New JerseyA5936220th Legislature (2024-2025)HouseWALLET

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

Sponsored By: Vin Gopal (Democratic), Linda R. Greenstein (Democratic), Luanne M. Peterpaul Esq. (Democratic), Verlina Reynolds-Jackson (Democratic), Sterley S. Stanley (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 4 benefits, 1 costs, 7 mixed.

School conversions require teacher and parent support

A public school can convert to a charter only with supporting petitions from at least 51% of its teaching staff. At least 51% of enrolled students’ parents or guardians must also sign. Employees of a school converted through this process remain in the bargaining unit defined by the applicable agreement. The same majority representative organization represents them.

Charter teachers get salary floors and caps

Charter schools cannot pay teachers less than the statutory minimum teacher salary. Pay also cannot exceed the highest step in the local district’s current union contract salary guide. The dollar effect depends on those limits and the teacher’s pay.

Charter workers get revised job protections

Charter employees receive streamlined tenure under state education guidelines, not tenure under the specified public-school tenure laws. Each charter must spell out employee protections that follow those guidelines. Schools must adopt the local district union agreement’s health and safety rules, but other terms are optional. Beginning January 16, 2026, boards and staff acting for them cannot request or require nondisclosure agreements or restrictive covenants. This ban covers job conditions and contract severance pay; agreements against disparaging remarks remain allowed.

Charter budgets get public hearings

Beginning January 16, 2027, charters must provide plain-language adopted budgets online and in print. State-posted summaries must provide downloadable comparisons for the budget year and prior year. Required data includes budgets, revenue, surplus, shared services, and leadership pay. Boards must hold accessible public hearings and publish the notice and budget statement three times in the school’s county or counties. They must notify each district of residence at least four days before the hearing. The Commissioner must develop the summary form using available funding.

Charter leadership contracts get public scrutiny

These requirements start with new and renewal applications submitted in the 2027–2028 school year. Boards must submit a pay study with their annual report when signing, renewing, or substantially changing the school leader’s contract. The Commissioner can require studies at other times; studies from any of the prior three school years are allowed. Before changing leader, business administrator, or management group contracts, boards must give 30 days’ public notice and hold a hearing. Hearing notice must be at least 10 days; management contract notices must also go to the Department of Education. Renewal and annual reviews must consider the latest pay study and the past three years’ administrative costs.

Families gain online charter school records

Beginning July 16, 2026, charter homepages must show budgets, meeting notices, annual reports, trustees, facility locations, and other legally required information. Boards must also post meeting calendars and minutes. Meetings must take place in a district building; electronic meetings are allowed only during qualifying declared emergencies. Beginning January 16, 2027, the state must maintain an updated charter transparency webpage. It includes management groups and signed contracts, budget summaries, annual reports, applications, probation lists, corrective plans, and public comment notices. Postings must follow federal law, and the management group list must say inclusion is not a state endorsement.

New mainly online charters are barred

The Commissioner must deny applications submitted after P.L.2025, c.277 took effect for charter schools operating or teaching mainly online. Schools can still use technology to support in-person classes. The restriction also preserves remote instruction otherwise allowed by law or regulation.

Charter boards face stronger membership rules

Beginning January 16, 2026, at least 33% of trustees must live or primarily work in the school’s district or region. At least one trustee must live there, and all trustees must live in New Jersey. Existing trustees who fall short can keep serving only without a break longer than seven days. Covered appointments starting with 2027–2028 applications require legal, financial, educational, community, or board leadership or governance experience; student representatives are exempt. Beginning July 16, 2026, trustee training must cover charter oversight, school leader reviews, leadership pay, and pay studies. The New Jersey School Boards Association must prepare that training with charter community members and stakeholders.

Charters face limits on for-profit management

Charter boards cannot hire for-profit entities to run or manage their schools, but can hire nonprofit charter management groups. A for-profit education management group is exempt if it held a New Jersey charter management contract when P.L.2025, c.277 took effect. Beginning July 16, 2026, management groups paid with state or local funds must follow ownership disclosure requirements.

Charters face stronger checks and penalties

County education superintendents gain ongoing access to charter records and buildings to check compliance, civil rights, testing, and student safety. Probation rules start with new and renewal applications submitted in the 2027–2028 school year. Grounds include charter or financial violations, inadequate efforts to serve a cross section of district children, unlawful discrimination patterns, and legal violations. Specified violations on two occasions in one school year can trigger probation and a corrective plan. Schools must notify every employee and enrolled student’s parent or guardian when informed of probation. The Commissioner must first allow fixes for administrative or technical problems, but can revoke a charter if its corrective plan fails.

Communities gain input on charter applications

Public notices must explain how to comment on applications to establish charter schools. Comments are due within 30 days of the first notice. Applicants must explain an unmet school need; unaudited waitlist data cannot prove it. Starting with 2027–2028 applications, the Commissioner gives equal weight to application materials, expected district financial effects, and other needed information. That review rule covers applications for schools established after the law’s effective date.

Strong charters qualify for longer renewals

Starting with 2027–2028 applications, high-performing charters can receive 10-year renewals under the Commissioner’s performance framework. They must have no probation during the previous five years. The Commissioner can shorten the renewal to five years if probation occurs during its first five years.

Sponsors & Cosponsors

Cosponsors

Joe Danielsen
Democratic • House
Patrick J. Diegnan Jr.
Democratic • Senate
Margie Donlon M.D.
Democratic • House
Angela V. McKnight
Democratic • Senate
Gabriel Rodriguez
Democratic • House
Shirley K. Turner
Democratic • Senate
Anthony S. Verrelli
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 109 • No: 3

House vote • 1/12/2026

3RDG FINAL PASSAGE

Yes: 72 • No: 3 • Other: 1

Senate vote • 1/12/2026