursuant to section 12 of P.L.��� ,
c.���� (C.������� ) (pending before the Legislature as this bill);

���� (4)�� each Form 990 received
by the department pursuant to section 21 of P.L.��� , c.���� (C.������� )
(pending before the Legislature as this bill);

���� (5)�� each annual report
submitted by a charter school pursuant to section 16 of P.L.1995, c.426
(C.18A:36A-16);

���� (6)�� each renewal application
submitted by a charter school;

����
(7)�� a list of charter
schools on probationary status and any remedial plan put in place to assist a
charter school on probationary status;

���� (8)�� each application by a
charter school to establish a charter school, amend a school�s charter, renew a
school�s charter, and consolidate two or more charter schools; and

���� (9)�� each public notice
concerning charter school applications issued pursuant to the provisions of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),
along with instructions and a link for the public to submit comments concerning
the application to the commissioner.

���� c.���� The webpage shall be
updated on a regular basis.

���� 11
.� (New
section)� a.� A charter school shall maintain an Internet website.� The purpose
of the website shall be to provide increased public access to the operations
and activities of the charter school.

���� b.��� The following
information shall be posted on the homepage of the charter school�s website:

���� (1)�� the budget adopted by
the charter school for the school year pursuant to section 12 of P.L.��� ,
c.���� (C.������� ) (pending before the Legislature as this bill);

���� (2)�� all meeting notices
required pursuant to the provisions of the �Senator Byron M. Baer Open Public
Meetings Act,� P.L.1975, c.231 (C.10:4-6 et seq.) in accordance with section 16
of P.L.��� , c.���� (C.������� ) (pending before the Legislature as this bill);

���� (3)�� each annual report
submitted by a charter school pursuant to section 16 of P.L.1995, c.426
(C.18A:36A-16);

���� (4)�� a list of the members of
the board of trustees;

���� (5)�� a list, and location, of
the facilities operated by the charter school; and

���� (6)�� any other information
required by State or federal law.

���� c.���� The website shall be
updated on a regular basis.

���� 12.� (New section)� a.� The
budget adopted by a charter school for the school year shall be provided for
public inspection on the homepage of the charter school�s Internet website and
made available in print in a �user-friendly� format using plain language.� The
Commissioner of Education shall promulgate a �user-friendly,� plain language
budget summary form for the use of charter schools for this purpose.� The
commissioner shall also promulgate a procedure and timeline for the submission
by each charter school of the required budget summary form to the Department of
Education.

���� b.��� The plain language
budget summary shall provide the public with information in summary form about
the budget of the charter school and shall include, in addition to an
abbreviated version of the formal budget adopted by the charter school, any
statistical information as the commissioner determines to be useful for the
public�s understanding of the charter school�s fiscal matters and condition,
and shall also include, but not be limited to, the following information for
both the budget year and prebudget year:

���� (1)�� all line items of
appropriation aggregated by item type;

���� (2)�� revenues by major
category, including private donation;

���� (3)�� the amount of available
surplus;

���� (4)�� a description of unusual
revenues or appropriations, with a description of the circumstances of the
revenues or appropriations;

���� (5)�� a list of shared service
agreements in which the charter school is participating;

���� (6)�� the salary of the lead
person and the school business administrator employed by the charter school;
and

���� (7)�� if either the lead
person or school business administrator is a contracted service provider, each
executed contract between the lead person or school business administrator and
charter school.

���� c.���� The plain language
budget summary shall be submitted to the department in a form as determined by
the commissioner, and, upon its receipt of the summary, the department shall
make the summary available to the public through an Internet website maintained
by the department in an easily accessible location.� The information on the
website shall be presented as data that can be downloaded by the public for
comparative purposes using commonly-used software.

���� d.��� Upon the preparation of
its budget, each board of trustees shall fix a date, place, and time for the
holding of a public hearing upon the budget and the amounts of money necessary
for the use of the charter school for the ensuing school year and the various
items and purposes for which the funds will be used. �The hearing shall be held
at a time and place accessible to the public.� The board of trustees shall
cause notice of the public hearing and the statement annexed to the budget to
be:

���� (1)�� published in the county
or counties where the charter school is to be located on three occasions; and

���� (2)�� sent to the board of
education of each school district of residence of the students enrolled in the
charter school not less than four days prior to the date fixed for the public
hearing.

