Makes various changes in the charter school program in regard to student enrollment procedures, charter revocation, and monitoring of charter schools.

S3242

SENATE, No. 3242

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 2, 2026

Sponsored by:

Senator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Makes various changes in the charter school program
in regard to student enrollment procedures, charter revocation, and monitoring
of charter schools.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning charter schools and amending and
supplementing P.L.1995, c.426.

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

���� 1.��� (New section)��� The
Legislature finds and declares that based on experience since the enactment of
the �Charter School Program Act of 1995,� P.L.1995, c.426, which established a
charter school program in New Jersey, it is necessary to establish additional
standards and safeguards to ensure that the charter school program: is operated
in an effective and accountable manner; provides educational programs to
address the special needs of particular students or subgroups of students; and
contributes to the overall improvement of public education for all students
served by charter schools.

���� 2.��� Section 8 of P.L.1995,
c.426 (C.18A:36A-8) is amended to read as follows:

���� 8.��� a.�� Preference for
enrollment in a charter school shall be given to students who reside in the
[
school
district in which the charter school is located
]

charter school district of
residence as approved by the commissioner
. If there are more applications
to enroll in the charter school than there are spaces available, the charter
school shall select students to attend
[
using
a random selection process
]

through a lottery. The name of each student who is enrolled in the charter
school district of residence by December 31 of the year prior to the school
year for which the lottery is being held shall be provided to the charter
school by the district of residence and placed in the lottery.� The lottery
process shall enable the public to verify the placement of the names of all
eligible students in the lottery pool and verify the random nature of the
selection process.� A lottery for enrollment in a charter school kindergarten
shall be held on a subsequent date upon completion of kindergarten enrollment
in the district of residence.�

����
In the event that the
parents or guardians of a student who is selected for admission to the charter
school through the lottery determine not to enroll the student in the charter
school, then the charter school shall fill that enrollment space with a student
from the waiting list maintained pursuant to subsection g. of this section
.

���� A charter school shall not
charge tuition to students
[
who
reside in the district
]
.

���� b.��� A charter school shall
allow any student who was enrolled in the school in the immediately preceding
school year to enroll in the charter school in the appropriate grade unless the
appropriate grade is not offered at the charter school.

���� c.���� A charter school may
give enrollment priority to a sibling of a student enrolled in the charter
school.

���� d.��� If available space
permits, a charter school may enroll non-resident students.� The terms and
condition of the enrollment shall be outlined in the school's charter and
approved by the commissioner.

���� e.���� The admission policy of
the charter school shall, to the maximum extent practicable,
[
seek
]

achieve

the enrollment of
[
a
cross section of the community's school age population including racial and
]

the
student demographics of the charter school district of residence including
race, ethnicity, eligibility for the federal free lunch program, eligibility
for the federal reduced price lunch program, limited English proficient
students, special education services students in respective special education
classifications, and other appropriate
academic factors.

����
f.���� A charter school
shall file with the commissioner and the charter school district of residence a
report on the student enrollment demographics of the charter school no later
than October 15 of each year.� The report shall be in a form prescribed by the
commissioner and shall be posted on the websites of the Department of
Education, the charter school, and the charter school district of residence.

����
g.��� A charter school
shall maintain a waiting list for admission to the school and shall annually
submit the number and demographics of students, consistent with subsection f.
of this section, on the waiting list to the commissioner.� The Department of
Education and the charter school shall post the number on their websites and
shall update the number as appropriate.

����
h.��� The commissioner
shall take appropriate action, including modification of the lottery process
for admission required pursuant to subsection a. of this section, upon a
determination that the charter school has not achieved the enrollment of the
student demographics of the district of residence.

(cf: P.L.1995, c.426, s.8)

���� 3.��� Section 9 of P.L.1995,
c.426 (C.18A:36A-9) is amended to read as follows:

���� 9.��� A student may withdraw
from a charter school at any time.� Except as otherwise provided in section 1
of P.L.2016, c.45 (C.18A:37-2a), a student may be expelled from a charter
school based on criteria determined by the board of trustees, which are consistent
with the provisions of N.J.S.18A:37-2, and approved by the commissioner as part
of the school's charter.� Any expulsion shall be made upon the recommendation
of the charter school principal, in consultation with the student's teachers.�
The
charter school shall provide the student�s parent or guardian with information
on how to transfer the student to the student�s school district of residence
and shall forward all student records to the district of residence.

