Bill > A2323

Introduced Session

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.

AI Summary

Committee Categories

Luanne Peterpaul (D)*,  Verlina Reynolds-Jackson (D)*,  Sterley Stanley (D)*,  Anthony Verrelli (D), 

Withdrawn Because Approved P.L.2025, c.277. (on 01/13/2026)

Official Document