���� 13.� (New section)� An
individual appointed to a board of trustees of a charter school following the
effective date of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill), other than a student representative appointed pursuant to
section 2 of P.L.2021, c.446 (C.18A:36A-11.2), shall possess legal, fiscal,
educational, community, or board leadership or governance experience.

���� 14.� (New section)� A member
of the board of trustees of a charter school shall maintain the member�s
principal residence in the charter school�s district of residence.� A person
who holds membership on a board of trustees of a charter school on the
effective date of P.L.��� , c.���� (C.������� ) (pending before the Legislature
as this bill), but does not maintain principal residence in the charter
school�s district of residence on that effective date, shall not be subject to
the residency requirements of this section while the person continues to hold
membership on the board without a break in service of greater than seven days.

���� 15.� (New section)� a.�
Appointment as a member of a board of trustees of a charter school following
the effective date of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill) shall be subject to the approval of the Commissioner
of Education.

���� b.��� A member of a charter
school board of trustees appointed following the effective date of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) may serve in
an acting capacity while awaiting approval pursuant to subsection a. of this section.

���� 16.� (New section) �a. As
required by the provisions of the �Senator Byron M. Baer Open Public Meetings
Act,� P.L.1975, c.231 (C.10:4-6 et seq.), the board of trustees of a charter
school shall post a copy of all meeting notices, including a calendar of all
meeting dates, and the minutes of each meeting on the charter school�s website.

���� b. �The board shall hold all
meetings in a physical building in the school district in which the charter
school is located except that a meeting may be held by means of communications
or other electronic equipment during a period declared pursuant to the laws of
this State as a state of emergency, public health emergency, or state of local
disaster emergency.

���� 17.� (New section) �a.� As
used in this section:

���� �Non-disclosure agreement�
means an agreement between the board of trustees of a charter school and an
employee of the charter school arising out of an existing or anticipated
employment relationship, or an agreement between the board and an employee with
respect to severance pay, under which the employee or expected employee agrees
not to disclose information that may be exchanged or acquired during the course
of employment at the charter school.� A non-disclosure agreement may include a
confidentiality clause or any other language limiting the ability of an
employee to discuss their employment with the charter school.

���� �Restrictive covenant� means
an agreement between the board of trustees of a charter school and an employee
of the charter school arising out of an existing or anticipated employment
relationship, or an agreement between the board and an employee with respect to
severance pay, under which the employee or expected employee agrees not to
engage in certain specified activities competitive with the charter school
after the employment relationship has ended.

���� b.��� The board of trustees of
a charter school, or any employee acting on behalf of the board, shall not
require or request that an employee enter into a non-disclosure agreement or
restrictive covenant as a condition of employment or with respect to severance
pay as provided in an employment contract.

���� c.���� Nothing in this section
shall be construed to prohibit a board of trustees from entering into a
non-disparagement agreement with an employee.

���� 18.� (New section)� a.� A
board of trustees of a charter school shall submit a compensation study to the
commissioner:

���� (1)�� in any school year
during which a charter school enters into, renews, or substantially modifies a
contract with the lead person of the charter school, as part of the charter
school�s annual report required pursuant to subsection b. of section 16 of
P.L.1995, c.426 (C.18A:36A-16); and

���� (2)�� at any other time the
commissioner deems necessary.

���� b.��� A board of trustees of a
charter school may utilize a compensation study completed in any of the
immediately preceding three school years to comply with the provisions of this
section.

���� 19.� (New section)� A board of
trustees of a charter school shall not renegotiate, extend, amend, or otherwise
alter the terms of a contract with a lead person or school business
administrator, unless notice is provided to the public at least 30 days prior
to the scheduled action by the board.� The board shall also hold a public
hearing and shall not take any action on the matter until the hearing has been
held.� The board shall provide the public with at least 10 days� notice of the
public hearing.