(cf: P.L.2016, c.45, s.3)

���� 4.��� Section 11 of P.L.1995,
c.426 (C.18A:36A-11) is amended to read as follows:

���� 11.� a.�� A charter school
shall operate in accordance with its charter and the provisions of law and
regulation which govern other public schools; except that, upon the request of
the board of trustees of a charter school, the commissioner may exempt the
school from State regulations concerning public schools, except those
pertaining to assessment, testing, civil rights and student health and safety,
if the board of trustees satisfactorily demonstrates to the commissioner that
the exemption will advance the educational goals and objectives of the school.

����
A charter school shall
comply with all requests for information or data made by the commissioner.

���� b.��� A charter school shall
comply with the provisions of chapter 46 of Title 18A of the New Jersey
Statutes concerning the provision of services to students with disabilities;
except that the fiscal responsibility for any student currently enrolled in or
determined to require a private day or residential school shall remain with the
district of residence.

���� Within 15 days of the signing
of the individualized education plan, a charter school shall provide notice to
the resident district of any individualized education plan which results in a
private day or residential placement.� The resident district may challenge the
placement within 30 days in accordance with the procedures established by law.

���� c.���� A charter school shall
comply with applicable State and federal anti-discrimination statutes.

(cf: P.L.2017, c.131, s.27)

���� 5.��� Section 12 of P.L.1995,
c.426 (C.18A:36A-12) is amended to read as follows:

���� 12.� a.� (Deleted by
amendment, P.L.2007, c.260).

���� b.���
[
The
]
�
(1)������� Except
as otherwise provided pursuant to paragraph (2) of this subsection, the

school district of residence shall pay directly to the charter school for each
student enrolled in the charter school who resides in the district an amount
equal to 90% of the sum of the budget year equalization aid per pupil, the
prebudget year general fund tax levy per pupil inflated by the CPI rate most
recent to the calculation, and the employer payroll tax per pupil that is
transferred to the school district pursuant to subsection d. of section 1 of
P.L.2018, c.68.� In addition, the school district of residence shall pay
directly to the charter school the security categorical aid attributable to the
student and a percentage of the district's special education categorical aid
equal to the percentage of the district's special education students enrolled
in the charter school and, if applicable, 100% of preschool education aid.� The
district of residence shall also pay directly to the charter school any federal
funds attributable to the student.

����
(2)�� In the event that the
general fund tax levy for a proposed budget of a school district of residence
with a board of school estimate, other than a Type II district with a board of
school estimate, is rejected by the board of school estimate, and the board of
school estimate reduces the amount of the general fund tax levy, the per pupil
general fund tax levy amount calculated pursuant to paragraph (1) of this
subsection shall be reduced in proportion to the reduction made by the board of
school estimate to the general fund tax levy.

���� c.���� (Deleted by amendment,
P.L.2007, c.260).

���� d.��� Notwithstanding the
provisions of subsection b. of this section, in the case of a student who was
not included in the district's projected resident enrollment for the school
year, the State shall pay 100% of the amount required pursuant to subsection b.
of this section for the first year of the student's enrollment in the charter
school.

���� e.���� The State shall make
payments required pursuant to subsection d. of this section directly to the
charter school.

(cf: P.L.2018, c.68, s.2)

���� 6.��� Section 13 of P.L.1995,
c.426 (C.18A:36A-13) is amended to read as follows:

���� 13.� The students who reside
in the
[
school
district in which the charter school is located
]

charter school district of
residence
shall be provided transportation to the charter school on the
same terms and conditions as transportation is provided to students attending
the schools of the district.� Non-resident students shall receive
transportation services pursuant to regulations established by the State board.

����
At the discretion of the
board of trustees of a charter school, the charter school may provide courtesy
busing services at its own expense to students enrolled in the charter school.

(cf: P.L.1995, c.426, s.13)

���� 7.��� 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 annual assessment shall be in writing and shall be posted on the
department�s website no later than October 15.� The assessment shall include,
but not be limited to, the number of students who enrolled in and withdrew from
the charter school during the year, and the student demographics of the charter
school including the number of federal free lunch, federal reduced lunch, and
limited English proficient students.

����
The commissioner
shall
conduct a comprehensive review prior to granting a renewal of the charter.�
The
findings of the review shall be submitted in writing to the charter school no
later than six months prior to the commissioner�s decision on the renewal of
the charter.

���� 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
, as well as regulations concerning
student discipline, special education, and bilingual education in the event
that the charter school is not exempt pursuant to the provisions of subsection
a. of section 11 of P.L.1995, c.426 (C.18A:36A-11)
.

���� 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 to the parent or guardian of a student
enrolled in the charter school.

����
In addition to the
information required by the commissioner to be included in the annual report,
the annual report shall include information on the number of students who left
the charter school during the preceding school year by withdrawal, expulsion, other
disciplinary action, or any other circumstance.� The report shall include the
student�s last date of attendance, the reason for leaving the charter school,
and the student�s educational placement after leaving the charter school.� A
charter school shall make arrangements prior to a student leaving the charter
school to ensure that the student will have an appropriate alternative
educational placement upon leaving the charter school.

