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Schools are required to allow students to be released for religious programs. This does not mean schools do not have the ability to create policies that protect the school's instruction time.
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SECTION 3210
Amount and character of required attendance
Education (EDN) CHAPTER 16, TITLE 4, ARTICLE 65, PART 1

b. (i) Absence for religious observance and education shall be permitted under rules that the commissioner shall establish.

STATE COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK
TITLE 8. EDUCATION DEPARTMENT
CHAPTER II. REGULATIONS OF THE COMMISSIONER
SUBCHAPTER E. ELEMENTARY AND SECONDARY EDUCATION
PART 109. HOLIDAY AND RELIGIOUS OBSERVANCE
8 CRR-NY 109.2

109.2 Absence from school for religious observance and education.

(a) Absence of a pupil from school during school hours for religious observance and education to be had outside the school building and grounds will be excused upon the request in writing signed by the parent or guardian of the pupil.

(b) The courses in religious observance and education must be maintained and operated by or under the control of duly constituted religious bodies.

(c) Pupils must be registered for the courses and a copy of the registration filed with the local public school authorities.

(d) Reports of attendance of pupils upon such courses shall be filed with the principal at the end of each semester.

(e) Such absence for a released time program, grades K-12, shall be for not more than one hour each week at the close of either the morning or afternoon session, or both, at a time to be fixed by the local school authorities; provided that the time designated for each separate unit, the primary grades (K-3), intermediate grades (4-6), junior high school grades (7-9), and senior high school grades (10-12), shall be the same for all pupils in that unit in each separate school. Notwithstanding the foregoing, a board of education, in its discretion, may permit pupils in the various units which are departmentalized to be released for not more than one hour a week in groups that may include less than whole units at such times and upon such conditions as such board of education may deem proper; in no event may any pupil be released for more than one hour a week. In the event that more than one school for religious observance and education is maintained in any district, the hours for absence in each particular public elementary or secondary school unit in such district shall be the same for all such religious schools.

(f) A board of education may establish an optional program for high school students in grades 9-12 to permit a student with written approval of parent or guardian to enroll in a course in religion in a registered nonpublic high school. Enrollment in a course of this nature shall be subject to the prior approval by the public high school principal with respect to course schedule, pupil attendance and reporting of pupil achievement. Absence to attend such a course may be excused for the number of periods per week that the course is scheduled in the nonpublic school, provided that the excused absences are at the beginning or close of a public school session and are mutually agreed upon by the school officials.

All school districts, regardless of whether they are required by law to allow released time, should implement good policy and be prepared for when a released time program may approach the district. The time to set the policy is before an active program is pressuring the district. Research polices the district can implement to protect teachers' and students' instruction time. Set polices that limit disruptions to students and the ability for proselytization to occur, impacting other students of faith or no faith. A more detailed write-up on school board policies can be read here.