���� 20.� (New
section)
�A board of trustees of a charter school shall not renegotiate,
extend, amend, or otherwise alter the terms of a contract with a charter
management organization unless notice is provided to the public at least 30
days prior to the scheduled action by the board.� The board shall also hold a
public hearing and shall not take any action on the matter until the hearing
has been held.� The board shall provide the public with at least 10 days�
notice of the public hearing.

���� 21.� (New section)� a.�
A charter management organization that receives payment for
operating or managing a charter school, the source of which is State or local
funds, shall:

���� (1)�� comply
with the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as
the open public records act, in its operation or management of the charter
school; and

���� (2)�� annually
file with the Department of Education the most recent public inspection copy of
its Internal Revenue Service Form 990 and all schedules and supporting
documentation required to be submitted to the Internal Revenue Service in
conjunction with Form 990, and post the Form 990 at an easily accessible
location on its Internet website.� The Form 990, as well as the schedules and
supporting documentation required to be submitted to the Internal Revenue
Service in conjunction with the form, shall only be made available for public
inspection by the Department of Education in accordance with applicable federal
law.

���� b.� A
charter management organization found to be in violation of this section by the
commissioner shall have 90 days from the date of the determination to come into
compliance with the provisions of this section.� If, after 90 days, the charter
management organization continues to be in violation, the charter management
organization shall be ineligible to provide any services to a charter school in
the State.

���� 22.� (New section)� Any
executive of a charter management organization including, but not limited to,
the chief executive officer, chief operating officer, chief financial officer,
executive director, president, and general counsel, that receives payment for
operation or management services from a charter school,

the source of which is State or local funds,
shall be required to comply
with the provisions of sections 5 and 6 of P.L.1991, c.393 (C.18A:12-25 and
C.18A:12-26).

���� 23.� (New section)�
a.� As used in this section:

���� �Administrator� means any
officer or employee of a school district, charter
school, or renaissance school project who:
(1)
holds a position
that requires a certificate authorizing the holder to serve as a school
administrator, principal, or school business administrator; (2) holds a
position that requires a certificate authorizing the holder to serve as
supervisor who is responsible for making recommendations regarding hiring or
purchasing or acquiring any property or services of a school district, charter
school, or renaissance school project; or (3) holds a position that does not
require the person to hold any type of certificate, but is responsible for
making recommendations regarding hiring or purchasing or acquiring any property
or services by a school district, charter school, or renaissance school
project.� �Administrator� includes a chief school administrator and a lead
person of a charter school, but does not include a member of a board of
education or board of trustees of a charter school or renaissance school
project.

���� �Immediate
family member� means the person�s spouse, partner in a civil union as defined
in section 92 of P.L.2006, c.103 (C.37:1-33), domestic partner as defined in
section 3 of P.L.2003, c.246 (C.26:8A-3), or dependent child, residing in the
same household.

���� b.��� Notwithstanding any
other law, rule, or regulation to the contrary, as a condition of receiving
State aid, a nepotism policy adopted by the board of education of a school
district or the board of trustees of a charter school or renaissance school
project shall include, in addition to any other requirements adopted by the
State Board of Education, provisions prohibiting:

���� (1)�� any immediate family
member of an administrator, board of education member, or board of trustees
member of a charter school or renaissance school project from being employed in
a leadership or governance position in the school district, charter school and
any school facility operated by the charter school, or renaissance school
project, during the tenure of the administrator, board of education member, or
board of trustees member; and

���� (2)�� any immediate family
member of
the officers and members of the management
team, board, or other governing body of a charter management organization

from being employed in a leadership or governance position in any charter
school that contracts with the charter management organization for operation or
management services.

���� 24.� Section 13 of P.L.1991,
c.393 (C.18A:12-33) is amended to read as follows:

���� 13. a. Each newly elected or
appointed board member shall complete during the first year of the member's
first term a training program to be prepared and offered by the New Jersey
School Boards Association, in consultation with the New Jersey Association of
School Administrators, the New Jersey Principals and Supervisors Association,
and the Department of Education, regarding the skills and knowledge necessary
to serve as a local school board member.� The training program shall include
information regarding the school district monitoring system established
pursuant to P.L.2005, c.235, the New Jersey Quality Single Accountability
Continuum, and the five key components of school district effectiveness on
which school districts are evaluated under the monitoring system: instruction
and program; personnel; fiscal management; operations; and governance.