���� 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
]

student
learning
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.

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

���� 8.��� 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 shall be
granted for a four-year period and may be renewed for a five-year period.� The
commissioner may revoke a school�s charter if the school
:

����
(1)
�� 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
]
;

����
(2)�� fails to achieve the
student learning standards or fails to meet any performance standard set forth
in the school�s charter;

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

����
(4)�� violates any
provision of its charter, including provisions concerning fiscal
responsibility; or

����
(5)�� fails to make
reasonable and appropriate efforts to achieve a student enrollment comparable
to the demographic makeup of the charter school district of residence
.

����
b.
��� 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.� The commissioner shall develop procedures and guidelines for
the revocation and renewal of a school's charter
which shall be in
accordance with the provisions of subsection a. of this section
.

����
c.���� Upon the revocation
of its charter, the charter school shall provide the following information to
the commissioner and to the parents or guardians of the charter school�s
students:

����
(1)�� the effective date of
the closure;

����
(2)�� the name and contact
information of the person to whom reasonable inquiries may be made regarding
the closure; and

����
(3)�� the district of
residence for the student.

���� �
d.�� Upon the revocation
of its charter, the charter school shall also provide the parents or guardians
with information on how to transfer the student to the student�s school
district of residence.� The charter school shall forward all student records to
a student�s school district of residence.

����
e.���� A charter school
shall cause an independent final audit of the school�s accounts and financial
transactions to be made by a public school accountant within six months
following the closure of the school. The audit shall include, but not be
limited to:

����
(1)�� an accounting of all
financial assets, including accounts receivable, and an inventory of property,
equipment, and other items of material value;

����
(2)�� an accounting of the
liabilities, including accounts payable; and

����
(3)�� an assessment of the
disposition of any restricted funds received by or due to the charter school.

����
f.���� A charter school
shall dispose of any net assets remaining after all liabilities of the charter
school have been paid or otherwise addressed including, but not limited to, the
following:

����
(1)�� the return of any
grant funds and restricted categorical funds to their source in accordance with
the terms of the grant or State and federal law, as appropriate, which may
include submission of final expenditure reports for entitlement grants and the
filing of any required final expenditure reports and final performance reports;
and

����
(2)�� the return of any
donated materials and property in accordance with any conditions established
when the donation of the materials or property was accepted.

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

���� 9.��� (New section)��� In
order to enroll in a charter school, the student must first be registered in
the school district in which the student resides.� For any student who applies
for enrollment in a charter school, the board of education of the school
district in which the charter school applicant resides shall process the
registration of the student for the subsequent school year upon submission of
the registration forms.� The board of education shall process the registration
in a timely manner, including the assessment of residency and the subsequent
transfer to the charter school, and shall identify the specific categorical aid
for which the student qualifies.

���� 10.� (New section)�� A charter
school shall annually submit its budget for the upcoming school year to the
commissioner for approval.� The budget shall be submitted in such format, and
by such date, as determined by the commissioner and shall include information
on revenues received from private or philanthropic sources, expenses supported
by those revenues, and any in-kind contributions received by the charter
school.� The commissioner shall post the charter school�s approved budget on
the department�s website.

���� 11.� (New section)�� A board
of education and a charter school may enter into a written agreement to conduct
collaborative education programs or implement shared services if the
arrangement will serve to improve any of the following for all students in the
charter school and the district of residence:

���� a.���� teacher quality;

���� b.��� professional development
opportunities for teachers and principals;

���� c.���� school leadership;

���� d.��� programs and services
for students with limited English proficiency and students with disabilities;

���� e.���� drop-out rates and
achievement gaps among students; and

���� f.���� data collection and
program evaluation.

���� 12.� (New section)�� A charter
school shall be subject to review and evaluation under the New Jersey Quality
Single Accountability Continuum in the five key components of effectiveness
established pursuant to section 10 of P.L.1975, c.212 (C.18A:7A-10).� The
commissioner shall determine a charter school�s capacity and effectiveness
using quality performance indicators comprised of standards for each of the
five key components.� Based on a charter school�s compliance with the quality
performance indicators, the commissioner shall assess the charter school�s
capacity and effectiveness and place the charter school on a performance
continuum that will determine the type and level of oversight and technical
assistance and support the charter school receives.

���� 13.� (New section)�� a.�� By
April 1, 2027 and by April 1 every three years thereafter, 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.

