He said that in exchange for freedom, charter schools would be held more accountable for improving student outcomes.
The Green Party's education spokeswoman, Catherine Delahunty, said the changes were "frightening".
"The bill gives enormous powers to 'sponsors' who may have no educational background but will set the rules and staff pay rates."
While creating a legislative framework for charter schools, the bill also allows principals and teachers to search and confiscate students' cellphones and other electronic devices.
The search and seizure rules will apply to information stored on computers or other forms of electronic device, including cellphones, if a teacher believes they are endangering a person's safety or preventing learning.
The bill prevents physical touch or use of force during a search of a student. It also prohibits random or blanket searches, the use of drug dogs and the collection of bodily samples.
Education Minister Hekia Parata said the bill made provisions concerning search and retention clearer for schools.
Other changes include:
The introduction of a national student number for children aged under 6.
Schools will be able to introduce flexible timetabling, including two schools running two timetables on one site.
Boards of trustees will be required to be answerable for student achievement.
Schools will have to publish annual financial statements.