���� The board member shall
complete a training program on school district governance in each of the
subsequent two years of the board member's first term.

���� b.��� Within one year after
each re-election or re-appointment to the board of education, the board member
shall complete an advanced training program to be prepared and offered by the
New Jersey School Boards Association.� This advanced training program shall
include information on relevant changes to New Jersey school law and other
information deemed appropriate to enable the board member to serve more
effectively.

���� c.���� The New Jersey School
Boards Association shall examine options for providing training programs to
school board members through alternative methods such as on-line or other
distance learning media or through regional-based training.

���� d.��� Within one year after
being newly elected or appointed or being re-elected or re-appointed to the
board of education, a board member shall complete a training program on
harassment, intimidation, and bullying in schools, including a school
district's responsibilities under P.L.2002, c.83 (C.18A:37-13 et seq.).� A
board member shall be required to complete the program only once.

���� e.���� Training on harassment,
intimidation, and bullying in schools shall be provided by the New Jersey
School Boards Association, in consultation with recognized experts in school
bullying from a cross section of academia, child advocacy organizations, nonprofit
organizations, professional associations, and government agencies.

����
f.���� The training
provided by the New Jersey School Boards Association to a member of a board of
trustees of a charter school pursuant to this section shall:

����
(1)�� be prepared in
consultation with the New Jersey Public Charter Schools Association;

����
(2)�� include information
on best practices for charter school governance and oversight, school leader
evaluations, and charter school compensation for leadership;

����
(3) include guidelines for
conducting a compensation study prepared pursuant to section 18 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill); and

����
(4)�� be approved by the
Department of Education and New Jersey Public Charter Schools Association.

(cf: P.L.2010, c.122, s.6)

���� 25.� Sections 4, 5, 7, 14, 15,
17, and 23 shall take effect immediately; sections 10, 11, 12, 16, 21, 22, and
24 shall take effect six months from the date of enactment; and sections 1, 2,
3, 6, 8, 9, 13, 18, 19, and 20 shall take effect when the Commissioner of
Education next reviews applications to establish or renew charter schools, but
no later than three years from the date of enactment; except that the
Commissioner of Education may take any anticipatory administrative action, in
advance of the effective dates, as may be necessary to implement the provisions
of this act.

STATEMENT

���� This bill modifies certain
parts of the �Charter School Program Act of 1995� and other sections of New
Jersey law to establish various new requirements for charter schools, charter
school boards of trustees, and charter school management organizations.

Public
Notice and Hearing of Charter School Applications and Renewals

���� The bill requires three public
notices of an application to establish or renew a charter school, as
applicable, to be published in a newspaper having a substantial circulation in
the county or counties where the charter school is to be located and in
accordance with current law�s requirements for issuing or publishing a public
notice. �Each public notice is to include instructions for the public to submit
comments on the application to the Commissioner of Education within 30 days of
the date of the first notice.�

���� The bill requires the
Department of Education to post notice of the filing on the department�s
Internet website where it is to remain until the commissioner makes a final
determination on the application.

Charter
School Applications and Consolidation

���� The bill directs the
Commissioner of Education to develop an application for the establishment of a
charter school.� The application is to include a financial plan for the charter
school that includes the anticipated administrative costs of the charter school
and a demonstration of need and an explanation of how the need is not currently
being met by existing public schools.

���� Under the bill, prior to
approving a charter school application and granting a charter, the commissioner
is required to review: (1) the application material submitted by the proposed
charter school; (2) the proposed charter school�s anticipated financial impact
on the school district in which the charter school is to be located, including
the impact to the bond ratings of the school district; and (3) any other
information the commissioner deems necessary.� The commissioner is to give
equal consideration to this information when determining whether to grant or
deny an application to establish a charter school.

���� The bill permits any two
charter schools within the same public school district or within contiguous
public school districts that demonstrate a need to consolidate to petition the
commissioner to consolidate into one school pursuant to a process that is to be
determined by the commissioner.� Under current law, any two charter schools
within the same public school district that are not operating the same grade
levels may petition the commissioner to amend their charters and consolidate
into one school under certain circumstances.