���� b.��� The commissioner, no
later than December 31, 2026, 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.�
The study shall be completed by October 1, 2027.

���� c.���� The commissioner shall
submit to the Governor, the Legislature, and the State Board of Education by
October 1, 2027 and by October 1 every three years thereafter an evaluation of
the charter school program based upon the public input required pursuant to
subsection a. of this section and any independent study that may be required
pursuant to subsection b. 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 funding on the ability of resident
districts to provide all students with a thorough and efficient education as
measured by the student learning standards, and to promote competitive and
comprehensive educational offerings;

���� (4)�� the impact of the shift
of pupils from nonpublic schools to charter schools, including the impact on
the demographic makeup of the enrollment in the charter school district of
residence;

���� (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 student learning 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 b. 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.

���� 14.� This act shall take
effect immediately.

STATEMENT

���� This bill implements certain
measures to improve the oversight and accountability of charter schools.� The
bill does the following:

���� (1)�� provides that the random
selection process that will be used to select students for enrollment in a
charter school when there are more applications for enrollment than there are
spaces available will be a lottery.� The name of each student who is enrolled
in the charter school district of residence by December 31 of the year prior to
the year for which the lottery is being held will be provided to the charter
school by the charter school district of residence and placed in the lottery.
If the parents or guardians of a student who is selected through the lottery
decide not enroll the student, then the charter school will fill that
enrollment space with a student from the waiting list;

���� (2)�� requires a charter
school to file with the Commissioner of Education and its district of residence
a report on the student enrollment demographics of the charter school by
October 15 of each year.� The report is to be posted on the websites of the
Department of Education, the charter school, and the charter school district of
residence;

���� (3)�� requires a charter
school to maintain a waiting list for admission to the school and to annually
submit the number and demographics of students on the waiting list to the
commissioner.� The department and the charter school will post the number and
student demographics on their websites and update the number as appropriate;

���� (4)�� requires the adjustment
of the per pupil tax levy amount that a district of residence with a board of
school estimate, other than a Type II district with a board of school estimate,
must send to a charter school if the district�s budget is disapproved by the
board of school estimate and the district�s tax levy is reduced.� The per pupil
adjustment will reflect the reduced tax levy;

���� (5)�� requires that a charter
school�s annual report required under current law include information on the
students who have left the charter school during the preceding school year
through withdrawal, expulsion, other disciplinary action, or any other circumstance,
and a student�s last date of attendance, reason for leaving the charter school,
and educational placement after leaving the school.� A charter school will be
required to make arrangements prior to a student leaving the charter school to
ensure that the student has an appropriate educational placement upon leaving
the charter school;

���� (6)�� requires that the
commissioner�s annual assessment of a charter school required under current law
be in writing and posted on the department�s website no later than October 15;

���� (7)�� requires that the
findings of the commissioner�s comprehensive review of a charter school
required under current law prior to granting a renewal of the charter be
provided in writing to the charter school no later than six months prior to the
commissioner�s decision on the renewal of the charter;

���� (8)�� establishes the
following additional grounds for which the commissioner may revoke a school�s
charter:

���� - the charter school
fails to achieve the student learning standards or fails to meet any
performance standard set forth in the school�s charter;

���� - the charter school
engages in a practice and pattern of discrimination in violation of federal or
State law or violates any federal or State law;

���� - the charter school
violates any provision of its charter concerning fiscal responsibility; or

���� - the charter school fails to
make reasonable and appropriate efforts to achieve a student enrollment
comparable to the demographic makeup of the charter school district of
residence;

���� (9)�� requires the
commissioner to post a charter school�s approved budget on the department�s
website;

���� (10)� permits a board of
education and a charter school to enter into a written agreement to conduct
collaborative education programs or implement shared services if the
arrangement will lead to improvement for all students in areas such as teacher
quality and student achievement;

���� (11)� requires that a charter
school, upon the revocation of its charter, provide the commissioner and the
parents or guardians of its students with information on how to transfer the
student to the student�s school district of residence, and to forward all student
records to that district;

���� (12)� provides that a charter
school must cause an independent final audit to be conducted of the school�s
accounts and financial transactions within six months following the closure of
the school;

���� (13)� requires charter schools
to be subject to review and evaluation under the New Jersey Quality Single
Accountability Continuum (NJ QSAC);

���� (14)� provides that by April
1, 2027 and every three years thereafter, the commissioner will hold public
hearing to receive public input on the charter school program;

���� (15)� directs the commissioner
to commission, no later than December 31, 2026, an independent study of the
charter school program;

���� (16)� directs the commissioner
to submit to the Governor, the Legislature, and the State board by October 1,
2027 and by October 1 every three years thereafter an evaluation of the charter
school program.