Physical
Location Requirements for Charter Schools

���� Under the bill, a charter
school is required to be physically located, and provide all instruction, in
the State.� The bill directs the commissioner to deny a charter school
application that proposes to operate a charter school, or provide instruction,
in a physical location outside of the State and to deny a charter school
application that proposes to operate or provide instruction primarily online.

���� The bill clarifies that its
provisions are not to be construed to limit a charter school�s ability to
utilize technological tools as an aide to in-person instruction, or virtual or
remote instruction as permitted under current law or regulation.

Charter
School Reporting

���� Current law requires each
charter school to submit an annual report to the local board of education, the
county superintendent of schools, and the commissioner.� This bill requires the
annual report to be made available on the charter school�s Internet website and
be presented to the public at a regularly scheduled board of trustees meeting.�

���� This bill requires the
commissioner to report on the state of charter schools in New Jersey every five
years based on measures contained in the Performance Framework developed by the
State Board of Education to evaluate the academic, financial, and organizational
performance of charter schools.

���� The bill requires a charter
school to maintain an Internet website that includes certain listed information
in an effort to provide increased public access to the operations and
activities of the charter school.�

���� The bill also requires the
Department of Education to maintain, and include certain listed information on,
a webpage on its Internet website for charter school transparency.

Charter
School Renewals and Revocations

���� Pursuant to current law, a
charter granted by the commissioner is granted for a four-year period and may
be renewed for a five-year period.�

���� The bill permits the
commissioner to review any charter school that has been granted a renewal at
any time during the renewal period.� The commissioner is to provide the charter
school with reasonable notice of the commissioner�s intent to review the school�s
charter.

���� Under the bill, the
commissioner may place a charter school on probationary status to allow the
implementation of a remedial plan if, on two occasions, the school:

���� (1)�� has not fulfilled any
condition imposed by the commissioner in connection with granting the charter;

���� (2)�� violates any provision
of its charter;

���� (3)�� violates any of the
financial operations requirements established for the charter schools by the
State board;

���� (4)�� fails to make reasonable
and appropriate efforts to serve a cross section of the community�s school age
population;

���� (5)�� engages in a practice
and pattern of discrimination in violation of federal or State law; or

���� (6)�� violates any federal or
State law.

���� The bill requires the
commissioner to revoke a school�s charter if the commissioner determines, after
notice and opportunity for a hearing, the charter school has committed or
engaged in any of the six listed criteria while the school is on probationary status.

���� Under the bill, the
commissioner is to consider the most recent compensation study submitted by the
charter school and the charter school�s administrative costs over the past
three years when reviewing an application to renew a charter school and as part
of a charter school�s annual review.

Charter
School Budget Transparency

���� The bill requires the budget
adopted by a charter school for the school year to be posted for public
inspection on the charter school�s Internet website and be made available in
print in a �user-friendly� format using plain language.� Under the bill, the
plain language budget summary is to be submitted to the department and made
publicly available on the department�s website.� Under current law, school
districts are required to post this information.� This bill supplements the
charter school law to generally require charter schools to disclose and post
the same budgetary information as required under current law for school
districts, with certain additional information pertaining to the salary, and in
certain circumstances the contract, of the lead person and the school business
administrator of the charter school

���� Under the bill, a board of
trustees of a charter school is also required to hold a public hearing on the
budget, the amounts of money necessary for the ensuing school year, and the
various items and purposes for which the funds will be used.

Additional
Requirements with Respect to Charter School Boards of Trustees and Board
Membership

���� The bill clarifies that the
provisions of the �Conscientious Employee Protection Act� apply to charter
schools and charter school employees.

���� This bill requires an
individual appointed to a board of trustees of a charter school to possess legal,
fiscal, educational, community, or board leadership or governance experience.� The
bill also makes appointment as a member of a board of trustees of a charter
school subject to approval of the commissioner.

���� The bill requires the board of
trustees of a charter school to submit a compensation study concerning the lead
person of the school to the commissioner at various intervals.� The board of
trustees may utilize a compensation study completed in any of the immediately
preceding three years to comply with this submission requirement.

���� The bill imposes on charter
schools certain public notice requirements in relation to modifications to
certain administrator contracts, which requirements are similar to those under
current law on school districts.� Specifically, the bill prohibits a board of
trustees of a charter school from renegotiating, extending, amending, or
otherwise altering the terms of a contract with a lead person, school business
administrator, or charter management organization unless notice is provided to
the public at least 30 days prior to the scheduled action by the board.� The
bill stipulates that the board is to hold a public hearing and may not take any
action on the matter until the hearing has been held.

���� The bill prohibits a board of
trustees of a charter school, or any employee acting on behalf of the board,
from requiring or requesting an employee enter into a non-disclosure agreement
or restrictive covenant as a condition of employment or with respect to
severance pay as provided in an employment contract; except that this provision
is not to be construed to prohibit a board of trustees from entering into a
non-disparagement agreement with an employee.

���� Under current law, the board
of trustees of a charter school is required to comply with the �Senator Byron
M. Baer Open Public Meetings Act.�� In accordance with these provisions, the
bill requires the board of trustees of a charter school to post a copy of all
meeting notices, including a calendar of all meeting dates, and the minutes of
each meeting on the charter school�s website.� The bill also requires the board
of trustees of a charter school to hold all meetings in a physical building in
the school district of residence of the charter school, with certain limited
exceptions.

���� Under State Board of Education
regulations, the board of education of a school district was required to adopt
an anti-nepotism policy by October 1, 2008.� Regulations also required each
charter school board of trustees to adopt a policy by January 20, 2010.� The
regulations were amended in 2024 to require the adoption of an anti-nepotism
policy by the board of trustees of each renaissance school project.� This bill
requires these nepotism policies to include provisions prohibiting:� (1)� any immediate
family member of an administrator, board of education member, or board of
trustees member of a charter school or renaissance school project from being
employed in a leadership or governance position in the school district, charter
school and any school facility operated by the charter school, or renaissance
school project, during the tenure of the administrator, board of education
member, or board of trustees member; and (2) any immediate family member of
the officers and members of the management team, board, or
other governing body of a charter management organization
from being
employed in a leadership or governance position in any charter school that
contracts with the charter management organization for operation or management
services.

���� The bill requires the training
provided to charter school board of trustees members by the New Jersey School
Boards Association to: (1) be prepared in consultation with the New Jersey
Public Charter Schools Association; (2) include information on best practices
for charter school governance and oversight, school leader evaluations, and
charter school compensation for leadership; (3) include guidelines for
conducting a compensation study; and (4) be approved by the Department of
Education and the New Jersey Public Charter Schools Association.�

���� This bill requires a charter
school board of trustees member to maintain their principal residence in the
charter school district of residence.

Provisions
Related to Charter Management Organizations

���� Under the bill, a charter
management organization is defined as a nonprofit organization that is exempt
from federal taxation pursuant to section 501(c)(3) of the federal Internal
Revenue Code, which operates or manages one or more charter schools linked by
centralized support and operations.

���� The bill prohibits a board of
trustees of a charter school from contracting with a for-profit entity to
provide any operation or management services, but permits contracting with a
charter management organization.

���� Under the bill, an executive
of a charter management organization that receives payment for operation or
management services from a charter school,
the source
of which is State or local funds,
is required to comply with the
provisions of the �School Ethics Act� pertaining to disclosure of certain
employment and financial activities.

���� The bill requires a charter
management organization that receives payment for operating or managing a
charter school,
the source of which is State or local
funds,
to (1) comply with the provisions of State law commonly referred
to as the �Open Public Records Act,� in its operation or management of the
charter school, and (2) annually file with the department the most recent
public inspection copy of its Internal Revenue Service Form 990, and in
accordance with federal law, all schedules and supporting documentation
required to be submitted in conjunction with that form.� Form 990 is a tax form
the Internal Revenue Service requires 501(c)(3) charitable and nonprofit
organizations to submit. Form 990 includes revenue, expenditure, and income
data in addition to information used to assess whether a nonprofit aligns with
federal requirements for tax-exempt status.